Document:

Securities Purchase Agreement

 Exhibit 4.3 
 EXECUTION COPY 
 LANGUAGE LINE HOLDINGS, LLC 

 SECURITIES PURCHASE AGREEMENT 
 for the purchase of 
 SERIES A PREFERRED UNITS 
 and 
 CLASS D COMMON UNITS 
 Dated as of June 11, 2004 

 TABLE OF CONTENTS 
  

							
	 1.
	  	AUTHORIZATION OF ISSUE OF SECURITIES	  	1
			
	 2.
	  	PURCHASE AND SALE OF SECURITIES	  	1
			
	 3.
	  	CONDITIONS TO CLOSING	  	2
				
		  	3A.	  	 Documents
	  	2
				
		  	3B.	  	 Opinion of Company’s Counsel
	  	3
				
		  	3C.	  	 Representations and Warranties; No Default
	  	3
				
		  	3D.	  	 Merger
	  	3
				
		  	3E.	  	 Equity Financing
	  	3
				
		  	3F.	  	 Senior Credit Agreement
	  	4
				
		  	3G.	  	 Subordinated Notes
	  	4
				
		  	3H.	  	 Capitalization
	  	4
				
		  	3I.	  	 Indebtedness
	  	5
				
		  	3J.	  	 Material Adverse Effect
	  	5
				
		  	3K.	  	 Purchase Permitted By Applicable Laws; Approvals
	  	5
				
		  	3L.	  	 Fees and Expenses
	  	5
				
		  	3M.	  	 Proceedings
	  	5
				
		  	3N.	  	 Sale of Securities to Other Purchasers
	  	5
				
		  	3O.	  	 Solvency
	  	5
				
		  	3P.	  	 Financial Statements; Etc
	  	5
				
		  	3Q.	  	 Ratio of Debt to EBITDA and Pro Forma EBITDA
	  	6
			
	 4.
	  	REDEMPTION/PUT RIGHTS	  	6
				
		  	4A.	  	Optional Redemption	  	6
				
		  	4B.	  	Put Right in the Event of a Change in Control	  	7
				
		  	4C.	  	Mandatory Redemption	  	9
				
		  	4D.	  	Common Unit Put Right	  	9
			
	 5.
	  	AFFIRMATIVE COVENANTS	  	9
				
		  	5A.	  	Financial Statements	  	9
				
		  	5B.	  	Certificates; Other Information	  	10
				
		  	5C.	  	Payment of Obligations	  	12
				
		  	5D.	  	Conduct of Business and Maintenance of Existence	  	13
				
		  	5E.	  	Maintenance of Properties	  	13

  

 i 

 Table Of Contents 
  

							
	 	  	 	  	 	  	Page
				
		  	5F.	  	Insurance	  	13
				
		  	5G.	  	Information Required by Rule 144A	  	13
				
		  	5H.	  	Inspection of Property; Books and Records	  	13
				
		  	5I.	  	Compliance with Law	  	14
				
		  	5J.	  	Notices	  	14
				
		  	5K.	  	Environmental Laws	  	15
				
		  	5L.	  	Anti-Terrorism Law	  	16
				
		  	5M.	  	Embargoed Person	  	16
				
		  	5N.	  	Anti-Money Laundering	  	17
				
		  	5O.	  	Payment of Wages	  	17
			
	 6.
	  	NEGATIVE COVENANTS	  	17
				
		  	6A.	  	Limitation on Indebtedness and Issuance of Disqualified Capital Stock	  	17
				
		  	6B.	  	Limitation on Restricted Payments	  	20
				
		  	6C.	  	Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries	  	24
				
		  	6D.	  	Transactions with Affiliates	  	25
				
		  	6E.	  	Merger, Sale of Assets, etc	  	27
				
		  	6F.	  	Limitations on Line of Business and Organizational Structure	  	28
				
		  	6G.	  	Asset Sales	  	28
				
		  	6H.	  	Amendments	  	29
				
		  	6I.	  	Senior Ranking of Preferred Units	  	30
				
		  	6J.	  	Fiscal Year	  	30
			
	 7.
	  	EVENTS OF DEFAULT	  	30
				
		  	7A.	  	Redemption Following Event of Default	  	30
				
		  	7B.	  	Other Remedies	  	32
			
	 8.
	  	REPRESENTATIONS AND WARRANTIES	  	33
				
		  	8A.	  	Financial Statements; Financial Condition	  	33
				
		  	8B.	  	No Change	  	33
				
		  	8C.	  	Existence; Compliance with Law	  	33
				
		  	8D.	  	Power; Authorization	  	34
				
		  	8E.	  	Enforceable Obligations	  	34
				
		  	8F.	  	No Legal Bar	  	34

  

 ii 

 Table Of Contents 
  

							
	 	  	 	  	 	  	Page
				
		  	 8G.
	  	No Material Litigation	  	35
				
		  	 8H.
	  	Investment Company Act	  	35
				
		  	 8I.
	  	Federal Regulation	  	35
				
		  	 8J.
	  	No Default	  	35
				
		  	 8K.
	  	Taxes	  	35
				
		  	 8L.
	  	Subsidiaries	  	36
				
		  	 8M.
	  	Ownership of Property; Liens	  	36
				
		  	 8N.
	  	ERISA	  	36
				
		  	 8O.
	  	Copyrights, Patents, Permits, Trademarks and Licenses	  	37
				
		  	 8P.
	  	Environmental Matters	  	37
				
		  	 8Q.
	  	Accuracy and Completeness of Information	  	39
				
		  	 8R.
	  	Labor Matters	  	39
				
		  	 8S.
	  	Solvency	  	39
				
		  	 8T.
	  	Use of Proceeds	  	39
				
		  	 8U.
	  	Certain Documents	  	39
				
		  	 8V.
	  	Capitalization	  	40
				
		  	 8W.
	  	Indebtedness	  	41
				
		  	 8X.
	  	Anti-Terrorism Laws	  	41
				
		  	 8Y.
	  	Offering of Securities	  	42
				
		  	 8Z.
	  	Other Agreements	  	42
			
	 9.
	  	REPRESENTATIONS OF EACH PURCHASER	  	42
			
	 10.
	  	DEFINITIONS; ACCOUNTING MATTERS	  	42
				
		  	 10A.
	  	Terms	  	42
				
		  	 10B.
	  	Accounting and Legal Principles, Terms and Determinations	  	69
			
	 11.
	  	MISCELLANEOUS	  	69
				
		  	 11A.
	  	Payments	  	69
				
		  	 11B.
	  	Expenses	  	69
				
		  	 11C.
	  	Consent to Amendments	  	70
				
		  	 11D.
	  	Survival of Representations and Warranties; Entire Agreement	  	70
				
		  	 11E.
	  	Successors and Assigns	  	70
				
		  	 11F.
	  	Independence of Covenants	  	71
				
		  	 11G.
	  	Notices	  	71

  

 iii 

 Table Of Contents 
  

							
	 	  	 	  	 	  	Page
				
		  	11H.	  	Satisfaction Requirement	  	72
				
		  	11I.	  	GOVERNING LAW	  	72
				
		  	11J.	  	SUBMISSION TO JURISDICTION	  	72
				
		  	11K.	  	WAIVER OF JURY TRIAL	  	72
				
		  	11L.	  	Severability	  	73
				
		  	11M.	  	Descriptive Headings; Advice of Counsel; Interpretation	  	73
				
		  	11N.	  	Counterparts	  	73
				
		  	11O.	  	Severalty of Obligations	  	73

  

 iv 

 SCHEDULES 
 PURCHASER SCHEDULE 
 SCHEDULE 6E(H) – AFFILIATE TRANSACTIONS 
 SCHEDULE 8G – MATERIAL LITIGATION 
 SCHEDULE 8L - SUBSIDIARIES 
 SCHEDULE 8M – REAL PROPERTY 
 SCHEDULE 8O
– COPYRIGHTS, PATENTS, PERMITS, TRADEMARKS AND LICENSES 
 SCHEDULE 8U(1) – MATERIAL CREDIT DOCUMENTS 
 SCHEDULE 8U(2) – MATERIAL SUBORDINATED NOTE DOCUMENTS 
 SCHEDULE 8U(3) – MATERIAL ACQUISITION DOCUMENTS 
 SCHEDULE 8U(4) – MATERIAL EQUITY DOCUMENTS 
 SCHEDULE 8V – CAPITALIZATION 
 SCHEDULE 8W
– OUTSTANDING INDEBTEDNESS 
 EXHIBITS 
 EXHIBIT A –FORM OF LLC AGREEMENT 
 EXHIBIT B – FORM OF MEMBERS AGREEMENT 
 EXHIBIT C – FORM OF REGISTRATION RIGHTS AGREEMENT 
 EXHIBIT D – FORM OF STANDSTILL AND SUBORDINATION AGREEMENT 
 EXHIBIT E – FORM OF CALL AGREEMENT 
  

 v 

 LANGUAGE LINE HOLDINGS, LLC 
 One Lower Ragsdale Drive 
 Building 2 

Monterey, CA 93940 
                     As of June 11, 2004 
 To Each of the Purchasers Named in the 
 Purchaser
Schedule Attached Hereto 
 Ladies and Gentlemen: 
 The undersigned, Language Line Holdings, LLC, a Delaware limited liability company (herein called the “Company”), hereby agrees with the purchasers named in the Purchaser Schedule (the
“Purchaser Schedule”) attached hereto (herein, collectively, called the “Purchasers”) as set forth below. Reference is made to Paragraph 10 hereof for definitions of capitalized terms used herein and not
otherwise defined herein. 
 1. AUTHORIZATION OF ISSUE OF SECURITIES. The Company has authorized the issue of (A) its Series A
Preferred Units as defined and having the designations, rights and preferences (collectively, “Rights”) set forth in the LLC Agreement (the “Preferred Units”) and (B) its Class D
Common Units as defined and having the Rights set forth in the LLC Agreement (the “Common Units”). The terms Preferred Units and Common Units as used herein shall include each Preferred Unit and Common Unit,
respectively, delivered pursuant to any provision of this Agreement. The Preferred Units and Common Units are sometimes collectively referred to herein as the “Securities.” Each Preferred Unit shall accrue a yield of
15.0% per annum on the sum of (i) the Unreturned Capital Value of such Preferred Unit plus (ii) the Unpaid Yield on such Preferred Unit for all prior quarterly periods (or any portion thereof) ending on any
March 31, June 30, September 30 or December 31 (provided that, during any period when an Event of Default shall be in existence, the rate of accrual for such yield shall be 17% per annum from and after the
date of such Event of Default and until such Event of Default has been cured or waived in accordance with the terms of this Agreement, as provided in the definition of “Yield” set forth in the LLC Agreement). 
 2. PURCHASE AND SALE OF SECURITIES. The Company hereby agrees to sell to each Purchaser and, subject to the terms and conditions herein set
forth, each Purchaser agrees to purchase from the Company the aggregate number of Preferred Units and Common Units set forth opposite such Purchaser’s name in the Purchaser Schedule attached hereto for the aggregate price indicated opposite
such Purchaser’s name for such Preferred Units and Common Units, respectively, in such Purchaser Schedule. The Company will deliver to each Purchaser, at the offices of Kirkland & Ellis LLP at Citigroup Center, 153 East 53rd Street,
New York, New York 10022, evidence of the Securities to be purchased by such Purchaser against payment of the purchase price therefor by transfer of immediately available funds on the date of closing, which

 
shall be the initial date of the closing of the transactions contemplated by the Agreement and Plan of Merger, or any other date before such date upon which the Company and the Purchasers may
mutually agree (herein called the “Closing Date”), to the account or accounts as shall be specified in a letter, in substantially the form of Exhibit A hereto, from the Company to the Purchasers delivered at least two
Business Days prior to the Closing Date. 
 3. CONDITIONS TO CLOSING. Each Purchaser’s obligation to purchase and pay for the
Securities to be purchased by such Purchaser hereunder is subject to the satisfaction or waiver by such Purchaser, on or before the Closing Date, of the following conditions: 
 3A. Documents. Such Purchaser shall have received original counterparts or, if satisfactory to such Purchaser, certified or other
copies of all of the following documents, each duly executed and delivered by the party or parties thereto, in form and substance satisfactory to such Purchaser, dated the Closing Date unless otherwise indicated, and, on the Closing Date, in full
force and effect with no event having occurred and being then continuing that would constitute a default thereunder or constitute or provide the basis for the termination thereof: 
 (1) the Amended and Restated Limited Liability Company Agreement of the Company among each of the holders of membership
interests in the Company, in the form of Exhibit A attached hereto (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof and the terms hereof, the “LLC Agreement”); 

(2) a Members Agreement among the Company, the Purchasers and the other holders of membership interests in the Company, in
the form of Exhibit B attached hereto (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof and the terms hereof, the “Members Agreement”); 
 (3) a Registration Rights Agreement among the Company, the Purchasers and the other holders of membership interests in the
Company, in the form of Exhibit C attached hereto (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof and the terms hereof, the “Registration Rights Agreement”); 

(4) a Standstill and Subordination Agreement among Holdings II, the Purchasers, Merrill, and the purchaser of the
Redeemable Common Equity, in the form of Exhibit D attached hereto and the Call Agreement, in the form of Exhibit E attached hereto; 
 (5) an Officer’s Certificate certifying, among other things (a) as to the name, titles and true signatures of the officers of the Company authorized to sign this Agreement and the other
Transaction Documents to which it is a party, (b) that attached thereto is a true, accurate and complete copy of the certificate of formation of the Company, certified by the Secretary of State of the State of Delaware as of a recent date,
(c) that attached thereto is a true, accurate and complete copy of the LLC Agreement (as in effect at the time of and at all times since the adoption of the resolutions referred to in clause (d) below), (d) that attached thereto is a
true, accurate and complete copy of the

  

 2 

 
resolutions of the Company’s Board of Directors, duly adopted by such Board of Directors, authorizing the execution, delivery and performance of this Agreement and the other Transaction
Documents and (e) that this Agreement and the other Transaction Documents executed and delivered to such Purchaser by the Company are in the form approved by the Company’s Board of Directors in the resolutions referred to in clause
(d) above; 
 (6) a certificate of good standing for the Company from the Secretary of State of the State of
Delaware and the Secretary of State (or other appropriate governmental official(s)) of each state in which the failure of the Company to be qualified to transact business would reasonably be expected to have a Material Adverse Effect, in each case
dated as of a recent date; and 
 (7) such other certificates, documents, agreements and items as such Purchaser
may reasonably request. 
 3B. Opinion of Company’s Counsel. Such Purchaser shall have received from
Kirkland & Ellis LLP, who is acting as special counsel for the Company in connection with the Transactions, a favorable opinion reasonably satisfactory to such Purchaser as to such matters incident to the Transactions as it may reasonably
request. The Company, by its execution hereof, hereby requests and authorizes such special counsel to render such opinion. 
 3C. Representations and Warranties; No Default. The representations and warranties contained in Paragraph 8 shall be true and correct on and as of the Closing Date; there shall exist on the Closing Date, both before and after
giving effect to consummation of the transactions contemplated by the Transaction Documents, no Event of Default or Default; and the Company shall have delivered to such Purchaser an Officers’ Certificate, dated the Closing Date, to both such
effects. 
 3D. Merger. The Agreement and Plan of Merger dated as of April 14, 2004 (the “Agreement and Plan
of Merger”) shall have been duly executed and delivered by the parties thereto and shall be in full force and effect. All conditions precedent to the obligations of Language Line Acquisition, Inc., a Delaware corporation and an indirect
Subsidiary of the Company (“Acquisition Co”), to acquire Language Line Holdings, Inc., a Delaware corporation (“Holdings”), thereunder shall have been satisfied (except to the extent waived by Acquisition Co. with
the prior written consent of such Purchaser), and Acquisition Co. shall have consummated the acquisition of Holdings through the merger of Language Line, Inc., a Delaware corporation and a Subsidiary of Acquisition Co. (“Language
Line”), with and into Holdings in accordance with the terms of the Agreement and Plan of Merger (the “Merger”). Such Purchaser shall have received a copy of the Agreement and Plan of Merger and all other Material
Acquisition Documents, certified in an Officers’ Certificate, dated the Closing Date, as correct and complete. 
 3E.
Equity Financing. The Equity Documents shall have been duly executed and delivered by the parties thereto and shall be in full force and effect. All conditions precedent to the purchase of Capital Stock thereunder shall have been satisfied, and
the Equity Financing shall have been consummated in accordance with the terms and conditions of the Equity

  

 3 

 
Documents. All necessary authorizations, consents, approvals, exceptions or other actions by or notices to or filings with any court or administrative or governmental body or other Person
required in connection with the execution, delivery or performance of the Equity Documents or the consummation of the transactions contemplated thereby shall be final and in full force and effect and shall be in form and substance reasonably
satisfactory to such Purchaser. Such Purchaser shall have received a copy of the Equity Documents to which such Purchaser is a party and each instrument, document filings and agreement delivered in connection therewith and each other Material Equity
Document, certified in an Officers’ Certificate, dated the Closing Date, as correct and complete. 
 3F. Senior Credit
Agreement. The Senior Credit Agreement, providing for a committed $40,000,000 revolving credit facility to Language Line (of which not more than (1) $10,000,000 shall be used to finance any portion of the Merger Consideration (as defined in
the Agreement and Plan of Merger) attributable to an excess of Closing Working Capital (as defined in the Agreement and Plan of Merger) and (2) $5,000,000 shall be used to finance a portion of the Transactions) and for term loans to Language
Line in the aggregate principal amount of $285,000,000 and having other terms and conditions reasonably satisfactory to such Purchaser, shall have been duly executed and delivered by Language Line, Acquisition Co., and the Senior Lenders, and shall
be in full force and effect. All conditions precedent to the making of the term loan and the initial revolving loan under the Senior Credit Agreement shall have been satisfied or waived (with the consent of such Purchaser) and Language Line, shall
have received the proceeds of the term loans and the initial revolving loan thereunder. Such Purchaser shall have received a copy of the Senior Credit Agreement and the Material Credit Documents, certified in an Officers’ Certificate, dated the
Closing Date, as correct and complete. 
 3G. Subordinated Notes. The Subordinated Note Indenture, providing for the
issuance and sale of $165,000,000 aggregate principal amount at maturity of the Subordinated Notes and having other terms and conditions satisfactory to such Purchaser, shall have been duly executed and delivered by Language Line and The Bank of New
York, as trustee, and shall be in full force and effect. The Senior Discount Note Indenture, providing for the issuance and sale of approximately $55,000,000 in gross proceeds of the Senior Discount Notes and having other terms and conditions
satisfactory to such Purchaser, shall have been duly executed and delivered by Holdings and The Bank of New York, as trustee, and shall be in full force and effect. All conditions precedent to the issuance and sale of the (1) Subordinated Notes
under the Subordinated Note Indenture and (2) Senior Discount Notes under the Senior Discount Note Indenture shall, in each case, have been satisfied or waived (with the consent of such Purchaser), and Language Line and Holdings shall have
received the proceeds of the issuance and sale of the Subordinated Notes and the Senior Discount Notes, respectively, thereunder. Such Purchaser shall have received a copy of the Subordinated Note Indenture and the Senior Discount Note Indenture and
the Material Subordinated Note Documents, certified in an Officers’ Certificate, dated the Closing Date, as correct and complete. 
 3H. Capitalization. The capitalization of the Transaction Parties and the terms, conditions and documentation of the governing documents of the Transaction Parties shall be reasonably satisfactory to such Purchaser. 
  

 4 

 3I. Indebtedness. After giving effect to the Transactions, on the Closing Date,
neither the Company nor any of its Subsidiaries shall have any outstanding Indebtedness or Preferred Capital Stock other than (1) the Preferred Units, (2) Indebtedness under the Senior Credit Documents, (3) the Subordinated Notes,
(4) Indebtedness between the Transaction Parties as contemplated by the Equity Financing, (5) the Online Debt, (6) Redeemable Common Equity, (7) the Senior Discount Notes, and (8) Existing Indebtedness set forth on
Schedule 8W. 
 3J. Material Adverse Effect. Since December 31, 2003 there shall have been no change, event
or development (whether or not covered by insurance) which has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 3K. Purchase Permitted By Applicable Laws; Approvals. The purchase of and payment for the Securities to be purchased by such Purchaser on the Closing Date on the terms and conditions herein
provided (including the use of the proceeds from the sale of such Securities by the Company) shall not violate any applicable law or governmental regulation and shall not subject such Purchaser to any tax, penalty, liability or other onerous
condition under or pursuant to any applicable law or governmental regulation, and such Purchaser shall have received such certificates or other evidence as it may request to establish compliance with this condition. All necessary authorizations,
consents, approvals, exceptions or other actions by or notices to or filings with any court or administrative or governmental body or other Person required in connection with the execution, delivery and performance of this Agreement and the other
Transaction Documents or the consummation of the transactions contemplated hereby or thereby shall have been issued or made, shall be final and in full force and effect and shall be in form and substance reasonably satisfactory to such Purchaser.

 3L. Fees and Expenses. Without limiting the provisions of Paragraph 11B hereof, the Company shall have
paid the reasonable fees, charges and disbursements of Schiff Hardin LLP relating to this Agreement and the other Transaction Documents. 
 3M. Proceedings. All proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incident thereto shall be reasonably satisfactory in substance and
form to such Purchaser, and such Purchaser shall have received all such counterpart originals or certified or other copies of such documents as it may request. 
 3N. Sale of Securities to Other Purchasers. The Company shall have sold, or contemporaneously with such sale to such Purchaser will sell, to the other Purchasers the Securities to be purchased by
them at the closing and shall have received payment in full therefor. 
 3O. Solvency. Such Purchaser shall have received
an Officers’ Certificate of the Company, in form and substance satisfactory to such Purchaser, together with such other evidence reasonably requested by such Purchaser, confirming the Solvency of the Company and each of its Subsidiaries on a
consolidated basis after giving effect to the consummation of the Transactions. 
 3P. Financial Statements; Etc. Such
Purchaser shall have received (1) audited consolidated balance sheets of Holdings’ wholly-owned Subsidiary, Language Line, LLC

  

 5 

 
(“LLC”), and LLC’s Subsidiaries as of December 31, 2003, December 31, 2002 and December 31, 2001 and audited consolidated statements of income, comprehensive
income, and member’s (deficiency) capital, and of cash flow for the fiscal years ended December 31, 2003, December 31, 2002, and December 31 2001, and (ii) LLC’s unaudited consolidated balance sheets as of
March 31, 2003 and March 31, 2004 and its audited consolidated statements of income comprehensive income, member’s (deficiency) capital and cash flow for the three-month periods then ended (all such financial statements of the LLC and
any notes thereto are hereinafter collectively referred to as the “Company Financial Statements”), (2) the Pro Forma Balance Sheet, in each case no later than two Business Days before the Closing Date, and such financial
statements shall be in form and scope reasonably satisfactory to such Purchaser (in its sole discretion) and shall not be materially inconsistent (other than changes occurring in the ordinary course of business) with the financial statements or, in
the case of any pro forma financial information, projections previously provided to such Purchaser, (3) a statement as to the sources and uses of cash needed to consummate the Transactions, and (4) a copy of the “Price
Certification-Closing Certificate” (as defined in the Agreement and Plan of Merger) and any material correspondence given or received by the Company or any Subsidiary in connection therewith. 
 3Q. Ratio of Debt to EBITDA and Pro Forma EBITDA. Such Purchaser shall have received satisfactory evidence (including satisfactory
supporting schedules and other data) that (1) the ratio of (i) pro forma “Consolidated Indebtedness” (as defined in the Senior Credit Agreement) to (ii) pro forma “Consolidated EBITDA” (as defined in the Senior
Credit Agreement of the Company and its Subsidiaries calculated in a manner reasonably acceptable to such Purchaser and after giving effect to the Transactions for the four fiscal quarters ended March 31, 2004, was not greater than 6.85:1 and
(2) the pro forma Consolidated EBITDA of the Company and its Subsidiaries calculated in a manner reasonably acceptable to such Purchaser and after giving effect to the Transactions for the 12-month period ended March 31, 2004 was not less
than $72,000,000. 
 4. REDEMPTION/PUT RIGHTS. 
 4A. Optional Redemption. 
 (1) Optional Redemption
in connection with Complete Exit Event. At any time prior to the first anniversary of the Closing Date, the Preferred Units shall be subject to redemption, in whole (but not in part) concurrently with a Complete Exit Event at the option of the
Company at a redemption price per unit equal to the Liquidation Value (as of the date of such redemption) of each such Preferred Unit to be so redeemed plus the applicable Redemption Amount with respect to each such Preferred Unit to be redeemed.

 (2) Optional Redemption on or after the First Anniversary of the Closing Date, but prior to the
Fourth Anniversary of the Closing Date. On or after the first anniversary of the Closing Date, but prior to the fourth anniversary of the Closing Date, the Preferred Units shall be redeemable at the option of the Company, in whole or in part, at
any time or from time to time at a redemption price per unit equal to the Liquidation Value (as of such redemption date) of each such Preferred Unit to be so redeemed plus

  

 6 

 
the applicable Redemption Amount with respect to each such Preferred Unit to be so redeemed. 
 (3) Optional Redemption on or after the Fourth Anniversary of the Closing Date. On or after the fourth anniversary of the Closing Date, the Preferred Units shall be redeemable at the option
of the Company, in whole or in part, at any time or from time to time at a redemption price per unit equal to the Liquidation Value (as of such redemption date) of each such Preferred Unit to be so redeemed. 
 (4) Redemptions Pro Rata. With respect to any redemption pursuant to Paragraph 4A(2) or
(3) of fewer than all of the outstanding Preferred Units, the Preferred Units to be redeemed shall be selected pro rata among the Holders of all of the then outstanding Preferred Units based upon the number of Preferred
Units owned by each such Holder. 
 (5) Redemption Notice. In the event the Company shall elect to
redeem Preferred Units pursuant to the terms of Paragraph 4A(1), (2), or (3) the Company shall give written notice of such redemption by first class mail, postage prepaid, or by a reputable nationally recognized overnight
courier service, prepaid and preaddressed, sent not less than 20 days nor more than 60 days prior to the redemption date, to each Holder of Preferred Units. Each notice shall state: (a) that such notice is being given by the Company in
accordance with Paragraph 4A of this Agreement and whether such redemption is being effected pursuant to Paragraph 4A(1), (2), or (3) (b) the date fixed for redemption (which date may be described by reference
to the date upon which the Payoff Transaction occurs), (c) the total number of Preferred Units to be redeemed and the number of Preferred Units of such Holder to be redeemed, (d) the redemption price, (e) that such redemption will be
funded by proceeds received from a Complete Exit Event or other transaction(s) described in reasonable detail (collectively, a “Payoff Transaction”) or cash on hand, and (f) that the Company’s obligation to redeem will be
irrevocable subject only to consummation of the Payoff Transaction. Upon giving any such notice of redemption, the Company shall become irrevocably obligated to redeem the total number of Preferred Units specified in such notice, subject (if
applicable) to consummation of any Payoff Transaction described in such notice. The Company shall keep each Holder of Preferred Units reasonably and timely informed of (i) any deferral of the closing of a Payoff Transaction, (ii) the date
on which such Payoff Transaction and the redemption are expected to occur, and (iii) any determination by the Company that efforts to effect such Payoff Transaction have ceased or been abandoned (in which case the redemption notice given
pursuant to this Paragraph 4A(5) in respect of such proposed redemption shall be deemed rescinded). 
 4B. Put
Right in the Event of a Change in Control. 
 (1) Notice of Occurrence of Change in Control or
Control Event. The Company may, at any time prior to (and if such notice is not prior to, then will promptly, and in any event within 5 days, after) the date upon which any Responsible Officer has knowledge of the occurrence of any Change in
Control or Control Event, give written notice of such Change in Control or Control Event to each Holder of a Preferred Unit.

  

 7 

 
Such notice shall contain and constitute an irrevocable offer to redeem (if such Change in Control occurs), at each such Holder’s election, all or any part of such Holder’s Preferred
Units at a price per unit equal to the Liquidation Value (as of the date of such redemption) of each such Preferred Unit to be so redeemed plus the applicable Redemption Amount with respect to each such Preferred Unit. The offer to redeem Preferred
Units contemplated by this Paragraph 4B shall specify: (a) a description (in reasonable detail) of the Change in Control, (b) that the offer is being given by the Company in accordance with the terms of Paragraph 4B of this
Agreement and that such offer will be deemed to be accepted pursuant to Paragraph 4B(3) unless the Holder rejects such offer by written notice given to the Company within 30 days after such offer is made (or in the case where a Change in
Control has already occurred, within 10 days after such offer is made), (c) the date (which date may be described by reference to the date such Change in Control occurs) fixed for redemption (the “Redemption Date”), and, if a
Change in Control has occurred, such date shall be not less than 15 days nor more than 20 days after the date of such notice, and (d) the redemption price. 
 (2) Condition to Company Action. Neither the Company nor any of its Subsidiaries will take any action that
consummates or finalizes a Change in Control unless (a) at least 35 days prior to such action it shall have given to each Holder of Preferred Units written notice containing and constituting an offer to redeem Preferred Units as described in
Paragraph 4B(1) above and (b) contemporaneously with such action, the Company redeems all Preferred Units required to be redeemed in accordance with this Paragraph 4B. 
 (3) Rejection/Acceptance. A Holder of Preferred Units may accept or reject the offer to redeem made pursuant to
this Paragraph 4B by causing a written notice of such acceptance or rejection to be given to the Company within 30 days after such offer is made (or in the case where a Change in Control has already occurred, within 10 days after such offer
is made) (any such notice specifying an acceptance of such offer, an “Acceptance”). Such Acceptance shall specify the number of Preferred Units to be so redeemed. A failure by such a Holder to respond to an offer to redeem made
pursuant to this Paragraph 4B shall be deemed to constitute an acceptance of such offer as to all Preferred Units held by such Holder. 
 (4) Acceptance. Upon acceptance or deemed acceptance by any Holder of an offer to redeem given pursuant to Paragraph 4B(3), the Company shall become irrevocably obligated, subject to
the occurrence of the Change in Control, to redeem such Preferred Units as are specified in the Acceptance on the Redemption Date at the price specified pursuant to Paragraph 4B(1). In the event any Change in Control does not occur on the
expected date, the Company shall keep each Holder of Preferred Units reasonably and timely informed of (i) any deferral of the redemption of the Preferred Units, (ii) the date on which such Change in Control and the redemption are expected
to occur, and (iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances (or deemed acceptances) made pursuant to this Paragraph 4B in
respect of such proposed redemption shall be deemed rescinded). 
  

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 4C. Mandatory Redemption. All outstanding Preferred Units shall be redeemed by the
Company, in whole, on December 11, 2013 (the “Mandatory Redemption Date”) at a redemption price per unit equal to the Liquidation Value (as of the date of such redemption) of each Preferred Unit to be so redeemed through the
date of redemption. 
 4D. Common Unit Put Right. On the Mandatory Redemption Date or any Business Day thereafter, any
Holder of a Common Unit shall have the right by written notice to the Company to require the Company to purchase all or any part of the Common Units held by such Holder at a cash price equal to the Fair Market Value (as defined in, and determined in
accordance with, the LLC Agreement) thereof determined as of the date such notice is given, which price will be payable in immediately available funds on the 90th day following the day on which the Fair Market Value thereof has been finally
determined in accordance with the LLC Agreement; provided, that any Holder may require the Company to purchase all or any part of the Common Units held by such Holder on the Mandatory Redemption Date at a cash price equal to the Fair Market
Value thereof, determined as of the date which is 90 days prior to the Mandatory Redemption Date, by giving written notice thereof to the Company on or prior to the 90th day prior to the Mandatory Redemption Date, in which event such price will be
payable in immediately available funds on the Mandatory Redemption Date. 
 5. AFFIRMATIVE COVENANTS. 
 5A. Financial Statements. The Company will deliver, or cause to be delivered, to each Holder: 
 (1) within forty-five (45) days after the last day of each month of each fiscal year of the Company (commencing with the
month ending on June 30, 2004), the balance sheets of the Company on a consolidated basis with its Subsidiaries as at the end of such month and as of the end of the preceding fiscal year, and the related statements of operations of the Company
on a consolidated basis with its Subsidiaries for such month and for the elapsed portion of the year ended with the last day of such month, which shall set forth in comparative form such figures as at the end of and for such month and for the
corresponding period (i) of the prior fiscal year and (ii) set forth in the annual operating budget and shall be certified in an Officer’s Certificate of the Company (executed on its behalf by a Responsible Officer of the Company) to
have been prepared in accordance with GAAP and to present fairly in all material respects the financial position of the Company on a consolidated basis with its Subsidiaries as at the end of such period and the results of operations for such period,
and for the elapsed portion of the year ended with the last day of such period, subject only to normal year-end and audit adjustments (including notes to the applicable financial statements if required to be provided under the Subordinated Note
Indenture or the Senior Discount Note Indenture); 
 (2) within forty-five (45) days after the last day of
each quarter of each fiscal year of the Company, the balance sheets of the Company on a consolidated basis with its Subsidiaries as at the end of such quarter and as of the end of the preceding fiscal year, and the related statements of operations
and the related statements of cash flows of the Company on a consolidated basis with its Subsidiaries for such quarter and for the elapsed portion of the year ended with the last day of such quarter, which shall set forth

  

 9 

 
in comparative form such figures as at the end of and for such quarter and corresponding period (i) of the prior fiscal year and (ii) set forth in the annual operating budget and shall
be certified in an Officer’s Certificate of the Company (executed on its behalf by a Responsible Officer of the Company) to have been prepared in accordance with GAAP and to present fairly in all material respects the financial position of the
Company on a consolidated basis with its Subsidiaries as at the end of such period and the results of operations for such period, and for the elapsed portion of the year ended with the last day of such period, subject only to normal year-end and
audit adjustments (including notes to the applicable financial statements if required to be provided under the Subordinated Note Indenture or the Senior Discount Note Indenture); 
 (3) within ninety (90) days after the end of each fiscal year of the Company, the audited consolidated balance sheet of
Holdings and its Subsidiaries as of the end of such fiscal year and the related audited consolidated statements of operations for such fiscal year and for the previous fiscal year and the related audited consolidated statements of cash flow and
stockholders’ equity for such fiscal year and for the previous fiscal year, which shall be accompanied by an opinion of Deloitte & Touche LLP or other independent certified public accountants of recognized national standing without a
(a) “going concern” or like qualification exception (unless such exception arises solely as a result of characterizing Indebtedness that has not yet matured as a current liability due to its scheduled maturity), or
(b) qualification arising out of the scope of the audit, or qualification which would affect the computation of financial covenants; and 
 (4) so long as such Holder holds any Preferred Units, as soon as available, but in any event not later than forty-five (45) days after the beginning of each fiscal year of the Company, a preliminary
consolidated operating budget for the Company and its Subsidiaries; and as soon as available, any material revision to or any final revision of any such preliminary annual operating budget or any such consolidated operating budget; and 

all such financial statements described in clauses (1), (2) and (3) above to be complete and correct in all material respects (subject, in the
case of interim statements, to normal year-end audit adjustments and the absence of footnotes) and to be prepared in reasonable detail and in accordance with GAAP. 
 5B. Certificates; Other Information. 
 (1) So long as any
Holder holds any Preferred Unit, the Company will deliver to such Holder: 
 (a) concurrently with the delivery
of the consolidated financial statements referred to in Paragraph 5A(3), a letter from the independent certified public accountants reporting on such financial statements stating that in making the examination necessary to express their
opinion on such financial statements no knowledge was obtained of any Default or Event of Default under Paragraph 7A, except as specified in such letter; 
  

 10 

 (b) beginning with the delivery of the financial statements for the quarter
ending September 30, 2004, concurrently with the delivery of the financial statements referred to in Paragraphs 5A(1), 5A(2) and 5A(3) an Officer’s Certificate in form and substance reasonably acceptable to the Required
Holder(s) stating that during such period (i) the officer executing such Officers’ Certificate on the Company’s behalf has obtained no knowledge of any Default or Event of Default, in each case, except as specified in such
certificate, and (ii) showing in reasonable detail as of the end of the related accounting period the figures and calculations supporting such statement in respect of Paragraphs 6A, 6B and 6C and any other calculations
reasonably requested by any Holder of a Preferred Unit with respect to the quantitative aspects of the other covenants contained herein; 
 (c) together with any delivery of a financial statement referred to in Paragraph 5A(2), a summary of all Asset Sales during the fiscal quarter covered by such statements; and 
 (d) promptly, and in any event within three Business Days, after an Officer of the Company obtains knowledge thereof, notice
of the occurrence of any event which constitutes a Default or Event of Default, specifying nature and extent thereof and what action the Company is supposed to take with respect thereto. 
 (2) The Company will deliver to each Holder: 
 (a) beginning with the delivery of the financial statements for the quarter ending September 30, 2004, concurrently with
the delivery of the financial statements referred to in Paragraphs 5A(1), 5A(2) and 5A(3) an Officer’s Certificate in form and substance reasonably acceptable to the Required Holder(s) stating that during such period the
Company and its Subsidiaries have observed or performed all of the covenants and other agreements, and satisfied every material condition, contained in this Agreement and the other Transaction Documents to be observed, performed or satisfied by it;

 (b) promptly upon receipt thereof, copies of all final reports submitted to the Company or any of its
Subsidiaries by independent certified public accountants in connection with each annual, interim or special audit of the books of the Company or any of its Subsidiaries made by such accountants, and any final comment letter submitted by such
accountants to management in connection with their annual audit; 
 (c) promptly upon their becoming available,
copies of all financial statements, reports, notices and proxy statements sent or made available to the public generally by the Company or any of its Subsidiaries, if any, and all regular and periodic reports and all final registration statements
and final prospectuses, if any, filed by the Company or any of its Subsidiaries with any securities exchange or with the SEC or any Governmental Authority succeeding to any of its functions; 
  

 11 

 (d) commencing with delivery of the financial statements for the period
ending September 30, 2004, concurrently with the delivery of the financial statements referred to in Paragraphs 5A(2) and (3), a management summary describing and analyzing the performance of Holdings and its Subsidiaries
during the periods covered by such financial statements, but only if such summary is required pursuant to the terms of any indenture or other agreement evidencing any Indebtedness; 
 (e) promptly, and in any event within three Business Days of any request, such additional financial and other information as
any Holder may from time to time reasonably request; and 
 (f) promptly, and in any event within three Business
Days of transmission thereof, copies (unless otherwise delivered pursuant to the other provisions of this Agreement) of all financial statements, notices, reports and other information and materials given to the Senior Lenders under the Senior
Credit Agreement (excluding routine borrowing matters in the ordinary course of business such as borrowing requests and notices relating to repayments or interest rates) or to the indenture trustee under the Subordinated Note Indenture and the
Senior Discount Note Indenture. 
 5C. Payment of Obligations. 
 (1) So long as any Holder holds any Preferred Unit, the Company will, and will cause each of its Subsidiaries to, file all
income tax or similar tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges or levies payable by any of them, and to
pay and discharge all amounts payable for work, labor and materials, in each case to the extent such taxes, assessments, charges, levies and amounts payable have become due and payable and before they have become delinquent, provided that neither
the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or amount payable if (i) the amount, applicability or validity thereof is being actively contested by the Company or such Subsidiary on a timely basis in good faith
and in appropriate proceedings, and the Company has established adequate reserves therefor in accordance with GAAP on the books of the Company and (ii) the nonpayment of such taxes, assessments, charges, levies and amounts payable, individually
or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
 (2) So long as any
Holder holds any Preferred Unit, the Company will, and will cause each of its Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its other obligations and liabilities
of whatever nature, except (i) when the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of the Company or
any of its Subsidiaries, as the case may be, (ii) for delinquent obligations which do not have a Material Adverse Effect, and (iii) for trade and other accounts

  

 12 

 
payable in the ordinary course of business which are not overdue for a period of more than 90 days or, if overdue for more than 90 days, as to which a dispute exists and adequate reserves in
conformity with GAAP have been established on the books of the Company or any of its Subsidiaries, as the case may be. 
 5D.
Conduct of Business and Maintenance of Existence. So long as any Holder holds any Preferred Unit, except as otherwise permitted by Paragraph 6E or 6G, the Company will, and will cause each Subsidiary to, preserve, renew and keep in
full force and effect its limited liability company or corporate existence and take all reasonable action to maintain all material rights, material privileges, franchises, copyrights, patents, trademarks and trade names necessary or desirable in the
normal conduct of its business except for rights, privileges, franchises, copyrights, patents, trademarks and trade names the loss of which could not, in the aggregate, reasonably be expected to have a Material Adverse Effect; and comply with all
applicable Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. This Paragraph shall not be deemed to restrict the Company or any of its
Subsidiaries from abandoning or failing to pursue or enforce any Intellectual Property or registrations or applications therefor, which actions or inactions are taken in the Company’s or its Subsidiary’s commercially reasonable discretion
and would not, in the aggregate, have a Material Adverse Effect. 
 5E. Maintenance of Properties. So long as any Holder
holds any Preferred Unit, the Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and
tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Paragraph shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of
its properties if such discontinuance is desirable in the conduct of its business and such discontinuance would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 
 5F. Insurance. So long as any Holder holds any Preferred Unit, the Company will, and will cause each of its Subsidiaries to,
maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts as are usual for similarly
situated companies engaged in similarly situated industries. 
 5G. Information Required by Rule 144A. The Company will,
upon the request of any Holder, provide such Holder and any qualified institutional buyer designated by such Holder such financial and other information as such Holder may reasonably determine to be necessary in order to permit compliance with the
information requirements of Rule 144A under the Securities Act in connection with the resale of a Security, except at such times as the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act. For the purpose
of this Paragraph 5G, the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the Securities Act. 
 5H. Inspection of Property; Books and Records. The Company will, and will cause each Subsidiary to, (1) keep proper books of record and account in which full, true and correct entries are made
of all dealings and transactions in relation to its business and activities which

  

 13 

 
permit financial statements to be prepared in conformity with GAAP and all Requirements of Law; and (2) permit representatives of any Holder upon reasonable notice (at such Holder’s
sole expense unless both any Preferred Unit is outstanding and a Default or Event of Default shall have occurred and be continuing) to visit and inspect any of its properties or assets and examine and make abstracts from any of its books and records
(including without limitation insurance policies) at any reasonable time and upon reasonable notice, and to discuss the business, operations, assets and financial and other condition of the Company and its Subsidiaries with officers and employees
thereof and with their independent certified public accountants with prior reasonable notice to, and coordination with, the Company; provided that, so long as any Preferred Unit is outstanding, the Company shall be required to pay the
expenses of one such inspection of the Company per fiscal year conducted by a representative designated by the Required Holder(s) if so elected by the Required Holder(s). 
 5I. Compliance with Law. So long as any Preferred Unit is outstanding, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject (including, without limitation, Environmental Laws, and ERISA) and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the
ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or
maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 
 5J. Notices. The Company will promptly, and in any event within three Business Days, give notice to each Holder: 
 (1) of the occurrence of any Default or Event of Default at any time when any Preferred Unit is outstanding; 
 (2) of any (i) default or event of default under any instrument or other agreement, guarantee or collateral document of
the Company or any of its Subsidiaries which default or event of default has not been waived and could reasonably be expected to have a Material Adverse Effect, or (ii) litigation, investigation (of which the Company or any Subsidiary is aware)
or proceeding which may exist at any time between the Company or any of its Subsidiaries and any Governmental Authority, or receipt of any notice of any environmental claim or assessment against the Company or any of its Subsidiaries by Governmental
Authority, which in any such case could reasonably be expected to have a Material Adverse Effect; 
 (3) of any
litigation or proceeding against or insolvency of the Company or any of its Subsidiaries (i) in which more than $5,000,000 of the amount claimed is not covered by insurance; (ii) in which injunctive or similar relief is sought which if
obtained could reasonably be expected to have a Material Adverse Effect; or (iii) the subject matter of which is any Intellectual Property of any Person, and that could reasonably be expected to have a Material Adverse effect. 
  

 14 

 (4) promptly, upon the occurrence of any ERISA Event that, alone or together
with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect, written notice specifying the nature thereof, what action the Company, its Subsidiaries or other ERISA Entity have taken, are taking
or propose to take with respect thereto, and, when known, any action taken or threatened by the Internal Revenue Service, Department of Labor, PBGC or Multiemployer Plan sponsor with respect thereto; 
 (5) upon request by any Holder of a Preferred Unit, copies of: (i) each Schedule B (Actuarial Information)
to the annual report (Form 5500 Series) filed by any ERISA Entity with the Internal Revenue Service with respect to each Pension Plan; (ii) the most recent actuarial valuation report for each Pension Plan; (iii) all notices received by any
ERISA Entity from a Multiemployer Plan sponsor or any governmental agency concerning an ERISA Event; and (iv) such other documents or governmental reports or filings relating to any Employee Benefit Plan as such Holder shall reasonably request;

 (6) of any occurrence that the Company or any Subsidiary would be otherwise required to file on Form 8-K with
the SEC (if the Company or such Subsidiary were subject to the filing requirements of the Exchange Act); and 
 (7) of a Material Adverse Effect known to the Company or any of its Subsidiaries. 
 Each notice pursuant to this Paragraph 5J
shall be accompanied by an Officers’ Certificate of the Company executed on its behalf by a Responsible Officer of the Company setting forth in reasonable detail the occurrence referred to therein and (in the cases of clauses (1) through
(4), (6) and (7)) stating what action (if any) the Company proposes to take with respect thereto. It is understood that, in an effort to comply with its covenants hereunder, the Company may from time to time deliver notices of events
(including events of the types described above) to the Holders, and that the notification of any event or events shall not constitute an admission or determination by the Company that the event or events covered by such notice have resulted or will
result in a Material Adverse Effect. 
 5K. Environmental Laws. 
 (1) Except to the extent the failure to do so would not, individually or in the aggregate, result in a Material Adverse
Effect, the Company will, and will cause each Subsidiary to, (a) comply with all Environmental Laws applicable to it, and obtain, comply with and maintain any and all Environmental Permits necessary for its operations as conducted and as
planned; (b) ensure that all of its tenants, subtenants, contractors, subcontractors and invitees comply with all Environmental Laws, and obtain, comply with and maintain any and all Environmental Permits, applicable to any of them; and
(c) comply in a timely manner with all orders and lawful directives regarding Environmental Laws issued to the Company or any of its Subsidiaries by any Governmental Authority, other than such orders and lawful directives as to which an

  

 15 

 
appeal or other challenge has been timely and properly taken in good faith and with respect to which reserves have been taken in accordance with GAAP. 
 (2) The Company will, and will cause each Subsidiary to, (a) reasonably and prudently manage any liabilities or
potential liabilities that the Company, any Subsidiary, any of their respective operations (including, without limitation, disposal of Hazardous Materials), and any properties owned or leased by any of them, may be subject to under all applicable
Environmental Laws; and (b) ensure that the Company and its Subsidiaries undertake reasonable efforts to identify, and evaluate, issues of compliance with and liability under Environmental Laws prior to acquiring, directly or indirectly, any
ownership or leasehold interest in real property, or other interest in any real property that could give rise to the Company or any of its Subsidiaries being subjected to liability under any Environmental Law as a result of such acquisition.

 5L. Anti-Terrorism Law. Neither the Company nor any of its Subsidiaries shall directly or indirectly,
(1) knowingly conduct any business or engage in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in Paragraph 5M below, (2) knowingly deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant to the Executive Order or any other Anti-Terrorism Law, or (3) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law (and the Company and its Subsidiaries shall deliver to each Holder any certification or other evidence requested from time to time by
any Holder in its reasonable discretion, confirming compliance with this Paragraph 5L). 
 5M. Embargoed Person.
The Company will, and will cause each Subsidiary to, ensure that (1) none of the funds or assets of the Company and its Subsidiaries that are used to make payments with respect to the Securities shall, to the knowledge of any Transaction Party,
constitute property of, or shall be beneficially owned directly or indirectly by, any Person subject to sanctions or trade restrictions under United States law (“Embargoed Person” or “Embargoed Persons”) that is
identified on (i) the “List of Specially Designated Nationals and Blocked Persons” (the “SDN List”) maintained by OFAC, and/or to the knowledge of any Transaction Party, as of the date thereof, based upon reasonable
inquiry by such Transaction Party, on any other similar list (“Other List”) maintained by OFAC pursuant to any authorizing statute including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C.
§§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation promulgated thereunder, with the result that the investment in the Company or any of its Subsidiaries (whether
directly or indirectly) is prohibited by law, or the holding of Securities by the Holders would be in violation of law, or (ii) the Executive Order, any related enabling legislation or any other similar Executive Orders (collectively,
“Executive Orders”), and (2) no Embargoed Person shall, to the knowledge of any Transaction Party, have any direct interest, as of the date hereof, based upon reasonable inquiry by any Transaction Party, indirect interest, of
any nature whatsoever in the Transaction Parties, with the result that the investment in the Transaction Parties (whether directly or indirectly) is prohibited by law or the holding of the Securities are in violation of law. 
  

 16 

 5N. Anti-Money Laundering. The Company will, and will cause each Subsidiary to,
ensure that, to the knowledge of any Transaction Party, as of the date hereof, based upon reasonable inquiry by such Transaction Party, none of the funds of the Company or any of its Subsidiaries that are used to make payments with respect to the
Securities shall be derived from any unlawful activity with the result that the purchase and holding of the Securities would be in violation of law. 
 5O. Payment of Wages. The Company shall and shall cause each of its Subsidiaries to at all times comply, in all material respects, with the material requirements of the Fair Labor Standards Act, as
amended, including, without limitation, the provisions of such Act relating to the payment of minimum and overtime wages as the same may become due from time to time. 
 5P. Management Rights. For so long as New York Life Capital Partners holds any Security or any Class A Common Units, New York Life Capital Partners shall be entitled (in addition to all of its
other rights herein and not in limitation thereof) to consult with and advise the management of the Company and its Subsidiaries, upon reasonable notice at reasonable times from time to time, on all matters relating to the operation of the Company
and its Subsidiaries, and the Company agrees to consider, and shall cause its Subsidiaries to consider, in good faith such recommendations of New York Life Capital Partners in connection with the matters on which it is consulted, recognizing that
the ultimate discretion with respect to all such matters shall be retained by the Company or such Subsidiary (as the case may be). 
 6.
NEGATIVE COVENANTS. For so long as any Preferred Units remain outstanding (and, in the case of Paragraph 6D, so long as any Class D Common Units remain outstanding): 
 6A. Limitation on Indebtedness and Issuance of Disqualified Capital Stock. 
 (1) The Company shall not, and shall not cause or permit any Subsidiary to, directly or indirectly, Incur any Indebtedness
(including any Acquired Indebtedness) or issue any Disqualified Capital Stock and no Subsidiary may issue any Preferred Capital Stock, except (a) the Company and its Subsidiaries may Incur Redeemable Common Equity on the date hereof,
(b) the Company and its Subsidiaries may Incur Permitted Indebtedness, and (c) the Company and its Subsidiaries may Incur other Indebtedness and the Company’s Subsidiaries may issue Disqualified Capital Stock or Preferred Capital
Stock if, in each case as to this clause (c), immediately after giving pro forma effect to such Incurrence of Indebtedness or issuance of Disqualified Capital Stock or Preferred Capital Stock and the application of the proceeds therefrom, the
Consolidated Leverage Ratio would be less than or equal to 7.00 to 1.0. 
 (2) The limitations set forth in
Paragraph 6A(1) will not apply to the Incurrence or issuance of any of the following (collectively, “Permitted Indebtedness”), each of which shall be given independent effect: 
 (a) Indebtedness under the Subordinated Notes and Senior Discount Notes and the related guarantees and the Subordinated Note
Indenture and the Senior Discount Note Indenture; provided that the aggregate principal amount of all such Indebtedness Incurred pursuant to this clause (a) does not exceed an

  

 17 

 
amount equal to $220,000,000 less the aggregate amount applied by the Company and its Subsidiaries to prepay or otherwise repay such Indebtedness; 
 (b) Existing Indebtedness; 
 (c) Indebtedness of the Company and its Subsidiaries pursuant to the Senior Credit Agreement; provided that the aggregate principal amount of all such Indebtedness Incurred pursuant to this clause
(c) does not exceed an amount equal to $325,000,000 less the aggregate amount applied to prepay or otherwise repay any term loans under the Senior Credit Agreement, or permanently reduce the availability of Indebtedness under the Senior Credit
Agreement, pursuant to Section 4.3, 4.4 or 4.5 of the Senior Credit Agreement or otherwise with the proceeds of any Asset Sale; 
 (d) Indebtedness, Disqualified Capital Stock or Preferred Capital Stock of any Subsidiary owed to and held by the Company or any of its Subsidiaries and Indebtedness or Disqualified Capital Stock of the
Company owed to and held by any Subsidiary; provided, however, that an Incurrence of Indebtedness and issuance of Indebtedness, Disqualified Capital Stock or Preferred Capital Stock that is not permitted by this clause (d) shall be
deemed to have occurred upon any sale to or other disposition to a Person (other than the Company or any Subsidiary) of any Indebtedness, Disqualified Capital Stock or Preferred Capital Stock of the Company or any Subsidiary referred to in this
clause (d); 
 (e) guarantees by the Company or any of its Subsidiaries of Indebtedness permitted to be Incurred
under this Paragraph 6A; 
 (f) Hedging Obligations of the Company and its Subsidiaries; provided,
however, that such Hedging Obligations are entered into for genuine business purposes and not speculative purposes; 
 (g) Indebtedness of the Company or any of its Subsidiaries consisting of Purchase Money Indebtedness or Capital Lease Obligations (and refinancings thereof) in an aggregate principal amount which, when
aggregated with the principal amount of all other Indebtedness then outstanding and Incurred pursuant to this clause (g), does not exceed the greater of (x) $10,000,000 or (y) 1.5% of Total Assets of the Company; 
 (h) Indebtedness in connection with surety bonds, letters of credit and performance bonds obtained in the ordinary course of
business, including in connection with workers’ compensation obligations of the Company and its Subsidiaries; 
 (i) Indebtedness or Disqualified Capital Stock of the Company or a Subsidiary of the Company or Preferred Capital Stock of a Subsidiary of the Company to the extent representing a replacement, renewal, refinancing or extension
(collectively, a “refinancing”) of outstanding Indebtedness Incurred or

  

 18 

 
Disqualified Capital Stock or Preferred Capital Stock issued in compliance with the Consolidated Leverage Ratio set forth in clause (c) of Paragraph 6A(1) or either of clause
(a) or (b) or this clause (i) of this Paragraph 6A(2); provided, however, that: 
 (i) any such refinancing shall not exceed the sum of the principal amount (or accreted amount (determined in accordance with GAAP), if less) or liquidation preference of the Indebtedness, Disqualified Capital Stock or Preferred Capital
Stock being refinanced, plus the amount of accrued interest or dividends thereon, plus the amount of any reasonably determined premium necessary to accomplish and actually paid in connection with such refinancing and such reasonable fees and
expenses incurred in connection therewith; and 
 (ii) Disqualified Capital Stock of the Company may only be
refinanced pursuant to this Paragraph 6A(2)(i) with other Disqualified Capital Stock of the Company; 
 (j)
Indebtedness consisting of customary indemnification, adjustments of purchase price or similar obligations, in each case, incurred or assumed in connection with the acquisition or sale of any business or assets; 
 (k) Acquired Indebtedness of the Company or any of its Subsidiaries if (i) such Acquired Indebtedness is Incurred within
270 days after the date on which the related definitive acquisition agreement was entered into by the Company or such Subsidiary, (ii) the aggregate principal amount of such Acquired Indebtedness is no greater than the aggregate principal
amount of Acquired Indebtedness set forth in a notice from the Company to each Holder (an “Incurrence Notice”) within ten days after the date on which the related definitive acquisition agreement was entered into by the Company or
such Subsidiary, which notice shall be executed on the Company’s behalf by the chief financial officer of the Company in such capacity and shall describe in reasonable detail the acquisition which such Acquired Indebtedness will be Incurred to
finance, (iii) after giving pro forma effect to the acquisition described in such Incurrence Notice, the Company or such Subsidiary could have otherwise incurred such Acquired Indebtedness under Paragraph 6A(1) as of the date upon which
the Company delivers such Incurrence Notice to the Holders and (iv) such Acquired Indebtedness is utilized solely to finance the acquisition described in such Incurrence Notice (including to repay or refinance indebtedness or other obligations
Incurred in connection with such acquisition and to pay related fees and expenses); 
 (l) ABRY Subordinated
Indebtedness not to exceed $50,000,000 at any time; and 
 (m) in addition to the items referred to in clauses
(a) through (l) above, Indebtedness of the Company or any Subsidiary (including any Indebtedness

  

 19 

 
under the Senior Credit Agreement that utilizes this clause (m)) having an aggregate principal amount not to exceed $20,000,000 at any time outstanding. 
 (3) For purposes of determining any particular amount of Indebtedness under this Paragraph 6A, guarantees, Liens
or letter of credit obligations supporting Indebtedness otherwise included in the determination of such particular amount shall not be included. For purposes of determining compliance with this Paragraph 6A, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in clauses (a) through (m) of Paragraph 6A(2) above or is permitted to be incurred in compliance with clause (c) of
Paragraph 6A(1), the Company may, in its sole discretion, classify such item of Indebtedness in any manner that complies with this Paragraph 6A. In addition, the Company may, at any time, change the classification of an item
of Indebtedness, or any portion thereof, to any other clause of Paragraph 6A(2) or Paragraph 6A(1), provided that the incurrence of the item of Indebtedness, or portion thereof, would be permitted at the time of
reclassification. Notwithstanding the foregoing, Indebtedness under the Senior Credit Agreement outstanding on the Closing Date will be deemed to have been Incurred under clause (3) of Paragraph 6A(2) at all times. Accrual of
interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, the payment of dividends on Disqualified Capital Stock or Preferred Capital Stock
in the form of additional shares of the same class of Disqualified Capital Stock or Preferred Capital Stock and change in the amount outstanding due solely to the result of fluctuations in the exchange rates of currencies will not be deemed to be an
incurrence of Indebtedness or issuance of Disqualified Capital Stock or Preferred Capital Stock for purposes of this Paragraph 6A. 
 6B. Limitation on Restricted Payments. 
 (1) The Company
shall not, and shall not cause or permit any Subsidiary to, directly or indirectly: 
 (a) declare or pay any
dividend or any other distribution on any Capital Stock of the Company or make any payment or distribution to the direct or indirect holders (in their capacities as such) of Capital Stock of the Company (other than (i) any dividends,
distributions and payments made to the Company or any Subsidiary and dividends or distributions payable to any Person solely in the form of Qualified Capital Stock (which is not Preferred Capital Stock) of the Company, and (ii) accruals and
payment of Yield on, and payments of Unreturned Capital Value or redemption of, the Preferred Units in accordance with the terms hereof and of the LLC Agreement); 
 (b) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the Company (other than (i) any such
Capital Stock owned by the Company or any Subsidiary, or (ii) Preferred Units in accordance with the terms hereof and of the LLC Agreement); 
  

 20 

 (c) make any Investment (other than a Permitted Investment) in any Person ;
or 
 (d) make any payment, repayment, redemption, retirement, repurchase or other acquisition on account of or
in respect of any Redeemable Common Equity or ABRY Subordinated Indebtedness (other than by conversion of such ABRY Subordinated Indebtedness or Redeemable Common Equity into Qualified Capital Stock (which is not Preferred Capital Stock) of the
Company as set forth in the definitions of “ABRY Subordinated Indebtedness” and “Redeemable Common Equity”) 
 (any such
payment or any other action (other than any exception thereto) described in clause (a), (b), (c), or (d) above, a “Restricted Payment”), unless at the time the Company or such Subsidiary makes such Restricted Payment:

 (i) no Default or Event of Default shall have occurred and be continuing at the time of or immediately after
giving effect to such Restricted Payment; 
 (ii) immediately after giving effect to such Restricted Payment, the
Company would be permitted to Incur $1.00 of additional Indebtedness (other than Permitted Indebtedness) under clause (c) of Paragraph 6A(1); 
 (iii) if (after giving effect to such Restricted Payment) an aggregate amount of $120,000,000.00 in Restricted Payments has been made on or after the Closing (excluding any Restricted Payments made in
respect of Redeemable Common Equity), then immediately after giving effect to such Restricted Payment, the sum of the aggregate amount of all Restricted Payments made on or after the Closing Date, plus the aggregate amount of all accrued
Yield paid by the Company in cash with respect to the Preferred Units does not exceed an amount equal to the sum of, without duplication: 
 (A) the sum of (x) $10.0 million plus (y) 100% of the cumulative Consolidated Cash Flow determined for the period (taken as one period) beginning on the first day of the fiscal quarter
immediately following the Closing Date and ending on the last day of the most recent fiscal quarter immediately preceding the date of such Restricted Payment for which consolidated financial information of the Company is internally available (or, if
such cumulative Consolidated Cash Flow shall be negative, minus 100% of such cumulative Consolidated Cash Flow) less (z) 125% of cumulative Consolidated Interest Expense for the same period; plus 
 (B) the aggregate net proceeds (including the Fair Market Value of property other than cash) received after the Closing Date
(I) by the Company (other than the Equity Financing), either as capital contributions to the Company or from the issue and sale (other than to a

  

 21 

 
Subsidiary) of Qualified Capital Stock of the Company (including ABRY Subordinated Indebtedness issued by the Company) or (II) by any Subsidiary from the issuance of ABRY Subordinated
Indebtedness by such Subsidiary (except, in each case, to the extent set forth in clauses (b), (c), and (k) of Paragraph 6B(2)); plus 
 (C) the principal amount (or accreted amount, determined in accordance with GAAP, if less) of any Indebtedness or Disqualified Capital Stock of the Company or any Subsidiary (other than ABRY Subordinated
Indebtedness described in clause (B) above), in each case Incurred after the Closing Date to the extent it has been converted into or exchanged for Qualified Capital Stock (that is not Preferred Capital Stock) of the Company; plus 

 (D) to the extent not included in cumulative Consolidated Cash Flow for purposes of clause (iii)(A) above, in
the case of the disposition or repayment of any Investment (whether through interest payments, principal payments, dividends or other distributions) or the release of a guarantee constituting a Restricted Payment made after the Closing Date, an
amount equal to the return of capital with respect to such Investment (including the Fair Market Value of property other than cash), less the cost of the disposition of such Investment and net of taxes, and, in the case of guarantees, less any
amounts paid under such guarantee; and 
 (iv) all accrued Yield on the Preferred Units has been paid in full in
cash. 
 (2) Subject to Paragraph 6B(3), the foregoing provisions will not prevent: 
 (a) the payment of any dividend or distribution on, or redemption of, Capital Stock within 60 days after the date of
declaration of such dividend or distribution or the giving of formal notice of such redemption, if at the date of such declaration or giving of such formal notice such payment or redemption would comply with the provisions of this Agreement;

 (b) the purchase, redemption, retirement or other acquisition of any Capital Stock of the Company in exchange
for, or out of the net cash proceeds of the substantially concurrent issue and sale (other than to a Subsidiary) of, other Capital Stock of the Company (other than Preferred Capital Stock), including ABRY Subordinated Indebtedness;
provided, however, that any such net proceeds and the value of any Qualified Capital Stock issued in exchange for any such Capital Stock are excluded from clause (iii) of Paragraph 6B(1) above (and were not included therein
at any time); 
 (c) the repurchase of shares of Capital Stock of the Company owned by former, present or future
employees, directors or consultants of the Company or its Subsidiaries or their assigns, estates and heirs; provided that the aggregate

  

 22 

 
amount expended by the Company pursuant to this clause (c) shall not in the aggregate exceed $2,000,000 in any fiscal year (with unused amounts being available to be utilized in succeeding
fiscal years), plus any amounts contributed to the Company as a result of sales of any such shares of Capital Stock of the Company to such persons (provided that any such amounts so contributed shall not be included in clause
(iii) of paragraph (1) above to the extent available under this clause (d)) and the amount of any “key man” insurance proceeds received by the Company or any Subsidiary; provided that the cancellation of Indebtedness owing
to the Company in connection with any such repurchase shall not be deemed a Restricted Payment; 
 (d) payments
required pursuant to the terms of the Agreement and Plan of Merger to consummate the Transactions or otherwise in connection with the Transactions; 
 (e) the payment of the dividends on Disqualified Capital Stock or Preferred Capital Stock of the Company or a Subsidiary of the Company, the incurrence of which was permitted by this Agreement;

 (f) repurchases of Capital Stock deemed to occur upon the cashless exercise or conversion of stock options,
warrants or other convertible or exchangeable securities; 
 (g) distributions to the extent (i) the Company
is treated as a pass-through or disregarded entity for tax purposes (such as a partnership, limited liability company or S-corporation) to the extent necessary to permit it or the direct or indirect holders of its Capital Stock to pay any Federal,
state or local taxes owing by it or them in respect of income of the Company and its Subsidiaries or (ii) the Company is not such a pass through or disregarded entity but is a member of a consolidated group of corporations that includes a
holding company above it to the extent necessary to pay taxes of the consolidated group; provided that nothing in this clause (g) will be deemed to permit any such distribution to pay any tax liabilities of direct or indirect investors
in the Company resulting from the conversion of the Company from a limited liability company to corporate form; 
 (h) repayment of, or payments of principal and interest of, ABRY Subordinated Indebtedness and Redeemable Common Equity in accordance with the terms thereof at the time of its issuance; provided, however, any net proceeds
received from any ABRY Subordinated Indebtedness are excluded from clauses (iii)(B), (iii)(C) and (iii)(D) of Paragraph 6B(1) above for so long as such ABRY Subordinated Indebtedness is outstanding; and 
 (i) Restricted Payments not to exceed $10,000,000 in the aggregate since the Closing Date. 
  

 23 

 (3) Notwithstanding anything herein to the contrary, the Company shall not,
and shall not permit any Subsidiary to, make any Restricted Payment referred to in Paragraph 6B(2) (other than a Restricted Payment referred to in clause (b), (f) or (g) of Paragraph 6B(2)), with respect to any Capital Stock
or Subordinated Indebtedness of the Company or to any holder thereof (other than payments to Holders with respect to Preferred Units in accordance with the terms of this Agreement and the LLC Agreement) unless at the time the Company or such
Subsidiary makes such Restricted Payment no Default or Event of Default shall have occurred and be continuing or would exist immediately after giving effect to such Restricted Payment and immediately after giving effect to such Restricted Payment,
the Company would be permitted to Incur $1.00 of additional Indebtedness pursuant to clause (c) of Paragraph 6A(1). 
 (4) In determining the amount of Restricted Payments permissible under clause (iii) of Paragraph 6B(1), amounts expended pursuant to clause (a) of Paragraph 6B(2) shall be included
as Restricted Payments and amounts expended pursuant to clauses (b) through (i) of Paragraph 6B(2) shall be excluded. The amount of any non-cash Restricted Payment shall be deemed to be equal to the Fair Market Value thereof at the
date of the making of such Restricted Payment. 
 (5) Notwithstanding anything herein to the contrary, the
repurchase or redemption or exchange of any Class C Common Units with solely Class A Common Units pursuant to the terms of that certain Incentive Unit Agreement between the Company and the Dracup Trusts (or any substantially similar agreement
with any employee of the Company or its Subsidiaries or a Person that would be a permitted Transferee (as defined in the Members Agreement) shall not result in an increase or decrease in the amount of Restricted Payments which otherwise may be made
under the foregoing terms of this Paragraph 6B. 
 6C. Limitation on Dividend and Other Payment Restrictions Affecting
Subsidiaries. The Company shall not, and shall not cause or permit any Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any
Subsidiary to: (1) pay dividends or make any other distributions to the Company or any other Subsidiary on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits, or pay any Indebtedness owed to
the Company or any other Subsidiary, (2) make loans or advances to, or guarantee any Indebtedness or other obligations of, the Company or any other Subsidiary or (3) transfer any of its properties or assets to the Company or any other
Subsidiary, except for such encumbrances or restrictions existing under or by reason of: 
 (a) any agreement
pursuant to which Indebtedness (other than ABRY Subordinated Indebtedness) which is permitted to be Incurred pursuant to Paragraph 6A hereof is issued; 
 (b) any instrument of an Acquired Person acquired by the Company or any Subsidiary as in effect at the time of such
acquisition (except to the extent such instrument was entered into by such Acquired Person in connection with, as a result of or in contemplation of such acquisition); provided, however, that such encumbrances and

  

 24 

 
restrictions are not applicable to the Company or any Subsidiary or the properties or assets of the Company or any Subsidiary other than the Acquired Person or the property or assets of the
Acquired Person; 
 (c) customary non-assignment provisions in leases, licenses or contracts; 
 (d) Purchase Money Indebtedness and Capital Lease Obligations for assets acquired in the ordinary course of business that
only impose encumbrances and restrictions on the assets so acquired or subject to lease; 
 (e) any agreement for
the sale or disposition of the Capital Stock or assets of any Subsidiary; provided, however, that such encumbrances and restrictions described in this clause (e) are only applicable to such Subsidiary or assets, as applicable, and
any such sale or disposition is made in compliance with Paragraph 6G to the extent applicable thereto; 
 (f) any restriction contained in any security agreement or mortgage securing Indebtedness of the Company or any Subsidiary to the extent such restriction restricts the transfer of the property subject to such security agreement or mortgage;

 (g) customary restrictions imposed by the terms of shareholders’, partnership or joint venture agreements
entered into in the ordinary course of business; provided, however, that such restrictions do not apply to any Person other than the applicable company, partnership or joint venture; 
 (h) applicable law, rule, regulation or order; and 
 (i) restrictions on cash or other deposits imposed under contracts entered into in the ordinary course of business.

 6D. Transactions with Affiliates. The Company shall not, and shall not cause or permit any Subsidiary to, directly or
indirectly, conduct any business or enter into, renew, amend or conduct any transaction or series of related transactions (including the purchase, sale, lease or exchange of any assets or the rendering of any service) with or for the benefit of any
of their respective Affiliates (each an “Affiliate Transaction”), unless: 
 (1) such Affiliate
Transaction, taken as a whole, is on terms which are no less favorable to the Company or such Subsidiary, as the case may be, than would be available in a comparable transaction on an arm’s-length basis with an unaffiliated third party;

 (2) if such Affiliate Transaction or series of related Affiliate Transactions involves aggregate payments or
other consideration having a Fair Market Value in excess of $5,000,000, such Affiliate Transaction is in writing and a majority of the disinterested members of the Board of Directors of the Company shall have approved such Affiliate Transaction and
determined that such Affiliate Transaction complies with the foregoing provisions, or, in the event that there are no disinterested directors, the Holders have received a written opinion from an Independent Financial Advisor stating that the terms

  

 25 

 
of such Affiliate Transaction are fair, from a financial point of view, to the Company or the Subsidiary involved in such Affiliate Transaction, as the case may be; and 
 (3) if such Affiliate Transaction or series of related Affiliate Transactions involves aggregate payments or other
consideration having a Fair Market Value in excess of $15,000,000, such Affiliate Transaction is in writing and the Holders have received a written opinion from an Independent Financial Advisor stating that the terms of such Affiliate Transaction
are fair, from a financial point of view, to the Company or the Subsidiary involved in such Affiliate Transaction, as the case may be. 
 Notwithstanding the foregoing, the restrictions set forth in Paragraph 6D(1) above shall not apply to clauses (a), (c), (d), (e), or (h) below and Paragraph 6D(2) and (3) above shall not apply to clauses
(a) through (h), inclusive, below: 
 (a) transactions with or among the Company and any Wholly Owned
Subsidiary or between or among Wholly Owned Subsidiaries; 
 (b) any Permitted Investment and any Restricted
Payment or other payment or Investment permitted to be made pursuant to Paragraph 6B; 
 (c) any issuance
or sale of Capital Stock of the Company, or other payments, awards or grants in cash, in each case pursuant to employment arrangements or stock option plans for the benefit of employees, officers, directors, and consultants who are not otherwise
Affiliates of the Company and made, in each case, in the ordinary course of business (so long as such Capital Stock is Qualified Capital Stock if such issuance or sale occurs at any time when any Preferred Unit is outstanding); 
 (d) advances to officers, directors, employees and consultants who are not otherwise Affiliates of the Company, in each case,
made in the ordinary course of business and in an aggregate outstanding amount not to exceed $1,000,000 in any calendar year; 
 (e) the payment of reasonable directors’ fees, indemnification and similar arrangements, expense reimbursements, consulting fees (paid to consultants who are not otherwise Affiliates of the Company),
employee salaries, bonuses or employment agreements, compensation or employee benefit arrangements and incentive arrangements with any officer, director or employee of the Company or any Subsidiary, in each case, entered into in the ordinary course
of business (including reasonable benefits thereunder); 
 (f) issuances and sales of Capital Stock of the
Company to which the rights described in Section 8 of the Members Agreement are applicable or that are described in clauses (i), (ii) or (iii) of Section 8(b) of the Members Agreement (so long as such Capital Stock is Qualified
Capital Stock if such issuance or sale occurs at any time when any Preferred Unit is outstanding); 
 (g)
provision or purchase of goods or services in the ordinary course of business; and 
  

 26 

 (h) any transactions undertaken pursuant to any contractual obligations in
existence on the date hereof (or on the Closing Date and entered into in connection with the Transactions) which are described in reasonable detail on Schedule 6D(h) hereto, as the same may be amended, modified or replaced from time to
time so long as such amendment, modification or replacement is no less favorable to the Company and its Subsidiaries in any material respect. 
 6E. Merger, Sale of Assets, etc. The Company shall not consolidate with or merge with or into (whether or not the Company is the Surviving Person) any other entity and the Company shall not, and
shall not cause or permit any Subsidiary to, sell, convey, assign, transfer, lease or otherwise dispose of all or substantially all of the Company’s and the Subsidiaries’ properties and assets (determined on a consolidated basis for the
Company and the Subsidiaries) to any Person in a single transaction or series of related transactions, unless: 
 (1) either (A) the Company shall be the Surviving Person or (B) the Surviving Person (if other than the Company) shall be a corporation or limited liability company organized and validly existing under the laws of the United
States of America or any State thereof or the District of Columbia, and shall, in any such case, expressly assume pursuant to agreements reasonably satisfactory to the Required Holder(s), the due and punctual performance and observance of every
covenant contained in this Agreement and the other Transaction Documents to be performed or observed on the part of the Company; 
 (2) immediately thereafter, on a pro forma basis after giving effect to such transaction (and treating any Indebtedness not previously an obligation of the Company or any Subsidiary in connection
with or as a result of such transaction as having been Incurred at the time of such transaction), no Default or Event of Default shall have occurred and be continuing; 
 (3) immediately after giving effect to any such transaction including the Incurrence by the Company or any Subsidiary,
directly or indirectly, of additional Indebtedness (and treating any Indebtedness not previously an obligation of the Company or any Subsidiary in connection with or as a result of such transaction as having been Incurred at the time of such
transaction), either (A) the Surviving Person could Incur, on a pro forma basis after giving effect to such transaction, at least $1.00 of additional Indebtedness (other than Permitted Indebtedness) pursuant to Paragraph 6A or
(B) the Consolidated Leverage Ratio would be lower than it is prior to giving effect to such transaction; and 
 (4) the Company shall have delivered to each Holder an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture (if any) comply with this Agreement.

 Notwithstanding the provisions of clause (3) of the immediately preceding paragraph, (A) any Subsidiary may
consolidate with, merge into or transfer all or part of its properties and assets to the Company or another Subsidiary and (B) the Company may merge with an Affiliate that has no significant assets or liabilities and was formed solely for the
purpose of (i) changing

  

 27 

 
the Company’s jurisdiction of organization to another state of the United States and (ii) converting the Company to a corporation in connection with a Public Sale, provided that
the surviving entity assumes, pursuant to agreements reasonably satisfactory to the Required Holder(s), the due and punctual performance and observance of every covenant contained in this Agreement and the other Transaction Documents to be performed
or observed on the part of the Company. 
 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise,
in a single transaction or series of transactions) of all or substantially all the properties and assets of one or more Subsidiaries the Capital Stock of which constitute all or substantially all the properties and assets of the Company shall be
deemed to be the transfer of all or substantially all the properties and assets of the Company. 
 In connection with any
consolidation, merger, transfer, lease or other disposition contemplated hereby, the Company shall deliver, or cause to be delivered, to each Holder, in form and substance reasonably satisfactory to the Holders, an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, transfer, lease or other disposition and the agreements required to be delivered with respect thereto comply with the requirements of this Agreement. 
 Upon any consolidation or merger of the Company or any transfer of all or substantially all of the assets of the Company in accordance with
the foregoing in which the Company is not the Surviving Person, the Surviving Person shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Agreement and the other Transaction Documents with the
same effect as if such successor corporation had been named as the Company therein. 
 6F. Limitations on Line of Business.
The Company shall not, and shall not permit any Subsidiary to, engage in any business or conduct any operations other than a Related Business. 
 6G. Asset Sales. (1) The Company shall not, and shall not cause or permit any Subsidiary to, directly or indirectly, make any Asset Sale, unless: 
 (a) the Company or such Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal
to the Fair Market Value of the assets sold or otherwise disposed of (as determined by the Company’s Board of Directors (or a committee thereof) and evidenced by a Board Resolution), and 
 (b) at least 75% of such consideration consists of (i) cash or Cash Equivalents, (ii) properties and capital assets
to be used in a Related Business, (iii) Capital Stock in a Person engaged in a Related Business that will become a Subsidiary as a result of such Asset Sale or (iv) a combination of cash, Cash Equivalents and such assets. 
 (2) The amount of any (a) balance sheet liabilities of the Company or any Subsidiary that is actually assumed by the
transferee in such Asset Sale and from which the

  

 28 

 
Company and the Subsidiaries are fully and unconditionally released shall be deemed to be cash for purposes of determining the percentage of the consideration received by the Company or the
Subsidiaries in cash or Cash Equivalents and (b) notes, securities or other similar obligations received by the Company or the Subsidiaries from such transferee that are immediately converted, sold or exchanged (or are converted, sold or
exchanged within ninety (90) days of the related Asset Sale) by the Company or the Subsidiaries into cash or Cash Equivalents or other assets of the type referred to in clause (ii) or (iii) of Paragraph 6G(1)(b) shall be deemed
to be cash, in an amount equal to the net cash proceeds or the Fair Market Value of the Cash Equivalents or other assets of the type referred to in clause (ii) or (iii) of Paragraph 6G(1)(b) realized upon such conversion, sale or
exchange for purposes of determining the percentage of the consideration received by the Company or the Subsidiaries in cash or Cash Equivalents. 
 (3) If at any time any non-cash consideration received by the Company or any Subsidiary, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash
(other than interest received with respect to any such non-cash consideration), then such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with the
provisions of this covenant. 
 (4) The 75% limitation in Paragraph 6G(1)(b) will not apply to any Asset
Sale in which the cash or Cash Equivalents received therefrom, determined in accordance with the second preceding paragraph, are equal to or greater than the after-tax cash and Cash Equivalents that would have been received therefrom had such
provision applied. 
 (5) The Company or such Subsidiary, as the case may be, may apply an amount equal to the
Net Cash Proceeds of any Asset Sale within 365 days of receipt thereof to: 
 (a) repay Indebtedness; or

 (b) make an investment in or expenditures for properties or capital assets to be used in a Related Business or
make an Investment in any Person engaged in a Related Business that, as a result of or in connection with such Investment, becomes a Subsidiary. 
 During any period when any Subordinated Notes or Senior Discount Notes are outstanding, to the extent all or part of the Net Cash Proceeds of any Asset Sale are not applied within 365 days of such Asset
Sale as described in clause (1) or (2) (such Net Cash Proceeds, the “Unutilized Net Cash Proceeds”), the Company shall apply such Unutilized Net Cash Proceeds as required by the Subordinated Note Indenture and the Senior
Discount Note Indenture, as in effect on the Closing Date. 
 6H. Amendments. The Company shall not amend, supplement,
modify or otherwise alter the Agreement and Plan of Merger, in each case, in any manner which could reasonably be expected to have a Material Adverse Effect or otherwise be adverse in any material respect to the Holders. 
  

 29 

 6I. Senior Ranking of Preferred Units. The Company shall not issue or create any
Disqualified Capital Stock or any other equity security or interest which ranks pari passu with or has priority over the Preferred Units as to dividends, liquidation rights or otherwise or is in any way senior in right of payment to the
Preferred Units. 
 6J. Fiscal Year. The Company shall not, and shall not permit any Subsidiary to, change its fiscal
year end from December 31. 
 6K. Holding Company. The Company shall not, and shall not permit any of its
Subsidiaries (other than Language Line and its Subsidiaries) to, engage in any business other than that directly incidental to being a holding company without any independent operations; provided that the Company and its Subsidiaries shall be
permitted to incur, create, assume, or suffer to exist Indebtedness that is permitted by the terms of Paragraph 6A and to make and hold Investments in the Company or such Subsidiary’s Subsidiaries. 
 7. EVENTS OF DEFAULT. 
 7A. Redemption Following Event of Default. If any of the following events shall occur and be continuing for any reason whatsoever (and whether such occurrence shall be voluntary or involuntary or come about or be effected by
operation of law or otherwise): 
 (i) the Company fails to pay when due (a) any amount required to be paid
by it with respect to the Preferred Units or (b) otherwise under this Agreement and, in either case, such failure continues for two Business Days; or 
 (ii) the Company or any Subsidiary defaults, whether as primary obligor or as guarantor or other surety, in any payment of principal at stated maturity of any Indebtedness beyond any period of grace
provided with respect thereto, or the Company or any Subsidiary fails to perform or observe any other agreement, term or condition contained in any agreement under which any such Indebtedness or Preferred Capital Stock is created or governed (or if
any other event thereunder or under any such agreement shall occur and be continuing) and the effect of such failure or other event is to cause, or the holder or holders of such obligation (or a trustee on behalf of such holder or holders) has
caused, such obligation to become due (or to be repurchased by the Company or any Subsidiary) prior to any stated maturity, provided that the aggregate amount of all obligations as to which such a payment default shall occur and be continuing
or such a failure or other event causing acceleration (or resale to the Company or any Subsidiary) shall occur and be continuing exceeds $15,000,000; or 
 (iii) any representation or warranty made by the Company or any Subsidiary herein or in any other Transaction Document or by the Company or any of its or their officers in any writing furnished in
connection with or pursuant to this Agreement or any other Transaction Document that is qualified by Material Adverse Effect or materiality shall be false, or any such representation or warranty that is not so qualified shall be false in any
material respect, on the date as of which made; or 
 (iv) the Company fails to perform or observe any agreement
contained in Paragraphs 4, 5A(1), 5A(2), 5A(3) or 6; or 
  

 30 

 (v) the Company fails to perform or observe any other agreement, term or
condition contained herein or in any other Transaction Document and such failure shall not be remedied within 60 days after any Responsible Officer obtains actual knowledge thereof; or 
 (vi)(1) the Company or any of its Significant Subsidiaries commences a voluntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or any other case or proceeding to be adjudicated a bankrupt or insolvent; or 
 (2) the Company or any of its Significant Subsidiaries consents to the entry of a decree or order for relief in respect of the Company or any of its Significant Subsidiaries in an involuntary case or
proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against the Company or any of its Significant Subsidiaries; or

 (3) the Company or any of its Significant Subsidiaries files a petition or answer or consent seeking
reorganization or relief under any applicable federal or state law; or 
 (4) the Company or any of its
Significant Subsidiaries consents to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or any of its Significant
Subsidiaries or of any substantial part of their property; 
 (5) the Company or any of its Significant
Subsidiaries makes an assignment for the benefit of creditors; or 
 (6) the Company or any of its Significant
Subsidiaries admits in writing its inability to pay its debts generally as they become due; or 
 (7) the Company
or any of its Significant Subsidiaries takes corporate action in furtherance of any such action; or 
 (vii) a
court having jurisdiction in the premises enters (1) a decree or order for relief in respect of the Company or any of its Significant Subsidiaries in an involuntary case or proceeding under any applicable federal or state bankruptcy,
insolvency, reorganization or other similar law or (2) a decree or order adjudging the Company or any of its Significant Subsidiaries a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company or any of its Significant Subsidiaries under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of
the Company or any of its Significant Subsidiaries or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or any such other decree or order
un-stayed and in effect for a period 90 consecutive days; 
  

 31 

 (viii) the rendering of a final judgment (not subject to appeal and not
covered by insurance) against the Company or any of its Subsidiaries in an amount greater than $15,000,000 which remain unpaid, undischarged or unstayed for a period of 60 days after the date on which the right to appeal has expired; or 

(ix) the Call Agreement or any provision thereof shall cease to be in full force and effect with respect to ABRY (unless
such Agreement has terminated in accordance with its terms), or ABRY shall deny or disaffirm ABRY’s obligations under the Call Agreement; ABRY shall default in the payment when due of any amounts payable by it pursuant to the Call Agreement;
any representation, warranty or statement made by ABRY in the Call Agreement shall prove untrue in any material respect; or ABRY shall default in the due performance or observance of any term, covenant or agreement (1) contained in
Section 5(b) of the Call Agreement or (2) contained in any other section of the Call Agreement and such default shall continue unremedied for a period of thirty (30) days after the earlier of ABRY obtaining knowledge thereof and
notice thereof to ABRY by any Beneficiary (as that term is defined in the Call Agreement); 
 then, if such event (x) is an Event of
Default under Paragraph 7A(i)(a) or (y) is an Event of Default under Paragraph 7A(ii) and the maturity of Indebtedness, if any, outstanding under the Senior Credit Agreement (or, at any time when the term “Senior Credit
Agreement” refers to more than one loan or similar agreement, then the Indebtedness, if any, incurred pursuant to the agreement of such type pursuant to which the greatest amount of non-subordinated secured Indebtedness is then outstanding)
has been accelerated, the Required Holder(s) may, by notice in writing to the Company, require the Company to redeem immediately for cash all outstanding Preferred Units at a price per unit equal to the Liquidation Value (as of the actual redemption
date) of each such Preferred Unit plus the Redemption Amount with respect to each such Preferred Unit; provided, that in the case of an Event of Default under Paragraph 7A(vi) or 7A(vii), all outstanding Preferred Units shall
automatically (without notice or other action) be subject to immediate redemption by the Company at the price per unit immediately set forth above. 
 7B. Other Remedies. If any Event of Default or Default shall occur and be continuing, the Holder of any Preferred Unit may proceed to protect and enforce its rights under this Agreement and the
other Transaction Documents by exercising such remedies as are available to such Holder in respect thereof under applicable law, either by suit in equity or by action at law, or both, whether for specific performance of any covenant or other
agreement contained in this Agreement or in aid of the exercise of any power granted in this Agreement. No remedy conferred in this Agreement upon the Holder of any Preferred Unit is intended to be exclusive of any other remedy, and each and every
such remedy shall be cumulative and shall be in addition to every other remedy conferred herein or now or hereafter existing at law or in equity or by statute or otherwise. 
  

 32 

 8. REPRESENTATIONS AND WARRANTIES. In order to induce the Purchasers to enter into this Agreement and
to purchase the Securities, the Company hereby represents and warrants to each Purchaser as of the date hereof (it being understood that notwithstanding anything to the contrary, the Company and its Subsidiaries will not have consummated the Merger
until the Closing Date) and after giving effect to the Merger: 
 8A. Financial Statements; Financial Condition.

 (1) The unaudited pro forma consolidated balance sheet of Holdings at March 31, 2004 (the “Pro
Forma Balance Sheet”) and the related unaudited pro forma statements of operations for the year ended December 31, 2003 and the three-month period ended March 31, 2004 (collectively, the “Pro Forma Financial
Statements”), copies of which have heretofore been furnished to each Purchaser, have been prepared giving effect to the consummation of the Transactions as if they had occurred on March 31, 2004 in the case of such balance sheet and on
January 1, 2003 in the case of such statements of operations. The Pro Forma Financial Statements (each of which have undergone a Quarterly Review) have been prepared in good faith by Holdings, based on assumptions Holdings believes to be
reasonable, accurately reflect in all material respects all adjustments required to be made to give effect to the Transactions and present fairly in all material respects on a pro forma basis the financial position and results of operations of
Holdings and its Subsidiaries as at and for such dates, assuming that the Transactions had actually occurred at such dates. 
 (2) All financial statements that have been delivered to the Purchasers in connection with this Agreement present fairly in all material respects the financial condition, results of operations and cash
flows of the entities to which they relate as of the dates and for the periods indicated. All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP applied consistently throughout
the periods involved (except as disclosed therein and except that any such un-audited financial statements lack footnote disclosure and normal year-end audit adjustments). 
 (3) Except as set forth in the financial statements delivered pursuant to Paragraph 3P, after giving effect to the
Indebtedness and customary liabilities in respect of transaction expenses incurred in connection with the Transactions, as of the Closing Date, there are no material liabilities of the Transaction Parties of any kind (including, without limitation,
liabilities for taxes, or any long-term leases or unusual forward or long-term commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives) required to be set forth on a
balance sheet or in the notes thereto prepared in accordance with GAAP, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing condition, situation or set of circumstances which is reasonably likely to
result in such a liability. 
 8B. No Change. Since December 31, 2003, after giving effect to the Transactions,
there has been no change, development or event which, individually or when taken together with all other circumstances, changes or events, has had, or could reasonably be expected to have, a Material Adverse Effect. 
 8C. Existence; Compliance with Law. Each of the Company and its Subsidiaries (a) is duly organized and validly existing under
the laws of the jurisdiction of its organization, (b) has full power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to use its corporate name and to own, lease or

  

 33 

 
otherwise hold its properties and assets and to carry on its business as presently conducted other than such franchises, licenses, permits, authorizations and approvals the lack of which,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (c) is duly qualified and in good standing (to the extent such concept is applicable in the applicable jurisdiction) to do business in each
jurisdiction in which the nature of its business or the ownership, leasing or holding of its properties makes such qualification necessary, except such jurisdictions where the failure so to qualify, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all applicable statutes (including the Fair Labor Standards Act, as amended), laws (including Environmental Laws), ordinances, rules, orders, permits
(including Environmental Permits) and regulations of any Governmental Authority or instrumentality, domestic or foreign (including, without limitation, those related to Hazardous Materials and substances), except where noncompliance individually or
in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any written communication from a Governmental Authority that alleges that the Company, or any of its
Subsidiaries is not in compliance with federal, state, local or foreign laws, ordinances, rules and regulations, except to the extent such noncompliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. 
 8D. Power; Authorization. Each Transaction Party has the power and authority to execute, deliver and perform
each of the Transaction Documents to which it is a party, and the Company has the power and authority and legal right to issue and sell the Securities hereunder. Each Transaction Party has taken all necessary action to authorize the execution,
delivery and performance of each of the Transaction Documents to which it is or will be a party and the Company has taken all necessary action to authorize the issuance and sale of the Securities hereunder. No consent or authorization of, or filing
with, any Person (including, without limitation, any Governmental Authority) is required in connection with the execution, delivery or performance by any Transaction Party, or for the validity or enforceability in accordance with its terms against
any Transaction Party, of any Transaction Document except for (i) consents, authorizations and filings which have been obtained or made and are in full force and effect and (ii) such consents, authorizations and filings which the failure
to obtain or perform, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 8E. Enforceable Obligations. This Agreement has been, and each of the other Transaction Documents will be, duly executed and delivered on behalf of each Transaction Party that is party thereto. This Agreement constitutes, and each of
the other Transaction Documents will constitute upon execution and delivery thereof, the legal, valid and binding obligation of each Transaction Party that is party thereto, and is enforceable against each Transaction Party that is party thereto in
accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law). 
 8F. No Legal Bar. None of the execution, delivery or performance by
each Transaction Party of each Transaction Document to which it is a party and the incurrence and use of the proceeds of the Securities and the issuance of the Securities hereunder (a) will violate in any material respect any Requirements of
Law or any Contractual Obligation applicable to or

  

 34 

 
binding upon such Transaction Party or any of their respective Subsidiaries or any of their respective properties or assets, or (b) will result in the creation or imposition of any Lien on
any of its properties or assets pursuant to any Requirements of Law applicable to it, as the case may be, or any of its Contractual Obligations, except for Permitted Liens. 
 8G. No Material Litigation. Except as disclosed in Schedule 8G, there is no pending or, to the knowledge of any Transaction
Party, threatened claim, legal action, arbitration or other legal, governmental, administrative or tax proceeding or any order, complaint, decree or judgment involving or affecting the Transactions, Holdings or any of its Subsidiaries or any of
their respective properties, assets, operations or businesses which have had, or are reasonably likely to have, a Material Adverse Effect. 
 8H. Investment Company Act. No Transaction Party is an “investment company” or a company “controlled” by an “investment company” (as each of the quoted terms is
defined or used in the Investment Company Act of 1940, as amended) that is required to be registered under such Act. 
 8I. Federal Regulation. The proceeds of the issuance of the Securities hereunder will not be used for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms
under Regulation U as now and from time to time hereafter in effect or for any purpose that violates the provisions of the regulations of the Board. Following application of the proceeds of the issuance of the proceeds hereunder, not more than
25 percent of the value of the assets of any Transaction Party will be Margin Stock (as defined in Regulation U). No Transaction Party or any of their respective Subsidiaries is a “holding company”, or an “affiliate” of a
“holding company” or a “subsidiary company” of a “holding company”, within the meaning of the United States Public Utility Holding Company Act of 1935, as amended. No Transaction Party is subject to regulation under any
law or regulation which limits its ability to incur Indebtedness, other than Regulation X of the Board. Neither the Company nor any agent acting on its behalf has taken or will take any action which might cause this Agreement or the Securities
to violate Regulation T, Regulation U, Regulation X or any other regulation of the Board of Governors of the Federal Reserve System or to violate the Exchange Act, in each case as in effect now or as the same may hereafter be in effect. 

8J. No Default. Each of the Company and its Subsidiaries have performed all material obligations required to be performed by them
under their respective Contractual Obligations (including after giving effect to the Transactions) and they are not (with or without the lapse of time or the giving of notice, or both) in breach or default in any respect thereunder, except to the
extent that such breach or default, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries (including after giving effect to the Transactions) is in
default under any material judgment, order or decree of any Governmental Authority, domestic or foreign, applicable to it or any of its respective properties, assets, operations or business, except to the extent that any such defaults could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 8K. Taxes. Each of the
Company and its Subsidiaries (including after giving effect to the Transactions) (i) has timely filed or caused to be timely filed all tax returns, statements,

  

 35 

 
forms and reports (domestic or foreign) which are required to be filed (and all such tax returns were true and correct in all material respects when and as filed) and (ii) has timely paid
all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than with respect
to any taxes (x) the amount of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves (or other sufficient provisions) in conformity with GAAP have been provided on the books of the
Company or one of its Subsidiaries (including after giving effect to the Transactions), as the case may be, and (y) which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect). Neither the
Company nor any of its Subsidiaries is a party to any understanding or arrangement constituting a “tax shelter” within the meaning of Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or has
“participated” in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4 with regard to any taxable period for which the applicable statute of limitations has not yet expired. 
 8L. Subsidiaries. The legal names of each of the Subsidiaries of the Company, their respective jurisdictions of organization, the
number of units of each class of its Capital Stock authorized and the number outstanding and the number of units covered by all outstanding options, warrants, rights of conversion or purchase and similar rights, and their equity holders, in each
case, as of the Closing Date are, in each case, accurately as set forth on Schedule 8L. All Capital Stock of each Subsidiary of the Company (i) that is a corporation is duly and validly issued and is fully paid and non-assessable and
(ii) that is a limited liability company is duly and validly issued without any obligation to make additional capital contributions and in each case, is owned, of record and beneficially, by the Company, directly or indirectly. 

 8M. Ownership of Property; Liens. As of the Closing Date, each of the Company and its Subsidiaries has good and
valid title (or, in the case of licensed Intellectual Property, a valid license) to all of its material assets necessary for the conduct of its business, in each case free and clear of all Liens except Permitted Liens. With respect to each Real
Property leased by the Company and its Subsidiaries listed on Schedule 8M, as of the Closing Date, each of the Company or its applicable Subsidiary has a valid and enforceable leasehold interests in the leasehold estates in all of the real
property leased by it that is used in the operations, or the business, of the Transaction Parties and their Subsidiaries, which leased real property is listed on Schedule 8M under the heading “Leased Properties” (each, a
“Leased Property”), in each case, free and clear of all Liens of any nature whatsoever, except the terms and provisions of the respective lease therefor, including, without limitation, the matters set forth on Schedule 8M,
and any matters affecting the fee title and any estate superior to the leasehold estate related thereto. The Leased Properties constitute, as of the Closing Date, all of the material real property owned in fee or leased by the Company and its
Subsidiaries and used or held for use by the Company and its Subsidiaries. No Transaction Party has received notice of pending condemnation or similar proceedings affecting any of the Real Property and to each Transaction Party’s knowledge no
such action is currently contemplated or threatened. 
 8N. ERISA. (1) No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The

  

 36 

 
present value of all accumulated benefit obligations of all underfunded Pension Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did
not, as of the date of the most recent financial statements reflecting such amounts, exceed by an amount that could reasonably be expected to have a Material Adverse Effect the fair market value of the assets of all such underfunded Pension Plans.
Each ERISA Entity is in compliance in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Employee Benefit Plan, except to the extent any noncompliance could not reasonably be expected to have a
Material Adverse Effect. Using actuarial assumptions and computation methods consistent with subpart 1 of subtitle E of Title IV of ERISA, the aggregate liabilities of each ERISA Entity to all Multiemployer Plans in the event of a complete
withdrawal therefrom, as of the close of the most recent fiscal year of each such Multiemployer Plan, would not reasonably be expected to result in a Material Adverse Effect. 
 (2) Neither the Company nor any of its Subsidiaries maintains or contributes to any benefit plan, program, policy, arrangement or agreement
with respect to employees (or former employees) employed outside the United States under which the Company or any of its Subsidiaries could incur any liability that could reasonably be expected to have a Material Adverse Effect. 
 (3) The execution and delivery of this Agreement and the issuance and sale of the Securities will be exempt from, or will not involve any
transaction which is subject to, the prohibitions of Section 406 of ERISA and will not involve any transaction in connection with which a penalty could be imposed under Section 502(i) of ERISA or a tax could be imposed pursuant to
Section 4975 of the Code. 
 8O. Copyrights, Patents, Permits, Trademarks and Licenses. Schedule 8O sets
forth a true and complete list as of the Closing Date after giving effect to the Transactions of all registered Intellectual Property owned by the Company or any of its Subsidiaries, and, with respect to registered trademarks (if any), contains a
list of all jurisdictions in which such trademarks are registered or applied for and all registration and application numbers. Except as disclosed in Schedule 8O, as of the Closing Date after giving effect to the Transactions, the
Company or one of its Subsidiaries will own or have the right to use the Intellectual Property and applications therefor referred to in such Schedule. Except as disclosed in Schedule 8O, no claims are pending by any Person with respect
to the ownership, validity, enforceability or of the Company’s or any of its Subsidiary’s use of such Intellectual Property or applications therefor, challenging or questioning the validity or effectiveness of any of the foregoing, in any
jurisdiction, domestic or foreign, except to the extent such claims, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 8P. Environmental Matters. Except insofar as any exceptions to the following, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect: 

(1) the properties owned, leased or otherwise operated by the Company or any of its Subsidiaries do not contain, and have
not previously contained, therein, thereon or thereunder, including, without limitation, the soil and groundwater thereunder, any Hazardous Materials in amounts or concentrations that constitute a violation of, or could reasonably be expected to
give rise to liability under, Environmental Laws; 
  

 37 

 (2) there are no facts, circumstances or conditions that could reasonably be
expected to (i) result in a violation of any Environmental Laws by the Company or any of its Subsidiaries that could interfere with the continued operation of, or impair the otherwise fair saleable value of the properties owned, leased or
otherwise operated by the Company or any of its Subsidiaries or (ii) result in a violation of or otherwise give rise to liability on the part of the Company or any of its Subsidiaries under any Environmental Laws in respect of Hazardous
Materials; 
 (3) neither the Company nor any of its Subsidiaries has received or is aware of any complaint,
notice of violation, alleged violation or notice of investigation or of potential liability under Environmental Laws with regard to the Company or any of its Subsidiaries, or any properties owned, leased or otherwise operated by any of them, nor
does the Company or any of its Subsidiaries have knowledge that any such action is being threatened; 
 (4) there
are no administrative actions or judicial proceedings pending or, to the knowledge of any Transaction Party, threatened under any Environmental Laws to which the Company or any of its Subsidiaries is or could reasonably be expected to be a party,
nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders or agreements to which the Company or any of its Subsidiaries is a party which could reasonably be expected to result in liability or costs on
the part of the Company or any of its Subsidiaries under any Environmental Law; 
 (5) no Lien has been recorded
or, to the knowledge of any Transaction Party, threatened under any Environmental Laws with respect to any Fee Property or assets of the Company or any of its Subsidiaries and no Lien has been asserted or, to the knowledge of any Transaction Party,
threatened under any Environmental Laws with respect to any other Real Property of the Company or any of its Subsidiaries that could reasonably be expected to result in liability or costs on the part of the Company or any of its Subsidiaries under
any Environmental Law; 
 (6) no Fee Property is (x) listed or proposed for listing on the National
Priorities List promulgated pursuant to the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or (y) listed on the Comprehensive Environmental Response,
Compensation and Liability Information System List promulgated pursuant to CERCLA, or (z) included on any similar list maintained by any Governmental Authority and there is no such listing or proposed listing with respect to any other Real
Property of the Company or any of its Subsidiaries that could reasonably be expected to result in liability or costs on the part of the Company or any of its Subsidiaries under any Environmental Law; and 
 (7) neither the Company nor any of its Subsidiaries is required to take or finance any investigatory, response or other
corrective action or is currently conducting any investigatory, response or other corrective action pursuant to any Environmental Laws at any Real Property or at any other location, nor has any of the Company or any of

  

 38 

 
its Subsidiaries assumed by contract, agreement or operation of law any obligation of any other Person under any Environmental Law. 
 8Q. Accuracy and Completeness of Information. Neither this Agreement nor any other document, certificate or statement furnished to
any Purchaser by or on behalf of the Company or any Subsidiary in connection herewith contains any untrue statement of a material fact or, taken together with all other such documents, certificates and statements, omits to state a material fact
necessary in order to make the statements contained herein and therein not misleading at the time so furnished in light of the circumstances under which such information was furnished; provided that with respect to projections provided by or
on behalf of the Company or any Subsidiary to any Purchaser or any other Holder, the Company only represents that such projections are based on good faith estimates and assumptions believed by the Company to be reasonable at the time made. There is
no fact or facts known by the Company or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect or that would be material to an understanding of the business, property, assets, financial condition or prospects of
the Company or any of its Subsidiaries and which has not been set forth in this Agreement or in the other documents, certificates and statements furnished to each Purchaser by or on behalf of the Company prior to the date hereof in connection with
the transactions contemplated hereby.  
 8R. Labor Matters. Neither the Company nor any of its Subsidiaries is
engaged in any unfair labor practice. There is (i) no unfair labor practice complaint pending against the Company or any of its Subsidiaries or, to the knowledge of any Transaction Party, threatened against the Company or any of its
Subsidiaries, before the National Labor Relations Board or any other Governmental Authority, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against the Company or any of its
Subsidiaries or, to the knowledge of any Transaction Party after due inquiry, threatened against the Company or any of its Subsidiaries, (ii) no strike, labor dispute, slowdown or stoppage pending against the Company or any of its Subsidiaries
or, to the knowledge of any Transaction Party, after due inquiry, threatened against the Company or any of its Subsidiaries and (iii) to the best knowledge of any Transaction Party after due inquiry, no union representation question existing
with respect to the employees of the Company or any of its Subsidiaries and, to the knowledge of any Transaction Party, no union organizing activities are taking place, except such as could not, with respect to any matter specified in
clause (i), (ii) or (iii) above, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company and its Subsidiaries have paid to their respective employees all minimum and overtime wages
required by law to be paid to their respective employees. 
 8S. Solvency. Immediately before and after the
consummation of the Transactions, each Transaction Party will be Solvent. 
 8T. Use of Proceeds. The Company will use
the proceeds of the Securities, solely to finance the Merger and to pay related fees and expenses. 
 8U. Certain
Documents. (1) Schedule 8U(1) lists each material agreement, certificate, instrument, letter or other document entered into, executed or delivered or to become effective in connection with the Senior Credit Agreement (collectively,
the “Material Credit

  

 39 

 
Documents”); (2) Schedule 8U(2) lists each material agreement, certificate, instrument, letter or other document entered into, executed or delivered or to become effective
in connection with the Subordinated Note Indenture and the Senior Discount Note Indenture (collectively, the “Material Subordinated Note Documents”); (3) Schedule 8U(3) lists each material agreement, certificate,
instrument, letter or other document entered into, executed or delivered or to become effective in connection with the Agreement and Plan of Merger (collectively, the “Material Acquisition Documents”); and
(4) Schedule 8U(4) lists each material agreement, certificate, instrument, letter or other document entered into, executed or delivered or to become effective in connection with the capitalization of the Company (collectively,
the “Material Equity Documents”). 
 8V. Capitalization. (1) The authorized Capital Stock of each
of Acquisition Co. and Language Line consists of 1,000 shares of Common Stock, in each case, 1,000 of which are outstanding. All such outstanding shares of Common Stock have been duly and validly issued, are fully paid and non-assessable and are
free of preemptive rights. As of the date hereof, Acquisition Co. has no outstanding securities convertible into or exchangeable for its capital stock or outstanding any rights to subscribe for or to purchase, or any options for the purchase of, or
any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating to, its capital stock. 
 (2) An accurate organizational chart, showing the ownership structure of the Company and its Subsidiaries on the Closing Date, and after giving effect to the Transactions, is set forth on Schedule
8V(2). 
 (3) Immediately after giving effect to the transactions contemplated by the Transaction Documents, (i) the
authorized and issued Capital Stock of the Company will consist of (a) an unlimited number of authorized Common Units (as defined in the LLC Agreement), 140,727,272 of which will be issued and outstanding, (b) an unlimited number of
authorized Class D Common Units, 5,090,909 of which will be issued and outstanding and (c) an unlimited number of authorized Preferred Units, 82,000,000 of which will be issued and outstanding, (ii) except as described in reasonable detail
in Schedule 8V, there are no other options for, rights to acquire, agreements to issue, or securities exercisable for or convertible into Capital Stock of the Company. Schedule 8V hereto sets forth, as of the date hereof after giving
effect to the transactions contemplated by the Transaction Documents, a true and complete list of all members of the Company and its Subsidiaries and the number and class of Capital Stock held by each as well as the capital account interests of each
member and each member’s percent of total voting interests. The Preferred Units and the Common Units have been duly authorized and issued and are free of any preemptive or similar rights of members. The offer and sale of all of the securities
listed on Schedule 8V or as contemplated by this Agreement, the Members Agreement, the Registration Rights Agreement or the LLC Agreement issued on or prior to the Closing Date complied with or were exempt from all applicable federal and
state securities laws and there are no rights of rescission or damages with respect thereto. Except as described in reasonable detail in Schedule 8V, (X) the Company is not subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any Capital Stock or any convertible securities, rights, options or warrants, (Y) the Company is not a party to any agreement granting registration rights to any person with respect to any of its equity
or debt securities, and (Z) the Company is not a party to, and it has no knowledge of, any agreement restricting the voting or transfer of any Capital Stock of the Company. 
  

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 8W. Indebtedness. Schedule 8W sets forth a true and complete list of all
Existing Indebtedness, in each case showing the aggregate principal amount thereof and the name of the respective borrower and any other entity which directly or indirectly guaranteed such debt. 
 8X. Anti-Terrorism Laws. (1) None of the Company, any of its Subsidiaries or any of their respective Affiliates is in violation
of any laws relating to terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), and the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. 
 (2) None of the Company, its Subsidiaries or any of their respective Affiliates or their respective brokers or other agents acting or benefiting in any capacity in connection with the sale of the
Securities is any of the following: 
 (i) a Person or entity that is listed in the annex to, or is otherwise
subject to the provisions of, the Executive Order; 
 (ii) a Person or entity owned or controlled by, or acting
for or on behalf of, any Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; 
 (iii) a Person or entity with which any Holder is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; 
 (iv) a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order; or 
 (v) a Person or entity that is named as a “specially designated national and blocked
person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website or any replacement website or other replacement official publication of such list.

 (3) None of the Company or any of its Subsidiaries or, to the knowledge of the Company, any of their respective brokers or
other agents acting in any capacity in connection with the Securities (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in clause (b)
above, (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (iii) engages in or conspires to engage in any transaction that evades or avoids,
or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 
 (4) Neither the sale of the Securities by the Company hereunder nor its use of the proceeds thereof will violate any Anti-Terrorism Law or the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. 
  

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 8Y. Offering of Securities. Neither the Company nor any agent acting on its behalf
has, directly or indirectly, offered the Securities or any similar security of the Company for sale to, or solicited any offers to buy the Securities or any similar security of the Company from, or otherwise approached or negotiated with respect
thereto with, any Person other than institutional investors, and neither the Company nor any agent acting on its behalf has taken or will take any action which would subject the issuance or sale of the Securities to the provisions of Section 5
of the Securities Act or to the provisions of any securities or Blue Sky law of any applicable jurisdiction. 
 8Z.
Agreements with Affiliates. Except for agreements or arrangements with Affiliates wherein the Company or one or more of its Subsidiaries provides services to such Affiliates for fair consideration or which are set forth on Schedule 6D(h)
attached hereto or which are otherwise in compliance with Paragraph 6D, neither the Company nor any of its Subsidiaries has (i) any written agreements or binding arrangements of any kind with any Affiliate or (ii) any management or
consulting agreements of any kind with any Affiliate, in each case, other than any such agreement or arrangement solely among or between the Company and/or any of its Subsidiaries between the Company and its Subsidiaries. 
 8AA. Other Agreements. As of the Closing Date, all conditions precedent to the effectiveness of the Agreement and Plan of Merger, the
Senior Credit Agreement, the Subordinated Note Indenture and the Senior Discount Note Indenture, in each case, as set forth therein, have been satisfied or waived (provided that any waiver of a material condition shall have been disclosed to
each Purchaser and consented to by each Purchaser) and each such agreement is in full force and effect. 
 9. REPRESENTATIONS OF EACH
PURCHASER. Each Purchaser represents that such Purchaser (A) is not acquiring the Securities to be purchased by it hereunder with a view to or for sale in connection with any distribution thereof within the meaning of the Securities Act,
provided that the disposition of such Purchaser’s property shall at all times be and remain within its control; (B) has had an opportunity to discuss the Company’s business management and financial affairs with its management
and the opportunity to ask questions and receive answers from the Company concerning the terms and conditions of the issuance of Securities contemplated by this Agreement; (C) understands that the Securities have not been registered under the
Securities Act and, therefore, cannot be resold unless they are registered under the Securities Act or unless an exemption from registration is available; and (D) is an “accredited investor” as such term is defined in Rule 501(a)
promulgated under the Securities Act. 
 10. DEFINITIONS; ACCOUNTING MATTERS. For the purpose of this Agreement, the terms defined in
Paragraph 10A (or within the text of any other Paragraph) shall have the respective meanings specified therein and all accounting matters shall be subject to determination as provided in Paragraph 10B. 
 10A. Terms. 
 “ABRY” shall mean ABRY Partners IV, L.P., a Delaware limited partnership. 
  

 42 

 “ABRY Subordinated Indebtedness” shall mean Indebtedness of the Company or
any of its Subsidiaries (other than Language Line and its Subsidiaries) (a) that is owed, directly or indirectly, to ABRY and/or any of its Controlled Investment Affiliates (other than any Subsidiary of Acquisition Co) and/or other Persons
(solely in respect of preemptive or similar rights, if any, granted to such other Persons), (b) that shall provide that (i) no payments of principal (or premium, if any) or interest on or otherwise due in respect of such Indebtedness may
be permitted for so long as any Default or Event of Default exists and (ii) no payments in respect of interest (other than the payment of interest when the principal is repaid or converted into Qualified Capital Stock (which is not Preferred
Capital Stock) of the Company), premium or other amounts (other than principal) shall be payable in securities or instruments of the Company or any of its Subsidiaries, cash or other property and (c) that shall automatically convert into
Qualified Capital Stock (which is not Preferred Capital Stock) of the Company (i) on the date that is 18 months after the issuance thereof, (ii) upon the bankruptcy or insolvency of the Company or any of its Subsidiaries and
(iii) upon the occurrence of any Event of Default permitting the Holders of Preferred Units to require the Company to redeem the Preferred Units pursuant to Paragraph 7A, in each case, unless earlier repaid or refinanced in accordance
with the other terms of this Agreement. 
 “Acceptance” shall have the meaning given in Paragraph 4B(3).

 “Acquired Business” shall have the meaning given in definition of “Related Business” contained
herein. 
 “Acquired Indebtedness” shall mean Indebtedness of a Person (1) assumed in connection with an
Acquisition of such Person or (2) existing at the time such Person becomes a Subsidiary or is consolidated with or merged into the Company or any Subsidiary of the Company; provided that such Indebtedness was not Incurred in connection
with, or in contemplation of, such transaction. 
 “Acquired Person” shall mean, with respect to any specified
Person, any other Person which merges with or into or becomes a Subsidiary of such specified Person. 
 “Acquisition” shall mean (1) any capital contribution (by means of transfers of cash or other assets to others or payments for assets or services for the account or use of others, or otherwise) by the Company or any
Subsidiary to any other Person, or any acquisition or purchase of Capital Stock of any other Person by the Company or any Subsidiary, in either case pursuant to which such Person shall become a Subsidiary or shall be consolidated or amalgamated with
or merged into the Company or any Subsidiary or (2) any acquisition by the Company or any Subsidiary of the assets of any Person which constitute substantially all of an operating unit, or line of business of such Person or which is otherwise
outside of the ordinary course of business. 
 “Acquisition Co” shall have the meaning given in Paragraph
3D. 
 “Affiliate” of any specified person shall mean any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative

  

 43 

 
meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. 
 “Affiliate Transaction” shall have the meaning given in Paragraph 6D. 
 “Agreement” shall mean this Securities Purchase Agreement, as amended, supplemented or otherwise modified from time to time
in accordance with the terms hereof. 
 “Agreement and Plan of Merger” shall have the meaning given in
Paragraph 3D. 
 “AMP” means ABRY Mezzanine Partners, L.P., a Delaware limited partnership.

 “Anti-Terrorism Laws” shall have the meaning given in Paragraph 8X(1). 
 “Asset Sale” shall mean any direct or indirect sale, conveyance, transfer, lease (that has the effect of a disposition) or
other disposition (including, without limitation, any merger or consolidation) to any Person other than the Company or a Subsidiary, in one transaction or a series of related transactions, of: 
 (1) any Capital Stock of any Subsidiary (other than directors’ qualifying shares); 
 (2) any assets of the Company or any Subsidiary which constitute substantially all of an operating unit or line of business
of the Company or any Subsidiary; or 
 (3) any other assets (including, without limitation, intellectual
property) or asset of the Company or any Subsidiary outside of the ordinary course of business. 
 For the purposes of this
definition, the term “Asset Sale” shall not include: 
 (A) any transaction consummated in
compliance with Paragraph 6E and the creation of any Lien; 
 (B) sales of property or equipment that, in
the reasonable determination of the Company, has become worn out, obsolete or damaged or otherwise unsuitable for use in connection with the business of the Company or any Subsidiary; 
 (C) any Permitted Investment or Restricted Payment not prohibited by Paragraph 6B; 
 (D) any transaction or series of related transactions involving assets with a Fair Market Value not in excess of $2,000,000;

  

 44 

 (E) sales or other dispositions of Cash Equivalents, inventory, receivables
and other current assets in the ordinary course of business; 
 (F) the sale of assets and subsequent leaseback
of such assets within 90 days of such sale to the extent such lease constitutes a Capital Lease Obligation; 
 (G) condemnations on or the taking by eminent domain of property or assets; 
 (H) the licensing of
intellectual property; and 
 (I) any transaction between the Company and any Subsidiary or by any Subsidiary
with the Company or any Subsidiary in accordance with the terms of this Agreement. 
 “Board of Directors” of
any Person shall mean the board of directors, managers, management committee or other body governing the management and affairs of such Person. 
 “Board Resolution” shall mean, with respect to any Person, a duly adopted resolution of the Board of Directors of such Person. 
 “Business Day” shall mean any day other than a Saturday, Sunday or day on which commercial banking institutions in New
York, New York are authorized or required by law to be closed. 
 “Call Agreement” means the Capital Call
Agreement, dated as of the date hereof, among ABRY, the Company, Holdings II, Merrill, New York Life Capital Partners, and AMP, as amended restated or otherwise modified from time to time. 
 “Capital Lease Obligation” shall mean, at the time any determination thereof is to be made, the amount of the liability in
respect of a lease that would at such time be required to be capitalized on a balance sheet prepared in accordance with GAAP. 
 “Capital Stock” in any Person shall mean any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) corporate stock or other equity
participations, including partnership interests, whether general or limited, and membership interests in such Person, including any Preferred Capital Stock and any right or interest which is classified as equity in accordance with GAAP. 

“Cash Equivalents” shall mean: 
 (1) marketable direct obligations issued by, or unconditionally guaranteed by, the United States government or issued by any
agency or instrumentality thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof; 
  

 45 

 (2) marketable direct obligations issued by any state of the United States
of America or by the District of Columbia maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s; 
 (3) commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having
one of the two highest ratings obtainable from either S&P or Moody’s; 
 (4) investments in time deposit
accounts, term deposit accounts, money market deposit accounts, certificates of deposit or bankers’ acceptances maturing within one year from the date of acquisition thereof issued by (a) any bank organized under the laws of the United
States of America or any state thereof or the District of Columbia having at the date of acquisition thereof combined capital and surplus of not less than $500,000,000, (b) any lender party to the Senior Credit Agreement, or (c) Brown
Brothers Harriman; 
 (5) repurchase obligations with a term of not more than 30 days for underlying securities
of the types described in clause (1) above entered into with any bank meeting the qualifications specified in clause (4) above; and 
 (6) investments in money market funds which invest substantially all their assets in securities of the types described in any of clauses (1) through (5) above. 
 “CERCLA” shall have the meaning given in Paragraph 8P(6). 
 “Change of Control” shall mean the occurrence of any of the following events: 
 (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other
than a Permitted Holder; 
 (2) the consummation of any transaction as a result of which the Permitted Holders
cease to own beneficially (as such term is used in Section 13(d) of the Exchange Act) directly or indirectly at least 51% of the Voting Stock of the Company immediately after such transaction; 
 (3) the Permitted Holders shall not have directly or indirectly the present power (by right to vote Voting Stock of the
Company) to elect a majority of the members of the Board of Directors; 
 (4) Language Line ceases to be a direct
or indirect Wholly Owned Subsidiary of the Company (other than as a result of issuances of equity securities limited to a fixed dollar amount which earn a yield or dividend on such specified amount and do not participate in changes in the underlying
equity value of the issuer of such equity securities); 
  

 46 

 (5) the Permitted Holders cease to possess, directly or indirectly, the
present power to direct or cause the direction of management or policies of the Company, or Language Line, whether through ownership of Capital Stock, by contract or otherwise; 
 (6) the adoption of a plan relating to the liquidation or dissolution of the Company; 
 (7) the board of directors of the Company shall cease to consist of a majority of Continuing Directors; or 
 (8) a “change of control” ( or terms of similar import) shall occur within the meaning of any debt security,
indenture or other agreement evidencing, creating or governing any Indebtedness of the Company or any of its Subsidiaries, permitting the holder of such Indebtedness to accelerate such Indebtedness or to require the issuer of such Indebtedness to
purchase, redeem or repay such Indebtedness prior to its stated maturity or to offer to do so prior to its stated maturity. 
 “CitiCorp Credit Agreement” means that certain Term Loan and Line of Credit Agreement, dated as of the date hereof, among Holdings II and CitiCorp USA, Inc., as the same may from time to time be amended, amended and
restated, supplemented, restated or otherwise modified from time to time. 
 “Class D Common Units” shall have
the meaning given in the LLC Agreement. 
 “Class D Unit Shares” shall have the meaning given in the definition
of “Liquidity Initial Public Offering”. 
 “Closing Date” shall have the meaning given in
Paragraph 2. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 “Common Units” shall have the meaning given in Paragraph 1. 
 “Company” shall have the meaning given in the introductory Paragraph hereof. 
 “Company Financial Statements” shall have the meaning given in Paragraph 3P. 
 “Complete Exit Event” shall mean the occurrence of either a Liquidity Company Sale or a Liquidity Initial Public Offering.

 “Consolidated Cash Flow” shall mean, for any period, Consolidated Net Income of the Company and its
Subsidiaries for such period, plus, without duplication and to the extent reflected in Consolidated Net Income of the Company for such period, the sum of: 
 (1) an amount equal to any extraordinary loss plus any net loss realized by the Company or any of its Subsidiaries in
connection with (a) an Asset Sale or (b) the

  

 47 

 
disposition of any securities by the Company or any of its Subsidiaries outside the ordinary course of business or the extinguishment of any Indebtedness of the Company or any of its
Subsidiaries, to the extent such losses were deducted in computing such Consolidated Net Income; plus 
 (2) provision for franchise taxes and taxes based on income or profits of the Company and the Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus

 (3) Consolidated Interest Expense of the Company and the Subsidiaries for such period, whether paid or accrued
and whether or not capitalized (including, without limitation, amortization of debt issuance costs and original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, imputed interest, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or
received pursuant to Hedging Obligations), to the extent that any such expense was deducted in computing such Consolidated Net Income; plus 
 (4) depreciation, amortization (including amortization of goodwill and other intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period), non-cash impairment charges
and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of the
Company and the Subsidiaries for such period to the extent that such depreciation, amortization and other non-cash expenses were deducted in computing such Consolidated Net Income; plus 
 (5) any extraordinary or unusual expenses of the Company and the Subsidiaries for such period to the extent that such charges
were deducted in computing such Consolidated Net Income; plus 
 (6) any non-capitalized transaction costs
incurred in connection with actual or proposed financings, acquisitions or transactions; minus 
 (7)
non-cash items increasing such Consolidated Net Income for such period, other than the accrual of revenue in the ordinary course of business, and any reversal of a reserve to the extent increasing such Consolidated Net Income, minus

 (8) an amount equal to any extraordinary gains plus any net gains realized by the Company or any of its
Subsidiaries in connection with (a) an Asset Sale or (b) the disposition of any securities by the Company or any of its Subsidiaries outside the ordinary course of business or the extinguishment of any Indebtedness of the Company or any of
its Subsidiaries, to the extent such gains were included in computing such Consolidated Net Income; 
  

 48 

 in each case, on a consolidated basis and in accordance with GAAP; provided that the cumulative
effect of a change in accounting principles (effected either through cumulative effect adjustment or a retroactive application) shall be excluded. 
 “Consolidated EBITDA” shall have the meaning set forth in the Senior Credit Agreement. 
 “Consolidated Interest Expense” shall mean for any period, the sum, without duplication of: 
 (1) the consolidated interest expense of the Company and its Subsidiaries for such period, whether paid or accrued (including, without limitation, amortization of original issue discount, noncash interest
payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to sale-leaseback transactions, commissions, discounts and other
fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net payments (if any) pursuant to Hedging Obligations) but, for purposes of Paragraph 6B, excluding amortization and write-off of debt
issuance costs; provided that, for purposes of clause (iii)(A)(z) of Paragraph 6B(1), Consolidated Interest Expense shall not include (i) interest relating to ABRY Subordinated Indebtedness that is accrued but unpaid
or that is paid in Qualified Capital Stock (which is not Preferred Capital Stock) of the Company, or (ii) any interest relating to Redeemable Common Equity; 
 (2) the consolidated interest expense of the Company and its Subsidiaries that was capitalized during such period;

 (3) any interest expense on Indebtedness of another Person that is guaranteed by the Company or any of its
Subsidiaries or secured by a Lien on assets of the Company or any of its Subsidiaries (whether or not such guarantee or Lien is called upon); and 
 (4) the product of: 
 (a) all cash dividend payments on any series
of Disqualified Capital Stock of the Company or any Preferred Capital Stock of any of its Subsidiaries, times 
 (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined Federal, state and local statutory tax rate of the Company expressed as a decimal, in each case, on a consolidated basis and
in accordance with GAAP. 
 “Consolidated Leverage Ratio” shall mean, as of any date of determination, the
ratio of (i) the aggregate outstanding amount of Indebtedness (other than ABRY Subordinated Indebtedness and Redeemable Common Equity) of each of the Company and its Subsidiaries as of the date of determination on a consolidated basis in
accordance with GAAP (subject to the terms described in the next paragraph) plus the greater of the aggregate liquidation preference or mandatory redemption obligation of all outstanding Disqualified Capital Stock of the Company

  

 49 

 
and its Subsidiaries and Preferred Capital Stock of its Subsidiaries (except, in each case, Preferred Capital Stock issued to the Company or any of its Subsidiaries) as of the day of
determination to (ii) the Consolidated Cash Flow of the Company and its Subsidiaries for the latest four full fiscal quarters for which financial statements are internally available ending on or prior to the date of determination (the
“Measurement Period”). 
 For purposes of calculating Consolidated Cash Flow for the Measurement Period
immediately prior to the relevant date of determination any one or more of the following that are applicable: 
 (1) any Person that is a Subsidiary on the date of determination (or would become a Subsidiary on such date of determination in connection with the matter that requires the determination of such Consolidated Cash Flow) will be deemed to
have been a Subsidiary at all times during such Measurement Period; 
 (2) any Person that is not a Subsidiary on
such date of determination (or would cease to be a Subsidiary on such date of determination in connection with the matter that requires the determination of such Consolidated Cash Flow) will be deemed not to have been a Subsidiary at any time during
such Measurement Period; and 
 (3) if the Company or any Subsidiary shall have in any manner (x) acquired
(including through an Acquisition or the commencement of activities constituting such operating business) or (y) disposed of (including by way of an Asset Sale or the termination or discontinuance of activities constituting such operating
business) any operating business during such Measurement Period or after the end of such period and on or prior to the relevant date of determination, such calculation will be made on a pro forma basis as if, in the case of an Acquisition or
the commencement of activities constituting such operating business, all such transactions had been consummated on the first day of such Measurement Period and, in the case of an Asset Sale or termination or discontinuance of activities constituting
such operating business, all such transactions had been consummated prior to the first day of such Measurement Period (giving pro forma effect thereto in accordance with Regulation S-X and, except to the extent relating to an Asset Sale of
$20,000,000 or more (whether in one or a series of related transactions), to such other non-recurring costs or expenses and cost reductions relating to the Acquisition, Asset Sale or commencement or termination of activities as are reasonably and in
good faith anticipated to occur within 12 months and within the control of the Company and its Subsidiaries); provided, however, that such pro forma adjustment shall not give effect to the positive cash flow of any Acquired
Person to the extent that such Person’s net income would be excluded pursuant to clause (1) or (2) of the definition Consolidated Net Income. 
 “Consolidated Net Income” shall mean for any period, net income (or loss) of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided
that 
 (1) the net income (but not net loss) of any Person that is not a Subsidiary or that is accounted for by
the equity method of accounting shall not be included except to

  

 50 

 
the extent paid in cash as a dividend or distribution to the Company or (subject to clause (2) below) a Subsidiary, 
 (2) the net income of any Subsidiary shall be excluded to the extent that the declaration or payment of dividends or similar
distributions by that Subsidiary of that net income is prohibited or not permitted at the date of determination, and 
 (3) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of the Company or is merged with or into or consolidated with any of the Company or its Subsidiaries shall be excluded. 
 “Continuing Directors” shall mean, as of the date of determination, any member of the Board of Directors of the Company
who: (1) was a member of such Board of Directors on the Closing Date; (2) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election; or (3) was nominated by one or more of the Permitted Holders. 
 “Contractual Obligation” shall mean, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or undertaking to which such Person is a party or by which it or any of the property
or assets owned by it are bound. 
 “Control Event” shall mean: 
 (1) the execution by the Company or any of its Subsidiaries or Affiliates of any binding agreement with respect to any
proposed transaction or event or series of transactions or events which, individually or in the aggregate, may reasonably be expected to result in a Change of Control, 
 (2) the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change of
Control, or 
 (3) the making of any written offer by any person (as such term is used in Section 13(d) and
Section 14(d)(2) of the Exchange Act as in effect on the Closing Date ) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the Closing Date) to the holders of the Capital Stock of
the Company, which offer, if accepted by the requisite number of holders, would result in a Change of Control. 
 “Controlled Investment Affiliate” shall mean, as to any Person, any other Person which (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such Person and (b) is
organized by the former such Person primarily for the purpose of making equity or debt investments in one or more companies. For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause
the direction of management and policies of such Person whether by contract or otherwise. 
 “Default” shall
mean any event that is, or with the passage of time, the giving of notice or both would be, an Event of Default. 
  

 51 

 “Designation Amount” shall have the meaning given in the definition of
“Investment.” 
 “Disposition” shall mean, with respect to any Person, any merger, consolidation,
amalgamation or other business combination involving such Person (whether or not such Person is the Surviving Person) or the sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of such Person’s assets.

 “Disqualified Capital Stock” shall mean any Capital Stock (other than the Preferred Units and ABRY
Subordinated Indebtedness) which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable, at the option of the holder thereof, in whole or in part, or exchangeable into Indebtedness on or prior to the Mandatory Redemption Date; provided, however,
that any Capital Stock that would not constitute Disqualified Capital Stock but for provisions thereof giving holders thereof the right to require the issuer to purchase or redeem such Capital Stock upon the occurrence of an “asset sale”
or “change of control” occurring prior to the Mandatory Redemption Date shall not constitute Disqualified Capital Stock if (1) the “asset sale” or “change of control” provision applicable to such Capital Stock is
not more favorable in any material respect to the holders of such Capital Stock than the terms applicable to the Preferred Units and (2) any such requirement only becomes operative after compliance with the terms of this Agreement. 

“Dracup Trusts” means the Dennis G. Dracup Declaration of Trust dated January 19, 1999 and the Christine L. Dracup
Declaration of Trust dated January 19, 1999. 
 “Embargoed Person” shall have the meaning given in
Paragraph 5M. 
 “Employee Benefit Plan” shall mean an employee benefit plan (as defined in
Section 3(3) of ERISA) that is maintained or contributed to by the Company or any Subsidiary or, solely with respect to an employee benefit plan subject to Title IV of ERISA, by any ERISA Entity or with respect to which the Company or any of
its Subsidiaries could incur liability. 
 “Environmental Laws” shall mean any and all foreign, federal, state,
local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees or requirements of any Governmental Authority or Requirements of Law (including, without limitation, common law) relating to pollution or protection of the
environment (including, without limitation, pollution or protection of ambient air, soil, subsurface strata, surface water, groundwater and natural resources such as flora, fauna and wetlands) or public or employee health, including, without
limitation, release or threatened release, manufacture, storage, treatment, handling, use, transport or disposal of Hazardous Materials, as now or may at any time hereafter be in effect. 
 “Environmental Permits” shall mean any and all permits, licenses, registrations, notifications, exemptions, variances and
any other authorizations required by any Governmental Authority under or issued pursuant to any Environmental Law. 
  

 52 

 “Equity Documents” shall mean, collectively, the documents designated
“Equity Documents” listed on Schedule 8U(4), in each case as amended, supplemented or otherwise modified in accordance with the terms thereof. 
 “Equity Financing” shall mean, collectively, (1) the purchase for cash by ABRY, its Controlled Investment Affiliates and the Permitted Investors (collectively, the
“Investors”) of the Capital Stock of the Company (of which (i) at least 59% of the aggregate gross proceeds shall be junior preferred equity securities that are not redeemable or puttable at the option of the holders thereof or common
equity or options to purchase common equity and (ii) the balance shall be the Securities) for an aggregate dollar amount (including the issuance of Redeemable Common Equity in aggregate principal amount not to exceed $30.0 million, plus
associated fees and expenses) equal to no less than 30% of the total capitalization of Language Line (determined as of the Closing Date, after giving effect to the consummation of the Transactions and excluding the amount of any borrowings made on
the Closing Date under the Revolving Facility (as defined in the Senior Credit Agreement) to finance any portion of the Merger Consideration (as defined in the Merger Agreement) attributable to an excess of Closing Working Capital (as defined in the
Merger Agreement) of Language Line) and (2) the subsequent and immediate contribution and/or loans of the net cash proceeds from the Investors’ investment by the Company, through one or more intermediate holding companies, to Acquisition
Co. and then to Language Line and receipt by Acquisition Co. and ultimately Language Line of such cash, as a capital contribution in exchange for common equity. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “ERISA Entity” shall mean any member of an ERISA Group. 
 “ERISA Event” shall mean (a) any “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder, with respect to a Pension Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Pension Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived, the failure to make
by its due date a required installment under Section 412(m) of the Code with respect to any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (c) the filing pursuant to Section 412(d) of the Code
or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Pension Plan; (d) the incurrence by any ERISA Entity of any liability under Title IV of ERISA with respect to the
termination of any Pension Plan; (e) the receipt by any ERISA Entity from the PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan, or the
occurrence of any event or condition that could reasonably be expected to constitute grounds under ERISA for the termination of or the appointment of a trustee to administer any Pension Plan; (f) the incurrence by any ERISA Entity of any
liability with respect to the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan; (g) the receipt by any ERISA Entity of any notice, or the receipt by any Multiemployer Plan from any ERISA Entity of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in Reorganization, within the meaning of Title IV of ERISA; (h) the making of any amendment to any
Pension Plan that could

  

 53 

 
reasonably be expected to result in the imposition of a lien or the posting of a bond or other security; or (i) the occurrence of a nonexempt prohibited transaction (within the meaning of
Section 4975 of the Code or Section 406 of ERISA) that could result in material liability to the Company or any of its Subsidiaries. 
 “ERISA Group” shall mean the Company, any Subsidiary and all corporations and all trades or businesses (whether or not incorporated) that, together with the Company or any Subsidiary, are
treated as a single employer under Section 414 of the Code. 
 “Event of Default” shall mean any
of the events specified in Paragraph 7A, provided that there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further condition, event or act.

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and the rules and regulations
promulgated by the SEC thereunder. 
 “Executive Order” shall have the meaning given in Paragraph 8X(1).

 “Executive Orders” shall have the meaning given in Paragraph 5M. 
 “Existing Indebtedness” shall mean any Indebtedness of the Company and its Subsidiaries in existence on the Closing Date
until such amounts are repaid. 
 “Fair Market Value” shall mean, with respect to any asset, the price (after
taking into account any liabilities relating to such assets) which could be negotiated in an arm’s-length free market transaction, for cash, between a willing seller and a willing and able buyer, neither of which is under any compulsion to
complete the transaction; provided, however that the Fair Market Value of any such asset or assets shall be determined conclusively by the Board of Directors of the Company acting in good faith and shall be evidenced by a Board Resolution.

 “Fee Property” shall mean any real property owned in fee. 
 “GAAP” shall mean shall mean generally accepted accounting principles in the United States as in effect from time to time,
except that for purposes of Paragraphs 6A(1), 6(B)(1), and 6E, GAAP shall be determined on the basis of such principles in effect on the date hereof and consistent with those used in the preparation of the most recent audited
financial statements referred to in Paragraph 8A(2). In the event that any Accounting Change (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this
Agreement, then the Company and the Required Holders agree to enter into negotiations in order to amend such provisions of this Agreement so as to equitably reflect such Accounting Change with the desired result that the criteria for evaluating the
Company and its Subsidiaries’ financial condition and results of operations of the Company and its Subsidiaries shall be the same after such Accounting Change as if such Accounting Change had not been made. Until such time as such an amendment
shall have been executed and delivered by the Company and the Required Lenders, except for purposes of Paragraph 5A, all financial covenants, standards and terms in this Agreement shall continue to be calculated or construed as if such
Accounting Change had not occurred. “Accounting Change” refers to

  

 54 

 
changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified
Public Accountants or, if applicable, the SEC. 
 “Governmental Authority” shall mean any Federal, state, local
or foreign government, or other entity (including, without limitation, any governmental or quasi-governmental agency or authority) exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 “guarantee” shall mean (1) as applied to any Indebtedness, a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner, of any part or all of such Indebtedness and (2) for purposes of the definition of “Investment”, an agreement, direct or
indirect, contingent or otherwise, the practical effect of which is to assure in any way the payment or performance (or payment of damages in the event of non-performance) of all or any part of such obligation, including, without limiting the
foregoing, the payment of amounts drawn down by letters of credit and any agreement to maintain or preserve any other Person’s financial condition or to cause any other Person to achieve certain levels of operating results. 
 “Hazardous Materials” shall mean any pollutants, contaminants, chemicals, materials or wastes, radioactivity or radiation,
hazardous pesticides or hazardous or toxic substances that may give rise to liability, or are subject to regulation, under any Environmental Law, including, without limitation, asbestos, petroleum, any other petroleum products (including gasoline,
crude oil or any fraction thereof), polychlorinated biphenyls and urea-formaldehyde insulation. 
 “Hedging
Obligations” shall mean, with respect to any Person, the Obligations of such Person under (1) interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, (2) other agreements or arrangements
designed to protect such Person against fluctuations in interest rates and (3) foreign currency or commodity hedge, swap, exchange or similar protection agreements (agreements referred to in this definition being referred to herein as
“Hedging Agreements”). 
 “Holder” shall mean a Person who is the owner of any Security.

 “Holdings” shall have the meaning given in Paragraph 3D. 
 “Holdings II” shall mean Language Line Holdings II, Inc., a Delaware corporation. 
 “including” shall mean, unless the context clearly requires otherwise, “including without limitation”, whether or
not so stated. 
 “Incur” shall mean, with respect to any Indebtedness or other obligation of any Person, to
create, issue, incur (including by conversion, exchange or otherwise), assume, guarantee or otherwise become liable in respect of such Indebtedness or other obligation or the recording, as required pursuant to GAAP or otherwise, of any such
Indebtedness or other obligation on the balance sheet of such Person (and “Incurrence,” “Incurred” and

  

 55 

 
“Incurring” shall have meanings correlative to the foregoing). Indebtedness of any Acquired Person or any of its Subsidiaries existing at the time such Acquired Person becomes a
Subsidiary (or is merged into or consolidated with the Company or any Subsidiary), whether or not such Indebtedness was Incurred in connection with, as a result of, or in contemplation of, such Acquired Person becoming a Subsidiary (or being merged
into or consolidated or amalgamated with the Company or any Subsidiary), shall be deemed Incurred at the time any such Acquired Person becomes a Subsidiary or merges into or consolidates or amalgamates with the Company or any Subsidiary. The accrual
of interest, the accretion or amortization of original issue discount and, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, will not be deemed to be an Incurrence of Indebtedness. 
 “Incurrence Notice” shall have the meaning given in Paragraph 6A(2)(k). 
 “Indebtedness” shall mean (without duplication), with respect to any Person, whether or not contingent: 
 (1) every obligation of such Person for money borrowed; 
 (2) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments; 
 (3) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar
facilities issued for the account of such Person; 
 (4) every obligation of such Person issued or assumed as the
deferred purchase price of assets or services (but excluding (A) earn-out or other similar obligations until such time as the amount of such obligation is capable of being determined and its payment is probable, (B) trade accounts payable,
or (C) other accrued liabilities or expenses arising in the ordinary course of business); 
 (5) every
Capital Lease Obligation of such Person; 
 (6) every net obligation payable under Hedging Agreements of such
Person; and 
 (7) every obligation of the type referred to in clauses (1) through (6) of another
Person and all dividends of another Person the payment of which, in either case, such Person has guaranteed or is responsible or liable for, directly or indirectly, as obligor, guarantor or otherwise, the amount of such obligation being the maximum
amount covered by such guarantee or for which such Person is otherwise liable. Indebtedness: 
 (A) shall never
be calculated taking into account any cash and cash equivalents held by such Person; 
 (B) shall not include
obligations of any Person (1) arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary course

  

 56 

 
of business, provided that such obligations are extinguished within 5 Business Days of their Incurrence, (2) resulting from the endorsement of negotiable instruments for collection in the
ordinary course of business and (3) under standby letters of credit to the extent collateralized by cash or Cash Equivalents; 
 (C) shall not include any liability for federal, provincial, state, local or other taxes; and 
 (D) shall not include obligations under performance bonds, performance guarantees, surety bonds and appeal bonds, letters of credit or similar obligations, incurred in the ordinary course of business.

 In addition, for the purpose of avoiding duplication in calculating the outstanding principal amount of Indebtedness for
purposes of Paragraph 6A, Indebtedness arising solely by reason of the existence of a Lien to secure other Indebtedness permitted to be Incurred under Paragraph 6A will not be considered to be incremental Indebtedness. The amount of
any Indebtedness shall be its accreted value, in the case of Indebtedness issued at a discount, and its stated principal amount for all other Indebtedness. 
 “Independent Financial Advisor” shall mean a nationally recognized accounting, appraisal, investment banking firm or consultant in the United States that is, in the judgment of the
Company’s Board of Directors, independently qualified to perform the task for which it has been engaged. 
 “Intellectual Property” shall mean the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise,
including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom. 
 “Investment” shall mean, with respect to any Person, any
loan, advance, guarantee (whether or not constituting Indebtedness) or other extension of credit (in each case other than in connection with an acquisition of property or assets that does not otherwise constitute an Investment) or capital
contribution to, or purchase or acquisition of Capital Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any other Person. The amount of any Investment shall be the original cost of such Investment, plus the
cost of all additions thereto, and minus the amount of any portion of such Investment repaid to such Person in cash as a repayment of principal or a return of capital, as the case may be, but without any other adjustments for increases or decreases
in value, or write-ups, write-downs or write-offs with respect to such Investment. In determining the amount of any Investment involving a transfer of any property or asset other than cash, such property shall be valued at its Fair Market Value at
the time of such transfer. For purposes of Paragraph 6B, Investments shall be deemed to be made in an amount (the “Designation Amount”) equal to the greater of (1) the net book value of the Company’s interest in the
applicable Subsidiary calculated in accordance with GAAP or (2) the Fair Market Value of the Company’s interest in the applicable Subsidiary as determined in good faith by the Board of Directors of the Company and evidenced

  

 57 

 
by a Board Resolution (or committee resolution), whose determination shall be conclusive. If the Company or any Subsidiary sells or otherwise disposes of any Voting Stock of any direct or
indirect Subsidiary such that, after giving effect to such sale or disposition, the Company no longer owns, directly or indirectly, a majority of the outstanding Voting Stock of such Subsidiary, the Company will be deemed to have made an Investment
on the date of such sale or disposition equal to the Fair Market Value of the Capital Stock of such Subsidiary that after giving effect to such sale or disposition is owned, directly or indirectly, by the Company. 
 “Investors” shall have the meaning given in the definition of “Equity Financing.” 
 “Language Line” shall have the meaning given in Paragraph 3D. 
 “LLC” shall have the meaning given in Paragraph 3P. 
 “LLC Agreement” shall have the meaning given in Paragraph 3A(1). 
 “Leased Property” shall have the meaning given in Paragraph 8M. 
 “Lien” shall mean any lien, mortgage, charge, security interest, hypothecation, assignment for security or encumbrance of
any kind (including any conditional sale or capital lease or other title retention agreement, and any agreement to give any security interest but excluding any lease which does not secure Indebtedness). 
 “Liquidation Value” shall mean, with respect to any Preferred Unit, the sum of (i) the Unreturned Capital Value of
such Preferred Unit plus (ii) the Unpaid Yield on such Preferred Unit. 
 “Liquidity Company Sale”
shall mean (i) the sale (including by means of a merger or consolidation) of all or substantially all of the Company’s “Common Units” (as defined in the LLC Agreement) to a Person or Persons (other than any Affiliate of the
Company) in the same transaction or series of related transactions or (ii) the distribution to all of the holders of the Company’s Capital Stock substantially concurrently with an Asset Sale of the proceeds of such sale (net of reasonable
related expenses and liabilities of the Company and its Subsidiaries not assumed by the acquiring Person(s)). 
 “Liquidity Initial Public Offering” shall mean a Qualified Initial Public Offering pursuant to which all Common Units are converted into common stock of a Successor Corporation (as defined in the Members Agreement) (such
shares, the “Class D Unit Shares”) with respect to which no restriction or limitation (other than a lock-up or hold-back or similar requirement of the Company or the underwriter for no more than 180 days) is imposed and no other
restriction exists which prevents the holders of the Class D Unit Shares from selling any of the Class D Unit Shares into the public market, other than any restrictions imposed by applicable federal or state securities or “blue sky” laws.
Any Initial Public Offering pursuant to which a lock-up or hold-back or other restriction is imposed or exits for a period of more than 180 days on the holders of the Class D Unit Shares with respect to sales of the Class D Unit Shares shall not be
an event constituting a Liquidity Initial Public Offering. 
  

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 “Mandatory Redemption Date” shall have the meaning given in Paragraph
4(C). 
 “Material Acquisition Documents” shall have the meaning given in Paragraph 8U. 

“Material Adverse Effect” shall mean (i) a material adverse effect on the business, assets, operations, or
condition, financial or otherwise, of the Company and its Subsidiaries, taken as a whole, (ii) material impairment of the Company’s ability to perform any of its obligations under this Agreement, or any of the other Transaction Documents
or (iii) a material impairment of the validity or enforceability of the rights of, or the benefits available to, the holders of any of the Securities under this Agreement or the other Transaction Documents. 
 “Material Credit Documents” shall have the meaning given in Paragraph 8U. 
 “Material Equity Documents” shall have the meaning given in Paragraph 8U. 
 “Material Subordinated Note Documents” shall have the meaning given in Paragraph 8U. 
 “Measurement Period” shall have the meaning given in the definition of “Consolidated Leverage Ratio.” 

“Members Agreement” shall have the meaning given in Paragraph 3A(2). 
 “Merger” shall have the meaning given in Paragraph 3D. 
 “Merger Consideration” shall have the meaning given in Paragraph 3F. 
 “Merrill” shall mean Merrill Lynch Capital Corporation and its Affiliates. 
 “Moody’s” shall mean Moody’s Investors Service, Inc. or, if Moody’s Investors Service, Inc. shall cease
rating debt securities having a maturity at original issuance of at least one year and such ratings business shall have been transferred to a successor Person, such successor Person; provided, however, that if Moody’s Investors
Service, Inc. ceases rating debt securities having a maturity at original issuance of at least one year and its ratings business with respect thereto shall not have been transferred to any successor Person, then “Moody’s” shall mean
any other national recognized rating agency (other than S&P) that rates debt securities having a maturity at original issuance of at least one year and that shall have been designated by the Company by a written notice given to the Holders.

 “Multiemployer Plan” shall mean a multiemployer plan within the meaning of Section 4001(a)(3) of ERISA
(1) to which any ERISA Entity is making or accruing an obligation to make contributions or (2) to which any ERISA Entity has within the preceding five plan years made contributions, including any Person which ceased to be an ERISA Entity
during such five year period. 
  

 59 

 “Net Cash Proceeds” shall mean the aggregate proceeds in the form of cash
or Cash Equivalents received by the Company or any Subsidiary in respect of any Asset Sale, including all cash or Cash Equivalents received upon any sale, liquidation or other exchange of proceeds of Asset Sales received in a form other than cash or
Cash Equivalents, net of: 
 (1) the direct costs relating to such Asset Sale (including, without limitation,
reasonable legal, accounting and investment banking fees, brokerage fees and sales commissions) and any relocation expenses incurred as a result thereof; 
 (2) taxes paid or payable directly as a result thereof; 
 (3)
amounts required to be applied to the repayment of Indebtedness secured by a Lien on the asset or assets that were the subject of such Asset Sale; 
 (4) amounts deemed, in good faith, appropriate by the Board of Directors of the Company to be provided as a reserve, in accordance with GAAP, against any liabilities associated with such assets which are
the subject of such Asset Sale (provided that the amount of any such reserves shall be deemed to constitute Net Cash Proceeds at the time such reserves shall have been released or are not otherwise required to be retained as a reserve); and

 (5) any portion of the purchase price from an Asset Sale placed in escrow, whether as a reserve for adjustment
of the purchase price, for satisfaction of indemnities in respect of such Asset Sale or otherwise in connection with that Asset Sale; provided, however, that upon the termination of that escrow, Net Cash Proceeds will be increased by any portion of
funds in the escrow that are released to the Company or any Subsidiary. 
 “New York Life Capital Partners”
shall mean New York Life Capital Partners II, L.P. and its Affiliates. 
 “Obligations” shall mean any
principal, interest (including, in the case of Senior Indebtedness, Post-Petition Interest), penalties, fees, indemnifications, reimbursement obligations, damages and other liabilities payable under the documentation governing any Indebtedness.

 “OFAC” shall have the meaning given in Paragraph 8X(2)(v). 
 “Officer” shall mean the Chairman, any Vice Chairman, the President, any Vice President, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer or the Secretary or any Assistant Secretary of the Company. 
 “Officers’
Certificate” shall mean a certificate of the Company signed on the Company’s behalf by two Officers or by one Officer and any Assistant Treasurer or Assistant Secretary of the Company and which complies with the provisions of this
Agreement. 
 “Online Debt” shall mean the amount owed by LLC to the former shareholders of Online
Interpreters, Inc. under those certain subordinated notes, each dated May 6, 2002, in the aggregate original principal amount of $4,213,854 (net of the amount due LLC from such

  

 60 

 
former shareholders that may be offset against such notes) not greater than $1,800,000 in principal amount of which indebtedness remains outstanding as the date hereof. 
 “Opinion of Counsel” shall mean a written opinion of counsel, who may be counsel for the Company or any Holder, and which
opinion shall be reasonably acceptable to the Required Holder(s). 
 “Other List” shall have the meaning given
in Paragraph 5M. 
 “Payoff Transaction” shall have the meaning given in Paragraph 4A(5).

 “PBGC” shall mean the Pension Benefit Guaranty Corporation, or any successor or replacement entity thereto
under ERISA. 
 “Pension Plan” shall mean an employee pension benefit plan (other than a Multiemployer Plan)
that is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code or Section 302 of ERISA and is maintained or contributed to by any ERISA Entity or with respect to which the Company or any of
its Subsidiaries could incur liability by application of Section 4069 of ERISA. 
 “Permitted
Encumbrances” shall mean, with respect to any property encumbered by a mortgage, such exceptions to title as are set forth in the title insurance policy delivered with respect thereto. 
 “Permitted Holders” shall mean ABRY and its Controlled Investment Affiliates. 
 “Permitted Indebtedness” has the meaning set forth in Paragraph 6A(2). 
 “Permitted Investments” shall mean: 
 (1) Investments 
 (a) by any Subsidiary in the Company; and 
 (b) by the Company or
by any Subsidiary in any Subsidiary (including to create any Subsidiary) and in any Person that becomes a Subsidiary as a result thereof; 
 (2) Investments in Cash Equivalents; 
 (3) payroll, commission,
travel and similar advances in the ordinary course of business; 
 (4) travel and entertainment advances and
relocation and other loans (including guarantees of obligations to third parties in connection with relocation of employees of the Company or its Subsidiaries) to officers and employees of the Company or any of its Subsidiaries; 
  

 61 

 (5) other Investments by the Company or any of its Subsidiaries not
exceeding in the aggregate outstanding at any time $5,000,000; 
 (6) loans to senior management of the Company
and its Subsidiaries in an aggregate principal amount not to exceed $2,000,000 for purposes of their purchasing Capital Stock of the Company; 
 (7) Hedging Obligations; 
 (8) the Transactions; 
 (9) Investments for consideration to the extent consisting of Qualified Capital Stock; and 
 (10) any Investment made as a result of the receipt of non-cash consideration in an Asset Sale. 
 “Permitted Investors” shall mean ABRY, ABRY Investment Partnership, L.P., ABRY Mezzanine Partners, L.P., New York Life
Capital Partners, Dennis Dracup, Matthew Gibbs, James Moore, Jeanne Andersen, Dennis Bailey, Phil Speciale or Yung-Chung Heh and Merrill, together with their respective Affiliates, and such other Person as may be reasonably acceptable to the
Purchasers. 
 “Permitted Liens” shall have the meaning given in the Senior Credit Agreement (as in effect on
the Closing Date). 
 “Person” shall mean and include any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, limited liability limited partnership, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Post-Petition Interest” shall mean, with respect to any Indebtedness of any Person, all interest accrued or accruing on
such Indebtedness after the commencement of any insolvency or liquidation proceeding against such Person in accordance with and at the contract rate (including, without limitation, any rate applicable upon default) specified in the agreement or
instrument creating, evidencing or governing such Indebtedness, whether or not, pursuant to applicable law or otherwise, the claim for such interest is allowed as a claim in such Insolvency or Liquidation Proceeding. 
 “Preferred Capital Stock” shall mean (1) with respect to the Company, Capital Stock of any class or classes (however
designated) which is pari passu with, or preferred (as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of the Company or otherwise) over, the Preferred
Units and (2) with respect to any other Person, Capital Stock of any class or classes (however designated) which is preferred as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution or otherwise of such Person, over Capital Stock of any other class in such Person. 
  

 62 

 “Preferred Units” shall have the meaning given in Paragraph 1.

 “Pro Forma Balance Sheet” shall have the meaning given in Paragraph 8A(1). 
 “Pro Forma Financial Statements” shall have the meaning given in Paragraph 8A(1). 
 “Public Sale” shall have the meaning given in the Members Agreement. 
 “Purchase Money Indebtedness” shall mean Indebtedness of the Company or any Subsidiary Incurred for the purpose of
financing all or any part of the purchase price or the cost of construction or improvement of any property or assets (including through the purchase of Capital Stock of a Person owning such assets); provided, however, that the
aggregate principal amount of such Indebtedness does not exceed the lesser of the Fair Market Value of such property or such purchase price or cost, including any refinancing of such Indebtedness that does not increase the aggregate principal amount
(or accreted amount, if less) thereof as of the date of refinancing. 
 “Purchaser Schedule” shall have the
meaning given in the introductory Paragraph hereof. 
 “Purchasers” shall have the meaning given in the
introductory Paragraph hereof. 
 “Qualified Capital Stock” in any Person shall mean any Capital Stock in such
Person other than any Disqualified Capital Stock. 
 “Qualified Initial Public Offering” shall mean a firm
underwritten offering of the Company pursuant to a registration statement under the Securities Act (i) of common Capital Stock having an aggregate gross offering price of at least $50,000,000 and (ii) reasonably expected to result in more
than 100 holders of record of Voting Stock of the Company (exclusive of holdings of Affiliates and employees of the Company). 
 “Quarterly Review” shall mean a review of financial statements made by an independent accounting firm consistent with the substantive accounting standards and requirements set forth in Statement on Auditing Standards 100 or
to the extent not applicable, Statement on Standards for Accounting and Review Standards 1, each as set forth by the American Institute of Certified Public Accountants. 
 “Real Property” shall mean each Leased Property listed on Schedule 8M and Fee Property, all right, title and interest of any Person (including, without limitation, any
leasehold estate) in and to a parcel of real property owned or operated by any Transaction Party, whether by lease, license or other use or occupancy agreement, together with, in each case, all improvements and appurtenant fixtures, equipment,
personal property, easements and other property and rights incidental to the ownership, lease or operation thereof or thereon. 
 “Redemption Amount” shall mean, with respect to any Preferred Unit at any time, (a) prior to the first anniversary of the Closing Date, an amount equal to 4% of the Liquidation Value of such Preferred Unit at such
time, (b) on or after the first anniversary of the

  

 63 

 
Closing Date and prior to the second anniversary of the Closing Date, an amount equal to 3% of the Liquidation Value of such Preferred Unit at such time, (c) on or after the second
anniversary of the Closing Date and prior to the third anniversary of the Closing Date, an amount equal to 2% of the Liquidation Value of such Preferred Unit at such time, (d) on or after the third anniversary of the Closing Date and prior to
the fourth anniversary of the Closing Date, an amount equal to 1% of the Liquidation Value of such Preferred Unit at such time and (e) from and after the fourth anniversary of the Closing Date zero. 
 “Redeemable Common Equity” shall mean Indebtedness of Holdings II in an original aggregate principal amount of $30,000,000,
(plus amounts borrowed pursuant to the CitiCorp Credit Agreement to pay associated fees and expenses) (a) that shall not have scheduled amortization prior to the stated maturity thereof, (b) interest on which shall be payable only with
proceeds of loans under the line of credit under the CitiCorp Credit Agreement (which loans shall also constitute Redeemable Common Equity), (c) that shall provide that (i) no payments of principal (or premium, if any) or interest on or
otherwise due in respect of such Indebtedness may be permitted for so long as any Default or Event of Default exists and (ii) no payments in respect of interest (other than the payment of regularly scheduled interest, or interest when the
principal is repaid or converted into Qualified Capital Stock (which is not Preferred Capital Stock) of the Company), premium or other amounts (other than principal) shall be payable in securities or instruments of the Company or any of its
Subsidiaries, cash or other property, (d) that shall mature not later than the third anniversary of the Closing Date, (e) shall be subject to “standstill” provisions substantially in the form of Exhibit D attached hereto,
(f) is guaranteed by ABRY and (g) is supported by ABRY’s deposit of the Call Agreement into escrow on terms and conditions reasonably satisfactory to the Required Holders(s). 
 “Redemption Date” shall have the meaning given in Paragraph 4B(1). 
 “refinancing” shall have the meaning given in Paragraph 6A(2)(i). 
 “Registration Rights Agreement” shall have the meaning given in Paragraph 3A(3). 
 “Related Business” shall mean (1) those businesses in which the Company or any of the Subsidiaries are anticipated on
the date of this Agreement to be engaged in on the Closing Date, or that are reasonably related, ancillary, incidental or complementary thereto, as determined by the Company’s Board of Directors, and (2) any business which forms a part of
a business (the “Acquired Business”) which is acquired by the Company or any of the Subsidiaries if the primary intent of the Company or such Subsidiary was to acquire that portion of the Acquired Business which meets the
requirements of clause (1) of this definition. 
 “Reorganization” shall mean, with respect to any
Multiemployer Plan, the condition that such Multiemployer Plan is in reorganization as such term is used in Section 4241 of ERISA. 
 “Required Holder(s)” shall mean, at any time, (1) so long as any Preferred Units are outstanding, the Holder or Holders of at least 66  2/3%of the aggregate Liquidation Value of Preferred Units then
outstanding and (2) if no Preferred Units are outstanding, the Holder or 

  

 64 

 
Holders of at least 66  2/3% of the Class D Common Units or Class D Unit Shares then outstanding; provided that so long as each of Merrill and New York Life Capital Partners holds more than 50% of the number of units of the
applicable Security such Person originally purchased under this Agreement, any determination of Required Holder(s) must include either New York Life Capital Partners or Merrill, and (b) so long as only one of Merrill or New York Life Capital
Partners (but not both) holds more than 50% of the number of units of the applicable Security such Person originally purchased under this Agreement, any determination of Required Holder(s) must include such Person. 
 “Requirements of Law” shall mean, as to any Person, the articles or certificate of incorporation and By-Laws or other
organizational, constitutive or governing documents of such Person, and any law, treaty, rule or regulation, order or determination of an arbitrator or a court or other Governmental Authority, in each case, applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject. 
 “Responsible Officer”
shall mean, as to any Person, the chief executive officer, chief operating officer, chief financial officer or chief accounting officer of such Person or any other officer of such Person involved principally in its financial administration or its
controllership function. 
 “Restricted Payments” shall have the meaning given in Paragraph 6B.

 “Rights” shall have the meaning given in Paragraph 1. 
 “S&P” shall mean Standard & Poor’s Ratings Services, a division of McGraw Hill, Inc. or, if
Standard & Poor’s Ratings Services shall cease rating debt securities having a maturity at original issuance of at least one year and such ratings business shall have been transferred to a successor Person, such successor Person,
provided, however, that if Standard & Poor’s Ratings Services ceases rating debt securities having a maturity at original issuance of at least one year and its ratings business with respect thereto shall not have been
transferred to any successor Person, then “S&P” shall mean any other nationally recognized rating agency (other than Moody’s) that rates debt securities having a maturity at original issuance of at least one year and that shall
have been designated by the Company by a written notice given to the Holders. 
 “SDN List” shall have the
meaning given in Paragraph 5M. 
 “SEC” shall mean the Securities and Exchange Commission, any successor
thereto and any analogous Governmental Authority. 
 “Securities” shall have the meaning given in Paragraph
1. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, or any successor statute and the
rules and regulations promulgated by the SEC thereunder. 
 “Senior Credit Agreement” shall mean the Credit
Agreement dated as of the date hereof, by and among Language Line, as Borrower, Language Line Holdings, Inc., the Subsidiary Guarantors party thereto, the lenders party thereto from time to time, Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Banc of America Securities LLC

  

 65 

 
as Joint Lead Arrangers and Book Runners, Banc of America Securities LLC as Syndication Agent, Merrill as Administrative Agent and National City Bank as Documentation Agent, including any
deferrals, renewals, extensions, replacements, refinancings or refundings thereof, or amendments, modifications or supplements thereto and any agreement providing thereof (including any restatements thereof and any increases in the amount of
commitments thereunder), whether in one or more separate agreements and whether by or with the same or any other lender, creditor, or any one or more groups of lenders or group of creditors (whether or not including any or all of the financial
institutions party to the aforementioned credit agreements), and including related notes, guarantee and note agreements and other instruments and agreements executed in connection therewith. 
 “Senior Credit Documents” shall mean the Credit Documents (as defined in the Senior Credit Agreement, as in effect on the
Closing Date). 
 “Senior Discount Notes” shall mean the 14 - 1/8% Senior Discount Notes due 2013 issued by Holdings with original
discount to yield gross proceeds of approximately $55,000,000. 
 “Senior Discount Note Indenture” shall
mean the Indenture dated as of June 11, 2004, by and among Holdings, as Issuer, the Guarantors named therein and The Bank of New York, as Trustee, relating to the Senior Discount Notes, as in effect from time to time. 
 “Senior Indebtedness” shall mean, with respect to the Company or Subsidiary, at any date, 
 (1) all Obligations of the Company or such Subsidiary, as applicable, under the Senior Credit Agreement; 
 (2) all Hedging Obligations of the Company or such Subsidiary, as applicable; and 
 (3) Obligations of the Company or such Subsidiary, as applicable, in connection with all other Indebtedness of the Company
unless the instrument under which such Indebtedness of the Company or such Subsidiary, as applicable, is Incurred expressly provides that such Indebtedness is not senior or superior in right of payment to the Notes, and all renewals, extensions,
modifications, amendments or refinancings thereof. 
 Notwithstanding the foregoing, Senior Indebtedness shall not include
(a) to the extent that it may constitute Indebtedness, any obligation for federal, state, local or other taxes; (b) any Indebtedness among or between the Company and any Subsidiary of the Company, unless and for so long as such
Indebtedness has been pledged to secure Obligations to a third party; (c) to the extent that it may constitute Indebtedness, any Obligation in respect of any trade payable Incurred for the purchase of goods or materials, or for services
obtained, in the ordinary course of business; (d) Indebtedness evidenced by the ABRY Subordinated Indebtedness, the Redeemable Common Equity, the Subordinated Notes or the Senior Discount Notes; (e) Indebtedness of the Company or such
Subsidiary, as applicable, that is expressly subordinate or junior in right of payment to any other Indebtedness of the Company or such Subsidiary, as

  

 66 

 
applicable; (f) to the extent that it may constitute Indebtedness, any Obligation owing under leases (other than Capital Lease Obligations) or management agreements; and (g) any
obligation that by operation of law is subordinate to any general unsecured obligations of the Company or such Subsidiary, as applicable. 
 “Senior Lenders” shall mean each financial institution which from time to time is a lender under the Senior Credit Agreement. 
 “Series A Preferred Units” shall have the meaning given in the LLC Agreement. 
 “Significant Subsidiary” shall mean (1) any Subsidiary that would be a “significant subsidiary” as defined
in Regulation S-X promulgated pursuant to the Securities Act as such Regulation is in effect on the date of this Agreement and (2) any Subsidiary that, when aggregated with all other Subsidiaries that are not otherwise Significant Subsidiaries
and as to which any event described in Paragraph 7A(vi) or 7A(vii) hereof has occurred and is continuing, would constitute a Significant Subsidiary under clause (1) of this definition. 
 “Solvent” and “Solvency” shall mean, when used with respect to any Person, as of any date of
determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business,
and (d) such Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to
payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured, or (y) right to an equitable remedy for breach of
performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 
 “Subordinated Indebtedness” shall mean any Indebtedness (other than Disqualified Capital Stock) of the Company or a
Subsidiary other than Senior Indebtedness. 
 “Subordinated Note Indenture” shall mean the Indenture dated as
of June 11, 2004, by and among Language Line, as Issuer, the Guarantors named therein and The Bank of New York, as Trustee, relating to the Subordinated Notes, as in effect from time to time. 
 “Subordinated Notes” shall mean the $165,000.000 in aggregate principal amount at maturity of 11-1/8 % Senior
Subordinated Notes due 2012 of Language Line. 
 “Subsidiary” shall mean with respect to any Person
(1) any corporation, limited liability company, association or other business entity of which more than 50% of the total voting power of all outstanding Voting Stock entitled (without regard to the occurrence of any

  

 67 

 
contingency) to vote in the election of the Board of Directors thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof) and (2) any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or
of one or more Subsidiaries of such Person (or any combination thereof). Unless otherwise specified, “Subsidiary” refers to a Subsidiary of the Company. 
 “Surviving Person” shall mean, with respect to any Person involved in or that makes any Disposition, the Person formed by or surviving such Disposition or the Person to which such
Disposition is made. 
 “Total Assets” shall mean, with respect to any Person, as of any date, the combined
consolidated total assets of such Person, as determined in accordance with GAAP. 
 “Transaction Documents”
shall mean, collectively, this Agreement, the Registration Rights Agreement, the LLC Agreement, the Members Agreement and the other agreements, documents, certificates and instruments now or hereafter executed or delivered by the Company or any
Subsidiary or Affiliate in connection with this Agreement. 
 “Transaction Parties” shall mean, collectively,
the Company and its Subsidiaries. 
 “Transactions” shall mean acquisition of Holdings pursuant to the
Agreement and Plan of Merger, the Equity Financing, the issuance and sale of the Securities, the issuance and sale of the Subordinated Notes and the Senior Discount Notes, the execution and delivery of the Senior Credit Agreement and documents
related thereto and the initial extension of credit thereunder, the other transactions contemplated by the foregoing and the payment of fees and expenses in connection with the foregoing. 
 “Transferee” shall mean any direct or indirect transferee of all or any part of the Securities purchased by any Purchaser
under this Agreement. 
 “Unpaid Yield” shall have the meaning given in the LLC Agreement. 
 “Unutilized Net Cash Proceeds” shall have the meaning given under Paragraph 6G. 
 “Unreturned Capital Value” shall have the meaning given in the LLC Agreement. 
 “Voting Stock” shall mean Capital Stock in a corporation or other Person with voting power under ordinary circumstances
entitling the holders thereof to elect the Board of Directors or other comparable governing body of such corporation or Person. 
 “Wholly Owned Subsidiary” shall mean any Subsidiary of the Company all of the outstanding Capital Stock of every class of which is owned by the Company or another Wholly Owned Subsidiary of the Company. 
  

 68 

 “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part 1 of Subtitle E of Title IV of ERISA. 
 10B. Legal Principles, Terms and Determinations. Any reference herein to any specific citation, section or form of law, statute, rule or regulation shall refer to such new, replacement or analogous
citation, section or form should citation, section or form be modified, amended or replaced. All references herein to “paragraph,” “subparagraph” or “clause” shall refer to a paragraph, subparagraph or clause,
respectively, of this Agreement unless otherwise expressly stated. 
 11. MISCELLANEOUS. 
 11A. Payments. The Company agrees that, so long as any Purchaser shall hold any Security, it will make all payments with respect to
such Security by wire transfer of immediately available funds for credit (not later than 12:00 noon, New York City time, on the date due) to such Purchaser’s account or accounts as specified in the Purchaser Schedule attached hereto, or such
other account or accounts in the United States as such Purchaser may designate in writing. 
 11B. Expenses. Whether or
not the transactions contemplated hereby shall be consummated, the Company shall pay, and save each Purchaser and any Transferee harmless against liability for the payment of, all out-of-pocket expenses arising in connection with such transactions,
including: 
 (i)(a) all stamp and documentary taxes and similar charges, if any, and (b) fees and
expenses of brokers, agents, dealers, investment banks or other intermediaries or placement agents, in each case as a result of the execution and delivery of this Agreement or the other Transaction Documents or the issuance of the Securities;

 (ii) document production and duplication charges and the fees and expenses of any special counsel engaged by
such Purchaser or such Transferee in connection with (a) this Agreement, any of the other Transaction Documents and the transactions contemplated hereby or thereby and (b) any subsequent proposed waiver, amendment or modification of, or
proposed consent under, this Agreement or any other Transaction Document, whether or not such proposed action shall be effected or granted; 
 (iii) the costs and expenses, including attorneys’ and financial advisory fees, incurred by such Purchaser or such Transferee in enforcing (or determining whether or how to enforce) any rights under
this Agreement, the Securities or any other Transaction Document or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or any other Transaction Document or the transactions
contemplated hereby or by reason of your or such Transferee’s having acquired any Security, including without limitation costs and expenses incurred in any workout, restructuring or renegotiation proceeding or bankruptcy case; and 

 

 69 

 (iv) any judgment, liability, claim, order, decree, cost, fee, expense,
action or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Securities by the Company. 
 The obligations of the Company under this Paragraph 11B shall survive the transfer of any Security or portion thereof or interest therein by any Purchaser or Transferee and the payment of
any Security. The obligations of the Company under Paragraph 11B(iii) to pay costs and expenses of attorneys as to any period on or before the Closing Date shall be limited to the fees and expenses of Schiff Hardin LLP. 
 11C. Consent to Amendments. This Agreement may be amended, and the Company may take any action herein prohibited, or omit to perform
any act herein required to be performed by it, if the Company shall obtain the written consent to such amendment, action or omission to act, of the Required Holder(s) except that, without the written consent of the Holder or Holders of all Preferred
Units at the time outstanding, no amendment to this Agreement shall change the amount or time of payment due with respect to the Preferred Units or change the terms of Paragraph 1, Paragraph 2 or Paragraph 3, or change the terms
of any amount or time of payment of any redemption under Paragraph 4 or change the definition of Required Holder(s). Each Holder of any Security at the time or thereafter outstanding shall be bound by any consent authorized by this
Paragraph 11C. No course of dealing between the Company and the Holder of any Security nor any delay in exercising any rights hereunder or under any Security shall operate as a waiver of any rights of any Holder of such Security. As used
herein the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 
 11D. Survival of Representations and Warranties; Entire Agreement. All representations and warranties contained herein or made in writing by or on behalf of the Company in connection herewith shall
survive the execution and delivery of this Agreement and the other Transaction Documents and the transfer by any Purchaser of any Security, and may be relied upon by each Purchaser and any Transferee, regardless of any investigation made at any time
by or on behalf of any Purchaser or any Transferee. Subject to the foregoing, this Agreement and the other Transaction Documents embody the entire agreement and understanding between the Purchasers and the Company and supersede all prior agreements
and understandings relating to the subject matter hereof. 
 11E. Successors and Assigns. All covenants and other
agreements in this Agreement contained by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto (including, without limitation, any Transferee) whether so
expressed or not; provided that neither (1) the rights of Merrill (or any of its Affiliates) pursuant to the proviso set forth in the definition of the term “Required Holder(s)” may be assigned (other than to an Affiliate of
Merrill), nor (2) the rights of New York Life Capital Partners (or any of its Affiliates) pursuant to the proviso set forth in the definition of the term “Required Holder(s)” may be assigned (other than to an Affiliate of New York
Life Capital Partners), in each case, without both the prior written consent of the Company and the approval of the Board of Directors of the Company. 
  

 70 

 11F. Independence of Covenants. All covenants hereunder shall be given independent
effect so that if a particular action or condition is prohibited by any one of such covenants, the fact that it would be permitted by an exception to, or otherwise be in compliance within the limitations of, another covenant shall not (i) avoid
the occurrence of a Default or Event of Default if such action is taken or such condition exists or (ii) in any way prejudice an attempt by any Holder to prohibit through equitable action or otherwise the taking of any action by the Company or
any Subsidiary which would result in a Default or Event of Default. 
 11G. Notices. All written communications provided
for hereunder shall be deemed to have been given (1) on the date of personal delivery to the recipient or an officer of the recipient, (2) when sent by telecopy or facsimile machine to the number shown below on the date of such confirmed
facsimile or telecopy transmission (provided that a confirming copy is sent via overnight mail), or (3) on the Business Day following the date when properly deposited for delivery by a nationally recognized commercial overnight delivery
service, prepaid, or by deposit in the United States mail, certified or registered mail, postage prepaid, return receipt requested. Such communications shall be sent (i) if to any Purchaser, addressed to such Purchaser at the address specified
for such communications in the Purchaser Schedule attached hereto, or at such other address as such Purchaser shall have specified to the Company in writing, (ii) if to any other Holder, addressed to such other Holder at such address as such
other Holder shall have specified to the Company in writing or, if any such other Holder shall not have so specified an address to the Company, then addressed to such other Holder in care of the last Holder of such Security which shall have so
specified an address to the Company, and (iii) if to the Company at the address set forth below: 
  

							
		  	 Language Line Holdings, LLC
 c/o ABRY Partners IV, L.P.
 111 Huntington Avenue
 30th Floor
 Boston, MA 02199
	  	
		  	Facsimile:	  	(617) 859-8797	  	
		  	Attention:	  	Peggy Koenig	  	
	
	    A copy of notices to the Company (which will not constitute notice to the Company) shall be sent
to:

			
		  	 Kirkland & Ellis LLP
 Citigroup Center
 153 East 53rd Street
 New York, NY 10022
	  	
		  	Facsimile:	  	(212) 446-4900	  	
		  	Attention:	  	John Kuehn, Esq.	  	

 (provided that provision of such a copy is not required for the effectiveness of any notice
and failure to provide any such copy shall not give rise to any liability), or at such other address as the Company shall have specified to the Holder of each Security in writing; provided, however, that any such communication to the
Company may also, at the option of the Holder of any

  

 71 

 
Security, be delivered by any other means either to the Company at its address specified above or to any officer of the Company. 
 11H. Satisfaction Requirement. If any agreement, certificate or other writing, or any action taken or to be taken, is by the terms of
this Agreement required to be satisfactory to any Purchaser or to the Required Holder(s), the determination of such satisfaction shall be made by such Purchaser or the Required Holder(s), as the case may be, in the sole and exclusive judgment
(exercised in good faith) of the Person or Persons making such determination. 
 11I. GOVERNING LAW. THIS AGREEMENT SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW YORK. 
 11J. SUBMISSION TO JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY SECURITY MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK, OR OF THE UNITED STATES LOCATED IN
THAT STATE AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE COMPANY HEREBY IRREVOCABLY ACCEPTS, UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS WITH RESPECT TO ANY SUCH ACTION OR PROCEEDING. THE COMPANY FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT ITS ADDRESS PROVIDED IN PARAGRAPH 11G, SUCH SERVICE TO BECOME
EFFECTIVE UPON RECEIPT. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER JURISDICTION. THE COMPANY HEREBY
IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN ANY OF THE AFORESAID COURTS AND HEREBY FURTHER
IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 11K. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED
HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH 

  

 72 

 
CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 11L. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 11M. Descriptive Headings; Advice of Counsel; Interpretation. The descriptive headings of the several paragraphs of this Agreement
are inserted for convenience only and do not constitute a part of this Agreement. Each party to this Agreement represents to the other parties to this Agreement than such party has been represented by counsel in connection with the Securities, this
Agreement and the other Transaction Documents, that such party has discussed the Securities, this Agreement and the other Transaction Documents with its counsel and that any and all issues with respect to the Securities, this Agreement and the other
Transaction Documents have been resolved as set forth herein. No provision of any Security, this Agreement or any other Transaction Document shall be construed against or interpreted to the disadvantage of any party hereto by any court or other
governmental or judicial authority by reason of such party having or being deemed to have structured, drafted or dictated such provision. 
 11N. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. 
 11O. Severalty of Obligations. The sales of Securities to the Purchasers are to be several sales, and the obligations of the
Purchasers under this Agreement are several obligations. Except as provided in Paragraph 3, no failure by any Purchaser to perform its obligations under this Agreement shall relieve any other Purchaser or the Company of any of its
obligations hereunder, and no Purchaser shall be responsible for the obligations of, or any action taken or omitted by, any other Purchaser hereunder. 
 11P. Certain Terms. The use of the word “including” herein shall mean “including without limitation.” Any definitions used herein defined in the plural shall be deemed to
include the singular as the context may require and any definitions used herein defined in the singular shall be deemed to include the plural as the context may require. Wherever reference is made herein to the male, female or neuter genders, such
reference shall be deemed to include any of the other genders as the context may require. 
 [REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK] 
  

 73 

 If you are in agreement with the foregoing, please sign the form of acceptance on the
enclosed counterparts of this letter and return the same to the Company, whereupon this letter shall become a binding agreement among the Company and the Purchasers. 
  

					
	 Very truly yours,

	
	LANGUAGE LINE HOLDINGS, LLC
		
	 By:
	 	

		 	 Name:
	 	 C. J. Brucato

		 	 Title:
	 	 Vice President

 The foregoing Agreement is 
 hereby accepted as of the 
 date first above written. 
  

					
	ABRY MEZZANINE PARTNERS, L.P.
		
	By:	 	ABRY MEZZANINE INVESTORS, L.P.,
		 	its general partner
		
	By:	 	ABRY MEZZANINE HOLDINGS LLC
		 	its general partner
		
	By:	 	

		 	Name:	 	Peggy Koenig
		 	Title:	 	Vice President
	
	MERRILL LYNCH CAPITAL CORPORATION
		
	By:	 	

		 	Name:	 	Jack Yann
		 	Title:	 	President
	
	NEW YORK LIFE CAPITAL PARTNERS II, L.P.
		
	By:	 	NYLCAP Manager LLC,
		 	its Investment Manager
		
	By:	 	

		 	Name:	 	Amanda Parness
		 	Title:	 	Vice President

  

 74 

 DISCLOSURE SCHEDULES 
 TO 
 SECURITIES PURCHASE AGREEMENT 

for the purchase of 
 SERIES A PREFERRED UNITS 
 and 
 CLASS D COMMON UNITS 
 Dated as of June 11, 2004 

 Purchaser Schedule 
  

										
	 	  	Aggregate
Number
of
Preferred
Units
to be Purchased	  	Price for
Preferred
Units	  	Aggregate
Number of
Common Units to
be Purchased	  	Price for
Common Units
	 ABRY MEZZANINE PARTNERS, L.P.
 111 Huntington Avenue
 30th Floor
 Boston, MA 02199
 Attn: Mr. Daniel
Budde
	  	47,000,000	  	$	44,957,428	  	2,917,960	  	$2,042,572

 Payments 
 All payments on or in respect of the Preferred Units or Common Units to be by bank wire transfer of Federal or other immediately available funds providing
sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made, to: 
 Citibank N.A. 
 153
East 53rd Street 
 New York, NY 10043 
 ABA # 021000089 
 Beneficiary Bank (BBK) A/C # 09250276 
 Brown Brothers Harriman & Co. NY 
 140 Broadway 
 New York, NY 10005 
 Beneficiary Account (BNF) A/C # 614-896-9 
 BBH as Escrow Agent for ABRY Mezzanine Partners, L.P. 
 Notices 
 All notices and communications to be addressed as first provided above. 

											
	 	  	Aggregate
Number
of Preferred
Units

to be Purchased	  	Price for
Preferred
Units	  	Aggregate
Number of
Common Units to
be Purchased	  	Price for
Common Units
	 NEW YORK LIFE CAPITAL PARTNERS II, L.P.
 51 Madison Avenue
 New York, New York 10010
 Attention: Kevin Smith, Suite 3009
 Telefacsimile Number: (212) 576-5591
	  	20,000,000	  	$	19,130,820.50	  	1,241,685	  	$	869,179.50

 Payments 
 All payments on or in respect of the Preferred Units or Common Units to be by bank wire transfer of Federal or other immediately available funds providing
sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made, to: 
 New York Life Capital Partners II, L.P. 
 Bank: The Bank of New York 
 Account No.: 274221 
 ABA No.: 021000018 
 Attn: Nancy Scotton x4416 
 Purpose: Distribution, etc. 
 Reference: New York Life Capital Partners II, L.P. 
 Notices 
 All notices and communications to be addressed as first provided above, with a copy of
any notices regarding Defaults or Events of Default under the operative documents to: Office of the General Counsel, Investment Section, Room 1107, Fax Number (212) 576-8340. 

											
	 	  	Aggregate
Number
of
Preferred
Units
to be Purchased	  	Price for
Preferred
Units	  	Aggregate
Number of
Common Units to
be Purchased	  	Price for
Common Units
	 MERRILL LYNCH CAPITAL CORPORATION
	  	15,000,000	  	$	14,348,115.20	  	931,264	  	$	651,884.80

 Payments 
 All payments on or in respect of the Preferred Units or Common Units to be by bank wire transfer of Federal or other immediately available funds providing
sufficient information to identify the source of the transfer, the amount of the dividend and/or redemption (as applicable) and the identity of the security as to which payment is being made, to: 
 Bankers Trust, New York 
 ABA# 021-001-033 
 A/C: 00-883-675 
 A/C: ML CAPITAL CORP 
 REF: Language Line – Preferred Units 
 Notices 
 All notices and communications to be
addressed as follows: 
 Merrill Lynch Capital Corporation 
 4 World Financial Center 
 250 Vesey Street 
 New York, NY 10080 
 Fax: (212) 738-1957 
 Attn: Cecile Baker, Vice President 
 With a courtesy copy to: 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attn: Jonathan Schaffzin, Esq. 
 Fax: (212) 269-5420 

 Schedule 6D(h) 
 Affiliate Transactions 
 Agreements with Officers, Directors and
Stockholders: 
  

	1.	Amended and Restated Promissory Note in the principal amount of $995,000 Secured by Deed of Trust, as amended, from Dennis G. Dracup in favor of Language Line, dated as
of the date hereof. 

  

	2.	Amended and Restated Deed of Trust and Assignment of Rents by and between Language Line and Dennis Dracup dated as of the date hereof. 

  

	3.	Amended and Restated Promissory Note Secured by Unit Pledge Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof.

  

	4.	Amended and Restated Unit Pledge Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof. 

  

	5.	Letter Agreement between John M. Seidl and Holdings, dated 9/2/99, as amended on 10/10/00. 

  

	6.	The Company has certain indemnification obligations to its directors and officers contained in the its By-laws. 

  

	7.	The Company has certain obligations to limit the liability of its directors for breach of such directors’ fiduciary duties as directors in the Amended and Restated
Limited Liability Company Agreement, dated as of the date hereof. 

  

	8.	Executive Employment Agreement by and between Language Line and Dennis Dracup dated as of the date hereof. 

  

	9.	Executive Employment Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof. 

  

	10.	Incentive Unit Agreement by and between the Company and the Dennis G. Dracup Declaration of Trust dated 01.19.1999 dated as of the date hereof.

  

	11.	Incentive Unit Agreement by and between the Company and the Christine L. Dracup Declaration of Trust dated 01.19.1999 dated as of the date hereof.

  

	12.	Incentive Unit Agreement by and between the Company and Mathew Gibbs dated as of the date hereof. 

  

	13.	Noncompetition and Nonsolicitation Agreement by and between Language Line, Acquisition Co. and Dennis Dracup dated as of the date hereof. 

  

	14.	Noncompetition and Nonsolicitation Agreement by and between Language Line, Acquisition Co. and Matthew Gibbs dated as of the date hereof. 

 Other Agreements: 
  

	1.	Stock Purchase Agreement among Holdings, OnLine Interpreters, Inc. and the Shareholders set forth on the signature pages thereto, dated 4/30/02.

  

	2.	Deferred Purchase Price Agreement by and among Holdings, the shareholders of OnLine Interpreters, Inc., David J. Jenkins, as the shareholders representative and Bank
Julius Baer & Co. Ltd., dated 5/6/02. 

  

	3.	Closing Liabilities Escrow Agreement by and among Holdings, the shareholders of OnLine Interpreters, Inc. and Bank Julius Baer & Co. Ltd., dated 5/6/02.

  

	4.	Members Agreement by and among the Company, ABRY and the other member signatories thereto, dated as of the date hereof. 

  

	5.	Registration Rights Agreement by and among the Company, ABRY and the other member signatories thereto, dated as of the date hereof. 

  

	6.	Amended and Restated Limited Liability Company Agreement by and among the Company and the Persons listed on the Members Schedule thereto, dated as of the date hereof.

  

	7.	Investor Securities Purchase Agreement by and among the Company and the Persons listed on the Schedule A thereto, dated dated as of the date hereof.

  

	8.	Capital Call Agreement by and among Holdings II, the Company, New York Like Capital Partners, ABRY Mezzanine Partners, L.P. and Merrill dated as of the date hereof.

 Schedule 8G 
 Material Litigation 
 None. 

 Schedule 8L 
 Subsidiaries 
  

	1.	Language Line Holdings II, Inc., a Delaware corporation. The Company owns 100% of the outstanding stock of Language Line Holdings II, Inc. 

  

	2.	Language Line Holdings, Inc., a Delaware corporation. The Company owns 100% of the outstanding stock of Language Line Holdings, Inc. 

  

	3.	Language Line, Inc., a Delaware corporation. The Company owns 100% of the outstanding stock of Language Line, Inc. 

  

	4.	Language Line, LLC, a Delaware corporation. The Company owns 100% of the outstanding stock of Language Line, LLC. 

  

	5.	Language Line Services, Inc., a Delaware corporation. The Company owns 100% of the outstanding stock of Language Line Services, Inc. 

  

	6.	Language Line Dominican Republic, LLC, a Delaware limited liability company. The Company owns 100% of the outstanding membership interest of Language Line Dominican
Republic, LLC. 

  

	7.	Language Line Panama, LLC, a Delaware limited liability company. The Company owns 100% of the outstanding membership interest of Language Line Panama, LLC.

  

	8.	Language Line Panama Corp., a company organized under the laws of Panama. The Company owns 100% of the outstanding stock of Language Line Panama Corp.

  

	9.	Language Line Costa Rica, LLC, a Delaware limited liability company. The Company owns 100% of the outstanding membership interest of Language Line Costa Rica, LLC.

  

	10.	Language Line CR, S.A., a company organized under the laws of Costa Rica. The Company owns 100% of the outstanding stock of Language Line CR, S.A.

  

	11.	Envok, LLC, a Delaware limited liability company. The Company owns 100% of the outstanding membership interest of Envok, LLC. 

  

	12.	OnLine Interpreters, Inc., an Illinois corporation. The Company owns 100% of the outstanding stock of OnLine Interpreters, Inc. 

 Schedule 8M 
 Real Property 
  

	1.	Lease Agreement between RRMCC Holdings, LLC and LLC for space located at 1 Lower Ragsdale Drive, Monterey, California, dated 1/1/01. 

  

	2.	Lease Agreement between LaSalle National Association, formerly known as American National Bank and Trust Company of Chicago, not personally, but solely as Trustee under
Trust Agreement dated 7/16/62 and known as Trust No. 17767 and OnLine Interpreters, Inc. for space located at 7235 N. Linder Ave., Skokie, IL, dated 12/31/01. 

  

	3.	Lease Agreement between Zona Franca San Isidro, S.A. and LLC for space located at the Segundo Piso de la Nueva Nave Modelo A, Industrial Free Zone, San Isidro,
Dominican Republic, dated 10/16/03. 

  

	4.	Lease Agreement between Zona Franca Metropolitana, S.A. and Language Line Services CR, S.A. for space located at Barreal de Heredia, Metro Free Zone, Lot 5aB, San Jose,
Costa Rica, dated 5/1/02. 

  

	5.	Lease Agreement between Terminales Portuarios Panamenos, S.A., d/b/a Panama Canal Railway Company and Language Line Panama, Corp. for space located at Building 408 in
the Corozal Oeste Complex, Corregimiento de Ancon, Panama, dated 12/1/03. 

  

	6.	Lease Agreement between Inmobiliaria Marva and Holdings for space located at the Costa del Este Industrial Park, Bldg 113 Panama City, Panama, dated 5/1/03.

  

	7.	Lease Agreement between City Fund the Mayor and Commonalty and Citizens of the City of London and Envok, LLC for space located at Room 61, The London Fruit and Wool
Exchange, Brushfield Street, London, United Kingdom, dated 8/22/03. 

 Schedule 8O 
 Copyrights, Patents, Permits, Trademarks and Licenses 
 U.S. Trademark
Registration No. 1,750,841 
 Mark: Your Passport to the Languages of the World 
 U.S. Trademark Registration No. 2,747,645 
 Mark: TWO STYLIZED PEOPLE DESIGN 
 U.S. Trademark Registration No. 2,395,797 
 Service Mark: MISCELLANEOUS DESIGN 
 U.S. Trademark
Registration No. 2,395,796 
 Service Mark: MISCELLANEOUS DESIGN COLOR 
 U.S. Trademark Registration No. 2,592,271 
 Service Mark: MISCELLANEOUS DESIGN 
 Registration No. 2 032 380 (Germany) 
 Mark:
LANGUAGE LINE 
 Application No. 30021771 4 (Germany) 
 Mark: LANGUAGE LINE 
 Registration No. TMA592403 (Canada) 
 Mark: LANGUAGE LINE 
 Registration No. B 1516852
(Great Britain) 
 Service Mark: LANGUAGE LINE 
 CTM Registration No. 2250298 (European Union) 
 Mark: TWO STYLIZED PEOPLE DESIGN 
 U.S. Trademark Registration No. 2,497,780 
 Mark: STYLIZED LANGUAGE LINE 
 U.S. Trademark Registration No. 2,511,371 
 Mark: LANGUAGE LINE 
 U.S. Trademark Registration No. 2,589,126 
 Mark: LANGUAGE LINE 
 U.S. Trademark Registration
No. 2,818,333 
 Mark: LANGUAGE LINE UNIVERSITY 
 U.S. Trademark Registration No. 2,751,664 
 Mark: LINGUINATOR 

 U.S. Trademark Registration No. 2,498,056 
 Mark: LIVE INTERPRETER NOW! 
 U.S. Trademark Registration No. 2,498,068 
 Mark: LIVE LANGUAGE NOW! 
 U.S. Trademark
Registration No. 2,498,055 
 Mark: LIVE TRANSLATOR NOW! 
 Benelux Trademark Registration No. 555,765. Owned by LLC as evidenced by the Service Mark Assignment Agreement effective as of March 30, 1999, but still registered in the name of AT&T Corp.
Evidence of the assignment will be filed with the renewal of the trademark in June, 2004. 
 Mark: Language Line 
 China Registration No. 829979. Owned by LLC as evidenced by the Service Mark Assignment Agreement effective as of March 30, 1999, but still registered
in the name of AT&T Corp. Evidence of the assignment will be filed with the renewal of the trademark. 
 Mark: Language Line 
 Denmark: Registration No. 1994VR 8817. Owned by LLC as evidenced by the Service Mark Assignment Agreement effective as of March 30, 1999, but
still registered in the name of AT&T Corp. Evidence of the assignment will be filed with the renewal of the trademark in June, 2004. 
 Mark:
LANGUAGE LINE 
 Greece: Registration No. 120.408. Owned by LLC as evidenced by the Service Mark Assignment Agreement effective as of
March 30, 1999, but still registered in the name of AT&T Corp. Evidence of the assignment will be filed with the renewal of the trademark. 
 Mark: LANGUAGE LINE 
 Registration No. 2282962 (Great Britain) 
 Mark: ENVOK 
 Language Line Services, Inc. has the following pending patent applications: 

 Application No.: 10/618,150 System and Method for Offering Portable Language Interpretation Services (United States). 
 Application No.: WO2003US21744 System and Method for Offering Portable Language Interpretation Services (PCT). 

 Domain Names: 
  

			
	 Name
	  	 Expiration Date

		
	Languagegateway.com	  	10/6/04
	Languageline.at	  	(no date)
	Languageline.co.at	  	(no date)
	LANGUAGELINE.COM	  	1/21/08
	LANGUAGELINE.NET	  	11/24/08
	LANGUAGELINES.COM	  	4/26/08
	LANGUAGELINES.NET	  	4/26/08
	Languagelineservices.com	  	4/29/08
	LANGUAGELINEUNIVERSITY.COM	  	11/7/04
	THELANGUAGELINE.COM	  	5/8/08
	THELANGUAGELINES.COM	  	5/8/08
	liveinterpreternow.com	  	6/2/05
	livetranslatornow.com	  	6/2/05
	phoneinterpretation.com	  	10/6/04
	phonetranslation.com	  	10/6/04
	languagegate.com	  	10/6/04
	phoneinterpret.com	  	10/6/04
	phonetranslate.com	  	10/6/04
	attlanguageline.com	  	10/24/04
	languagelineatt.com	  	10/24/04
	universityoflanguageline.com	  	11/7/04
	interpretation.com	  	1/1/07
	languagelines.org	  	4/26/08
	languageline.org	  	11/25/08
	envok.com	  	9/5/04
	envok.org	  	9/5/04
	livelanguagenow.com	  	5/31/04
	languageline.co.il	  	(no date)
	onlinedocumenttranslation.com	  	5/8/05
	onlinephoneinterpretation.com	  	5/8/05
	onlinetelephoneinterpretation.com	  	5/8/05
	onlinetelephonetranslation.com	  	5/8/05
	overthephoneinterpretationservices.com	  	5/8/05
	overthephoneinterpretation.com	  	5/8/05
	teleinterpreter.com	  	5/8/05
	telephoneinterpretation.com	  	5/8/05
	telephonetranslate.com	  	5/8/05

 Licenses: 
 Blue Pumpkin Software, Inc. – Software License Agreement (shrinkwrap license purchased for more than $5,000). 

 Software License and Services Agreement between Oracle Corporation and Language Line, LLC, dated 3/31/99.

 Tech Excel, Inc. – Software License and Warranty Agreement (shrinkwrap license purchased for more than $5,000). 
 Nice – End-User License Agreement for Nice Call Reporting Software (shrinkwrap license purchased for more than $5,000). 
 Avaya, Inc. – End User License for Call Management System Software (shrinkwrap license purchased for more than $5,000). 
 Actuate Corporation – Software License Agreement for Actuate Reporting Software (shrinkwrap license purchased for more than $5,000). 
 Software License Agreements between Comverse Infosys, Inc. and Language Line Services, Inc., dated 3/19/01 for Items GEN-ADMS-0, GEN-PLYL-10, ULT-G3AS-0,
ULT-EVAL-401, GEN-EVAL-10, ULS-BASE-16, ULS-PLAY-LC-1, ULS-EVAL-O, ULS, G3AS-0 and ULT-NTA-0. 
 Software License Certificates for Product Nos.
A08574F, A08582C, A08575C from Veritas, dated 12/24/03. 
 End User License Agreement for Microsoft Desktop Operating Systems for Microsoft
Windows 2000 Professional software purchased on 5/4/04. 
 License Agreement for Checkpoint software, VPN-1 Secure Client for $21,113.

 Claims: 
 Cyracom
International, Inc. v. Language Line, LLC was dismissed on February 22, 2001 with prejudice against Cyracom International, Inc. (“Cyracom”) and without prejudice against LLC. In this claim, Cyracom accused LLC of infringing on a
patent Cyracom claimed it owned. LLC contended that such patent was invalid. 
 Language Line, LLC v. Omni Lingual Services Inc. was
dismissed on December 1, 2003. In this claim, LLC claimed that Omni Lingual Services Inc. (“Omni”) used a tradename in connection with its over-the-phone interpretation services that infringed upon LLC’s registered trademarks.
Omni agreed to stop using this tradename in connection with its over-the-phone interpretation services. A settlement agreement was entered into between the parties on 6/3/04. 

 Schedule 8U(1) 
 Material Credit Documents 
  

	1.	Revolving Credit Note from Language Line to any Lender under the Senior Credit Agreement. 

  

	2.	Tranche B Term Note from Language Line to any Lender under the Senior Credit Agreement. 

  

	3.	Incremental Term Note from Language Line to any Lender under the Senior Credit Agreement. 

  

	4.	Swing Line Note from Language Line to any Swing Line Lender under the Senior Credit Agreement. 

  

	5.	Security Agreement (and Exhibits thereto) 

  

	6.	Trademark Security Agreement 

  

	7.	Senior Credit Agreement (and Exhibits thereto) 

  

	8.	Subsidiary Guarantee 

  

	9.	Parent Guarantee 

 Schedule 8U(2) 
 Material Subordinated Note Documents 
  

	1.	Senior Discount Notes. 

  

	2.	Subordinated Notes. 

  

	3.	Purchase Agreement by and among Language Line Holdings, Inc. and the Purchasers thereunder for the purchase of the Senior Discount Notes, dated June 3, 2004.

  

	4.	Purchase Agreement by and among Language Line, Inc. and the Purchasers thereunder for the purchase of the Subordinated Notes, dated June 3, 2004.

  

	5.	Indenture by Language Line Holdings, Inc. for the issuance of the Senior Discount Notes, dated June 3, 2004. 

  

	6.	Indenture by Language Line, Inc. for the issuance of the Subordinated Notes, dated June 3, 2004. 

  

	7.	Registration Rights Agreement by and among Language Line Holdings, Inc. and the signatories thereto for the issuance of the Senior Discount Notes, dated June 3,
2004. 

  

	8.	Registration Rights Agreement by and among Language Line, Inc. and the signatories thereto for the issuance of the Subordinated Notes, dated June 3, 2004.

 Schedule 8U(3) 
 Material Acquisition Documents 
  

	1.	Agreement and Plan of Merger by and among 

  

	2.	Amendment to Agreement and Plan of Merger by and among Holdings, Acquisition Co. and Language Line dated as of the date hereof. 

  

	3.	Agency and Escrow Agreement by and among Holdings, Acquisition Co., Providence Equity Partners, Inc., and The Capital Trust Company of Delaware dated as of the date
hereof. 

  

	4.	Certificate of Merger dated as of the date hereof. 

 Schedule 8U(4) 
 Material Equity Documents 
  

	1.	Amended and Restated Limited Liability Company Agreement for the Company dated as of the date hereof. 

  

	2.	Members Agreement by and among the Company, ABRY and the other member signatories thereto dated as of the date hereof. 

  

	3.	Registration Rights Agreement by and among the Company, ABRY and the other member signatories thereto dated as of the date hereof. 

  

	4.	Investor Securities Purchase Agreement by and among the Company and the Persons listed on the Schedule A thereto dated as of the date hereof. 

 

	5.	Executive Employment Agreement by and between Language Line and Dennis Dracup dated as of the date hereof. 

  

	6.	Executive Employment Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof. 

  

	7.	Noncompetition and Nonsolicitation Agreement by and between Language Line, Acquisition Co. and Dennis Dracup dated as of the date hereof. 

  

	8.	Noncompetition and Nonsolicitation Agreement by and between Language Line, Acquisition Co. and Matthew Gibbs dated as of the date hereof. 

  

	9.	Incentive Unit Agreement by and between the Company and Phil Speciale dated as of the date hereof. 

  

	10.	Incentive Unit Agreement by and between the Company and Jeanne Anderson dated as of the date hereof. 

  

	11.	Incentive Unit Agreement by and between the Company and Dennis Bailey dated as of the date hereof. 

  

	12.	Incentive Unit Agreement by and between the Company and James Moore dated as of the date hereof. 

  

	13.	Amended and Restated Promissory Note Secured by Deed of Trust by and between Language Line and Dennis Dracup dated as of the date hereof. 

  

	14.	Amended and Restated Deed of Trust and Assignment of Rents by and between Language Line and Dennis Dracup dated as of the date hereof. 

  

	15.	Amended and Restated Promissory Note Secured by Unit Pledge Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof.

	16.	Amended and Restated Unit Pledge Agreement by and between Language Line and Matthew Gibbs dated as of the date hereof. 

 Schedule 8V(2) 
 Organizational Chart 
 
 Language Line 
 Post-Closing Legal Structure 

 

 

 Schedule 8W 
 Existing Indebtedness 
  

	1.	UCC Financing Statement from OnLine Interpreters, Inc., as debtor, to CIT Communications Finance Corporation, covering a capital lease in the amount of $127,000, filed
February 21, 2001 as No. 4341676. 

 EXHIBIT A 

 AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF

 LANGUAGE LINE HOLDINGS, LLC 
 A Delaware Limited Liability Company 
 Dated as of June 11, 2004

 TABLE OF CONTENTS 
  

					
	 ARTICLE I Definitions
	  	1
	 1.1
	  	Definitions	  	1
	 1.2
	  	Other Definitional Provisions	  	16
		
	 ARTICLE II Organization of the Company
	  	16
	 2.1
	  	Formation	  	16
	 2.2
	  	Name	  	16
	 2.3
	  	Principal Place of Business	  	17
	 2.4
	  	Registered Office and Registered Agent	  	17
	 2.5
	  	Term	  	17
	 2.6
	  	Purposes and Powers	  	17
		
	 ARTICLE III Management of the Company
	  	17
	 3.1
	  	Board of Directors	  	17
	 3.2
	  	Committees of the Board	  	20
	 3.3
	  	Officers	  	20
	 3.4
	  	Performance of Duties; Liability of Directors and Officers	  	22
	 3.5
	  	Indemnification	  	22
		
	 ARTICLE IV Members; Voting Rights
	  	23
	 4.1
	  	Meetings of Members	  	23
	 4.2
	  	Voting Rights	  	24
	 4.3
	  	Registered Members	  	24
	 4.4
	  	Limitation of Liability	  	24
	 4.5
	  	Withdrawal; Resignation	  	24
	 4.6
	  	Death of a Member	  	24
	 4.7
	  	Authority	  	24
	 4.8
	  	Outside Activities	  	25
		
	 ARTICLE V Units; Membership
	  	25
	 5.1
	  	Units Generally	  	25
	 5.2
	  	Authorization and Issuance of Units	  	25
	 5.3
	  	Unit Certificates	  	26
	 5.4
	  	Issuance of Units	  	26
	 5.5
	  	New Members from the Issuance of Units	  	26
	 5.6
	  	Treatment of Repurchased Class C Common Units	  	26
	 5.7
	  	Effect on Dilution Factor of Certain Events	  	27
	 5.8
	  	Determination of Class D Common Redemption Price	  	28
		
	 ARTICLE VI Capital Contributions and Capital Accounts
	  	29
	 6.1
	  	Capital Contributions	  	29
	 6.2
	  	Capital Accounts	  	29
	 6.3
	  	Negative Capital Accounts	  	31
	 6.4
	  	No Withdrawal	  	31

  

 -i- 

					
	 6.5
	  	Loans From Unitholders	  	31
	 6.6
	  	Status of Capital Contributions	  	31
		
	 ARTICLE VII Distributions
	  	31
	 7.1
	  	Generally	  	31
	 7.2
	  	Order of Priority	  	31
	 7.3
	  	No Right to Receive Certain Distributions	  	33
	 7.4
	  	Tax Advances	  	34
	 7.5
	  	Indemnification and Reimbursement for Payments on Behalf of a Unitholder	  	34
	 7.6
	  	Non-Cash Distributions	  	35
	 7.7
	  	Redemption of Series A Preferred Units	  	35
		
	 ARTICLE VIII Allocations
	  	35
	 8.1
	  	Regular Allocations	  	35
	 8.2
	  	Regulatory and Special Allocations	  	37
	 8.3
	  	Curative Allocations	  	38
	 8.4
	  	Tax Allocations	  	38
	 8.5
	  	Certain General Provisions	  	39
		
	 ARTICLE IX Elections and Reports
	  	39
	 9.1
	  	Generally	  	39
	 9.2
	  	Tax Status	  	39
	 9.3
	  	Reports	  	39
	 9.4
	  	Tax Elections	  	39
	 9.5
	  	Tax Controversies	  	39
	 9.6
	  	UBTI/ECI	  	40
		
	 ARTICLE X Dissolution and Liquidation
	  	40
	 10.1
	  	Dissolution	  	40
	 10.2
	  	Liquidation	  	41
		
	 ARTICLE XI Transfer of Units
	  	42
	 11.1
	  	Restrictions	  	42
	 11.2
	  	General Restrictions on Transfer	  	42
	 11.3
	  	Procedures for Transfer	  	43
	 11.4
	  	Legend	  	44
	 11.5
	  	Limitations	  	44
		
	 ARTICLE XII Miscellaneous Provisions
	  	45
	 12.1
	  	Notices	  	45
	 12.2
	  	Governing Law	  	45
	 12.3
	  	Headings and Sections	  	46
	 12.4
	  	Amendment and Waiver	  	46
	 12.5
	  	Binding Effect	  	48
	 12.6
	  	Counterparts	  	48
	 12.7
	  	Severability	  	49

  

 -ii- 

					
	 12.8
	  	Remedies	  	49
	 12.9
	  	Waiver of Jury Trial	  	49
	 12.10
	  	No Strict Construction	  	49
	 12.11
	  	Entire Agreement	  	49
	 12.12
	  	Parties in Interest	  	49
	 12.13
	  	Inconsistent Provisions of the Members Agreement	  	50
	 12.14
	  	Submission to Jurisdiction	  	50
	 12.15
	  	Time of the Essence; Computation of Time	  	50
	 12.16
	  	Certain Terms	  	50

 EXHIBITS:

  

			
	Exhibit A	  	Form of Joinder to Amended and Restated Limited Liability Company Agreement
		
	Exhibit B	  	Distribution Examples

 SCHEDULES: 

  

			
	Schedule A	  	Officers of the Company as of June 11, 2004
		
	Schedule B	  	Members Schedule as of June 11, 2004

  

 -iii- 

 AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF

 LANGUAGE LINE HOLDINGS, LLC 
 AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) dated as of June 11, 2004 of Language Line Holdings, LLC, a Delaware limited liability company (the
“Company”), by and among the Company and the Persons from time to time parties to this Agreement and listed on the Members Schedule attached hereto. Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in Section 1.1. 
 WHEREAS, on the date hereof, the Company will issue
(i) Series A Preferred Units and Class D Common Units pursuant to the terms of the Preferred Securities Purchase Agreement, (ii) Class A Common Units pursuant to the terms of the Investors Securities Purchase Agreement, and
(iii) Class C Common Units pursuant to the terms of the Incentive Unit Agreements; 
 WHEREAS, the Persons acquiring Units
on the date hereof as described in clauses (i) through (iii) in the immediately preceding recital shall be admitted as Members of the Company; and 
 WHEREAS, this Agreement amends and restates in its entirety the Limited Liability Company Agreement of Language Line Holdings, LLC dated as of April 14, 2004 (the “Existing
Agreement”). 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein made and other good and
valuable consideration, the parties hereto hereby amend and restate the Existing Agreement in its entirety as follows: 
 ARTICLE I 
 Definitions 
 1.1 Definitions. The following terms used in this Agreement shall have the following meanings (unless otherwise expressly provided in this Agreement): 
 “ABRY Directors” has the meaning set forth in the Members Agreement. 
 “ABRY Partners” means ABRY Partners IV, L.P., a Delaware limited partnership. 
 “Adjusted Capital Account Deficit” means, with respect to any Capital Account as of the end of any Fiscal Year or other
period, the amount (if any) by which the balance in such Capital Account is less than zero. For this purpose, such Person’s Capital Account balance will be (a) reduced for any items described in Treasury Regulation
Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6), and (b) increased for any amount such Person is obligated to contribute to the Company or is treated as being so obligated pursuant to Treasury Regulation
Section 1.704-1(b)(2)(ii)(c) (relating to partner liabilities to a partnership) or 1.704-2(g)(1) and 1.704-2(i) (relating to minimum gain). 

 “Adjusted Taxable Income” of a Unitholder for a Fiscal Year (or portion
thereof) with respect to Units held by such Unitholder means the federal taxable income allocated by the Company to the Unitholder with respect to such Units (as adjusted by any final determination in connection with any tax audit or other
proceeding) for such Fiscal Year (or portion thereof); provided that such taxable income (or alternative minimum taxable income, as the case may be) shall be computed (i) as if all excess taxable losses and excess taxable credits
allocated with respect to such Units were carried forward (taking into account the character of any such loss carryforward as capital or ordinary), and (ii) taking into account any special basis adjustment with respect to such Unitholder
resulting from an election by the Company under Code Section 754. 
 “Affiliate” means with respect to any
Person, any other Person controlling, controlled by, or under common control with such first Person. For the purpose of this definition, “control,” when used with reference to any specified Person, means the power to direct the management
and policies of such specified Person, directly or indirectly, whether through the ownership of voting securities or partnership or other ownership interests, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing. 
 “Agreement” has the meaning set forth in the preamble.

 “AMP” means ABRY Mezzanine Partners, L.P., a Delaware limited partnership. 
 “Bankruptcy” means, with respect to a Member, (i) that such Member has (A) made an assignment for the benefit of
creditors; (B) filed a voluntary petition in bankruptcy; (C) been adjudged bankrupt or insolvent, or had entered against such Member an order of relief in any bankruptcy or insolvency proceeding; (D) filed a petition or an answer
seeking for such Member any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation or filed an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against such Member in any proceeding of such nature; or (E) sought, consented to, or acquiesced in the appointment of a trustee, receiver or liquidation of such Member or of all or any substantial part of such
Member’s properties; (ii) 120 days have elapsed after the commencement of any proceeding against such Member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law
or regulation and such proceeding has not been dismissed; or (iii) 90 days have elapsed since the appointment without such Member’s consent or acquiescence of a trustee, receiver or liquidator of such Member or of all or any substantial
part of such Member’s properties and such appointment has not been vacated or stayed or the appointment is not vacated within 90 days after the expiration of such stay. 
 “Board” has the meaning set forth in Section 3.1(a). 
 “Book Value” means, with respect to any Company asset, the adjusted basis of such asset for federal income tax purposes,
except as follows: 
 (a) The initial Book Value of any Company asset contributed by a Unitholder to the Company
shall be the gross Fair Market Value of such Company asset as of the date of such contribution; 
  

 - 2 - 

 (b) The Book Value of each Company asset shall be adjusted to equal its
gross Fair Market Value, as of the following times: (i) the acquisition of an additional interest in the Company by any new or existing Unitholder in exchange for more than a de minimis Capital Contribution; (ii) the distribution by
the Company to a Unitholder of more than a de minimis amount of Company assets (other than cash) as consideration for all or part of its Units unless the Board determines that such adjustment is not necessary to reflect the relative economic
interests of the Unitholders in the Company; and (iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); 
 (c) The Book Value of a Company asset distributed to any Unitholder shall be the Fair Market Value of such Company asset as
of the date of distribution thereof; 
 (d) The Book Value of each Company asset shall be increased or decreased,
as the case may be, to reflect any adjustments to the adjusted basis of such Company asset pursuant to Section 734(b) or Section 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining Capital
Account balances pursuant to Treasury Regulations Section § 1.704-1(b)(2)(iv)(m); provided that Book Values shall not be adjusted pursuant to this subparagraph (d) to the extent that an adjustment pursuant to subparagraph
(b) above is made in conjunction with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (d); and 
 (e) If the Book Value of a Company asset has been determined or adjusted pursuant to subparagraph (a), (b) or (d) above, such Book Value shall thereafter be adjusted to reflect the Depreciation
taken into account with respect to such Company asset for purposes of computing Profits and Losses. 
 “Business
Day” means any day other than a Saturday, Sunday or day on which commercial banks in New York, New York are authorized or required by law to close. 
 “Call Agreement” means the Capital Call Agreement, dated as of the date hereof, among ABRY Partners, the Company, Language Line Holdings II, Inc., Merrill, New York Life, and AMP, as
amended, restated or otherwise modified from time to time. 
 “Capital Account” means the capital account
maintained for a Member pursuant to Section 6.2. 
 “Capital Contribution” means any contribution
to the capital of the Company in cash or property by a Member, whenever made. 
 “Catch-Up Amount” at any time
means the largest aggregate amount of Distributions (on a per-Point basis) which has theretofore been paid in respect of any single Common Unit. 
 “CEO Director” has the meaning set forth in the Members Agreement. 
 “Certificate” has the meaning set forth in Section 2.1. 
 “Chairman” has
the meaning set forth in Section 3.1(f). 
  

 - 3 - 

 “Class A Common Unit” means a Unit having the rights and obligations
specified with respect to “Class A Common Units” in this Agreement. 
 “Class B Common Unit” means a
Unit having the rights and obligations specified with respect to “Class B Common Units” in this Agreement. 
 “Class C Common Unit” means a Class C-1 Common Unit, a Class C-2 Common Unit, a Class C-3 Common Unit, or any other Unit of any Series of Class C Common Units established in any Class C Common Unit Designation. 

“Class C Common Unit Designation” means a written designation of the rights and obligations specified for a Series of
Class C Common Units (or for more than one Series of Class C Common Units), other than Class C-1 Common Units, Class C-2 Common Units or Class C-3 Common Units, that is approved by the Board and executed (including by means of a joinder) by the
initial holder or holders of Class C Common Units of such Series, which written designation (as in effect from time to time) will be a part of this Agreement as if it were fully set forth in this document. 
 “Class C-1 Common Unit” means a Unit having the rights and obligations specified with respect to “Class C-1 Common
Units” in this Agreement. 
 “Class C-2 Common Unit” means a Unit having the rights and obligations
specified with respect to “Class C-2 Common Units” in this Agreement. 
 “Class C-3 Common Unit”
means a Unit having the rights and obligations specified with respect to “Class C-3 Common Units” in this Agreement. 
 “Class D Common Unit” means a Unit having the rights and obligations specified with respect to a “Class D Common Unit” in this Agreement. 
 “Class D Majority” means holders of a majority of the Class D Common Units; provided that such approving holders must
include at least one Continuing Class D Common Holder if at the time such action is approved there is any Continuing Class D Common Holder. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Common Capital Value” means, for any Class A Common Unit, the sum of the amount of cash paid or the Fair Market Value of other property contributed to the Company for such
Class A Common Unit. The Common Capital Value for each Class A Common Unit issued on the date of this Agreement is $1.00. 
 “Common Units” means, collectively, the Class A Common Units, the Class B Common Units, the Class C Common Units, and the Class D Common Units and any New Units of any Class that are stated to be Common Units in the
applicable New Unit Designation. 
 “Company” has the meaning set forth in the preamble. 
  

 - 4 - 

 “Company Minimum Gain” has the meaning set forth for “partnership
minimum gain” in Treasury Regulation
 Section 1.704-2(d). 
 “Continuing Class A Common
Holder” means (i) Merrill, at any time when Merrill, together with its Affiliates, holds Class A Common Units that constitute a majority of the Class A Common Units acquired by Merrill on the date of this Agreement, or
(ii) New York Life, at any time when New York Life, together with its Affiliates, holds Class A Common Units that constitute a majority of the Class A Common Units acquired by New York Life on the date of this Agreement. 

 “Continuing Class D Common Holder” means (i) Merrill, at any time when Merrill, together
with its Affiliates, holds Class D Common Units that constitute a majority of the Class D Common Units acquired by Merrill on the date of this Agreement, or (ii) New York Life, at any time when New York Life, together with its Affiliates, holds
Class D Common Units that constitute a majority of the Class D Common Units acquired by New York Life on the date of this Agreement.  
 “Continuing Series A Preferred Holder” means (i) Merrill, at any time when Merrill, together with its Affiliates, holds Series A Preferred Units that constitute a majority of
the Series A Preferred Units acquired by Merrill on the date of this Agreement, or (ii) New York Life, at any time when New York Life, together with its Affiliates, holds Series A Preferred Units that constitute a majority of the Series A
Preferred Units acquired by New York Life on the date of this Agreement.  
 “Convertible Securities”
means any membership interest or other debt or equity security of the Company or any of its Subsidiaries that, directly or indirectly, is convertible into or exchangeable for any membership interest of the Company having Points. 
 “Delaware Act” means the Delaware Limited Liability Company Act, as the same may be amended from time to time. 

“Depreciation” means, for each Fiscal Year, an amount equal to the depreciation, amortization, or other cost recovery
deduction allowable with respect to an asset for such Fiscal Year, except that if the Book Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year, Depreciation shall be an amount which
bears the same ratio to such beginning Book Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted tax basis; provided that if the adjusted basis for
federal income tax purposes of an asset at the beginning of such Fiscal Year is zero and the Book Value of the asset is positive, Depreciation shall be determined with reference to such beginning Book Value using any permitted method selected by the
Board. 
 “Dilution Factor” shall initially be 1.00, provided that upon the occurrence of a Dilutive
Event the “Dilution Factor” shall be adjusted to the number equal to the quotient determined by dividing: 
 (A) the sum of (i) the Fair Market Value (as determined by the Board) of all of the Units having Points and outstanding immediately prior to such Dilutive Event (on a fully-diluted basis) and (ii) the Fair Market Value of the
newly issued Units or the incremental Points, as the case may be, that constitutes such Dilutive Event; by 
  

 - 5 - 

 (B) the sum of (i) the consideration, if any, received by the Company
and/or its Subsidiaries as a result of such Dilutive Event, and (ii) the amount described in clause (A)(i) above; 
 provided that
for purposes of illustration only, Exhibit B sets forth an example of the application of the provisions of Section 7.2 following a Dilutive Event and a corresponding adjustment of the Dilution Factor. 
 “Dilutive Event” means any event (other than a Permitted Dilutive Event) pursuant to which the aggregate number of Points
represented by the outstanding Units increases (whether by reason of the issuance of Units having Points, or the making of a Capital Contribution which results in the Points represented by any previously outstanding Unit being increased), or is
deemed to have increased as provided in Section 5.7, if less than Fair Market Value (as determined by the Board) is received by the Company and its Subsidiaries with respect to the such increase in Points; provided,
however, that the Board’s good faith determination of the Fair Market Value of any such additional Units having Points or of such incremental Points shall be described in reasonable detail in a written notice (a “FMV
Notice”) to holders of Class D Common Units given not less than 30 days prior to the effective date of any such Dilutive Event; provided, further, that if any Outside Class D Majority reasonably asserts that the aggregate Fair
Market Value of such additional Units or of the incremental Points in question exceeds $2,000,000 and such Outside Class D Majority provides the Company with written notice, delivered within 15 days of their receiving the applicable FMV Notice, to
the effect that they believe the Fair Market Value of such additional Units or incremental Points is greater than that described in the FMV Notice, the Company shall (unless the Company (with the approval or ratification by the Board) and any
Outside Class D Majority otherwise agree in writing as to the Fair Market Value of such additional Units or incremental Points, in which case such determination will be binding upon the Company, the holders of Outside Investor Class D Common Units
and all other holders of Units) engage an Independent Financial Advisor reasonably acceptable to the Company and any Outside Class D Majority to determine the Fair Market Value of such additional Units or incremental Points and such determination
shall be binding upon the Company, the holders of Outside Investor Class D Common Units and all other holders of Units. The fees, costs and expenses of the Independent Financial Advisor shall be borne (i) if the Fair Market Value as determined
by the Independent Financial Advisor exceeds the Fair Market Value as determined by the Board, then by the Company and (ii) if the Fair Market Value as determined by the Independent Financial Advisor is equal to or less than the Fair Market
Value as determined by the Board, then by the holders of Outside Investor Class D Common Units (pro rata among such holders based upon the number of Class D Common Units held by them). The Company will use good faith efforts timely to deliver
each FMV Notice; provided that the Company’s failure to timely deliver a FMV Notice will not affect the validity of the related issuance of Units or increase in Points and, if the Company does not timely deliver any FMV Notice and any
Outside Class D Majority reasonably asserts that the aggregate Fair Market Value of such additional Units or of the incremental Points in question exceeds $2,000,000, then such Outside Class D Majority may dispute the Board’s determination of
Fair Market Value for the issuance or increase in question at any time on or prior to the 15th day after the Company actually gives the holders of Outside Investor Class D Common Units an FMV Notice for such issuance or increase. 
  

 - 6 - 

 “Directors” has the meaning set forth in Section 3.1(a).

 “Distribution” means each distribution made by the Company to a Member, whether in cash, securities of the
Company or other property and whether by liquidating distribution, redemption, repurchase or otherwise; provided that none of the following will be a Distribution: (a) any redemption or repurchase by the Company of any Unit from any
employee or former employee of the Company or any Subsidiary of the Company which is approved by the Board, (b) any recapitalization or exchange of securities of the Company that does not violate terms of the Related Agreements, and
(c) any subdivision (by Unit split or otherwise) or any combination (by reverse Unit split or otherwise) of any outstanding Units that does not violate terms of the Related Agreements. 
 “Dracup Trusts” means the Dennis G. Dracup Declaration of Trust dated January 19, 1999 and the Christine L. Dracup
Declaration of Trust dated January 19, 1999. 
 “Equity Securities” of a Person means, as applicable,
(i) any capital stock, membership interests or other share capital of such Person, (ii) any securities of such Person directly or indirectly convertible into or exchangeable for any capital stock, membership interests or other share
capital (whether voting or non-voting, whether preferred, common or otherwise) of such Person or containing any profit participation features with respect to such Person, (iii) any rights or options directly or indirectly to subscribe for or to
purchase any capital stock, membership interests, other share capital of such Person or securities containing any profit participation features with respect to such Person or directly or indirectly to subscribe for or to purchase any securities
directly or indirectly convertible into or exchangeable for any capital stock, membership interests, other share capital of such Person or securities containing any profit participation features with respect to such Person, (iv) any share or
Unit appreciation rights, phantom share or Unit rights, contingent interest or other similar rights relating to such Person, or (v) any Equity Securities of such Person issued or issuable with respect to the securities referred to in clauses
(i) through (iv) above in connection with a combination of Units, recapitalization, merger, consolidation or other reorganization. Unless the context otherwise requires, the term “Equity Securities” refers to Equity Securities of
the Company or any successor corporation of the Company. 
 “Estimated Tax Amount” of a Unitholder for a Fiscal
Year means the Unitholder’s Tax Amount for such Fiscal Year as estimated in good faith from time to time by the Board. In making such estimate, the Board shall take into account amounts shown on Internal Revenue Service Form 1065 filed by the
Company and similar state or local forms filed by the Company for the preceding taxable year and such other adjustments as in the reasonable business judgment of the Board are necessary or appropriate to reflect the estimated operations of the
Company for the Fiscal Year. 
 “Existing Agreement” has the meaning set forth in the recitals hereto.

  

 - 7 - 

 “Fair Market Value” of any asset as of any date means the purchase price
that a willing buyer having all relevant knowledge would pay a willing seller for such asset in an arm’s-length transaction; provided, however, that for purposes of Section 5.7(d), the Fair Market Value of any property
(other than cash or cash equivalents) contributed to the Company or any of its Subsidiaries shall be (A) in the case of securities listed on any national securities exchange or quoted on the NASDAQ Stock Exchange (the “Nasdaq”)
or the over-the-counter market, the average of the closing prices of the sales of securities of the type in question, on all securities exchanges on which such securities may at the time be listed, or, if there have been no sales on any such
exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day such securities are not so listed, the average of the representative bid and asked prices quoted on the
Nasdaq as of 4:00 P.M., New York time, or, if on any day such securities are not quoted on the Nasdaq, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation
Bureau, LLC or any similar successor organization, in each such case averaged over a period of 21 days consisting of the day as of which the Fair Market Value is being determined and the 20 consecutive trading days prior to such day, and (B) in
the case where the contributed property consists of (1) securities that are not listed on any securities exchange or quoted on the Nasdaq or the over-the-counter market, or (2) property other than securities, such amount as determined in
good faith by a Majority of the Board that includes a majority of the Non-ABRY Directors (subject to the provisions of the term “Dilutive Event”); provided that: 
 (a) the “Fair Market Value” of any Unit at any time is the aggregate amount that the holder of such Unit
would receive by reason of such Unit if (after giving effect to the transactions consummated in connection with the issuance of such Unit, if Fair Market Value is being determined as of the time such Unit is issued) the assets of the Company were
sold, as a going concern, for their Fair Market Value in cash and the proceeds of such sale (after repayment of all indebtedness of the Company and a deduction for expenses that would reasonably be expected to be incurred by a seller in such a sale)
were distributed to the holders of Units in accordance with Section 7.2; and 
 (b) the “Fair
Market Value” of any additional or incremental Points for an outstanding Unit refers to the aggregate amount that the holder of such Unit would receive by virtue of such additional or incremental Points if, after giving effect to the
transactions consummated in connection with the related increase in the Points, the assets of the Company were sold, as a going concern, for their Fair Market Value in cash and the proceeds of such sale (after repayment of all indebtedness of the
Company and a deduction for expenses that would reasonably be expected to be incurred by a seller in such a sale) were distributed to the holders of Units in accordance with Section 7.2. 
 “Fiscal Year” means the Company’s Taxable Year. 
 “GCL” means the General Corporate Law of the State of Delaware, as the same may be amended from time to time. 

“Incentive Unit Purchase Agreement” means each of the Incentive Unit Purchase Agreements by and between the Company and
certain Persons to whom Class C Common Units may be issued from time to time either on the date hereof or in the future, as in effect from time to time. 
  

 - 8 - 

 “Indemnifying Unitholder” has the meaning set forth in
Section 7.5. 
 “Independent Financial Advisor” shall mean a nationally recognized accounting,
appraisal, investment banking firm or consultant in the United States that is, in the good faith judgment of the Board, independently qualified to perform the task for which it has been engaged. 
 “Investors Securities Purchase Agreement” means the Investors Securities Purchase Agreement, dated as of the date hereof,
by and among the Company, ABRY Partners and the other Persons acquiring Class A Common Units thereunder, as in effect from time to time. 
 “Liquidator” has the meaning set forth in Section 10.2(a). 
 “Losses” has the meaning set forth in Section 6.2(b). 
 “Majority of the
Board” means, at any time, a combination of the Directors having a majority of the votes (as determined pursuant to Section 3.1) of all of the Directors who are then elected. 
 “Majority of the Members” means, at any time, Members that hold a majority of the Voting Units that are outstanding
at such time and that are held by the Members.  
 “Majority Redeeming Class D Holders” means, at
any time when any holder(s) have elected to require that Class D Common Units be redeemed, any holder(s) of a majority of the Class D Common Units to be redeemed (provided that such holders include a Continuing Class D Common Holder if any
Continuing Class D Common Holder is a holder of Class D Common Units to be redeemed).  
 “Member” means
each Person identified on the Members and Option Holders Schedule as of the date hereof who has executed this Agreement or a counterpart hereof and each Person who may hereafter be admitted as a Member in accordance with the terms of this Agreement.
The Members shall constitute the “members” (as that term is defined in the Delaware Act) of the Company. 
 “Members Agreement” means the Members Agreement, dated as of the date hereof, by and among the Company and the Members named therein, as in effect from time to time. 
 “Members Schedule” has the meaning set forth in Section 5.1. 
 “Membership Interest” means the interest acquired by a Member in the Company, including such Member’s right (based on
the type and class and/or series of Unit or Units held by such Member), as applicable, (a) to a distributive share of Profits, Losses, and other items of income, gain, loss, deduction and credits of the Company, (b) to a distributive share
of the assets of the Company, (c) to vote on, consent to or otherwise participate in any decision of the Members, and (d) to any and all other benefits to which such Member may be entitled as provided in this Agreement or the Delaware Act.

  

 - 9 - 

 “Merrill” means Merrill Lynch Capital Corporation. 
 “Net Loss” means the excess, if any, of the Company’s items of Loss over the Company’s items of Profit for the
Fiscal Year or for any other accounting period for which a calculation of Net Loss is necessary. 
 “Net
Profit” means the excess, if any, of the Company’s items of Profit over the Company’s items of Loss for the Fiscal Year or for any other accounting period for which a calculation of Net Profit is necessary. 
 “New Unit Designation” means a written designation of the rights and obligations specified for a Class of Units or a Series
of any Class of Units (or for more than one Class or Series of any Class of such Units), other than Class A Common Units, Class B Common Units, Class C Common Units, Class D Common Units or Class E Common Units, that is approved by the Board
and executed (including by means of a joinder) by the initial holder or holders of Units of such Class or Series, which written designation (as in effect from time to time) will be a part of this Agreement as if it were fully set forth in this
document. 
 “New Units” means any Membership Interests authorized in any New Unit Designation. 
 “New York Life” means New York Life Capital Partners II, L.P. 
 “Non-ABRY Director” means any Director other than an ABRY Director. 
 “Non-Distribution Amount” means (i) $1.00, for each Class C-1 Common Unit, (ii) $2.00, for each Class C-2 Common
Unit, (iii) $2.60, for each Class C-3 Common Unit or (iv) the “Non-Distribution Amount” specified in the related Class C Common Designation, for each Class C Common Unit of any other Series, in the case of clause (i) through
(iv), as equitably adjusted for any Unit split or other combination or subdivision of Units. 
 “Officers” has
the meaning set forth in Section 3.3 hereof. 
 “Option” means any option, warrant or other right
directly or indirectly exercisable for (a) any membership interest having Points, or (b) any Convertible Security, in each case, as may be issued by the Company from time to time. 
 “Outside Class D Majority” means any holder(s) of Outside Investor Class D Common Units that hold(s) a majority of the
Outside Investor Class D Common Units (provided that such holder(s) include at least one Continuing Class D Common Holder if at such time there is any Continuing Class D Common Holder). 
  

 - 10 - 

 “Outside Investor Class D Common Units” means the Class D Common Units,
other than any Class D Common Unit held by AMP or any of its Affiliates. 
 “Permitted Dilutive Event” shall
mean any of the following events: 
 (i) any increase in the number of Points represented by Class D Common Units
solely by reason of any recalculation of Points for Class D Common Units occurring in connection with any increase in the Dilution Factor pursuant to the definition of “Points”; 
 (ii) any increase in the number of Points represented by the outstanding Units by reason of any issuance or award of Units to
employees, directors or consultants of the Company or its Subsidiaries in an aggregate amount not to exceed 20,888,888 Points; 
 (iii) any increase in the number of Points represented by the outstanding Units by reason of any issuance of Units to the seller(s) of a company or business (or any related assets) acquired by the Company
or its Subsidiary as part or all of the acquisition consideration; 
 (iv) any increase in the number of Points
represented by the outstanding Units by reason of any issuance of Units or Options containing nominal exercise prices, in each case to financing sources in connection with a loan or other indebtedness for borrowed money; 
 (v) any increase in the number of Points represented by the outstanding Units by reason of any issuance of Units upon the
issuance of Equity Securities pursuant to an Equity Investment (as defined in the Call Agreement) under the Call Agreement or the conversion or exercise of any Options or Convertible Securities; 
 (vi) any increase in the number of Points represented by the outstanding Units by reason of any issuance of Units pursuant to
an underwritten public offering and sale of Equity Securities of the Company or a successor corporation pursuant to an effective registration statement under the Securities Act; 
 (vii) any increase in the number of Points represented by the outstanding Units as a result of any split or other subdivision
of any class or series of Common Units so long as adjustments in respect thereof are made in accordance with the final sentence of Section 5.1; and 
 (viii) any increase in the number of Points represented by the outstanding Units by reason of the issuance of Class A
Common Units to repurchase or redeem or in exchange for Class C Common Units pursuant to the terms of that certain Incentive Unit Agreement among the Company and the Dracup Trusts as in effect on the date hereof (or any substantially similar
agreement with any employee of the Company or its Subsidiaries or a Person that would be a Permitted Transferee of any such employees under the Members Agreement). 
  

 - 11 - 

 “Person” means any individual, corporation, partnership, limited liability
company, trust, joint venture, governmental entity or other unincorporated entity, association or group. 
 The number of
“Points” for any Unit will be as follows: 
 (i) The number of “Points” for any
Class A Common Unit, Class B Common Unit or Class C Common Unit shall be one (1). 
 (ii) The number of
“Points” for any Class D Common Unit shall be: 
 (A) for purposes of Section 7.2(c)
and Section 7.2(d), (x) 0.85492228 multiplied by (y) the Dilution Factor; and 
 (B)
for purposes of Section 4.2, Section 7.2(e) and Section 7.2(f) (x) 1.00 multiplied by the Dilution Factor; 
 in each case, as equitably adjusted for any Unit split or other combination or subdivision of Units; provided that in the event that the Company issues Class A Common Units in consideration of
an Equity Investment (as defined in the Call Agreement) pursuant to the Call Agreement, or if the Company issues Class A Common Units upon the conversion of ABRY Subordinated Indebtedness issued in consideration of an Equity Investment pursuant
to the Call Agreement, then the number of Points for any Class D Common Unit for (i) purposes of Section 7.2(c) and Section 7.2(d) shall be increased to the number of Points specified for such Unit in clause (ii)(A)
above multiplied by a fraction: (x) the numerator of which is 120,000,000 plus the aggregate number of Class A Common Units so issued, and (y) the denominator of which is 120,000,000 and (ii) for all other purposes,
including for purposes of Section 7.2(e) and Section 7.2(f), shall be increased to the number of Points specified for such Unit in clause (ii)(B) above multiplied by a fraction: (x) the numerator of which is 140,363,636
plus the aggregate number of Class A Common Units issued in such Equity Investment or upon conversion of such Equity Investment, and (y) the denominator of which is 140,363,636. 
 “Preferred Securities Purchase Agreement” means the Securities Purchase Agreement, dated as of the date hereof, by and
among the Company and the purchasers of Series A Preferred Units and Class D Common Units that are parties thereto, as in effect from time to time. 
 “Preferred Units” means, collectively, the Series A Preferred Units and any New Units of any Class that are stated to be Preferred Units in the applicable New Unit Designation.

 “Profits” has the meaning set forth in Section 6.2(b). 
 “Public Sale” means a sale of Equity Securities to the public (i) pursuant to an offering registered under the
Securities Act or (ii) after the consummation of the initial public offering of Equity Securities, through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force). 
 “Quarterly Estimated Tax Amount” of a Unitholder for any calendar quarter of a Fiscal Year means the
excess, if any of (i) the product of (A)  1/4 in the case of the first calendar quarter of the Fiscal Year,  1/2 in the case of the second calendar quarter of the Fiscal Year,  3/4 in the case

  

 - 12 - 

 
of the third calendar quarter of the Fiscal Year, and 1 in the case of the fourth calendar quarter of the Fiscal Year and (B) the Unitholder’s Estimated Tax Amount for such Fiscal Year
over (ii) all Tax Advances previously made to such Unitholder with respect to such Fiscal Year. 
 “Redemption
Value Notice” has the meaning set forth in Section 5.8. 
 “Registration Rights Agreement”
means the Registration Rights Agreement, dated as of the date hereof, by and among the Company and the Members named therein, as in effect from time to time. 
 “Regulatory Allocations” has the meaning set forth in Section 8.2(e). 
 “Related Agreements” means, collectively, the Preferred Securities Purchase Agreement, the Investors Securities Purchase Agreement, the Incentive Unit Purchase Agreements, the
Registration Rights Agreement and the Members Agreement. 
 “Restricted Securities” means (a) all Units
issued by the Company and (b) any securities issued with respect to, or in exchange for, the Units referred to in clause (a) above in connection with a conversion, combination of units or shares, recapitalization, merger, consolidation or
other reorganization, including in connection with the consummation of any reorganization plan. As to any particular Restricted Securities, such securities shall cease to be Restricted Securities when they have been Transferred pursuant to a Public
Sale. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 A “Series” of Class C Common Units means the Class C-1 Common Units, the Class C-2 Common Units, the Class C-3 Common Units
or any other Class C Common Units that have the rights and preferences specified for a particular series or subseries of Class C Common Units in a Class C Common Unit Designation. 
 “Series A Preferred Capital Value” means, for any Series A Preferred Unit, $1.00, as equitably adjusted for any Unit split
or other combination or subdivision of Units. 
 “Series A Preferred Unit” means a Unit having the rights and
obligations specified with respect to “Series A Preferred Units” in this Agreement. 
 “Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation or a limited liability company with voting securities, a majority of the total voting
power of shares of stock (or units) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one
or more of the other Subsidiaries of such Person or a combination thereof, or (ii) if a limited liability company without voting securities, partnership, association or other business entity, a majority of the partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of such Person or a combination thereof. For purposes of this Agreement, a Person or Persons shall be deemed to have a
majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be

  

 - 13 - 

 
allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control any managing director, managing member, or general
partner of such limited liability company, partnership, association or other business entity. 
 “Tax Advance”
means any distribution pursuant to Section 7.4. 
 “Tax Amount” of a Unitholder for a Fiscal Year
means the product of (A) the Unitholder’s Tax Rate for such Fiscal Year and (B) the Adjusted Taxable Income of the Unitholder for such Fiscal Year with respect to its Units. 
 “Tax Matters Partner” has the meaning set forth in Code Section 6231 and Section 9.5. 
 “Tax Rate” of a Unitholder for any period means the highest marginal tax rates for an individual resident in New York City
applicable to ordinary income, qualified dividend income, or capital gains, as appropriate, taking into account the deductibility of state and local income taxes as applicable at the time for United States federal income tax purposes and any
limitations thereon including pursuant to Section 68 of the Code. 
 “Taxable Year” means the
Company’s taxable year ending on or about December 31 (or part thereof in the case of the Company’s first and last taxable year), or such other year as is (i) required by Section 706 of the Code or (ii) determined by
the Board (if no year is so required by Section 706 of the Code). 
 “Transfer” means any direct or
indirect sale, transfer, conveyance, assignment, pledge, hypothecation, gift, delivery or other disposition. 
 “Treasury Regulations” means the final or temporary regulations that have been issued by the U.S. Department of Treasury pursuant to its authority under the Code, and any successor regulations. 
 “Unit” means a unit representing a fractional part of the Membership Interests of all of the Unitholders and shall include
all types and classes and/or series of Units; provided that any type, class or series of Units shall have the designations, preferences and/or special rights set forth in this Agreement, and the Membership Interests represented by such type,
class or series of Units shall be determined in accordance with such designations, preferences and/or special rights. 
 “Unitholder” means any holder of Units whether or not such holder has been admitted as a Member in accordance with the terms of this Agreement, but only with respect to, and to the extent such holder holds, Units.

 “Unitholder Minimum Gain” with respect to each Unitholder Nonrecourse Debt, means the amount of Company
Minimum Gain (as determined according to Treasury Regulation Section 1.704-2(d)(1)) that would result if such Unitholder Nonrecourse Debt were treated as a nonrecourse liability, determined in accordance with Treasury Regulation
Section 1.704-2(i)(3). 
  

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 “Unitholder Nonrecourse Debt” means “Unitholder Nonrecourse Debt”
as defined in Treasury Regulation Section 1.704-2(b)(4), substituting the term “Company” for the term “partnership” and the term “Unitholder” for the term “partner” as the context requires. 
 “Unitholder Nonrecourse Deduction” means “Unitholder Nonrecourse Deduction” as defined in Treasury Regulation
Section 1.704-2(i), substituting the term “Unitholder” for the term “partner” as the context requires. 
 “Unpaid Yield” on (i) any Class A Common Unit means, as of any date, an amount equal to the excess, if any, of (A) the aggregate Yield accrued on such Class A Common Unit prior to such date, over
(B) the aggregate amount of prior Distributions made by the Company on such Class A Common Unit pursuant to Section 7.2(d), and (ii) on any Series A Preferred Unit, as of any date, an amount equal to the excess, if any, of
(A) the aggregate Yield accrued on such Series A Preferred Unit prior to such date, over (B) the aggregate amount of prior Distributions made by the Company on such Series A Preferred Unit pursuant to Section 7.2(b).

 “Unreturned Capital Value” means, for (i) any Class A Common Unit, the amount of the Common
Capital Value for such Class A Common Unit, reduced by all Distributions made by the Company on such Class A Common Unit pursuant to Section 7.2(c), and (ii) any Series A Preferred Unit, the amount of the Series A
Preferred Capital Value for such Series A Preferred Unit, reduced by all Distributions made by the Company on such Series A Preferred Unit pursuant to Section 7.2(a). 
 “Unvested Class C Common Unit” means any Class C Common Unit that is not a Vested Class C Common Unit. 
 “Vested Class C Common Unit” means any Class C Common Unit that has vested pursuant to the terms and conditions of the
Incentive Unit Purchase Agreement or other document pursuant to which such Class C Common Units were acquired by the initial holder thereof or any other document governing the vesting of such Class C Common Units. 
 “Voting Units” means the Class A Common Units, the Class B Common Units, and the Class D Common Units. 
 “Yield” on (i) any Class A Common Unit means the amount accruing on a daily basis in respect of such Unit
(commencing with respect to such Unit on the date the Company receives cash or other consideration in an amount equal to the purchase price of such Unit) at a rate of 15.0% per annum on (A) the Unreturned Capital Value for such Unit
plus (B) the Unpaid Yield on such Unit for all prior quarterly periods (or portions thereof) ending on any March 31, June 30, September 30 or December 31, and (ii) on any Series A Preferred Unit, means
the amount accruing on a daily basis in respect of such Series A Preferred Unit (commencing with respect to such Series A Preferred Unit on the date the Company receives cash in an amount equal to the purchase price of such Series A Preferred Unit)
at a rate of 15.0% per annum on (A) the Unreturned Capital Value for such Series A Preferred Unit plus (B) the Unpaid Yield on such Series A Preferred Unit for all prior quarterly periods ending on any
March 31, June 30, September 30 or December 31; provided that, at any time after and during the continuance of an Event of Default (as that term is defined in the Preferred Securities Purchase Agreement) such

  

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rate of accrual of Yield for any Series A Preferred Unit shall be 17.0% per annum. For the avoidance of doubt, from and after the discontinuance or waiver in accordance with the Preferred
Securities Purchase Agreement of any Event of Default, so long as no other Event of Default shall have occurred and be continuing, the rate of accrual of Yield for any Series A Preferred Unit shall be 15.0% per annum, subject to subsequent
increase as provided in this definition. In calculating the amount of any Distribution to be made pursuant to Section 7.2(b) during any calendar year, the portion of the Yield on any Class A Common Unit or Series A Preferred
Unit for such portion of the quarterly period elapsing before such Distribution is made will be taken into account and paid first. 
 1.2 Other Definitional Provisions. Capitalized terms used in this Agreement which are not defined in this Article I have the meanings contained elsewhere in this Agreement. Defined terms used in this
Agreement in the singular shall include the plural and vice versa. Whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by the words “without
limitation.” Where the context so indicates, the masculine shall include the feminine, the neuter shall include the masculine and feminine. 
 ARTICLE II 
 Organization of the Company 
 2.1 Formation. 
 (a) The Company was formed upon the filing of the certificate of formation of the Company (as amended, supplemented or restated from time to time, the “Certificate”) with the Secretary of
State of the State of Delaware on April 14, 2004, pursuant to the Delaware Act. This Agreement shall constitute the “limited liability company agreement” (as that term is used in the Delaware Act) of the Company. The rights, powers,
duties, obligations and liabilities of the Unitholders shall be determined pursuant to the Delaware Act and this Agreement. To the extent that the rights, powers, duties, obligations and liabilities of any Unitholder are different by reason of any
provision of this Agreement than they would be in the absence of such provision, this Agreement shall, to the extent permitted by the Delaware Act, control. 
 (b) Any officer of the Company, as an “authorized person” within the meaning of the Delaware Act, is hereby
authorized, at any time that the Board has approved an amendment to the Certificate in accordance with the terms hereof, to promptly execute, deliver and file such amendment in accordance with the Delaware Act. 
 (c) The Company shall, to the extent permissible, elect to be treated as a partnership for federal, foreign, state and local
income tax purposes, and each Unitholder and the Company shall file all tax returns and shall otherwise take all tax and financial reporting positions in a manner consistent with such treatment and no Unitholder shall take any action inconsistent
with such treatment. The Company shall not be deemed a partnership or joint venture for any other purpose. 
 2.2
Name. The name of the Company is “Language Line Holdings, LLC” or such other name or names as the Board may from time to time designate; provided that the name shall always contain the words “Limited Liability
Company” or the abbreviation “LLC” or “L.L.C.” 
  

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 2.3 Principal Place of Business. The principal place of business of the
Company shall be at such place as the Board may determine from time to time. The Company may locate its place or places of business (including its principal place of business) and registered office at any other place or places as the Board may from
time to time deem necessary or advisable. 
 2.4 Registered Office and Registered Agent. The Company’s
registered office shall be at Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19808, and the name of its initial registered agent at such address shall be Corporation Service Company.

 2.5 Term. The term of existence of the Company shall be perpetual from the date the Certificate was filed with
the Secretary of State of Delaware, unless the Company is dissolved in accordance with the provisions of this Agreement. 
 2.6 Purposes and Powers. The purposes and character of the business of the Company shall be to transact any or all lawful business for which limited liability companies may be organized under the Delaware Act. The Company
shall have any and all powers which are necessary or desirable to carry out the purposes and business of the Company, including the ability to incur and guaranty indebtedness, to the extent the same may be legally exercised by limited liability
companies under the Delaware Act. The Company shall carry out the foregoing activities pursuant to the arrangements set forth in this Agreement. Notwithstanding anything herein to the contrary, nothing set forth herein shall be construed as
authorizing the Company to possess any purpose or power, or to do any act or thing, forbidden by law for a limited liability company organized under the laws of the State of Delaware. 
 ARTICLE III 
 Management of the Company

 3.1 Board of Directors. 
 (a) Establishment. There is hereby established a committee (the “Board”) comprised of natural Persons
(the “Directors”) having the authority and duties set forth in this Agreement and the Delaware Act. Each Director shall be entitled to one (1) vote. Any decisions to be made by the Board shall require the approval of a Majority
of the Board. Except as provided in the immediately preceding sentence, no Director acting alone, or with any other Director or Directors, shall have the power to act for or on behalf of, or to bind the Company in his or her capacity as a Director.
Each Director shall be a “manager” (as that term is defined in the Delaware Act) of the Company, but, notwithstanding the foregoing, no Director shall have any rights or powers beyond the rights and powers granted to such Director in this
Agreement. Directors need not be residents of the State of Delaware. 
 (b) Powers. The business and
affairs of the Company shall be managed by or under the direction of the Board. All actions outside of the ordinary course of business of the Company, to be taken by or on behalf of the Company, shall require the approval of the Board. Directors
shall have the duties, powers and rights of directors under Delaware law applicable to directors of corporations organized under the GCL. 
  

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 (c) Number of Directors; Term of Office. The authorized number of
Directors shall, as of the date hereof, be five (5) Directors and hereafter the authorized number of Directors may be increased or decreased by the Board. Subject to the terms and provisions of the Members Agreement, the Directors shall, except
as hereinafter otherwise provided for filling vacancies, be elected by vote of a Majority of the Members and shall hold office until their respective successors are elected or until their earlier death, resignation or removal. The initial ABRY
Directors shall be Peggy Koenig, C.J. Brucato and Azra Nanji; the initial CEO Director shall be Dennis Dracup; and the remaining initial Director shall be Matthew Gibbs; and each such Person shall hold office as a Director until his or her
respective successor is elected or until his or her earlier death, resignation or removal. 
 (i) A Majority of
the Members may remove, with or without cause, any Director and fill the vacancy; provided that whenever any Director shall have been elected pursuant to the Members Agreement, such Director may be removed and the vacancy filled only as
provided in the Members Agreement. Vacancies caused by any such removal by the Members and not filled by the Members at the meeting at which such removal shall have been made or pursuant to the applicable written consent of the Members, may be
filled by a Majority of the Board, although less than a quorum, and any Director so elected to fill any such vacancy shall hold office until his successor is elected or until his earlier death, resignation or removal; provided that such
Director can be removed with or without cause and replaced by the Member or Members, if any, which have the right to designate such Director pursuant to the Members Agreement. 
 (ii) A Director may resign at any time by giving written notice to that effect to the Company. Any such resignation shall
take effect at the time of the receipt of that notice or any later effective time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any vacancy
caused by any such resignation or by the death of any Director or for any other reason (including due to the authorization by the Board of a newly created directorship) and not filled by the Members (either by Members with the right to designate
such Director pursuant to the Members Agreement or otherwise) may be filled by a Majority of the Board, although less than a quorum, and any Director so elected to fill any such vacancy shall hold office until his successor is elected or until his
earlier death, resignation or removal; provided that such Director can be removed with or without cause and replaced by the Member or Members, if any, which have the right to designate such Director pursuant to the Members Agreement.

 (d) Meetings of the Board. The Board shall meet at such time and at such place (either within or
without the State of Delaware) as the Board may designate; provided, however, that the Board shall meet a minimum of four times per calendar year. Meetings of the Board shall be held on at least three (3) Business Days’ (if
the meeting is to be held in person) or two (2) Business Days’ (if the meeting is to be held by telephone communications) prior oral or written notice to the Directors, or upon such shorter notice as may be approved by all of the
Directors. Any Director may waive such notice as to himself. A record shall be maintained by the Secretary of the Company of each meeting of the Board. 
  

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 (i) Conduct of Meetings. Any meeting of the Directors may be held,
and any Director may attend and vote and be present at a meeting, in person (including by proxy given to another Director) or telephonically. If any, but not all, of the ABRY Directors is present in person or telephonically at a meeting, then the
other ABRY Director(s) will be deemed to be present at such meeting by proxy and the ABRY Director(s) present in person or telephonically will be entitled to cast the votes of the other ABRY Director(s), whether or not they have been given a written
proxy. 
 (ii) Quorum. The presence (in person, telephonically, by proxy or by operation of this
Section 3.1(d)) of a Majority of the Board shall constitute a quorum of the Board for purposes of conducting business. At all times when the Board is conducting business at a meeting of the Board, a quorum of the Board must be present at
such meeting. If a quorum shall not be present at any meeting of the Board, then Directors having a majority of the votes of the Directors present at the meeting may adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present. 
 (iii) Attendance and Waiver of Notice. Attendance by a
Director at any meeting (in person, telephonically or by proxy) shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business on the ground that
the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice or waiver of notice of such meeting. 
 (iv) Actions Without a Meeting. Notwithstanding any provision contained in this Agreement, any action of the Board may
be taken by written consent without a meeting. Any such action taken by the Board without a meeting shall be effective only if the written consent or consents are in writing, set forth the action so taken, and are signed by a Majority of the Board.

 (e) Compensation of the Directors. Directors, as such, shall not receive any stated salary for their
services, but shall receive such reasonable compensation for their services as may be from time to time agreed upon by a Majority of the Members or by a Majority of the Board. In addition, a fixed sum and expenses of attendance, if any, may be
allowed for attendance at each regular or special meeting of the Board, provided that nothing contained in this Agreement shall be construed to preclude any Director from serving the Company or any of its Subsidiaries in any other capacity
and receiving reasonable compensation for such service. 
 (f) Chairman of the Board. A Majority of the
Board may elect any one of the Directors to be the chairman of the Board (the “Chairman”), and the initial Chairman will be Dennis Dracup. At any time, the Chairman, if any, can be removed from his or her position as Chairman by a
Majority of the Board; provided that Dennis Dracup shall serve as the Chairman so long as he serves as the chief executive officer of the Company . The Chairman shall preside at all meetings of the Board and at all meetings of the Members at which
he or she shall be present. 
  

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 3.2 Committees of the Board. The Board may, by resolution, designate from
among the Directors one or more committees (including an audit committee, a nominating committee, and a compensation committee), each of which shall be comprised of one or more Directors, and may designate one or more of the Directors as alternate
members of any committee, who may, subject to any limitations imposed by the Board, replace absent or disqualified Directors at any meeting of that committee. Any such committee, to the extent provided in such resolution, shall have and may exercise
all of the authority of the Board, subject to the limitations set forth in the Delaware Act or in the establishment of the committee. Any members thereof may be removed by a Majority of the Board. Unless the resolution designating a particular
committee or this Agreement expressly so provides, a committee of the Board shall not have the authority to authorize or make a distribution to the Members or to authorize the issuance of Units. The provisions of this Article III
relating to the Board and the Directors shall apply to each committee and its members, mutatis mutandi. 
 3.3
Officers. 
 (a) Appointment of Officers. The Board may appoint individuals as officers
(“Officers”) of the Company, which may include (i) a chief executive officer, (ii) a president, (iii) a chief financial officer, (iv) a secretary, and (v) such other Officers (such as a treasurer or any
number of vice presidents) as the Board deems advisable. No Officer need be a Member or a Director. An individual can be appointed to more than one office. Each Officer of the Company shall be a “manager” (as that term is used in the
Delaware Act) of the Company, but, notwithstanding the foregoing, no Officer of the Company shall have any rights or powers beyond the rights and powers granted to such Officer in this Agreement or by the Board. The Officers of the Company as of the
date hereof are listed on the attached Schedule A. 
 (b) Duties of Officers Generally. Under the
direction of and, at all times, subject to the authority of the Board, the Officers shall manage and control the day-to-day business, operations and affairs of the Company in the ordinary course of its business, make decisions affecting the
day-to-day business, operations and affairs of the Company in the ordinary course of its business and take all such actions as they deem necessary or appropriate to accomplish the foregoing, in each case, unless the Board shall have previously
restricted (specifically or generally) such powers. In addition, the Officers shall have such other powers and duties as may be prescribed by the Board or this Agreement. The chief executive officer and the president shall have the power and
authority to delegate to any agents or employees of the Company rights and powers of Officers of the Company to manage and control the day-to-day business, operations and affairs of the Company in the ordinary course of its business, as the chief
executive officer or the president may deem appropriate from time to time, in each case, unless the Board shall have previously restricted (specifically or generally) such powers. Officers of the Company shall have the duties of officers under
Delaware law applicable to officers of corporations organized under the GCL. 
 (c) Authority of Officers.
Subject to Section 3.3(b) above, with respect to all matters within the ordinary course of business of the Company, any Officer of the Company shall have the right, power and authority to transact business in the name of the Company or
to act for or on behalf of or to bind the Company. With respect to such matters, third parties dealing with the Company may rely conclusively upon any certificate of any Officer to the effect that such Officer is acting on behalf of the Company.

  

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 (d) Removal, Resignation and Filling of Vacancy of Officers. Subject
to the terms of any applicable employment agreement to which the Company or any of its Subsidiaries is a party, the Board may remove any Officer, for any reason or for no reason, at any time. Any Officer may resign at any time by giving written
notice to the Company, and such resignation shall take effect at the date of the receipt of that notice or any later time specified in that notice; provided that, unless otherwise specified in that notice, the acceptance of the resignation
shall not be necessary to make it effective. Any such resignation shall be without prejudice to the rights, if any, of the Company or such Officer under this Agreement. A vacancy in any office because of death, resignation, removal or otherwise
shall be filled in the manner prescribed in this Agreement for regular appointments to that office. 
 (e)
Compensation of Officers. The Officers shall be entitled to receive compensation from the Company if and as determined by the Board. 
 (f) Chief Executive Officer. Under the direction of and, at all times, subject to the authority of the Board and this Agreement, the chief executive officer of the Company (the “Chief
Executive Officer”) shall have general supervision over the day-to-day business, operations and affairs of the Company and shall perform such duties and exercise such powers as are incident to the office of Chief Executive Officer of a
corporation organized under the GCL. The Chief Executive Officer shall have such other powers and perform such other duties as may from time to time be prescribed by the Board. 
 (g) President. Under the direction of and, at all times, subject to the authority of the Board and this Agreement, the
president of the Company (the “President”) shall perform such duties and exercise such powers as are incident to the office of president of a corporation organized under the GCL. In the absence of the Chief Executive Officer, the president
shall perform the duties of the Chief Executive Officer. The President shall have such other powers and perform such other duties as may from time to time be prescribed by the Board. 
 (h) Chief Financial Officer. The chief financial officer of the Company (the “Chief Financial
Officer”) shall keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the Company, including accounts of its assets, liabilities, receipts,
disbursements, gains, losses, capital and Units, and, in general, shall perform all the duties incident to the office of the Chief Financial Officer of a corporation organized under the GCL. The Chief Financial Officer shall have the custody of the
funds and securities of the Company, and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company. The Chief Financial Officer shall have such other powers and perform such other duties as may from time
to time be prescribed by the Board, the Chief Executive Officer and/or the President. 
 (i) Secretary.
The secretary of the Company (the “Secretary”) shall (i) keep the minutes of the meetings of the Members and the Board in one or more books provided for that purpose; (ii) see that all notices are duly given in accordance with
the provisions of this Agreement and as required by law; (iii) be custodian of the Company’s records; (iv) keep a

  

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register of the address of each Member which shall be furnished to the Secretary by such Member; (v) have general charge of the Members Schedule; and (vi) in general perform all duties
incident to the office of the Secretary of a corporation organized under the GCL. The secretary shall have such other powers and perform such other duties as may from time to time be prescribed by the Board, the Chief Executive Officer and/or the
President. 
 3.4 Performance of Duties; Liability of Directors and Officers. In performing his or her duties,
each of the Directors and the Officers shall be entitled to rely in good faith on the provisions of this Agreement and on information, opinions, reports, or statements (including financial statements and information, opinions, reports or statements
as to the value or amount of the assets, liabilities, Profits or Losses of the Company or any facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid), of the following other Persons or
groups: (a) one or more Officers or employees of the Company or its Subsidiaries; (b) any attorney, independent accountant, or other Person employed or engaged by the Company or its Subsidiaries; or (c) any other Person who has been
selected with reasonable care by or on behalf of the Company or its Subsidiaries, in each case as to matters which such relying Person reasonably believes to be within such other Person’s professional or expert competence. The preceding
sentence shall in no way limit any Person’s right to rely on information to the extent provided in Section 18-406 of the Delaware Act. No individual who is a Director and/or an Officer shall be personally liable under any judgment of a
court, or in any other manner, for any debt, obligation, or liability of the Company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason of being a Director and/or an Officer. 
 3.5 Indemnification. The Directors and Officers shall not be liable, responsible or accountable for damages or otherwise to
the Company, or to the Members, and, to the fullest extent allowed by law, each Director and each Officer shall be indemnified and held harmless by the Company, including advancement of reasonable attorneys’ fees and other expenses, but only to
the extent that the Company’s assets are sufficient therefor, from and against all claims, liabilities, and expenses by reason of the fact that such Director or Officer is or was a director or officer of the Company, or is or was serving or has
agreed to serve at the request of the Company as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, trust or other enterprise; provided that (a) such Director’s or
Officer’s course of conduct was pursued in good faith and believed by him to be in the best interests of the Company and was reasonably believed by him to be within the scope of authority conferred on such Director or Officer pursuant to this
Agreement and (b) such course of conduct did not constitute gross negligence or willful misconduct on the part of such Director or Officer and otherwise was in accordance with the terms of this Agreement. Notwithstanding anything to the
contrary contained herein, unless expressly approved by the Board, no Director or Officer shall be entitled to indemnification by the Company under this Section 3.5 with respect to any legal proceeding initiated by such Director or
Officer. The rights of indemnification provided in this Section 3.5 are intended to provide indemnification of the Directors and the Officers to the fullest extent permitted by the GCL regarding a corporation’s indemnification of
its directors and officers and will be in addition to any rights to which the Directors or Officers may otherwise be entitled by contract or as a matter of law and shall extend to their respective heirs, personal representatives and assigns. The
absence of any express provision for indemnification herein shall not limit any right of indemnification existing independently of this Section 3.5. Each 
  

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Director’s and each Officer’s right to indemnification pursuant to this Section 3.5 may be conditioned by the Board upon the delivery by such Director or such Officer of a
written undertaking (with such security as the Board may require) to repay such amount if such individual is determined by the Board or adjudicated to be ineligible for indemnification, which undertaking shall be an unlimited obligation. 

ARTICLE IV 
 Members; Voting Rights 
 4.1 Meetings of Members. 
 (a) Generally. Meetings of the Members may be called by the Board or by a Majority of the Members. All meetings of the
Members shall be held telephonically or at the principal office of the Company or at such other place within or without the State of Delaware as may be determined by the Board or the Member(s) calling the meeting and set forth in the respective
notice or waivers of notice of such meeting. A record shall be maintained by the Secretary of the Company of each meeting of the Members. 
 (b) Notice of Meetings of Members. Written or printed notice stating the place, day and hour of the meeting shall be delivered not fewer than two (2) Business Days before the date of the
meeting, either personally or by any written method by which it is reasonable to expect that the Members would receive such notice not later than the Business Day prior to the date of the meeting, to each holder of Units, by or at the direction of
the Member(s) calling the meeting or the Board, as the case may be. Such notice may, but need not, specify the purpose or purposes of such meeting and may, but need not, limit the business to be conducted at such meeting to such purpose(s).

 (c) Quorum. Except as otherwise provided herein or by applicable law, at any time, a Majority of the
Members, present or represented in person, telephonically or by proxy, shall constitute a quorum of the Members for purposes of conducting business. Once a quorum is present at the meeting of the Members, the subsequent withdrawal from the meeting
of any Member prior to adjournment or the refusal of any Member to vote shall not affect the presence of a quorum at the meeting. If, however, such quorum shall not be present at any meeting of the Members, the Members having a majority of the
voting power of the Members present at such meeting (in person or by proxy) shall have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a Majority of the Members shall be present or
represented. Resolutions of the Members at any meeting of Members shall be adopted by the affirmative vote of a Majority of the Members. 
 (d) Actions Without a Meeting. Any action that may be taken at a meeting of the Members may be taken without a meeting if a consent or consents in writing, setting forth the action so taken, shall
be signed by a Majority of the Members and such consent or consents are delivered to the Secretary. A record shall be maintained by the Secretary of each such action taken by written consent of a Member or Members. 
  

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 4.2 Voting Rights. Except as specifically provided herein or otherwise
required by applicable law, for all purposes hereunder or under the Delaware Act with respect to which the Members are required to act, including for purposes of Article III hereof, each Member shall be entitled to one vote per Point
represented by the Voting Units held by such Member. A Member who owns Units may vote or be present at a meeting either in person, telephonically or by proxy. There will be no “cumulative voting” (as that term is defined in the GCL) in the
election or removal of Directors. Except as expressly required by this Agreement or the Delaware Act, neither a vote of the Members nor a separate vote by the Members who hold Units of any class or series of Units will be required for any action
taken or proposed to be taken by the Company. Without limiting the preceding sentence, except as expressly required by Section 12.4, a merger or consolidation involving the Company shall require only the approval of a Majority of the
Members. Unitholders who are not admitted as Members in accordance with this Agreement shall not be entitled to vote on any matters involving the Company or their Units. 
 4.3 Registered Members. The Company shall be entitled to treat the owner of record of any Unit as the owner in fact of such Unit for all purposes, and accordingly shall not be bound to
recognize any equitable or other claim to or interest in such Unit on the part of any other Person, whether or not the Company shall have express or other notice of such claim or interest, except as expressly provided by this Agreement or the
Delaware Act. Notwithstanding the foregoing, the Secretary shall amend the Members Schedule to reflect a transferee of any Unit as the new owner of record of such Unit as promptly as practicable following the Company’s receipt from such
transferee of a written undertaking to be bound by the terms and conditions of this Agreement substantially in the form of Exhibit A, as contemplated by Section 11.3(a). 
 4.4 Limitation of Liability. Except as otherwise provided in the Delaware Act or in this Agreement, no Member will be
obligated personally for any debt, obligation or liability of the Company or of any other Member by reason of being a Member, whether arising in contract, tort or otherwise. No Member will have any responsibility to restore any negative balance in
such Member’s Capital Account or to contribute to or in respect of the liabilities or obligations of the Company or return distributions made by the Company except as required by the Delaware Act or other applicable law. 
 4.5 Withdrawal; Resignation. A Member shall not cease to be a Member as a result of the Bankruptcy of such Member or as result
of any other events specified in § 18-304 of the Delaware Act. So long as a Member continues to own or hold any Units, such Member shall not have the ability to resign as a Member prior to the dissolution and winding up of the Company and
any such resignation or attempted resignation by a Member prior to the dissolution or winding up of the Company shall be null and void. When any Person who is a Member ceases to own or hold any Units, such Person shall no longer be a Member.

 4.6 Death of a Member. The death of any Member shall not cause the dissolution of the Company. In such event
the Company and its business shall be continued by the remaining Member or Members. 
 4.7 Authority. No Member,
in its capacity as a Member, shall have the power to act for or on behalf of, or to bind the Company. 
  

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 4.8 Outside Activities. Subject to the terms of any written agreement by any
Member to the contrary, a Member may have business interests and engage in business activities in addition to those relating to the Company, including business interests and activities which compete with those of the Company and its Subsidiaries,
and no Member in his capacity as a Member shall have any duty or obligation to bring any “corporate opportunity” to the Company or any of its Subsidiaries. Subject to the terms of any written agreement by any Member to the contrary,
neither the Company or any of its Subsidiaries nor any other Member in his capacity as a Member shall have any rights by virtue of this Agreement in any business interests or activities of any other Member. 
 ARTICLE V 
 Units; Membership 
 5.1 Units Generally. The Membership Interests of the Members shall be
represented by issued and outstanding Units, which may be divided into one or more types, classes or series, or subseries of any type, class or series, with each type, class or series, or subseries thereof, having the rights and privileges,
including voting rights, if any, set forth in this Agreement. The Secretary shall maintain a schedule of all Members from time to time, their respective mailing addresses and the Units held by them and the Capital Contributions made by them with
respect thereto (as the same may be amended, modified or supplemented from time to time, the “Members Schedule”), a copy of which as of the date hereof is attached hereto as Schedule B. Ownership of a Unit (or fraction
thereof) shall not entitle a Unitholder to call for a partition or division of any property of the Company or for any accounting. The Company will not effect a split, reverse split or other combination or subdivision of the Common Units of any class
or series unless the terms of all other classes and series (including related Points, Common Capital Values and Non-Distribution Amounts) of Common Units are equitably adjusted. 
 5.2 Authorization and Issuance of Units. 
 (a) Series A Preferred Units. The Company hereby authorizes the issuance of an unlimited number of Series A Preferred
Units, 82,000,000 of which are outstanding on the date hereof, as set forth on Schedule B. 
 (b)
Class A Common Units. The Company hereby authorizes the issuance of an unlimited number of Class A Common Units, which it may issue in one or more Series, 120,000,000 of which are outstanding on the date hereof, as set forth on
Schedule B. 
 (c) Class B Common Units. The Company hereby authorizes the issuance of an unlimited
number of Class B Common Units, none of which are outstanding on the date hereof. 
 (d) Class C Common
Units. The Company hereby authorizes the issuance of an unlimited number of Class C Common Units, which it may issue in one or more Series, 15,636,364 of which are outstanding on the date hereof, as set forth on
 Schedule B. The
initial three Series of Class C Common Units are (i) Class C-1 Common Units, 5,212,121 of which are outstanding on the date hereof, (ii) Class C-2 Common Units, 5,212,122 of which are outstanding on the date hereof, and (iii) Class
C-3 Common Units, 5,212,121 of which are outstanding on the date hereof. 
  

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 (e) Class D Common Units. The Company hereby authorizes the issuance
of an unlimited number of Class D Common Units, which it may issue in one or more Series, 5,090,909 of which are outstanding on the date hereof, as set forth on
 Schedule B. 
 (f) Other Units. In addition to the Series A Preferred Units, the Class A Common Units, the Class B Common Units,
the initial Series of Class C Common Units, and the Class D Common Units, the Company hereby authorizes the issuance of other Units. With respect to such Units, the Board is authorized to provide for the issuance of such Units in any class or series
by adopting a Class C Common Unit Designation or a New Unit Designation or by amending this Agreement to reflect such issuance and to establish the number of Units to be included in each such series (which may be unlimited), and to fix the relative
rights, obligations, preferences and limitations of the Units of each such Class or Series. 
 (g) Additional
Units. The Board is authorized to increase or decrease the number of Units of any Class or Series of Units, prior or subsequent to the issue of Units of that Class or Series, but not below the number of Units of such Class or Series then
outstanding. 
 5.3 Unit Certificates. Unless the Board otherwise directs, Units will not be represented by
certificates. 
 5.4 Issuance of Units. Subject to the limitations contained in Section 11.5, the
Company (with the approval of the Board) shall have the right to issue any authorized but unissued Units; provided that the Company shall not issue any Units to any Person unless such Person has executed and delivered to the Secretary the
documents described in Section 5.5. Upon the issuance of Units, the Company shall adjust the Capital Accounts of the Unitholders as necessary in accordance with Section 6.2. 
 5.5 New Members from the Issuance of Units. In order for a Person to be admitted as a Member of the Company by reason of the
issuance of Units to such Person by the Company, such Person shall have executed and delivered to the Secretary a written undertaking to be bound by the terms and conditions of this Agreement substantially in the form of Exhibit A. Upon the
amendment of the Members Schedule by the Secretary and the satisfaction of any other applicable conditions, including the receipt by the Company of payment for the issuance of the applicable Units, such Person shall be admitted as a Member and
deemed listed as such on the books and records of the Company. 
 5.6 Treatment of Repurchased Class C Common
Units. Any Class C Common Unit that is repurchased by the Company pursuant to Section 6 of any Incentive Share Purchase Agreement or otherwise shall no longer be deemed to be outstanding for any purpose under this Agreement. 

 

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 5.7 Effect on Dilution Factor of Certain Events. For purposes of determining
the Dilution Factor, the following shall be applicable: 
 (a) Issuance of Options. If the Company in any
manner grants or sells any Option and the price per Unit for which membership interests having Points are issuable upon the exercise of such Option, or upon conversion or exchange of any Convertible Security issuable upon exercise of such Option, is
less than the Fair Market Value of such Units immediately prior to such grant or sale, then for purposes of the definitions of the terms “Dilution Factor” and “Dilutive Event” the total number of Units issuable upon the exercise
of such Option or upon conversion or exchange of the total maximum amount of such Convertible Securities issuable upon the exercise of such Option shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the
granting or sale of such Option for such price per Unit. For purposes of this Section 5.7(a), the “price per Unit for which membership interests having Points are issuable” shall be determined by dividing (A) the total
amount, if any, received or receivable by the Company as consideration for the granting or sale of such Option, plus the aggregate amount of additional consideration payable to the Company upon exercise of such Option, plus in the case
of an Option which relates to Convertible Securities, the aggregate amount of additional consideration, if any, payable to the Company upon the issuance or sale of such Convertible Securities and the conversion or exchange thereof, by
(B) the total number of Units so issuable upon the exercise of such Option or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such Option. No adjustment of the Dilution Factor shall be made when
Convertible Securities are actually issued upon the exercise of any such Option or when Units having Points are actually issued upon the exercise of such Option or the conversion or exchange of such Convertible Securities. 
 (b) Issuance of Convertible Securities. If the Company or any Subsidiary in any manner issues or sells any Convertible
Securities and the price per Unit for which membership interests having Points are issuable upon conversion or exchange thereof is less than the Fair Market Value of such Units immediately prior to such issuance or sale, then for purposes of the
definitions of the terms “Dilution Factor” and “Dilutive Event” the total number of Units issuable upon conversion or exchange of such Convertible Securities shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities for such price per Unit. For the purposes of this Section 5.7(b), the “price per Unit for which membership interests having Points are issuable”
shall be determined by dividing (A) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus the aggregate amount of additional consideration, if any, payable to the
Company upon the conversion or exchange thereof, by (B) the total number of Units represented by the membership interests issuable upon the conversion or exchange of all such Convertible Securities. No adjustment of the Dilution Factor
shall be made when membership interests are actually issued upon the conversion or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Option, then no adjustment of the
Dilution Factor shall be made by reason of such issue or sale. 
 (c) Change in Option Price; Conversion Rate
or Units Issuable. If the purchase price provided for in any Option, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Security, the rate at which any Convertible Security is convertible into or
exchangeable for membership interests having Points, and/or the quantity of such membership interests issuable upon the conversion, exercise or exchange of any such

  

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Option or Convertible Security, changes at any time, then the Dilution Factor shall be immediately adjusted to the Dilution Factor which would have been in effect at such time had such Options or
Convertible Securities still outstanding provided for such changed purchase price, additional consideration, conversion rate or quantity, as the case may be, at the time initially granted, issued or sold; provided that no such change shall at
any time cause the Dilution Factor to be less than 1.00. 
 (d) Calculation of Consideration Received. If
any membership interest, Option or Convertible Security is issued or sold or deemed to have been issued or sold for cash, for purposes of the definitions of the terms “Dilution Factor” and “Dilutive Event” the consideration
received therefor shall be deemed to be the amount received by the Company and its Subsidiaries therefor. If any membership interest, Option or Convertible Security is issued or sold for a consideration other than cash, for purposes of the
definitions of the terms “Dilution Factor” and “Dilutive Event” the amount of the consideration other than cash received by the Company shall be the Fair Market Value thereof. 
 (e) Recomputation. Upon the expiration or the termination of the right to exercise, convert or exchange any
Convertible Security or Option the issuance of which resulted in an increase in the Dilution Factor pursuant to this Section 5.7, the Dilution Factor shall be recomputed to reflect the issuance of only the number of membership interests
having Points (and Convertible Securities which remain convertible into such membership interests) actually issued upon the exercise, conversion or exchange of such Options or Convertible Securities. 
 (f) Certain Events. If any event occurs of the type contemplated by the provisions of this Section 5.7 but
not expressly provided for by such provisions (including the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Board in good faith will make an appropriate adjustment in the Dilution Factor
so as to protect the rights of the holders of Class D Common Units. 
 5.8 Determination of Class D Common Redemption
Price. After one or more holders of Class D Common Units elect(s) to require the Company to redeem Class D Common Units in accordance with Section 4D of the Preferred Securities Purchase Agreement, the Company will deliver written
notice of the Board’s determination of the Fair Market Value of such Units (the “Redemption Value Notice”) to the holder(s) of the Class D Common Units to be redeemed. Such determination will be binding upon the Company and the
holders of the Class D Common Units for purposes of such redemption unless any Majority Redeeming Class D Holders provide the Company with written notice, delivered within 15 days of their receiving the applicable Redemption Value Notice, to the
effect that they believe the Fair Market Value of such Class D Common Units is greater than that described in the Redemption Value Notice. If any Majority Redeeming Class D Holders deliver such a notice, then the Company shall (unless the Company
(with the approval or ratification by the Board) and any Majority Redeeming Class D Holders otherwise agree in writing as to the Fair Market Value of the Class D Common Units to be redeemed, in which case such determination shall be binding on the
Company and the holders of the Class D Common Units to be redeemed) engage an Independent Financial Advisor reasonably acceptable to the Company and any Majority Redeeming Class D Holders to determine the Fair Market Value of the Class D Common
Units to be redeemed, and such determination shall be binding upon the Company and the holders of the Class D Common Units to be redeemed. The fees, costs and expenses of the Independent Financial Advisor shall be borne by the Company. 

 

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 ARTICLE VI 
 Capital Contributions and Capital Accounts 
 6.1
Capital Contributions. 
 (a) Each Person who is a Member as of the date hereof has made, or is deemed
to have made, the Capital Contributions giving rise to such Member’s Capital Account as of the date hereof and is deemed to own the number, type and class, series or subseries of Units, in each case, in the amounts set forth opposite such
Member’s name on the Members Schedule as in effect on the date hereof. 
 (b) No Member shall make or be
required to make any additional contributions to the Company with respect to such Member’s Units. Except as expressly provided herein, no Member, in its capacity as a Member, shall have the right to receive any cash or any other property of the
Company. 
 6.2 Capital Accounts. 
 (a) Maintenance Rules. The Company shall maintain for each Unitholder a separate capital account (a “Capital
Account”) in accordance with this Section 6.2(a). Each Capital Account shall be maintained in accordance with the following provisions: 
 (i) Such Capital Account shall be increased by the cash amount or Book Value of any property contributed by such Unitholder
to the Company pursuant to this Agreement, such Unitholder’s allocable share of Profits and any items in the nature of income or gains which are specially allocated to such Unitholder pursuant to Section 8.2 or
Section 8.3, and the amount of any liabilities of the Company assumed by such Unitholder or which are secured by any property distributed to such Unitholder. 
 (ii) Such Capital Account shall be decreased by the cash amount or Book Value of any property distributed to such Unitholder
pursuant to this Agreement, such Unitholder’s allocable share of Losses and any items in the nature of deductions or losses which are specially allocated to such Unitholder pursuant to Section 8.2 or Section 8.3, and the
amount of any liabilities of such Unitholder assumed by the Company or which are secured by any property contributed by such Unitholder to the Company. 
 (iii) If all or any portion of a Unit is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the
transferred Unit (or, in each case, portion thereof). 
 (iv) If the Book Value of the Company assets is adjusted
pursuant to clause (b) of the definition of “Book Value,” the Capital Accounts of the Unitholders shall be adjusted in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f). 
  

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 The foregoing provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Section 1.704-1(b) of the Treasury Regulations and shall be interpreted and applied in a manner consistent with such Treasury Regulations. If the Board determines that it is prudent to
modify the manner in which the Capital Accounts, or any increases or decreases to the Capital Accounts, are computed in order to comply with such Treasury Regulations, the Board may authorize such modifications. 
 (b) Definition of Profits and Losses. “Profits” and “Losses” mean, for each Taxable
Year or other period, an amount equal to the Company’s taxable income or loss, respectively, for such Taxable Year or other period, determined in accordance with Code Section 703(a) (and, for this purpose, all items of income, gain, loss
or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 
 (i) The computation of all items of income, gain, loss and deduction shall include tax-exempt income and those items
described in Treasury Regulation Section 1.704-1(b)(2)(iv)(i), without regard to the fact that such items are not includible in gross income or are not deductible for federal income tax purposes. 
 (ii) If the Book Value of any Company property is adjusted pursuant to the definition of “Book Value” or Treasury
Regulation Section 1.704-1(b)(2)(iv)(e) or (f), the amount of such adjustment shall be taken into account as gain or loss from the disposition of such property (provided that if the Book Value of any Company property is adjusted pursuant to
Treasury Regulation Section 1.704-1(b)(2)(iv)(f)(5)(i), the allocation of gain or loss shall be made immediately prior to the related acquisition of the interest in the Company). 
 (iii) Items of income, gain, loss or deduction attributable to the disposition of Company property having a Book Value that
differs from its adjusted basis for tax purposes shall be computed by reference to the Book Value of such property. 
 (iv) Items of depreciation, amortization and other cost recovery deductions with respect to Company property having a Book Value that differs from its adjusted basis for tax purposes shall be computed by reference to the property’s
Book Value in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(g). 
 (v) To the extent an
adjustment to the adjusted tax basis of any Company property pursuant to Code Sections 732(d), 734(b) or 743(b) is required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts,
the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis). 
 (vi) All items of income, gain, loss or deduction which are specially allocated pursuant to Section 8.2 or
Section 8.3 shall not be taken into account in computing such taxable income or loss. 
  

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 6.3 Negative Capital Accounts. If any Unitholder has a deficit balance in its
Capital Account, such Unitholder shall have no obligation to restore such negative balance or to make any Capital Contributions to the Company by reason thereof, and such negative balance shall not be considered an asset of the Company or of any
Unitholder. 
 6.4 No Withdrawal. No Unitholder will be entitled to withdraw any part of his or its Capital
Contribution or Capital Account or to receive any distribution from the Company, except as expressly provided in this Agreement. 
 6.5 Loans From Unitholders. Loans by Unitholders to the Company shall not be considered Capital Contributions. 
 6.6 Status of Capital Contributions. 
 (a) No Unitholder shall receive any interest,
salary or drawing with respect to its Capital Contributions or its Capital Account, except as otherwise specifically provided in this Agreement. 
 (b) Except as otherwise provided by applicable law, no Unitholder shall be required to lend any funds to the Company or to make any additional Capital Contributions to the Company. No Unitholder shall
have any personal liability for the repayment of any Capital Contribution of any other Unitholder. 
 ARTICLE VII

 Distributions 
 7.1 Generally. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make any Distribution to Unitholders if such Distribution would violate
Section 18-607 of the Delaware Act or other applicable law. 
 7.2 Order of
Priority. Subject to Sections 7.4 and 10.2(b), available cash or other assets (taking such other assets into account at their Fair Market Value at the time of distributions) shall be distributed, at such times and
in such amounts as the Board determines in its discretion, subject to the retention and establishment of reserves of, or payment to third parties of, such funds as it deems necessary with respect to the reasonable business needs of the Company, in
the following order and priority (subject to Sections 7.3 and 7.8 and any Class C Common Unit Designation or New Unit Designation then in effect, provided, that the Company shall not issue or create any Unit which ranks pari
passu with or has priority over the Series A Preferred Unit as to Distributions at any time when any Series A Preferred Unit is outstanding, except as permitted by the Preferred Securities Purchase Agreement): 
 (a) First, to the holders of Series A Preferred Units, collectively, until the entire amount of the Unreturned Capital
Value of all outstanding Series A Preferred Units as of the time of such Distribution has been paid in full in cash. Amounts to be distributed to the holders of Series A Preferred Units pursuant to the first sentence of this
Section 7.2(a) will be distributed among such holders in proportion to and to the extent of the Unreturned Capital Value in respect of the Series A Preferred Units owned by each such holder as of the time of the applicable Distribution.
Except as provided in Section 7.8, no Distribution or any portion thereof

  

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may be made pursuant to Section 7.2(b) through Section 7.2(f) until the entire amount of Unreturned Capital Value of all outstanding Series A Preferred Units as of the
time of such Distribution has been paid in full in cash. 
 (b) Second, to the holders of Series A
Preferred Units, collectively, until the entire amount of Unpaid Yield on all outstanding Series A Preferred Units as of the time of such Distribution has been paid in full in cash. Amounts to be distributed to the holders of Series A Preferred
Units pursuant to the first sentence of this Section 7.2(b) will be distributed among such holders in proportion to and to the extent of the Unpaid Yield on the Series A Preferred Units owned by each such holder as of the time of the
applicable Distribution. Except as provided in Section 7.8, no Distribution or any portion thereof may be made pursuant to Section 7.2(c) through Section 7.2(f) until the entire amount of the Unpaid Yield on all
outstanding Series A Preferred Units as of the time of such Distribution has been paid in full in cash. 
 (c)
Third, to the holders of Class A Common Units, collectively, and to the holders of the Class D Common Units, collectively, pro rata between such groups of holders based on the aggregate number of Points represented by the
Class A Common Units and Class D Common Units, respectively, until the entire amount of the Unreturned Capital Value of all outstanding Class A Common Units as of the time of such Distribution has been paid in full to the holders of
Class A Common Units. Amounts to be distributed to the holders of Class A Common Units pursuant to the first sentence of this Section 7.2(c) will be distributed among such holders in proportion to and to the extent of the
Unreturned Capital Value in respect of the Class A Common Units owned by each such holder as of the time of the applicable Distribution. Amounts to be distributed to the holders of Class D Common Units pursuant to the first sentence of this
Section 7.2(c) will be distributed pro rata among such holders on the basis of the number of Class D Common Units owned by each of them. No Distribution or any portion thereof may be made pursuant to Section 7.2(d)
through Section 7.2(f) until the entire amount of Unreturned Capital Value of all outstanding Class A Common Units as of the time of such Distribution has been paid in full to the holders of Class A Common Units. 
 (d) Fourth, to the holders of Class A Common Units, collectively, and to the holders of the Class D Common Units,
collectively, pro rata between such groups of holders based on the aggregate number of Points represented by the Class A Common Units and Class D Common Units, respectively, until the entire amount of Unpaid Yield on all outstanding
Class A Common Units as of the time of such Distribution has been paid in full to the holders of Class A Common Units. Amounts to be distributed to the holders of Class A Common Units pursuant to the first sentence of this
Section 7.2(d) will be distributed among such holders in proportion to and to the extent of the Unpaid Yield on the Class A Common Units owned by each such holder as of the time of the applicable Distribution. Amounts to be
distributed to the holders of Class D Common Units pursuant to the first sentence of this Section 7.2(d) will be distributed pro rata among such holders on the basis of the number of Class D Common Units owned by each of them. No
Distribution or any portion thereof may be made pursuant to Section 7.2(e) or Section 7.2(f) until the entire amount of the Unpaid Yield on all outstanding Class A Common Units as of the time of such Distribution has
been paid in full to the holders of Class A Common Units. 
  

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 (e) Fifth, subject to Section 7.3, to the holders of
Class A Common Units, Class B Common Units, Class C Common Units, and Class D Common Units (the “Common-Equivalent Units”) upon which less than the Catch-Up Amount has been paid, until an aggregate amount equal to the
Catch-Up Amount has been paid with respect to each Common-Equivalent Unit (on a per-Point basis). Distributions pursuant to this Section 7.2(e) will be first be made only to holders of those Common-Equivalent Units upon which the least
amount of Distributions have theretofore been paid (on a per-Point basis), until Distributions have been paid in respect of such Common Equivalent Units in an aggregate amount per Point equal to the aggregate amount of Distributions per Point paid
on the Common-Equivalent Units which have theretofore been paid the second-least amount on a per-Point basis. Distributions pursuant to this Section 7.2(e) will then be made only to the holders of such former Common-Equivalent Units and
such latter Common-Equivalent Units until Distributions have been paid in respect of all such Common-Equivalent Units in an aggregate amount per Point equal to the aggregate amount of Distributions per Point theretofore paid on the Common-Equivalent
Units which have theretofore been paid the third-least amount on a per-Unit basis, and so on until the same aggregate amount has been paid in respect of all Common-Equivalent Units on a per-Point basis. Amounts to be distributed to holders of any
particular Common-Equivalent Units as described in the second or third sentence of this Section 7.2(e) will be distributed pro rata among the holders of such Units on the basis of the Points represented by such Units. No
Distribution or any portion thereof may be made pursuant to Section 7.2(f) until the aggregate amount of all Distributions made in respect of each Common-Equivalent Unit is equal to the Catch-Up Amount. 
 (f) Sixth, subject to Section 7.3, to the holders of Common Units pro rata among such holders on
the basis of the number of Points represented by the Common Units owned by each of them. 
 Attached hereto as Exhibit B are examples
that demonstrate how Distributions are intended to be made to holders of Units pursuant to this Section 7.2. 
 7.3 No Right to Receive Certain Distributions. Notwithstanding Section 7.2: 
 (a) If at the time any Distribution is made in respect of any Class C Common Unit pursuant to Section 7.2 such Class C Common Unit is an Unvested Class C Common Unit, then the amount of such Distribution (after giving effect to
Section 7.3(b)) shall be withheld from the holder of such Unvested Class C Common Unit until the earlier to occur of (i) the time at which such Unvested Class C Common Unit becomes a Vested Class C Common Unit, whereupon the amount
so withheld shall be promptly paid by the Company to such holder without interest and (ii) the time at which such Unvested Class C Common Unit is no longer eligible for vesting, whereupon the amount so withheld shall be distributed to the other
Members pursuant to Section 7.2 or retained by the Company and held or used for any purpose, as a Majority of the Board may direct. Distributions withheld from a holder pursuant to this Section 7.3(a) will nonetheless be deemed to
have been received by such holder for purposes of Section 7.2(e). 
 (b) Any holder of any Class C
Common Unit will forego distributions that would otherwise be made in respect of such Class C Common Unit from time to time pursuant to Section 7.2 (including by reason of Section 7.3(c)) in such amount(s) as may be required
so that the aggregate amount of Distributions foregone with respect to such Class C Common Unit by reason of this Section 7.3(b) is equal to the Non-Distribution Amount for such Class C Common

  

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Unit. No holder of any Class C Common Unit will later have the right to receive any Distribution which is foregone pursuant to this Section 7.3(b), except to the extent that any
portion of such foregone Distribution may be reallocated to such holder in accordance with Section 7.3(c). Distributions foregone by a holder pursuant to this Section 7.3(b) will nonetheless be deemed to have been received by
such holder for purposes of Section 7.2(e). 
 (c) All Distributions foregone in respect of Class C
Common Units pursuant to Section 7.3(b) will be reallocated and paid instead to the Unitholders in accordance with Section 7.2(e) or Section 7.2(f), as applicable (subject again to being withheld or foregone
pursuant to Section 7.3(a) or 7.3(b)); provided that the holders of Class D Common Units shall not be eligible to have any Distribution foregone in respect of Class C Common Units pursuant to Section 7.3(b)
reallocated and paid to such holders pursuant to this Section 7.3(c) and: 
 (i) for purposes of
reallocating and paying any such Distribution so foregone pursuant to this Section 7.3(c), the provisions of Sections 7.2(e) and 7.2(f) shall be given effect as if no Class D Common Units exist, and 
 (ii) for purposes of determining amounts payable to holders of Class D Common Units pursuant to Section 7.2(e),
amounts paid to holders of other Common-Equivalent Units pursuant to Sections 7.2(e) and 7.2(f) will be excluded from the Catch-Up Amount. 
 7.4 Tax Advances. Subject to the restrictions of any of the Company’s and/or its Subsidiaries’ then applicable debt financing agreements, the Board may cause the Company to
distribute to each Unitholder cash in proportion to and to the extent of such Unitholder’s Quarterly Estimated Tax Amount for the applicable calendar quarter. Any distributions described in this Section 7.4 will be made without
regard for the relative priorities and amounts set forth in Section 7.2. Distributions made pursuant to this Section 7.4 shall be taken into account as advances on distributions made pursuant to Section 7.2, and
shall (to the extent not previously taken into account pursuant to this sentence) reduce the distributions to be made to any Unitholder under Section 7.2, when and as paid by the Company. No Unitholder shall be liable to the Company for
any amount distributed to it pursuant to this Section 7.4, or for any interest on such amount. 
 7.5
Indemnification and Reimbursement for Payments on Behalf of a Unitholder. Except as otherwise provided in this Agreement, if the Company is required by law (as determined by the Tax Matters Partner based on the advice of legal or tax
counsel to the Company) to make any payment on behalf of a Unitholder in its capacity as such (including in respect of withholding taxes, personal property taxes, and unincorporated business taxes, etc.), then such Unitholder (the
“Indemnifying Unitholder”) will indemnify the Company in full for the entire amount paid, including interest, penalties and expenses associated with such payment. At the option of the Board, either: 
 (a) promptly upon notification of an obligation to indemnify the Company, the Indemnifying Unitholder will make a cash
payment to the Company in an amount equal to the full amount to be indemnified (and the amount paid will not be added to the Indemnifying Unitholder’s Capital Account or otherwise deemed to be a Capital Contribution), or 
  

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 (b) the Company will reduce the Distribution giving rise to such payment
and/or any subsequent Distributions which would otherwise be made to the Indemnifying Unitholder until the Company has recovered the amount to be indemnified (and the amount of such reduction will be deemed to have been distributed for all purposes,
and such deemed distribution will reduce the Indemnifying Unitholder’s Capital Account). 
 A Unitholder’s obligation
to make contributions to the Company under this Section 7.5 will survive the termination, dissolution, liquidation and winding up of the Company, and for purposes of this Section 7.5, the Company will be treated as continuing
in existence. The Company may pursue and enforce all rights and remedies it may have against each Unitholder under this Section 7.5, including instituting a lawsuit to collect such contribution with interest calculated at a rate equal to
the Company’s and its Subsidiaries’ effective cost of borrowed funds. 
 7.6 Non-Cash Distributions.
Notwithstanding anything in this Agreement to the contrary, the Company shall not make any Distribution in the form of non-cash property with respect to any class of Common Units unless all holders of such class of Common Units entitled to receive
such Distribution in accordance with Section 7.2 receive the identical form of non-cash consideration. 
 7.7
Redemption of Series A Preferred Units. With respect to any Series A Preferred Unit, such Series A Preferred Unit shall cease to be issued and outstanding and shall be deemed to have been redeemed upon the payment in full in cash of each
of (i) the Unreturned Capital Value of such Series A Preferred Unit, (ii) the Unpaid Yield on such Series A Preferred Unit as of the time the Unreturned Capital Value of such Series A Preferred Unit was paid in full in cash, and
(iii) the Redemption Amount (as that term is defined in the Preferred Securities Purchase Agreement), if any, that is payable pursuant to the Preferred Securities Purchase Agreement upon the redemption of such Series A Preferred Unit, whereupon
(A) the holder of such Series A Preferred Unit shall cease to have any right or obligation hereunder with respect to such Series A Preferred Unit and (B) the Secretary shall amend the Members Schedule to reflect the redemption in full of
such Series A Preferred Unit. 
 7.8 Distributions Upon Compliance with Certain Covenants. 
 Notwithstanding the provisions of Sections 7.2(a) and 7.2(b) and the fact that any Series A Preferred Units are then
outstanding, the Company shall be permitted to make Distributions to the holders of Common Units in accordance with the priorities set forth in Sections 7.2(c), 7.2(d), 7.2(e) and 7.2(f) so long as the Company is in compliance with the
covenants set forth in Paragraph 6B of the Preferred Securities Purchase Agreement. 
 ARTICLE VIII 
 Allocations 
 8.1 Regular Allocations. 
 (a) Generally. Except as otherwise provided in
Section 8.2, Net Profits and Net Losses (if any) for any Fiscal Year shall be allocated among the Members in such a manner that, as of the end of such Fiscal Year, the sum of (i) the Capital Account of each Member,

  

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(ii) such Member’s share of Minimum Gain (as determined according to Treasury Regulation Section 1.704-2(g)) and (iii) such Member’s partner nonrecourse debt minimum gain
(as defined in Treasury Regulation Section 1.704-2(i)(3)) shall be equal to the respective net amounts, positive or negative, which would be distributed to such Member or for which such Member would be liable to the Company under the Delaware
Act, determined as if the Company were to (x) liquidate the assets of the Company for an amount equal to their Book Value and (y) distribute the proceeds of liquidation pursuant to Section 10.2; provided that clauses
(x) and (y) above only apply to this Section 8.1. 
 (b) Allocation for Net Profit
Year. For purposes of this Section 8.1, subject to Section 8.1(d), if the Company has Profits for a Fiscal Year or other period, then (i) Losses will first be allocated to Members whose Capital Accounts are to be
reduced as a result of the allocations under Section 8.1(a), in amounts equal to the respective amounts by which such Capital Accounts are to be so reduced, and (ii) Profits and any remaining Losses will be allocated to Members
whose Capital Accounts are to be increased as a result of the allocations under Section 8.1(a), in the proportion that the amounts of the increases to be so effected in such Members’ respective Capital Accounts bears to the
aggregate amount of the increase to be effected in all such Members’ Capital Accounts as a result of the allocations under Section 8.1(a). 
 (c) Allocation for Net Loss Year. For purposes of this Section 8.1, subject to Section 8.1(d), if the Company has Losses for a Fiscal Year or other period, then
(i) Profits will first be allocated to Members whose Capital Accounts are to be increased as a result of the allocations under Section 8.1(a), in amounts equal to the respective amounts by which such Capital Accounts are to be so
increased, and (ii) Losses and any remaining Profits will be allocated to Members whose Capital Accounts are to be reduced as a result of the allocations under Section 8.1(a), in the proportion that the amounts of the reductions to
be effected in such Members’ respective Capital Accounts bears to the aggregate amount of the reduction to be so effected in all such Members’ Capital Accounts as a result of the allocations under Section 8.1(a). 
 (d) Negative Capital Account Balances. If all items of Profit for a Fiscal Year or other period have been allocated in
accordance with Section 8.1(a) and there remain items of Loss to be allocated, then such items of Loss will be allocated to the Members pro rata according to the number of Units held by each of them. If, prior to making any allocation of
items of Profit or Loss for any Fiscal Year or other period, any Member has a negative Capital Account balance, then items of Profit will be allocated to all such Members, pro rata according to the amounts by which their respective Capital Account
balances are less then zero, until no Member has a negative Capital Account balance. 
 (e) General.
Nothing herein is intended to give rise to any guaranteed payments that would be required to be allocated to any Member. The Unitholders intend that allocations hereunder affecting Capital Accounts shall be made such that liquidation distributions
made under Section 10.2(b)(iii) shall be the same as if made in accordance with positive Capital Account balances. 
  

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 8.2 Regulatory and Special Allocations. Notwithstanding the
provisions of Section 8.1: 
 (a) To the extent an adjustment to the adjusted tax basis of any
Company asset pursuant to Code Section 734(b) or 743(b) is required to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated, as provided in Treasury Regulation
Section 1.704-1(b)(2)(iv)(m), as an item of Profits (if the adjustment increases the basis of the asset) or Losses (if the adjustment decreases such basis) and such Profits or Losses shall be specially allocated to the Unitholders in a manner
consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Treasury Regulations. 
 (b) If there is a net decrease in Company Minimum Gain (determined according to Treasury Regulation Section 1.704-2(d)(1)) during any Taxable Year, each Unitholder shall be specially allocated
Profits for such Taxable Year (and, if necessary, subsequent Taxable Years) in an amount equal to such Unitholder’s share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulation Section 1.704-2(g).
The items to be so allocated shall be determined in accordance with Treasury Regulation Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 8.2(b) is intended to comply with the minimum gain chargeback requirement in Treasury
Regulation Section 1.704-2(f) and shall be interpreted consistently therewith. 
 (c) Unitholder Nonrecourse
Deductions shall be allocated in the manner required by Treasury Regulation Section 1.704-2(i). Except as otherwise provided in Treasury Regulation Section 1.704-2(i)(4), if there is a net decrease in Unitholder Minimum Gain during any
Taxable Year, each Unitholder that has a share of such Unitholder Minimum Gain shall be specially allocated Profits for such Taxable Year (and, if necessary, subsequent Taxable Years) in an amount equal to that Unitholder’s share of the net
decrease in Unitholder Minimum Gain. Items to be allocated pursuant to this paragraph shall be determined in accordance with Treasury Regulation Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 8.2(c) is intended to comply with the
minimum gain chargeback requirements in Treasury Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 
 (d) In the event any Unitholder unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), Profits shall be
specially allocated to such Unitholder in an amount and manner sufficient to eliminate the Adjusted Capital Account Deficit created by such adjustments, allocations or distributions as quickly as possible. This Section 8.2(d) is intended
to comply with the qualified income offset requirement in Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 (e) The allocations set forth in Sections 8.2(a), 8.2(b), 8.2(c) and 8.2(d) (the “Regulatory
Allocations”) are intended to comply with certain requirements of the Treasury Regulations under Code Section 704. Notwithstanding any other provisions of this Article VIII (other than the Regulatory Allocations), the Regulatory
Allocations shall be taken into account in allocating Profits and Losses among Unitholders so that, to the extent possible, the net amount of such allocations of Profits and Losses and other items and the Regulatory Allocations to each Unitholder
shall be equal to the net amount that would have been allocated to such Unitholder if the Regulatory Allocations had not occurred. 
  

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 8.3 Curative Allocations. If the Tax Matters Partner determines, after
consultation with counsel experienced in income tax matters, that the allocation of any item of Company income, gain, loss, deduction or credit is not specified in this Article VIII (an “unallocated item”), or that the
allocation of any item of Company income, gain, loss, deduction or credit hereunder is clearly inconsistent with the Unitholders’ economic interests in the Company (determined by reference to the general principles of Treasury Regulation
Section 1.704-1(b) and the factors set forth in Treasury Regulation Section 1.704-1(b)(3)(ii)) (a “misallocated item”), then the Board may allocate such unallocated items, or reallocate such misallocated items, to reflect
such economic interests; provided that no such allocation will be made without the prior consent of each Unitholder that would be affected thereby (which consent no such Unitholder may unreasonably withhold) and provided further that no such
allocation shall have any material effect on the amounts distributable to any Unitholder, including the amounts to be distributed upon the complete liquidation of the Company. 
 8.4 Tax Allocations. 
 (a) All income, gains, losses, deductions and credits of the Company shall be allocated, for federal, state and local income tax purposes, among the Unitholders in accordance with the allocation of such
income, gains, losses, deductions and credits among the Unitholders for computing their Capital Accounts, except that if any such allocation for tax purposes is not permitted by the Code or other applicable law, the Company’s subsequent income,
gains, losses, deductions and credits shall be allocated among the Unitholders for tax purposes, to the extent permitted by the Code and other applicable law, so as to reflect as nearly as possible the allocation set forth herein in computing their
Capital Accounts. 
 (b) Items of Company taxable income, gain, loss and deduction with respect to any property
contributed to the capital of the Company shall be allocated among the Unitholders in accordance with Code Section 704(c) and the traditional method of Treasury Regulation Section 1.704-3(b), or such other method elected by the Tax Matters
Partner, so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its Book Value. 
 (c) If the Book Value of any Company property is adjusted pursuant to clause (b) of the definition of “Book
Value”, subsequent allocations of items of taxable income, gain, loss and deduction with respect to such property shall take account of any variation between the adjusted basis of such property for federal income tax purposes and its Book Value
in the same manner as under Code Section 704(c). 
 (d) Allocations of tax credit, tax credit recapture, and
any items related thereto shall be allocated to the Unitholders according to their interests in such items as determined by the Board taking into account the principles of Treasury Regulation Section 1.704-1(b)(4)(ii). 
 (e) Allocations pursuant to this Section 8.4 are solely for purposes of federal, state and local taxes and shall
not affect, or in any way be taken into account in computing, any Unitholder’s Capital Account or share of Profits, Losses, distributions or other items pursuant to any provisions of this Agreement. 
  

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 8.5 Certain General Provisions. Anything herein to the contrary
notwithstanding, allocations affecting Capital Accounts shall be made such that liquidation distributions made under Section 10.2(b)(iii) shall be the same as if made in accordance with positive Capital Account balances. 

ARTICLE IX 
 Elections and Reports 
 9.1 Generally. The Company will keep appropriate books and records
with respect to the Company’s business, including all books and records necessary to provide any information, lists and copies of documents required to be provided pursuant to Section 9.3 or pursuant to applicable laws. The
Unitholders (subject to reasonable confidentiality requirements that the Board may impose) shall have such right to request and receive such information concerning the Company and its affairs as the Company is required by the Delaware Act to
provide. 
 9.2 Tax Status. The Unitholders intend that the Company be treated as a partnership for
federal, state and local income tax purposes, and the Company and each Unitholder shall file all tax returns on the basis consistent therewith. 
 9.3 Reports. The Company will use reasonable efforts to deliver or cause to be delivered, by March 1 (and, in any event, will deliver not later than May 31) of each year, to
each Person who was a Unitholder at any time during the previous Taxable Year, all information necessary for the preparation of such Person’s United States federal income tax returns and any state, local and foreign income tax returns which
such Person is required to file as a result of the Company being engaged in a trade or business within such state, local or foreign jurisdiction, including a statement showing such Person’s share of income, gains, losses, deductions and credits
for such year for United States federal income tax purposes (and, if applicable, state, local or foreign income tax purposes) and the amount of any distributions made to or for the account of such Person. Upon the written request of any such Person,
the Company will use reasonable efforts to deliver or cause to be delivered any additional information necessary for the preparation of any state, local and foreign income tax returns which must be filed by such Person. 
 9.4 Tax Elections. The Tax Matters Partner will determine whether to make or revoke any available election pursuant to
the Code. Each Unitholder will upon request supply the information necessary to give proper effect to any such election. 
 9.5 Tax Controversies. ABRY Partners is designated the “Tax Matters Partner” (as defined in Code Section 6231) for the Company, and is authorized to represent the Company (at the Company’s
expense) in connection with all examinations of the Company’s affairs by tax authorities, including resulting administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith;
provided that the Tax Matters Partner may be replaced by action of a Majority of the Members. Each Unitholder agrees to

  

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cooperate with the Tax Matters Partner and to do or refrain from doing any or all things reasonably requested by the Tax Matters Partner with respect to the conduct of such proceedings. Subject
to the foregoing proviso, the Tax Matters Partner will have sole discretion to determine whether the Company (either in its own behalf or on behalf of the Unitholders) will contest or continue to contest any tax deficiencies assessed or proposed to
be assessed by any taxing authority. Any deficiency for taxes imposed on any Unitholder (including penalties, additions to tax or interest imposed with respect to such taxes) will be paid by such Unitholder, and if required to be paid (and actually
paid) by the Company, will be recoverable from such Unitholder as provided in Section 7.5. The Company shall reimburse the Tax Matters Partner for any and all reasonable expenses (including legal and accounting fees) incurred by the Tax
Matters Partner in connection with the fulfillment of its duties under this Section 9.5. This provision is not intended to authorize the Tax Matters Partner to take any action left to the determination of a partner under Sections 6222
through 6231 of the Code. 
 9.6 UBTI/ECI. The Company shall use its best efforts not to engage, directly
(or indirectly through any entity owned by the Company that is treated as a pass-through entity for United States federal income tax purposes), in any activity that would cause a Unitholder to recognize, solely as a result of its status as a
Unitholder in the Company, either (a) unrelated business taxable income within the meaning of Section 512 of the Code (including by reason of Section 514 of the Code); or (b) income that is effectively connected with the conduct
of a trade or business in the United States, within the meaning of Section 871(b) or Section 882(a)(1) of the Code (including income described in Section 897 of the Code which is treated as income within the meaning of
Section 871(b) or 882(a)(1) of the Code). The parties anticipate that any acquisition of all or a portion of the business of, or all or a substantial portion of the assets of, any Person will be made in or through “C” corporations.

 ARTICLE X 
 Dissolution and Liquidation 
 10.1 Dissolution. The
Company shall be dissolved and its affairs wound up only upon the happening of any of the following events: 
 (a) The sale or other disposition by the Company of all or substantially all of the assets it then owns; 
 (b) The election to dissolve the Company by action of a Majority of the Members; or 
 (c) The entry of
a decree of judicial dissolution under § 18-802 of the Delaware Act; provided that, notwithstanding anything contained herein to the contrary, no Member shall make an application for the dissolution of the Company pursuant to
§ 18-802 of the Delaware Act without the approval of a Majority of the Members. 
 Dissolution of the Company shall be
effective on the day on which the event occurs giving rise to the dissolution, but the Company shall not terminate until the winding up of the Company has been completed, the assets of the Company have been distributed as provided in
Section 10.2 and the Certificate shall have been canceled. 
  

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 10.2 Liquidation. 
 (a) Liquidator. Upon dissolution of the Company, the Board will appoint a Person to act as the
“Liquidator,” and such Person shall act as the Liquidator unless and until a successor Liquidator is appointed as provided in this Section 10.2. The Liquidator may be removed at any time, with or without cause, by notice
of removal and appointment of a successor Liquidator approved by the Board. Any successor Liquidator will succeed to all rights, powers and duties of the former Liquidator. The right to appoint a successor or substitute Liquidator in the manner
provided in this Section 10.2 will be recurring and continuing for so long as the functions and services of the Liquidator are authorized to continue under the provisions of this Agreement, and every reference in this Agreement to the
Liquidator will be deemed to refer also to any such successor or substitute Liquidator appointed in the manner provided in this Section 10.2. The Liquidator will receive as compensation for its services as follows: (1) no additional
compensation, if the Liquidator is an employee of the Company or any of its Subsidiaries, or (2) if the Liquidator is not such an employee, such compensation as the Board may approve, plus, in either case, reimbursement of the Liquidator’s
out-of-pocket expenses in performing its duties. 
 (b) Liquidating Actions. The Liquidator will liquidate
the assets of the Company and apply and distribute the proceeds of such liquidation in the following order of priority, unless otherwise required by mandatory provisions of applicable law: 
 (i) First, to the payment of the Company’s debts and obligations to its creditors (including any
Unitholders who are creditors), including sales commissions and other expenses incident to any sale of the assets of the Company, in order of the priority provided by law. 
 (ii) Second, to the establishment of and additions to such reserves as the Board deems reasonably necessary or
appropriate. 
 (iii) Third, to the Unitholders, in accordance with Section 7.2.

 The reserves established pursuant to clause (ii) above will be deposited by the Liquidator with a bank or other
financial institution, to be used for the purpose of paying any such contingent or unforeseen liabilities or obligations and, as the Board deems advisable, such reserves will be distributed to the Unitholders in accordance with
Section 7.2. The allocations and distributions provided for in this Agreement are intended to result in the Capital Account of each Unitholder immediately prior to the distribution of the Company’s assets pursuant to this
Section 10.2(b) being equal to the amount distributable to such Unitholder pursuant to this Section 10.2(b). The Company is authorized to make appropriate adjustments in the allocation of Profits and Losses as necessary to
cause the amount of each Unitholder’s Capital Account immediately prior to the distribution of the Company’s assets pursuant to this Section 10.2(b) to equal the amount distributable to such Unitholder pursuant to this
Section 10.2(b). 
 (c) Distribution in Kind. Notwithstanding the provisions of
Section 10.2(b) which require the liquidation of the assets of the Company, but subject to the order of priorities set forth in Section 10.2(b), if upon dissolution of the Company the Board determines that an

  

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immediate sale of part or all of the Company’s assets would be impractical or could cause undue loss to the Unitholders, the Board may, in its sole discretion, defer the liquidation of any
assets except those necessary to satisfy Company liabilities and reserves, and may, in its absolute discretion, distribute to the Unitholders, in lieu of cash, as tenants in common or otherwise, as the Board may elect, and in accordance with the
provisions of Section 10.2(b), such Company assets as the Liquidator deems not suitable for liquidation or undivided interests therein. Any such distribution in kind will be subject to such conditions relating to the disposition and
management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operating of such properties at such time. For purposes of any such distribution, the Board will determine the Fair Market Value of
any property to be distributed in accordance with any valuation procedure which the Board reasonably deems appropriate. 
 (d) Reasonable Time for Winding Up. A reasonable time will be allowed for the orderly winding up of the business and affairs of the Company and the liquidation of its assets pursuant to Section 10.2(b) in order to
minimize any losses otherwise attendant upon such winding up. Distributions upon liquidation of the Company (or any Unitholder’s interest in the Company) and related adjustments will be made by the end of the Taxable Year of the liquidation
(or, if later, within 90 days after the date of such liquidation) or as otherwise permitted by Treasury Regulation Section 1.704-1(b)(2)(ii)(b). 
 (e) Termination. Upon completion of the distribution of the assets of the Company as provided in Section 10.2(b) or 10.2(c), the Company shall be terminated and the Liquidator
shall cause the cancellation of the Certificate in the State of Delaware and of all qualifications and registrations of the Company as a foreign limited liability company in jurisdictions other than the State of Delaware and shall take such other
actions as may be necessary to terminate the Company. 
 ARTICLE XI 
 Transfer of Units 
 11.1 Restrictions. Each Member acknowledges and agrees that such Member shall not Transfer any Unit except in accordance with the provisions of this Article XI, the Members Agreement, and any applicable Incentive
Unit Purchase Agreement. Any attempted Transfer in violation of the preceding sentence shall be deemed null and void for all purposes, and the Company will not record any such Transfer on its books or treat any purported transferee as the owner of
such Unit for any purpose. 
 11.2 General Restrictions on Transfer. 
 (a) Notwithstanding anything to the contrary in this Agreement, no transferee of any Unit received pursuant to a Transfer
(but excluding any transferee that is a Member immediately prior to such a Transfer, who shall automatically become a Member with respect to any additional Units he, she or it so acquires) shall become a Member in respect of or be deemed to have any
ownership rights in the Unit so Transferred unless the purported transferee is admitted as a Member as set forth in Section 11.3(i). 
  

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 (b) Following a Transfer of any Unit that is permitted under this
Article XI, the Members Agreement, and any applicable Incentive Unit Purchase Agreement, the transferee of such Unit shall succeed to the Capital Account associated with such Unit and shall receive allocations and distributions under
Articles VI, VII, VIII and X in respect of such Unit(s). Notwithstanding the foregoing, Profits, Losses and other items will be allocated between the transferor and the transferee according to Code Section 706.

 (c) Any Member who Transfers all of his, her or its Units in accordance with this Agreement, the Members
Agreement, and any applicable Incentive Unit Purchase Agreement (i) shall cease to be a Member upon such Transfer, and (ii) shall no longer possess or have the power to exercise any rights or powers of a Member of the Company. 

11.3 Procedures for Transfer. Subject in all events to the general restrictions on Transfers contained in
Sections 11.1, 11.2 and 11.5 and any applicable restrictions in the Members Agreement, a Member may Transfer all or any part of his or its Units in accordance with this Section 11.3. 
 (i) No transferee of any Unit may be admitted as a Member of the Company until such time as such transferee has executed and
delivered to the Secretary a written undertaken to be bound by the terms and conditions of this Agreement substantially in the form of Exhibit A. Upon the amendment of the Members Schedule by the Secretary and the satisfaction of any other
applicable conditions set forth in Section 11.3(ii) below, such prospective transferee shall be admitted as a Member and deemed listed as such on the books and records of the Company and thereupon the Company shall reissue the applicable
Units in the name of such prospective transferee. The provisions of this Section 11.3(i) shall not apply with respect to the Transfer of any Unit to a transferee that is a Member immediately prior to such Transfer. 
 (ii) Unless such delivery is waived by the Company, no Member may Transfer any Restricted Securities (except pursuant to an
effective registration statement under the Securities Act) without first delivering to the Company an opinion of counsel reasonably acceptable in form and substance to the Company (which counsel will be reasonably acceptable to the Company) that
registration under the Securities Act is not required in connection with such Transfer. If such opinion of counsel states that no subsequent Transfer of such Restricted Securities will require registration under the Securities Act, the Company will
promptly upon such Transfer deliver new certificates for such securities which do not bear the Securities Act legend set forth in Section 11.4(b). 
  

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 11.4 Legend. 
 (a) The certificates, if any, representing the Units will bear the following legends: 
 THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE CONDITIONS SPECIFIED IN THE LIMITED LIABILITY COMPANY
AGREEMENT OF THE ISSUER (THE ‘COMPANY’), AS IN EFFECT FROM TIME TO TIME. A COPY OF SUCH LIMITED LIABILITY COMPANY AGREEMENT AS IN EFFECT FROM TIME TO TIME SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN
REQUEST. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO A MEMBERS AGREEMENT, DATED AS OF JUNE 11,
2004, (AS IN EFFECT FROM TIME TO TIME), AMONG THE COMPANY AND CERTAIN OF THE COMPANY’S MEMBERS, AS IN EFFECT FROM TIME TO TIME. A COPY OF SUCH MEMBERS AGREEMENT AS IN EFFECT FROM TIME TO TIME SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO
THE HOLDER HEREOF UPON WRITTEN REQUEST. 
 (b) Each certificate or instrument evidencing Restricted Securities
and each certificate or instrument issued in exchange for or upon the Transfer of any Restricted Securities (if such securities remain Restricted Securities after such Transfer) shall be stamped or otherwise imprinted with a legend in substantially
the following form: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE ‘ACT’), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. 
 Upon the request of any holder of Restricted Securities, the Company shall remove the Securities Act legend set forth above from the
certificates for such Restricted Securities if such Restricted Securities are eligible for sale pursuant to Rule 144(k) (or any similar rule or rules then in effect) under the Securities Act. 
 11.5 Limitations. 
 (a) Notwithstanding anything to the contrary in this Agreement, no Unit may be Transferred or issued by the Company if such Transfer or issuance would require the Company to register under the Investment
Company Act of 1940, as amended from time to time. 
 (b) In order to permit the Company to qualify for the
benefit of a “safe harbor” under Code Section 7704, notwithstanding anything to the contrary in this Agreement, no Transfer of any Unit shall be permitted or recognized by the Company (within the meaning of Treasury Regulation
Section 1.7704-1(d)), and the Company shall not issue any Units, if and to the extent that such Transfer or issuance would cause the Company to have more than 100 partners (within the meaning of Treasury Regulation Section 1.7704-1(h),
including the look-through rule in Treasury Regulation Section 1.7704-1(h)(3)). 
  

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 (c) Notwithstanding anything to the contrary in this Agreement, no Unit may
be Transferred and the Company may not issue any Unit unless (i) such Transfer or issuance, as the case may be, shall not affect the Company’s existence or qualification as a limited liability company under the Delaware Act, (ii) such
Transfer or issuance, as the case may be, shall not cause the Company to be classified as other than a partnership for United States federal income tax purposes, (iii) such Transfer or issuance, as the case may be, shall not result in a
termination of the Company under Code Section 708, unless the Board determines that any such termination will not have a material adverse impact on the Members and (iv) such Transfer or issuance, as the case may be, shall not cause the
application of the tax-exempt use property rules of Code Sections 168(g)(l)(B) and 168(h) to the Company or its Members. 
 ARTICLE XII 
 Miscellaneous Provisions 
 12.1 Notices. All notices, demands or other communications to be given or delivered by reason of
the provisions of this Agreement shall be in writing and shall be deemed to have been given (a) on the date of personal delivery to the recipient or an officer of the recipient, or (b) when sent by telecopy or facsimile machine to the
number shown below on the date of such confirmed facsimile or telecopy transmission (provided that a confirming copy is sent via overnight mail), or (c) when properly deposited for delivery by a nationally recognized commercial overnight
delivery service, prepaid, or on the third (3rd) Business Day after deposit in the United States mail, certified or registered mail, postage prepaid, return receipt requested. Such notices, demands and other communications shall be sent to each Member at the address set forth for
such Member in the Members Agreement (including any joinder thereto) as then in effect and to the Company at the address set forth below: 
 Language Line Holdings, LLC 
 c/o ABRY Partners IV, L.P. 
 111 Huntington Avenue 
 30th Floor 
 Boston, MA 02199 
 Facsimile: 617-859-8797 
 Attention: Peggy Koenig 
 A copy of notices to the Company (which will not constitute notice to the Company) shall be sent to: 
 Kirkland & Ellis LLP 
 Citigroup Center 
 153 East 53rd Street 
 New York, NY 10022 
 Facsimile: 212-446-4900 
 Attention: John L. Kuehn, Esq. 
 or to such other address or to the attention of such Person as the recipient party has specified by prior written notice to the sending party. 

12.2 Governing Law. To the extent required by the Delaware Act, all issues and questions concerning the application,
construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules to this Agreement shall be governed by, and construed in accordance with, the Delaware Act, without giving to effect to any choice of law or

  

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conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of any other law. In all other respects, all issues and questions
concerning the application, construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules to this Agreement shall be governed by, and construed in accordance with the laws of the State of New York, without
giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
 12.3 Headings and Sections. The headings in this Agreement are inserted for convenience only and are in no way intended
to describe, interpret, define, or limit the scope, extent or intent of this Agreement or any provision of this Agreement. Unless the context requires otherwise, all references in this Agreement to Sections, Articles, Exhibits or Schedules shall be
deemed to mean and refer to Sections, Articles, Exhibits or Schedules of or to this Agreement. 
 12.4 Amendment and
Waiver. 
 (a) Subject to Sections 12.4(b) through 12.4(g), no modification,
amendment or waiver of any provision of the Certificate or this Agreement, whether by merger, consolidation or otherwise, shall be effective against any party hereto unless such modification, amendment or waiver is approved in writing by a Majority
of the Members; provided that: (i) no such modification, amendment or waiver will adversely affect the rights hereunder of any of the parties hereto when compared with its effect on the other similarly situated parties hereto without the
prior written approval of a majority-in-interest of such adversely affected parties, (ii) no such modification, amendment or waiver will adversely affect the rights hereunder of any holder of Series A Preferred Units without the prior written
approval of the holders of a majority of the Series A Preferred Units (provided that such approving holders must include at least one Continuing Series A Preferred Holder if at the time such action is approved there is any Continuing Series A
Preferred Holder), and (iii) no such modification, amendment or waiver will adversely affect the rights hereunder of any holder of Class D Common Units without the prior written approval of the holders of the Class D Majority. For purposes of
this Section 12.4, any merger or consolidation that would have the effect of amending this Agreement pursuant to Section 18-209(f) of the Delaware Act shall be deemed to be an amendment of this Agreement subject to the provisions of
this Section 12.4. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms. 
 (b) Notwithstanding anything in
Section 12.4(a) to the contrary, neither the Certificate nor this Agreement may be modified, amended or waived (whether by merger, consolidation or otherwise) without the unanimous written consent of the holders of Series A Preferred
Units if the effect of such modification, amendment or waiver would (A) modify the definition of “Yield,” “Unpaid Yield” or “Unreturned Capital Value,” as such defined terms apply to the Series A Preferred Units,
(B) repeal or modify Section 7.2 as it specifically relates to the Series A Preferred Units, or (C) repeal or modify the terms of this Section 12.4(b). 
  

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 (c) Notwithstanding anything in Section 12.4(a) to the contrary,
neither the Certificate nor this Agreement may be modified, amended or waived (whether by merger, consolidation or otherwise) without the unanimous written consent of the holders of Outside Investor Class D Units if the effect of such modification,
amendment or waiver would (A) modify the definition of “Points” (as it specifically relates to Class D Common Units) or “Dilution Factor” or (B) repeal or modify the terms of this Section 12.4(c) or the
definition of “Outside Investor Class D Common Units.” 
 (d) Notwithstanding anything in
Section 12.4(a) to the contrary, neither the Certificate nor this Agreement may be modified, amended or waived (whether by merger, consolidation or otherwise) without the prior written approval of at least one Continuing Class A
Common Holder if at the time of approval of such action there is any Continuing Class A Common Holder if the effect of such modification, amendment or waiver would (i) modify or repeal the definition of “Points,”
“Yield,” “Unpaid Yield” or “Unreturned Capital Value” as such terms specifically relate to the Class A Common Units, (ii) repeal or modify Section 7.2 as it specifically relates to the Class A
Common Units, (iii) otherwise reduce the rights granted to any Member under the first sentence of Section 4.2 or Article VI, VIII or IX, (iv) conflict with the terms of the last sentence of
Section 3.1(b) or Section 3.3(b) or (v) repeal or modify the terms of this Section 12.4(d). 
 (e) Notwithstanding anything in Section 12.4(a) to the contrary, no modification, amendment or waiver (whether by merger, consolidation or otherwise) of: (i) any requirement in this
Agreement that any action be approved or joined in by a Continuing Class A Common Holder or the definition of the term “Continuing Class A Common Holder” will be effective as against New York Life or any of its Affiliates unless
either such action is approved in writing by New York Life or at the time of approval of such action neither New York Life nor any of its Affiliates is a Continuing Class A Common Holder, (ii) any requirement in this Agreement that any
action be approved or joined in by a Continuing Class D Common Holder or the definition of the term “Continuing Class D Common Holder” will be effective as against New York Life or any of its Affiliates unless either such action is
approved in writing by New York Life or at the time of approval of such action neither New York Life nor any of its Affiliates is a Continuing Class D Common Holder, (iii) any requirement in this Agreement that any action be approved or joined
in by a Continuing Series A Preferred Holder or the definition of the term “Continuing Series A Preferred Holder” will be effective as against New York Life or any of its Affiliates unless either such action is approved in writing by New
York Life or at the time of approval of such action neither New York Life nor any of its Affiliates is a Continuing Series A Preferred Holder, or (iv) this Section 12.4(e) will be effective as against New York Life or any of its
Affiliates unless either such action is approved by New York Life or at the time of approval of such action neither New York Life nor any of its Affiliates is a Continuing Class A Common Holder, a Continuing Class D Common Holder or a
Continuing Series A Preferred Holder. 
 (f) Notwithstanding anything in Section 12.4(a) to the
contrary, no modification, amendment or approval (whether by merger, consolidation or otherwise) of: (i) any requirement in this Agreement that any action be approved or joined in by a Continuing Class A Common Holder or the definition of
the term “Continuing Class A Common Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in

  

 - 47 - 

 
writing by Merrill or at the time of approval of such action neither Merrill nor any of its Affiliates is a Continuing Class A Common Holder, (ii) any requirement in this Agreement that
any action be approved or joined in by a Continuing Class D Common Holder or the definition of the term “Continuing D Common Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in
writing by Merrill or at the time of approval of such action neither Merrill nor any of its Affiliates is a Continuing Class D Common Holder, (iii) any requirement in this Agreement that any action be approved or joined in by a Continuing
Series A Preferred Holder or the definition of the term “Continuing Series A Preferred Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in writing by Merrill or at the time of
approval of such action neither Merrill nor any of its Affiliates is a Continuing Series A Preferred Holder, or (iv) this Section 12.4(f) will be effective against Merrill or any of its Affiliates unless either such action is
approved by Merrill or at the time of approval of such action neither Merrill nor any of its Affiliates is a Continuing Class A Common Holder, a Continuing Class D Common Holder or a Continuing Series A Preferred Holder. 
 (g) Notwithstanding anything in this Section 12 to the contrary, a modification, amendment or waiver (whether by
merger, consolidation or otherwise) made to reflect (A) the terms and conditions of any new class or series of Equity Securities (with respect to such Equity Securities) and any restrictions, rights, preferences and privileges associated
therewith or (B)the restrictions on or rights of any Person who purchases any Equity Securities of the Company after the date hereof (with respect to such Equity Securities) shall, in each case, require only the approval of a Majority of the
Members; provided that no such modification, amendment or waiver will adversely affect the rights hereunder of any of the parties hereto when compared with its effect on the other similarly situated parties hereto without the prior written
approval of a majority-in-interest of such adversely affected parties. 
 12.5 Binding Effect. Except as otherwise
provided to the contrary in this Agreement, this Agreement shall be binding upon and inure to the benefit of the Members and their respective distributees, heirs, legal representatives, executors, administrators, successors and permitted assigns;
provided that none of (a) the rights of New York Life (or any of its Affiliates), in its capacity as a Continuing Class A Common Holder, Continuing Class D Common Holder and/or Continuing Series A Preferred Holder, pursuant to the
definition of the terms “Class D Majority,” “Outside Class D Majority” or “Majority Redeeming Class D Holders,” Section 5.7 or Section 12.4 may be assigned (other than to an Affiliate of New York
Life), nor (b) the rights of Merrill (or any of its Affiliates), in its capacity as a Continuing Class A Common Holder, Continuing Class D Common Holder and/or Continuing Series A Preferred Holder, pursuant to the definition of the terms
“Class D Majority,” “Outside Class D Majority” or “Majority Redeeming Class D Holders,” Section 5.7 or Section 12.4 may be assigned (other than to an Affiliate of Merrill) in each case without
both the prior written consent of the Company and approval of a Majority of the Board. 
 12.6
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and shall be binding upon the Company and the Member who executed the same, but all of such counterparts shall
constitute the same agreement. 
  

 - 48 - 

 12.7 Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this Agreement. 
 12.8 Remedies. Each of
the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorney’s fees) caused by any breach of any provision of this Agreement and to exercise
all other rights existing in its favor. The Members agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or
equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. 
 12.9 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY
OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY. 
 12.10 No Strict Construction. The parties to this Agreement have participated
jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties to this Agreement, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 
 12.11 Entire Agreement. Except as otherwise expressly set forth in this Agreement, this Agreement and the other agreements referred to in this Agreement (including the Related Agreements) embody the complete agreement
and understanding among the parties to this Agreement with respect to the subject matter of this Agreement and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have
related to the subject matter of this Agreement in any way (including the Existing Agreement). This Agreement shall be deemed effective on the date hereof upon the execution hereof. 
 12.12 Parties in Interest. Nothing herein shall be construed to be to the benefit of or enforceable by any Person that
is not a party hereto including any creditor of the Company. 
  

 - 49 - 

 12.13 Inconsistent Provisions of the Members Agreement. In the event
that, at any time, any provision of this Agreement is inconsistent with the requirements of any provision of the Members Agreement, the terms of the Members Agreement shall supersede and prevail over the provisions of this Agreement, and the Members
shall take such action as may be necessary to amend any such provision in this Agreement to conform with such requirements of the Members Agreement. 
 12.14 Submission to Jurisdiction. ANY AND ALL SUITS, LEGAL ACTIONS OR PROCEEDINGS ARISING OUT OF THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND EACH MEMBER HEREBY SUBMITS TO AND ACCEPTS THE EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF SUCH SUITS, LEGAL ACTIONS OR PROCEEDINGS. IN ANY SUCH SUIT, LEGAL ACTION OR
PROCEEDING, EACH MEMBER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREES THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO IT AT ITS ADDRESS SET FORTH IN THE BOOKS AND RECORDS OF THE COMPANY.
TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OR ANY SUCH SUIT, LEGAL ACTION OR PROCEEDING IN ANY SUCH COURT AND HEREBY FURTHER WAIVES ANY
CLAIM THAT ANY SUIT, LEGAL ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 12.15
Time of the Essence; Computation of Time. Time is of the essence for each and every provision of this Agreement. Whenever the last day for the exercise of any privilege or the discharge or any duty hereunder shall fall upon a day
that is not a Business Day, the party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding day which is a Business Day. 
 12.16 Certain Terms. The use of the word “including” herein shall mean “including without limitation.” Any definitions used herein defined in the plural shall be
deemed to include the singular as the context may require and any definitions used herein defined in the singular shall be deemed to include the plural as the context may require. Wherever reference is made herein to the male, female or neuter
genders, such reference shall be deemed to include any of the other genders as the context may require. 
 * * * * * 

 

 - 50 - 

 IN WITNESS WHEREOF, the undersigned, have executed this Amended and Restated Limited
Liability Company Agreement as of the date first written above. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By: 	 	 
		 	Name:
		 	Title:
	
	ABRY PARTNERS IV, L.P.
		
	By: 	 	ABRY Capital Partners, L.P.,
Its General Partner
		
	By: 	 	ABRY Capital Partners, LLC,
Its General Partner
		
	By: 	 	 
		 	Name:
		 	Title:
	
	ABRY INVESTMENT PARTNERSHIP, L.P.
		
	By: 	 	ABRY Investment GP, LLC
		
	By: 	 	 
		 	Name:
		 	Title:

 [more signatures follow on
next page] 

			
	ABRY MEZZANINE PARTNERS, L.P.
		
	By: 	 	ABRY MEZZANINE INVESTORS, L.P.,
its general partner
		
	By: 	 	ABRY MEZZANINE HOLDINGS LLC
its general partner
		
	By: 	 	 
		 	Name:
		 	Title:
	
	MERRILL LYNCH CAPITAL CORPORATION
		
	By: 	 	 
		 	Name:
		 	Title:
	
	NEW YORK LIFE CAPITAL PARTNERS II, L.P.
		
	By: 	 	NYLCAP Manager LLC,
its investment manager
		
	By: 	 	 
		 	Name:
		 	Title:

 [more signatures follow on
next page] 

			
	DENNIS G. DRACUP DECLARATION OF TRUST DATED 01.19.1999.
		
	By: 	 	 
		 	Name: Dennis G. Dracup, Trustee
	
	CHRISTINE L. DRACUP DECLARATION OF TRUST DTED 01.19.1999.
		
	By: 	 	 
		 	Name: Christine L. Dracup, Trustee
	
	 
	MATTHEW GIBBS
	
	 
	JAMES MOORE
	
	 
	JEANNE ANDERSON
	
	 
	DENNIS BAILEY
	
	 
	PHIL SPECIALE
	
	 
	YUNG-CHUNG HEH

 Exhibit A 
 FORM OF JOINDER TO AMENDED 
 AND RESTATED LIMITED
LIABILITY COMPANY AGREEMENT 
 THIS JOINDER to the Amended and Restated Limited Liability Company Agreement of Language
Line Holdings, LLC, a Delaware limited liability company (the “Company”), dated as of June [        ], 2004, as amended or restated from time to time, by and among the Company
and the Members of the Company (the “Agreement”), is made and entered into as of [                    ] by and between
the Company and [                    ] (“Holder”). Capitalized terms used herein but not otherwise defined shall have
the meanings set forth in the Agreement. 
 WHEREAS, on the date hereof, Holder has acquired
[                ] [Class/Series] [        ] Units from
[                    ] and the Agreement and the Company require Holder, as a holder of such
[Class/Series] [        ] Units, to become a party to the Agreement, and Holder agrees to do so in accordance with the terms hereof. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties of this Joinder hereby agree as follows: 
 1. Agreement to be
Bound. Holder hereby (i) acknowledges that it has received and reviewed a complete copy of the Agreement and (ii) agrees that upon execution of this Joinder, it shall become a party to the Agreement and shall be fully bound by, and
subject to, all of the covenants, terms and conditions of the Agreement as though an original party thereto and shall be deemed, and is hereby admitted as, a Member for all purposes thereof and entitled to all the rights incidental thereto.

 2. Governing Law. This Agreement and the rights of the parties hereunder shall be interpreted in accordance with
the laws of the State of Delaware, and all rights and remedies shall be governed by such laws without regard to principles of conflicts of laws. 
 3. Descriptive Headings. The descriptive headings of this Joinder are inserted for convenience only and do not constitute a part of this Joinder. 
 4. Counterparts. This Joinder may be executed in counterparts each of which, taken together, shall constitute one and the same
original. 
 * * * * * 
  

 A - 1 

 IN WITNESS WHEREOF, the parties hereto have executed this Joinder as of the date first
written above. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By: 	 	 
		 	Name:
		 	Title:
	
	[HOLDER]
		
	By: 	 	 
		 	Name:
		 	Title:

  

 A - 2 

 Exhibit B 
 DISTRIBUTION EXAMPLES 
  

 B - 1 

 SCHEDULE A 
 Officers of Language Line Holdings, LLC 
 (as of
June 11, 2004) 
  

			
	 Name
	  	 Title

	Dennis Dracup	  	President and Chief Executive Officer
	Matthew Gibbs	  	Vice President and Chief Financial Officer
		  	Secretary
		  	Assistant Secretary
	James L. Moore, Jr.	  	Chief Information Officer
	Jeanne Anderson	  	Vice President of Operations
	Dennis Bailey	  	Vice President of Sales
	Phil Speciale	  	Vice President of Marketing
	Peggy Koenig	  	Vice President
	C.J. Brucato	  	Vice President

  

 Schedule A, Page 1 

 SCHEDULE B 
 MEMBERS SCHEDULE 
 (as of June 11, 2004)

 Members 
  

										
	 Name
	  	 Units
	 	 	Capital
Contribution	 
	ABRY Partners IV, L.P.	  	Class A Common Units	  	99,596,745	  	 	$	99,596,745	  
	ABRY Investment Partnership, L.P.	  	Class A Common Units	  	52,000	  	 	$	52,000	  
	ABRY Mezzanine Partners, L.P.	  	 Series A Preferred Units
 Class A Common Units
 Class D Common Units
	  	47,000,000
 4,872,085

2,917,960
	  
   
   
	 	$
 $
  
	47,000,000
 4,872,085
   
	* 
   
 ** 

	New York Life Capital Partners II, L.P.	  	 Series A Preferred Units
 Class A Common Units
 Class D Common Units
	  	20,000,000
 4,872,085

1,241,685
	  
   
   
	 	$
 $
  
	20,000,000
 4,872,085
   
	* 
   
 ** 

	Merrill Lynch Capital Corporation	  	 Series A Preferred Units
 Class A Common Units
 Class D Common Units
	  	15,000,000
 4,872,085

931,264
	  
   
   
	 	$
 $
  
	15,000,000
 4,872,085
   
	* 
   
 ** 

	Dennis G. Dracup Declaration of Trust dated 01.19.1999	  	 Class A Common Units
 Class
C Common Units
	  	1,000,000
 5,818,182
	  
   
	 	$
 $
	1,000,000
 0
	  
   

	Christine L. Dracup Declaration of Trust dated 01.19.1999	  	 Class A Common Units
 Class
C Common Units
	  	1,000,000
 5,818,182
	  
   
	 	$
 $
	1,000,000
 0
	  
   

	Matthew Gibbs	  	 Class A Common Units
 Class
C Common Units
	  	1,500,000
 4,000,000
	  
   
	 	$
 $
	1,500,000
 0
	  
   

	James Moore	  	 Class A Common Units
 Class
C Common Units***
	  	650,000
 781,149
	  
 *** 
	 	$
 $
	650,000
 0
	  
   

	Jeanne Anderson	  	 Class A Common Units
 Class
C Common Units***
	  	650,000
 781,149
	  
 *** 
	 	$
 $
	650,000
 0
	  
   

	Dennis Bailey	  	 Class A Common Units
 Class
C Common Units***
	  	135,000
 781,149
	  
 *** 
	 	$
 $
	135,000
 0
	  
   

	Phil Speciale	  	 Class A Common Units
 Class
C Common Units***
	  	700,000
 781,149
	  
 *** 
	 	$
 $
	700,000
 0
	  
   

	Yung-Chung Heh	  	Class A Common Units	  	100,000	  	 	$	100,000	  

  

	*	Includes Capital Contribution for Class D Common Units. 

	**	Included in amount specified above for Series A Preferred Units. 

	***	To be issued after the date of this Agreement. 

  

 Schedule B, Page 1 

 EXHIBIT B 

 MEMBERS AGREEMENT 
 This MEMBERS AGREEMENT (this “Agreement”) is made as of June 11, 2004 by and among Language Line Holdings, LLC, a
Delaware limited liability company (the “Company”), ABRY Partners IV, L.P., a Delaware limited partnership (“ABRY”), the other Members (as defined herein) signatories hereto as of the date hereof and the Members who
are from time to time joined hereto after the date hereof. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in Section 1. 
 WHEREAS, each Member holds the number and type of Member Interests set forth opposite such Member’s name on Schedule I attached
hereto; and 
 WHEREAS, the parties hereto desire to enter into this Agreement for the purposes, among others, of
(i) assuring continuity in the management and ownership of the Company and (ii) limiting the manner and terms by which the Member Interests may be transferred. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree
as follows: 
 1. Definitions. As used herein, the following terms shall have the following meanings:

 “ABRY Member” means any Member who holds ABRY Member Interests but only with respect to, and to the extent
that such Member holds, ABRY Member Interests. 
 “ABRY Member Interests” means those Member Interests
initially issued to ABRY or its Affiliates (including, except for the purposes of Section 2(a)(i), AMP). 
 “ABRY Subordinated Debt” means Indebtedness of Language Line Holdings II, Inc. that has subordination provisions substantially in the form of Exhibit P attached to the Credit Agreement and automatically converts into Equity
Securities (which Equity Securities are neither senior to nor pari passu with the Series A Preferred Units in right of liquidation and are not redeemable upon demand by the holder thereof) upon the occurrence of an Event of Default under subsection
9(f) of the Credit Agreement. 
 “Affiliate” shall mean, as to any Person, any other Person which directly or
indirectly controls, or is under common control with, or is controlled by, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”)
shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise). 
 “AMP” means ABRY Mezzanine Partners, L.P., a Delaware limited partnership. 
  

 2 

 “Approved Sale” means the sale of the Company, in a single bona fide
arm’s length transaction or a series of related bona fide arm’s length transactions, to a Person (which Person is not (x) an Affiliate of the Company or of the Approving Members, (y) a Person that qualifies as a Permitted
Transferee of any Affiliate of the Company or any Approving Member or (z) a group consisting of any of the foregoing), (i) pursuant to which such Person proposes to acquire Common Units representing a majority of the outstanding Points on
a fully diluted basis (whether by merger, consolidation, recapitalization, reorganization, purchase of the outstanding Common Units or otherwise), or all or substantially all of the consolidated assets of the Company, (ii) which has been
approved by the Board and the holders of Voting Units (as defined in the Operating Agreement) representing a majority of the Points represented by Voting Units (the “Approving Members”), and (iii) pursuant to which, upon the
consummation of the Approved Sale, subject to the proviso set forth in clause (y) of Section 6(a), each holder of Equity Securities shall receive the same form of consideration and the same portion of the aggregate net
consideration (following the payment of the reasonable expenses incurred by holders of Equity Securities in connection with such Approved Sale to the extent such expenses are approved by the Approving Members and are not otherwise paid by the
Company or the acquiring party) as such holder would have received if such aggregate net consideration had been distributed by the Company in complete liquidation pursuant to the rights and preferences set forth in the Operating Agreement as in
effect immediately prior to the consummation of the Approved Sale (and, if less than all of the outstanding Equity Securities are being sold in the Approved Sale, then the form and portions of aggregate consideration shall be determined as if the
Equity Securities included in the Approved Sale were all of the outstanding Equity Securities then outstanding), or, if any holders of any type of Equity Securities are given an option as to the form and amount of consideration to be received, all
holders of Equity Securities of such type are given the same option. 
 “Board” means the Company’s board
of managers and any committee or subcommittee thereof. 
 “Business Day” means any day other than a Saturday,
Sunday or day on which commercial banks in New York, New York are authorized or required by law to close. 
 “Call
Agreement” means the Capital Call Agreement, dated as of the date hereof, among ABRY, the Company, Language Line Holdings II, Inc., Merrill, New York Life, and AMP, as amended, restated or otherwise modified from time to time. 

“Class A Common Unit” means the Company’s Class A Common Units (as defined in the Operating Agreement), as
adjusted for any Unit split, Unit dividend or other combination, exchange, conversion, recapitalization, merger, consolidation or reorganization, or, if the Class A Common Units are hereafter changed or exchanged for different Units, interests
or securities of the Company, such other Units, interests or securities, and any other Class A Common Units of the Company hereafter issued. 
 “Class B Common Unit” means the Company’s Class B Common Units (as defined in the Operating Agreement), as adjusted for any Unit split, Unit dividend or other combination, exchange,
conversion, recapitalization, merger, consolidation or reorganization, or, if the Class B Common Units are hereafter changed or exchanged for different Units, interests or securities of the Company, such other Units, interests or securities, and any
other Class B Common Units of the Company hereafter issued. 
  

 3 

 “Class C Common Unit” means the Company’s Class C Common Units (as
defined in the Operating Agreement), as adjusted for any Unit split, Unit dividend or other combination, exchange, conversion, recapitalization, merger, consolidation or reorganization, or, if the Class C Common Units are hereafter changed or
exchanged for different Units, interests or securities of the Company, such other Units, interests or securities, and any other Class C Common of the Company hereafter issued. 
 “Class D Common Unit” means the Company’s Class D Common Units (as defined in the Operating Agreement), as adjusted
for any Unit split, Unit dividend or other combination, exchange, conversion, recapitalization, merger, consolidation or reorganization, or, if the Class D Common Units are hereafter changed or exchanged for different Units, interests or securities
of the Company, such other Units, interests or securities, and any other Class D Common Units of the Company hereafter issued. 
 “Common Capital Value” has the meaning set forth in the Operating Agreement. 
 “Common
Member” means any Member who holds Common Units but only with respect to, and to the extent that such Member holds, Common Units. 
 “Common Units” has the meaning set forth in the Operating Agreement. For purposes of this Agreement, a Person will be deemed to be a holder of Common Units whenever such Person has the
right to acquire directly or indirectly such Common Units (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such
acquisition has actually been effected. The Series A Preferred Units are not Common Units. 
 “Confidential
Information” means all information (whether technical, marketing, business, financial or otherwise), in whatever form (whether tangible, orally communicated, physically communicated or disclosed in writing, electronically or otherwise,
including information disclosed by samples or demonstrations of processes, techniques or equipment) which is disclosed to any Member prior to or subsequent to the date of this Agreement and which relates in any way to the Company or any of its
Subsidiaries, their respective technology and their respective businesses, including any information received by any Member in connection with any Board observer rights to which such Member is entitled pursuant to Section 3 or any other
Transaction Document; provided that Confidential Information shall not include, as to any particular Member, information that (a) was publicly known or otherwise known to such Member at the time it was disclosed to such Member,
(b) subsequently becomes publicly known through no act or omission by such Member or any Person acting on its behalf, (c) otherwise becomes known to such Member (other than through disclosure by the Company or any Subsidiary) from a source
that to the knowledge of such Member is not subject to a requirement of confidentiality with respect to the Company or any Subsidiary or such information or (d) constitutes financial statements delivered to such Member that are otherwise
publicly available. 
  

 4 

 “Continuing Class A Common Holder” means (i) Merrill, at any time
when Merrill, together with its Affiliates, holds Class A Common Units that constitute a majority of the Class A Common Units acquired by Merrill on the date of this Agreement, or (ii) New York Life, at any time when New York Life,
together with its Affiliates, holds Class A Common Units that constitute a majority of the Class A Common Units acquired by New York Life on the date of this Agreement. 
 “Continuing Class D Common Holder” means (i) Merrill, at any time when Merrill, together with its Affiliates, holds
Class D Common Units that constitute a majority of the Class D Common Units acquired by Merrill on the date of this Agreement, or (ii) New York Life, at any time when New York Life, together with its Affiliates, holds Class D Common Units that
constitute a majority of the Class D Common Units acquired by New York Life on the date of this Agreement. 
 “Continuing Series A Preferred Holder” means (i) Merrill, at any time when Merrill, together with its Affiliates, holds Series A Preferred Units that constitute a majority of the Series A Preferred Units acquired by
Merrill on the date of this Agreement, or (ii) New York Life, at any time when New York Life, together with its Affiliates, holds Series A Preferred Units that constitute a majority of the Series A Preferred Units acquired by New York Life on
the date of this Agreement. 
 “Convertible Security” has the meaning set forth in the Operating Agreement.

 “Credit Agreement” means the Credit Agreement, dated as of the date hereof, by and among Language Line, as
Borrower, Language Line Holdings, Inc., the Subsidiary Guarantors named therein, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Banc of America Securities LLC, as Joint Lead Arrangers and Joint
Book-Runners, Banc of America Securities LLC, as Syndication Agent, Merrill, as Administrative Agent, and the Lenders named therein, as such agreement may be amended or modified from time to time. 
 “Delaware Act” means the Delaware Limited Liability Company Act, as the same may be amended from time to time. 

“Dracup Trusts” means the Dennis G. Dracup Declaration of Trust dated January 19, 1999 and the Christine L. Dracup
Declaration of Trust dated January 19, 1999. 
 “Equity Securities” of a Person means, as applicable,
(i) any capital stock, partnership, membership, joint venture or other ownership or equity interests, or other share capital of such Person, (ii) any securities of such Person directly or indirectly convertible into or exchangeable for any
capital stock, partnership, membership, joint venture or other ownership or equity interests, or other share capital (whether voting or non-voting, whether preferred, common or otherwise) of such Person or containing any profit participation
features with respect to such Person, (iii) any rights or options directly or indirectly to subscribe for or to purchase any capital stock, partnership, membership, joint venture or other ownership or equity interests, other share capital of
such Person or securities containing any profit participation features with respect to such Person or directly or indirectly to subscribe for or to purchase any securities directly or

  

 5 

 
indirectly convertible into or exchangeable for any capital stock, partnership, membership, joint venture or other ownership interests, other share capital of such Person or securities containing
any profit participation features with respect to such Person, (iv) any share or Unit appreciation rights, phantom share or Unit rights, contingent interest or other similar rights relating to such Person, or (v) any Equity Securities of
such Person issued or issuable with respect to the securities referred to in clauses (i) through (iv) above in connection with a combination of Units, recapitalization, exchange, merger, consolidation or other reorganization. Unless the
context otherwise requires, the term “Equity Securities” refers to Equity Securities of the Company or any successor corporation of the Company. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. 
 “Fair Market Value” means, with respect to any asset, the price (after taking into account any liabilities relating to such assets) which could be negotiated in an arm’s-length free
market transaction, for cash, between a willing seller and a willing and able buyer, neither of which is under any compulsion to complete the transaction, as determined by the unanimous resolution of the Board. 
 “GAAP” means, at any date of determination, generally accepted accounting principles in effect in the United States at such
time and which are consistently applied. 
 “Governmental Authority” means any Federal, state, local or foreign
government, or other entity (including any governmental or quasi-governmental agency or authority) exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
 “Independent Director” has the meaning set forth in Section 2(a)(iv). 
 “Independent Financial Adviser” means a nationally recognized accounting, appraisal, investment banking firm or consultant
in the United States that is, in the good faith judgment of the Board, independently qualified to perform the task for which it has been engaged. 
 “Intellectual Property” means all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise,
including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom. 
 “Language Line” means Language Line, Inc., a Delaware
corporation. 
 “Majority of the Board” means, at any time, a combination of the directors on the Board having
a majority of the votes (as determined in accordance with the Operating Agreement) of all of such directors who are then elected. 
  

 6 

 “Management Member” means the Members listed on Schedule 2 attached
hereto that hold Class A Common Units but only with respect to, and to the extent that such Member holds, the Class A Common Units listed on Schedule 2 and any Member that holds Class C Common Units but only with respect to, and to
the extent that such Member holds, Class C Common Units. 
 “Marketable Securities” means securities listed on
a national securities exchange or quoted in the NASDAQ Stock Market System. 
 “Material Adverse Effect” means
(i) a material adverse effect on the business, assets, operations, or condition, financial or otherwise, of the Company and its Subsidiaries, taken as a whole, (ii) material impairment of the Company’s ability to perform any of its
obligations under this Agreement or any of the other Transaction Documents or (iii) a material impairment of the validity or enforceability of the rights of, or the benefits available to, the holders of any of the Member Interests under this
Agreement or the other Transaction Documents. 
 “Members” means each holder of Member Interests identified as
a Member on Schedule I attached hereto as of the date hereof who has executed this Agreement or a counterpart hereof and each Person who hereafter acquires Member Interests and becomes a party to this Agreement pursuant to a joinder
substantially in the form of Exhibit A attached hereto. 
 “Member Interests” means (i) any Unit
and (ii) any Equity Securities issued or issuable directly or indirectly with respect to the securities referred to in clause (i) above by way of distribution or of a combination, exchange, conversion or division of such securities or in
connection with a recapitalization, merger, consolidation or other reorganization. As to any particular Units or other Equity Securities constituting Member Interests, such Units or other Equity Securities will cease to be Member Interests when they
have been sold in a Public Sale or an Approved Sale, or upon the consummation of a Qualified Public Offering. For purposes of this Agreement, a Person will be deemed to be a holder of Member Interests whenever such Person has the right to acquire
directly or indirectly such Member Interests (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition
has actually been effected. 
 “Merger Agreement” means the Agreement and Plan of Merger, dated as of
April 14, 2004, among Language Line, an indirect Subsidiary of the Company, Language Line Acquisition Co., a Delaware corporation and the parent corporation of Language Line, and Language Line Holdings, Inc. pursuant to which Language Line
shall merge with and into Language Line Holdings, Inc. 
 “Merrill” means Merrill Lynch Capital Corporation.

 “New York Life” means New York Life Capital Partners II, L.P. 
 “Non-Management Member” means any Member that is not a Management Member. 
  

 7 

 “Operating Agreement” means the Amended and Restated Limited Liability
Company Agreement of the Company, dated as of the date hereof, by and among the Company and the Members party thereto, as amended, restated or otherwise modified from time to time. 
 “Option” has the meaning set forth in the Operating Agreement. 
 “Other Members” means, with respect to any Member, all Members other than such Member. 
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 
 “Points” has the meaning set forth in the Operating Agreement. Except as otherwise provided in this Agreement, the number or percentage of Points with respect to any Unit for purposes of
this Agreement will be the number or percentage of the Points that such Unit has for purposes of Section 7.2(f) of the Operating Agreement. 
 “Preferred Securities Purchase Agreement” means the Preferred Securities Purchase Agreement, dated as of the date hereof, by and among the Company and the purchasers parties thereto, as
in effect from time to time. 
 “Public Sale” means any sale of Member Interests to the public pursuant to an
offering registered under the Securities Act or to the public effected through a broker, dealer or market maker pursuant to the provisions of Rule 144 under the Securities Act. 
 “Qualified Member” means any Member that either holds any Series A Preferred Unit, holds any Class D Common Unit, or is a
Continuing Class A Common Holder. 
 “Qualified Public Offering” means any sale, in an underwritten public
offering registered under the Securities Act, of Equity Securities having an aggregate value of at least $50.0 million. 
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date hereof, by and among the Company and the Members party thereto, as in effect from time to time. 
 “Requirements of Law” means, as to any Person, the articles or certificate of incorporation and bylaws or other
organizational, constitutive or governing documents of such Person, and any law, treaty, rule or regulation, order or determination of an arbitrator or a court or other Governmental Authority, in each case, applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject. 
 “Securities Act” means the
Securities Act of 1933, as amended from time to time. 
 “Series A Preferred Units” has the meaning set forth
in the Operating Agreement. 
  

 8 

 “Significant Subsidiaries” means (1) any Subsidiary that would be a
“significant subsidiary” as defined in Regulation S-X promulgated pursuant to the Securities Act as such Regulation is in effect on the date of this Agreement and (2) any Subsidiary that, when aggregated with all other Subsidiaries
that are not otherwise Significant Subsidiaries and as to which any event described in Paragraph 7A(vi) or 7A(vii) of the Preferred Securities Purchase Agreement has occurred and is continuing, would constitute a Significant Subsidiary under
clause (1) of this definition. 
 “Sub Board” means the board of directors or similar governing body of
any Subsidiary of the Company. 
 “Subsidiary” means, with respect to any Person, any corporation, partnership,
limited liability company, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, limited liability
company, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a partnership, limited liability company, association or other business entity if such Person or Persons shall be allocated a
majority of partnership, limited liability company, association or other business entity gains or losses or shall be or control or have the right to appoint, as the case may be, the managing director, manager, board of advisors, a general partner or
other governing body of such partnership, limited liability company, association or other business entity by means of ownership interest, agreement or otherwise. 
 “Transaction Documents” means, collectively, (i) this Agreement, (ii) the Operating Agreement, (iii) the Registration Rights Agreement, (iv) the Preferred Securities
Purchase Agreement, (v) the Incentive Unit Purchase Agreements, dated as of the date hereof, by and between the Company and the respective Management Members that are parties thereto, and (vi) the Investors Securities Purchase Agreement,
dated as of the date hereof, by and among the Company and the Members that are parties thereto, in each case, as in effect from time to time. 
 “Unit” has the meaning set forth in the Operating Agreement. 
 “Unitholder” has the meaning set forth in the Operating Agreement. 
 “Unpaid Yield”
has the meaning set forth in the Operating Agreement. 
 “Wholly Owned Subsidiary” shall mean any Subsidiary of
the Company all of the outstanding Capital Stock of every class of which is owned by the Company or another Wholly Owned Subsidiary of the Company. 
 “Vested Incentive Units” means Class C Common Units that have vested pursuant to the terms and conditions of the incentive unit purchase agreement or other document pursuant to which such
Units were issued or any other document governing the vesting of such Units. 
  

 9 

 2. Board of Managers. 
 (a) Until the provisions of this Section 2 cease to be effective, each Member shall vote all of his or its Member
Interests which are entitled to vote and over which such Member has voting control and shall take all other necessary or desirable actions within his or its control (whether in his or its capacity as a member, manager, director, member of a
committee of the Board, or officer of the Company or otherwise, and including attendance at meetings in person or by proxy for purposes of obtaining a quorum and execution of written consents in lieu of meetings), and the Company shall take all
reasonably necessary or desirable actions within its control (including calling special Board and member meetings), so that: 
 (i) not fewer than three (and, in any event, a majority) of the members of the Board (the “ABRY Directors”) are designated by Persons owning a majority of the ABRY Member Interests
(“ABRY Majority Members”); 
 (ii) the then current chief executive officer of the Company (the
“CEO Director”) shall be elected to the Board; 
 (iii) Matthew Gibbs shall be elected to the
Board for so long as he serves as the chief financial officer of the Company; 
 (iv) one independent director
(the “Independent Director”) may be elected to the Board by a Majority of the Board; provided that, for purposes of this clause (iv), a director shall be “independent” if such director (A) is not an Affiliate of
the Company or any of its Affiliates, (B) is not otherwise an employee of the Company or any of its Subsidiaries or Affiliates and (C) does not accept any consulting, advisory or other compensatory fee from the Company or any of its
Subsidiaries other than in his or her capacity as the Independent Director; 
 (v) (A) any ABRY Director may be
removed as a director at the written request of ABRY Majority Members, provided that no ABRY Director will be removed from such position except as provided in this clause (v)(A); (B) the CEO Director shall be removed as a director
automatically and without further action of the Members if such CEO Director ceases to be the chief executive officer of the Company; (C) Matthew Gibbs shall be removed as a director automatically and without further action of the Members if
Matthew Gibbs ceases to be the chief financial officer of the Company; and (D) any Independent Director may be removed as a director at the written request of a Majority of the Board; and 
 (vi) if (A) any ABRY Director ceases to serve as a director during his or her term of office, the resulting vacancy on
the Board shall be filled by a representative designated as provided in Section 2(a)(i), (B) the CEO Director ceases to serve as a director during his or her term of office, the resulting vacancy on the Board shall be filled by the
next individual appointed chief executive officer of the Company, and (C) Matthew Gibbs or the Independent Director ceases to serve as a director during his term of office, the resulting vacancy on the Board may be filled by a person designated
by a Majority of the Board. 
  

 10 

 (b) The Company shall pay or reimburse the reasonable out-of-pocket expenses
incurred by each member of the Board in connection with attending the meetings of the Board or any Sub Board and each committee thereof. 
 (c) At the first meeting of the Board after the date of this Agreement, the Board shall adopt a set of standards of business conduct which shall establish reasonable and prudent policies and guidelines
for the Company, its Subsidiaries and their employees, including with respect to the following matters: conflicts of interest, ethical practices, trade regulation, payment and procurement policies, legal compliance, employment discrimination, sexual
harassment and environmental management. 
 (d) The provisions of this Section 2 shall terminate
automatically and be of no further force and effect upon a Qualified Public Offering or an Approved Sale. 
 3.
Observer Rights. Each Qualified Member shall have the right to designate one (1) natural Person (each, a “Board Observer”) to attend (in person or telephonically, at such Person’s option) each meeting of the Board
and the board of directors of each of the Company’s Significant Subsidiaries and any committee of any such board of directors; provided that such Qualified Member will notify the Company from time to time of the identity of such
Qualified Member’s Board Observer and such Board Observer’s address (including facsimile number) for notice and other communications; provided, further, that any Board Observer may be excluded from any such meeting to the
extent that the Board or Sub Board (or such committee) determines in good faith that such exclusion is required to preserve any evidentiary privilege or any portion of any such meeting during which the respective interests of the Company and its
Subsidiaries and those of the Qualified Member in question, as to the matter(s) to be discussed or actions to be taken during such portion of such meeting, conflict (in the good faith judgment of the Board or such Sub Board). The Company will send,
or cause to be sent, to each Qualified Member the notice of the time and place of any such meeting in the same manner and at the same time as notice is sent to the members of the Board, such Sub Board or such committee, as the case may be. The
Company shall also provide, or cause to be provided, to each Qualified Member copies of all notices, reports, minutes and other documents and materials at the same time and in the same manner as they are provided to the members of each the Board,
such Sub Board or such committee; provided that the failure to deliver or make available one or more of the items described in this sentence or the preceding sentence will have no impact on the validity of any action taken by the Board, such
Sub Board or such committee. If the Company or any of its Significant Subsidiaries proposes to take any action by written consent in lieu of a meeting of its board of directors or any committee thereof, the Company or such Significant Subsidiary
shall give a copy thereof to each Qualified Member within five (5) Business Days following the effective date of such consent; provided that the failure to deliver or make available one or more of the items described in this sentence
will have no impact on the validity of any action taken by the Board, such Sub Board or committee. The Board shall meet at least four (4) times per calendar year. The Company shall reimburse, or cause one of its Subsidiaries to reimburse, each
Board Observer for all reasonable, documented out-of-pocket costs incurred by him or her in connection with traveling to and from and attending such meetings of the Board, each such Sub Board or any committees thereof. 
  

 11 

 4. Conflicting Agreements. Each Member represents that such Member
has not granted and is not a party to any proxy, voting trust or other agreement which is inconsistent with or conflicts with the provisions of this Agreement or the Operating Agreement, and no Member shall grant any proxy or become party to any
voting trust or other agreement which is inconsistent with or conflicts with the provisions of this Agreement or the Operating Agreement. 
 5. Restrictions on Transfer of Member Interests. 
 (a)
Subject to the following sentence, a holder of Member Interests may Transfer (as defined below) any Member Interest or interest therein to any Person, subject to compliance with the terms and conditions of Section 11 and, to the extent
applicable, Section 5(b), and in accordance with the applicable terms and conditions of the Operating Agreement. Except for any Transfer made pursuant to Section 5(b), Section 5(c) or Section 6, no Management
Member may Transfer any Class A Common Units and/or Class C Common Units or interest therein unless such Transfer is approved in writing by a Majority of the Board and otherwise complies with the terms and conditions of this
Section 5, Section 11 and the Operating Agreement. 
 (b) Tag Along Rights.
Subject to Section 5(c), at least 30 days prior to any sale, transfer, assignment, pledge or other transfer or disposal (a “Transfer”) of Units by any ABRY Member to a Person other than a Permitted Transferee of such
ABRY Member, the ABRY Member (the “Transferring Member”) proposing to transfer such Units shall deliver a written notice (the “Sale Notice”) to the Company and to each Other Member, specifying in reasonable detail
the identity of the prospective transferee(s) and the terms and conditions of the Transfer. Each Other Member may elect to participate in the contemplated Transfer, on the same terms as those set forth in the Sale Notice except as set forth in this
Section 5(b), by delivering written notice to the Transferring Member within 10 days following delivery of the Sale Notice; provided that a Management Member shall have the right to so participate only with respect to Class A
Common Units and Vested Incentive Units held by such Management Member at the time of delivery of such Sale Notice. If one or more Other Members have elected to participate in such Transfer, each of the Transferring Member and such Other Member
shall be entitled to sell in the contemplated Transfer a number of (i) Common Units (if Common Units are being Transferred by the Transferring Member) of any class (subject, in the case of a sale by any Management Member, to the proviso in the
immediately preceding sentence) representing a number of Points equal to the product of (A) the quotient determined by dividing (x) the percentage of Points represented by the Common Units owned by such Member by (y) the
aggregate percentage of Points represented by the Common Units owned by the Members participating in such Transfer, multiplied by (B) the aggregate number of Points represented by the Common Units to be sold in the contemplated Transfer
and (ii) Series A Preferred Units (if Series A Preferred Units are being transferred by the Transferring Member) representing a number of Series A Preferred Units equal to the product of (A) the quotient determined by dividing (x) the
number of Series A Preferred Units owned by such Member by (y) the total number of Series A Preferred Units represented by the Series A Preferred Units owned by the Members participating in such Transfer, multiplied by (B) the aggregate
number of Series A Preferred Units to be sold in the contemplated Transfer; provided, in each case, that each Member participating in such Transfer shall receive the same form of consideration and the same portion of the aggregate net
consideration (net of any post-closing adjustments following the

  

 12 

 
payment of the reasonable expenses incurred by the Members in connection with such Transfer to the extent such expenses are approved by the Transferring Member and are not otherwise paid by the
Company or the acquiring party) as such holder would have received if such aggregate net consideration had been distributed by the Company in complete liquidation pursuant to the rights and preferences set forth in the Operating Agreement as in
effect immediately prior to the consummation of the Transfer (assuming that the Units included in the Transfer were all of the Equity Securities then outstanding); provided, further, that if the Transferring Member is AMP, then an
Other Member may elect to participate in such Transfer only if such Other Member is able to and does elect to include in such Transfer Units of each class or series of Units that AMP has proposed to include in such Transfer, in the same proportions
among such classes or series (if more than one) as AMP has proposed to include in such Transfer (treating Class A Common Units as a separate “class” for purposes of this Section 5(b), and treating Class D Common Units as a
separate “class” for purposes of this Section 5(b)), and AMP shall not be required to give a Sale Notice to any Other Holder who does not hold Units of the classes and/or series that would permit such Other Holder to
participate in such Transfer in compliance with this proviso. Each Member transferring Units pursuant to this Section 5(b) shall be obligated to make customary representations and warranties as to such Member and the Units such Member is
transferring and join in any indemnification or other obligations that the Transferring Member agrees to provide in connection with such Transfer; provided that each such joining Member’s liability arising under any such indemnification
or other obligation with respect to such Transfer (i) shall be several and not joint and limited to its pro rata share (based on the percentage of net cash proceeds received by such Member pursuant to such Transfer) of such liability and
(ii) shall in no event exceed the aggregate net cash proceeds actually received by such holder in connection with such Transfer. This Section 5(b) shall not apply to any Transfer pursuant to Section 6. 
 The Transferring Member shall use its commercially reasonable efforts to obtain the agreement of the prospective Transferee(s) to the
participation of the Other Members in any contemplated Transfer as provided in this Section 5(b), and the Transferring Member shall not Transfer any of its Units to the prospective Transferee(s) if the prospective Transferee(s) declines
to allow the participation of the Other Members as contemplated by this Section 5(b). 
 (c)
Permitted Transfers. Subject to the succeeding three sentences of this Section 5(c), the restrictions contained in this Section 5 shall not apply with respect to any Transfer of Units by any Member (i) in the case
of an individual Member, pursuant to applicable laws of descent and distribution or to such Member’s parent, spouse, descendants or a trust, partnership or other entity formed exclusively for the benefit of one or more of the foregoing,
(ii) with regard to either Dracup Trust, to Dracup or to Dracup’s parent, spouse, descendants or a trust, partnership or other entity formed exclusively for the benefit of one or more of the foregoing, or (iii) in the case of any
other Member that is an entity, any Transfer (including by way of distribution) to its members, partners or shareholders in respect of and in direct proportion to such member’s, partner’s or shareholder’s ownership of other interest
in such entity, or any Transfer to its Affiliates, employees, directors, advisors, consultants or employees, directors, advisors or consultants of its Affiliates. All transferees of Transfers permitted under this Section 5(c) are
collectively referred to herein as “Permitted Transferees” and such transferred Member Interests shall remain subject to the terms of this Agreement and any restrictions on Transfer set forth in the Operating Agreement. A Permitted
Transferee of Units may Transfer such Units pursuant to this Section 5(c) only to the transferor Member or to a

  

 13 

 
Person that is a Permitted Transferee of such transferor Member. No Member shall avoid the provisions of this Agreement by making one or more Transfers to one or more Permitted Transferees and
then disposing of all or any portion of such party’s interest in any such Permitted Transferee, and any Transfer or attempted Transfer in violation of this covenant shall be null and void ab initio. 
 (d) Termination of Restrictions. The restrictions on transfer with respect to any Member Interest shall terminate at
the time such Member Interest is sold in a Public Sale or an Approved Sale, or upon a Qualified Public Offering. 
 6. Sale of the Company. 
 (a) In the event of an Approved Sale, each Member shall
(i) consent to the Approved Sale, (ii) waive and agree not to pursue any dissenter’s rights and other similar rights, and (iii) if the Approved Sale is structured as a sale of securities, agree to sell its Member Interests (or
the applicable portion thereof) on the terms and conditions of the Approved Sale; provided that: (x) each Member participating in such Approved Sale shall receive the same form of consideration and the same portion of the aggregate net
consideration (net of any post-closing adjustments and following the payment of the reasonable expenses that are approved by Approving Members and are not otherwise paid by the Company or the acquiring party) as such holder would have received if
such aggregate net consideration had been distributed by the Company in complete liquidation pursuant to the rights and preferences set forth in the Operating Agreement as in effect immediately prior to the consummation of the Approved Sale
(assuming that the Member Interests included in the Transfer were all of the Equity Securities then outstanding), (y) notwithstanding the preceding clause (x), the holders of Series A Preferred Units will be entitled to receive cash
consideration even if the consideration to be paid to the holders of Common Units consists in part or in whole of non-cash consideration, so long as all holders of Common Units receive the same form(s) of non-cash consideration and the amount of the
total net consideration described in the preceding clause (x); and (z) that, if any non-cash consideration (other than Marketable Securities) is received by any Member in connection with an Approved Sale, (A) such Member shall be given the
right to participate pro rata in any subsequent Transfer by any ABRY Member of any such non-cash consideration on a basis equivalent to that provided in Section 5(b) and (B) ABRY shall use its commercially reasonable efforts
to ensure that all Other Members receive the benefit of any preemptive or other rights (including registration rights) that any ABRY Member receives regarding the subsequent Transfer of such non-cash consideration or future issuances of Equity
Securities by the issuer of such non-cash consideration. Each Member will take all necessary and desirable lawful actions as reasonably directed by the Board and the Approving Members in connection with the consummation of any Approved Sale,
including executing the applicable purchase agreement pursuant to which each holder of Member Interests will severally (but not jointly) make representations and warranties concerning solely (i) the beneficial ownership of the Member Interests
(if any) to be sold by such holder, and (ii) such holder’s ability to execute such sale contract and necessary ancillary documents and perform the obligations thereunder, and will provide indemnities solely in respect of such
representations and warranties made by such holder. 
  

 14 

 (b) If the Approving Members enter into any negotiation or transaction for
which Rule 506 promulgated by the Securities and Exchange Commission may be available with respect to such negotiation or transaction (including a sale of assets, merger, consolidation or other reorganization), each holder of Member Interests who is
not an “accredited investor,” as that term is defined in Regulation D promulgated under the Securities Act, will, at the request of the Company, appoint either a purchaser representative (as such term is defined in Rule 501) designated by
the Company, in which event the Company will pay the fees of such purchaser representative, or another purchaser representative (reasonably acceptable to the Company), in which event such holder will be responsible for the fees of the purchaser
representative so appointed. 
 (c) Each holder of Member Interests agrees that, if the Approving Members so
request, the agreements relating to the Approved Sale may provide for indemnity by each holder of Member Interests in respect of representations and warranties regarding the Company, its Subsidiaries and their respective assets, properties,
liabilities, operations and businesses (collectively, the “Company Reps”) not made by such holder of Member Interests, so long as the sole source for payment of any such indemnity (a “Company Loss”) will be funds
(the amount of which for each holder shall not exceed the aggregate net cash proceeds that otherwise would have been received by such holder in connection with such Approved Sale) deposited in escrow for such purpose or otherwise segregated and
withheld from the proceeds otherwise distributed to the selling persons, as Approving Members may determine, and any Company Losses will be borne by the selling persons as described in the first sentence of Section 6(a) above as if they
were post-closing adjustments. 
 (d) No consideration or fee shall be paid or provided to the Approving Members
or any of their Affiliates or any Persons that would qualify as Permitted Transferees of the Approving Members in any manner (including, without limitation, in connection with a non-compete agreement, consulting agreement or any other agreement,
arrangement or understanding) in connection with an Approved Sale, which would cause the Approving Members or any their Affiliates or any Persons that would qualify as Permitted Transferees of the Approving Members to receive consideration or fees
(of any kind, in any form and/or at any time) not available to all Members in a manner other than the manner in which such benefit would have been received by such Member had such benefit, together with the net consideration of the Approved Sale and
any like consideration or fees received by any other Member or Affiliate thereof, been distributed by the Company in complete liquidation pursuant to the rights and preferences set forth in the Operating Agreement as in effect immediately prior to
the consummation of the Approved Sale (assuming that the Member Interests included in the Transfer were all of the Equity Securities then outstanding). 
 (e) Each definitive agreement, whether written or oral, between the Approving Members or any of their Affiliates or any Persons that would qualify as Permitted Transferees of the Approving Members, on the
one hand, and the third party purchaser or any of its Affiliates, on the other hand, governing or relating to, or otherwise in connection with an Approved Sale shall be disclosed in writing to the Board prior to any such party entering into such
definitive agreement. 
  

 15 

 7. Public Offering. In the event that a Majority of the Board
approves a recapitalization of, or a transaction which contemplates the recapitalization of, the Company and/or its Subsidiaries, including a public offering and sale of Equity Securities pursuant to an effective registration statement under the
Securities Act (a “Public Offering”), including pursuant to the Registration Rights Agreement, then the Company and all holders of Member Interests shall take all necessary or desirable actions in connection with the consummation of
such recapitalization as a Majority of the Board may reasonably request (i) to convert the Company to a corporate form or otherwise combine its Subsidiaries with, and/or cause them to be owned (directly or indirectly) by, a single corporation,
in each case, in a tax-free transaction (except to the extent of taxable income or gain required to be recognized by a Person in an amount that does not exceed the amount of cash received by such Person upon the consummation of such recapitalization
and/or any concurrent transaction), including the approval of a merger of the Company and/or one or more of its Subsidiaries with and into a newly formed “shell” corporation or one of the Company’s Subsidiaries, with the result that
each Person shall hold capital stock of such surviving corporation (the “Successor Corporation”) with rights, preferences and privileges that are equivalent to the Member Interests held by such Person (provided that
concurrently with and contingent upon the consummation of such conversion, merger or other form of recapitalization, business combination or merger, at the request of any holder of Class A Common Units and Class D Common Units, such
holder’s Class A Common Units and/or Class D Common Units, as the case may be, will instead be converted into common stock having the same rights and preferences (i.e., containing voting rights) as Class A Common Units and Class D
Common Units, respectively), and (ii) to cause the Successor Corporation to assume all of the obligations of the Company under the Transaction Documents. Notwithstanding the foregoing, it is the intent of the parties hereto that any such Public
Offering will result in the parties hereto obtaining common stock of the company whose Equity Securities are so offered in exchange for, and in proportion to, their interests in the Company that are Common Units immediately prior to such
recapitalization (calculated as if all outstanding Options had been fully exercised as of such time), as if such common stock (valued at the price at which shares of common stock are sold to the public in such offering) were distributed in
liquidation of the Company pursuant to the Operating Agreement. 
 8. Preemptive Rights. 
 (a) Subject to Section 8(b) below, if the Company proposes to issue any Common Units, any Option or any
Convertible Security, the Company will offer to sell to each Member a number of such securities (“Offered Units”) equal to the product of (i) the quotient determined by dividing (A) the percentage of Points (on a
fully-diluted basis) represented by the Member Interests owned by such Member by (B) the aggregate percentage of all Points outstanding immediately prior to the proposed issuance (on a fully-diluted basis), and (ii) the number of Offered
Units; provided that for the purpose of calculating Offered Units with respect to any Management Member, the “Member Interests owned by such Member” shall mean such Member’s Class A Common Units and all Vested Incentive
Units held by such Member at the time of such calculation. The Company shall give each Member at least thirty (30) days prior written notice of any proposed issuance to other Persons, which notice shall disclose in reasonable detail the
proposed terms and conditions of such issuance (the “Issuance Notice”). Each Member will be entitled to elect to purchase such securities at the same price and on the same terms (including, if more than one type of security is
issued, the same proportionate mix of

  

 16 

 
such securities) as the securities are issued, by delivery of irrevocable written notice (the “Election Notice”) to the Company of such election within thirty (30) days
after delivery of the Issuance Notice (the “Preemptive Period”). If any Member has elected to purchase any Offered Units, the sale of such units shall be consummated as soon as practical (but in any event within twenty
(20) days) after the delivery of the Election Notice. To the extent the Members do not elect to, or are not entitled to, purchase all of the Offered Units, then the Company may issue the remaining Offered Units, at a price and on terms no more
favorable to the transferee(s) thereof than are specified in the Issuance Notice, during the 120-day period following the Preemptive Period. Notwithstanding anything in this Section 8 to the contrary, the Company shall not be deemed to
have breached this Section 8 if, within 30 days following the issuance of any Units, Option or Convertible Securities in contravention of this Section 8, the Company or the Transferee of such Units, Options or Convertible
Securities offers to sell a portion of such Units, Options or Convertible Securities or additional Units, Options or Convertible Securities to each Member so that, taking into account such previously-issued securities and any such additional
securities, each Member will have had the right to purchase or subscribe for securities in a manner consistent with the allocation provided in the initial sentence of this Section 8(a). 
 (b) The rights contained in this Section 8 shall not apply to (i) the issuance of Common Units (including
any Option or Convertible Security) as a dividend or upon any subdivision or Unit split of outstanding Common Units; (ii) the issuance of Equity Securities upon conversion of any Convertible Securities or the exercise of any Option;
(iii) the issuance of Common Units or the grant of Options to subscribe for Common Units, to officers, directors and other employees or independent contractors of the Company, approved by, or pursuant to arrangements approved by, a Majority of
the Board, (iv) the issuance of Options containing nominal exercise prices or other Units, in each case to financing sources in connection with a loan or other indebtedness for borrowed money, (v) the issuance of Common Units pursuant to
any underwritten public offering, (vi) the issuance of any Common Unit (including any Option or Convertible Security) as consideration for the acquisition of any Person or business or unit or division thereof or any other asset or other
property to be used in the operations of the Company or any of its Subsidiaries, (vii) the issuance of Class A Common Units to repurchase or redeem or in exchange for Class C Common Units pursuant to the terms of that certain Incentive
Unit Agreement among the Company and the Dracup Trusts as in effect on the date hereof (or any substantially similar agreement with any employee of the Company or its Subsidiaries or a Person that would be a Permitted Transferee of any such
employee) or (viii) the issuance of Equity Securities pursuant to an Equity Investment (as defined in the Call Agreement) under the Call Agreement. 
  

 17 

 9. Legend. Each certificate or instrument evidencing Member Interests
and each certificate or instrument, if any, issued in exchange for or upon the Transfer of any Member Interests (if such Member Interests remain subject to this Agreement following such Transfer) shall be stamped or otherwise imprinted with a legend
in substantially the following form: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON JUNE 11, 2004,
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO A MEMBERS AGREEMENT, DATED AS OF JUNE 11, 2004 (AS IN EFFECT FROM TIME TO TIME), AMONG THE
COMPANY AND CERTAIN OF THE COMPANY’S MEMBERS. A COPY OF SUCH MEMBERS AGREEMENT AS IN EFFECT FROM TIME TO TIME SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST. 
 The legend set forth above shall be removed from the certificates and instruments evidencing any Member Interests which cease to be subject to this
Agreement. 
 10. Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any Member
Interests in violation of any provision of this Agreement or of the Operating Agreement shall be null and void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Member Interests as the owner of
such units for any purpose. 
 11. Transfer of Member Interests. 
 (a) In connection with the Transfer of any Member Interests other than a Transfer pursuant to a Public Sale, the holder
thereof shall deliver written notice to the Company describing in reasonable detail the Transfer or proposed Transfer, together with an opinion of counsel reasonably acceptable to the Company (which such opinion requirement may be waived by the
Company in its sole discretion) to the effect that such Transfer of Member Interests may be effected without registration of such Member Interests under the Securities Act. Notwithstanding anything in this Agreement or any other Transaction Document
to the contrary, no Member shall Transfer any Option or Common Unit if, as a result of and after giving effect to such Transfer, an obligation would arise under the Exchange Act to register any Common Units. 
 (b) No Transfer or issuance of any Member Interests (other than pursuant to a Public Sale) shall be permitted unless and
until the prospective transferee agrees to become a party to this Agreement and be bound by all the terms and conditions hereof to the same extent as the transferring party by executing and delivering to the Company a joinder to this Agreement in
substantially the form attached hereto as Exhibit A. 
 12. Information Rights. So long as any
Non-Management Member continues to hold any Class A Common Units or Class D Common Units, the Company shall deliver, or cause to be delivered to such Non-Management Member: 
 (a) as soon as available, but in any event within 90 days after the end of each fiscal year of the Company, a copy of the
audited consolidated balance sheet of the Company and its Subsidiaries as at the end of such fiscal year and the related consolidated statements of

  

 18 

 
operations, cash flow and stockholder’s equity for such fiscal year, setting forth in comparative form the figures (if any) for the previous year and accompanied by a report thereon, without
a “going concern” or like qualification or exception (unless such exception arises solely as a result of characterizing Indebtedness that has not yet matured as a current liability due to its scheduled maturity), or qualification arising
out of the scope of the audit, or qualification which would affect the computation of financial covenants; 
 (b)
as soon as available, but in any event not later than 45 days after the end of each fiscal quarter of each fiscal year of the Company, the unaudited consolidated balance sheet of the Company and its Subsidiaries as and at the end of such fiscal
quarter, and the related unaudited consolidated statements of operations and cash flows for such quarterly period, setting forth in comparative form such figures as at the end of and for such quarter and corresponding period (i) of the prior
fiscal year and (ii) set forth in the consolidated annual operating budget; 
 all such financial statements described in subsections
(a) and (b) above to be complete and correct in all material respects (subject, in the case of interim statements, to normal year-end audit adjustments with the absence of footnotes) and to be prepared in reasonable detail and in
accordance with GAAP. 
 13. Other Covenants. 
 (a) For so long as any Non-Management Member holds any Common Units, the Company will, and will cause each Subsidiary to,
preserve, renew and keep in full force and effect its limited liability company or corporate existence and take all reasonable action to maintain all material rights, material privileges, franchises, copyrights, patents, trademarks and trade names
necessary or desirable in the normal conduct of its business except for rights, privileges, franchises, copyrights, patents, trademarks and trade names the loss of which could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect; and comply with all applicable Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. This Section 13(a) shall not be
deemed to restrict the Company or any of its Subsidiaries from abandoning or failing to pursue or enforce any Intellectual Property or registrations or applications therefor, which actions or inactions are taken in the Company’s or its
Subsidiary’s commercially reasonable discretion and would not, in the aggregate, have a Material Adverse Effect. 
 (b) For so long as any Non-Management Member holds any Common Units, the Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working
order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section 13(b) shall not prevent the Company or any
Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and such discontinuance would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect. 
  

 19 

 (c) For so long as any Non-Management Member holds any Common Units, the
Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such
terms and in such amounts as are usual for similarly situated companies engaged in similarly situated industries. 
 (d) For so long as any Member holds any Common Units, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject and will obtain and
maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect. 
 (e) The Company will, upon the
request of any Non-Management Member, provide such Member and any qualified institutional buyer designated by such Member such financial and other information as such Member may reasonably determine to be necessary in order to permit compliance with
the information requirements of Rule 144A under the Securities Act in connection with the resale of a Membership Interest, except at such times as the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act.
For the purpose of this Section 13(e), the term “qualified institutional buyer” shall have the meaning specified in Rule 144A under the Securities Act. 
 (f) For so long as any Non-Management Member holds any Common Units, the Company will, and will cause each Subsidiary to,
keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities which permit financial statements to be prepared in conformity with GAAP and all
applicable laws; and permit representatives of any Non-Management Member holding Common Units representing 10% of the Company’s Common Units on a fully diluted basis upon reasonable notice (no more frequently than annually) to visit and inspect
any of its properties or assets and examine and make abstracts from any of its books and records (including insurance policies) at any reasonable time and upon reasonable notice, and to discuss the business, operations, assets and financial and
other condition of the Company and its Subsidiaries with officers and employees thereof and with their independent certified public accountants with prior reasonable notice to, and coordination with, the Company, in each case at such Member’s
expense. 
  

 20 

 (g) For so long as any Non-Management Member holds any Common Units, the
Company shall not, and shall not cause or permit any Subsidiary to, directly or indirectly, conduct any business or enter into, renew, amend or conduct any transaction or series of related transactions (including the purchase, sale, lease or
exchange of any assets or the rendering of any service) with or for the benefit of any of their respective Affiliates (each an “Affiliate Transaction”), unless: 
 (1) such Affiliate Transaction, taken as a whole, is on terms which are no less favorable to the Company or such Subsidiary,
as the case may be, than would be available in a comparable transaction on an arm’s-length basis with an unaffiliated third party; 
 (2) if such Affiliate Transaction or series of related Affiliate Transactions involves aggregate payments or other consideration having a Fair Market Value in excess of $5,000,000, such Affiliate
Transaction is in writing and a majority of the disinterested members of the Board shall have approved such Affiliate Transaction and determined that such Affiliate Transaction complies with the foregoing provisions, or, in the event that there are
no disinterested directors, the Members have received a written opinion from an Independent Financial Advisor stating that the terms of such Affiliate Transaction are fair, from a financial point of view, to the Company or the Subsidiary involved in
such Affiliate Transaction, as the case may be; and 
 (3) if such Affiliate Transaction or series of related
Affiliate Transactions involves aggregate payments or other consideration having a Fair Market Value in excess of $15,000,000, such Affiliate Transaction is in writing and the Members have received a written opinion from an Independent Financial
Advisor stating that the terms of such Affiliate Transaction are fair, from a financial point of view, to the Company or the Subsidiary involved in such Affiliate Transaction, as the case may be. 
 Notwithstanding the foregoing, the restrictions set forth in Section 13(g)(1) above shall not apply to clauses (i), (iii), (iv),
(v), or (viii) below and Section 13(g)(2) and (3) above shall not apply to clauses (i) through (viii), inclusive, below: 
 (i) transactions with or among the Company and any Wholly Owned Subsidiary or between or among Wholly Owned Subsidiaries; 
 (ii) any Permitted Investment and any Restricted Payment (as such terms are defined in the Preferred Securities Purchase
Agreement) or other payment or Investment (as such term is defined in the Preferred Securities Purchase Agreement) permitted to be made pursuant to Paragraph 6B of the Preferred Securities Purchase Agreement; 
 (iii) any issuance of Capital Stock (as such term is defined in the Preferred Securities Purchase Agreement) of the Company,
or other payments, awards or grants in cash, in each case pursuant to employment arrangements or stock option plans for the benefit of employees, officers, directors, and consultants who are not otherwise Affiliates of the Company and made, in each
case, in the ordinary course of business (so long as such Capital Stock is Qualified Capital Stock (as such term is defined in the Preferred Securities Purchase Agreement) if such issuance or sale occurs at any time when any Preferred Unit (as such
term is defined in the Preferred Securities Purchase Agreement) is outstanding); 
  

 21 

 (iv) advances to officers, directors, employees and consultants who are not
otherwise Affiliates of the Company, in each case, made in the ordinary course of business and in an aggregate outstanding amount not to exceed $1,000,000 in any calendar year; 
 (v) the payment of reasonable directors’ fees, indemnification and similar arrangements, expense reimbursements,
consulting fees (paid to consultants who are not otherwise Affiliates of the Company), employee salaries, bonuses or employment agreements, compensation or employee benefit arrangements and incentive arrangements with any officer, director or
employee of the Company or any Subsidiary, in each case, entered into in the ordinary course of business (including reasonable benefits thereunder); 
 (vi) issuances and sales of Capital Stock of the Company to which the rights described in Section 8 of this Agreement are applicable or that are described in clauses (i), (ii), (iii), (vii) or
(viii) of Section 8(b) of this Agreement (so long as such Capital Stock is Qualified Capital Stock (as such term is defined in the Preferred Securities Purchase Agreement) if such issuance or sale occurs at any time when any Preferred Unit
(as such term is defined in the Preferred Securities Purchase Agreement) is outstanding); 
 (vii) provision or
purchase of goods or services in the ordinary course of business; and 
 (viii) any transactions undertaken
pursuant to any contractual obligations in existence on the date hereof (or on the Closing Date and entered into in connection with the Transactions (as defined in the Preferred Securities Purchase Agreement)) which are described in reasonable
detail on Schedule 6D(h) of the Preferred Securities Purchase Agreement, as the same may be amended, modified or replaced from time to time so long as such amendment, modification or replacement is no less favorable to the Company and
its Subsidiaries in any material respect. 
 14. Confidentiality. Each Member agrees (as to itself) that
it will, and will cause each Board Observer that it designates to, maintain the confidentiality of all Confidential Information in accordance with procedures adopted by such Member in good faith to protect confidential information of third parties
delivered to it and will not use (and will cause each Board Observer that it designates not to use) any Confidential Information other than for a purpose reasonably related to such Member’s investment in the Company; provided that each
Member and each Board Observer that it designates may deliver or disclose Confidential Information to (i) such Member’s directors, officers, employees, agents, attorneys, affiliates and financial and professional advisors (in each case, to
the extent such disclosure reasonably relates to the administration of the investment represented by the Member Interests held by such Member) who agree to hold confidential and refrain from using the Confidential Information substantially in
accordance with the terms of this Section 14, (ii) any other holder of any Membership Interest that is bound by this Section 14 to the same extent as such Member, (iii) any Person to which such Member may sell or
offer to sell any Membership Interest or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 14 to the
same extent as such Member), (iv) any Person from which such Member may offer to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of
this Section 14 to the same extent as

  

 22 

 
such Member), (v) any federal or state regulatory authority having jurisdiction over the Member, (vi) the National Association of Insurance Commissioners or any similar organization, or
any nationally recognized rating agency that requires access to information about such Member’s investment portfolio or (vii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect
compliance with any applicable law, rule, regulation or order, (x) in response to any subpoena or other legal process, (y) in connection with any litigation or (z) in the case of any holder of a Series A Preferred Unit, if an Event of
Default (as defined in the Preferred Securities Purchase Agreement) has occurred and is continuing, to the extent it may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the
rights and remedies under this Agreement and the Preferred Securities Purchase Agreement. 
 15. Amendment and
Waiver. 
 (a) Subject to Sections 15(b) through Section 15(g) below, no modification,
amendment or waiver of any provision of this Agreement (whether by merger, consolidation or otherwise) shall be effective against the Company and the Members unless such modification, amendment or waiver is approved in writing by, respectively, the
Company and the holders of a majority of the Common Units on a fully diluted basis; provided that: (i) no such modification, amendment or waiver will adversely affect the rights hereunder of any of the parties hereto when compared with
its effect on the other similarly situated parties hereto without the prior written approval of a majority-in-interest of such adversely-affected parties, (ii) no such modification, amendment or waiver will adversely affect the rights hereunder
of any holder of Series A Preferred Units without the prior written approval of the holders of a majority of the Series A Preferred Units (provided that such approving holders must include at least one Continuing Series A Preferred Holder if at the
time such action is approved there is any Continuing Series A Preferred Holder), and (iii) no such modification, amendment or waiver will adversely affect the rights hereunder of any holder of Class D Common Units without the prior written
approval of the holders of a majority of the Class D Common Units (provided that such approving holders must include at least one Continuing Class D Common Holder if at the time such action is approved there is any Continuing Class D Common Holder).
A joinder to this Agreement by any other Person as a “Member” hereunder shall not be deemed to adversely affect the rights of any other Member hereunder or to be a modification, amendment or waiver of this Agreement for purposes of this
Section 15. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms. 
 (b) Notwithstanding anything in
Section 15(a) to the contrary, this Agreement may not be modified, amended or waived (whether by merger, consolidation or otherwise) without the prior written approval of at least one Continuing Class A Common Holder if at such time
there is any Continuing Class A Common Holder, if the effect of such modification, amendment or waiver would (i) adversely affect the rights of the Members other than the ABRY Members pursuant to Section 5, (ii) adversely
affect the rights of the Members (other than the ABRY Members) pursuant to Section 6, (iii) adversely affect the rights of the Members pursuant to Section 7, Section 8 or Section 12, or
(iv) result in an amendment, modification or waiver of Section 13 or this Section 15(b). 
  

 23 

 (c) Notwithstanding anything in Section 15(a) to the contrary,
neither Section 3 nor this Section 15(c) may be modified, amended or waived (whether by merger, consolidation or otherwise) without the prior written approval of holders of a majority of the Class D Common Units then
outstanding (or, if no Class D Common Units are then outstanding, then holders of a majority of the Class A Common Units acquired on the date hereof by the Qualified Members), provided that such approving holders must include at least
one Continuing Series A Preferred Holder, Continuing Class A Common Holder or Continuing Class D Common Holder if at such time there is any Continuing Series A Preferred Holder, Continuing Class A Common Holder or Continuing Class D Common
Holder. 
 (d) Notwithstanding anything in Section 15(a) to the contrary, no modification, amendment
or waiver (whether by merger, consolidation or otherwise) of: (i) any requirement in this Agreement that any action be approved or joined in by a Continuing Class A Common Holder or the definition of the term “Continuing Class A
Common Holder” will be effective as against New York Life or any of its Affiliates unless either such action is approved in writing by New York Life or at the time such action is approved none of New York Life or any of its Affiliates is a
Continuing Class A Common Holder, (ii) any requirement in this Agreement that any action be approved or joined in by a Continuing Class D Common Holder or the definition of the term “Continuing Class D Common Holder” will be
effective as against New York Life or any of its Affiliates unless either such action is approved in writing by New York Life or at the time such action is approved none of New York Life or any of its Affiliates is a Continuing Class D Common
Holder, (iii) any requirement in this Agreement that any action be approved or joined in by a Continuing Series A Preferred Holder or the definition of the term “Continuing Series A Preferred Holder” will be effective as against New
York Life or any of its Affiliates unless either such action is approved in writing by New York Life or at the time of such action none of New York Life or any of its Affiliates is a Continuing Series A Preferred Holder, or (iv) this
Section 15(d) will be effective as against New York Life or any of its Affiliates unless either such action is approved by New York Life or at the time such action is approved none of New York Life or any of its Affiliates is a
Continuing Class A Common Holder, a Continuing Class D Common Holder nor a Continuing Series A Preferred Holder. 
 (e) Notwithstanding anything in Section 15(a) to the contrary, no modification, amendment or waiver (whether by merger, consolidation or otherwise) of: (i) any requirement in this Agreement that any action be approved or
joined in by a Continuing Class A Common Holder or the definition of the term “Continuing Class A Common Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in writing by
Merrill or at the time such action is approved none of Merrill or any of its Affiliates is a Continuing Class A Common Holder, (ii) any requirement in this Agreement that any action be approved or joined in by a Continuing Class D Common
Holder or the definition of the term “Continuing Class D Common Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in writing by Northwestern or at the time such action is approved
none of Merrill or any of its Affiliates is a Continuing Class D Common Holder, (iii) any requirement in this Agreement that any action be approved or joined in by a Continuing Series A Preferred Holder or the definition of the term
“Continuing Series A Preferred Holder” will be effective as against Merrill or any of its Affiliates unless either such action is approved in writing by Merrill or at the time of such action none of Merrill or any of its Affiliates is a
Continuing Series A Preferred Holder, or (iv) this Section 15(e) will be effective as against

  

 24 

 
Merrill or any of its Affiliates unless either such action is approved by Merrill or at the time such action is approved none of Merrill or any of its Affiliates is a Continuing Class A
Common Holder, a Continuing Class D Common Holder nor a Continuing Series A Preferred Holder. 
 (f)
Notwithstanding anything in this Section 15 to the contrary, a modification, amendment or waiver made to reflect (A) the terms and conditions of any new class or series of Equity Securities (with respect to such Equity Securities)
and any restrictions, rights, preferences and privileges associated therewith or (B) the restrictions on or rights of any Person who purchases Equity Securities after the date hereof (with respect to such Equity Securities) shall, in each case,
require only the approval of the Company and a Majority of the Members and not the approval of any Member; provided that no such modification, amendment or waiver will adversely affect the rights hereunder of any of the parties hereto when
compared with its effect on the other similarly situated parties hereto without the prior written approval of a majority-in-interest of such adversely-affected parties. 
 16. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of this Agreement. 
 17. Entire Agreement. This Agreement and the other
Transaction Documents embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way. 
 18. Termination. This
Agreement will automatically terminate and be of no further force or effect immediately after the earlier of the consummation of (i) an Approved Sale or (ii) a Qualified Public Offering. 
 19. Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of
and be enforceable by the Company and its successors and assigns and the Members and any subsequent holders of their respective Member Interests and the respective successors and assigns of each of them, so long as they hold Member Interests;
provided that none of (a) the rights of New York Life (or any of its Affiliates), in its capacity as a Continuing Class A Common Holder, Continuing Class D Common Holder and/or Continuing Series A Preferred Holder pursuant to
Section 3 or Section 15 may be assigned (other than to an Affiliate of New York Life), and (b) the rights of Merrill (or any of its Affiliates), in its capacity as a Continuing Class A Common Holder, Continuing
Class D Common Holder and/or Continuing Series A Preferred Holder pursuant to Section 3 or Section 15 may be assigned (other than to an Affiliate of Merrill) in each case, without both the prior written consent of the Company
and the approval of the Board. 
 20. Counterparts. This Agreement may be executed in separate
counterparts each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
  

 25 

 21. Remedies. The parties hereto shall be entitled to enforce their
rights under this Agreement specifically to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor. The parties hereto agree and acknowledge that money damages may not be
an adequate remedy for any breach of the provisions of this Agreement and that the Company and any Member may in his, hers, or its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or
injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement. 
 22. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION
(I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE
PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 23. Notices. All notices, demands or other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing and shall be deemed to have been given (a) on the date of personal delivery to the recipient or an officer of the recipient, or (b) when sent by telecopy or facsimile machine to the number
shown below on the date of such confirmed facsimile or telecopy transmission (provided that a confirming copy is sent via overnight mail), or (c) when properly deposited for delivery by a nationally recognized commercial overnight delivery
service, prepaid, or three business days after deposit in the United States mail, certified or registered mail, postage prepaid, return receipt requested. Such notices, demands and other communications shall be sent to each Member at the address set
forth for such Member on Schedule II attached hereto and to the Company at the address set forth below: 
 Language Line
Holdings, LLC 
 c/o ABRY Partners IV, L.P. 
 111 Huntington Avenue 
 30th Floor 
 Boston, MA 02199 
 Facsimile:          617-859-8797 
 Attention:         Peggy Koenig 
  

 26 

 with a copy (which will not constitute notice to the Company), to: 
 Kirkland & Ellis LLP 
 Citigroup Center 
 153 East 53rd Street 
 New York, NY 10022 
 Facsimile:          212-446-4900 
 Attention:         John L. Kuehn, Esq. 
 or to such other address or to the attention of
such other person as the recipient party shall have specified by prior written notice to the sending party. 
 24. Governing Law. To the extent required by the Delaware Act, all issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules to this
Agreement shall be governed by, and construed in accordance with, the Delaware Act, without giving to effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause
the application of any other law. In all other respects, all issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules to this Agreement shall be governed
by, and construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of New York. 
 25. No Strict Construction. The
parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
to this Agreement, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 
 26. Parties in Interest. Nothing herein shall be construed to be to the benefit of or enforceable by any Person that
is not a party hereto including any creditor of the Company. 
 27. Submission to Jurisdiction. ANY AND
ALL SUITS, LEGAL ACTIONS OR PROCEEDINGS ARISING OUT OF THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND EACH MEMBER HEREBY SUBMITS TO AND ACCEPTS THE
EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF SUCH SUITS, LEGAL ACTIONS OR PROCEEDINGS. IN ANY SUCH SUIT, LEGAL ACTION OR PROCEEDING, EACH MEMBER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREES THAT SERVICE
THEREOF MAY BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO IT AT ITS ADDRESS SET FORTH IN THE BOOKS AND RECORDS OF THE COMPANY. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OR ANY SUCH SUIT, LEGAL ACTION OR PROCEEDING IN ANY SUCH COURT AND HEREBY FURTHER WAIVES ANY CLAIM THAT ANY SUIT, LEGAL ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. 
  

 27 

 28. Descriptive Headings. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this Agreement. 
 29. Certain Terms.
The use of the word “including” herein shall mean “including without limitation.” Any definitions used herein defined in the plural shall be deemed to include the singular as the context may require and any definitions used
herein defined in the singular shall be deemed to include the plural as the context may require. Wherever reference is made herein to the male, female or neuter genders, such reference shall be deemed to include any of the other genders as the
context may require. 
 * * * * * 
  

 28 

 IN WITNESS WHEREOF, the undersigned, have executed this Members’ Agreement as of the
date first written above. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By:	 	 
		 	 Name:
 Title:

  

			
	ABRY PARTNERS IV, L.P.
		
	By:	 	ABRY Capital Partners, L.P.,
Its General Partner
		
	By:	 	ABRY Capital Partners, LLC,
Its General Partner
		
	By:	 	 
		 	 Name:
 Title:

  

			
	ABRY INVESTMENT PARTNERSHIP, L.P.
		
	By:	 	ABRY Investment GP, LLC
		
	By:	 	 
		 	 Name:
 Title:

  

 [more signatures follow on next page] 

			
	ABRY MEZZANINE PARTNERS, L.P.
		
	By:	 	ABRY MEZZANINE INVESTORS, L.P.,
its general partner
		
	By:	 	ABRY MEZZANINE HOLDINGS LLC
its general partner
		
	By:	 	 
		 	 Name:
 Title:

  

			
	MERRILL LYNCH CAPITAL CORPORATION
		
	By:	 	 
		 	 Name:
 Title:

  

			
	NEW YORK LIFE CAPITAL PARTNERS II, L.P.
		
	By:	 	NYLCAP MANAGER LLC
its investment manager
		
	By:	 	 
		 	 Name:
 Title:

  

 [more signatures follow on next page] 

			
	DENNIS G. DRACUP DECLARATION OF TRUST DATED 01.19.1999.
		
	By:	 	 
		 	Name: Dennis G. Dracup, Trustee

  

			
	CHRISTINE L. DRACUP DECLARATION OF TRUST DTED 01.19.1999.
		
	By:	 	 
		 	Name: Christine L. Dracup, Trustee

  

	
	
	  
	MATTHEW GIBBS
	
	  
	JAMES MOORE
	
	  
	JEANNE ANDERSON
	
	  
	DENNIS BAILEY
	
	  
	PHIL SPECIALE
	
	  
	YUNG-CHUNG HEH

 SCHEDULE I 
 Member Interests 
  

																		
	 	  	Class A
Common
Units	  	Class B
Common
Units	  	Class C-1
Common
Units	 	 	Class C-2
Common
Units	 	 	Class C-3
Common
Units	 	 	Class D
Common
Units	  	Series A
Preferred
Units
	 Members
	  		  		  			 			 			 		  	
	 ABRY Partners IV, L.P.
	  	99,596,745	  	0	  	0	  	 	0	  	 	0	  	 	0	  	0
	 ABRY Investment Partnership, L.P.
	  	52,000	  	0	  	0	  	 	0	  	 	0	  	 	0	  	0
	 ABRY Mezzanine Partners, L.P.
	  	4,872,085	  	0	  	0	  	 	0	  	 	0	  	 	2,917,960	  	47,000,000
	 New York Life Capital Partners II, L.P.
	  	4,872,085	  	0	  	0	  	 	0	  	 	0	  	 	1,241,685	  	20,000,000
	 Merrill Lynch Capital Corporation
	  	4,872,085	  	0	  	0	  	 	0	  	 	0	  	 	931,264	  	15,000,000
	 Dennis G. Dracup Declaration of Trust dated 01.19.1999
	  	1,000,000	  	0	  	0	  	 	1,939,394	  	 	3,878,788	  	 	0	  	0
	 Christine L. Dracup Declaration of Trust dated 01.19.1999
	  	1,000,000	  	0	  	3,878,788	  	 	1,939,394	  	 	0	  	 	0	  	0
	 Matthew Gibbs
	  	1,500,000	  	0	  	1,333,333	  	 	1,333,334	  	 	1,333,333	  	 	0	  	0
	 James Moore
	  	650,000	  	0	  	260,383	* 	 	260,383	* 	 	260,383	* 	 	0	  	0
	 Jeanne Anderson
	  	650,000	  	0	  	260,383	* 	 	260,383	* 	 	260,383	* 	 	0	  	0
	 Phil Speciale
	  	700,000	  	0	  	260,383	* 	 	260,383	* 	 	260,383	* 	 	0	  	0
	 Dennis Bailey
	  	135,000	  	0	  	260,383	* 	 	260,383	* 	 	260,383	* 	 	0	  	0
	 Yung-Chung Heh
	  	100,000	  	0	  	0	  	 	0	  	 	0	  	 	0	  	0
		  	 	  	 	  	 	 	 	 	 	 	 	 	 	 	  	 
	 Total
	  	120,000,000	  	0	  	6,253,653	** 	 	6,253,654	** 	 	6,253,653	** 	 	5,090,909	  	82,000,000
		  	 	  	 	  	 	 	 	 	 	 	 	 	 	 	  	 

  

	*	To be issued after the date of this Agreement. 

	**	Includes units to be issued after the Closing. 

 SCHEDULE II 
 Notices 
 If to the Company, to: 
 c/o ABRY Partners, LLC 
 111 Huntington Avenue 
 30th Avenue 
 Boston, MA 02199 
 Attention:        Peggy
Koenig 
 Facsimile:         (617) 859-7205 
 With a copy, which shall not constitute notice to the Company, to: 
 Kirkland & Ellis LLP 
 Citicorp Center 
 153 East 53rd Street 
 New York, NY 10022 
 Attention:        John L. Kuehn, Esq. 
 Facsimile:         (212) 446-4900 
 If to ABRY or ABRY Investment Partnership, L.P., to: 
 c/o ABRY Partners,
LLC 
 111 Huntington Avenue 
 30th Avenue

 Boston, MA 02199 
 Attention:        Peggy Koenig 
 Facsimile:         (617) 859-7205 
 With a copy, which shall not constitute notice to
ABRY, to: 
 Kirkland & Ellis LLP 
 Citicorp Center 
 153 East 53rd Street 
 New York, NY 10022-4611 
 Attention:        John L. Kuehn, Esq. 
 Facsimile:         (212) 446-4900 

 If to ABRY Mezzanine, to: 
 c/o ABRY Partners, LLC 
 111 Huntington Avenue 
 30th Avenue 
 Boston, MA 02199 
 Attention:        Peni
Garber 
 Facsimile:         (617) 859-7205 
 With a copy, which shall not constitute notice to ABRY Mezzanine, to: 
 Kirkland & Ellis LLP 
 Citicorp Center 
 153 East 53rd Street 
 New York, NY 10022-4611 
 Attention:        John L. Kuehn, Esq. 
 Facsimile:         (212) 446-4900 
 If to New York Life Capital Partners II, L.P., to: 
 51 Madison Avenue

 New York, New York 10010 
 Attention:        Kevin A. Smith 
 Facsimile:         (212) 576-5591 
 With a copy, which shall not constitute notice to
New York Life Capital Partners II, L.P., to: 
 Schiff Hardin LLP 
 6600 Sears Tower 
 Chicago, Illinois 60606 
 Attention:        Drew Kling, Esq. 
 Facsimile:         (312) 258-5700 
 If to Merrill, to: 
 Merrill
Lynch Capital Corporation 
 4 World Financial Center 
 250 Vesey Street 
 New York, NY 10080 
 Attention:        Cecile Baker, Vice President 

Facsimile:         (212) 738-1957 

 With a copy, which shall not constitute notice to Merrill, to: 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attention:        Jonathan Schaffzin, Esq. 
 Facsimile:         (212) 269-5420 
 If to any Management Member, to: 
 c/o Language Line Holdings, LLC

 One Lower Ragsdale Drive 
 Monterey, CA 93940 
 Facsimile:         (831) 648-5801 

 EXHIBIT A 
 FORM OF JOINDER 
 TO MEMBERS AGREEMENT 

 THIS JOINDER to the Members Agreement, dated as of March 1, 2004 by and among Language Line Holdings, LLC, a Delaware
limited liability company (the “Company”), and the Members parties thereto (“Agreement”), is made and entered into as of [            ] by
and between the Company and [                    ] (“Holder”). Capitalized terms used herein but not otherwise defined shall
have the meanings set forth in the Agreement. 
 WHEREAS, Holder has acquired certain Member Interests, and the Agreement and
the Company requires Holder, as a holder of such interests, to become a party to the Agreement, and Holder agrees to do so in accordance with the terms hereof. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this
Joinder hereby agree as follows: 
 1. Agreement to be Bound. Holder hereby agrees that upon execution of
this Joinder, he, she or it shall become a party to the Agreement and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Agreement as though an original party thereto and shall be deemed a Member for all
purposes thereof. In addition, Holder hereby agrees that all Common Units and Preferred Units held by Holder shall be deemed [Add for transferees of ABRY Interests: [ABRY]] Member Interests for all purposes of the Agreement. 
 2. Successors and Assigns. Except as otherwise provided herein, this Joinder shall bind and inure to the benefit of
and be enforceable by the Company and its successors and assigns and Holder and any subsequent holders of his, her or its Member Interests and the respective successors and assigns of each of them, so long as they hold any Member Interests.

 3. Counterparts. This Joinder may be executed in separate counterparts each of which shall be an
original and all of which taken together shall constitute one and the same agreement. 
 4. Notices. For
purposes of Section 20 of the Agreement, all notices, demands or other communications to the Holder shall be directed to: 
 [Name] 
 [Address] 
 [Facsimile Number] 
 5. Governing Law. This
Agreement and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of New York, and all rights and remedies shall be governed by such laws without regard to principles of conflicts of laws. 

 6. Descriptive Headings. The descriptive headings of this Joinder are
inserted for convenience only and do not constitute a part of this Joinder. 
 * * * * * 

 IN WITNESS WHEREOF, the parties hereto have executed this Joinder as of the date first above
written. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By:	 	 
		 	 Name:
 Title:

	
	[HOLDER]
		
	By:	 	 
		 	 Name:
 Title:

 EXHIBIT C 

 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of June 11, 2004, by and among Language Line
Holdings, LLC, a Delaware limited liability company (the “Company”), and the members of the Company signatory hereto or signatory to a joinder in the form attached hereto as Exhibit A (collectively, the
“Investors”). Capitalized terms used herein but not otherwise defined in this Agreement are defined in Section 9. 
 The parties hereto agree as follows: 
 1. Demand
Registrations. 
 (a) Requests for Registration. Subject to Sections 1(b) through (g),
(i) at any time and from time to time, the holders of a majority of the Investor Registrable Securities may request registration, whether underwritten or not, under the Securities Act of all or any portion of their respective Investor
Registrable Securities (A) on Form S-1 or any similar long-form registration statement, (B) on Form S-2 or S-3 or any similar short-form registration statement, if available, or (C) on any applicable “short form” pursuant to
Rule 415 under the Securities Act, if available, and (ii) at any time and from time to time following the Initial Public Offering, (A) the holders of a majority of the Outside Preferred Investor Registrable Securities may request
registration, whether underwritten or not, under the Securities Act of all or any portion of their respective Outside Preferred Investor Registrable Securities on Form S-1 or any similar long-form registration statement (together with the long-form
registrations contemplated by clause (i)(A) above, the “Long-Form Registrations”) and (B) any holder of Preferred Investor Registrable Securities may request registration, whether underwritten or not, under the Securities Act
of all or any portion of such holder’s Preferred Investor Registrable Securities (1) on Form S-2 or S-3 or any similar short-form registration statement (together with the short-form registrations contemplated by clause (i)(B) above, the
“Short-Form Registrations”), if available, or (2) on any applicable “short form” pursuant to Rule 415 under the Securities Act (together with any shelf registration contemplated by clause (i)(C) above, “415
Registrations”), if available. All registrations requested as described in this Section 1 are referred to herein as “Demand Registrations.” Each such request for a Demand Registration (a “Demand
Notice”) will specify the approximate number of Registrable Securities requested to be registered, the anticipated per share price range for such offering (which range may be revised from time to time by the Persons initiating such Demand
Registration by written notice to the Company to that effect), and whether the Demand Registration will be underwritten. Each request for a Demand Registration and, subject to the provisions of Section 7, each request for inclusion in
such Demand Registration also will specify the manner and disposition of the shares of Registrable Securities to be included therein. Within 10 days after receipt of any such Demand Notice, the Company will give written notice of such request for
registration to all other holders of Registrable Securities and, subject to Section 1(e), will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein
within 15 days after the receipt of the Company’s notice. 

 (b) Long-Form Registrations. (i) The holders of a majority of
the Investor Registrable Securities and (ii) the holders of a majority of the Outside Preferred Investor Registrable Securities will each be entitled to request two Long-Form Registrations in which the Company will pay all Registration
Expenses; provided that the Company will have no obligation to grant any request for a Long-Form Registration unless the aggregate value of the Registrable Securities to be sold through such registration equals at least $3.0 million. The
Company will pay all Registration Expenses in connection with any Demand Registration initiated as a Long-Form Registration whether or not it has become effective. The Company will use commercially reasonable efforts to cause any Long-Form
Registration to be declared effective under the Securities Act as soon as practicable after filing such Long-Form Registration. A registration will not count as a permitted Long-Form Registration until it has become effective. A registration will
not count as a Long-Form Registration unless the holders that delivered the related Demand Notice are able to register and sell at least 90% of the Registrable Securities that such holders have requested to be included in such registration.

 (c) Short-Form Registrations. (i) The holders of a majority of the Investor Registrable Securities
and (ii) the holders of Preferred Investor Registrable Securities will each be entitled to request an unlimited number of Short-Form Registrations in which the Company will pay all Registration Expenses; provided that the Company will
have no obligation to grant any request for a Short-Form Registration unless the aggregate value of the Registrable Securities to be sold through such registration equals at least $1.0 million. Demand Registrations will be Short-Form Registrations
whenever the Company is permitted to use any applicable short form. After the Company has become subject to the reporting requirements of the Securities Exchange Act, the Company will use commercially reasonable efforts to make Short-Form
Registrations on Form S-3 or any other short form available for the sale of Registrable Securities. The Company will use its commercially reasonable efforts to cause any Short-Form Registration to be declared effective under the Securities Act as
soon as practicable after filing of such Short-Form Registration. A registration will not count as a permitted Short-Form Registration until it has become effective. 
 (d) 415 Registrations. 
 (i) (A) The holders of a majority of the Investor Registrable Securities will be entitled to request two, and (B) the holders of Preferred Investor Registrable Securities will be entitled to request
three, 415 Registrations in which the Company will pay all Registration Expenses; provided that the Company will have no obligation to grant any request for a 415 Registration unless such registration is on Form S-2 or S-3 or any similar
short-form; and provided, further, that the Company will have no obligation to grant any request for a 415 Registration unless the aggregate value of the Registrable Securities to be sold through such registration equals at least $1.0
million; and provided, further, that the holders of Outside Preferred Registrable Securities (in the aggregate) will not be entitled to request more than two such 415 Registrations. Subject to the availability of required financial
information, within 45 days after the Company receives written notice of a request for a 415 Registration, the Company will file with the Securities and Exchange Commission a registration statement under the Securities Act for the 415 Registration.
The Company will use its commercially reasonable efforts to cause the 415 Registration to be declared effective under the Securities Act as soon as practicable after filing and, once effective, the Company will (subject to the provisions of
Section 1(d)(ii)) cause such 415 Registration to remain effective for such time period as is specified in such request, but for no time period longer than the period ending on the earlier of

 
(A) the second anniversary of the date of filing of the 415 Registration, (B) the date on which all Registrable Securities covered by such 415 Registration have been sold pursuant to the 415
Registration and (C) the date as of which there are no shares covered by such 415 Registration that are Registrable Securities. 
 (ii) If the holders of a majority of the Investor Registrable Securities notify the Company in writing that they intend to effect the sale of all or substantially all of the Investor Registrable
Securities held by such holders pursuant to a single integrated offering pursuant to a then effective registration statement for a 415 Registration (a “Takedown”), then so long as the aggregate value of the Investor Registrable
Securities to be sold through such Takedown equals at least $1.0 million, the Company and each holder of Registrable Securities will not effect any public sale or distribution of its Equity Securities during the 90-day period beginning on the date
such notice of a Takedown is received, except pursuant to such Takedown. Notwithstanding anything contained herein to the contrary, all holders of Registrable Securities and holders of other Common Stock who have a contractual right to participate
in such Takedown may participate in such Takedown, pro rata based on the number of Registrable Securities and shares of such other Common Stock requested by such holders to be included in such Takedown. 
 (e) Priority on Demand Registrations. If a Demand Registration is an underwritten offering and the managing
underwriters advise the Company in writing that in their opinion the number of Registrable Securities and other shares of Common Stock requested to be included in such offering pursuant to contractual registration rights exceeds the number of
Registrable Securities and shares of such other Common Stock, if any, which can be sold in such offering without adversely affecting the Company or the marketability of the offering, the Company will include in such registration
(i) first, the number of Company Registrable Securities (if any) that holders of a majority of the Investor Registrable Securities held by the Person(s) that delivered the related Demand Notice have requested to be included in such
offering pursuant to Section 4(c), and (ii) second, the number of Registrable Securities or shares of such other Common Stock requested to be included in such registration by the holders of such Registrable Securities or
shares of such other Common Stock under this Agreement or pursuant to any other agreement with the Company, pro rata among the respective holders thereof on the basis of the number of Registrable Securities or shares of such other Common
Stock owned by each such holder, in each case, up to the aggregate number of shares of Common Stock which in the opinion of such managing underwriters can be sold without adversely affecting the Company or the marketability of such offering.

 (f) Restrictions on Demand Registrations. 
 (i) Notwithstanding any other provision of this Agreement, the Company will not be obligated to effect any Demand
Registration within 180 days after the effective date of a previous Demand Registration or a previous registration in which the holders of Registrable Securities were given piggyback rights to have such holder’s Registrable Securities included
pursuant to Section 2, whether or not Section 1(e), Section 2(c) or Section 2(d) applied to such offering. 

 (ii) If the Company’s board of directors in good faith determines that
the filing or effectiveness of a registration statement in connection with any requested Demand Registration would be reasonably likely to materially and adversely affect any material contemplated acquisition, divestiture, registered primary
offering or other action as to which the Company or any of its Subsidiaries has then taken substantial steps, or would require disclosure of facts or circumstances which disclosure would be reasonably likely to materially and adversely affect any
material contemplated acquisition, divestiture, registered primary offering or other action as to which the Company or any of its Subsidiaries has then taken substantial steps, then the Company may delay such registration for a period of up to 120
days so long as the Company is still pursuing the action that allowed such delay (it being agreed that the Company may not delay requested registrations pursuant to this Section 1(f)(ii) more than once during any period of 360
consecutive days). If the Company postpones the filing or effectiveness of a registration statement pursuant to this Section 1(f)(ii), it will promptly notify in writing the holders of Registrable Securities requesting such registration
when the events or circumstances permitting such postponement have ended. 
 (g) Selection of
Underwriters. (i) In the case of a Demand Notice delivered by the holders of a majority of the Investor Registrable Securities, the holders of a majority of the Investor Registrable Securities held by the holders that delivered such Demand
Notice shall, (ii) in the case of a Demand Notice delivered by the holders of a majority of the Outside Preferred Investor Registrable Securities pursuant to Section 1(a)(ii)(A), the holders of a majority of the Outside Preferred
Investor Registrable Securities held by the holders that delivered such Demand Notice shall, and (iii) in the case of a Demand Registration delivered by any holder of Preferred Investor Registrable Securities pursuant to
Section 1(a)(ii)(B), such holder, shall have the right to select the investment banker(s) and manager(s) to administer the offering in the related Demand Registration, in each case, subject to the Company’s approval which will not
be unreasonably withheld or delayed. 
 2. Piggyback Registrations. 
 (a) Right to Piggyback. Whenever the Company proposes to register any of its Common Stock under the Securities Act
(other than pursuant to a Demand Registration) and the registration form to be used may be used for the registration of Registrable Securities (a “Piggyback Registration”), the Company will give prompt written notice to all holders
of Registrable Securities of its intention to effect such a registration and will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion in such registration within 20
days after the receipt of the Company’s notice. 
 (b) Piggyback Expenses. The Registration Expenses
of the Company and of the holders of Registrable Securities will be paid by the Company in all Piggyback Registrations. 
 (c) Priority on Primary Registrations. If a Piggyback Registration is in part an underwritten primary registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number
of shares of Common Stock requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company will include

 
in such registration (i) first, the number of shares of Common Stock the Company proposes to sell in such registration; and (ii) second, the number of Registrable
Securities and other shares of Common Stock requested to be included in such registration pursuant to contractual obligations of the Company, pro rata among the respective holders of such Registrable Securities or such other Common Stock on
the basis of the number of Registrable Securities or shares of such other Common Stock owned by each such holder, in each case, up to the aggregate number of shares of Common Stock which in the opinion of such managing underwriters can be sold
without adversely affecting the Company or the marketability of such offering. 
 (d) Priority on Secondary
Registrations. If a Piggyback Registration is solely an underwritten secondary registration on behalf of holders of Common Stock (other than Registrable Securities) who have the contractual right to initiate such a registration, and the managing
underwriters advise the Company in writing that in their opinion the number of shares of Common Stock requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the Company or the
marketability of the offering, the Company will include in such registration (i) first, the number of shares of Common Stock (other than Registrable Securities) requested to be included in such offering by the holders initially
requesting such registration pursuant to such contractual rights; (ii) second, the number of shares of Common Stock the Company proposes to sell in such registration; and (iii) third, the number of Registrable Securities
requested to be included in such registration, pro rata among the respective holders thereof on the basis of the number of Registrable Securities requested by them to be included in such registration, in each case, up to the aggregate number
of shares of Common Stock which in the opinion of such managing underwriters can be sold without adversely affecting the Company or the marketability of such offering. 
 (e) Selection of Underwriters. If any Piggyback Registration is an underwritten offering, the Company’s selection
of investment banker(s) and manager(s) for the offering must be approved by the holders of a majority of the Registrable Securities requested to be included in such offering. Such approval will not be unreasonably withheld or delayed. 
 (f) Other Registrations. If the Company has previously filed a registration statement with respect to Registrable
Securities pursuant to Section 1 or pursuant to this Section 2, and if such previous registration has not been withdrawn or abandoned, the Company will not file or cause to be effected any other registration of any of its
Equity Securities or securities convertible or exchangeable into or exercisable for its Equity Securities under the Securities Act (except on Form S-4 or Form S-8 or any successor forms), whether on its own behalf or at the request of any holder or
holders of such securities, until a period of at least 180 days has elapsed from the date such previous registration became effective. 
 3. Holdback Agreements. Notwithstanding anything to the contrary contained in this Agreement, neither the Company nor any holder of Registrable Securities will effect any public sale or
distribution of the Company’s Equity Securities during the seven days prior to or during the 180-day period beginning on the effective date of the Initial Public Offering, any underwritten Demand Registration or any underwritten Piggyback
Registration (except as part of such underwritten registration or pursuant to registrations on Form S-8 or any successor form), unless the underwriter(s) managing such underwritten registration otherwise agree. Notwithstanding anything in this
Section 3 to the contrary, no holder of Registrable Securities shall be released by from the restrictions on public sale and distributions contained in this Section 3 unless all holders of Registrable Securities are so
released. 

 4. Registration Procedures. Whenever the holders of Registrable
Securities have requested that any Registrable Securities be registered pursuant to this Agreement, the Company will, subject to the provisions of Section 7, use its commercially reasonable efforts to effect the registration and the sale
of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company will as expeditiously as possible: 
 (a) prepare and file with the Securities and Exchange Commission a registration statement with respect to such Registrable
Securities and use its commercially reasonable efforts to cause such registration statement to become effective; 
 (b) notify each holder of Registrable Securities included in such registration of the effectiveness of such registration statement and prepare and file with the Securities and Exchange Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for the earlier of (i) a period of not less than two years and (ii) the date as of which there are no
longer any shares covered by such registration statements that are Registrable Securities, in each case in order to comply with the provisions of the Securities Act with respect to the disposition of all shares of Common Stock covered by such
registration statement; 
 (c) in the case of a Demand Registration that is the Initial Public Offering only, if
requested by the holders of a majority of the Registrable Securities held by the Person(s) that delivered the related Demand Notice, use its commercially reasonable efforts to cause to be included in such registration Equity Securities
(“Company Registrable Securities”) to be offered in a primary offering of Common Stock contemporaneously with or as part of such offering; 
 (d) furnish to each seller of Registrable Securities such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement
(including each preliminary prospectus), exhibits, and such other documents as such seller and underwriter, if any, may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller in accordance with
the procedures described therein; 
 (e) use its best efforts to register or qualify such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as any seller and underwriter reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller and underwriter to
consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company will not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify but for this Section 4(e), (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 

 (f) notify each seller of such Registrable Securities, at any time when a
prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any
fact necessary to make the statements in such prospectus not misleading and, at the request of any such seller, promptly prepare and file a supplement or amendment to such prospectus and/or registration statement so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements in such prospectus not misleading; 
 (g) cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the
Company are then listed and, if not so listed, to be listed on the National Association of Securities Dealers (“NASD”) automated quotation system or any other securities exchange on which any Common Stock is listed; 
 (h) provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of the first
registration statement relating to Registrable Securities; 
 (i) enter into such customary agreements (including
underwriting agreements in customary form) and take all such other actions as the holders of a majority of the Registrable Securities requested to be included in such offering or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of the Registrable Securities requested to be included in such offering (including effecting a stock split or a combination of shares); 
 (j) make available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition
pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement; 
 (k) otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Securities and
Exchange Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least 12 months beginning with the first day of the Company’s first full calendar quarter after
the effective date of the applicable registration statement, which earnings statement will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 
 (l) in the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order
suspending or preventing the use of any related prospectus or suspending the qualification of any securities included in such registration statement for sale in any jurisdiction, use its commercially reasonable efforts to obtain promptly the
withdrawal of such order; 
 (m) use its commercially reasonable efforts to cause its management to participate
fully in the sale process relating to such offering, including the preparation of the applicable registration statement and the preparation and presentation of any “road shows,” whether domestic or international; 

 (n) use its commercially reasonable efforts to cause all Registrable
Securities covered by the applicable registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers of such Registrable Securities to consummate the
disposition of such Registrable Securities in accordance with the procedures set forth in such registration statement; 
 (o) furnish to each seller of Registrable Securities a signed counterpart addressed to such seller and the underwriters, if any, of: 
 (i) an opinion of counsel for the Company (in customary form), dated the effective date of such registration statement (and, if such registration relates to an underwritten public offering, an opinion
dated the date of the closing under the underwriting agreement), reasonably satisfactory in form and substance to such seller, and 
 (ii) a “comfort” letter, dated the effective date of such registration statement (and, if such registration relates to an underwritten public offering, a letter dated the date of the closing
under the underwriting agreement), signed by the independent public accountants who have certified the Company’s financial statements included in such registration statement, covering substantially the same matters with respect to such
registration statement (and the prospectus included in such registration statement) and, in the case of the accountants’ letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions
of issuer’s counsel and in accountants’ letters delivered to the underwriters in underwritten public offerings of securities; 
 (p) notify the holders of Registrable Securities and the managing underwriter or underwriters, if any, promptly and confirm such advice in writing promptly thereafter: 
 (i) when the registration statement, the prospectus or any prospectus supplement related to such registration statement or
any post-effective amendment to such registration statement has been filed, and, with respect to such registration statement or any post-effective amendment to such registration statement, when the same has become effective; 
 (ii) of any request by the Securities and Exchange Commission for amendments or supplements to the registration statement or
the prospectus or for additional information; 
 (iii) of the issuance by the Securities and Exchange Commission
of any stop order suspending the effectiveness of the registration or the initiation of any proceedings by any Person for that purpose; and 
 (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction
or the initiation or threat of any proceeding for such purpose; 

 (q) at least five days before filing a registration statement or prospectus
and as promptly as practicable prior to filing any amendments or supplements thereto, furnish to legal counsel representing the holders of the Registrable Securities covered by such registration statement copies of all such documents proposed to be
filed; 
 (r) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a registration statement filed in connection herewith, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest
possible moment; 
 (s) cooperate with each holder of Registrable Securities covered by the applicable
registration statement and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates will not bear any restrictive legends and will be in a
form eligible for deposit with the transfer agent for the Common Stock, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, or holders may request at least two
business days prior to any sale of Registrable Securities; 
 (t) make available for inspection by a
representative selected by the holders of a majority of the Registrable Securities to be included in such offering, any underwriter participating in any disposition pursuant to such registration and any attorney or accountant retained by such
selling holder or underwriter (each, an “Inspector”), all financial and other records, pertinent corporate documents and properties of the Company (the “Records”), and cause the Company’s officers, directors
and employees to supply, all information reasonably requested by any such Inspector in connection with such registration; provided that the Company will not be required to comply with this Section 4(t) if there is a reasonable
likelihood, in the judgment of the Company exercised in good faith, that such delivery could result in the loss of any evidentiary privilege related thereto; and provided further that Records which the Company determines, in good
faith, to be confidential and which it notifies the Inspectors are confidential will not be disclosed by the Inspectors (other than to any holder of Registrable Securities participating in such offering) unless (x) such Records have become
generally available to the public or (y) the disclosure of such Records is necessary or appropriate (A) to comply with any law, rule, regulation or order applicable to any such Inspector or holder of Registrable Securities, (B) in
response to any subpoena or other legal process or (C) in connection with any litigation to which such Inspector or any holder of Registrable Securities is a party (provided that Company is provided with reasonable notice of such
proposed disclosure and a reasonable opportunity to seek a protective order or other appropriate remedy with respect to such Records); and 
 (u) use its commercially reasonable efforts to provide a CUSIP number for the Registrable Securities, not later than the effective date of such registration. 
 Each holder of Registrable Securities who is an officer or employee of the Company agrees that if and for so long as such holder serves as
an officer of the Company or is employed by the Company, such holder will participate fully in the sale process relating to such offering, including the preparation of the related registration statement and the preparation and presentation of any
related road shows. Any holder of Registrable Securities requested to be included in such offering may withdraw any or all of such Registrable Securities from such

 
offering by written notice to the Company to that effect (whereupon such withdrawn Registrable Securities will no longer be considered to have been requested to be included in such offering), and
no such withdrawal will adversely affect the rights of any holder of Registrable Securities requested to be included in such offering. 
 5. Registration Expenses. 
 (a) All expenses incidental to
the Company’s performance of or compliance with this Agreement, including all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and
disbursements of custodians, and fees and disbursements of counsel for the Company and all independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company (all such expenses
being herein called “Registration Expenses”), will be borne by the Company, and the Company will pay its internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued by the Company are then
listed or on the NASD automated quotation system. 
 (b) In connection with each Demand Registration and each
Piggyback Registration, the Company will reimburse the holders of Registrable Securities included in such registration for the reasonable fees and disbursements of one law firm chosen by the holders of a majority of the Registrable Securities
requested to be included in such registration. 
 6. Indemnification. 
 (a) The Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Securities, such
holder’s officers and directors and each Person who controls such holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses caused by any untrue or alleged untrue statement of material fact
contained in any registration statement, prospectus or preliminary prospectus or any amendment of such registration statement or supplement to such registration statement or any omission or alleged omission of a material fact required to be stated
in such registration statement or necessary to make the statements in such registration statement not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly
for use in such registration statement or by such holder’s failure to deliver to the purchaser a copy of the related registration statement or prospectus or any amendments or supplements to such registration statement after the Company has
furnished such holder with copies of the same, in each case to the extent that such document was required to be delivered and the damages, liabilities or expenses are caused by a failure to deliver such document. In connection with an underwritten
offering, the Company will indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification
of the holders of Registrable Securities. 

 (b) In connection with any registration in which a holder of Registrable
Securities is participating, each such holder will furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any related registration statement or prospectus and, to the extent
permitted by law, will indemnify the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue or
alleged untrue statement of material fact contained in any such registration statement, prospectus or preliminary prospectus or any amendment of such registration statement or supplement to such registration statement or any omission or alleged
omission of a material fact required to be stated in such registration statement or necessary to make the statements in such registration statement not misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder or on such holder’s behalf, in such holder’s capacity as a holder of Registrable Securities and not in such holder’s capacity as a director or officer of the Company, if
applicable, expressly for use therein; provided that the obligation to indemnify will be individual, not joint and several, for each holder and will be limited to the net amount of proceeds received by such holder from the sale of Registrable
Securities pursuant to the registration statement, prospectus or amendment upon which the claim for indemnification is based. 
 (c) Any Person entitled to indemnification under this Section 6 will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give prompt notice will not impair any Person’s right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party) and (ii) unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An indemnifying
party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one law firm for all parties indemnified by such indemnifying party with respect to such claim, unless in
the reasonable judgment of any such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. 
 (d) The indemnification provided for under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive the transfer of securities and the termination of this Agreement. No indemnifying party, in the
defense of any such claim or litigation, will, except with the consent of any indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term of such settlement a requirement that the
claimant or plaintiff give to such indemnified party a release from all liability in respect to such claim or litigation. 
 (e) If the indemnification provided for in this Section 6 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any losses, claims, damages or
liabilities referred to in this Agreement, each indemnifying party, in lieu of

 
indemnifying such indemnified party thereunder, will, to the extent permitted by applicable law, contribute to the amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the omissions or violations (or alleged omissions or
violations) which resulted in such loss, claim, damage or liability. The relative fault of the indemnifying party and of the indemnified party will be determined by a court of law by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided, however, that in no event will any contribution by a holder hereunder exceed the net proceeds from the offering received by such holder less any amounts paid
pursuant to Section 6(b). The Company and each holder of Registrable Securities agrees that it would not be just and equitable if contribution pursuant to this Section 6(e) were determined by any method of allocation which
does not take into account the equitable considerations referred to in this Section 6(e). No Person guilty of fraudulent misrepresentation (within the meaning of subsection 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation. 
 7. Participation in Underwritten
Registrations. No Person may participate in any registration pursuant to this Agreement which is underwritten unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements
reasonably approved by the Person or Persons entitled pursuant to this Agreement to approve such arrangements, and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents that
are standard and customary and are required under the terms of such underwriting arrangements. 
 8. Rule 144;
Rule 144A. 
 (a) If the Company files a registration statement pursuant to Section 12 of the Securities
Exchange Act or a registration statement pursuant to the Securities Act, the Company will file the reports required to be filed by it under the Securities Act and the Securities Exchange Act with respect to Common Stock and the rules and regulations
adopted by the Securities and Exchange Commission thereunder and will use its commercially reasonable efforts to take such further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to
enable such holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 or (b) any similar rule or regulation hereafter adopted by the Securities and
Exchange Commission. Upon the request of any holder of Registrable Securities, the Company will deliver to such holder a written statement as to whether it has complied with such requirements. 
 (b) The Company represents and warrants that the Registrable Securities are not, and are not of the same class as any other
securities, listed on a national securities exchange registered under Section 6 of the Securities Exchange Act or quoted in an automated inter-dealer quotation system. For so long as the representations and warranties contained in the
immediately preceding sentence remain accurate and any shares of Registrable Securities are restricted

 
securities within the meaning of Rule 144(a)(3) under the Securities Act, the Company covenants and agrees that it will, during any period in which it is not subject to Section 13 or 15(d)
of the Securities Exchange Act, make available to any holder of Registrable Securities in connection with the sale of such holder’s Registrable Securities and any prospective purchaser of Registrable Securities from such, in each case upon
request, the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act. 
 9. Definitions. 
 “415 Registration” has the meaning set forth in Section 1(a).

 “Affiliate” means, as to any Person, any other Person which directly or indirectly controls, or is under
common control with, or is controlled by, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise). 
 “Agreement” has the meaning set forth in the first paragraph of this Agreement. 
 “AMP” means ABRY Mezzanine Partners, L.P., a Delaware limited partnership, and its Affiliates. 
 “Class A Common Units,” “Class B Common Units,” “Class C Common Units” and
“Class D Common Units” have the meanings set forth in the Operating Agreement, provided that such terms shall include any Equity Securities issued or issuable with respect to any Class A Common Units, Class B
Common Units, Class C Common Units and Class D Common Units by way of a distribution, unit dividend, unit split, conversion or in connection with a combination of units, recapitalization, merger, consolidation or other reorganization.

 “Common Stock” means the Common Stock of the Successor Corporation formed pursuant to Section 7 of the
Members Agreement. 
 “Common Units” means Class A Common Units, Class B Common Units, Class C Common
Units and Class D Common Units. 
 “Company” has the meaning set forth in the first paragraph of this
Agreement, which meaning will include any Successor Corporation. 
 “Company Registrable Securities” has the
meaning set forth in Section 4(c). 
 “Continuing Holder” means (i) New York Life, at any time
when New York Life, together with its Affiliates, holds either (A) Class A Common Units that constitute a majority of the Class A Common Units, or Class D Common Units that constitute a majority of the Class D Common Units, acquired
by New York Life on the date of this Agreement, (B) Registrable Securities that constitute a majority of the Common Stock issued pursuant to Section 7 of the Members Agreement in respect of the Class A Common Units acquired by New
York Life on the date of this Agreement or (C) Registrable Securities that constitute a majority of the Common

 
Stock issued pursuant to Section 7 of the Members Agreement in respect of the Class D Common Units acquired by New York Life on the date of this Agreement or (ii) Merrill, at any
time when Merrill, together with its affiliates, holds either (A) Class A Common Units that constitute a majority of the Class A Common Units, or Class D Common Units that constitute a majority of the Class D Common Units, acquired by
Merrill on the date of this Agreement, (B) Registrable Securities that constitute a majority of the Common Stock issued pursuant to Section 7 of the Members Agreement in respect of the Class A Common Units acquired by Merrill on the
date of this Agreement or (C) Registrable Securities that constitute a majority of the Common Stock issued pursuant to Section 7 of the Members Agreement in respect of the Class D Common Units acquired by Merrill on the date of this
Agreement. 
 “Demand Registrations” has the meaning set forth in Section 1(a). 
 “Equity Securities” of any Person means (i) any capital stock, partnership, membership, joint venture or other
ownership or equity interest, participation or securities in or of such Person (whether voting or non-voting, whether preferred, common or otherwise, and including any stock appreciation, contingent interest or similar right) and (ii) any
option, warrant, security or other right (including debt securities) directly or indirectly convertible into or exercisable or exchangeable for, or otherwise to acquire directly or indirectly, any stock, interest, participation or security described
in clause (i) above. 
 “Initial Public Offering” means the sale of shares of Common Stock in an
underwritten initial public offering registered under the Securities Act (other than on Form S-8 or Form S-4 or any comparable forms) that has been filed under the Securities Act and declared effective by the Securities and Exchange Commission or
any similar agency then having jurisdiction to enforce the Securities Act, other than a sale of Common Stock issued together with preferred stock or indebtedness of the Company or any of its Subsidiaries. 
 “Inspector” has the meaning set forth in Section 4(t). 
 “Investor Registrable Securities” means irrespective of which Person actually holds such securities, (i) any shares of
Common Stock acquired by an Investor on or after the date of this Agreement in respect of such Investor’s Class A Common Units, Class C Common Units or Class D Common Units pursuant to Section 7 of the Members Agreement, and
(ii) any shares of Common Stock issued or issuable with respect to the securities referred to in clause (i) above by way of a distribution, stock dividend, stock split, conversion or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization; provided that no such share of Common Stock will constitute an Investor Registrable Security at any time when such share is or would be subject to repurchase by the Company at
cost or the equivalent following the cessation of employment of any individual for a reason other than cause. As to any particular Investor Registrable Securities: (x) such Investor Registrable Securities will cease to be Investor Registrable
Securities for all purposes when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 (or any similar rule
then in force) and (y) such Investor Registrable Securities will cease to be Investor Registrable Securities for purposes of the first sentence of each of Section 1(a), Section 1(b), Section 1(c) and
Section 1(d), and the holder of such Investor Registrable Securities will have no right to demand registration of all or

 
any portion of such Investor Registrable Securities pursuant to any such first sentence (A) on the date when the holder of such Investor Registrable Securities is able to sell all such
securities in any three-month period without registration pursuant to Rule 144 (or when such holder would otherwise be able to sell all such securities as of such date without registration pursuant to Rule 144 but for such holder being or having the
right to designate a director of the Company or being part of a “group” (as such term is used in Section 13(d)(3) of the Securities Exchange Act) with a Person who is such a director or who has such a right); provided that any
security that ceases to be an Investor Registrable Security by operation of this clause (y)(A) will again be deemed to be an Investor Registrable Security if a subsequent decrease in trading volume results in the holder thereof not being able to
sell such securities during such period without registration pursuant to Rule 144, or (B) on the date when the holder of such Investor Registrable Securities is able to sell all such securities without registration pursuant to Rule 144(k) under
the Securities Act (or when such holder would otherwise be able to sell all such securities as of such date without registration pursuant to Rule 144(k) under the Securities Act but for such holder being or having the right to designate a director
of the Company or being part of a “group” (as such term is used in Section 13(d)(3) of the Securities Exchange Act) with a Person who is such a director or who has such a right). For purposes of this Agreement, a Person will be deemed
to be a holder of Investor Registrable Securities whenever such Person has the right to acquire such Investor Registrable Securities (upon conversion or exercise or otherwise, but disregarding any restrictions or limitations upon the exercise of
such right), whether or not such acquisition has actually been effected. 
 “Investors” has the meaning set
forth in the first paragraph of this Agreement. 
 “Long-Form Registrations” has the meaning set forth in
Section 1(a). 
 “Members Agreement” means the Members Agreement, dated as of the date of this
Agreement, by and among the Company and its members, as in effect from time to time. 
 “Merrill” means Merrill
Lynch Capital Corporation. 
 “NASD” has the meaning set forth in Section 4(g). 
 “New York Life” means New York Life Capital Partners II, L.P. 
 “Operating Agreement” means the Company’s Amended and Restated Limited Liability Company Operating Agreement, dated as
of the date hereof, by and among the Company and its members, as in effect from time to time. 
 “Outside Preferred
Investor Registrable Securities” means the Preferred Investor Registrable Securities other than any Preferred Investor Registrable Securities owned by AMP or any of its Affiliates. 
 “Person” means an individual, a partnership, a joint venture, a corporation, a trust, a limited liability company, an
unincorporated organization or a government or any department or agency thereof. 
 “Piggyback Registration”
has the meaning set forth in Section 2(a). 

 “Preferred Investor” means AMP, New York Life, Merrill, or any of their
respective Affiliates (other than ABRY Partners IV, L.P.). 
 “Preferred Investor Registrable Securities” means
irrespective of which Person actually holds such securities, (i) any shares of Common Stock acquired by an Investor on or after the date of this Agreement pursuant to Section 7 of the Members Agreement in respect of Class A Common
Units or Class D Common Units issued to a Preferred Investor on the date hereof, and (ii) any shares of Common Stock issued or issuable with respect to the securities referred to in clause (i) above by way of a distribution, stock
dividend, stock split, conversion or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular Preferred Investor Registrable Securities: (x) such Preferred Investor
Registrable Securities will cease to be Preferred Investor Registrable Securities for all purposes when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through a broker,
dealer or market maker in compliance with Rule 144 (or any similar rule then in force), and (y) such Preferred Investor Registrable Securities will cease to be Preferred Investor Registrable Securities for purposes of the first sentence of each
of Section 1(a), Section 1(b), Section 1(c) and Section 1(d) and the holder of such Preferred Investor Registrable Securities will have no right to demand any registration of all or any portion of such
Preferred Investor Registrable Securities pursuant to any such first sentence, (A) on the date when the holder of such Registrable Securities is able to sell all such securities in any three-month period without registration pursuant to Rule
144 (or when such holder would otherwise be able to sell all such securities as of such date without registration pursuant to Rule 144 but for such holder being or having the right to designate a director of the Company or being part of a
“group” (as such term is used in Section 13(d)(3) of the Securities Exchange Act) with a Person who is such a director or who has such a right); provided that any security that ceases to be a Preferred Investor Registrable
Security by operation of this clause (y)(A) will again be deemed to be a Preferred Investor Registrable Security if a subsequent decrease in trading volume results in the holder thereof not being able to sell such securities during such period
without registration pursuant to Rule 144, or (B) on the date when the holder of such Preferred Investor Registrable Securities is able to sell all such securities without registration pursuant to Rule 144(k) under the Securities Act (or when
such holder would otherwise be able to sell all such securities as of such date without registration pursuant to Rule 144(k) under the Securities Act but for such holder being or having the right to designate a director of the Company or being part
of a “group” (as such term is used in Section 13(d)(3) of the Securities Exchange Act) with a Person who is such a director or who has such a right). For purposes of this Agreement, a Person will be deemed to be a holder of Preferred
Investor Registrable Securities whenever such Person has the right to acquire such Preferred Investor Registrable Securities (upon conversion or exercise or otherwise, but disregarding any restrictions or limitations upon the exercise of such
right), whether or not such acquisition has actually been effected. 
 “Records” has the meaning set forth in
Section 4(t). 
 “Registrable Securities” means, collectively, the Investor Registrable Securities
and the Preferred Investor Registrable Securities. 
 “Registration Expenses” has the meaning set forth in
Section 5(a). 

 “Rule 144” means Rule 144 promulgated under the Securities Act, as in
effect from time to time. 
 “Securities Act” means the Securities Act of 1933, as amended and in effect from
time to time. 
 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended and in effect
from time to time. 
 “Short-Form Registrations” has the meaning set forth in Section 1(a).

 “Subsidiaries” means, with respect to any Person: 
 (a) any corporation a majority of the total voting power of shares of stock of which is entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination
thereof; or 
 (b) any partnership, limited liability company, association or other business entity a majority of
the partnership or other similar ownership interest of which is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. 
 For purposes of this definition, a Person is deemed to have a majority ownership interest in a partnership, limited liability company,
association or other business entity if such Person is allocated a majority of the gains or losses of such partnership, limited liability company, association or other business entity or is or controls the managing director, managing member or
general partner of such partnership, limited liability company, association or other business entity. 
 “Successor
Corporation” has the meaning set forth in Section 7 of the Members Agreement. 
 “Takedown” has
the meaning set forth in Section 1(d)(ii). 
 10. Miscellaneous. 
 (a) No Inconsistent Agreements. The Company will not after the execution of this Agreement enter into any agreement
with respect to its Equity Securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 
 (b) Adjustments Affecting Registrable Securities. The Company will not take any action, or permit any change to occur, with respect to its Equity Securities which would materially and adversely
affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement or which would materially and adversely affect the marketability of such Registrable
Securities in any such registration (including effecting a stock split or a combination of shares). 

 (c) Remedies. Any Person having rights under any provision of this
Agreement will be entitled to enforce such rights specifically to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or other security) for
specific performance and for other injunctive relief in order to enforce or prevent violation of the provisions of this Agreement. 
 (d) Amendments and Waivers. Except as otherwise provided in this Agreement, the provisions of this Agreement may be amended or waived only upon the prior written consent of the Company and holders
of a majority of the Registrable Securities; provided that no such amendment or waiver will adversely affect the rights hereunder of any party hereto when compared with its effect on the other similarly-situated parties to this Agreement
without the prior written approval of a majority-in-interest of such adversely affected parties; provided, further, that no such amendment or waiver shall (i) increase the liability of the holders of Preferred Investor Registrable
Securities or Outside Preferred Investor Registrable Securities or (ii) modify (A) Section 2, Section 3, Section 4 or Section 6 hereof or (B) the terms of this Agreement with respect to
any Demand Registrations that may be initiated by the holders of Preferred Investor Registrable Securities or Outside Preferred Investor Registrable Securities (including the right to initiate any such registration), in the case of each of clauses
(ii)(A) and (ii)(B) above, in a manner adverse to such holders without the prior written consent of the holders of a majority of the Outside Preferred Investor Registrable Securities affected thereby (provided that such consenting holders
include at least one Continuing Holder, if either Merrill or New York Life is then a Continuing Holder). 
 (e)
Successors and Assigns. All covenants and agreements in this Agreement by or on behalf of any of the parties to this Agreement will bind and inure to the benefit of the respective successors and assigns of the parties to this Agreement
whether so expressed or not. In addition, whether or not any express assignment has been made, the provisions of this Agreement which are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable
by, any subsequent holder of such Registrable Securities; provided that neither (a) the rights of New York Life (or any of its Affiliates), in its capacity as a Continuing Holder, pursuant to Section 10(d) may be assigned (other
than to an Affiliate of New York Life), nor (b) the rights of Merrill (or any of its Affiliates), in its capacity as a Continuing Holder, pursuant to Section 10(d) may be assigned (other than to an Affiliate of Merrill), in each case,
without both the prior written consent of the Company and the approval of the Board. 
 (f) Severability.
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such
provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

 (g) Counterparts. This Agreement may be executed in two or more
counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same agreement. 
 (h) Descriptive Headings; Interpretation; No Strict Construction. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement will include the corresponding masculine, feminine or neuter forms, and the singular forms
of nouns, pronouns, and verbs will include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms
of such agreement, document or instrument, and if applicable, of this Agreement. The use of the words “include” or “including” in this Agreement will be by way of example rather than by limitation. The use of the words
“or,” “either” or “any” will not be exclusive. The parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement will be construed as if drafted jointly by the parties to this Agreement, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement. The parties agree that prior drafts of this Agreement will be deemed not to provide any evidence as to the meaning of any provision of this Agreement or the intent of the parties hereto with respect to this Agreement. 
 (i) GOVERNING LAW. ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION AND ENFORCEMENT OF
THIS AGREEMENT AND ANY EXHIBITS AND SCHEDULES TO THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF
THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
 (j) Notices. All communications or notices required or permitted by this Agreement will be in writing and will be deemed to have been given (a) on the date of personal delivery to the
recipient or an officer of the recipient, or (b) when sent by facsimile machine to the number shown below on the date of such confirmed facsimile transmission (provided that a confirming copy is sent via overnight mail), or (c) when
properly deposited for delivery by a nationally recognized commercial overnight delivery service, prepaid, or three business days after deposit in the United States mail, certified or registered mail, postage prepaid, return receipt requested in
each case, addressed as follows: 
 If to the Company, to: 

			
		  	  
 Language Line Holdings, LLC
 c/o ABRY Partners, LLC
 111 Huntington Avenue, 30
th Floor
 Boston, MA 02199
 Attention:    
Peggy Koenig
 Facsimile:    (617) 859-2959

 with copies (which will not constitute notice to the Company), to:

			
		  	  
 Kirkland & Ellis LLP
 Citigroup Center
 153 E. 53rd Street
 New York, NY 10022
 Attention:     John Kuehn, Esq.
 Facsimile:    (212) 446-4900

 if to any Investor: 

			
		  	  
 to the address specified for
 such Investor in the books
 and records of the
Company

 or to such other address or to the attention of such other person as the recipient party has specified by prior
written notice to the sending party. 
 (k) Waiver of Jury Trial. Each party to this Agreement hereby
waives, to the fullest extent permitted by law, any right to trial by jury of any claim, demand, action, or cause of action (i) arising under this Agreement or (ii) in any way connected with or related or incidental to the dealings of the
parties hereto in respect of this Agreement or any of the transactions related hereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity, or otherwise. Each party to this Agreement hereby agrees and
consents that any such claim, demand, action, or cause of action will be decided by court trial without a jury and that the parties to this Agreement may file an original counterpart or a copy of this Agreement with any court as written evidence of
the consent of the parties hereto to the waiver of their right to trial by jury. 
 (l) SUBMISSION TO
JURISDICTION. ANY AND ALL SUITS, LEGAL ACTIONS OR PROCEEDINGS ARISING OUT OF THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND EACH PARTY TO THIS
AGREEMENT HEREBY SUBMITS TO AND ACCEPTS THE EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF SUCH SUITS, LEGAL ACTIONS OR PROCEEDINGS. IN ANY SUCH SUIT, LEGAL ACTION OR PROCEEDING, EACH PARTY TO THIS AGREEMENT WAIVES PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREES THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO IT AT ITS ADDRESS SET FORTH IN THE BOOKS AND RECORDS OF THE COMPANY. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OR ANY SUCH SUIT, LEGAL ACTION OR PROCEEDING IN ANY SUCH COURT AND HEREBY FURTHER WAIVES ANY CLAIM THAT ANY SUCH CUIT, LEGAL ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

 (m) Transfer. Prior to transferring any shares of Common Stock (other
than in a transfer pursuant to which such shares of Common Stock cease to be Registrable Securities) to any Person, the Person transferring such shares will cause the prospective transferee to execute and deliver to the Company (for itself and as
the agent of the other Investors), a counterpart to this Agreement pursuant to which the prospective transferee agrees to be bound by this Agreement to the same extent as the Person transferring such shares of Common Stock with respect to the shares
of Common Stock so transferred. Any purported transfer of Registrable Securities that is not effected in accordance with the preceding sentence will be null and void and will not be binding upon the Company or any Investor or create any right in
favor of the purported transferee. 
 (n) Entire Agreement. Except as otherwise expressly set forth in
this Agreement, this Agreement and the other agreements referred to in this Agreement embody the complete agreement and understanding among the parties to this Agreement with respect to the subject matter of this Agreement and supersede and preempt
any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter of this Agreement in any way. 

 IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as
of the date first above written. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By:	 	 
		
	By:	 	 
		
	By:	 	 
		 	Name:
		 	Title:
	
	INVESTORS:
	
	ABRY PARTNERS IV, L.P.
		
	By:	 	ABRY Capital Partners, L.P.,
its general partner
		
	By:	 	ABRY Capital Partners, L.L.C.,
its general partner
		
	By:	 	 
		 	Name:
		 	Title:
	
	ABRY MEZZANINE PARTNERS, L.P.
		
	By:	 	ABRY MEZZANINE INVESTORS, L.P.,
its general partner
		
	By:	 	ABRY MEZZANINE HOLDINGS LLC,
its general partner
		
	By:	 	 
		 	Name:
		 	Title:
	
	ABRY INVESTMENT PARTNERSHIP, L.P.
		
	By:	 	ABRY Investment GP, LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

 1 

			
	MERRILL LYNCH CAPITAL CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:
	
	NEW YORK LIFE CAPITAL PARTNERS II, L.P.
		
	By:	 	NYLCAP MANAGER LLC,
its investment manager
		
	By:	 	 
		 	Name:
		 	Title:

			
	DENNIS G. DRACUP DECLARATION OF TRUST DATED 01.19.1999.
		
	By:	 	 
		 	Name: Dennis G. Dracup, Trustee
	
	CHRISTINE L. DRACUP DECLARATION OF TRUST DATED 01.19.1999.
		
	By:	 	 
		 	Name: Christine L. Dracup, Trustee
		
		 	 
		 	MATTHEW GIBBS
		
		 	 
		 	JAMES MOORE
		
		 	 
		 	JEANNE ANDERSON
		
		 	 
		 	DENNIS BAILEY
		
		 	 
		 	PHIL SPECIALE
		
		 	 
		 	YUNG-CHUNG HEH

  

 1 

 Exhibit A 
 JOINDER TO THE  
 REGISTRATION RIGHTS
AGREEMENT 
 THIS JOINDER (this “Joinder”) is made and entered into as of
[            ], by and between Language Line Holdings, LLC, a Delaware limited liability company (the “Company”), and
[            ] (“Holder”). This Joinder joins Holder to the Registration Rights Agreement (the “Agreement”), dated as of
June [            ], 2004, by and among the Company and each of the Investors (as defined in the Agreement). Capitalized terms used in this Joinder but not otherwise
defined will have the meanings set forth in the Agreement. 
 WHEREAS, (i) Holder has acquired certain shares of Common
Stock (or Equity Securities convertible, directly or indirectly, into shares of Common Stock), (ii) the Company desires to grant to Holder certain registration rights in accordance with the terms of the Agreement and each of the Investors
consents to the granting of such registration rights, and (iii) it is a condition to the transfer or issuance to the Holder that Holder agrees to be bound by the terms of the Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Joinder and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties to this Joinder hereby agree as follows: 
 1.
Agreement to be Bound. Holder agrees that upon execution of this Joinder, Holder will become a party to the Agreement and will be fully bound by, and subject to all of the covenants, terms and conditions of the Agreement as though an original
party to the Agreement and the shares of Common Stock held by Holder will be deemed [Investor/Preferred Investor/Outside Preferred Investor] Registrable Securities for all purposes of the Agreement, subject to the terms and conditions
contained in the Agreement. The Company and each of the Investors agree that upon execution of this Agreement, the Common Stock held by Holder will be deemed [Investor/Preferred Investor/Outside Preferred] Registrable Securities for all
purposes of the Agreement, subject to the terms and conditions of the Agreement. 
 2. Successors and
Assigns. Except as otherwise provided in this Joinder, this Joinder will bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and Holder and any subsequent holders of the shares of Common Stock
initially held by Holder and the respective successors and assigns of each of them, so long as they hold such shares. 
 3. Counterparts. This Joinder may be executed in separate counterparts each of which will be an original and all of which taken together will constitute one and the same agreement. 
  

 1 

 4. Governing Law. All questions concerning the construction, validity
and interpretation of this Joinder will be governed by and construed in accordance with the domestic laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
 5. Descriptive Headings. The descriptive headings of this Joinder are inserted for convenience only and do not constitute a part of this Joinder. 

 IN WITNESS WHEREOF, the parties to this Joinder have executed this Joinder as of the date
first above written. 
  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By:	 	 
		 	Name:
		 	Title:

 Holder Signature Page: 
  

			
	Name:
		
	By:	 	 
		 	Name:
		 	Title:
	
	Address:
	
	Facsimile:

 EXHIBIT D 

 STANDSTILL AND SUBORDINATION AGREEMENT 
 THIS STANDSTILL AND SUBORDINATION AGREEMENT, dated as of June 11, 2004 (this “Agreement”), is entered into by and
among Language Line Holdings II, Inc., a Delaware corporation (“Borrower”), Merrill Lynch Capital Corporation, a national banking association (the “Agent”), in its capacity as administrative agent for the Senior
Lenders (as defined below) under the Senior Loan Agreement (as defined below), Citicorp USA Inc., a Delaware corporation (the “Junior Lender”), and each of the entities set forth on the signature page hereof as a “Preferred
Stockholder” (together with their respective successors, assignees and transferees, the “Preferred Stockholders” and together with the Agent, the “Senior Entities”). 
 W I T N E S S E T H 
 WHEREAS, the Agent, the Senior Lenders and a wholly-owned subsidiary of the Borrower are parties to that certain Loan Agreement, dated as of June 11, 2004, by and among Language Line Holdings, Inc., a Delaware corporation that is a
wholly-owned subsidiary of the Borrower (“Holdings”), Language Line, Inc., a Delaware corporation and a wholly-owned subsidiary of Holdings (“Language Line”), various financial institutions that are (or may become)
parties thereto as lenders (the “Senior Lenders”), the Agent, Merrill Lynch & Co, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Banc of America Securities LLC, as joint lead arrangers and joint
book-runners, Bank of America, N.A., as syndication agent and National City Bank, as documentation agent (as amended from time to time or as replaced, refinanced or refunded as contemplated by Section 15(b), the “Senior Loan
Agreement”), pursuant to which, among other things, (i) the Senior Lenders have agreed to make certain senior secured loans to Language Line, (ii) Holdings has guaranteed the obligations of Language Line under the Senior Loan
Agreement and the other Loan Documents referred to therein pursuant to the Holdings Guaranty dated as of June 11, 2004 between Holdings and the Agent (as amended from time to time the “Senior Guaranty”) and has pledged its
shares of Language Line to the Agent pursuant to the Security Agreement dated as of June 11, 2004 among Holdings, certain of its Subsidiaries and the Agent (as amended from time to time, the “Senior Pledge Agreement”) and
(iii) the Agent may, from time to time, take certain actions on behalf of the Senior Lenders to enforce the obligations of Language Line and Holdings; 
 WHEREAS, each of the Preferred Stockholders has purchased units of Series A Preferred Units of Language Line Holdings, LLC, a Delaware limited liability company and the parent of the Borrower
(“LLC”) (the “Preferred Stock”) pursuant to a Securities Purchase Agreement, dated as of June 11, 2004 (as amended from time to time, the “Purchase Agreement”); 
 WHEREAS, pursuant to the terms of that certain Term Loan and Revolving Line of Credit Agreement (as amended from time to time to the extent
permitted by this Agreement, the “Junior Loan Agreement”), dated as of the date hereof, between the Borrower and the Junior Lender, the Junior Lender has agreed to make certain loans to Borrower; and 

 WHEREAS, the Senior Entities and the Junior Lender desire to enter into this Agreement to
set forth the relative rights and obligations with respect to the loans and preferred stock made or purchased by them. 
 NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Subordination of Obligations under Junior Loan Agreement. 
 (a) All Obligations (as defined in the Junior Loan Agreement as in effect on the date hereof) of the Borrower (the “Junior Obligations”) are and shall be expressly “subordinate and
junior in right of payment” (as such phrase is defined below) to the prior payment in full of all Senior Obligations (as defined below) to the extent and in the manner hereinafter set forth. So long as the Senior Obligations are outstanding or
there remains any commitment to advance loan funds under the Senior Loan Agreement, the Junior Lender will not take, retain, permit to exist, demand or receive from the Borrower, and the Borrower will not make, give or permit, directly or
indirectly, by set-off, redemption, purchase or in any other manner, (i) any payment of the Junior Obligations (whether in respect of principal, interest or any other amount, and whether prior to, at or after the scheduled maturity thereof),
other than any Permitted Repayment, (ii) any security or collateral for the whole or any part of the Junior Obligations or (iii) any guaranty of the whole or any part of the Junior Obligations. The Borrower expressly agrees that it will
not make any payment in respect of the Junior Obligations, or take any other action, in contravention of the subordination provisions of this Agreement. Notwithstanding anything to the contrary contained herein, the Junior Lender may deliver notice
to the Borrower that an Event of Default (as defined in the Junior Loan Agreement) exists; provided that the Junior Lender endeavors to deliver a copy of such notice promptly to the Agent and holders of Preferred Stock. 
 (b) “Senior Obligations” shall mean (i) Holdings’ obligations under the Senior Guaranty and Senior Pledge
Agreement (the “Senior Debt Obligations”), and (ii) LLC’s obligations in respect of the Preferred Stock arising under its Amended and Restated Limited Liability Company Agreement and the Purchase Agreement (the
“Preferred Obligations”). 
 (c) “subordinate and junior in right of payment” shall mean that
the Junior Lender shall not have any claim to the assets of the Borrower on any of its Subsidiaries on a parity with or prior to the claim of any holder of any of the Senior Obligations. 
 (d) “Permitted Repayment” means any payment in respect of any Junior Obligation that: 
 (i) is made to pay any interest due and owing under the Junior Loan Agreement to the extent such payment is made with the
proceeds of any advance under the Tranche B Revolving Line of Credit (as defined in the Junior Loan Agreement), or 
  

 2 

 (ii) is made: 
 (A) either (x) at a time when no Senior Loan Obligations are outstanding and no commitments to advance loan funds under
the Senior Loan Agreement remain or (y) in compliance with the Senior Loan Agreement (giving effect to any consent or waiver thereunder); and 
 (B) either (x) at a time when no Preferred Stock or Preferred Obligations are outstanding or (y) in compliance with the Purchase Agreement (giving effect to any consent or waiver thereunder).

 (e) The subordination provisions in this Agreement are for the benefit of and may be enforceable directly by the holders of
Senior Obligations, and each such holder shall be deemed to have acquired such Senior Obligations in reliance upon such subordination provisions. 
 2. Restrictions on Enforcement; Notice to Junior Lender, (a) The Junior Lender agrees that so long as any Senior Obligations are outstanding or there remains any commitment to advance loan funds under the Senior Loan Agreement,
it will not exercise or seek to exercise any rights or remedies (including set-off) it may have under the Junior Loan Agreement, or to accelerate, sue for or collect the Junior Obligations, or to realize upon any assets of the Borrower or any of its
Subsidiaries to attach, levy upon or execute against any assets of the Borrower or any of its Subsidiaries, or to initiate any bankruptcy or similar proceedings with respect to the Borrower or any of its Subsidiaries. In furtherance of the
foregoing, Junior Lender expressly agrees and acknowledges that, but for any Permitted Repayments, so long as the Senior Obligations remain outstanding or there remains any commitment to advance loan funds under the Senior Loan Agreement its sole
source of repayment of the Junior Obligations shall be the Guaranty (as defined in the Junior Loan Agreement) of the Guarantor (as defined in the Junior Loan Agreement) and the collateral securing Guarantor’s obligations thereunder. 

(b) the Agent shall endeavor to deliver to the Junior Lender a copy of any default notices under the Senior Obligations and/or Preferred
Obligations promptly following the delivery of same to the Borrower. 
 3. Subordination Relating to Repayment of Loans. Without limiting
the provisions of Section 1, upon any payment or distribution of all or any of the assets or securities of the Borrower of any kind or character (other than a Permitted Repayment), whether in cash, property or securities, whether made pursuant
to a bankruptcy relative to the Borrower or any of its properties, or a distribution of proceeds of or upon sale of all or any part of the Borrower or any of its Subsidiaries (as defined in the Senior Loan Agreement and the Purchase Agreement) or
any of their respective assets, then in such event: 
 (i) the holders of Senior Obligations shall be entitled to
receive payment in full, in cash, as provided herein of all amounts due or to become due on or in respect of all Senior Obligations before any payment is made on account of or applied to the Junior Obligations; 
 (ii) any payment or distribution of assets of the Borrower of any kind or character, whether in cash, property or securities
(including any payment or other distribution that may be payable by reason of the payment of any other indebtedness of the Borrower being subordinated to the payment of the Junior Obligations), to which the Junior Lender would be entitled except

  

 3 

 
for the subordination provisions of this Agreement, shall be paid or delivered by any debtor, custodian, receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such
payment or distribution, directly to the Agent, on behalf of the holders of Senior Obligations (or to a holder of Preferred Stock, on behalf of all holders of Preferred Obligations, if no Senior Obligations are then outstanding and no commitments to
advance loan funds under the Senior Loan Agreement remain), for application to the payment or prepayment of all such Senior Obligations remaining unpaid to the extent necessary to pay all such Senior Obligations in full, after giving effect to any
concurrent payment or distribution to such holders of Senior Obligations; and 
 (iii) in the event that,
notwithstanding the foregoing subordination provisions of this Agreement, the Junior Lender shall have received any payment or distribution with respect to any Junior Obligation contrary to such foregoing subordination provisions, then and in such
event such payment or distribution shall be held in trust for the benefit of, and shall be immediately paid or delivered by the Junior Lender to the Agent, on behalf of the holders of Senior Obligations (and to a holder of Preferred Stock, on behalf
of all holders of Preferred Obligations, if no Senior Debt Obligations are then outstanding and no commitments to advance loan funds under the Senior Loan Agreement remain), for application to the payment or prepayment of all Senior Obligations
remaining unpaid, to the extent necessary to pay all such Senior Obligations in full, after giving effect to any concurrent payment or distribution to such holders of Senior Obligations. 
 In the event of a bankruptcy, insolvency or similar proceeding, if the Junior Lender has not filed any claim, proof of claim or other instrument of similar character within 20 days before the expiration
of the time to file the same, the Agent on behalf of the Junior Lender may, as an attorney-in-fact for the Junior Lender, file, any claim, proof of claim or other instrument of similar character on behalf of the Junior Lender, and the Junior Lender
hereby appoints the Agent as an attorney-in-fact for the Junior Lender, to so file any claim, proof of claim or such other instrument of similar character and, if not filed by the Agent at least 5 days before the respective bar date a representative
selected by the Required Holders (as defined in the Purchase Agreement) (the “Preferred Stock Representative”) may make such filing. The Junior Lender ratifies all that the Agent and the Preferred Stock Representative, as said
attorney-in-fact, shall lawfully do or cause to be done by virtue hereof and not in contravention of the terms hereof. The power of attorney granted in this paragraph is a power coupled with an interest and shall be irrevocable. 
 4. Subrogation. So long as the Senior Obligations are outstanding or there remains any commitment to advance loan funds under the Senior Loan
Agreement, the Junior Lender shall be subrogated to the rights of the holders of Senior Obligations to receive payments or distributions of assets of the Borrower and its Subsidiaries made on account of the Senior Obligations until the Senior
Obligations are paid in full, in cash, and for purposes of such subrogation, no payment or distribution to the holders of Senior Obligations of assets, whether in cash, property or securities, distributable to the holders of Senior Obligations under
the provisions hereof to which the Junior Lender would be entitled except for the subordination provisions of this Agreement, and no payment pursuant to the subordination provisions of this Agreement to the holders of Senior Obligations by the
Junior Lender shall, as between the Borrower, its creditors other than the

  

 4 

 
holders of Senior Obligations and the Junior Lender, be deemed to be a payment by the Borrower to or on account of such Senior Obligations, it being understood that the subordination provisions
of this Agreement are, and are intended, solely for the purpose of defining the relative rights of the Junior Lender, on the one hand, and the holders of Senior Obligations, on the other hand. 
 5. No Sinking Fund. So long as any Senior Obligations remain outstanding or there remains any commitment to advance loan funds under the Senior Loan
Agreement, the Borrower will not establish a sinking fund for the payment or prepayment of or otherwise arrange for the defeasance of the Junior Obligations. The Junior Lender agrees that it will not challenge, object to or in any respect inhibit or
otherwise interfere with the enforcement by the Agent or the holders of Preferred Stock of any of their rights or remedies in respect of the Senior Obligations. 
 6. Release of Senior Entities. Neither the Agent nor any holder of Senior Obligations shall have any liability whatsoever to the Junior Lender with respect to, and the Junior Lender waives any
claim or defense which it may now or hereafter have against the Agent or any holder of Senior Obligations arising from (i) any and all actions which the Agent or the holders of Senior Obligations take or omit to take (including, without
limitation, actions with respect to the creation, perfection or continuation of liens upon any collateral securing any of the Senior Obligations, actions with respect to the occurrence of any default under any Senior Obligations, actions with
respect to the foreclosure upon, sale, release of, depreciation of or failure to realize upon any of such collateral, and actions with respect to the collection of any claim for all or any part of the Senior Obligations from any account debtor,
guarantor or any other person) with respect to the Senior Obligations or the valuation, use, protection or release of any collateral now or hereafter securing same; (ii) any right, now or hereafter existing, to require the Agent or the holders
of Senior Obligations to proceed against or exhaust any collateral at any time securing the Senior Obligations or to marshal any assets in favor of the Junior Lender; (iii) any notice of the incurrence or increase of Senior Obligations, it
being understood that the Agent or the holders of Senior Obligations may make advances now or hereafter relating to the Senior Obligations, without notice to or authorization from the Junior Lender, in reliance upon the agreements set forth in this
Agreement, including but not limited to the provisions of the immediately following paragraph; or (iv) any defense based upon or arising by reason of (A) any disability or other defense of the Borrower or any other person or entity, or
(B) any lack of authority of any agent or any other person or entity acting or purporting to act on behalf of the Borrower or the Junior Lender, or (C) any failure by the Agent or any holder of Senior Obligations to properly perfect any
lien in any asset of any Credit Party (as defined in the Senior Loan Agreement) or other obligor. 
 7. Rights of Senior Entities. The
Agent, the Senior Lenders and/or (as applicable) any holder of Preferred Stock may, at any time and from time to time, without the consent of or notice to the Junior Lender, without incurring responsibility to the Junior Lender, and without
impairing or releasing any of their rights, or any of the obligations of the Junior Lender hereunder, do any of the following: 
 (i) change the amount, manner, place, or terms of payment or change or extend the time of payment of or increase, renew or alter their respective Senior Obligations, or any part thereof, or enter into or
amend in any manner any agreement (including any related loan agreement, promissory notes and collateral documents) relating to their respective Senior Obligations; 
  

 5 

 (ii) sell, exchange, release, or otherwise deal with all or any part of any
property by whomsoever at any time pledged or mortgaged to secure, or howsoever securing, their respective Senior Obligations, or any part thereof; 
 (iii) release anyone liable in any manner for the payment or collection of their respective Senior Obligations, or any part thereof or waive any rights against any person; 
 (iv) exercise or refrain from exercising any rights against the Borrower and its Subsidiaries; and 
 (v) apply any sums, by whomsoever paid or however realized, to their respective Senior Obligations. 
 At any time when no Senior Debt Obligations are outstanding and no commitments to advance funds under the Senior Loan Agreement remain, the
Required Holders (for the benefit of the holders of the Preferred Stock) may take any action that otherwise may be taken pursuant to the terms of this Agreement by the Agent for the benefit of the Senior Lenders. 
 Nothing in this Section 7 or elsewhere in this Agreement shall alter in any manner the relative rights of (a) the Agent and the
Senior Lenders, on the one hand, and the holders of the Preferred Stock, on the other hand, (b) the Agent and the Senior Lenders, on the one hand, and the Borrower, on the other hand, or (c) the holders of the Preferred Stock, on the one
hand, and the Borrower, on the other hand. 
 This Agreement shall not be construed to create any obligation, responsibility or
liability whatsoever on the part of the Agent or any Senior Lender to the holders of the Preferred Stock, or any of them. 
 8. Legend.
The Junior Lender will advise any future assignee of the Junior Lender’s rights under the Junior Loan Agreement that the Junior Obligations are subordinated to the Senior Obligations in the manner and to the extent set forth herein, and will
place a legend on each note issued pursuant to the Junior Loan Agreement (whether upon transfer or otherwise), indicating that such note, instrument, agreement and/or document is subject to the foregoing subordination provisions, and that by
accepting or holding such other note, each holder or owner is bound by the terms of such subordination provisions to the same extent that the Junior Lender is bound. 
  

 6 

 9. Notices. All notices, demands, requests, and communications permitted or required under this
Agreement shall be in writing, may be personally served or sent by telex (confirmed by telephone), telecopier (confirmed by telephone), U.S. mail or any express mail service, and shall be effective upon receipt, such receipt being deemed to occur
forty-eight (48) hours after its deposit in the U.S. mail, postage prepaid or twenty-four (24) hours after its transmission by telex, telecopier or express mail service, as the case may be, addressed to the individuals and addresses
indicated below: 
  

	 	(a)	If to Borrower: 

 Language Line
Holdings II, Inc. 
 c/o ABRY Partners IV, L.P. 
 111 Huntington Avenue 
 30th Floor 
 Boston, Massachusetts 02199 
 Attention:         C. J. Brucato and Deborah Johnson 
 Telecopy:         (617) 859-8797 
 - and - 
 Kirkland & Ellis LLP 
 Citigroup Center 
 153 East 53rd Street 
 New York, New York 10022 
 Attention:         John L. Kuehn, Esq. 
 Telecopy:         (212) 446-4900 
 with a copy (which will not constitute
notice to the Borrower) to: 
 ABRY Partners IV, L.P. 
 111 Huntington Avenue 
 30th Floor

 Boston, Massachusetts 02199 
 Attention:         Peggy Koenig and C.J. Brucato 
 Telecopy:         (617) 859-8797 
 - and - 
 Kirkland & Ellis LLP 
 Citigroup Center 
 153 East 53rd Street 
 New York, New York 10022 
 Attention:         John L. Kuehn, Esq. 
 Telecopy:         (212) 446-4900 
  

	 	(b)	If to the Junior Lender: 

 Citicorp USA, Inc. 
 c/o Citibank, N.A. 
 153 East 53rd Street - 18th Floor 
 New York, New York 10022 
 Attention:         Michael Robin, Director 
 Telecopy:         (212) 793-0022 
  

 7 

 with a copy (which shall not constitute notice to the Junior Lender) to: 
 St. John & Wayne, L.L.C. 
 70 East 55th
Street - 19th Floor 
 New York, New York 10022 
 Attention:         Peter G. Seiden, Esq. 
 Telecopy:         (212) 446-5055 
  

	 	(c)	If to the Agent: 

 Merrill Lynch
Capital Corporation 
 4 World Financial Center 
 250 Vesey Street 
 New York, NY 10080 
 Attention:         Chantal Simon and Stephanie Vallillo 
 Telecopy:         (212) 738-1186 
 with a copy (which will not constitute notice to the Agent) to: 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attention:         Jonathan Schaffzin, Esq. 
 Telecopy:         (212) 269-5490 
  

	 	(d)	If to the Preferred Stockholders: 

 ABRY Mezzanine Partners, L.P. 
 111 Huntington Avenue 
 30th Floor 
 Boston, MA 02199 
 Attention:         Dan
Budde 
 Telecopy:         (617) 859-8797 
 Merrill Lynch Capital Corporation 
 4 World Financial Center 
 250 Vesey Street 
 New York, NY 10080 
 Attention:         Chantal Simon and Stephanie Vallillo 
 Telecopy:         (212) 738-1186 
 New York Life Capital Partners II, L.P.

 51 Madison Avenue 
 Suite 3009 
 New York, NY 10010 
 Attention:         Kevin A. Smith 
 Telecopy:         (212) 576-5591 
  

 8 

 in each case with a copies (which shall not constitute notice to the Preferred Stockholders)
to: 
 Schiff Hardin LLP 
 6600 Sears Tower 
 Chicago, IL 60606-6473 
 Attention:         Andrew Kling, Esq. 
 Telecopy:        (312) 258-5551 
 and 
 Cahill
Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Attention:
        Jonathan Schaffzin, Esq. 
 Telecopy:        (212) 269-5490 
 Any party may, by proper written notice to the other
party, change the individuals or addresses to which such notices shall thereafter be sent. 
 10. Counterparts. This Agreement may be
executed by one or more of the parties on any number of separate counterparts (including by facsimile transmission), each of which shall constitute an original, and all of said counterparts taken together shall be deemed to constitute one and the
same instrument. 
 11. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. 
 12. Integration. This Agreement constitutes the entire agreement of the
parties hereto concerning the subject matter hereof and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties hereto. The parties hereto agree that the terms of this Agreement shall govern and
control in the event, and to the extent, of any inconsistency between the terms of this Agreement and the Junior Loan Agreement or any other document executed in connection therewith. 
 13. Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against any party hereto, whether under any rule of construction or otherwise. On the contrary,
this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 
  

 9 

 14. Amendments in Writing; Cumulative Remedies. 
 (a) None of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed and delivered by the Agent, each Preferred Stockholder, the Junior Lender and the Borrower. 
 (b) The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. No failure to exercise, nor any delay in exercising, on the part of
the Senior Entities, any right, power or privilege hereunder or under any Senior Loan Document shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. 
 15. Successors and Assigns. 
 (a) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors
and assigns to the same extent as if any such successor or assign was an original party hereto, provided that no transfer or assignment by any Junior Lender of any of its rights and/or interests under the Junior Loan Agreement shall be permitted or
effective unless the assignee or transferee becomes a party to this Agreement as a Junior Lender and shall have expressly assumed the obligations of the Junior Lender under this Agreement on terms satisfactory to the Agent and the Required Holders.

 (b) In the event the Senior Obligations are paid in full as a result of a replacement, refinancing or
refunding of the Senior Obligations (or any facility included therein) as contemplated by Section 7 hereof, the lenders under any such new credit facility or facilities shall be entitled (without any action by any party hereto) to succeed to
the benefits of the subordination of the Junior Obligations to the extent afforded to the Senior Entities, as set forth herein. In furtherance thereof, the Junior Lender agrees to execute and deliver an agreement containing terms substantially
identical to those contained herein in favor of any third person who causes the Senior Obligations (or any facility included therein) to be paid in full, whether such successor financing, refinancing or replacement occurs by transfer, assignment,
“takeout”, or any other means or vehicle. Notwithstanding the foregoing, the Senior Entities (or any of them) may transfer and/or assign any of its rights and/or obligations hereunder in conjunction with a transfer and/or assignment of all
or any part of its rights and/or obligations under the Senior Loan Documents or the Purchase Agreement, as the case may be. 
 16. Governing
Law; Jurisdiction. This Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. Each party hereto agrees that all judicial proceedings brought against it arising out of or relating to
this Agreement or its obligations hereunder shall be brought in any state or federal court of competent jurisdiction in the State of New York, County of New York, and accepts generally and unconditionally the nonexclusive jurisdiction and venue of
such courts. 
  

 10 

 17. NO JURY TRIAL. EACH PARTY HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION,
OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER. 
  

 11 

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

			
	BORROWER:
	
	LANGUAGE LINE HOLDINGS II, INC.
		
	By: 	 	 
		 	Name:
		 	Title:

  

			
	JUNIOR LENDER:
	
	CITICORP USA, INC.
		
	By: 	 	 
		 	Name:
		 	Title:

  

			
	AGENT:
	
	MERRILL LYNCH CAPITAL CORPORATION
		
	By: 	 	 
		 	Name:
		 	Title:

			
	PREFERRED STOCKHOLDERS:
	
	ABRY MEZZANINE PARTNERS, L.P.
		
	By:	 	ABRY MEZZANINE INVESTORS, L.P.,
		 	its general partner
		
	By: 	 	ABRY MEZZANINE HOLDINGS LLC
		 	its general partner
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	MERRILL LYNCH CAPITAL CORPORATION
		
	By: 	 	 
		 	Name:
		 	Title:

  

			
	NEW YORK LIFE CAPITAL PARTNERS II, L.P.
		
	By:	 	NYLCAP Manager LLC,
		 	its Investment Manager
		
	By: 	 	 
		 	Name:
		 	Title:

  

 2 

 EXHIBIT E 

 CAPITAL CALL AGREEMENT 
 THIS CAPITAL CALL AGREEMENT (as amended, supplemented or modified from time to time, this “Agreement”), is made as of
June 11, 2004, by ABRY PARTNERS IV, L.P., a Delaware limited partnership (“ABRY”), LANGUAGE LINE HOLDINGS II, INC., a Delaware corporation (“Language Line”), and LANGUAGE LINE HOLDINGS, LLC, a Delaware limited liability
company (“Holdings”; Language Line and Holdings are collectively referred to herein as the “Language Line Entities”), in favor of NEW YORK LIFE CAPITAL PARTNERS II, L.P., ABRY MEZZANINE PARTNERS, L.P. and MERRILL LYNCH CAPITAL
CORPORATION (such Persons sometimes hereinafter are referred to individually as a “Beneficiary” and collectively as the “Beneficiaries”). 
 W I T N E S S E T H 
 WHEREAS, Holdings and the Beneficiaries have entered into
that certain Securities Purchase Agreement of even date herewith (as the same may be amended, modified, restated or otherwise supplemented from time to time, the “Securities Purchase Agreement”); and 
 WHEREAS, it is a condition precedent to the effectiveness of the Securities Purchase Agreement that the parties hereto enter into this
Agreement. 
 NOW, THEREFORE, to induce the Beneficiaries to enter into the Securities Purchase Agreement and for other good and
valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto hereby agree as follows: 
 SECTION 1. Definitions. As used herein, the following terms shall have the following meanings: 
 “Capital Contribution Amount” means, in respect of any Capital Contribution Event, (i) the amount then due and payable with respect to the CitiCorp Loan as a result of the occurrence of such Capital Contribution Event,
less (ii) the sum of (a) all amounts then paid by Language Line to CitiCorp pursuant to any CitiCorp Loan Document and applied to repayment of the CitiCorp Loan (or other amounts due with respect thereto), and (b) all amounts
then paid by ABRY to CitiCorp pursuant to any CitiCorp Loan Document and applied to repayment of the CitCorp Loan (or other amounts due with respect thereto). 
 “Capital Contribution Event” means any of the following: (i) the maturity (whether scheduled, by acceleration
or otherwise) of the CitiCorp Loan, or (ii) any amount becoming due and payable by Language Line in respect of the CitiCorp Loan (other than regularly scheduled payments of interest on the CitiCorp Loan paid with the proceeds of new advances
constituting part of the CitiCorp Loan). 
 “CitiCorp” means CitiCorp USA, Inc., a Delaware
corporation, and its successors and assigns. 

 “CitiCorp Credit Agreement” means that certain Term Loan and Line
of Credit Agreement of even date herewith between Language Line and CitiCorp, as the same may from time to time be amended, amended and restated, supplemented, restated or otherwise modified from time to time. 
 “CitiCorp Loan” means, collectively, the loans made by CitiCorp to Language Line pursuant to the terms of the
CitiCorp Credit Agreement. 
 “CitiCorp Loan Documents” means, collectively, the (i) CitiCorp
Credit Agreement, (ii) the Guaranty, (iii) the other Loan Documents (as defined in the CitiCorp Credit Agreement) and (iv) all other agreements, documents and instruments executed and delivered under the CitiCorp Credit Agreement.

 “Class A Common Unit” has the meaning set forth in the Amended and Restated Limited Liability
Company Agreement of Holdings as in effect on the date of this Agreement. 
 “Equity Investment” means
either (i) a cash capital contribution to Holdings in consideration of which Holdings issues Class A Common Units at the rate of one such Unit for each $1.00 of such capital contribution and the proceeds of which Holdings contributes to
Language Line as a cash common equity capital contribution or (ii) ABRY Subordinated Indebtedness (as defined in the Securities Purchase Agreement) that is convertible into Class A Common Units at the rate of one such Unit for each $1.00
of unpaid principal of, or unpaid accrued interest on, such ABRY Subordinated Indebtedness at the time of such conversion; in each case the proceeds of which are used to repay the CitiCorp Loan (or other amounts due with respect thereto).

 “Guaranty” means the Agreement of Guaranty of even date herewith made by ABRY to and for the benefit
of CitiCorp, as the same may from time to time be amended, amended and restated, supplemented, restated or otherwise modified from time to time. 
 “Remaining Available Capital Commitment” means, as of any date of determination, an amount equal to the aggregate amount of all remaining non-contingent capital contribution commitments of all
of the partners of ABRY to ABRY under its partnership agreement. 
 SECTION 2. Required Capital Contributions. ABRY
absolutely, irrevocably and unconditionally agrees that no later than thirty (30) days after a Capital Contribution Event, ABRY will make, or cause to be made, an Equity Investment in an amount equal to the applicable Capital Contribution
Amount. 
 SECTION 3. Representations and Warranties of ABRY. ABRY represents and warrants that each of the
representations and warranties made by ABRY in the Guaranty is true and correct in all material respects as of the date hereof. 
  

 3 

 SECTION 4. Representations and Warranties of ABRY and the Language Line Entities.
ABRY and each of the Language Line Entities represents and warrants with respect to itself that: 
 (a)
Organization; Power; Qualification. It is duly organized, validly existing and in good standing under the laws of the state of its orginization. 
 (b) Authorization. It has the power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby and has by proper action
duly authorized the execution, delivery and performance of this Agreement. 
 (c) Enforceable Obligations.
This Agreement has been duly executed and delivered by it and constitutes the legal, valid and binding obligation of it, enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditor’s rights generally and by equitable principles relating to enforceability. 
 (d) No Conflicts or Consents. Neither the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated herein, nor performance of and compliance with the terms and provisions hereof will (i) violate or conflict with any provision of its constitutive documents, (ii) violate any requirement of law, or any order,
writ, judgment, injunction, decree or permit applicable to it, (iii) violate, or conflict with or cause an event of default under, any contractual obligation to which it is a party or by which it may be bound or (iv) result in or require
the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its property. 
 (e) Consents. No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or body is required in connection with the execution, delivery or performance of this
Agreement by it. 
 SECTION 5. Certain Covenants. 
 (a) Covenants in the Guaranty. ABRY shall perform, in all material respects, each of the covenants and obligations of
ABRY set forth in the Guaranty. 
 (b) Remaining Available Capital Commitment. ABRY shall
(i) maintain at all times Remaining Available Capital Commitment in an amount that equals or exceeds the aggregate outstanding principal amount of the CitiCorp Loan and all other amounts due with respect thereto, free and clear of all security
interests, liens and other encumbrances (other than those which may exist under the CitiCorp Loan Documents), and (ii) not permit any contractual restriction or consensual encumbrance on its ability to make Equity Investments in accordance with
the terms of this Agreement. 
  

 4 

 SECTION 6. Waivers of Failures; Delays; Etc. No failure or delay on the part of the
Beneficiaries in exercising any right, power or privilege hereunder and no course of dealing among the Beneficiaries, ABRY or the Language Line Entities shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights, powers and remedies herein expressly provided are cumulative and not exclusive of any rights, powers or
remedies which the Beneficiaries would otherwise have. Except as otherwise expressly provided herein, no notice to or demand on ABRY in any case shall entitle ABRY to any other further notice or demand in similar or other circumstances or constitute
a waiver of the rights of the Beneficiaries to any other or further action in any circumstances without notice or demand. 
 SECTION 7. Benefit of Agreement. This Agreement shall be binding upon ABRY, the Language Line Entities and their successors and assigns and shall inure to the benefit of the Beneficiaries and their successors and assigns. Each of
ABRY and each Language Line Entity acknowledges and agrees that this Agreement is made for the benefit of the Beneficiaries and that, during the existence of any failure of ABRY to comply with the terms hereof, the Beneficiaries may enforce all of
the obligations of ABRY hereunder directly against it. ABRY shall not, and the Language Line Entities shall not, assign any of their respective rights or obligations hereunder without the consent of all the Beneficiaries. This Agreement is not being
made for the benefit of any Persons other than those identified above, and no Person other than those identified above shall have any rights hereunder. 
 SECTION 8. Amendments; Waivers. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except with the written consent of ABRY, the Language Line Entities and
the Beneficiaries. 
 SECTION 9. Termination of Agreement; Rescission. 
 (a) This Agreement shall terminate and be of no further force and effect upon the earlier of (i) the date on which
ABRY’s obligations under this Agreement have been satisfied in full, and (ii) the date on which the CitiCorp Loan shall have been repaid in full in cash and the commitments to lend under the CitiCorp Credit Agreement have been terminated.

 (b) To the fullest extent permitted by law, this Agreement shall continue to be effective or shall be
reinstated, as the case may be, if at any time any payment (or part thereof) made or caused to be made by ABRY pursuant to this Agreement, is rescinded or must otherwise be restored or returned by any beneficiary of this Agreement upon the
insolvency, bankruptcy or reorganization of Holdings or Language Line or otherwise, all as though such payment had not been made. 
 SECTION 10. Costs of Enforcement; Indemnity. ABRY and each Language Line Entity jointly and severally agree to pay all reasonable out-of-pocket costs and expenses (including, without limitation, in each case, the reasonable fees and
disbursements of counsel) of each of the Beneficiaries in connection with the enforcement of this Agreement. 
  

 5 

 SECTION 11. Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement and any number of separate counterparts, each of which when so executed, shall be deemed an original and all said counterparts when taken together shall be deemed to constitute but one and the same instrument. 

SECTION 12. Further Assurance. ABRY and each Language Line Entity shall from time to time, as and when requested by the
Beneficiaries, execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements and to take or cause to be taken such further or other action as the Beneficiaries may reasonably deem necessary or desirable in
order to carry out the intent and purposes of this Agreement. 
 SECTION 13. GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT MAY HAVE THE EFFECT OF APPLYING THE LAWS OF ANY OTHER JURISDICTION. 
 SECTION 14. Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Agreement. 
 SECTION 15. Headings. The various headings of this Agreement
are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions hereof. 
 [Signature Pages Follow] 
  

 6 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed and
delivered as of the date first above written. 
  

			
	ABRY PARTNERS IV, L.P.
		
	By:	 	 ABRY Capital Partners, L.P.,
 Its General Partner

	By:	 	 ABRY Capital Partners, LLC,
 Its General Partner

		
	By:	 	 
		 	Name:
		 	Title:

  

			
	LANGUAGE LINE HOLDINGS, LLC
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	LANGUAGE LINE HOLDINGS II, INC.
		
	By:	 	 
		 	Name:
		 	Title:

 The foregoing Agreement is 
 hereby accepted as of the 
 date first above written. 
  

			
	MERRILL LYNCH CAPITAL CORPORATION,
as Beneficiary
		
	By:	 	 
		 	Name:
		 	Title:

  

			
	NEW YORK LIFE CAPITAL PARTNERS II, L.P., as Beneficiary
		
	By:	 	 NYLCAP Manager LLC,
 its
Investment Manager

		
	By:	 	 
		 	Name:
		 	Title:

  

			
	ABRY MEZZANINE PARTNERS, L.P.,
as Beneficiary
		
	By:	 	ABRY MEZZANINE INVESTORS, L.P.,
its general partner
		
	By:	 	ABRY MEZZANINE HOLDINGS LLC
its general partner
		
	By:	 	 
		 	Name:
		 	Title:Senior Secured Credit Agreement

Table of Contents

 Exhibit 10.7 
 EXECUTION VERSION 
  
  
  
 Language Line, LLC and Coto Acquisition LLC, 
 as Borrowers, 
 Language Line Holdings LLC, 
 The Subsidiary Guarantors Party Hereto from Time to Time 
 and 
 The Lenders Party Hereto from Time to Time 
  
  
 $575,000,000 
 SENIOR SECURED CREDIT AGREEMENT 
 dated as of November 4, 2009 
  
  
 Banc of America
Securities LLC, 
 Credit Suisse Securities (USA) LLC 
 and 
 Morgan Stanley Senior Funding, Inc., 
 as Joint Lead Arrangers and Joint Book-Runners 
 Credit Suisse Securities (USA) LLC, 
 as Syndication Agent 
 Morgan Stanley Senior Funding, Inc., 
 as Documentation Agent 
 Bank of America, N.A., 
 as Administrative Agent 
  
  
  
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, New York 10005 

Table of Contents

 TABLE OF CONTENTS 
  

					
	 	  	 	  	 Page

	 SECTION 1.
	  	 DEFINITIONS
	  	2
			
	 1.1.
	  	 Defined Terms
	  	2
	 1.2.
	  	 Rules of Construction
	  	33
			
	 SECTION 2.
	  	 TRANCHE B TERM LOANS; INCREMENTAL LOANS
	  	34
			
	 2.1.
	  	 Tranche B Term Loans; Incremental Loans
	  	34
	 2.2.
	  	 Repayment of Term Loans
	  	36
	 2.3.
	  	 Use of Proceeds
	  	36
			
	 SECTION 3.
	  	 AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENTS
	  	36
			
	 3.1.
	  	 Revolving Credit Commitments
	  	36
	 3.2.
	  	 Commitment Fee
	  	37
	 3.3.
	  	 Proceeds of Revolving Credit Loans
	  	37
	 3.4.
	  	 Swing Line Commitment
	  	37
	 3.5.
	  	 Issuance of Letters of Credit
	  	39
	 3.6.
	  	 Participating Interests
	  	41
	 3.7.
	  	 Procedure for Opening Letters of Credit
	  	41
	 3.8.
	  	 Payments in Respect of Letters of Credit
	  	42
	 3.9.
	  	 Letter of Credit Fees
	  	42
	 3.10.
	  	 Letter of Credit Reserves
	  	43
	 3.11.
	  	 Further Assurances
	  	44
	 3.12.
	  	 Obligations Absolute
	  	44
	 3.13.
	  	 Participations
	  	45
	 3.14.
	  	 Role of Issuing Lender
	  	45
	 3.15.
	  	 Cash Collateral
	  	46
			
	 SECTION 4.
	  	 GENERAL PROVISIONS APPLICABLE TO LOANS
	  	46
			
	 4.1.
	  	 Procedure for Borrowing
	  	46
	 4.2.
	  	 Conversion and Continuation Options
	  	47
	 4.3.
	  	 Changes of Commitment Amounts
	  	47
	 4.4.
	  	 Optional Prepayments
	  	48
	 4.5.
	  	 Mandatory Prepayments
	  	49
	 4.6.
	  	 Repayment of Term Loans
	  	49
	 4.7.
	  	 Application of Prepayments
	  	50
	 4.8.
	  	 Interest Rates and Payment Dates
	  	51
	 4.9.
	  	 Computation of Interest
	  	52
	 4.10.
	  	 Certain Fees
	  	52
	 4.11.
	  	 Inability to Determine Interest Rate
	  	52
	 4.12.
	  	 Pro Rata Treatment and Payments
	  	52
	 4.13.
	  	 Illegality
	  	54
	 4.14.
	  	 Requirements of Law
	  	54

  

 -i- 

Table of Contents

					
	 	  	 	  	 Page

	 4.15.
	  	 Indemnity
	  	58
	 4.16.
	  	 Repayment of Loans; Evidence of Debt
	  	59
	 4.17.
	  	 Replacement of Lenders
	  	60
			
	 SECTION 5.
	  	 REPRESENTATIONS AND WARRANTIES
	  	60
			
	 5.1.
	  	 Financial Statements; Financial Condition
	  	60
	 5.2.
	  	 No Change
	  	61
	 5.3.
	  	 Existence; Compliance with Law
	  	61
	 5.4.
	  	 Power; Authorization
	  	61
	 5.5.
	  	 Enforceable Obligations
	  	62
	 5.6.
	  	 No Legal Bar
	  	62
	 5.7.
	  	 No Material Litigation
	  	62
	 5.8.
	  	 Investment Company Act
	  	62
	 5.9.
	  	 Federal Regulation
	  	62
	 5.10.
	  	 No Default
	  	62
	 5.11.
	  	 Taxes
	  	63
	 5.12.
	  	 Subsidiaries
	  	63
	 5.13.
	  	 Ownership of Property; Liens
	  	63
	 5.14.
	  	 ERISA
	  	64
	 5.15.
	  	 Collateral Documents
	  	64
	 5.16.
	  	 Copyrights, Patents, Permits, Trademarks and Licenses
	  	65
	 5.17.
	  	 Environmental Matters
	  	66
	 5.18.
	  	 Accuracy and Completeness of Information
	  	67
	 5.19.
	  	 Labor Matters
	  	67
	 5.20.
	  	 Solvency
	  	68
	 5.21.
	  	 Use of Proceeds
	  	68
	 5.22.
	  	 Regulation H
	  	68
	 5.23.
	  	 [Reserved]
	  	68
	 5.24.
	  	 [Reserved]
	  	68
	 5.25.
	  	 Capitalization
	  	68
	 5.26.
	  	 Indebtedness
	  	68
	 5.27.
	  	 Anti-Terrorism Laws
	  	69
	 5.28.
	  	 Agreements with Affiliates
	  	69
			
	 SECTION 6.
	  	 CONDITIONS PRECEDENT
	  	70
			
	 6.1.
	  	 Conditions to Initial Loans and Letters of Credit
	  	70
	 6.2.
	  	 Conditions to All Loans and Letters of Credit
	  	73
	 6.3.
	  	 Permitted Acquisitions
	  	74
			
	 SECTION 7.
	  	 AFFIRMATIVE COVENANTS
	  	75
			
	 7.1.
	  	 Financial Statements
	  	75
	 7.2.
	  	 Certificates; Other Information
	  	76
	 7.3.
	  	 Payment of Obligations
	  	77
	 7.4.
	  	 Conduct of Business and Maintenance of Existence
	  	78
	 7.5.
	  	 Maintenance of Property; Insurance
	  	78
	 7.6.
	  	 Inspection of Property; Books and Records; Discussions
	  	80

  

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	 	  	 	  	Page
	 7.7.
	  	 Notices
	  	81
	 7.8.
	  	 Environmental Laws
	  	82
	 7.9.
	  	 Additional Collateral and Guarantees
	  	83
	 7.10.
	  	 Post-Closing Collateral Matters
	  	84
	 7.11.
	  	 Compliance with Law
	  	84
	 7.12.
	  	 Security Interests; Further Assurances
	  	84
	 7.13.
	  	 Required Interest Rate Agreements
	  	85
	 7.14.
	  	 Anti-Terrorism Law
	  	85
	 7.15.
	  	 Embargoed Person
	  	85
	 7.16.
	  	 Anti-Money Laundering
	  	86
	 7.17.
	  	 Payment of Taxes
	  	86
	 7.18.
	  	 Payment of Wages
	  	86
	 7.19.
	  	 Maintenance of Ratings
	  	86
			
	 SECTION 8.
	  	 NEGATIVE COVENANTS
	  	86
			
	 8.1.
	  	 Indebtedness
	  	86
	 8.2.
	  	 Liens
	  	88
	 8.3.
	  	 Contingent Obligations
	  	90
	 8.4.
	  	 Fundamental Changes
	  	91
	 8.5.
	  	 Sale of Assets
	  	92
	 8.6.
	  	 Investments
	  	93
	 8.7.
	  	 [Reserved]
	  	95
	 8.8.
	  	 Hedge Agreements
	  	95
	 8.9.
	  	 Financial Covenants
	  	95
	 8.10.
	  	 Clauses Restricting Subsidiary Distributions
	  	96
	 8.11.
	  	 Dividends
	  	96
	 8.12.
	  	 Transactions with Affiliates
	  	97
	 8.13.
	  	 Changes in Fiscal Year
	  	98
	 8.14.
	  	 Lines of Business
	  	98
	 8.15.
	  	 Prepayments and Amendments of Certain Debt
	  	98
	 8.16.
	  	 Negative Pledges
	  	99
	 8.17.
	  	 Sales and Leasebacks
	  	99
			
	 SECTION 9.
	  	 EVENTS OF DEFAULT
	  	100
			
	 SECTION 10.
	  	 THE AGENTS AND THE ISSUING LENDER
	  	102
			
	 10.1.
	  	 Appointment
	  	102
	 10.2.
	  	 Delegation of Duties
	  	102
	 10.3.
	  	 Exculpatory Provisions
	  	103
	 10.4.
	  	 Reliance by Agents
	  	103
	 10.5.
	  	 Notice of Default
	  	104
	 10.6.
	  	 Non-Reliance on Agents and Other Lenders
	  	104
	 10.7.
	  	 Indemnification
	  	104
	 10.8.
	  	 Agent in Its Individual Capacity
	  	105
	 10.9.
	  	 Successor Administrative Agent
	  	105
	 10.10.
	  	 Issuing Lender as Issuer of Letters of Credit
	  	105
	 10.11.
	  	 Other Agents
	  	106

  

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	 	  	 	  	Page
	 10.12.
	  	 Withholding Tax
	  	106
			
	 SECTION 11.
	  	MISCELLANEOUS	  	106
			
	 11.1.
	  	 Amendments and Waivers
	  	106
	 11.2.
	  	 Notices
	  	109
	 11.3.
	  	 No Waiver; Cumulative Remedies
	  	111
	 11.4.
	  	 Survival of Representations and Warranties
	  	111
	 11.5.
	  	 Payment of Expenses and Taxes; Indemnification
	  	111
	 11.6.
	  	 Successors and Assigns; Participations and Assignments
	  	113
	 11.7.
	  	 Adjustments; Set-off
	  	118
	 11.8.
	  	 Counterparts
	  	119
	 11.9.
	  	 Governing Law; Third Party Rights
	  	119
	 11.10.
	  	 Submission to Jurisdiction; Waivers
	  	119
	 11.11.
	  	 Marshaling; Payments Set Aside
	  	120
	 11.12.
	  	 Interest
	  	120
	 11.13.
	  	 Severability
	  	120
	 11.14.
	  	 Integration
	  	121
	 11.15.
	  	 Acknowledgments
	  	121
	 11.16.
	  	 USA PATRIOT Act
	  	121
	 11.17.
	  	 Release
	  	121
			
	 SECTION 12.
	  	 COLLATERAL ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS
	  	122
			
	 12.1.
	  	 Collateral Account
	  	122
	 12.2.
	  	 Proceeds of Destruction, Taking and Collateral Dispositions
	  	123
	 12.3.
	  	 Application of Proceeds
	  	124

 SCHEDULES 
  

			
	 Schedule I
	  	List of Addresses for Notices; Lending Offices; Commitment Amounts
	 Schedule II
	  	Subsidiary Guarantors
	 Schedule 5.1(a)
	  	Financial Statements
	 Schedule 5.12
	  	Subsidiaries
	 Schedule 5.13
	  	Leased Properties
	 Schedule 5.15(b)
	  	UCC and Other Necessary Filings
	 Schedule 5.25(b)
	  	Organizational Chart
	 Schedule 5.26
	  	Existing Indebtedness
	 Schedule 6.1(d)(i)
	  	UCC, Judgment and Tax Lien Searches
	 Schedule 7.10
	  	Post-Closing Collateral Matters
	 Schedule 8.2(b)
	  	Existing Liens
	 Schedule 8.6
	  	Existing Investments
	 Schedule 8.12
	  	Existing Affiliate Transactions

  

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	EXHIBITS	  	
		
	Exhibit A	  	Form of Revolving Credit Note
	Exhibit B	  	Form of Tranche B Term Note
	Exhibit C	  	Form of Swing Line Note
	Exhibit D	  	Form of Assignment and Acceptance
	Exhibit E	  	Form of Security Agreement
	Exhibit F	  	Form of L/C Participation Certificate
	Exhibit G	  	Form of Mortgage
	Exhibit H	  	Form of Non-Bank Certificate
	Exhibit I-1	  	Form of Subsidiary Guarantee
	Exhibit I-2	  	Form of Parent Guarantee
	Exhibit J	  	Form of Swing Line Loan Participation Certificate
	Exhibit K	  	Form of Landlord Access Agreement
	Exhibit L	  	Form of Opinion of Kirkland & Ellis LLP
	Exhibit M	  	Form of Closing Certificate
	Exhibit N	  	Form of Solvency Certificate
	Exhibit O-1	  	Form of Perfection Certificate
	Exhibit O-2	  	Form of Perfection Certificate Supplement
	Exhibit P	  	Form of Borrowing Request
	Exhibit Q-1	  	Tax Status Certificate for Non-U.S. Lenders that are not Partnerships
	Exhibit Q-2	  	Tax Status Certificate for Non-U.S. Lenders that are Partnerships
	Exhibit Q-3	  	Tax Status Certificate for Non-U.S. Participants that are not Partnerships
	Exhibit Q-4	  	Tax Status Certificate for Non-U.S. Participants that are Partnerships

  

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 CREDIT AGREEMENT, dated as of November 4, 2009 (this “Agreement”),
among Language Line, LLC, a Delaware limited liability company (“Language Line”), Coto Acquisition LLC, a Delaware limited liability company (“Coto” and, together with Language Line, the “Borrowers”
and each a “Borrower”), Language Line Holdings LLC, a Delaware limited liability company (“Holdings”), the subsidiary guarantors listed on the signature pages hereto and otherwise party hereto from time to time (the
“Subsidiary Guarantors” and, together with Holdings, the “Guarantors”), the several lenders party hereto from time to time (the “Lenders”), Banc of America Securities LLC, Credit Suisse Securities
(USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book-runners (together in such capacity, the “Arrangers”), Bank of America, N.A. as administrative agent (in such capacity, the
“Administrative Agent”), Morgan Stanley Senior Funding, Inc. as documentation agent (in such capacity, the “Documentation Agent”) and Credit Suisse Securities (USA) LLC as syndication agent (in such capacity, the
“Syndication Agent”). Except as otherwise expressly provided herein, the obligations of the Borrowers hereunder and under the other Credit Documents are joint and several. 
 W I T N E S S E T H: 
 WHEREAS, Language Line, Inc., Language Line Holdings, Inc., certain subsidiaries of Language Line, Inc., the several lenders from time to time party thereto, Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated and Banc of America Securities LLC as Joint Lead Arrangers and Joint Book-Runners, Bank of America, N.A. as Syndication Agent, National City Bank as Documentation Agent and Merrill Lynch Capital
Corporation as Administrative Agent for the Lenders entered into a credit agreement dated as of June 11, 2004, as amended and restated on November 14, 2006 (collectively, the “Existing Credit Agreement”); 
 WHEREAS, Coto, Coto Holdings LLC, the several lenders from time to time party thereto, Newstar Financial, Inc., as L/C issuer, Newstar
Financial, Inc., as sole lead arranger and Newstar Financial, Inc., as administrative agent for the lenders, entered into a credit agreement dated as of January 10, 2008 (the “Coto Credit Agreement”); 
 WHEREAS, Language Line Services UK Limited, Language Line Services UK II Limited, certain subsidiaries of Language Line Services UK Limited,
ABRY Mezzanine Partners, L.P., as lead arranger and agent for the lenders, the several lenders from time to time party thereto and The Royal Bank of Scotland PLC, as security trustee, entered into a senior facilities agreement dated as of
November 3, 2005, as amended and restated on April 7, 2009 (collectively, the “UK II Mezzanine Facility”); 
 WHEREAS, Language Line Services UK Limited, Language Line Services UK II Limited, certain subsidiaries of Language Line Services UK Limited, The Royal Bank of Scotland PLC, as arranger, agent and security trustee and the several lenders
from time to time party thereto, entered into a senior term and revolving facilities agreement dated as of November 3, 2005, as amended and restated on April 7, 2009 (collectively, the “UK II Credit Facility”); 

WHEREAS, Language Line Holdings, Inc. currently has $108,993,000 aggregate principal amount of its 14-1/8% Senior Discount Notes due 2013
outstanding (the “Senior Discount Notes”); 
 WHEREAS, Language Line, Inc. currently has $165,000,000 aggregate
principal amount of its 11-1/8% Senior Subordinated Notes due 2012 outstanding (the “Senior Subordinated Notes”); 

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 WHEREAS, Coto Holdings LLC currently has $15,000,000 aggregate stated liquidation value of
Coto Preferred Stock issued and outstanding; 
 WHEREAS, the Borrowers have requested that the Lenders extend credit to the
Borrowers in the form of (i) Tranche B Term Loans in an initial aggregate amount of $525,000,000 and (ii) Revolving Credit Commitments in an initial aggregate amount of $50,000,000, in order for the Borrowers to finance the repayment or
redemption of all amounts outstanding under each of the Existing Credit Agreement, the Coto Credit Agreement, the UK II Mezzanine Facility, the UK II Credit Facility, the Senior Discount Notes, the Senior Subordinated Notes and the Coto Preferred
Stock (collectively, the “Refinanc-ing”); 
 WHEREAS, the Lenders have indicated their willingness to
lend on the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, Holdings, the Borrowers, the Subsidiary
Guarantors, the Administrative Agent and the Lenders agree as follows: 
 SECTION 1. DEFINITIONS 
 1.1. Defined Terms. As used in this Agreement, the terms defined in the caption hereto shall have the meanings set forth therein, and
the following terms have the following meanings: 
 “ABRY”: ABRY Partners, LLC, a Delaware limited liability
company, its successors and assigns. 
 “ABRY Preferred Stock”: the Preferred Stock of Holdings issued to ABRY
Partners IV, L.P. in the aggregate stated liquidation value and as in effect on the Closing Date. 
 “Acquisition”: any transaction or series of related transactions (other than the Transactions) for (a) the direct or indirect (i) acquisition of all or substantially all of the Property of a Person, or of any
business or division of a Person or (ii) acquisition of in excess of 50% of the Capital Stock of any Person, or otherwise causing any Person to become a Qualified Subsidiary of such Person, or (b) a merger or consolidation or any other
combination with another Person. 
 “Administrative Agent”: as defined in the preamble hereto. 
 “Affiliate”: of any Person, any Person which, directly or indirectly, is in control of, is controlled by or is under common
control with such Person; provided that for the purpose of subsection 8.12, a Qualified Subsidiary shall not be deemed an Affiliate of any Credit Party. For purposes of this definition, a Person shall be deemed to control another Person if
such Person has the power, direct or indirect, (x) to vote 10% or more of the securities having ordinary voting power for the election of members of the Board of Directors of such other Person, whether by ownership of securities, contract,
proxy or otherwise, or (y) to direct or cause the direction of the management and policies of such other Person, whether by ownership of securities, contract, proxy or otherwise. 
  

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 “Affiliated Debt Funds”: ABRY Advanced Securities Fund, L.P. and any other
Affiliate of ABRY that is (i) a bona fide diversified debt fund and (ii) in the business of investing solely in loans or other debt. 
 “Agents”: the collective reference to the Administrative Agent, the Syndication Agent, the Arrangers, the Documentation Agent and any other agent for the Lenders designated in connection
with the syndication of the Facilities and in accordance with Section 10 by the Administrative Agent with respect to the Credit Documents in a written notice to the Borrowers. 
 “Aggregate Incremental Term Commitment”: at any time, the sum of the amount of all Incremental Facilities consisting of
Incremental Term Commitments (whether or not terminated) at such time, in an initial amount equal to zero, as such amount may be increased pursuant to subsection 2.1(b). 
 “Agreement”: this Senior Secured Credit Agreement, as amended, supplemented or modified from time to time. 
 “Alternate Base Rate”: for any day, a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect
for such day as publicly announced from time to time by the Administrative Agent as its “prime rate”; provided that in no event shall the Alternate Base Rate be less than 3.00% per annum. The “prime rate” is a rate
set by the Administrative Agent based upon various factors including the Administrative Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate announced by the Administrative Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Alternate Base Rate Loans”: Loans at such time as they are made and/or being maintained at a rate of interest based upon
the Alternate Base Rate. 
 “Anti-Terrorism Law”: as defined in subsection 5.27. 
 “Applicable Acquisition Documents”: as defined in subsection 6.3(iii). 
 “Applicable Margin”: for any day with respect to (a) Revolving Credit Loans, 2.50% in the case of Alternate Base Rate
Loans and 3.50% in the case of Eurodollar Loans, (b) Tranche B Term Loans, 2.50% in the case of Alternate Base Rate Loans and 3.50% in the case of Eurodollar Loans, (c) Swing Line Loans, the Applicable Margin then applicable to Revolving
Credit Loans that are maintained as Alternate Base Rate Loans and (d) with respect to Incremental Term Loans that are not Tranche B Term Loans, the Incremental Margin to be added to the Alternate Base Rate or Eurodollar Rate, as the case may
be, as agreed upon by the Borrowers and the Lender or Lenders providing the Incremental Term Commitment relating thereto as provided in subsection 2.1(b)(iii). 
 “Approved Fund”: with respect to any Lender that is a fund or commingled investment vehicle that invests in loans, any other fund that invests in loans and is managed or advised by the
same investment advisor as such Lender or by an Affiliate of such investment advisor. 
 “Arrangers”: as
defined in the preamble hereto. 
  

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 “Asset Sale”: any sale, sale-leaseback, transfer, lease, conveyance or
other disposition by Holdings or any Subsidiary of any of its property or assets, including the Capital Stock of any Subsidiary, including by issuance of Capital Stock, except sales and dispositions permitted by subsections 8.5(a), (b), (c), (d),
(e), (g), (h), (i) and (j). 
 “Assignee”: each Person acquiring Loans and Commitments pursuant to
subsection 11.6(c). 
 “Assignment and Acceptance”: an assignment and acceptance substantially in the form of
Exhibit D hereto. 
 “Assignment Fee”: as defined in subsection 11.6(e). 
 “Available Revolving Credit Commitment”: as to any Lender, at a particular time, an amount equal to (a) the amount of
such Lender’s Revolving Credit Commitment and/or Incremental Revolving Commitment at such time less (b) the sum of (i) the aggregate unpaid principal amount at such time of all Revolving Credit Loans made by such Lender
pursuant to subsection 3.1, (ii) such Lender’s Revolving Credit Commitment Percentage of the aggregate unpaid principal amount at such time of all Swing Line Loans; provided that, for purposes of calculating the Revolving Credit
Commitments pursuant to subsection 3.2, the amount referred to in this clause (ii) shall be zero, (iii) such Lender’s L/C Participating Interest in the aggregate amount available to be drawn at such time under all outstanding Letters
of Credit issued by the Issuing Lender and (iv) such Lender’s Revolving Credit Commitment Percentage of the aggregate outstanding amount of L/C Obligations; collectively, as to all the Lenders, the “Available Revolving Credit
Commitments.” 
 “Bailee Letter”: as defined in the Security Agreement. 
 “Bankruptcy Code”: Title I of the Bankruptcy Reform Act of 1978, as amended and codified at Title 11 of the United States
Code. 
 “Benefited Lender”: as defined in subsection 11.7. 
 “Board”: the Board of Governors of the Federal Reserve System, together with any successor. 
 “Board of Directors”: as for any Person, the board of directors (or similar governing body) of such Person or any duly
authorized committee thereof. 
 “Borrowers”: refers to Language Line, LLC, a Delaware limited liability
company and Coto Acquisition LLC, a Delaware limited liability company. 
 “Borrowing Date”: any Business Day
specified in a notice pursuant to (a) subsection 3.4 or 4.1 as a date on which the Borrowers request the Swing Line Lender or the Lenders to make Loans hereunder or (b) subsection 3.5 as a date on which the Borrowers request the Issuing
Lender to issue a Letter of Credit hereunder. 
  

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 “Business Day”: a day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to close. 
 “Capital Expenditures”: with
respect to any Person, for any period, expenditures resulting in the aggregate gross increase during that period, in the property, plant or equipment reflected in the consolidated balance sheet of such Person and its consolidated Subsidiaries
(including amounts in respect of Financing Leases), in conformity with GAAP, but excluding increases resulting from (i) expenditures made in connection with the replacement, substitution or restoration of property (a) to the extent
financed from insurance proceeds paid on account of the loss of or damage to the property being replaced, substituted or restored, (b) with proceeds or awards on account of any Taking of the property being replaced or (c) with regard to
equipment that is purchased simultaneously with the trade-in of existing equipment, fixed assets or improvements, the credit granted by the seller of such equipment for the trade-in of such equipment, fixed assets or improvements and (ii) any
expenditures made in connection with Permitted Acquisitions. 
 “Capital Stock”: any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a corporation, any and all of the partnership interests, membership interests or equivalent equity securities in a Person (other than a corporation) and any and all
warrants or options to purchase, or securities or instruments convertible into or exchangeable for, any of the foregoing. 
 “Cash Collateral”: as described in subsection 3.15. 
 “Cash Equivalents”: any of the
following types of Investments, to the extent owned by Holdings or any of its Subsidiaries free and clear of all Liens (other than Liens created under the Security Documents and other Liens permitted hereunder): (a) marketable direct
obligations issued by, or unconditionally guaranteed by, the United States government, United Kingdom government or the government of any member state of the European Union or issued by any agency thereof and backed by the full faith and credit of
the United States, in each case maturing within one year from the date of acquisition; provided that the full faith and credit of the United States is pledged in support thereof; (b) insured certificates of deposit, bankers’ acceptances or
time deposits having maturities of six months or less from the date of acquisition issued by (i) any Lender, or any commercial bank organized under the laws of the United States or any state thereof and a member of the Federal Reserve System,
the United Kingdom or any member state of the European Union, in each case having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody’s, or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six months from the date of acquisition; (d) repurchase
obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days, with respect to securities issued or fully guaranteed or insured by the United States
government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such
state, commonwealth or territory by the United Kingdom, by any member state of the European Union or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P or A2 by Moody’s; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying
the requirements of clause (b) of this definition; or (g) shares of money market mutual or similar funds which invest substantially all in assets satisfying the requirements of clauses (a) through (e) of this definition.

  

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 “CERCLA”: as defined in subsection 5.17(f). 
 “CFC”: as defined in the definition of Foreign Subsidiary. 
 “Change in Law”: with respect to any Lender, (i) the adoption of, or change in, any law, treaty, rule, regulation,
policy, guideline or directive (whether or not having the force of law), (ii) the adoption of, or change in, any interpretation or application thereof by any Governmental Authority having jurisdiction over such Lender, or (iii) any
determination of an arbitrator or a court or other Governmental Authority with which such Lender, in the reasonable opinion of its counsel, must comply to avoid censure or penalty, in each case after the later of the Closing Date or the date such
Lender became a Lender. 
 “Change of Control”: shall be considered to have occurred if: 
 (i) at any time: if (A) any Person (other than ABRY, its Controlled Investment Affiliates, Permitted Investors or any
Person acting in the capacity of an underwriter with respect to a distribution of Capital Stock of Holdings (each, a “Permitted Holder” and collectively, the “Permitted Holders”)), whether singly or in concert with
one or more Persons, shall, directly or indirectly, have acquired or acquire the power to vote or direct the voting of 35% or more, on a fully diluted basis, of the outstanding Capital Stock of Holdings (such Person(s), the “Acquiring
Person”) and (B) at such time ABRY and its Controlled Investment Affiliates own, free and clear of all Liens, directly or indirectly, in the aggregate, issued and outstanding Capital Stock of Holdings representing less voting power of
the then outstanding Capital Stock of Holdings held by such Acquiring Person(s); 
 (ii) at any time: if Holdings
shall cease to own, directly or indirectly, 100% of the outstanding Capital Stock of each Borrower; or 
 (iii)
at any time after a Qualified Public Offering: if the Board of Directors of Holdings shall cease to consist of a majority of Continuing Managers. 
 “Citi Loan”: the Term Loan and Line of Credit Agreement entered into by and among Language Line Holdings II, Inc., ABRY Partners IV, L.P., ABRY Capital Partners, L.P. and Citicorp USA,
Inc., dated as of June 10, 2004, as amended as of June 8, 2007, January 10, 2008 and May 2, 2008, in the aggregate principal amount as in effect on the Closing Date, as it may be otherwise amended from time to time in a
manner not materially adverse to the Secured Parties. 
 “Closing Date”: November 4, 2009. 
 “Code”: the United States Internal Revenue Code of 1986, as amended from time to time. 
 “Collateral”: all property and assets of the Credit Parties, now owned or hereafter acquired, upon which a Lien is
purported to be created by any Security Document. 
  

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 “Collateral Account”: the collateral account or sub-account established and
maintained by the Administrative Agent (or a Lender that agrees to be an administrative sub-agent for the Administrative Agent) in its name as Administrative Agent for the benefit of the Secured Parties, in accordance with the provisions of
subsection 12.1. 
 “Commercial L/C”: a commercial documentary Letter of Credit under which the Issuing Lender
agrees to make payments in Dollars for the account of either Borrower, on behalf of Holdings, such Borrower or a Qualified Subsidiary, in respect of obligations of Holdings, such Borrower or such Qualified Subsidiary in connection with the purchase
of goods or services in the ordinary course of business. 
 “Commitment”: as to any Lender at any time, such
Lender’s Swing Line Commitment, Tranche B Term Loan Commitment, Incremental Term Commitment, Revolving Credit Commitment and/or Incremental Revolving Commitment; collectively, as to all the Lenders from time to time, the
“Commitments”. 
 “Commitment Percentage”: as to any Lender at any time, its Tranche B Term
Loan Commitment Percentage, Incremental Term Loan Commitment Percentage or Revolving Credit Commitment Percentage, as the context may require. 
 “Commodities Account”: as defined in the UCC. 
 “Communications Act”: shall mean the Communications Act of 1934, and any similar or successor federal statute, and the rules and regulations of the FCC thereunder, all as the same may be in effect from time to time.

 “Confidential Information Memorandum”: as defined in subsection 5.18. 
 “Consolidated Current Assets”: at any date, all amounts (other than cash and Cash Equivalents) that would, in conformity
with GAAP, be set forth opposite the caption “total current assets” (or any like caption) on a consolidated balance sheet of Holdings and its Subsidiaries at such date, but excluding the current portion of deferred tax assets. 

“Consolidated Current Liabilities”: at any date, all amounts that would, in conformity with GAAP, be set forth opposite
the caption “total current liabilities” (or any like caption) on a consolidated balance sheet of Holdings and its Subsidiaries at such date, but excluding (a) the current portion of any Funded Debt of Holdings and its Subsidiaries,
(b) without duplication of clause (a) above, all Indebtedness consisting of contingent obligations under outstanding Letters of Credit, Revolving Loans or Swingline Loans to the extent otherwise included therein and (c) the current
portion of deferred tax liabilities. 
 “Consolidated EBITDA”: for any period, Consolidated Net Income for such
period, plus, without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) total provision for income tax expense, (b) Consolidated Interest Expense,
(c) depreciation and amortization expense (including non-cash amortization of debt discount or deferred financing costs), (d) all provisions for federal, provincial, state or other domestic and foreign tax expense and taxes,
(e) withholding taxes expensed in such period, (f) any extraordinary expenses or

  

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losses, (g) losses on sales of assets outside of the ordinary course of business, (h) non-cash stock-based compensation expense, (i) costs and expenses in connection with the
Refinancing and the entry into of this Agreement, (j) costs and expenses in connection with an initial public offering of Holdings, regardless of whether such offering is actually consummated, (k) any fees and expenses (or any amortization
thereof) related to Acquisitions or permitted dispositions of assets (including any related severance, retention or relocation expenses), any issuance or repayment of Indebtedness, issuance of equity interests, refinancing transaction or amendment
or modification of any debt instrument (in each case, whether or not consummated), (l) gain or loss from the early extinguishment of Indebtedness or hedging obligations or other derivative instruments, (m) fees paid in connection with
letters of credit and surety bonds and commitment fees and other periodic bank charges, (n) to the extent covered by insurance under which the insurer has been properly notified and has not denied or contested coverage, expenses with respect to
liability or casualty events or business interruption, (o) the amount of any restructuring or reorganization charges, reserves, costs and expenses and (p) any other non-cash charges (including non-cash interest expense), minus
(x) all non-cash income and (y) to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income (except to the extent deducted in determining Consolidated Interest Expense),
(ii) any extraordinary income or gains and (iii) gains on the sales of assets outside of the ordinary course of business, all as determined on a consolidated basis; provided that the cumulative effect of a change in accounting
principles (effected either through cumulative effect adjustment or a retroactive application) shall be excluded. 
 “Consolidated Fixed Charge Coverage Ratio”: for any period, on a Pro Forma Basis, the ratio of (a) Consolidated EBITDA for any four consecutive fiscal quarters ending during such period to (b) the sum of
(i) Consolidated Fixed Charges for such four consecutive fiscal quarters, measured on each date on which financial statements have been or are required to be provided to the Lenders pursuant to subsection 7.1 and (ii) the amount of Capital
Expenditures made by Holdings and its Subsidiaries for the four consecutive fiscal quarters ending on the last day of such period; provided that for purposes of determining compliance on a Pro Forma Basis with respect to an Acquisition,
clauses (b) and (c) of the definition of Consolidated Fixed Charges shall not be included solely in respect of the Person being acquired. 
 “Consolidated Fixed Charges”: for any period, the sum (without duplication) of (a) Consolidated Interest Expense for such period, (b) income taxes and franchise taxes that are
substantially the same as income taxes paid in cash or accrued by Holdings and its Subsidiaries during such period, and (c) scheduled payments made during such period on account of principal of Indebtedness of Holdings or any of its Subsidiaries
(including scheduled principal payments in respect of the Term Loans). Notwithstanding anything to the contrary contained in this definition, (A) for the four fiscal quarters ending December 31, 2009, (i) the amounts described in clause
(a) of this definition shall be deemed to be $29,125,000, (ii) the amounts described in clause (b) of this definition shall be deemed to be those amounts actually paid in cash or accrued and (iii) the amounts described in clause
(c) of this definition shall be deemed to be $5,250,000 and (B) for any period of four fiscal quarters ending after December 31, 2009, but prior to December 31, 2010, (i) in the case of the period ended at the end of the
fiscal quarter ending March 31, 2010, the amounts described in clauses (a) and (c) of this definition shall be deemed to be the amounts for such fiscal quarter multiplied by 4 and the amounts described in clause (b) of this
definition shall be deemed to be those amounts actually paid in cash or accrued for such four fiscal quarters, (ii) in the case of the period ended at the end of the fiscal quarter ending June 30, 2010, the amounts described in clauses
(a) and (c) of this definition shall be deemed to be the amounts for the period of two

  

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fiscal quarters ended at the end of such fiscal quarter multiplied by 2 and the amounts described in clause (b) of this definition shall be deemed to be those amounts actually paid in cash
or accrued for such four fiscal quarters and (iii) in the case of the period ended at the end of the fiscal quarter ending September 30, 2010, the amounts described in clauses (a) and (c) of this definition shall be deemed to be
the amounts for the period of three fiscal quarters ended at the end of such fiscal quarter multiplied by 4/3 and the amounts described in clause (b) of this definition shall be deemed to be those amounts actually paid in cash or accrued for
such four fiscal quarters. 
 “Consolidated Indebtedness”: at any date, the aggregate stated balance sheet
amount of all Indebtedness of Holdings and its Subsidiaries determined on a consolidated basis in accordance with GAAP at such date. 
 “Consolidated Interest Expense”: for any period, total cash interest expense (including that attributable to Financing Leases) of Holdings and its Subsidiaries for such period with respect to all outstanding Indebtedness of
Holdings and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and net costs under Hedge Agreements in respect of interest rates to the extent such net costs are allocable to
such period in accordance with GAAP). 
 “Consolidated Net Income”: for any period, net income (or loss) of
Holdings and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided that (i) the net income (but not net loss) of any Person that is a Non-Qualified Subsidiary or that is accounted for by the equity method
of accounting shall not be included except to the extent paid in cash as a dividend or distribution to Holdings, either Borrower or (subject to clause (ii) below) a Qualified Subsidiary, (ii) the net income of any Qualified Subsidiary
shall be excluded to the extent that the declaration or payment of dividends or similar distributions by that Qualified Subsidiary of that net income is prohibited or not permitted at the date of determination and (iii) the income (or loss) of
any Person accrued prior to the date it becomes a Subsidiary of Holdings or is merged with or into or consolidated with any of Holdings, the Borrowers or the Qualified Subsidiaries shall be excluded. 
 “Consolidated Working Capital”: at any date, the excess of Consolidated Current Assets on such date over Consolidated
Current Liabilities on such date. 
 “Contested Collateral Lien Conditions”: with respect to any Permitted Lien
of the type described in subsections 8.2(c), (d) and (i), the following conditions: 
 (i) any proceeding
instituted contesting such Lien shall conclusively operate to stay the sale or forfeiture of any portion of the Collateral on account of such Lien; 
 (ii) solely to the extent such Lien exceeds $5,000,000, at the option and upon reasonable request of the Administrative Agent, the appropriate Credit Party shall have deposited with the Administrative
Agent a sum sufficient to pay and discharge such Lien and the Administrative Agent’s reasonable estimate of all interest and penalties related thereto; and 
 (iii) such Lien shall in all respects be subject and subordinate in priority to the Lien and security interest created and
evidenced by the Security Documents, except if and to the extent that the law or regulation creating, permitting or authorizing such Lien provides that such Lien is or must be pari passu or superior to the Lien and security interest created and
evidenced by the Security Documents. 
  

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 “Contingent Obligation”: as to any Person, any obligation of such Person
guaranteeing or in effect guaranteeing any Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent, (a) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any
such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (d) otherwise to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an
amount equal to the stated or determinable amount (based on the maximum reasonably anticipated net liability in respect thereof as determined by the Borrowers in good faith) of the primary obligation or portion thereof in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated net liability in respect thereof (assuming such Person is required to perform thereunder) as determined by the Borrowers in good faith. 

“Continuing Managers”: the directors of Holdings on the Closing Date, and each other director, if, in each case, such
other director’s nomination for election to the Board of Directors of Holdings is recommended by at least a majority of the then Continuing Managers or by a nominations committee thereof. 
 “Contractual Obligation”: as to any Person, any provision of any security issued by such Person or of any agreement,
instrument or undertaking to which such Person is a party or by which it or any of the property or assets owned by it are bound. 
 “Control Agreements”: as defined in the Security Agreement. 
 “Controlled Investment
Affiliate”: as to any Person, any other Person which (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such Person and (b) is organized by the former such Person primarily for the
purpose of making equity or debt investments in one or more companies. For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of management and policies of such
Person whether by contract or otherwise. 
 “Coto”: as defined in the preamble hereto. 
 “Coto Credit Agreement”: as defined in the recitals hereto. 
 “Coto Preferred Stock”: the Preferred Stock of Coto Holdings LLC issued to Melanie Coto in the aggregate stated liquidation
value and as in effect on the Closing Date. 
 “Covered Taxes”: all Taxes other than Excluded Taxes.

  

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 “Credit Documents”: this Agreement, the Notes, the Security Agreements, any
Mortgages, the Guarantees, any Incremental Loan Amendment and all other agreements delivered to any Agent and/or any Lender in connection herewith or therewith. 
 “Credit Parties”: the collective reference to the Borrowers and the Guarantors. 
 “Cumulative Credit”: at any date, an amount equal to (x) 50% of the Consolidated Net Income for the period (taken as one accounting period) from January 1, 2010 to the end of
Holdings’ most recently ended fiscal quarter for which financial statements have been actually delivered pursuant to subsection 7.1(a) or (b) (or, in case Consolidated Net Income shall be a deficit, 100% of such deficit), plus
(y) the net proceeds of any issuance of Capital Stock of Holdings or its Subsidiaries not otherwise used to consummate an Acquisition or Capital Expenditure, minus (z) any amounts thereof used to make (a) Investments pursuant
to subsection 8.6(k), (b) Dividend Payments pursuant to subsections 8.11(d), (e) and (g) and (c) payments of Indebtedness pursuant to subsection 8.15, in each case after the Closing Date and prior to such date. 
 “Default”: any of the events specified in Section 9, whether or not any requirement for the giving of notice, the
lapse of time, or both, has been satisfied. 
 “Defaulting Lender”: any Lender that (a) has failed (which
failure has not been cured), or has notified the Administrative Agent and/or the Borrowers that it does not intend, to fund any portion of the Term Loans, Revolving Credit Loans, participations in L/C Obligations or participations in Swing Line
Loans required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has failed (which failure has not been cured) to pay to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when due and such failure continues after notice, unless the subject of a good faith dispute, or (c) (i) has admitted in writing that it is insolvent or
(ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in
any such proceeding or appointment. 
 “Deposit Account”: as defined in the Security Agreement. 
 “Destruction”: any and all damage to, or loss or destruction of, or loss of title to, all or any portion of the Collateral.

 “Dividend Payments”: dividends (in cash, property or obligations) on, or other payments or distributions on
account of, or the setting apart of money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of, any Capital Stock of Holdings, either Borrower or any Qualified Subsidiaries, but excluding
(x) dividends paid through the issuance of additional shares of Capital Stock and (y) any redemption or exchange of any Capital Stock of such Person through the issuance of Capital Stock of such Person, and including any payments of
principal or interest or other amounts in respect of the Citi Loan. 
 “Documentation Agent”: as defined in the
preamble hereto. 
 “Dollars” and “$”: lawful money of the United States. 
  

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 “Domestic Subsidiary”: each Subsidiary of Holdings other than a Foreign
Subsidiary of such Person. 
 “Eligible Assignee”: (a) a Lender; (b) an Affiliate of any Lender;
(c) an Approved Fund of any Lender; or (d) any other Person approved by the Administrative Agent, the Issuing Lender (solely in the case of Revolving Credit Loans or Revolving Credit Commitments) and the Borrowers (such approval not to be
unreasonably withheld or delayed); provided that (x) in the case of clause (d), (i) the Borrowers’ approval is not required during the existence and continuation of a Default or an Event of Default, and (ii) approval by
the Borrowers shall be deemed given if no objection is received by the assigning Lender and the Administrative Agent from the Borrowers within ten Business Days after notice of such proposed assignment has been delivered to the Borrowers; and
(y) neither Borrower nor any Affiliate of either Borrower (other than Affiliated Debt Funds) shall qualify as an Eligible Assignee. 
 “Embargoed Persons”: as defined in subsection 7.15. 
 “Employee Benefit Plan”: an employee benefit plan (as defined in Section 3(3) of ERISA), other than a Multiemployer Plan, that is maintained or contributed to by Holdings or any Subsidiary or, solely with respect to an
employee benefit plan subject to Title IV of ERISA, by any ERISA Entity. 
 “Environmental Laws”: any and all
foreign, federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees or requirements of any Governmental Authority or Requirements of Law (including, without limitation, common law) relating to pollution
or protection of the environment (including, without limitation, pollution or protection of ambient air, soil, subsurface strata, surface water, groundwater and natural resources such as flora, fauna and wetlands) or public or employee health,
including, without limitation, release or threatened release, manufacture, storage, treatment, handling, use, transport or disposal of Hazardous Materials, as of the Closing Date or may at any time hereafter be in effect. 
 “Environmental Permits”: any and all permits, licenses, registrations, notifications, exemptions, variances and any other
authorizations required by any Governmental Authority under or issued pursuant to any Environmental Law. 
 “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “ERISA Entity”: any member of an ERISA Group. 
 “ERISA Event”: (a) any
“reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder, with respect to a Pension Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to
any Pension Plan of a failure to meet the minimum funding standard under Section 412 of the Code or Section 302 of ERISA, whether or not waived, the failure to make by its due date a required installment under Section 412(m) of the
Code with respect to any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (c) the filing pursuant to Section 412(c) of the Code or Section 303(c) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Pension Plan; (d) the incurrence by any ERISA Entity of any liability under Title IV of ERISA with respect to the termination of any Pension Plan; (e) the receipt by any ERISA Entity from the
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terminate any Pension Plan or to appoint a trustee to administer any Pension Plan, or the occurrence of any event or condition that could reasonably be expected to constitute grounds under ERISA
for the termination of or the appointment of a trustee to administer any Pension Plan; (f) the incurrence by any ERISA Entity of any liability with respect to the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan;
(g) the receipt by any ERISA Entity of any notice, or the receipt by any Multiemployer Plan from any ERISA Entity of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in Reorganization, within the meaning of Title IV of ERISA; (h) the making of any amendment to any Pension Plan that could reasonably be expected to result in the imposition of a lien or the posting of a bond or other
security; or (i) the occurrence of a nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA) that could result in material liability to Holdings or any of its Subsidiaries. 

“ERISA Group”: Holdings, any Subsidiary and all corporations and all trades or businesses (whether or not incorporated)
that, together with Holdings or any Subsidiary, are treated as a single employer under Section 414 of the Code. 
 “Eurocurrency Reserve Requirements”: for any day as applied to a Eurodollar Loan, the aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve requirements in effect on such day (including,
without limitation, basic, supplemental, marginal and emergency reserves under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto) dealing with reserve requirements prescribed for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of such Board) maintained by a member bank of the Federal Reserve System. 
 “Eurodollar Base Rate”: with respect to each day during each Interest Period pertaining to a Eurodollar Loan, the rate per annum determined on the basis of the rate for
deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Reuters Page LIBOR01 (or any successor or substitute page of such Reuters service, or if the Reuters service ceases to be
available, any publicly available successor to or substitute for such service providing rate quotations comparable to those currently provided on such page of such service, as reasonably determined by the Administrative Agent from time to time in
consultation with the Borrowers, for purposes of providing quotations of interest rates applicable to deposits in Dollars in the London interbank market) (“Reuters Page LIBOR01”) as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. In the event that such rate does not appear on Reuters Page LIBOR01 (or otherwise on such screen), the “Eurodollar Base Rate” for purposes of this definition shall be determined by reference
to such other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the rate at which the Administrative Agent is offered Dollar
deposits at or about 11:00 A.M., London time, two Business Days prior to the beginning of such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery
on the first day of such Interest Period for the number of days comprised therein. 
 “Eurodollar Lending
Office”: as to any Lender, the office of such Lender which shall be making or maintaining Eurodollar Loans. 
 “Eurodollar Loans”: Loans at such time as they are made and/or being maintained at a rate of interest based upon a Eurodollar Rate. 
  

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 “Eurodollar Rate”: with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined for such day in accordance with the following formula (rounded upward to the nearest 1/100th of 1%): 
  

	
	Eurodollar Base Rate
	1.00 – Eurocurrency Reserve Requirements

 In no event shall the Eurodollar Rate be less than 2.00% per annum. 

“Event of Default”: any of the events specified in Section 9; provided that any requirement for the giving
of notice, the lapse of time, or both, has been satisfied. 
 “Excess Cash Flow”: for any fiscal year of
Holdings, the excess, if any, of: 
 (a) the sum, without duplication, of (i) Consolidated EBITDA for such
fiscal year (provided that, for purposes of this definition, Consolidated EBITDA shall not be calculated on a Pro Forma Basis), (ii) decreases in Consolidated Working Capital for such fiscal year and (iii) interest income received
in cash minus 
 (b) the sum, without duplication, of (i) the aggregate amount actually paid by
Holdings and its Subsidiaries in cash during such fiscal year on account of capital expenditures (other than capital expenditures made with the proceeds of eminent domain or condemnation proceedings to the extent such proceeds are not included in
the determination of Consolidated EBITDA for such fiscal year and capital expenditures funded with the proceeds of the incurrence of Indebtedness, the issuance of Capital Stock or Asset Sales), (ii) the aggregate amount of payments of principal
or liquidation value in respect of any Indebtedness of Holdings and its Subsidiaries during such fiscal year (other than (x) pursuant to subsection 4.5(a), (b) or (c), to the extent the Net Proceeds required to make such payments pursuant
to clauses (b) and (c) do not increase Consolidated EBITDA); (y) payments of principal in respect of any revolving credit facility during such fiscal year to the extent that there is not an equivalent reduction in the commitments in
respect of such facility and (z) any repayment of Indebtedness to the extent made with the proceeds of the incurrence of Indebtedness or the issuance of Capital Stock), (iii) cash interest expense, fees paid in connection with letters of
credit and surety bonds and commitment fees and other periodic bank charges of Holdings and its Subsidiaries, (iv) the amount of Taxes actually paid or to be paid in cash by Holdings and its Subsidiaries for such fiscal year either during such
fiscal year or within a normal payment period (including any valid extensions thereafter), (v) to the extent added to Consolidated Net Income in calculating Consolidated EBITDA for such fiscal year the net cash cost of Interest Rate Agreements,
(vi) the amount of cash actually paid by Holdings and its Subsidiaries in connection with clauses (f), (i), (j), (k) and (o) in the definition of Consolidated EBITDA, (vii) any payments of the Citi Loan and ABRY Preferred Stock
(unless made with the proceeds of the incurrence of Indebtedness or the issuance of Capital Stock), (viii) the amount of Investments constituting Permitted Acquisitions made during such period pursuant to subsection 8.6(g) except to the extent
financed with the proceeds of the incurrence of Indebtedness or the issuance of Capital Stock, (ix) the aggregate amount of expenditures actually made by Holding and its Subsidiaries in cash during such period (including expenditures for the
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payments made in respect of earn-outs, purchase price adjustments and similar contingent payments) to the extent that such expenditures are not expensed during such period, and (x) increases
in Consolidated Working Capital for such fiscal year. 
 “Exchange Act”: the Securities Exchange Act of 1934,
as amended. 
 “Excluded Taxes”: (a) in the case of each Lender and Administrative Agent, taxes (including
franchise taxes) imposed on its net income by (i) the jurisdiction under the laws of which such Lender or Administrative Agent is organized or a resident or (ii) the jurisdiction in which Administrative Agent’s or such Lender’s
principal executive office or applicable lending office is located and (b) in the case of a Lender that is not a United States Person (as defined in Section 7701(a)(30) of the Code), any United States federal withholding tax to the extent
such tax could be imposed under the law in effect on the date such Lender becomes a party to this agreement, except, in the case of an Assignee, to the extent that such Assignee’s assignor was entitled (immediately prior to such assignment) to
gross-up payments or indemnification in respect of such tax under subsection 4.14, provided that this clause (b) shall not apply to any Tax imposed on a Lender in connection with an interest or participation in any Loan or other
obligation that such Lender was required to acquire pursuant to subsection 11.7. 
 “Executive Order
No. 13224”: as defined in subsection 5.27(a). 
 “Executive Orders”: as defined in subsection
7.15. 
 “Existing Credit Agreement”: as defined in the recitals hereto. 
 “Facility”: each of (a) the extensions of credit made hereunder in the form of Tranche B Term Loans (the “Term
B Loan Facility”), (b) the Incremental Facilities that are not a Term B Loan Facility and (c) the Revolving Credit Commitments and any Incremental Revolving Commitments and the extensions of credit made thereunder (together, the
“Revolving Credit Facility”), and “Facilities” means the collective reference to the Term B Loan Facility, any Incremental Facilities that are not a Term Loan B Facility and Incremental Revolving Facility and the
Revolving Credit Facility. 
 “Federal Funds Rate”: for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day;
provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to the Administrative Agent on such day on such
transactions as reasonably determined by the Administrative Agent. 
 “Fee Property”: any real property owned
in fee by Holdings or its Subsidiaries, together with all improvements, fixtures, equipment, personal property, easements and other property and rights appurtenant thereto. 
 “Financing Lease”: (a) any lease of property, real or personal, the obligations under which are capitalized on a
consolidated balance sheet of Holdings, the Borrowers and Holdings’ consolidated Subsidiaries and (b) any other such lease to the extent that the then present value of any rental commitment thereunder should, in accordance with GAAP, be
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 “Flood Insurance Laws”: collectively, (i) the National Flood Insurance
Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue thereto, (iii) the National Flood Insurance Reform Act of 1994
as now or hereafter in effect or any successor statute thereto and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto. 
 “Foreign Subsidiary”: each Subsidiary of Holdings that is either (a) a controlled foreign corporation under
Section 957 of the Code (a “CFC”) or (b) a Subsidiary of a CFC. 
 “Funded Debt”: as to any
Person, all Indebtedness of such Person that matures more than one year from the date of its creation or matures within one year from such date but is renewable or extendible, at the option of such Person, to a date more than one year from such date
or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year from such date, including all current maturities and current sinking fund payments in respect of such
Indebtedness whether or not required to be paid within one year from the date of its creation, and, in the case of the Borrowers, Indebtedness in respect of the Loans. 
 “GAAP”: generally accepted accounting principles in the United States as in effect from time to time, except that for purposes of subsections 8.6(g) and 8.9, GAAP shall be determined on
the basis of such principles in effect on the Closing Date and consistent with those used in the preparation of the most recent audited financial statements referred to in subsection 5.1(a). In the event that any Accounting Change (as defined below)
shall occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this Agreement, then the Borrowers and Administrative Agent agree to enter into negotiations in order to amend such provisions
of this Agreement so as to equitably reflect such Accounting Change with the desired result that the criteria for evaluating Holdings and the Borrowers’ financial condition and results of operations of Holdings and its Subsidiaries shall be the
same after such Accounting Change as if such Accounting Change had not been made. Until such time as such an amendment shall have been executed and delivered by the Borrowers, the Administrative Agent and the Required Lenders, except for purposes of
subsections 5.1(a) and (b) and subsection 7.1, all financial covenants, standards and terms in this Agreement shall continue to be calculated or construed as if such Accounting Change had not occurred. “Accounting Change”
refers to changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable, the
SEC. 
 “Governmental Authority”: any nation or government, any state or other political subdivision thereof or
any entity exercising executive, legislative, judicial, regulatory or administrative functions of government. 
 “Granting Lender”: as defined in subsection 11.6(i). 
 “Guarantees”: the collective
reference to the Parent Guarantee and the Subsidiary Guarantee and any guarantee which may from time to time be executed and delivered by a Subsidiary pursuant to subsection 7.9. 
  

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 “Guarantors”: the collective reference to Holdings and the Subsidiary
Guarantors. 
 “Hazardous Materials”: any pollutants, contaminants, chemicals, materials or wastes,
radioactivity or radiation, hazardous pesticides or hazardous or toxic substances that may give rise to liability, or are subject to regulation, under any Environmental Law, including, without limitation, asbestos, petroleum, any other petroleum
products (including gasoline, crude oil or any fraction thereof), polychlorinated biphenyls and urea-formaldehyde insulation. 
 “Hedge Agreements”: all interest rate swaps, caps or collar agreements or similar arrangements dealing with interest rates or currency exchange rates or the exchange of nominal interest obligations, either generally or
under specific contingencies. 
 “Highest Lawful Rate”: as defined in subsection 11.12. 
 “Holdings”: as defined in the preamble hereto and any successor by merger in connection with an initial public offering of
the Capital Stock of Holdings or other IPO Company; provided that following the IPO, Holdings shall mean the IPO Company. 
 “Incremental Facility”: an aggregation of Incremental Revolving Commitments or Incremental Term Commitments of one or more Lenders that are made available to the Borrowers and become effective on the same date, pursuant to
the same Incremental Loan Amendment and the extensions of credit hereunder in respect of Incremental Revolving Loans and Incremental Term Loans. 
 “Incremental Installment Payment Date”: as defined in subsection 4.6(b). 
 “Incremental Loan”: any Incremental Revolving Loan and/or Incremental Term Loan advanced by a Lender. 
 “Incremental Loan Amendment”: as defined in subsection 2.1(b)(i). 
 “Incremental
Margin”: as defined in subsection 2.1(b)(iii). 
 “Incremental Revolving Commitment”: as defined in
subsection 2.1(b)(iii). 
 “Incremental Revolving Lender”: each Lender that has an Incremental Revolving
Commitment or that is a holder of an Incremental Revolving Loan. 
 “Incremental Revolving Loan”: as defined in
subsection 2.1(b)(i). 
 “Incremental Term Commitment”: as defined in subsection 2.1(b)(iii). 
 “Incremental Term Lender”: each Lender that has an Incremental Term Commitment or that is the holder of an Incremental Term
Loan. 
 “Incremental Term Loan”: as defined in subsection 2.1(a). 
  

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 “Incremental Term Loan Commitment Percentage”: as to any Incremental Term
Lender at any time, the percentage of the Aggregate Incremental Term Commitments that are not in respect of Tranche B Term Loans, then constituted by such Lender’s Incremental Term Loan Commitments that are not in respect of Tranche B Term
Loans (or, after such Incremental Term Loans are made, the percentage of the aggregate outstanding principal amount of the Incremental Term Loans that are not Tranche B Term Loans, then constituted by the principal amount of such Incremental Term
Lender’s Incremental Term Loans that are not in respect of Tranche B Term Loans). 
 “Incremental Term Maturity
Date”: for any Incremental Term Loan the date upon which the final scheduled payment of principal of such Incremental Term Loan shall be due and payable pursuant to the applicable Incremental Loan Amendment, which such date shall in no
event be earlier than the Tranche B Maturity Date. 
 “Incremental Term Note”: as defined in subsection
4.16(e). 
 “Indebtedness”: of any Person at any date, without duplication, 
 (a) all indebtedness of such Person for borrowed money, 
 (b) all obligations of such Person for the deferred purchase price of property or services (other than current trade payables
incurred in the ordinary course of such Person’s business and not more than 180 days overdue), 
 (c) all
obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, 
 (d) all
indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), 
 (e) all obligations under Financing Leases of such
Person and the obligations (including contingent obligations) of such Person under and in respect of synthetic lease transactions under which such Person or any Affiliate of such Person is the lessee, 
 (f) the face amount of all obligations of such Person, contingent or otherwise, as an account party or applicant under or in
respect of acceptances, letters of credit (whether drawn or undrawn), surety bonds or similar arrangements, 
 (g) the liquidation value of all redeemable preferred Capital Stock of such Person that matures or is redeemable prior to the date that is 180 days after the Tranche B Maturity Date, unless the terms of such Capital Stock provide that the
rights of holders to require any such redemption is subject to compliance with subsection 8.11, or is subject to prior repayment of the Obligations in full, 
 (h) all Contingent Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through
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 (i) all obligations of the kind referred to in clauses (a) through
(h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, and 
 (j) for the purposes of subsection 8.1
and subsection 9(e) only, all obligations of such Person in respect of Hedge Agreements. 
 The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor. Notwithstanding anything to the contrary in this definition, Indebtedness shall not include (i) the Citi Loan, (ii) the
ABRY Preferred Stock, (iii) non-cash accruals of interest, (iv) accretion or amortization of original issue discount or (v) pay-in-kind interest. 
 “Indemnitee”: as defined in subsection 11.5(b). 
 “Installment Payment Date”: each Tranche B Installment Payment Date and each Incremental Installment Payment Date. 
 “Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign
laws or otherwise, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom. 
 “Interest Payment Date”: (a) as to
Alternate Base Rate Loans, the last day of each March, June, September and December, commencing on the first such day to occur after any Alternate Base Rate Loans are made or any Eurodollar Loans are converted to Alternate Base Rate Loans,
(b) as to any Eurodollar Loan in respect of which the Borrowers have selected an Interest Period of one, two or three months, the last day of such Interest Period and (c) as to any Eurodollar Loan in respect of which the Borrowers have
selected a longer Interest Period than the periods described in clause (b), the last day of each three calendar month interval during such Interest Period and, in addition, the last day of such Interest Period. 
 “Interest Period”: with respect to any Eurodollar Loan and unless otherwise consented to in writing by the Arrangers,
initially, the period commencing on, as the case may be, the Borrowing Date or conversion date with respect to such Eurodollar Loan and thereafter, each period commencing on the last day of the next preceding Interest Period applicable
to such Eurodollar Loan and in each case ending one, two, three or six months (and, if agreed by all relevant Lenders, nine or twelve months), thereafter as selected by the Borrowers in their notice of borrowing as provided in subsection 4.1 or
their notice of conversion as provided in subsection 4.2, in each case, not less than three Business Days prior to the last day of the then current Interest Period with respect to such Eurodollar Loan; provided that the foregoing provisions
relating to Interest Periods are subject to the following: 
 (A) if any Interest Period would otherwise end on a
day which is not a Business Day, that Interest Period shall be extended to the next succeeding Business Day, unless the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period
shall end on the immediately preceding Business Day; 
  

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 (B) any Interest Period that would otherwise extend beyond (i) in the
case of an Interest Period for a Term Loan, the final Installment Payment Date shall end on such Installment Payment Date or, if such Installment Payment Date shall not be a Business Day, on the next preceding Business Day; and (ii) in the case
of any Interest Period for a Revolving Credit Loan, the Revolving Credit Termination Date shall end on the Revolving Credit Termination Date, or if the Revolving Credit Termination Date shall not be a Business Day, on the next preceding Business
Day; 
 (C) if the Borrowers shall fail to give notice as provided above in clause (y), it shall be deemed to
have selected a conversion of a Eurodollar Loan into an Alternate Base Rate Loan (which conversion shall occur automatically and without need for compliance with the conditions for conversion set forth in subsection 4.2); and 
 (D) any Interest Period that begins on the last day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month. 
 “Interest Rate Agreement”: any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement or arrangement. 
 “Investment”: for any Person: (a) the acquisition (whether for cash, property, services or securities or otherwise) of
equity interests, bonds, notes, debentures or other securities of any other Person; (b) the making of any deposit with, or advance, loan or other extension of credit to, any other Person (including the purchase of property from another Person
subject to an understanding or agreement, contingent or otherwise, to resell such property to such Person); (c) any capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services
for the account or use of others) any other Person; and (d) the entering into, or direct or indirect incurrence, of any Contingent Obligation with respect to Indebtedness or other liability of any other Person. 
 “Investment Election Notice”: as defined in subsection 12.2. 
 “IPO”: as defined in subsection 8.4(d). 
 “IPO Company”: as defined in subsection 8.4(d). 
 “Issuer
Documents”: respect to any Letter of Credit, the L/C Application, and any other document, agreement and instrument entered into by the Issuing Lender and the Borrowers or in favor of the Issuing Lender and relating to such Letter of Credit.

 “Issuing Lender”: collectively, Bank of America, N.A. and any of its Affiliates, in its capacity as issuer
of the Letters of Credit. 
  

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 “Language Line”: as defined in the preamble hereto. 
 “Law”: any statute, law, regulation, ordinance, rule, treaty, judgment, order, decree, permit, concession, franchise,
license, agreement or other governmental restriction of the United States or Canada or any state, province or political subdivision thereof or of any foreign country or any department, province or other political subdivision thereof. 
 “L/C Application”: as defined in subsection 3.5(a). 
 “L/C Obligations”: the obligations of the Borrowers to reimburse the Issuing Lender for any payments made by the Issuing
Lender under any Letter of Credit that have not been reimbursed by the Borrowers pursuant to subsection 3.8(a). For all purposes of this Agreement, if on any date of determination a Standby L/C has expired by its terms but any amount may still be
drawn thereunder by reason of the operation of Rule 3.14 of the International Standby Practices (ISP98) of the International Chamber of Commerce, such Standby L/C shall be deemed to be “outstanding” in the amount so remaining available to
be drawn. 
 “L/C Participating Interest”: an undivided participating interest in the face amount of each
issued and outstanding Letter of Credit and the L/C Application relating thereto. 
 “L/C Participation
Certificate”: a certificate in substantially the form of Exhibit F hereto. 
 “L/C
Sub-Account”: as defined in subsection 12.1(d). 
 “Leased Property”: any land, buildings, structures,
improvements, fixtures or other interest in real property which is used or intended to be used in, or otherwise related to, the operations or the business of the Credit Parties which Holdings or its Subsidiaries holds a leasehold or subleasehold
estate in, or is granted the right to use or occupy, as set forth on Schedule 5.13. 
 “Lenders”: as
defined in the preamble hereto. 
 “Letters of Credit”: the Commercial L/Cs and the Standby L/Cs; individually,
a “Letter of Credit.” 
 “Lien”: any mortgage, deed of trust, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), claim, hypothecation, charge or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation,
any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable law of any jurisdiction in
respect of any of the foregoing). 
 “Loans”: the Swing Line Loans, the Term Loans, and the Revolving Credit
Loans; individually, a “Loan.” 
 “Majority Facility Lenders”: (a) with respect to the
Revolving Credit Facility, the holders of in excess of 50% of the Revolving Credit Commitments and any Incremental Revolving Commitments or, if the Revolving Credit Commitments and Incremental Revolving Commitments have been

  

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terminated in full, the Revolving Credit Exposure, (b) with respect to the Term B Loan Facility, the holders of in excess of 50% of the Tranche B Term Loans then outstanding and
(c) with respect to any Incremental Term Loan that is not a Tranche B Term Loan, the holders of in excess of 50% of such Tranche of Incremental Term Loans then outstanding; provided that the unused Revolving Credit Commitments and any
Incremental Revolving Commitments of, and the portion of the Revolving Credit Exposure, Tranche B Term Loans and Incremental Term Loans, as applicable, held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Majority Facility Lenders. 
 “Material Adverse Effect”: a material adverse effect on
(i) the business, assets, operations, financial condition or results of operations of Holdings and its Subsidiaries, taken as a whole, (ii) the ability of Holdings or any of its Subsidiaries to perform its respective obligations under any
Credit Document, (iii) the rights and remedies of the Lenders under any Credit Document or (iv) the value of the Collateral or the validity, enforceability, perfection or priority of the Liens granted to the Administrative Agent (for its
benefit and for the benefit of the other Secured Parties) on the Collateral pursuant to the Security Documents. 
 “Material Subsidiary”: any Subsidiary that would be a “significant subsidiary” of Holdings within the meaning of Rule 1-02(w) of Regulation S-X under the Securities Act of 1933 (replacing references to 10 per
cent therein with 5 per cent), or any group of Subsidiaries that together would constitute a Material Subsidiary. 
 “Moody’s”: Moody’s Investors Service, Inc. 
 “Mortgaged Property”: any
Real Property covered by a Mortgage delivered pursuant to subsection 7.9(d). 
 “Mortgages”: each of the
mortgages and deeds of trust in respect of Real Property made by any Credit Party in favor of, or for the benefit of, the Administrative Agent for its benefit and for the benefit of the other Secured Parties, substantially in the form of Exhibit
G hereto (with such reasonable changes thereto as shall be advisable under the law of the jurisdiction in which such mortgage or deed of trust is to be recorded and otherwise as shall be reasonably acceptable to the Administrative Agent), as the
same may be amended, supplemented or otherwise modified from time to time. 
 “Multiemployer Plan”: a
multiemployer plan within the meaning of Section 4001(a)(3) of ERISA (i) to which any ERISA Entity is making or accruing an obligation to make contributions or (ii) to which any ERISA Entity has within the preceding five plan years
made contributions. 
 “Net Proceeds”: the aggregate cash proceeds received by Holdings or any of its
Subsidiaries in respect of: 
 (a) any issuance or borrowing of any Indebtedness (including debt securities
convertible into, or exchangeable or exercisable for, Capital Stock) by Holdings or any of its Sub sidiaries; 
 (b) any Asset Sale; provided that (i) so long as no Event of Default then exists, the proceeds of any Asset Sale shall constitute Net Proceeds only to the extent such proceeds are not reinvested in properties or assets owned (or
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Asset Sale was effected by a Credit Party, or (y) Holdings or any of its Subsidiaries, in the event such Asset Sale was effected by any Subsidiary that is not a Credit Party, in each case
within one year from the date of receipt thereof, and (ii) the aggregate outstanding amount of proceeds held by Holdings and its Subsidiaries at any time for reinvestment in respect of any property sold pursuant to this paragraph shall not
exceed $5,000,000; 
 (c) any insurance recoveries in respect of any Destruction or any proceeds or awards in
respect of any Taking; provided that so long as no Event of Default then exists under paragraph (a), (e), (f), (g) or (h) of Section 9, the proceeds of any such insurance recoveries in respect of any Destruction or proceeds or
award of any such Taking shall constitute Net Proceeds only to the extent they are not reinvested in properties or assets owned (or to be owned) by (x) a Credit Party, in the event any asset of a Credit Party was the subject of such Destruction
or Taking, or (y) Holdings or any of its Subsidiaries, in the event that any asset of any Subsidiary that is not a Credit Party was the subject of such Destruction or Taking, in each case within one year from the date of receipt thereof;
provided however that this clause (c) shall not include the proceeds of (i) any business interruption insurance or (ii) general liability or other liability insurance policies; and 
 (d) any cash payments received in respect of promissory notes delivered to Holdings or any of its Subsidiaries in respect of
an Asset Sale delivered to Holdings or such Subsidiary in respect of an Asset Sale; 
 in each case, net of (without duplication) (w) to
the extent such Indebtedness and such Lien are permitted hereunder, the amount required to repay any Indebtedness (other than the Loans) secured by a Lien on any assets of Holdings or any of its Subsidiaries (that are collateral for any such debt
securities or loans) that are sold or otherwise disposed of in connection with such Asset Sale or subject to the applicable Destruction or Taking, (x) the reasonable expenses (including legal fees and brokers’ and underwriters’
commissions, lender fees or credit enhancement fees incurred in effecting the applicable event or events described in clauses (a) through (d) above, (y) any Taxes (including any withholding or distributions in respect of taxes)
reasonably attributable to the applicable event or events described in clauses (a) through (d) above and reasonably estimated by Holdings or its Subsidiaries to be actually payable and (z) in the case of any receipt of proceeds by a
Subsidiary, any amount required to be distributed to the holders of any Capital Stock in the respective Subsidiary other than Holdings, each Borrower or any of its Subsidiaries (or in any other Subsidiary which directly or indirectly holds equity
interests in such Subsidiary). 
 “Non-Bank Certificate”: a certificate substantially in the form of Exhibit
H hereto. 
 “Non-Consenting Lender”: as defined in subsection 11.1. 
 “Non-Extension Notice Date”: as defined in subsection 3.5(b). 
 “Non-Qualified Subsidiary”: each Subsidiary of Holdings that is not a Borrower or a Subsidiary Guarantor or required to
become a Subsidiary Guarantor pursuant to subsection 7.9. 
 “Notes”: the Swing Line Note, the Revolving Credit
Notes and the Term Notes; each of the Notes, a “Note.” 
  

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 “Obligations”: as defined in the Security Agreement. 
 “OFAC”: as defined in subsection 5.27(b)(v). 
 “Officer”: with respect to any corporation, its Chairman of the Board of Directors (if an officer) or its President or one of its Vice Presidents or its Chief Financial Officer or its
Treasurer or any Assistant Treasurer or its Secretary or one of its Assistant Secretaries, and, with respect to any other entity, persons acting in a similar capacity. 
 “Officer’s Certificate”: a certificate of the entity in question executed on its behalf by an Officer of such entity. 
 “OID”: as defined in subsection 2.1(b)(iii). 
 “Other List”: as defined in subsection 7.15. 
 “Other
Taxes”: as defined in subsection 4.14(d)(ii). 
 “Parent Guarantee”: the Parent Guarantee,
substantially in the form of Exhibit I-2 hereto, to be made by any Guarantor other than Guarantors that are Subsidiaries of either Borrower in favor of the Administrative Agent for the benefit of the Secured Parties, as the same may be
amended, modified or supplemented from time to time. 
 “Participants”: as defined in subsection 11.6(b).

 “Participating Lender”: any Revolving Credit Lender (other than the Issuing Lender) with respect to its L/C
Participating Interest in each Letter of Credit. 
 “Patriot Act”: as defined in subsection 11.16. 

“PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any
successor thereto. 
 “Pension Plan”: an employee pension benefit plan (other than a Multiemployer Plan) that
is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code or Section 302 of ERISA and is maintained or contributed to by any ERISA Entity or with respect to which Holdings or any of its
Subsidiaries could incur liability by application of Section 4069 of ERISA. 
 “Permitted Acquisition”: as
defined in subsection 8.6(g). 
 “Permitted Encumbrances”: with respect to any Real Property, the Liens
described in clauses (a), (c), (d), (g), (i), (j), (p) and (q) of subsection 8.2. 
 “Permitted
Investors”: ABRY Partners IV, L.P., ABRY Mezzanine Partners, L.P., ABRY Investment Partnership, L.P., Dennis Dracup, Michael Schmidt and Louis Provenzano. 
  

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 “Permitted Liens”: Liens permitted to exist under subsection 8.2.

 “Permitted Tax Distribution”: with respect to any taxable year (or portion thereof) with respect to which
Holdings is treated a partnership or disregarded entity for U.S. federal, state and/or local income tax purposes, distributions to Holdings’ direct owner(s) to fund the income tax liabilities of such owner(s) (or, if a direct owner is a
pass-through entity, of an indirect owner) for such taxable year (or portion thereof) resulting from Holdings being a partnership or disregarded entity for U.S. federal, state and/or local income tax purposes, in an aggregate amount assumed to equal
the product of (i) the portion of Holdings’ net taxable income for such taxable year (or portion thereof) (either (a) as reported on Holdings’ U.S. federal income tax return (with respect to any taxable year or portion thereof
beginning after the date hereof) or (b) as a result of any audit adjustment after the date hereof (with respect to any taxable year)) reduced by any cumulative net taxable loss with respect to all prior taxable years (or portions thereof)
beginning after the date hereof (determined as if all such periods were one period) to the extent such cumulative net taxable loss is of a character (ordinary or capital) that would permit such loss to be deducted against the income of the taxable
year in question (or portion thereof) and (ii) the highest combined marginal federal and applicable state and/or local income tax rate (taking into account the deductibility of state and local income taxes for U.S. federal income tax purposes
and the character of the taxable income in question (i.e., long term capital gain, qualified dividend income, etc.)) applicable to any such direct or indirect owner of Holdings for the taxable year in question (or portion thereof). 
 “Person”: an individual, partnership, corporation, business trust, joint stock company, limited liability company, trust,
unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 
 “Pro Forma
Basis”: (a) following (i) any Permitted Acquisition or (ii) any sale, transfer, lease or other disposition of assets outside of the ordinary course of business permitted by subsection 8.5 during the relevant periods,
Consolidated EBITDA and Consolidated Interest Expense for the relevant periods shall be calculated only after giving pro forma effect thereto, as if the Permitted Acquisition or sale, transfer, lease or other disposition of assets (and, in each
case, any related incurrence, repayment or assumption of Indebtedness, with any new Indebtedness being deemed to be amortized over the relevant period in accordance with its terms, and assuming that any Revolving Credit Loans borrowed in connection
with such acquisition are repaid with excess cash balances when available) had occurred on the first day of the relevant period for determining Consolidated EBITDA or Consolidated Interest Expense and (b) any pro forma calculations under clause
(a) of this definition may include operating and other expense reductions and other adjustments resulting from any such transaction that is being given pro forma effect to the extent that such operating and other expense reductions and other
adjustments (i) would be permitted to be reflected in pro forma financial information complying with the requirements of GAAP and Article XI of Regulation S-X under the Securities Act of 1933, as amended, as interpreted by the Staff of the SEC;
(ii) were actually implemented by the business that was the subject of any such transaction within 12 months after the date of such transaction and are supportable and quantifiable by the underlying accounting records of such business; or
(iii) relate to the business that is the subject of such transaction and are reasonably determined by Holdings to be probable based on upon specifically identifiable actions to be taken within 12 months after the date of such transaction and,
in each case are certified by an Officer of Holdings (accompanied by reasonably detailed supporting evidence) in a signed certificate of such Officer. 
  

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 “Property”: any right, title or interest in or to property or assets of any
kind whatsoever, whether real, personal or mixed and whether tangible or intangible and including Capital Stock or other ownership interests of any Person. 
 “Proposed Change”: as defined in subsection 11.1. 
 “Purchase Money Indebtedness”: Indebtedness (excluding Financing Leases), incurred for the purpose of financing all or any part of the purchase price of property, plant or equipment used in the business of Holdings, the
Borrowers and the Qualified Subsidiaries or the cost of installation, construction or improvement thereof; provided that (1) the amount of such Indebtedness shall not exceed such purchase price or cost and (2) such Indebtedness
shall be incurred within 120 days after such acquisition of such asset by the Holdings, the Borrowers or any Qualified Subsidiary or such installation, construction or improvement. 
 “Qualified Public Offering”: any public offering of the common (or other voting) Capital Stock of Holdings or its successor
or any of its Subsidiaries (other than any such Subsidiary that is also a Subsidiary of Holdings) pursuant to an effective registration statement (other than a registration statement on Form S-4, S-8 or any successor or similar form) filed under the
Securities Act of 1933, as amended, where the gross proceeds raised are not less than $50,000,000. 
 “Qualified
Subsidiary”: each Subsidiary of Holdings in existence on the Closing Date and any direct or indirect Subsidiary of Holdings formed or acquired after the Closing Date, in each case, other than the Borrowers and Non-Qualified Subsidiaries.

 “Real Property”: the Leased Property and the Fee Property. 
 “Refinance”: to refinance, repay, prepay, replace, renew or refund. 
 “Refinancing”: as defined in the recitals hereto. 
 “Refinancing Indebtedness”: Indebtedness incurred to Refinance other Indebtedness (the “Refinanced
Indebtedness”); provided 
 (i) the principal amount (or accreted value, in the case of
Indebtedness issued at a discount) of the Refinancing Indebtedness does not exceed the principal amount (or accreted value, as the case may be) of the Refinanced Indebtedness plus the amount of accrued and unpaid interest on the Refinanced
Indebtedness, any premium paid to the holders of the Refinanced Indebtedness and reasonable expenses incurred in connection with the incurrence of the Refinancing Indebtedness; 
 (ii) the Refinancing Indebtedness is the obligation of the same Person as that of the Refinanced Indebtedness; 
 (iii) if the Refinanced Indebtedness was subordinated to the Loans, then such Refinancing Indebtedness, by its terms, is
subordinate in right of payment to the Loans, at least to the same extent as the Refinanced Indebtedness; 
  

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 (iv) the Refinancing Indebtedness shall have a maturity that is not earlier
than (x) the maturity of the Indebtedness being Refinanced or (y) the Tranche B Maturity Date; 
 (v)
the Refinancing Indebtedness shall have a longer or equal weighted average life than the Indebtedness being Refinanced; and 
 (vi) the Refinancing Indebtedness is secured only to the extent, if at all, and by the assets, that the Refinanced Indebtedness being repaid or amended is secured. 
 “Refunded Swing Line Loans”: as defined in subsection 3.4(b). 
 “Register”: as defined in subsection 11.6(d). 
 “Regulation U”: Regulation U (12 C.F.R. Part 221) of the Board of Governors of the United States Federal Reserve System (or
any successor), as the same may be modified and supplemented and in effect from time to time. 
 “Regulation
X”: Regulation X (12 C.F.R. Part 224) of the Board of Governors of the United States Federal Reserve System (or any successor), as the same may be modified and supplemented and in effect from time to time. 
 “Reorganization”: with respect to any Multiemployer Plan, the condition that such Multiemployer Plan is in reorganization
as such term is used in Section 4241 of ERISA. 
 “Required Lenders”: at any time, the holders of in
excess of 50% of the sum of (i) the Term Loans then outstanding and (ii) the Revolving Credit Commitments and/or Incremental Revolving Commitments then outstanding or, if the Revolving Credit Commitments and Incremental Revolving
Commitments have been terminated in full, the Revolving Credit Exposure then outstanding. The Term Loans and the Revolving Credit Commitments and/or Incremental Revolving Commitments of any Defaulting Lender shall be disregarded in determining
Required Lenders at any time. 
 “Requirement of Law”: as to any Person, the Articles or Certificate of
Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation, order or determination of an arbitrator or a court or other Governmental Authority, in each case, applicable to or
binding upon such Person or any of its property or to which such Person or any of its property is subject. 
 “Responsible Officer”: with respect to any Person, the president, chief executive officer, the chief operating officer, the chief financial officer, assistant treasurer, controller or any vice president of such Person.

 “Reuters Page LIBOR01”: as defined in the definition of Eurodollar Base Rate. 
 “Revolving Credit Commitment”: as to any Lender, its obligations to (i) make Revolving Credit Loans (other than
Incremental Revolving Loans) to the Borrowers pursuant to subsection 3.1 and (ii) purchase its L/C Participating Interest in any Letter of Credit, in an aggregate amount not to exceed the amount set forth under such Lender’s name in
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Credit Commitment” or in Schedule 1 to the Assignment and Acceptance by which such Lender acquired its Revolving Credit Commitment, as the same may be reduced from time to time
pursuant to subsection 4.3 or 4.5 or adjusted pursuant to subsection 11.6(c); collectively, as to all the Lenders, the “Revolving Credit Commitments.” The aggregate principal amount of the Revolving Credit Commitments on the Closing
Date is $50,000,000. 
 “Revolving Credit Commitment Percentage”: as to any Lender at any time, the percentage
of the aggregate Revolving Credit Commitments and/or any Incremental Revolving Commitments then constituted by such Lender’s Revolving Credit Commitment and/or Incremental Revolving Commitments. 
 “Revolving Credit Commitment Period”: the period from and including the Business Day immediately after the Closing Date to
but not including the Business Day immediately prior to the Revolving Credit Termination Date. 
 “Revolving Credit
Exposure”: the sum of (i) the aggregate unpaid principal amount of the Revolving Credit Loans, (ii) participations in Swing Line Loans, (iii) the aggregate amount available to be drawn at such time under all outstanding
Letters of Credit and (iv) L/C Obligations. 
 “Revolving Credit Facility”: as defined in the definition
of Facility. 
 “Revolving Credit Lender”: any Lender with a Revolving Credit Commitment and/or an Incremental
Revolving Commitment. 
 “Revolving Credit Loan” and “Revolving Credit Loans”: as defined in
subsection 3.1(a). 
 “Revolving Credit Note”: as defined in subsection 4.16(e). 
 “Revolving Credit Termination Date”: the earlier of (a) the fifth anniversary of the Closing Date or, if such date is
not a Business Day, the immediately preceding Business Day and (b) such other earlier date as the Revolving Credit Commitments and any Incremental Revolving Commitments shall terminate hereunder. 
 “Sale and Leaseback Transaction”: any arrangement, directly or indirectly, with any Person whereby it shall sell or
transfer any property used or useful in its business, whether owned as of the Closing Date or thereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as
the property being sold or transferred (it being understood that this definition does not include the sale or transfer of property and the subsequent lease of property with a materially higher fair market value than the property being sold or
transferred and that is used for substantially the same purpose). 
 “SDN List”: as defined in subsection 7.15.

 “SEC”: the Securities and Exchange Commission, any successor thereto and any analogous Governmental
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 “Secured Parties”: the collective reference to the Administrative Agent,
the Lenders and each party to an Interest Rate Agreement relating to the Loans if at the date of entering into such Interest Rate Agreement such Person was a Lender or an Affiliate of a Lender. 
 “Securities Account”: as defined in the UCC. 
 “Security Agreement”: the security agreement dated as of November 4, 2009, substantially in the form of Exhibit E hereto to be entered into by each of the Credit Parties in
favor of the Administrative Agent for its benefit and for the benefit of the other Secured Parties, as the same may be amended, modified or supplemented from time to time. 
 “Security Agreements”: the Security Agreement and any security agreement which may from time to time be executed and
delivered by the Credit Parties pursuant to subsection 7.9. 
 “Security Documents”: the Security Agreements,
any Mortgages, all UCC or other financing statements and other instruments of perfection required by this Agreement, the Security Agreements or the Mortgages to be executed, delivered and/or filed or recorded, and any other documents utilized to
pledge to the Administrative Agent, for its benefit and for the benefit of the other Secured Parties, any other property or assets as collateral for the Obligations. 
 “Senior Discount Notes”: as defined in the recitals hereto. 
 “Senior Subordinated Notes”: as defined in the recitals hereto. 
 “Solvent” and
“Solvency”: when used with respect to any Person, as of any date of determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all
“liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present
fair saleable value of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have,
as of such date, an unreasonably small amount of capital with which to conduct its business, and (d) such Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on
a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured or unsecured, or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured
or unmatured, disputed, undisputed, secured or unsecured. 
 “S&P”: Standard and Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. 
 “SPV”: as defined in subsection 11.6(i). 

“Standby L/C”: an irrevocable letter of credit under which the Issuing Lender agrees to make payments in Dollars for the
account of the Borrowers, on behalf of Holdings, the Borrowers or any Qualified Subsidiary in respect of obligations of Holdings, the Borrowers or such Qualified Subsidiary

  

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incurred pursuant to contracts made or performances undertaken or to be undertaken or like matters relating to contracts to which the Holdings, the Borrowers or such Qualified Subsidiary is or
proposes to become a party in Holdings’, the Borrowers’ or such Qualified Subsidiary’s business, including, without limiting the foregoing, for insurance purposes or in respect of advance payments or as bid or performance bonds or for
any other purpose for which a standby letter of credit might customarily be issued. 
 “Subordinated
Indebtedness”: Indebtedness that is subordinated to other obligations of the issuer or obligor thereof, as the case may be, on terms and conditions and pursuant to the documentation reasonably satisfactory to the Administrative Agent.

 “Subsidiary”: as to any Person, a corporation, partnership, limited liability company or other entity of
which shares of stock of each class or other interests having ordinary voting power (other than stock or other interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, by such Person or by one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such
Person. A Subsidiary shall be deemed wholly owned by a Person who owns directly or indirectly all of the voting shares of stock or other interests of such Subsidiary having voting power under ordinary circumstances to vote for directors or other
managers of such corporation, partnership or other entity, except for directors’ qualifying shares. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of Holdings. 
 “Subsidiary Guarantee”: the Subsidiary Guarantee, substantially in
the form of Exhibit I-1 hereto, to be made by any Guarantor that is a Subsidiary of either Borrower in favor of the Administrative Agent for the ratable benefit of the Lenders, as the same may be amended, modified or supplemented from
time to time. 
 “Subsidiary Guarantor”: each of (1) each Subsidiary of Holdings listed on Schedule
II hereto and (2) each Subsidiary of Holdings which pursuant to subsection 7.9 becomes a party to the Subsidiary Guarantee; provided that no Foreign Subsidiary shall be required to be a Subsidiary Guarantor. 
 “Survey”: a survey of any Mortgaged Property (and all improvements thereon): (i) prepared by a surveyor or engineer
licensed to perform surveys in the state, province or country where such Mortgaged Property is located, (ii) dated as of a date reasonably acceptable to the Administrative Agent, (iii) certified by the surveyor (in a manner reasonably
acceptable to the Administrative Agent) to the Administrative Agent and the Title Company, and (iv) complying in all material respects with the minimum detail requirements of the American Land Title Association as such requirements are in
effect on the date of preparation of such survey; provided, however, that such survey is in a form sufficient for the Title Company to remove all standard survey exceptions from the title insurance policy (or commitment) and issue a survey
and comprehensive endorsement with respect to such Mortgaged Property. 
 “Swing Line Commitment”: the Swing
Line Lender’s obligation to make Swing Line Loans pursuant to subsection 3.4. 
 “Swing Line Lender”: Bank
of America, N.A., in its capacity as lender of the Swing Line Loans. 
  

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 “Swing Line Loan Participation Certificate”: a certificate in substantially
the form of Exhibit J hereto. 
 “Swing Line Loan” and “Swing Line Loans”: as defined
in subsection 3.4(a). 
 “Swing Line Note”: as defined in subsection 4.16(e). 
 “Syndication Agent”: as defined in the preamble hereto. 
 “Taking”: any taking of any assets of Holdings or any Subsidiary or any portion thereof, in or by condemnation or other
eminent domain proceedings pursuant to any Law, general or special, or by reason of the temporary requisition of the use of such assets or any portion thereof, by any Governmental Authority, civil or military. 
 “Taxes”: (i) means any and all present or future taxes, duties, levies, fees, assessments, imposts, deductions,
withholdings or other similar changes imposed by any Governmental Authority (whether domestic or foreign and including any federal, state, United States possession, county, local, provincial or foreign government or any subdivision or taxing agency
thereof), whether computed on a separate, consolidated, unitary, combined or other basis and any and all liabilities (including interest, fines, penalties or additions to tax) with respect to the foregoing, and (ii) any transferee, successor,
joint and several, contractual or other liability (including liability pursuant to Treasury Regulation § 1.1502-6 (or any similar provision of state, local or non-United States law)) in respect of any item described in clause (i). 

“Term B Loan Facility”: as defined in the definition of Facility. 
 “Term Loan” and “Term Loans”: as defined in subsection 2.1(a). 
 “Term Loan Commitments”: collectively, the Tranche B Term Loan Commitments and any Incremental Term Commitment;
individually, a “Term Loan Commitment.” 
 “Term Note”: a Tranche B Term Note or any
Incremental Term Note, as the context shall require, and collectively, the “Term Notes.” 
 “Termination Date”: as defined in subsection 11.17. 
 “Title Company”: such title
insurance company as shall be retained by the Borrowers and reasonably acceptable to the Administrative Agent. 
 “Title
Policy”: a Lender’s title insurance policy paid for by the Borrowers, and issued by the Title Company, together with such endorsements (including, without limitation, “tie-in” or “cluster,” first loss, last dollar,
usury, contiguity, revolving credit, doing business, non-imputation, public road access, survey, variable rate, zoning (provided that with respect to zoning, the Borrowers may, in lieu of such endorsement, deliver a zoning compliance letter
prepared by the appropriate Governmental Authority or a zoning and site requirement summary report prepared by the Planning and Zoning Resource Corporation or other similar service reasonably acceptable to the Administrative Agent) and so-called
comprehensive coverage over covenants and restrictions), coinsurance and reinsurance as may be reasonably

  

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requested by the Administrative Agent, provided that such endorsements are available in a given jurisdiction, in form and substance reasonably acceptable to the Administrative Agent,
insuring the Mortgage as a first Lien on the relevant Mortgaged Property, subject only to Permitted Encumbrances and such other Liens expressly agreed to by the Administrative Agent. 
 “Total Leverage Ratio”: at any date, the ratio, on a Pro Forma Basis, of (a) Consolidated Indebtedness at such date to
(b) Consolidated EBITDA for the most recently completed four fiscal quarters of Holdings for which financial statements have been or are required to be provided to the Lenders pursuant to subsection 7.1. 
 “Tranche”: the Tranche B Term Loans or Incremental Term Loans (that are not Tranche B Term Loans) or the Revolving Credit
Commitment or Incremental Revolving Commitment, as the case may be. 
 “Tranche B Installment Payment Date”: as
defined in subsection 4.6(a). 
 “Tranche B Lender”: each Lender that has a Tranche B Term Loan Commitment or
is the holder of a Tranche B Term Loan. 
 “Tranche B Maturity Date”: the date which is six years after the
Closing Date or, if such date is not a Business Day, the immediately preceding Business Day. 
 “Tranche B Term
Loan”: as defined in subsection 2.1(a). 
 “Tranche B Term Loan Commitment”: as to any Tranche B
Lender, its obligation to make a Tranche B Term Loan to the Borrowers pursuant to subsection 2.1 (a) in an aggregate amount not to exceed the amount set forth under such Lender’s name in Schedule I hereto or in an Incremental Loan
Amendment or in Schedule 1 to the Assignment and Acceptance pursuant to which a Lender acquires its Tranche B Term Loan Commitment, as the same may be adjusted pursuant to subsection 11.6(c); collectively, as to all the Tranche B Lenders, the
“Tranche B Term Loan Commitments.” The aggregate principal amount of the Tranche B Term Loan Commitments on the Closing Date is $525,000,000.00. 
 “Tranche B Term Loan Commitment Percentage”: as to any Tranche B Lender at any time, the percentage of the aggregate Tranche B Term Loan Commitments then constituted by such Lender’s
Tranche B Term Loan Commitment (or, after the Tranche B Term Loans are made, the percentage of the aggregate outstanding principal amount of the Tranche B Term Loans then constituted by the principal amount of such Tranche B Lender’s Tranche B
Term Loan). 
 “Tranche B Term Note”: as defined in subsection 4.16(e). 
 “Transactions”: the execution and delivery of the Credit Documents and the initial extension of credit hereunder, the
Refinancing and the payment of fees and expenses in connection with any of the foregoing. 
 “Transferee”: as
defined in subsection 11.6(f). 
 “Type”: as to any Loan, its nature as an Alternate Base Rate Loan or
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 “UCC”: the Uniform Commercial Code as in effect in the applicable
jurisdiction. 
 “UK GAAP”: the generally accepted accounting practice in the United Kingdom as in effect from
time to time. 
 “UK II Credit Facility”: as defined in the recitals hereto. 
 “UK II Mezzanine Facility”: as defined in the recitals hereto. 
 “Uniform Customs”: the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of
Commerce Publication No.600, and any amendments thereof. 
 “United States”: the United States of America.

 “United States Person”: any Person organized under the laws of the United States or any state thereof or the
District of Columbia. 
 “Withdrawal Liability”: liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part 1 of Subtitle E of Title IV of ERISA. 
 1.2.
Rules of Construction. (a) In this Agreement and each other Credit Document, unless the context clearly requires otherwise (or such other Credit Document clearly provides otherwise), references to (i) the plural include the
singular, the singular the plural and the part the whole; (ii) Persons include their respective permitted successors and assigns or, in the case of governmental Persons, Persons succeeding to the relevant functions of such Persons;
(iii) agreements (including this Agreement), promissory notes and other contractual instruments include subsequent amendments, assignments, and other modifications thereto, but only to the extent such amendments, assignments or other
modifications thereto are not prohibited by their terms or the terms of any Credit Document; (iv) statutes and related regulations include any amendments of same and any successor statutes and regulations; and (v) time shall be a reference
to New York, New York time. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 (b) In this Agreement and each other Credit Document, unless the context clearly requires otherwise (or such other Credit
Document clearly provides otherwise), (i) “amend” shall mean “amend, restate, amend and restate, supplement or modify”; and “amended,” “amending” and “amendment”
shall have meanings correlative to the foregoing; (ii) in the computation of periods of time from a specified date to a later specified date, “from” shall mean “from and including”; “to” and
“until” shall mean “to but excluding”; and “through” shall mean “to and including”; (iii) “hereof,” “herein” and “hereunder” (and similar
terms) in this Agreement or any other Credit Document refer to this Agreement or such other Credit Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Credit Document;
(iv) “including” (and similar terms) shall mean “including without limitation” (and similarly for similar terms); (v) “satisfactory to” the Administrative Agent or the Arrangers shall mean in
form, scope and substance and on terms and conditions satisfactory to the Administrative Agent or the Arrangers, as the case may be; (vi) references to “the date hereof” shall mean the Closing Date;
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permitted in accordance with the terms of such Credit Document, whether express, implied or by operation of any consent, waiver or amendment and (viii) “asset” and
“property” shall have the same meaning and effect and refer to all tangible and intangible assets and property, whether real, personal or mixed and of every type and description. 
 (c) In this Agreement unless the context clearly requires otherwise, any reference to (i) an Annex, Exhibit or Schedule is to an Annex,
Exhibit or Schedule, as the case may be, attached to this Agreement and constituting a part hereof, and (ii) a Section or other subsection is to a Section or such other subsection of this Agreement. 
 (d) Unless otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum
undrawn face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the L/C Application related thereto, whether or not such maximum face amount is in effect at such time. 
 (e) All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, except as otherwise specifically prescribed herein. 
 (f) All financial statements delivered hereunder shall be prepared, and all financial covenants contained herein shall be calculated,
without giving effect to any election under Statement of Financial Accounting Standards 159 (or any similar accounting principle) permitting a Person to value its financial liabilities at the fair value thereof. 
 SECTION 2. TRANCHE B TERM LOANS; INCREMENTAL LOANS 
 2.1. Tranche B Term Loans; Incremental Loans. (a) Subject to the terms and conditions hereof, (i) each Tranche B Lender severally agrees to make a loan in Dollars (individually, a
“Tranche B Term Loan” and collectively, the “Tranche B Term Loans”) to the Borrowers on the Closing Date, in an aggregate principal amount equal to such Lender’s Tranche B Term Loan Commitment, and
(ii) each Lender making an Incremental Term Commitment severally agrees to make a Loan to the Borrowers on the date of an Incremental Loan Amendment therefor, in an aggregate principal amount equal to such Lender’s Incremental Term
Commitment (collectively, the “Incremental Term Loans”; together with the Tranche B Term Loans, the “Term Loans”). 
 (b) (i) So long as no Default or Event of Default has occurred and is continuing, at any time and from time to time on no more than five occasions after the Closing Date, the Borrowers may request
pursuant to the procedure set forth in, and in accordance with the terms of, subsection 2.1(b)(iii), the addition of an Incremental Facility consisting of an increase to the existing Revolving Credit Facility (an “Incremental Revolving
Loan”), or Tranche B Term Loans or a new tranche of Term Loans; provided, however, that the Borrowers may not make a request for any Incremental Facility if after giving effect thereto the sum of all then outstanding Incremental
Revolving Loans, unused Incremental Revolving Commitments, Incremental Term Loans and unused Incremental Term Commitments would exceed the greater of (x) Consolidated EBITDA for the most recently completed four fiscal quarters of Holdings for
which financial statements have been provided to the Lenders pursuant to subsection 7.1and (y) $125,000,000. Each Incremental Facility shall: 
 (A) be in an amount not less that $20,000,000; 
  

 
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 (B) have such pricing as may be agreed by the Borrowers and the Lenders
providing such Incremental Loans pursuant to the provisions of this subsection 2.1(b); and 
 (C) except as
specifically provided in the applicable Incremental Loan Amendment, this subsection (C) and subsection (B) above or in subsection 2.1(b)(iii), have all of the same terms and conditions as the Revolving Credit Loans (if such Incremental
Loans are Incremental Revolving Loans) or the Tranche B Term Loans (if such Incremental Loans are Tranche B Term Loans); provided that the maturity date of the Incremental Term Loans shall in any event be no earlier than the Incremental Term
Maturity Date. 
 In addition, unless otherwise specifically provided in this Agreement, all references in the Credit Documents to Revolving
Credit Loans or Tranche B Term Loans shall be deemed, unless the context otherwise requires, to include references to Incremental Revolving Loans or Incremental Term Loans or Tranche B Term Loans, respectively, made pursuant to this Agreement. No
Lender shall have any obligation to make an Incremental Loan unless and until it commits to do so. Commitments in respect of Incremental Loans shall become Commitments under this Agreement pursuant to (x) an amendment (each, an
“Incremental Loan Amendment”) to this Agreement executed by each Borrower, each Lender or other approved financial institution agreeing to provide such Commitment (and no other Lender shall be required to execute such amendment),
and the Administrative Agent, and (y) any amendments to the other Credit Documents (executed by the relevant Credit Party and the Administrative Agent only) as the Administrative Agent shall reasonably deem appropriate to effect such purpose.
Notwithstanding anything to the contrary contained herein, the effectiveness of such Incremental Loan Amendment shall be subject to the receipt by the Administrative Agent of an Officer’s Certificate of Holdings executed by a Responsible
Officer of Holdings certifying that immediately prior to and after giving effect to the incurrence of the Incremental Facility (A) each of the representations and warranties made by the Credit Parties in or pursuant to the Credit Documents
shall be true and correct in all material respects, (B) Holdings is in compliance with each of the financial covenants contained in subsection 8.9 on a Pro Forma Basis, based on reasonably detailed calculations of Holdings and its Subsidiaries
attached to such certificate which have been prepared on a Pro Forma Basis giving effect to any Borrowing made hereunder on such date and the consummation of any related transaction and (C) no Default or Event of Default shall have occurred and
be continuing or be caused by the incurrence of the Incremental Facility and the consummation of any related transaction. 
 (ii) So long as (x) the Borrowers shall have given the Administrative Agent no less than five Business Days’ prior notice of the Incremental Loan Amendment’s effectiveness and (y) any financial institution not
theretofore a Lender that is providing an Incremental Revolving Commitment and/or an Incremental Term Commitment shall have become a Lender under this Agreement pursuant to an Incremental Loan Amendment, then the Incremental Revolving Commitment
and/or Incremental Term Commitment being requested by the Borrowers shall become effective under this Agreement upon the effectiveness of such Incremental Loan Amendment. Upon such effectiveness, Schedule I hereto shall be deemed amended to
reflect such Commitments. In the event that an Incremental Facility shall have become effective, the Lender or Lenders providing such Incremental Revolving Commitment and/or Incremental Term Commitments shall be deemed to have agreed, severally and
not jointly, upon the terms and subject to the conditions of this Agreement, (A) with respect to Incremental Term Commitments to make an Incremental Term Loan in the amount of the Incremental Term Commitment of such Lender on the

  

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effective date of the applicable Incremental Loan Amendment and (B) with respect to Incremental Revolving Commitments, to make from time to time during the period from the date of the
effectiveness of the applicable Incremental Loan Amendment through the Revolving Credit Termination Date, one or more Incremental Revolving Loans to the Borrowers pursuant to the provisions of subsection 3.1 in an aggregate principal amount not
exceeding at any time the Incremental Revolving Commitment of such Lender at such time. 
 (iii) The Borrowers may solicit
requests from any one or more (x) preexisting Lenders, (y) Eligible Assignees reasonably acceptable to the Administrative Agent or (z) solely with respect to Incremental Term Commitments, Affiliated Debt Funds reasonably acceptable to
the Administrative Agent for the provision of (A) a commitment for an Incremental Revolving Loan (each, an “Incremental Revolving Commitment”) or an Incremental Term Loan (each, an “Incremental Term
Commitment”), as the case may be, and (B) the margins, if any, to be added by such Lenders or other financial institutions to the Alternate Base Rate and the Eurodollar Rate for Loans made under such Incremental Revolving Commitments
or Incremental Term Commitments (any such margin, an “Incremental Margin”); provided that if, pursuant to an Incremental Loan Amendment, the Incremental Margin for such Incremental Loan is in excess of 25 basis points above
the comparable margin set forth in the definition of Applicable Margin applicable to the outstanding Tranche B Term Loans or the Revolving Loans, as applicable, the Applicable Margin for outstanding Tranche B Term Loans or the Revolving Loans, as
applicable, shall automatically be increased, as of the effective date of the applicable Incremental Loan Amendment, to any extent required so that the margin applicable thereto is 25 basis points less than the Incremental Margin for such
Incremental Term Loan without any action or consent of the Borrowers, the Administrative Agent or any Lender; provided, further, that in determining the Incremental Margin and the Applicable Margin, (x) original issue discount
(“OID”) or upfront fees (which shall be deemed to constitute like amounts of OID) payable by the Borrowers to the Lenders in the primary syndication shall be included (with OID being equated to interest based on an assumed four-year
life to maturity) and (y) customary arrangement or commitment fees payable to one or more arrangers (or their affiliates) shall be excluded; provided, further, that if the Eurodollar Rate includes a floor greater than 2.00% or the
Alternate Base Rate includes a floor greater than 3.00%, such increased amount shall be included in the determination of the relevant Incremental Margin for purposes of determining any increase to the Applicable Margin. The Administrative Agent
shall approve any financial institution wishing to provide an Incremental Revolving Commitment, such approval not to be unreasonably withheld or delayed. 
 2.2. Repayment of Term Loans. The Borrowers may repay the Term Loans as provided in subsection 4.4 and shall repay the Term Loans as provided in subsections 4.5 and 4.6. 
 2.3. Use of Proceeds. The proceeds of the Term Loans (other than any Incremental Term Loans) shall be used to finance the Refinancing
and to pay fees, expenses and financing costs in connection therewith. 
 SECTION 3. AMOUNT AND TERMS OF REVOLVING CREDIT
COMMITMENTS 
 3.1. Revolving Credit Commitments. (a) Subject to the terms and conditions hereof, each Revolving
Credit Lender severally agrees to the extent of its Revolving Credit Commitment to extend credit to the Borrowers at any time and from time to time on any Borrowing Date during the Revolving Credit Commitment Period in each case (i) by
purchasing an L/C Participating Interest in each Letter

  

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of Credit issued by the Issuing Lender and (ii) by making loans in Dollars (individually, a “Revolving Credit Loan”; and collectively, the “Revolving Credit
Loans”) to the Borrowers from time to time after the Closing Date. Notwithstanding the preceding sentence, in no event shall any Revolving Credit Loans be made, or Letter of Credit be issued, if the aggregate amount of the Revolving Credit
Loans to be made or Letter of Credit to be issued would, after giving effect to the use of proceeds, if any, thereof, exceed the aggregate Available Revolving Credit Commitments nor shall any Letter of Credit be issued if after giving effect thereto
the sum of the undrawn amount of all outstanding Letters of Credit and the amount of all L/C Obligations would exceed $10,000,000. 
 (b) During the Revolving Credit Commitment Period, the Borrowers may use the Revolving Credit Commitments and any Incremental Revolving Commitments by borrowing, prepaying the Revolving Credit Loans in whole or in part, and reborrowing, all
in accordance with the terms and conditions hereof, and/or by having the Issuing Lender issue Letters of Credit, having such Letters of Credit expire undrawn upon or, if drawn upon, reimbursing the Issuing Lender for such drawing, and having the
Issuing Lender issue new Letters of Credit. 
 (c) Each borrowing of Revolving Credit Loans pursuant to the Revolving Credit
Commitments and any Incremental Revolving Commitments shall be in an aggregate principal amount of the lesser of (i) $500,000 or a whole multiple of $100,000 in excess thereof, in the case of Alternate Base Rate Loans, and $1,000,000 or a whole
multiple of $100,000 in excess thereof, in the case of Eurodollar Loans, and (ii) the Available Revolving Credit Commitments, except (x) that any borrowing of Revolving Credit Loans to be used solely to pay a like amount of Swing Line
Loans may be in the aggregate principal amount of such Swing Line Loans and (y) any borrowing under subsection 3.8(a) shall be in the amount of the applicable Letter of Credit draw. 
 3.2. Commitment Fee. The Borrowers agree to pay to the Administrative Agent for the account of each Lender (other than any Defaulting
Lender) a commitment fee from and including the Closing Date, to but excluding the Revolving Credit Termination Date computed at the rate of 1/2 of 1% per annum on the average daily amount of the Available Revolving Credit Commitment of such
Lender during the period for which payment is made (whether or not the Borrowers shall have satisfied the applicable conditions for borrowing or for the issuance of a Letter of Credit set forth in Section 6). Such commitment fee shall be
payable quarterly in arrears on the last day of each March, June, September and December and on the Revolving Credit Termination Date, commencing on the first such date to occur on or following the Closing Date, in each case for the actual number of
days elapsed over a 365- or 366-day year. 
 3.3. Proceeds of Revolving Credit Loans. The Borrowers shall use the
proceeds of Revolving Credit Loans for Permitted Acquisitions and to provide for the ongoing working capital and general corporate purposes. 
 3.4. Swing Line Commitment. (a) Subject to the terms and conditions hereof, the Swing Line Lender agrees, so long as the Administrative Agent has not received notice that an Event of Default
has occurred and is continuing, to make swing line loans (individually, a “Swing Line Loan”; collectively, the “Swing Line Loans”) to the Borrowers at any time and from time to time during the Revolving Credit
Commitment Period in an aggregate principal amount at any one time outstanding not to exceed $10,000,000; provided that no Swing Line Loan may be made if the aggregate principal amount of the Swing Line Loans to be made would exceed the
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at such time. Amounts borrowed by the Borrowers under this subsection 3.4(a) may be repaid at any time, subject to the limitation stated herein, without prior notice and, through but excluding
the Revolving Credit Termination Date, reborrowed. All Swing Line Loans (i) shall be made as Alternate Base Rate Loans, (ii) may not be converted into Eurodollar Loans and (iii) must be repaid in full within ten Business Days of
making of such Loan or, if sooner, upon the making of any Revolving Credit Loan and shall in any event mature no later than the Revolving Credit Termination Date. The Borrowers shall give the Swing Line Lender irrevocable notice (which notice must
be received by the Swing Line Lender prior to 1:00 p.m.) on the requested Borrowing Date specifying the amount of each requested Swing Line Loan, which shall be in an aggregate minimum amount of $250,000 or a whole multiple of $50,000 in excess
thereof. The Swing Line Lender shall, before 6:00 p.m. on such requested Borrowing Date, make available to the Administrative Agent for the account of the Borrowers in same day funds, the proceeds of such Swing Line Loans. The proceeds of each Swing
Line Loan will be made available by the Swing Line Lender to the Borrowers in immediately available funds to be delivered by wire transfer to the account(s) designated by the Borrowers in the applicable borrowing notice. The proceeds of Swing Line
Loans may be used solely for the purposes referred to in subsection 3.3. 
 (b) The Swing Line Lender at any time in its sole
and absolute discretion may, and on the fifteenth day (or if such day is not a Business Day, the next Business Day) and last Business Day of each calendar month shall, on behalf of the Borrowers (who hereby irrevocably direct the Swing Line Lender
to act on their behalf) request each Revolving Credit Lender, including the Swing Line Lender, to make a Revolving Credit Loan in an amount equal to such Lender’s Revolving Credit Commitment Percentage of the amount of the Swing Line Loans (the
“Refunded Swing Line Loans”) outstanding on the date such notice is given. Unless any of the events described in paragraph (f) of Section 9 shall have occurred and be continuing (in which event the procedures of paragraph
(c) of this subsection 3.4 shall apply), each such Lender shall make the proceeds of its Revolving Credit Loan available to the Swing Line Lender for the account of the Swing Line Lender at the office of the Swing Line Lender specified in
subsection 11.2 (or such other location as the Swing Line Lender may direct) prior to 12:00 noon in funds immediately available on the Business Day next succeeding the date such notice is given. The proceeds of such Revolving Credit Loans shall be
immediately applied to repay the Refunded Swing Line Loans. 
 (c) If, prior to the making of a Revolving Credit Loan pursuant
to paragraph (b) of this subsection 3.4, one of the events described in paragraph (f) of Section 9 shall have occurred and be continuing, each Revolving Credit Lender shall, on the date such Loan was to have been made, purchase an
undivided participating interest in the Refunded Swing Line Loan in an amount equal to its Revolving Credit Commitment Percentage of such Refunded Swing Line Loan. Each such Lender will immediately transfer to the Swing Line Lender in immediately
available funds the amount of its participation, and upon receipt thereof the Swing Line Lender shall deliver to such Lender a Swing Line Loan Participation Certificate dated the date of receipt of such funds and in such amount. 
 (d) Whenever, at any time after the Swing Line Lender has received from any Revolving Credit Lender such Lender’s participating
interest in a Refunded Swing Line Loan, the Swing Line Lender receives any payment on account thereof, the Swing Line Lender shall distribute to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded) in like funds as received; provided that, in the event that such payment received by the Swing Line Lender is required
to be returned, such Lender shall return to the Swing Line Lender any portion thereof previously distributed by the Swing Line Lender to it in like funds as such payment is required to be returned by the Swing Line Lender. 
  

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 (e) The obligation of each Revolving Credit Lender to purchase participating interests
pursuant to subsection 3.4(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right that such Lender may have against the Swing Line
Lender, Holdings, the Borrowers or any other Credit Party or any other Person for any reason whatsoever; (ii) the occurrence or continuance of any Default or Event of Default; (iii) any adverse change in the condition (financial or
otherwise) of the Borrowers; (iv) any breach of this Agreement by Holdings, the Borrowers or any other Credit Party or any other Lender; or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing. 
 (f) Notwithstanding anything to the contrary herein, if at any time a Lender is a Defaulting Lender, before making
any Swing Line Loans, the Swing Line Lender may condition the provision of such Swing Line Loans on its receipt of Cash Collateral pursuant to subsection 3.15 or similar security satisfactory to the Swing Line Lender (in its sole discretion) from
either the Borrowers or such Defaulting Lender in respect of such Defaulting Lender’s risk participation in such Swing Line Loans as set forth below. The Borrowers and/or such Defaulting Lender hereby grant to the Administrative Agent, for the
benefit of the Swing Line Lender, a security interest in all such Cash Collateral and all proceeds of the foregoing. Cash Collateral shall be maintained in one or more blocked deposit accounts at Bank of America, N.A. and may be invested in Cash
Equivalents reasonably acceptable to the Administrative Agent. If at any time the Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent for the
benefit of the Swing Line Lender or that the total amount of such funds is less than the aggregate risk participation of such Defaulting Lender in the relevant Swing Line Loan, the Borrowers and/or such Defaulting Lender will, promptly upon demand
by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate risk participation over (y) the total amount of funds, if any, then
held as Cash Collateral that the Administrative Agent determines to be free and clear of any such right and claim. If the Lender that triggers the Cash Collateral requirement under this paragraph (f) ceases to be a Defaulting Lender (as
determined by the Swing Line Lender in good faith), or if the Swing Line Sublimit has been permanently reduced to zero, the funds held as Cash Collateral shall thereafter be returned to the Borrowers or the Defaulting Lender, whichever provided the
funds for the Cash Collateral. 
 3.5. Issuance of Letters of Credit. (a) Subject to the terms and conditions
hereof, the Issuing Lender agrees, so long as the Administrative Agent has not received notice that an Event of Default has occurred and is continuing, that the Borrowers on behalf of Holdings, the Borrowers or any Qualified Subsidiary may from time
to time request the Issuing Lender to issue a Standby L/C or a Commercial L/C which shall not be in an initial amount of less than $100,000 (unless the Issuing Lender otherwise agrees), by delivering to the Issuing Lender (with a copy to the
Administrative Agent) at its address specified in subsection 11.2 (or such other location as the Issuing Lender may direct) not later than 11:00 a.m. at least two Business Days (or such shorter period and time as the Issuing Lender may agree in its
sole discretion) a letter of credit application in the Issuing Lender’s then customary form (the “L/C Application”) completed to the satisfaction of the Issuing Lender, together with the proposed form of such Letter of Credit
(which shall comply with the applicable requirements of paragraph (b) of this subsection 3.5) and such other certificates, documents and other papers and information as the Issuing Lender may

  

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reasonably request; provided that if the Issuing Lender informs the Borrowers that it is for any reason unable to open such Letter of Credit, the Borrowers may request any Lender to open
such Letter of Credit upon the same terms offered to the Issuing Lender and each reference to the Issuing Lender for purposes of subsections 3.5 through 3.13, 6.1 and 6.2 shall be deemed to be a reference to the Issuing Lender for the purposes of
such Letter of Credit. Each request by the Borrowers on behalf of Holdings, the Borrowers or any Qualified Subsidiary for the amendment or extension of a Letter of Credit shall be deemed to be a representation that such amendment or extension as so
requested complies with the conditions that would otherwise be applicable if such Letter of Credit was being initially issued hereunder. 
 (b) Each Standby L/C and Commercial L/C issued hereunder shall be issued for the account of the Borrowers on behalf of Holdings, the Borrowers or any Qualified Subsidiary and shall, among other things,
(i) be in such form requested by the Borrowers as shall be acceptable to the Issuing Lender in its sole discretion and (ii) have an expiry date occurring not later than (a) 12 months, in the case of a Standby L/C, or (b) 120
days, in the case of a Commercial L/C, after the date of issuance of such Letter of Credit and, in the case of Standby L/Cs, may be automatically renewed on its expiry date for an additional period of at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time
such Letter of Credit is issued, but in no case shall any Letter of Credit have an expiry date occurring later than seven days prior to the Revolving Credit Termination Date. Each L/C Application and each Letter of Credit shall, unless otherwise
expressly agreed by the Issuing Lender and the Borrowers when a Letter of Credit is issued, be subject to the International Standby Practices (ISP 98) of the International Chamber of Commerce (in the case of Standby L/Cs) or the Uniform Customs (in
the case of Commercial L/Cs). 
 (c) The Issuing Lender shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith, and the Issuing Lender shall have all of benefits and immunities (A) provided to the Administrative Agent in Section 10 with respect to any acts taken or omissions suffered by the
Issuing Lender in connection with Letters of Credit issued by it or proposed to be issued by it and documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Section 10 included the
Issuing Lender with respect to such acts or omissions, and (B) as additionally provided herein with respect to the Issuing Lender. 
 (d) Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with
respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum
stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time. 
 (e) Notwithstanding anything to the contrary herein, the Issuing Lender shall not be under any obligation to issue any Letter of Credit if: 
 (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the Issuing Lender from issuing such Letter of Credit, or any Law applicable to the Issuing Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing
Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance of letters of credit generally

  

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or such Letter of Credit in particular or shall impose upon the Issuing Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender
is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Lender in good faith deems
material to it; 
 (ii) the issuance of such Letter of Credit would violate one or more policies of the Issuing
Lender applicable to letters of credit generally; or 
 (iii) any Lender is at such time a Defaulting Lender,
unless the Issuing Lender has received Cash Collateral pursuant to subsection 3.15 or similar security satisfactory to the Issuing Lender (in its sole discretion) from either the Borrowers or such Defaulting Lender in respect of such Defaulting
Lender’s obligation to fund under subsection 3.8. The Borrowers and/or such Defaulting Lender hereby grant to the Administrative Agent, for the benefit of the Issuing Lender, a security interest in all such Cash Collateral and all proceeds of
the foregoing. Cash Collateral shall be maintained in one or more blocked deposit accounts at Bank of America, N.A. and may be invested in Cash Equivalents reasonably acceptable to the Administrative Agent. If at any time the Administrative Agent
determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent for the benefit of the Issuing Lender or that the total amount of such funds is less than the aggregate L/C
Obligations in respect of such Defaulting Lender, the Borrowers will, promptly upon demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of
(x) such aggregate L/C Obligations over (y) the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent determines to be free and clear of any such right and claim. Upon the drawing of any Letter of Credit
for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to reimburse the Issuing Lender. If the Lender that triggers the Cash Collateral requirement under this paragraph (e)(iii)
ceases to be a Defaulting Lender (as determined by the Issuing Lender in good faith), or if there are no L/C Obligations outstanding, the funds held as Cash Collateral shall thereafter be returned to the Borrowers or the Defaulting Lender, whichever
provided the funds for the Cash Collateral. 
 3.6. Participating Interests. Effective in the case of each Standby L/C
and Commercial L/C (if applicable) as of the date of the opening thereof, the Issuing Lender agrees to allot and does allot, to itself and each other Revolving Credit Lender, and each such Lender severally and irrevocably agrees to take and does
take in such Letter of Credit, an L/C Participating Interest in a percentage equal to such Lender’s Revolving Credit Commitment Percentage. 
 3.7. Procedure for Opening Letters of Credit. Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrowers on behalf of Holdings, the Borrowers or any
Qualified Subsidiaries delivered to the Issuing Lender (with a copy to the Administrative Agent) in the form of a L/C Application. Promptly after receipt of any L/C Application, the Issuing Lender will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of such L/C Application from the Borrowers and, if not, the Issuing Lender will provide the Administrative Agent with a copy thereof. Unless the Issuing Lender has received
written notice from the Administrative Agent or the Borrowers at least one business day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained herein

  

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have not been satisfied, then, subject to the terms and conditions hereof, the Issuing Lender shall, on the requested date, issue a Letter of Credit for the account of the Borrowers on behalf of
Holdings, the Borrowers or any Qualified Subsidiaries or enter into the applicable amendment, as the case may be, in each case in accordance with the Issuing Lender’s usual and customary business practices. 
 3.8. Payments in Respect of Letters of Credit. (a) The Borrowers agree forthwith upon demand by the Issuing Lender, (i) to
reimburse the Issuing Lender through the Administrative Agent for any payment made by the Issuing Lender under any Letter of Credit issued for the account of the Borrowers and (ii) to pay interest on any unreimbursed portion of any such payment
from the date of such payment until reimbursement in full thereof at a rate per annum equal to (x) on or prior to the date which is one Business Day after the day on which the Issuing Lender demands reimbursement from the
Borrowers for such payment, the Alternate Base Rate plus the Applicable Margin for the Revolving Credit Loans and (y) thereafter, the Alternate Base Rate plus the Applicable Margin for the Revolving Credit Loans plus 2%. Each drawing under any
Letter of Credit shall (unless an event of the type described in paragraph (f) of Section 9 shall have occurred and be continuing, in which case the procedures specified in this subsection 3.8 for payments in respect of Letters of Credit
shall apply) constitute a request by the Borrowers to the Administrative Agent for a borrowing pursuant to subsection 3.1 (a) of Alternate Base Rate Loans (or, at the option of the Administrative Agent and the Swing Line Lender in their sole
discretion, a borrowing pursuant to subsection 3.4 of Swing Line Loans) in the amount of such drawing. The Borrowing Date with respect to such borrowing shall be the date of payment of the relevant drawing. 
 (b) In the event that the Issuing Lender makes a payment under any Letter of Credit and is not reimbursed in full pursuant to subsection
3.8(a) and within the time set forth in subsection 3.8(a), the Administrative Agent will promptly notify each other Revolving Credit Lender. Not later than 1:00 p.m. on the Business Day specified in such notice, each such other Lender will transfer
to the Issuing Lender, though the Administrative Agent in immediately available funds, an amount equal to such other Lender’s pro rata share (based on its Revolving Credit Commitment and/or any Incremental Revolving Commitment) of
the L/C Obligation arising from such unreimbursed payment. Promptly, upon its receipt from such other Lender of such amount, the Administrative Agent will complete, execute and deliver to such other Lender an L/C Participation Certificate dated the
date of such receipt and in such amount. Until each Revolving Credit Lender transfers its pro rata share of the L/C Obligation, interest in respect of such Revolving Credit Lender’s pro rata share of such amount
shall be solely for the account of the Issuing Lender. 
 (c) Whenever, at any time after the Issuing Lender has made a payment
under any Letter of Credit and has received from any other Revolving Credit Lender such other Lender’s pro rata share of the L/C Obligation arising therefrom, the Issuing Lender receives any reimbursement on account of such L/C
Obligation or any payment of interest on account thereof, the Administrative Agent will promptly distribute to such other Lender its pro rata share thereof in like funds as received; provided that in the event that the receipt
by the Issuing Lender from the Borrowers of such reimbursement or such payment of interest (as the case may be) is required to be returned, such other Lender will remit to the Issuing Lender through the Administrative Agent. 
 3.9. Letter of Credit Fees. (a) In lieu of any letter of credit commissions and fees provided for in any L/C Application
relating to Standby L/Cs or Commercial L/Cs (other than standard issuance, amendment and negotiation fees), the Borrowers agree to pay the Administrative Agent, (i) for

  

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the account of the Issuing Lender and the Participating Lenders, with respect to each Standby L/C or Commercial L/C issued for the account of the Borrowers, a Standby L/C or Commercial L/C fee,
as the case may be, equal to the Applicable Margin for Revolving Credit Loans which are Eurodollar Loans per annum; (ii) in addition to the Standby L/C or Commercial L/C fee referred to in the preceding clause (i), for the account
of the Issuing Lender and not on account of its L/C Participating Interest therein, 0.25% per annum, each on the daily amount available to be drawn under each Standby L/C and Commercial L/C, in either case, payable, in arrears, on
the first business day following the last day of each March, June, September and December and on the Revolving Credit Termination Date and (iii) the Borrowers shall pay directly to the Issuing Lender for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and charges, of the Issuing Lender relating to Letters of Credit as from time to time in effect. The Administrative Agent will disburse any Standby L/C or Commercial L/C
fees received pursuant to subsection 3.9(a)(i) to the respective Lenders promptly following the receipt of any such fees. 
 (b)
For purposes of any payment of fees required pursuant to this subsection 3.9, the Administrative Agent (in consultation with the Issuing Lender) agrees to provide to the Borrowers a statement of any such fees to be so paid; provided that the
failure by the Administrative Agent to provide the Borrowers with any such invoice (or any error in any such invoice) shall not relieve the Borrowers of their obligation to pay such fees. 
 3.10. Letter of Credit Reserves. (a) If any Change in Law shall either (i) impose, modify, deem or make applicable any
reserve, special deposit, assessment or similar requirement against letters of credit issued by the Issuing Lender or (ii) impose on the Issuing Lender any other condition regarding this Agreement (with respect to Letters of Credit) or any
Letter of Credit, and the result of any event referred to in clause (i) or (ii) above shall be to increase the cost of the Issuing Lender of issuing or maintaining any Letter of Credit (which increase in cost shall be the result of the
Issuing Lender’s reasonable allocation of the aggregate of such cost increases resulting from such events), then, promptly upon, but in any event within one Business Day of, demand by the Issuing Lender, the Borrowers shall pay to the Issuing
Lender, from time to time as specified by the Issuing Lender, additional amounts which shall be sufficient to compensate the Issuing Lender for such increased cost, together with interest on each such amount from the date demanded until payment in
full thereof at a rate per annum equal to the rate applicable to Alternate Base Rate Loans pursuant to subsection 4.8(b). The Borrowers shall not be required to make any payments to the Issuing Lender for any additional amounts
pursuant to this subsection 3.10(a) unless the Issuing Lender has given written notice to the Borrowers of its intent to request such payments prior to or within 60 days after the date on which the Issuing Lender became entitled to claim such
amounts. A certificate, setting forth in reasonable detail the calculation of the amounts involved, submitted by the Issuing Lender to the Borrowers concurrently with any such demand by the Issuing Lender, shall be conclusive, absent manifest error,
as to the amount thereof. 
 (b) In the event that any Change in Law with respect to the Issuing Lender shall, in the reasonable
opinion of the Issuing Lender, require that any obligation under any Letter of Credit be treated as an asset or otherwise be included for purposes of calculating the appropriate amount of capital to be maintained by the Issuing Lender or any
corporation controlling the Issuing Lender, and such Change in Law shall have the effect of reducing the rate of return on the Issuing Lender’s or such corporation’s capital, as the case may be, as a consequence of the Issuing
Lender’s obligations under such Letter of Credit to a level below that which the Issuing Lender or such corporation, as the case may be, could

  

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have achieved but for such Change in Law (taking into account the Issuing Lender’s or such corporation’s policies, as the case may be, with respect to capital adequacy) by an amount
reasonably deemed by the Issuing Lender to be material, then from time to time following notice by the Issuing Lender to the Borrowers of such Change in Law, within 15 days after demand by the Issuing Lender, the Borrowers shall pay to the Issuing
Lender such additional amount or amounts as will compensate the Issuing Lender or such corporation, as the case may be, for such reduction. The Issuing Lender agrees that, upon the occurrence of any event giving rise to the operation of paragraph
(a) or (b) of this subsection 3.10 with respect to the Issuing Lender, it will, if requested by the Borrowers and to the extent permitted by law or by the relevant Governmental Authority, endeavor in good faith to avoid or minimize the
increase in costs or reduction in payments resulting from such event; provided that such avoidance or minimization can be made in such a manner that the Issuing Lender, in its sole determination, suffers no economic, legal or regulatory
disadvantage. The Borrowers shall not be required to make any payments to the Issuing Lender for any additional amounts pursuant to this subsection 3.10(b) unless the Issuing Lender has given written notice to the Borrowers of its intent to request
such payments prior to or within 60 days after the date on which the Issuing Lender became entitled to claim such amounts. A certificate, in reasonable detail setting forth the calculation of the amounts involved, submitted by the Issuing Lender to
the Borrowers concurrently with any such demand by the Issuing Lender, shall be conclusive, absent manifest error, as to the amount thereof. 
 (c) Each Borrower and each Participating Lender agree that the provisions of the foregoing paragraphs (a) and (b) shall apply equally to each Participating Lender in respect of its L/C
Participating Interest in such Letter of Credit, as if the references in such paragraphs and provisions referred to, where applicable, such Participating Lender or, in the case of paragraph (b), any corporation controlling such Participating Lender.

 3.11. Further Assurances. Each Borrower hereby agrees, from time to time, to do and perform any and all acts and to
execute any and all further instruments reasonably requested by the Issuing Lender to more fully effect the purposes of this Agreement and the issuance of Letters of Credit hereunder. 
 3.12. Obligations Absolute. The payment obligations of the Borrowers under this Agreement with respect to the Letters of Credit shall
be unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following: 
 (i) the existence of any set-off, counterclaim, recoupment, defense or other right that Holdings, either Borrower or any of
the Qualified Subsidiaries may have at any time against any beneficiary, or any transferee, of any Letter of Credit (or any Persons for whom any such beneficiary or any such transferee may be acting), the Issuing Lender, the Administrative Agent or
any Lender, or any other Person, whether in connection with this Agreement, any Credit Document, the transactions contemplated herein, or any unrelated transaction; 
 (ii) any statement or any other document presented under any Letter of Credit proving to be forged, fraudulent or invalid or
any statement therein being untrue or inaccurate in any respect, except arising from the gross negligence or willful misconduct on the part of the Issuing Lender; 
  

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 (iii) payment by the Issuing Lender under any Letter of Credit against
presentation of a draft or certificate or other document which does not comply with the terms of such Letter of Credit or is insufficient in any respect, except where such payment constitutes gross negligence or willful misconduct on the part of the
Issuing Lender; or 
 (iv) any other circumstances or happening whatsoever, whether or not similar to any of the
foregoing, except for any such circumstances or happening constituting gross negligence or willful misconduct on the part of the Issuing Lender. 
 The Borrowers shall promptly examine a copy of each Letter of Credit that is delivered to it and, in the event of any claim of noncompliance with the Borrowers’ instructions or other irregularity,
the Borrowers will promptly, but in any event within one Business Day, notify the Issuing Lender. The Borrowers shall be conclusively deemed to have waived any such claim against the Issuing Lender and its correspondents unless such notice is given
as aforesaid. 
 3.13. Participations. The obligation of each Revolving Credit Lender to purchase participating interests
pursuant to subsection 3.6 shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Issuing Lender,
Holdings, the Borrowers or any other Credit Party or any other Person for any reason whatsoever; (ii) the occurrence or continuance of any Default or Event of Default; (iii) any adverse change in the condition (financial or otherwise) of
Holdings, either Borrower or any other Credit Party; (iv) any breach of this Agreement by Holdings, the Borrowers or any other Credit Party or any other Lender; or (v) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing. 
 3.14. Role of Issuing Lender. Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, the Issuing Lender shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the Issuing Lender, the Administrative Agent, any of their respective Affiliates nor any correspondent, participant or
assignee of the Issuing Lender shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders, the Majority Facility Lenders or the Required Lenders, as applicable;
(ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or related
documents. The Borrowers hereby assume all risks of the acts or omissions of any beneficiary or transferee with respect to the use of any Letter of Credit; provided that this assumption is not intended to, and shall not, preclude the
Borrowers’ pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the Issuing Lender, the Administrative Agent, any of their respective Affiliates nor any
correspondent, participant or assignee of the Issuing Lender shall be liable or responsible for any of the matters described in clauses (i) through (iv) of subsection 3.12; provided that anything in such clauses to the contrary
notwithstanding, the Borrowers may have a claim against the Issuing Lender, and the Issuing Lender may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by
the Borrowers which the Borrowers prove were caused by the Issuing Lender willful misconduct or gross negligence or the Issuing Lender’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a
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terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the Issuing Lender may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary, and the Issuing Lender shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer
or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
 3.15. Cash Collateral. Upon the request of (x) the Administrative Agent, (i) if the Issuing Lender has honored any full or partial drawing request under any Letter of Credit and such
drawing has resulted in a deemed borrowing, or (ii) if, as of the expiration date of such Letter of Credit any L/C Obligation for any reason remains outstanding; (y) the Swing Line Lender pursuant to subsection 3.4; or (z) the Issuing
Lender pursuant to subsection 3.5(d)(ii), the Borrowers shall, in each case, promptly, but in any event within one Business Day, cash collateralize the then outstanding amount of all L/C Obligations or Swing Line Loans, as applicable. 
 SECTION 4. GENERAL PROVISIONS APPLICABLE TO LOANS 
 4.1. Procedure for Borrowing. (a) Subject to the terms and conditions hereof, the Borrowers may borrow under the Commitments on any Business Day; provided that, with respect to any
borrowing, the Borrowers shall give the Administrative Agent (or, with respect to Swing Line Loans, the Swing Line Lender) irrevocable notice substantially in the form of Exhibit P hereto (which notice must be received by the Administrative
Agent prior to 12:00 noon (or, with respect to Swing Line Loans, 1:00 p.m.) (i) three Business Days prior to the requested Borrowing Date if all or any part of the Loans are to be Eurodollar Loans and (ii) one Business Day prior to the
requested Borrowing Date (or, in the case of Swing Line Loans, on the requested Borrowing Date) if the borrowing is to be solely of Alternate Base Rate Loans) and in either case specifying (a) the amount of the borrowing, (b) whether such
Loans are initially to be Eurodollar Loans or Alternate Base Rate Loans or a combination thereof, (c) if the borrowing is to be entirely or partly Eurodollar Loans, the length of the Interest Period for such Eurodollar Loans and
(d) whether the Loan is a Term Loan, a Swing Line Loan or Revolving Credit Loan. Upon receipt of such notice the Administrative Agent shall promptly notify each affected Lender thereof. Not later than 12:00 noon on the Borrowing Date specified
in such notice, each affected Lender shall make available to the Administrative Agent at the office of the Administrative Agent specified in subsection 11.2 (or at such other location as the Administrative Agent may direct) an amount in immediately
available funds equal to the amount of the Loan to be made by such Lender (except that proceeds of Swing Line Loans will be made available to the Borrowers in accordance with subsection 3.4(a)). Loan proceeds received by the Administrative Agent
hereunder shall promptly be made available to the Borrowers in immediately avail able funds to be delivered by wire transfer to the account(s) designated by the Borrowers in the applicable borrowing notice, with the aggregate amount actually
received by the Administrative Agent from the Lenders and in like funds as received by the Administrative Agent. 
 (b) Any
borrowing of Eurodollar Loans hereunder shall be in such amounts and be made pursuant to such elections so that, after giving effect thereto, (i) the aggregate principal amount of all Eurodollar Loans having the same Interest Period shall not
be less than $1,000,000 or a whole multiple of $100,000 in excess thereof, and (ii) no more than ten Interest Periods shall be in effect at any one time. 
  

 
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 4.2. Conversion and Continuation Options. (a) Subject to subsection 4.15, the
Borrowers may elect from time to time to convert Eurodollar Loans into Alternate Base Rate Loans by giving the Administrative Agent irrevocable notice of such election, to be received by the Administrative Agent prior to 12:00 noon at least three
Business Days prior to the proposed conversion date. The Borrowers may elect from time to time to convert all or a portion of the Alternate Base Rate Loans (other than Swing Line Loans) then outstanding to Eurodollar Loans by giving the
Administrative Agent irrevocable notice of such election, to be received by the Administrative Agent prior to 12:00 noon at least three Business Days prior to the proposed conversion date, specifying the Interest Period selected therefor. Such
conversion shall be made on the requested conversion date or, if such requested conversion date is not a Business Day, on the next succeeding Business Day; provided that no such conversion shall be made when any Event of Default has occurred
and is continuing and the Required Lenders have, by written notice to the Borrowers (with a copy to the Administrative Agent), determined that such conversion is not appropriate. Upon receipt of any notice pursuant to this subsection 4.2, the
Administrative Agent shall promptly notify each affected Lender thereof. All or any part of the outstanding Loans (other than Swing Line Loans) may be converted as provided herein; provided that partial conversions of Alternate Base Rate
Loans shall be in the aggregate principal amount of $500,000 or a whole multiple of $100,000 in excess thereof and the aggregate principal amount of the resulting Eurodollar Loans outstanding in respect of any one Interest Period shall be at least
$1,000,000 or a whole multiple of $100,000 in excess thereof. 
 (b) Any Eurodollar Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the Borrowers giving notice to the Administrative Agent, in accordance with the applicable provisions of the term “Interest Period” set forth in subsection 1.1, of the
length of the next Interest Period to be applicable to such Loans; provided that no Eurodollar Loan may be continued as such (i) when any Event of Default has occurred and is continuing and the Required Lenders have, by written notice to
the Borrowers (with a copy to the Administrative Agent), determined that such a continuation is not appropriate, (ii) if, after giving effect thereto, subsection 4.1(b) would be contravened or (iii) after the date that is one month prior
to the Revolving Credit Termination Date (in the case of continuations of Revolving Credit Loans) or the final Installment Payment Date of the Term Loans. 
 4.3. Changes of Commitment Amounts. (a) The Borrowers shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, at any time subsequent to the
Closing Date, to terminate or from time to time to permanently reduce the Revolving Credit Commitments and/or any Incremental Revolving Commitments, subject to the provisions of this subsection 4.3. Any notice given by the Borrowers pursuant to this
subsection 4.3(a) shall be irrevocable; provided that any such notice delivered by the Borrowers may state that such notice is conditioned upon the effectiveness of other financing arrangements, in which case such notice may be revoked by the
Borrowers (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. 
 To the extent, if any, that the sum of the amount of the Revolving Credit Loans, Swing Line Loans and L/C Obligations then outstanding and the amounts available to be drawn under outstanding Letters of Credit exceeds the amount of the
Revolving Credit Commitments and any Incremental Revolving Commitments, as then reduced, the Borrowers shall be required to make a prepayment equal to such excess amount, the proceeds of which shall be applied, first, to payment of the Swing
Line Loans then outstanding, second, to payment of any L/C Obligations then outstanding, third to payment of the Revolving Credit Loans then outstanding and fourth, to cash collateralize any outstanding Letters of

  

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Credit on terms reasonably satisfactory to the Administrative Agent. Any termination of the Revolving Credit Commitments and any Incremental Revolving Commitments shall be accompanied by
prepayment in full of the Revolving Credit Loans, Swing Line Loans and L/C Obligations then outstanding in excess of the then outstanding Revolving Credit Commitments and any Incremental Revolving Commitments after giving effect to such reduction
and by cash collateralization of any outstanding Letters of Credit on terms reasonably satisfactory to the Administrative Agent. Upon termination of the Revolving Credit Commitments and any Incremental Revolving Commitments, any Letter of Credit
then outstanding that has been so cash collateralized shall no longer be considered a “Letter of Credit” as defined in subsection 1.1 and any L/C Participating Interests granted by the Issuing Lender to the Lenders prior to the Closing
Date in such Letter of Credit shall be deemed terminated (subject to automatic reinstatement in the event that such cash collateral is returned and the Issuing Lender is not fully reimbursed for any such L/C Obligations) but the Letter of Credit
fees payable under subsection 3.9 shall continue to accrue to the Issuing Lender and the Participating Lenders (or, in the event of any such automatic reinstatement, as provided in subsection 3.9) with respect to such Letter of Credit until the
expiry thereof (provided that in lieu of paying a Standby L/C or Commercial L/C fee, as the case may be, equal to the Applicable Margin for Revolving Credit Loans which are Eurodollar Loans per annum, the Borrowers shall pay to
the Issuing Lender an amount equal to 0.25% per annum). 
 (b) In the case of termination of the Revolving
Credit Commitments and/or Incremental Revolving Commitments, interest accrued on the amount of any prepayment relating thereto and any unpaid commitment fee accrued hereunder shall be paid on the date of such termination. Any such partial reduction
of the Revolving Credit Commitments and/or Incremental Revolving Commitments, shall be in an amount of $1,000,000 or a whole multiple of $100,000 in excess thereof and shall, in each case, reduce permanently the amount of the Revolving Credit
Commitments and/or Incremental Revolving Commitments then in effect. 
 (c) (i) The Tranche B Term Loan Commitments and any
Incremental Term Commitments shall be automatically and permanently reduced upon the making of a Tranche B Term Loan or Incremental Term Loan, as the case may be, by the amount of such Loan and (ii) the Incremental Term Commitments under any
Incremental Facility shall be terminated effective as of the day after the effective date of the Incremental Loan Amendment relating thereto. 
 4.4. Optional Prepayments. Subject to subsection 4.15, the Borrowers may at any time and from time to time prepay Loans, in whole or in part, without premium or penalty, by irrevocable written
notice to the Administrative Agent by 12:00 noon on the Business Day preceding the proposed date of prepayment in the case of Alternate Base Rate Loans, and by 12:00 noon on the third Business Day preceding the proposed date of prepayment in the
case of Eurodollar Loans, in each case specifying the date and amount of prepayment and whether the prepayment is of Revolving Credit Loans or Term Loans; provided that if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by subsection 4.3(a), then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with subsection 4.3(a). Upon receipt of such notice the
Administrative Agent shall promptly notify each Lender thereof. If such notice is given, the Borrowers shall make such prepayment, and the payment amount specified in such notice shall be due and payable, on the date specified therein. Partial
prepayments of Term Loans pursuant to this subsection 4.4 shall be in an aggregate principal amount equal to the lesser of (a) (i) $1,000,000 or a whole multiple of $100,000 in excess thereof with respect to Eurodollar Loans or
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of $100,000 in excess thereof with respect to Alternate Base Rate Loans and (b) the aggregate unpaid principal amount of the Term Loans. Partial prepayments of Revolving Credit Loans
pursuant to this subsection shall be in an aggregate principal amount equal to the lesser of (a) (i) $1,000,000 or a whole multiple of $100,000 in excess thereof with respect to Eurodollar Loans or (ii) $500,000 or a whole multiple of
$100,000 in excess thereof with respect to Alternate Base Rate Loans and (b) the aggregate unpaid principal amount of the Revolving Credit Loans (or the aggregate unpaid principal amount of Revolving Credit Loans maintained as Alternate Base
Rate Loans (in the case of a prepayment of such Revolving Credit Loans) or as Eurodollar Loans with a single Interest Period (in the case of a prepayment of such Revolving Credit Loans)), as the case may be. Prepayments of the Term Loans pursuant to
this subsection 4.4 shall be applied in accordance with subsection 4.7. 
 4.5. Mandatory Prepayments. 
 (a) Indebtedness. If, subsequent to the Closing Date, Holdings or any of its Subsidiaries shall incur or permit the incurrence of any
Indebtedness (including debt securities convertible into, or exchangeable or exercisable for, Capital Stock) other than Indebtedness not prohibited by subsection 8.1, within five Business Days of receipt of any Net Proceeds therefrom, the Borrowers
shall prepay out standing Loans in an amount equal to 100% of such Net Proceeds, and such prepayment shall be applied in accordance with subsection 4.7. 
 (b) Asset Sales. If, subsequent to the Closing Date, Holdings or any of its Subsidiaries shall receive Net Proceeds from any Asset Sale, within five Business Days of receipt of any Net Proceeds
therefrom, the Borrowers shall prepay outstanding Loans in an amount equal to 100% of such Net Proceeds, and such prepayment shall be applied in accordance with subsection 4.7; provided that no payment shall be required pursuant to this
subsection 4.5(b) until the date that the aggregate amount of Net Proceeds received by Holdings or any of its Subsidiaries from Asset Sales exceeds $10,000,000 (and has not yet been so applied). 
 (c) Casualty Events. If, subsequent to the Closing Date, Holdings or any of its Subsidiaries shall receive proceeds from insurance
recoveries in respect of any Destruction or any proceeds or awards in respect of any Taking, in each case, in excess of $1,000,000, within five Business Days of receipt of such Net Proceeds, the Borrowers shall prepay outstanding Loans in an amount
equal to 100% of the Net Proceeds thereof, and such prepayment shall be applied in accordance with subsection 4.7, subject to the Borrowers’ right to reinvest or restore under subsection 12.2. 
 (d) Excess Cash Flow. If, for any fiscal year of Holdings commencing with its fiscal year ending on December 31, 2010, there
shall be Excess Cash Flow for such fiscal year, not later than 100 days after the end of such fiscal year, the Borrowers shall prepay Loans in an amount equal to 50% of such Excess Cash Flow, and such prepayment shall be applied in accordance with
subsection 4.7; provided that such percentage shall be reduced to zero with respect to such Excess Cash Flow (or a portion thereof) if the Total Leverage Ratio as of the end of such fiscal year is, or after giving effect to the prepayment
required by this subsection 4.5(d) with such Excess Cash Flow (or such portion thereof) would be, less than 2.00 to 1.00. 
 4.6. Repayment of Term Loans. (a) Subject to clause (b) below, the Tranche B Term Loans shall be repaid on the last Business Day of each March, June, September and December and on the Tranche B Maturity Date (each such day,
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forth below for the periods set forth below plus the amounts set forth in any Incremental Loan Amendment for Incremental Term Loans that are Tranche B Term Loans which shall be in proportion to
the percentages set forth below (in each case, subject to reduction as described in subsections 4.4, 4.5 and 4.7). 
  

			
	 Period
	  	 Amount

	March 2010 – September 2015	  	0.25 % per fiscal quarter
	Tranche B Maturity Date	  	Remainder

 Amounts repaid on account of the Tranche B Term Loans pursuant to this subsection 4.6(a) or otherwise
may not be reborrowed. Accrued interest on the amount of any prepayments shall be paid on the Interest Payment Date next succeeding the date of any partial prepayment and on the date of such prepayment in the case of a prepayment in full of the
Tranche B Term Loans. To the extent not previously paid, all Tranche B Term Loans shall be due and payable on the Tranche B Maturity Date. 
 (b) The applicable Incremental Loan Amendment may provide for scheduled repayments of any Incremental Term Loans that are not Tranche B Term Loans (the date of each such repayment, an “Incremental
Installment Payment Date”), subject to the requirements of the definition of Incremental Term Maturity Date. 
 4.7.
Application of Prepayments. (a) Prepayments of Term Loans pursuant to subsection 4.4 shall be applied as elected by the Borrowers. Subject to subsection 4.7(c), prepayments pursuant to subsection 4.5 shall be applied first, to
Term Loans outstanding and second, to the extent no Term Loans remain outstanding, to the Revolving Credit Loans in the amount of the Net Proceeds or Excess Cash Flow remaining to be applied; provided that so long as an Event of
Default shall have occurred and be continuing, prepayments pursuant to subsection 4.5 shall be applied to Term Loans and Revolving Credit Loans outstanding on a pro rata basis; provided further that in the case of a prepayment
pursuant to subsection 4.5, there shall be permanent reduction in the Revolving Credit Commitments and/or Incremental Revolving Commitments (on a pro rata basis between them) by the amount of Net Proceeds applied to the Revolving
Credit Loans. Following any such reduction, the Borrowers shall comply with the second paragraph of subsection 4.3(a). 
 (b)
Prepayments of Term Loans pursuant to subsection 4.5 shall be applied pro rata to the Tranche B Term Loans and any Incremental Term Loans that are not Tranche B Term Loans based upon the aggregate principal amount of Term Loans then
outstanding under each Tranche of Term Loans; within each Tranche, prepayments will be applied to the remaining installments of principal in direct order of maturity. Except as otherwise may be directed by the Borrowers, any prepayment of Loans
pursuant to this subsection 4.7 shall be applied, first, to any Alternate Base Rate Loans of the applicable Tranche then outstanding and the balance of such prepayment, if any, to the Eurodollar Loans of the applicable Tranche then
outstanding; provided that prepayments of Eurodollar Loans, if not on the last day of the Interest Period with respect thereto, shall, at the option of the Borrowers, be prepaid subject to the provisions of subsection 4.15 or the amount of
such prepayment (after application to any Alternate Base Rate Loans) shall be deposited with the Administrative Agent as cash collateral for the Loans on terms reasonably satisfactory to the Administrative Agent and thereafter shall be applied in
the order of the Interest Periods of the applicable Tranche next ending most closely to the date such prepayment is required to be made and on the last day of each such Interest Period. After such application, unless an Event of

  

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Default shall have occurred and be continuing (in which case such interest shall be held as cash collateral or applied by the Administrative Agent to any Obligations then due and payable), any
remaining interest earned on such cash collateral shall be paid to the Borrowers. 
 (c) Notwithstanding anything to the
contrary contained above in subsection 4.5(d) or subsection 4.7(a), with respect to any mandatory prepayments of Tranche B Term Loans required pursuant to subsection 4.5(d) in respect of Holdings’ fiscal year 2010 and each fiscal year
thereafter, if the Administrative Agent receives notice from the Borrowers that a mandatory prepayment is required to be made pursuant to subsection 4.5(d), then the Administrative Agent shall notify the Tranche B Lenders of such notice and the
amount of the repayment to be applied to each such Lender’s Tranche B Term Loan. Each Tranche B Lender shall have the option to waive up to 50% of its share of such mandatory prepayment. If a Tranche B Lender desires to waive its right to
receive up to 50% of any such mandatory prepayment, it shall do so by providing a notice to the Administrative Agent (which notice shall also include any amount of the Tranche B Lender’s share of the prepayment it desires to receive) no later
than 5:00 P.M. (New York time) five Business Days after the date the original notice of prepayment was delivered by the Borrowers to the Administrative Agent. If the Tranche B Lender does not reply to the Administrative Agent within the five
Business Day period, it will be deemed acceptance of its share of the total prepayment. If the Tranche B Lender does not specify an amount it wishes to receive, it will be deemed acceptance of all of its share of the total prepayment. In the event
that any Tranche B Lender waives its right to any mandatory prepayment in accordance with this subsection 4.7(c), the Borrowers shall be entitled to retain the amount of such waived prepayment. 
 4.8. Interest Rates and Payment Dates. (a) Eurodollar Loans shall bear interest for each day during each Interest Period
applicable thereto, commencing on (and including) the first day of such Interest Period to, but excluding, the last day of such Interest Period, on the unpaid principal amount thereof at a rate per annum equal to the Eurodollar Rate
determined for such Interest Period plus the Applicable Margin. 
 (b) Alternate Base Rate Loans shall bear interest for the
period from and including the date such Loans are made to, but excluding, the maturity date thereof, or to, but excluding, the conversion date if such Loans are earlier converted into Eurodollar Loans on the unpaid principal amount thereof at a rate
per annum equal to the Alternate Base Rate plus the Applicable Margin. 
 (c) Upon the occurrence and during the
continuance of the Event of Default described in Section 9, and at the election of the Administrative Agent or the Required Lenders, all Loans, Interest or other obligations shall, without limiting the rights of the Lenders under
Section 9, bear interest (which shall be payable on demand): (a) in the case of any Loan, the rate otherwise applicable to such Loan pursuant to this subsection 4.8 and the Applicable Margin plus 2%; and (b) in all other cases, a rate
per annum (computed on the basis of the actual number of days elapsed over a year of 365 or 366 days) equal to the Alternate Base Rate and the Applicable Margin plus 2%. 
 (d) Except as otherwise expressly provided for in this subsection 4.8, interest shall be payable in arrears (a) for Eurodollar Loans,
at the end of each Interest Period (or, for any Interest Period longer than three months, at three month intervals following the first day of such Interest Period) and on the final maturity of the Loans, and (b) for Alternate Base Rate Loans,
quarterly in arrears on the last Business Day of each March, June, September and December and on the final maturity of the Loans. 
  

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 4.9. Computation of Interest. (a) Interest in respect of Alternate Base Rate
Loans shall be calculated on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be. Interest in respect of Eurodollar Loans shall be calculated on the basis of the actual number of days elapsed over a year
of 360 days. The Administrative Agent shall as soon as practicable notify the Borrowers and the Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a change in the Alternate Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day on which such change in the Alternate Base Rate is announced or such change in the Eurocurrency Reserve Requirements becomes effective, as the case may
be. The Administrative Agent shall as soon as practicable notify the Borrowers and the Lenders of the effective date and the amount of each such change. 
 (b) Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Borrowers and the Lenders in the absence of
manifest error. The Administrative Agent shall, at the request of the Borrowers or any Lender, deliver to the Borrowers or such Lender a statement showing the quotations used by the Administrative Agent in determining the Eurodollar Rate.

 4.10. Certain Fees. The Borrowers agree to pay to the Administrative Agent, for its own account, a non-refundable
agent’s fee in an amount previously agreed to with the Administrative Agent, payable annually in advance on the Closing Date and on each anniversary thereof unless all Loans have been (or are on such date) repaid and all Commitments hereunder
have been (or are on such date) terminated. 
 4.11. Inability to Determine Interest Rate. In the event that the
Administrative Agent or the Required Lenders shall have reasonably determined (which determination shall be conclusive and binding upon the Borrowers) that (a) by reason of circumstances affecting the interbank eurodollar market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for any Interest Period with respect to (i) proposed Loans that the Borrowers have requested be made as Eurodollar Loans, (ii) any Eurodollar Loans that will result from
the requested conversion of all or part of the Alternate Base Rate Loans into Eurodollar Loans or (iii) the continuation of any Eurodollar Loan as such for an additional Interest Period, or (b) Dollar deposits in the relevant amount and
for the relevant period with respect to any such Eurodollar Loan are not generally available to the Lenders in their respective Eurodollar Lending Offices’ interbank eurodollar markets, the Administrative Agent shall forthwith give telecopy
notice of such determination, confirmed in writing, to the Borrowers and the Lenders at least one day prior to, as the case may be, the requested Borrowing Date, the conversion date or the last day of such Interest Period. If such notice is given
(i) any requested Eurodollar Loans shall be made as Alternate Base Rate Loans, (ii) any Alternate Base Rate Loans that were to have been converted to Eurodollar Loans shall be continued as Alternate Base Rate Loans, and (iii) any
outstanding Eurodollar Loans shall be converted on the last day of the then current Interest Period applicable thereto into Alternate Base Rate Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans
shall be made and no Alternate Base Rate Loans shall be converted to Eurodollar Loans. 
 4.12. Pro Rata Treatment and
Payments. (a) Except to the extent otherwise provided herein, each borrowing of Loans by the Borrowers from the Lenders and any reduction of the Commitments of the Lenders hereunder shall be made pro rata according to the
relevant Commitment Percentages of the Lenders with respect to the Loans borrowed or the Commitments to be reduced. 
  

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 (b) Whenever any payment received by the Administrative Agent under this Agreement or any
Note or any other Credit Document is insufficient to pay in full all amounts then due and payable to the Administrative Agent and the Lenders under this Agreement, such payment shall be distributed by the Administrative Agent and applied by the
Administrative Agent and the Lenders in the following order: first, to the payment of fees and expenses due and payable to the Administrative Agent (in such capacity and not in its capacity as a Lender) under and in connection with this
Agreement and the other Credit Documents; second, to the payment of all expenses due and payable under subsection 11.5, ratably among the Lenders in accordance with the aggregate amount of such payments owed to each such Lender; third,
to the payment of fees due and payable under subsections 3.2 and 3.9, ratably among the Lenders in accordance with the Commitment Percentage of each Lender of the Commitment for which such payment is owed and, in the case of the Issuing Lender, the
amount retained by the Issuing Lender for its own account pursuant to subsection 3.9; fourth, to the payment of interest then due and payable on the Loans and the L/C Obligations ratably in accordance with the aggregate amount of interest
owed to each such Lender; and fifth, to the payment of the principal amount of the Loans and the L/C Obligations which is then due and payable ratably among the Lenders in accordance with the aggregate principal amount owed to each such
Lender. 
 (c) If any Lender shall be a Defaulting Lender, then the Administrative Agent may, in its discretion (notwithstanding
any contrary provision hereof), set aside any amounts thereafter received by the Administrative Agent for the account of such Lender and (i) apply such amounts to satisfy such Lender’s obligations hereunder (in such order as determined by
the Administrative Agent) until all such unsatisfied obligations are fully paid or (ii) hold them in escrow until, and apply them as, directed by a court of competent jurisdiction. 
 (d) All payments (including prepayments) to be made by the Borrowers on account of principal, interest and fees payable under any Credit
Document shall be made without set-off, counterclaim or other defense and shall be made to the Administrative Agent, for the account of the Lenders at the Administrative Agent’s office located at 901 Main Street, Dallas, TX 75202, in lawful
money of the United States and in immediately available funds. The Administrative Agent shall promptly distribute such payments in accordance with the provisions of subsection 4.12(b) upon receipt in like funds as received. If any payment hereunder
(other than payments on Eurodollar Loans) would become due and payable on a day other than a Business Day, such payment shall become due and payable on the next succeeding Business Day and, with respect to payments of principal, interest thereon
shall be payable at the then applicable rate during such extension. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day (and with
respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension), unless the result of such extension would be to extend such payment into another calendar month in which event such payment shall
be made on the immediately preceding Business Day. 
 (e) Unless the Administrative Agent shall have been notified in writing by
any Lender prior to a borrowing that such Lender will not make the amount which would constitute its Commitment Percentage of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such
amount available to the Administrative Agent in accordance with subsection 4.1 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrowers a corresponding amount. If such amount is not made available to the
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Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon at a rate equal to the daily average
Federal Funds Rate for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any amounts owing under this subsection
4.12(e) shall be conclusive absent manifest error. If such Lender’s Commitment Percentage of such borrowing is not in fact made available to the Administrative Agent by such Lender within three Business Days of such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to Alternate Base Rate Loans hereunder (in lieu of any otherwise applicable interest), promptly upon, but in any event
within one Business Day of, demand, from the Borrowers, without prejudice to any rights which any such Borrower or the Administrative Agent may have against such Lender hereunder. Nothing contained in this subsection 4.12 shall relieve any Lender
which has failed to make available its ratable portion of any borrowing hereunder from its obligation to do so in accordance with the terms hereof. 
 (f) The failure of any Lender to make the Loan to be made by it on any Borrowing Date shall not relieve any other Lender of its obligation, if any, hereunder to make its Loan on such Borrowing Date, but
no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on such Borrowing Date. 
 (g) All payments and optional prepayments (other than prepayments as set forth in subsection 4.14 with respect to increased costs) of Eurodollar Loans hereunder shall be in such amounts and be made
pursuant to such elections so that, after giving effect thereto, the aggregate principal amount of all Eurodollar Loans with the same Interest Period shall not be less than $1,000,000 a whole multiple of $100,000 in excess thereof. 
 4.13. Illegality. Notwithstanding any other provision herein, if any Change in Law occurring after the date that any Person becomes a
Lender party to this Agreement shall make it unlawful for such Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, the commitment of such Lender hereunder to make Eurodollar Loans or to convert all or a portion of
Alternate Base Rate Loans into Eurodollar Loans shall forthwith be suspended until such time, if any, as such illegality shall no longer exist and such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall be converted
automatically to Alternate Base Rate Loans for the duration of the respective Interest Periods (or, if permitted by applicable law, at the end of such Interest Periods) and all payments of principal which would otherwise be applied to such
Eurodollar Loans shall be applied instead to such Lender’s Alternate Base Rate Loans. The Borrowers hereby agree to pay any Lender, promptly upon its demand, any amounts payable pursuant to subsection 4.15 in connection with any conversion in
accordance with this subsection 4.13 (such Lender’s notice of such costs, as certified in reasonable detail as to such amounts to the Borrowers through the Administrative Agent, to be conclusive absent manifest error). 
 4.14. Requirements of Law. (a) In the event that any Change in Law or compliance by any Lender with any request or directive
(whether or not having the force of law) from any central bank or other Governmental Authority occurring after the date that any lender becomes a Lender party to this Agreement: 
 (i) does or shall subject any such Lender or its Eurodollar Lending Office to any Tax of any kind whatsoever with respect to
this Agreement, any Note or any Eurodollar Loans made by it, or change the basis of taxation of payments to such Lender or its Eurodollar Lending Office

  

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of principal, the commitment fee, interest or any other amount payable hereunder (except for (x) Excluded Taxes and (y) taxes resulting from the substitution of any system of Excluded
Taxes by another system of taxation, provided that the taxes payable by Lenders subject to such other system of taxation are not generally grossed-up under senior secured credit facilities of U.S. corporate borrowers); 
 (ii) does or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement
against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Lender which are not otherwise included in the
determination of the Eurodollar Rate; or 
 (iii) does or shall impose on such Lender any other condition which
is applicable to lenders generally; 
 and the result of any of the foregoing is to increase the cost to such Lender or its Eurodollar Lending
Office of making, converting, renewing or maintaining advances or extensions of credit or to reduce any amount receivable hereunder, in each case, in respect of its Eurodollar Loans, then, in any such case, the Borrowers shall promptly pay such
Lender, promptly upon, but in any event within one Business Day of, its demand, any additional amounts necessary to compensate such Lender for such additional cost or reduced amount receivable which such Lender deems to be material as reasonably
determined by such Lender with respect to such Eurodollar Loans, together with interest on each such amount from the date demanded until payment in full thereof at a rate per annum equal to the Alternate Base Rate plus 1%. 

(b) In the event that any Change in Law occurring after the earlier of the date that any Person becomes a Lender party to this Agreement
with respect to any such Lender shall, in the reasonable opinion of such Lender, require that any Commitment of such Lender be treated as an asset or otherwise be included for purposes of calculating the appropriate amount of capital to be
maintained by such Lender or any corporation controlling such Lender, and such Change in Law shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital, as the case may be, as a consequence of such
Lender’s obligations hereunder to a level below that which such Lender or such corporation, as the case may be, could have achieved but for such Change in Law (taking into account such Lender’s or such corporation’s policies, as the
case may be, with respect to capital adequacy) by an amount reasonably deemed by such Lender to be material, then from time to time following notice by such Lender to the Borrowers of such Change in Law as provided in paragraph (c) of this
subsection 4.14, within 15 days after demand by such Lender, the Borrowers shall pay to such Lender such additional amount or amounts as will compensate such Lender or such corporation on an after-Tax basis, as the case may be, for such reduction.

 (c) The Borrowers shall not be required to make any payments to any Lender for any additional amounts pursuant to this
subsection 4.14 unless such Lender has given written notice to the Borrowers, through the Administrative Agent, of its intent to request such payments prior to or within 60 days after the date on which such Lender became entitled to claim such
amounts. If any Lender has notified the Borrowers through the Administrative Agent of any increased costs pursuant to paragraph (a) of this subsection 4.14, the Borrowers at any time thereafter may, upon at least three Business Days’
notice to the Administrative Agent (which shall promptly notify the Lenders thereof), and subject to subsection 4.15, prepay (or convert into Alternate Base Rate Loans) all (but not a part) of the Eurodollar Loans

  

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of the applicable Lender then outstanding. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of paragraph (a) of this subsection 4.14 with respect to
such Lender, it will, if requested by the Borrowers and to the extent permitted by law or by the relevant Governmental Authority, endeavor in good faith to avoid or minimize the increase in costs or reduction in payments resulting from such event
(including, without limitation, endeavoring to change its Eurodollar Lending Office); provided that such avoidance or minimization can be made in such a manner that such Lender, in its sole determination, suffers no economic, legal or
regulatory disadvantage. If any Lender requests compensation from either Borrower under this subsection 4.14, the Borrowers may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender thereafter to
make or continue Loans of the Type with respect to which such compensation is requested, or to convert Loans of any other Type into Loans of such Type, until the Requirement of Law giving rise to such request ceases to be in effect; provided
that such suspension shall not affect the right of such Lender to receive the compensation so requested. 
 (d)
(i) Subject to subsection 4.14(d)(iv), all payments by or on account of any Credit Party to or for the account of any Lender, Issuing Lender or the Administrative Agent hereunder or under any Note or other Credit Document shall be made without
setoff, counterclaim or other defense and free and clear of, and without deduction or withholding for, any and all Covered Taxes. If the applicable withholding agent shall be required by Law to deduct or withhold any Taxes from or in respect of any
sum payable under any Credit Document (as determined in the good faith discretion of the applicable withholding agent) to any Lender, Issuing Lender or the Administrative Agent, (a) the sum payable by the applicable Credit Party shall be
increased as necessary so that after all required deductions or withholdings have been made (including deductions or withholdings applicable to additional sums payable under this subsection 4.14(d)) such Lender, Issuing Lender or the Administrative
Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions or withholdings been made, (b) the applicable withholding agent shall make such deductions or withholdings, (c) the applicable
withholding agent shall pay the full amount deducted or withheld to the relevant authority in accordance with applicable Law and (d) if a Credit Party is the applicable withholding agent, the Borrowers shall furnish to Administrative Agent the
original copy of a receipt evidencing payment thereof within 30 days after such payment is made. 
 (ii) In addition, the
Borrowers hereby agree to pay and indemnify and hold harmless the Administrative Agent and each Lender and Issuing Lender from any present or future stamp or documentary taxes and any other excise or property taxes, charges or similar levies which
arise from any payment made or required to be made hereunder or under any Note or other Credit Document or from the execution, delivery, enforcement or registration of, or otherwise with respect to, this Agreement or any Note or Guarantee or any
other Credit Document, and all interest, fines, penalties and additions to tax and related expenses with regard thereto (“Other Taxes”). 
 (iii) Subject to subsection 4.14(d)(iv), the Credit Parties, jointly and severally, hereby agree to indemnify and hold harmless the Administrative Agent and each Lender and Issuing Lender for the full
amount of Covered Taxes (including, without limitation, any Covered Taxes imposed on amounts payable under this subsection 4.14(d)) payable by Administrative Agent or such Lender or Issuing Lender and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto, whether or not such Covered Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. Payments due under this indemnification shall be made within
30 days of the date the Administrative Agent or such Lender or Issuing Lender makes demand therefor. 
  

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 (iv) Each Lender and Issuing Lender shall deliver to the Borrowers and to the Administrative
Agent, whenever reasonably requested by the Borrowers or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Laws and such other reasonably requested information as will permit the Borrowers or the
Administrative Agent, as the case may be, (A) to determine whether or not payments made hereunder or under any other Credit Document are subject to Taxes, (B) to determine, if applicable, the required rate of withholding or deduction and
(C) to establish such Lender’s or Issuing Lender’s entitlement to any available exemption from, or reduction of, applicable Taxes in respect of any payments to be made to such Lender or Issuing Lender by the Borrowers pursuant to this
Agreement or otherwise to establish such Lender’s or Issuing Lender’s status for withholding tax purposes in the applicable jurisdiction. 
 Without limiting the generality of the foregoing, 
 (A) any Lender or Issuing Lender that is a
“United States person” within the meaning of Section 7701(a)(30) of the Code shall deliver to the Borrowers and the Administrative Agent executed originals of Internal Revenue Service (“IRS”) Form W-9 or such other
documentation or information prescribed by applicable Laws or reasonably requested by the Borrowers or the Administrative Agent certifying that Lender or Issuing Lender is not subject to U.S. federal backup withholding or information reporting
requirements; and 
 (B) to the extent it is legally entitled to do so: each Lender or Issuing Lender that is not
a “United States person” within the meaning of Section 7701(a)(30) of the Code that is entitled under the Code or any applicable treaty to an exemption from or reduction of U.S. federal withholding tax with respect to any payments
hereunder or under any other Credit Document shall deliver to the Borrowers and the Administrative Agent (in such number of signed originals as shall be reasonably requested by the recipient) on or prior to the date on which such Lender or Issuing
Lender becomes a Lender or Issuing Lender under this Agreement (and from time to time thereafter (1) if any documentation previously delivered has expired or become obsolete or invalid or (2) upon the request of the Borrowers or the
Administrative Agent,), whichever of the following is applicable: 
  

	 	(1)	IRS Form W-8BEN (or any successor thereto) claiming eligibility for benefits of an income tax treaty to which the United States is a party, 

  

	 	(2)	IRS Form W-8ECI (or any successor thereto), 

  

	 	(3)	 in the case of a Lender or Issuing Lender claiming the benefits of the exemption for portfolio interest under Sections 881(c) or 871(h) of the Code
(the “Portfolio Interest Exemption”), (x) a certificate, substantially in the form of Exhibit Q-1, Q-2, Q-3 or Q-4, as applicable (each a “Tax Status Certificate”), to the effect

  

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that such Lender or Issuing Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrowers
within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and that no interest to be received is effectively connected with a U.S. trade
or business and (y) duly completed and executed original copies of IRS Form W-8BEN (or any successor thereto), 

  

	 	(4)	where such Lender or Issuing Lender is a partnership (for U.S. federal income tax purposes) or otherwise not a beneficial owner (e.g., where such Lender or
Issuing Lender has sold a typical participation), IRS Form W-8IMY (or any successor thereto) and all required supporting documentation (including, where one or more of the underlying beneficial owners is claiming the benefits of the Portfolio
Interest Exemption, a Tax Status Certificate (which Tax Status Certificate may be provided by the Lender or Issuing Lender on behalf of such beneficial owner(s))), or 

  

	 	(5)	any other form prescribed by applicable Laws as a basis for claiming exemption from or a reduction in United States federal withholding tax together with such
supplementary documentation as may be prescribed by applicable Laws to permit the Borrowers or the Administrative Agent to determine the withholding or deduction required to be made. 

 Each Lender and Issuing Lender shall promptly notify the Borrowers and the Administrative Agent of any change in circumstances which would modify or render
invalid any claimed exemption or reduction. 
 Notwithstanding any provision of this subsection 4.14 to the contrary, the Borrowers shall have
no obligation to pay any amount to or for the account of any Lender on account of any United States federal withholding taxes pursuant to this subsection 4.14, to the extent that such amount results from the failure of any Lender to comply with its
obligations pursuant to this subsection 4.14. 
 (e) A certificate in reasonable detail as to any amounts submitted by such
Lender or Issuing Lender, through the Administrative Agent, to the Borrowers, shall be conclusive in the absence of manifest error. The covenants contained in this subsection 4.14 shall survive the termination of this Agreement and repayment of the
Loans. 
 4.15. Indemnity. The Borrowers and the Guarantors agree to jointly and severally indemnify each Lender and to
hold such Lender harmless from any loss or expense (but (x) without duplication of any amounts payable as default interest and (y) excluding any loss of anticipated profits) which such Lender may sustain or incur as a consequence of
(a) default by the Borrowers in making a borrowing after the Borrowers have given a notice in accordance with subsection 4.1 or in making a conversion of Alternate Base Rate Loans to Eurodollar Loans or in continuing Eurodollar Loans as such,
in either case, after the Borrowers have given notice in accordance with subsection 4.2, (b) default by the Borrowers in making any prepayment after the Borrowers have given a notice in accordance with subsection 4.4 or

  

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(c) a payment or prepayment of a Eurodollar Loan or conversion (including without limitation, as a result of subsection 4.4, 4.5 or 4.6 and/or a conversion pursuant to subsection 4.13) of any
Eurodollar Loan into an Alternate Base Rate Loan, in either case on a day which is not the last day of an Interest Period with respect thereto, including, but not limited to, any such loss or expense arising from interest or fees payable by such
Lender to lenders of funds obtained by it in order to maintain its Eurodollar Loans hereunder (but excluding loss of profit). This covenant shall survive termination of this Agreement and repayment of the Loans. The payment of an amount due
hereunder as a result of the Borrowers failing to make a borrowing, payment or conversion after delivering notice of the same shall constitute a cure of any Default or Event of Default arising therefrom. 
 4.16. Repayment of Loans; Evidence of Debt. (a) The Borrowers hereby unconditionally promise to pay to the Administrative Agent
for the account of each Lender (i) the then unpaid principal amount of each Revolving Credit Loan of such Lender on the Revolving Credit Termination Date, (ii) the principal amount of the Tranche B Term Loan (including the principal amount
of any Incremental Term Loan that is a Tranche B Term Loan) of such Lender, in installments, payable on each Tranche B Installment Payment Date, in accordance with subsection 4.6(b) (or the then unpaid principal amount of such Tranche B Term Loan on
the date that the Tranche B Term Loans become due and payable pursuant to Section 9), and (iii) the then unpaid principal amount of the Swing Line Loans of the Swing Line Lender on the Revolving Credit Termination Date. The Borrowers
hereby further agree to pay interest on the unpaid principal amount of the Loans from time to time outstanding from the Closing Date until payment in full thereof at the rates per annum and on the dates set forth in subsection 4.8.

 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the
Borrowers to such Lender resulting from each Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. 
 (c) The Administrative Agent shall maintain the Register pursuant to subsection 11.6(d), and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Revolving Credit Loan, Tranche B Term Loan and any Incremental Term Loan made hereunder, the Type thereof and each Interest Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) both the amount of any sum received by the Administrative Agent hereunder from the Borrowers and each Lender’s share thereof. 
 (d) The entries made in the Register and the accounts of each Lender maintained pursuant to subsection 4.16(b) shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrowers therein recorded; provided that the failure of any Lender or the Administrative Agent to maintain the Register
or any such account, or any error therein, shall not in any manner affect the obligation of the Borrowers to repay (with applicable interest) the Loans made to the Borrowers by such Lender or to repay any other obligations in accordance with the
terms of this Agreement. 
 (e) The Borrowers agree that, upon the request to the Administrative Agent by any Lender, the
Borrowers will execute and deliver to such Lender (i) a promissory note of the Borrowers evidencing the Revolving Credit Loans of such Lender, substantially in the form of Exhibit A hereto with appropriate insertions as to date and
principal amount (a “Revolving Credit Note”), (ii) a promissory note

  

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of the Borrowers evidencing the Tranche B Term Loan of such Lender, substantially in the form of Exhibit B hereto with appropriate insertions as to date and principal amount (a
“Tranche B Term Note”), (iii) a promissory note of the Borrowers evidencing any Incremental Term Loan of such Lender (an “Incremental Term Note”) and/or (iv) in the case of the Swing Line Lender, a
promissory note of the Borrowers evidencing the Swing Line Loans of the Swing Line Lender, substantially in the form of Exhibit C hereto with appropriate insertions as to date and principal amount (the “Swing Line Note”).

 4.17. Replacement of Lenders. In the event any Lender or the Issuing Lender (x) is a Defaulting Lender,
(y) exercises its rights pursuant to subsection 4.13 or (z) requests payments pursuant to subsection 3.10 or 4.14, the Borrowers may require, at the Borrowers’ expense (including payment of any processing fees under subsection
11.6(e)) and subject to subsection 4.15, such Lender or the Issuing Lender to assign, at par plus accrued interest and fees, without recourse (in accordance with subsection 11.6) all of its interests, rights and obligations hereunder (including all
of its Commitments and the Loans and other amounts at the time owing to it hereunder and its Notes and its interest in the Letters of Credit) to an Eligible Assignee; provided that (i) such assignment shall not conflict with or violate
any law, rule or regulation or order of any court or other Governmental Authority, (ii) in the case of the assignment of any commitment to a non-preexisting Lender, the Borrowers shall have received the written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, to such assignment, (iii) the Borrowers shall have paid to the assigning Lender or the Issuing Lender all monies other than principal, interest and fees accrued and owing hereunder to it
(including pursuant to subsections 3.10, 4.13, 4.14 and 4.15) and (iv) in the case of a required assignment by the Issuing Lender, the Letters of Credit shall be canceled and returned to the Issuing Lender. 
 SECTION 5. REPRESENTATIONS AND WARRANTIES 
 In order to induce the Lenders to enter into this Agreement and to make the Loans and to induce the Issuing Lender to issue, and the Participating Lenders to participate in, the Letters of Credit, each
Borrower and Holdings hereby represent and warrant to each Lender and the Administrative Agent as of the Closing Date and, except as otherwise stated to be as of a different date, as of the date of the making of any extension of credit hereunder:

 5.1. Financial Statements; Financial Condition. (a) All financial statements identified on Schedule 5.1
(a) hereto and all financial statements delivered pursuant to subsection 7.1 (a) or 7.1(b) present fairly in all material respects the financial condition, results of operations and cash flows of the entities to which they relate as of
the dates and for the periods indicated. All such financial statements (i) with respect to Holdings and each of its Subsidiaries (other than the financial statements identified on Schedule 5.1(a) hereto of Language Line Services UK Limited and
its direct and indirect Subsidiaries), including the related schedules and notes thereto, have been prepared in accordance with GAAP applied consistently throughout the periods involved (except as disclosed therein and except that any such unaudited
financial statements lack footnote disclosure and normal year-end audit adjustments) and (ii) with respect to the financial statements identified on Schedule 5.1(a) hereto of Language Line Services UK Limited and its direct and indirect
Subsidiaries, including the related schedules and notes thereto, have been prepared in accordance with UK GAAP applied consistently throughout the periods involved (except as disclosed therein and except that any such unaudited financial
statements lack footnote disclosure and normal year-end audit adjustments). 
  

 
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 (b) Except as set forth in the financial statements identified on Schedule 5.1
(a) hereto, after giving effect to the Indebtedness, customary liabilities in respect of expenses incurred in connection with the Transactions and liabilities incurred in the ordinary course of business of the Credit Parties since the date
of the most recent such financial statements, as of the Closing Date there are no material liabilities of the Credit Parties of any kind (including, without limitation, liabilities for taxes, or any long-term leases or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives) required to be set forth on a balance sheet or in the notes thereto prepared in accordance with GAAP or
UK GAAP, as applicable, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing condition, situation or set of circumstances which is reasonably likely to result in such a liability. 
 5.2. No Change. Since December 31, 2008, after giving effect to the Transactions, there has been no change, development or event
which, individually or when taken together with all other circumstances, changes or events, has had, or could reasonably be expected to have, a Material Adverse Effect. 
 5.3. Existence; Compliance with Law. Each of Holdings and its Subsidiaries (a) is duly organized and validly existing under the laws of the jurisdiction of its organization, (b) has full
power and authority and possesses all governmental franchises, licenses, permits, authorizations and approvals necessary to enable it to use its corporate name and to own, lease or otherwise hold its properties and assets and to carry on its
business as presently conducted other than such franchises, licenses, permits, authorizations and approvals the lack of which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (c) is duly
qualified and in good standing (to the extent such concept is applicable in the applicable jurisdiction) to do business in each jurisdiction in which the nature of its business or the ownership, leasing or holding of its properties makes such
qualification necessary, except such jurisdictions where the failure so to qualify, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all applicable statutes
(including the Fair Labor Standards Act, as amended), laws (including Environmental Laws), ordinances, rules, orders, permits (including Environmental Permits) and regulations of any Governmental Authority or instrumentality, domestic or foreign
(including, without limitation, those related to Hazardous Materials and substances), except where noncompliance individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Neither Holdings nor any of its
Subsidiaries has received any written communication from a Governmental Authority that alleges that Holdings, or any of its Subsidiaries is not in compliance with federal, state, local or foreign laws, ordinances, rules and regulations, except to
the extent such noncompliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 5.4. Power; Authorization. Each Credit Party has the power and authority to execute, deliver and perform each of the Credit Documents to which it is a party, and each Borrower has the power and authority and legal right to borrow
hereunder and to have Letters of Credit issued for its account hereunder. Each Credit Party has taken all necessary action to authorize the execution, delivery and performance of each of the Credit Documents to which it is or will be a party and
each Borrower has taken all necessary action to authorize the borrowings hereunder and the issuance of Letters of Credit for its account hereunder. No consent or authorization of, or filing with, any Person (including, without limitation, any
Governmental Authority) is required in connection with the execution, delivery or performance by any Credit Party, or for the validity or enforceability in accordance with its terms against any Credit

  

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Party, of any Credit Document except for (i) consents, authorizations and filings which have been obtained or made and are in full force and effect, (ii) such consents, authorizations
and filings which the failure to obtain or perform, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, and (iii) such filings as are necessary to perfect the Liens of the Lenders created
pursuant to this Agreement and the Security Documents. 
 5.5. Enforceable Obligations. This Agreement and each of the
other Credit Documents have been, duly executed and delivered on behalf of each Credit Party that is party hereto or thereto, as applicable. This Agreement constitutes, and each of the other Credit Documents will constitute upon execution and
delivery thereof, the legal, valid and binding obligation of each Credit Party that is party thereto, and is enforceable against each Credit Party that is party hereto or thereto, as applicable, in accordance with its terms, except as may be limited
by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law). 
 5.6. No Legal Bar. None of the execution, delivery or performance by each Credit Party of each
Credit Document to which it is a party and the incurrence and use of the proceeds of the Loans and the issuance of and of drawings under the Letters of Credit (a) will violate any Requirement of Law, constitutive document or any Contractual
Obligation applicable to or binding upon such Credit Party or any of their respective Subsidiaries or any of their respective properties or assets, in any manner which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or (b) will result in the creation or imposition of any Lien on any of its properties or assets pursuant to any Requirement of Law applicable to it, as the case may be, or any of its Contractual Obligations, except for
the Liens arising under the Security Documents and Permitted Liens. 
 5.7. No Material Litigation. There is no pending
or, to the knowledge of any Credit Party, threatened claim, legal action, arbitration or other legal, governmental, administrative or tax proceeding or any order, complaint, decree or judgment involving or affecting the Transactions, Holdings or any
of its Subsidiaries or any of their respective properties, assets, operations or businesses which have had, or are reasonably likely to have, a Material Adverse Effect. 
 5.8. Investment Company Act. No Credit Party is an “investment company” or a company “controlled” by an “investment company” (as each of the quoted terms is defined or
used in the Investment Company Act of 1940, as amended) that is required to be registered under such Act. 
 5.9. Federal
Regulation. The extensions of credit hereunder will not be used for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U as in effect now and from
time to time hereafter in effect or for any purpose that violates the provisions of the regulations of the Board. Following application of the proceeds of each extension of credit hereunder, not more than 25 percent of the value of the assets of any
Credit Party will be Margin Stock (as defined in Regulation U). No Credit Party is subject to regulation under any law or regulation which limits its ability to incur Indebtedness, other than Regulation X of the Board. 
 5.10. No Default. Each of Holdings and its Subsidiaries have performed all material obligations required to be performed by them
under their respective Contractual Obligations (including after giving effect to the Transactions) and they are not (with or without the lapse of time or the giving of notice, or both) in breach or default in any respect thereunder, except to the
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default, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Neither Holdings nor any of its Subsidiaries (including after giving effect to the
Transactions) is in default under any material judgment, order or decree of any Governmental Authority, domestic or foreign, applicable to it or any of its respective properties, assets, operations or business, except to the extent that any such
defaults could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 5.11.
Taxes. Each of Holdings and its Subsidiaries (including after giving effect to the Transactions) (i) has timely filed or caused to be timely filed all material tax returns, statements, forms and reports (domestic or foreign) which are
required to be filed (and all such tax returns were true and correct in all material respects when and as filed) and (ii) has timely paid all Taxes shown to be due and payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than with respect to any Taxes (x) the amount of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves (or other sufficient provisions) in conformity with GAAP have been provided on the books of Holdings or one of its Subsidiaries (including after giving effect to the Transactions), as the case may be,
and (y) which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect). Each of Holdings and its Subsidiaries is unaware of any proposed or pending tax assessments, deficiencies or audits that could
be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect. Neither Holdings nor its Subsidiaries is a party to any understanding or arrangement constituting a “tax shelter” within the meaning of
Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or has “participated” in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4 with regard to any
taxable period for which the applicable statute of limitations has not yet expired. 
 5.12. Subsidiaries. After giving
effect to the consummation of the Transactions, (i) Holdings owns directly or indirectly 100% of the capital stock of each of its Subsidiaries on the Closing Date and (ii) the Subsidiaries of Holdings, their jurisdictions of incorporation, the
number of shares or units of each class of its Capital Stock authorized and the number outstanding and the number of shares or units covered by all outstanding options, warrants, rights of conversion or purchase and similar rights, and their equity
holders, in each case, as of the Closing Date shall be as set forth on Schedule 5.12 hereto. All Capital Stock of each Subsidiary of Holdings (i) that is a corporation is duly and validly issued and is fully paid and non-assessable and
(ii) that is a limited liability company is duly and validly issued without any obligation to make additional capital contributions and in each case, is owned, of record and beneficially, by Holdings, directly or indirectly. 
 5.13. Ownership of Property; Liens. As of the Closing Date and as of the making of any extension of credit hereunder (subject to
transfers and dispositions of property permitted under subsection 8.5), each of Holdings and its Subsidiaries has good and valid title (or, in the case of licensed Intellectual Property, a valid license) to all of its material assets necessary for
the conduct of its business, in each case free and clear of all Liens except Permitted Liens. With respect to each Leased Property, as of the Closing Date, each of Holdings or its applicable Subsidiary has a valid and enforceable leasehold interest
therein, in each case, free and clear of all Liens, except (a) the terms and provisions of the respective lease therefor, including, without limitation, the matters set forth on Schedule 5.13, (b) Permitted Encumbrances and
(c) any matters affecting the fee title and any estate superior to the leasehold estate related thereto. The Leased Properties constitute, as of the Closing Date, all of the material Real Property

  

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of Holdings and its Subsidiaries and used or held for use by Holdings and its Subsidiaries. No Credit Party has received notice of pending condemnation or similar proceedings affecting any of the
Real Property, and to each Credit Party’s knowledge, no such action is currently contemplated or threatened. 
 5.14.
ERISA. (a) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a
Material Adverse Effect. The present value of all accumulated benefit obligations of all underfunded Pension Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed by an amount that could reasonably be expected to have a Material Adverse Effect the fair market value of the assets of all such underfunded Pension Plans. Each ERISA Entity is in
compliance in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Employee Benefit Plan, except to the extent any noncompliance could not reasonably be expected to have a Material Adverse Effect.
Using actuarial assumptions and computation methods consistent with subpart 1 of subtitle E of Title IV of ERISA, the aggregate liabilities of each ERISA Entity to all Multiemployer Plans in the event of a complete withdrawal therefrom, as of the
close of the most recent fiscal year of each such Multiemployer Plan, would not reasonably be expected to result in a Material Adverse Effect. 
 (b) Neither Holdings nor any of its Subsidiaries maintains or contributes to any benefit plan, program, policy, arrangement or agreement with respect to employees (or former employees) employed outside
the United States under which Holdings or any of its Subsidiaries could incur any liability that could reasonably be expected to have a Material Adverse Effect. 
 5.15. Collateral Documents. (a) Upon execution and delivery thereof by the parties thereto and the making of Loans hereunder, the Security Agreement is effective to create in favor of the
Administrative Agent, for the ratable benefit of the Lenders, a legal, valid and enforceable Lien on and security interest in all rights, title and interest of the Credit Parties in the pledged securities described therein and, when certificates
representing or constituting the pledged securities described in the Security Agreement are delivered to the Administrative Agent, such security interest shall constitute a perfected first Lien on, and security interest in, all right, title and
interest of the pledgor party thereto in the pledged securities described therein (to the extent such matter is governed by the law of the United States or a jurisdiction therein). No filings or recordings are required in order to perfect the
security interest created in the pledged securities described in the Security Agreement and the proceeds thereof other than filings on Form UCC-1 (arrangements for which filings have been made) and no consent of any Person including any other
general or limited partner, any other member of a limited liability company, any other shareholder or any other trust beneficiary is necessary in connection with the creation, perfection or first priority status of the security interest of the
Administrative Agent in any pledged securities or the exercise by the Administrative Agent of the voting or other rights provided for in the Security Agreement or the exercise of remedies in respect thereof. 
 (b) Upon execution and delivery thereof by the parties thereto and the making of Loans hereunder, the Security Agreement is effective to
create in favor of the Administrative Agent, for the ratable benefit of the Lenders, a legal, valid and enforceable Lien on and security interest in all right, title and interest of the Credit Parties in the collateral described therein (to the
extent such matter is governed by the law of the United States or a jurisdiction therein), and UCC financing statements have been filed in each of the jurisdictions listed on Schedule 5.15(b) hereto, or arrangements have been made for

  

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such filing in such jurisdictions, and upon such filing or such other filings referenced in subsection 5.15(d), and upon the taking of possession or control by the Administrative Agent of any
such collateral the security interests in which may be perfected only by possession or control (to the extent possession or control by the Administrative Agent is required by the Security Agreement), such security interests subject to the existence
of Permitted Liens, constitute perfected first priority Liens on, and security interests in, all right, title and interest of the debtor party thereto in the collateral described therein, except to the extent that a security interest cannot be
perfected therein by the filing of a financing statement or the taking of possession under the UCC of the relevant jurisdiction (or, if a security interest can be perfected only by possession or control, to the extent possession or control by the
Administrative Agent is not required pursuant to the Security Agreement). Each Credit Party has good and marketable title (or, in the case of licensed Intellectual Property, a valid license) to all Collateral pledged by it under the Security
Agreement, free and clear of all Liens except those described above in this clause (b) and except for Permitted Liens. 
 (c) Upon execution and delivery thereof by the relevant Credit Party, each Mortgage will be effective to create in favor of the Administrative Agent, for the ratable benefit of the Lenders, a legal, valid and enforceable security interest
in and Lien on the rights, title and interest of the applicable Credit Party thereto in the collateral described therein, and upon proper recording such Mortgage in the jurisdiction in which the property covered by such Mortgage is located, such
security interests and Lien will, subject to the existence of Permitted Encumbrances, constitute first priority liens on, and perfected security interests in, all right, title and interest of the debtor party thereto in the collateral described
therein. 
 (d) The recordation of the Security Agreement (or a short form thereof) in United States patents and trademarks in
the United States Patent and Trademark Office together with filings on Form UCC-1 made pursuant to the Security Agreement are effective, under applicable law, to perfect the security interest, as collateral security for the payment and performance
of the Loans and the other Obligations, granted to the Administrative Agent for the benefit of the Lenders in the registered trademarks and patents covered by such Security Agreement in United States patents and trademarks and the recordation of the
Security Agreement in United States copyrights with the United States Copyright Office together with filings on Form UCC-1 made pursuant to the Security Agreement are effective under federal law to perfect the security interest, as collateral
security for the payment and performance of the Loans and the other Obligations, granted to the Administrative Agent for the benefit of the Lenders in the registered copyrights covered by such Security Agreement in United States copyrights, in each
case if and to the extent perfection may be achieved by such filings. 
 5.16. Copyrights, Patents, Permits, Trademarks and
Licenses. Schedules 14(a), (b) and (c) of the perfection certificate delivered pursuant to subsection 6.1(n) set forth a true and complete list as of the Closing Date after giving effect to the Transactions of all registered
Intellectual Property owned by Holdings or any of its Subsidiaries, and, with respect to registered trademarks (if any), contains a list of all jurisdictions in which such trademarks are registered or applied for and all registration and application
numbers. Except as disclosed in Schedules 14(a), (b) and (c) of the perfection certificate delivered pursuant to subsection 6.1(n), as of the Closing Date after giving effect to the Transactions, Holdings or one of its Subsidiaries will
own or have the right to use the Intellectual Property and applications therefor referred to in such schedule. Except as disclosed in Schedule 14(a), (b) and (c) of the perfection certificate delivered pursuant to subsection 6.1(n), no
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ownership, validity, enforceability or use of such Intellectual Property by Holdings or any of its Subsidiaries or applications therefor, challenging or questioning the validity or effectiveness
of any of the foregoing, in any jurisdiction, domestic or foreign, except to the extent such claims, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 5.17. Environmental Matters. Except insofar as any exceptions to the following, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect: 
 (a) the properties owned, leased or otherwise
operated by Holdings or any of its Subsidiaries do not contain, and have not previously contained, therein, thereon or thereunder, including, without limitation, the soil and groundwater thereunder, any Hazardous Materials in amounts or
concentrations that constitute a violation of, or could reasonably be expected to give rise to liability under, Environmental Laws; 
 (b) There are no facts, circumstances or conditions that could reasonably be expected to (i) result in a violation of any Environmental Law by Holdings or any of its Subsidiaries that could interfere
with the continued operation of, or impair the otherwise fair saleable value of the properties owned, leased or otherwise operated by Holdings or any of its Subsidiaries or (ii) result in a violation of or otherwise give rise to liability on
the part of Holdings or any of its Subsidiaries under any Environmental Laws in respect of Hazardous Materials; 
 (c) neither Holdings nor any of its Subsidiaries has received or is aware of any complaint, notice of violation, alleged violation or notice of investigation or of potential liability under Environmental Laws with regard to Holdings or any
of its Subsidiaries, or any properties owned, leased or otherwise operated by any of them, nor does Holdings or any of its Subsidiaries have knowledge that any such action is being threatened; 
 (d) there are no administrative actions or judicial proceedings pending or, to the knowledge of any Credit Party, threatened
under any Environmental Law to which Holdings or any of its Subsidiaries is or could reasonably be expected to be a party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders or agreements to
which Holdings or any of its Subsidiaries is a party, which could reasonably be expected to result in liability or costs on the part of Holdings or any of its Subsidiaries under any Environmental Law; 
 (e) no Lien has been recorded or, to the knowledge of any Credit Party, threatened under any Environmental Law with respect
to any Fee Property or assets of Holdings or any of its Subsidiaries and no Lien has been recorded or, to the knowledge of any Credit Party, threatened under any Environmental Law with respect to any other Real Property of Holdings or any of its
Subsidiaries that could reasonably be expected to result in liability or costs on the part of Holdings or any of its Subsidiaries under any Environmental Law; 
 (f) no Fee Property is (x) listed, or to the knowledge of any Credit Party proposed for listing, on the National
Priorities List promulgated pursuant to the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CER-CLA”), or (y) listed on the Comprehensive Environmental Response,
Compensation and Liability Information System List promulgated pursuant to CERCLA, or (z) included on any similar list

  

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maintained by any Governmental Authority and there is no such listing, or to the knowledge of any Credit Party proposed listing, with respect to any other Real Property of Holdings or any of its
Subsidiaries that could reasonably be expected to result in liability or costs on the part of Holdings or any of its Subsidiaries under any Environmental Law; and 
 (g) neither Holdings nor any of its Subsidiaries is required to take or finance any investigatory, response or other
corrective action or is currently conducting any investigatory, response or other corrective action pursuant to any Environmental Law at any Real Property or at any other location, nor has any of Holdings or any of its Subsidiaries assumed by
contract, agreement or operation of law any obligation of any other Person under any Environmental Law. 
 5.18. Accuracy and
Completeness of Information. All factual information heretofore or contemporaneously furnished by or on behalf of Holdings or any of its Subsidiaries to the Administrative Agent, the Arrangers or any Lender in writing (including all information
contained in the Credit Documents, the Confidential Information Memorandum dated October 2009 delivered to the Lenders in connection with the syndication of the facilities hereunder (the “Confidential Information Memorandum”)) for
purposes of or in connection with this Agreement or any transaction contemplated herein is, and all other factual information furnished by or on behalf of any such Persons in writing to the Administrative Agent, the Arrangers or any Lender after the
Closing Date will be, true and accurate in all material respects on the date as of which such information is dated and, taken together, not incomplete by omitting to state any material fact necessary to make such information not misleading at such
time in light of the circumstances under which such information was provided; provided that, with respect to projections Holdings represents only that the projections contained in such materials are based on good faith estimates and
assumptions believed by Holdings and the Borrowers to be reasonable and attainable at the time made (it being understood that projections are not to be viewed as facts and are subject to significant uncertainties and contingencies and that actual
results may differ and such differences may be material). As of the Closing Date, there is no fact known to any Credit Party that could reasonably be expected to have a Material Adverse Effect or that would be material to an understanding of the
financial condition, business, properties or prospects of any Credit Party that has not been expressly disclosed herein, in the other Credit Documents, in the Confidential Information Memoranda or in any other documents, certificates and statements
furnished to the Administrative Agent and the Lenders for use in connection with the transactions contemplated hereby and by the other Credit Documents. The Credit Parties understand that all such statements, representations and warranties shall be
deemed to have been relied upon by the Lenders as a material inducement to make each extension of credit hereunder. 
 5.19.
Labor Matters. Neither Holdings nor any of its Subsidiaries is engaged in any unfair labor practice. There is (i) no unfair labor practice complaint pending against Holdings or any of its Subsidiaries or, to the knowledge of any Credit
Party, threatened against Holdings or any of its Subsidiaries, before the National Labor Relations Board or any other Governmental Authority, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is
so pending against Holdings or any of its Subsidiaries or, to the knowledge of any Credit Party after due inquiry, threatened against Holdings or any of its Subsidiaries, (ii) no strike, labor dispute, slowdown or stoppage pending against
Holdings or any of its Subsidiaries or, to the knowledge of any Credit Party, after due inquiry, threatened against Holdings or any of its Subsidiaries and (iii) to the best knowledge of any Credit Party after due inquiry, no union
representation question existing with respect to the employees of Holdings or any of its Subsidiaries and, to the knowledge of any Credit Party, no union organizing

  

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activities are taking place, except such as could not, with respect to any matter specified in clause (i), (ii) or (iii) above, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. Holdings and each of its Subsidiaries have paid to their respective employees all minimum and overtime wages required by law to be paid to their respective employees. 
 5.20. Solvency. Immediately before and after the consummation of the Transactions and each extension of credit hereunder (including
the Tranche B Term Loans), the Credit Parties, taken as a whole, will be Solvent. 
 5.21. Use of Proceeds. The Borrowers
will use the proceeds of the Tranche B Term Loans (i) to consummate the Refinancing and (ii) to pay fees and expenses incurred in connection with the entry into this Agreement and the other Credit Documents, the Refinancing and related
transactions. The proceeds of all Revolving Credit Loans after the Closing Date will be used for Permitted Acquisitions, working capital and general corporate purposes. 
 5.22. Regulation H. No Mortgage encumbers improved real property that is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special
flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968. 
 5.23.
[Reserved]. 
 5.24. [Reserved]. 
 5.25. Capitalization. (a) As of the Closing Date, the authorized Capital Stock of Holdings consists of an unlimited number of Class A Common Units, an unlimited number of Class B Common
Units, an unlimited number of Class C Common Units, an unlimited number of Class D Common Units, an unlimited number of Series A Preferred Units and up to 15,000,000 Series B Preferred Units. All such outstanding shares of common stock have been
duly and validly issued, are fully paid and non-assessable and are free of preemptive rights. As of the Closing Date, Holdings has no outstanding securities convertible into or exchangeable for its capital stock or outstanding any rights to
subscribe for or to purchase, or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating to, its capital stock. 
 (b) An accurate organizational chart, showing the ownership structure of Holdings and its Subsidiaries on the Closing Date is set forth on
Schedule 5.25(b) hereto. 
 5.26. Indebtedness. Schedule 5.26 hereto sets forth a true and complete list of
all Indebtedness (other than Loans under this Agreement and the related Guarantees) of Holdings, the Borrowers and their respective Subsidiaries as of the Closing Date after giving effect to the Transactions that is to remain outstanding after
giving effect to the incurrence of Loans on such date (excluding the Loans and the Letters of Credit, the “Existing Indebtedness”), in each case showing the aggregate principal amount thereof and the name of the relevant borrower
and any other entity that directly or indirectly guaranteed such debt. 
  

 
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 5.27. Anti-Terrorism Laws. (a) None of Holdings, any of its Subsidiaries or to
their knowledge, any of their respective non-Controlled Affiliates is in violation of any laws relating to terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (“Executive Order No. 13224”), and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. 

(b) None of Holdings, its Subsidiaries or to their knowledge, any of their respective non-Controlled Affiliates or their respective
brokers or other agents acting or benefiting in any capacity in connection with the Loans is any of the following: 
 (i) a Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; 
 (ii) a Person or entity owned or controlled by, or acting for or on behalf of, any Person or entity that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order
No. 13224; 
 (iii) a Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law; 
 (iv) a Person or entity that commits, threatens or
conspires to commit or supports “terrorism” as defined in Executive Order No. 13224; or 
 (v) a
Person or entity that is named as a “specially designated national and blocked person” on the most current list published by the United States Treasury Department Office of Foreign Assets Control (“OFAC”) at its official
website or any replacement website or other replacement official publication of such list. 
 None of Holdings or any of its
Subsidiaries or, to the knowledge of Holdings, any of their respective brokers or other agents acting in any capacity in connection with the Loans (i) conducts any business or engages in making or receiving any contribution of funds, goods or
services to or for the benefit of any Person described in clause (b) above, (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224, or
(iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. 
 5.28. Agreements with Affiliates. Except for agreements or arrangements with Affiliates wherein Holdings or one or more of its
Subsidiaries provides services to such Affiliates for fair consideration or which are set forth on Schedule 8.12 hereto or which are otherwise in compliance with subsection 8.12, neither Holdings nor any of its Subsidiaries has (i) any
written agreements or binding arrangements of any kind with any Affiliate or (ii) any management or consulting agreements of any kind with any Affiliate, other than those between Holdings and its Subsidiaries or referred to in this subsection
5.28. 
  

 
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 SECTION 6. CONDITIONS PRECEDENT 
 6.1. Conditions to Initial Loans and Letters of Credit. The obligation of each Lender to make its Loans, and the obligation of the
Issuing Lender to issue any Letter of Credit, on the Closing Date are subject to the satisfaction, or waiver by such Lender, immediately prior to or concurrently with the making of such Loans or the issuance of such Letters of Credit, as the case
may be, of each of the conditions in subsection 6.2 and the following conditions: 
 (a) Agreement; Notes.
The Administrative Agent shall have received for each Lender a counterpart of this Agreement duly executed and delivered by an Officer of each Credit Party. The Administrative Agent shall have received (i) for the account of each Revolving
Credit Lender requesting the same pursuant to subsection 4.16(e) a reasonable time prior to the Closing Date, a Revolving Credit Note of the Borrowers conforming to the requirements of this Agreement and executed by a duly authorized officer of each
Borrower, (ii) for the account of each Tranche B Term Loan Lender requesting the same pursuant to subsection 4.16(e) a reasonable time prior to the Closing Date, a Tranche B Term Note, conforming to the requirements of this Agreement and
executed by a duly authorized officer of each Borrower, and (iii) if requested by the Swing Line Lender a reasonable time prior to the Closing Date, for the account of the Swing Line Lender, a Swing Line Note, conforming to the requirements of
this Agreement and executed by an officer of each Borrower. 
 (b) Refinancing. The Administrative Agent
shall have received documentation reasonably satisfactory to the Administrative Agent in form and substance evidencing the repayment in full or irrevocable redemption (and deposit of necessary funds with the trustee, if applicable) the entire
principal amount of each of the Existing Credit Agreement, the Coto Credit Agreement, the UK II Mezzanine Facility, the UK II Credit Facility, the Senior Discount Notes, the Senior Subordinated Notes and the Coto Preferred Stock and, in each case,
the discharge of all associated obligations and, where applicable, associated liens. 
 (c) Capitalization;
Capital Structure. (i) The Administrative Agent shall have received an Officer’s Certificate of Holdings, dated the Closing Date, stating that ABRY and its Controlled Investment Affiliates, collectively, indirectly beneficially own or
control no less than a majority of the voting and economic interests in Holdings and have the right to designate no less than a majority of the members of the Board of Directors of each of Holdings and each Borrower, and that Holdings owns 100% of
the outstanding Capital Stock of each Borrower. 
 (ii) The terms, conditions and documentation of the governing
documents of Holdings and each of its Subsidiaries shall be in form and substance reasonably satisfactory to the Arrangers. 
 The making of Loans hereunder by the Lenders and the Administrative Agent shall be deemed to evidence the satisfaction of the Lenders and the Administrative Agent with such of the matters referenced and
in clause (ii) of this paragraph (c) as shall have been disclosed and made available to the Arrangers prior to the Closing Date. 
 (d) Lien Searches; Lien Perfection. (i) The Administrative Agent shall have received the results of a search of UCC, tax and judgment filings, each of a recent date, made with respect to
Holdings and its Subsidiaries in the jurisdictions set forth on Schedule 6. 1(d)(i) hereto, together with copies of financing statements disclosed by such searches, and such searches shall disclose no Liens on any assets encumbered by any
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satisfactory evidence of the release of such Liens, (ii) the Administrative Agent shall have the results of intellectual property searches, and such searches shall disclose no Liens on any
Intellectual Property owned by Holdings or any of its Subsidiaries and encumbered by any Security Document except for Liens permitted hereunder or, if unpermitted Liens are disclosed, the Administrative Agent shall have received satisfactory
evidence of the release of such Liens and (iii) the Administrative Agent shall have received UCC financing statements in appropriate form for filing under the UCC, security agreements in appropriate form for filing with the United States Patent
and Trademark Office and United States Copyright Office and such other documents as may be necessary or appropriate or, in the opinion of the Administrative Agent, desirable to perfect the Liens created, or purported to be created, by the Security
Documents in the United States. 
 (e) Guarantee and Security Agreement Deliveries. The Administrative
Agent shall have received (i) the Guarantees and the Security Agreement executed and delivered by the parties thereto, (ii) certificates representing (A) 100% of all issued and outstanding Capital Stock of each Domestic Subsidiary and
(B) 100% of all issued and outstanding Capital Stock of each Foreign Subsidiary that is owned by a Credit Party (provided that the aggregate amount of voting Capital Stock of any Foreign Subsidiary that may be pledged by all Credit Parties
under this sub-clause (B) shall not exceed 65% of the total outstanding voting Capital Stock of such Foreign Subsidiary), in each case including undated stock powers for each such certificate, executed in blank and delivered by a duly
authorized officer of the applicable pledgor, (iii) all intercompany notes evidencing loans made by any Credit Party to any other Credit Party or any other Subsidiary, together with instruments of transfer or assignment executed in blank with
respect thereto (including the notes evidencing the loans made on the Closing Date by Language Line to Language Line Services UK II Limited and Language Line Limited), and (iv) copies of each of the Security Documents, which shall have been
executed and delivered by each of the proper parties thereto. 
 (f) Consents and Approvals. All material
consents and approvals required to be obtained from any Governmental Authority or other Person in connection with the Transactions shall have been obtained, and all applicable waiting periods and appeal periods shall have expired, and there shall be
no governmental or judicial action, actual or threatened, that could reasonably be expected to restrain, prevent or impose materially burdensome conditions on the Transactions. Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunctive relief or other restraint pending or notified prohibiting or imposing materially adverse conditions upon the making of Loans or the issuance of the Letters of Credit. 
 (g) Landlord Access Agreement. Except with respect to the Landlord Access Agreements described on Schedule
7.10, with respect to each Leased Property (x) located in the United States and (y) in which any Credit Party holds any interest, each Credit Party shall have used commercially reasonable efforts to deliver to the Administrative Agent
(i) to the extent reasonably requested by the Administrative Agent, a landlord access agreement substantially in the form of Exhibit K hereto or Bailee Letter, with such changes as shall be reasonably acceptable to the Administrative
Agent and (ii) to the extent requested by the Administrative Agent, copies of leases in which a Credit Party holds any interest. 
  

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 (h) Legal Opinions. The Administrative Agent shall have received,
dated the Closing Date and addressed to the Administrative Agent, the Arrangers and the Lenders, an opinion of Kirkland & Ellis LLP, New York, Delaware, California and Illinois counsel to the Credit Parties, in substantially the form of
Exhibit L hereto. 
 (i) Closing Certificate. The Administrative Agent shall have received a
closing certificate of each Credit Party dated the Closing Date, in substantially the form of Exhibit M hereto, with appropriate insertions and attachments, in form and substance reasonably satisfactory to the Administrative Agent, executed
by the President or any Vice President and the Secretary or any Assistant Secretary (or other appropriate officers or representatives) of Holdings and its Subsidiaries, respectively. 
 (j) Solvency Certificate. The Administrative Agent shall have received an Officer’s Certificate of Holdings, in
substantially the form of Exhibit N hereto, together with such other evidence reasonably requested by the Lenders, confirming the Solvency of Holdings and its Subsidiaries on a consolidated basis after giving effect to the Transactions.

 (k) Insurance. The Administrative Agent shall have received (i) a schedule describing all risk
property insurance, business interruption insurance, comprehensive general liability insurance, workers’ compensation/employer’s liability insurance, automobile liability insurance and excess/umbrella liability insurance maintained by
Holdings and its Subsidiaries pursuant to subsection 7.5 and (ii) except as described on Schedule 7.10, binders (or other customary evidence as to the obtaining and maintenance by Holdings of such insurance at the Closing Date) for each
policy set forth on such schedule to the extent insuring against casualty and other customary risks and naming the Administrative Agent as an additional insured and/or loss payee. 
 (l) Control Agreements. Except with respect to the Control Agreements described on Schedule 7.10, the
Administrative Agent shall have received a Control Agreement in form and substance reasonably satisfactory to the Administrative Agent, duly authorized, executed and delivered by the parties thereto, with respect to each Deposit Account, Securities
Account and Commodities Account maintained by any Credit Party and denoted on the perfection certificate delivered pursuant to subsection 6.1(m) as a Controlled Account (as defined in the Security Agreement). 
 (m) Perfection Certificate. The Administrative Agent shall have received a perfection certificate, substantially in
the form of Exhibit O-1 hereto, duly authorized, executed and delivered by the Credit Parties and otherwise reasonably satisfactory to the Administrative Agent. 
 (n) Indebtedness. After giving effect to the Transactions, on the Closing Date, neither Holdings nor any of its
Subsidiaries shall have any outstanding Indebtedness for borrowed money or preferred stock other than (x) Indebtedness under the Credit Documents, (y) Indebtedness that is the subject of an irrevocable notice of redemption (and deposit of
necessary funds with the trustee, if applicable) in form and substance satisfactory to the Administrative Agent and (z) Indebtedness set forth on Schedule 5.26 hereto. 
  

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 (o) Material Adverse Effect. Since December 31, 2008, there
shall have been no change, event or development (whether or not covered by insurance) which has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 (p) Officer’s Certificate. The Administrative Agent shall have received an Officer’s Certificate of
Holdings, dated the Closing Date, (i) to the effect set forth in subsections 6.2(a) and (b) and (ii) to the effect that all conditions precedent to the making of such initial Loans (except any such condition precedent the satisfaction
of which is to be satisfactory to, or subjectively determined by, the Administrative Agent, the Arrangers or any Lender) have been satisfied. 
 (q) Corporate Documents. The Lenders shall have received (i) a copy of the articles or certificate of incorporation (or equivalent constituent document) of each Credit Party, certified as of a
recent date by the Secretary of State of the state of organization of such Credit Party, together with certificates of such official attesting to the good standing of each such Credit Party; and (ii) an Officer’s Certificate of each Credit
Party executed on its behalf by the Secretary or an Assistant Secretary of such Credit Party certifying (A) the names and true signatures of each officer of such Credit Party who has been authorized to execute and deliver any Credit Document or
other document required hereunder to be executed and delivered by or on behalf of such Credit Party, (B) the by-laws (or equivalent constituent document) of such Credit Party as in effect on the date of such certification, (C) the
resolutions of such Credit Party’s Board of Directors approving and authorizing the execution, delivery and performance of this Agreement and the other Credit Documents to which it is a party and (D) that there have been no changes in the
certificate of incorporation (or equivalent constituent document) of such Credit Party from the certificate of incorporation (or equivalent constituent document) delivered pursuant to clause (i) above. 
 (r) Fees. The Agents shall have received all costs, fees, expenses (including the fees and expenses of Cahill
Gordon & Reindel LLP) and other consideration presented for payment required to be paid on or before the Closing Date. 
 6.2. Conditions to All Loans and Letters of Credit. The obligation of (x) each Lender to make any Loan (other than any Revolving Credit Loan (i) the proceeds of which are to be used to
repay Refunded Swing Line Loans or (ii) to be made as contemplated by subsections 3.8(b) and (c), which shall be made unless an event of the type described in paragraph (f) of Section 9 has occurred and is continuing) and (y) the
Issuing Lender to issue any Letter of Credit, is subject to the satisfaction of the following conditions precedent on the relevant Borrowing Date: 
 (a) Representations and Warranties. Each of the representations and warranties made in or pursuant to Section 5 or which are contained in any other Credit Document shall be true and correct in
all material respects on and as of the date of such Loan or of the issuance of such Letter of Credit as if made on and as of such date (unless stated to relate to a specific earlier date, in which case, such representations and warranties shall be
true and correct in all material respects as of such earlier date), except, in each case, to the extent such representations and warranties are qualified as to materiality or a Material Adverse Effect, such representations and warranties shall be
true and correct as if made on and as of such date or as of such earlier date, as applicable. 
  

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 (b) No Default or Event of Default. No Default or Event of Default
shall have occurred and be continuing on such Borrowing Date or after giving effect to such Loan to be made or such Letter of Credit to be issued on such Borrowing Date. 
 (c) Pro Forma Compliance. After giving effect to (x) the making of such Loan or the issuance of such Letter of
Credit to be made on such Borrowing Date and (y) the incurrence of any other Indebtedness since the end of the most recent period for which financial statements were delivered or required to be delivered, Holdings shall be in compliance with
subsection 8.9(A) for the most recent period for which financial statements were delivered or required to be delivered. 
 Each borrowing by the
Borrowers hereunder and the issuance of each Letter of Credit by the Issuing Lender hereunder shall constitute a representation and warranty by Holdings and the Borrowers as of the date of such borrowing or issuance that the conditions in clauses
(a) and (b) and of this subsection 6.2 have been satisfied. 
 6.3. Permitted Acquisitions. The obligation of
the Lenders to make any Loan or otherwise extend any credit to the Borrowers, the proceeds of which will be used to make a Permitted Acquisition, is subject to the satisfaction of the conditions set forth in subsection 6.2 and to the further
conditions precedent that: 
 (i) Line of Business Compliance. Immediately after giving effect to such
Permitted Acquisition, the Credit Parties would be in compliance with subsection 8.14. 
 (ii) Satisfactory
Environmental Reports. To the extent available, the Administrative Agent shall have received a Phase I environmental report with respect to any Permitted Acquisition the consideration for which is in excess of $10.0 million, the results of which
shall be satisfactory to the Administrative Agent acting reasonably. 
 (iii) Receipt of Applicable
Acquisition Documents. With respect to any Permitted Acquisition the consideration for which is in excess of $10.0 million, the Administrative Agent shall have received the acquisition agreement and all other documents and agreements related to
such Permitted Acquisition (the “Applicable Acquisition Documents”), and such Permitted Acquisition shall be consummated in accordance with the terms of the Applicable Acquisition Documents and all Requirements of Law. 

(iv) Financial Statements. Holdings shall have used its commercially reasonable efforts to deliver to the
Administrative Agent and the Lenders at least 10 Business Days prior to the date of consummation of such Permitted Acquisition and shall have delivered in any event, prior to the date of consummation of such Permitted Acquisition, financial
statements of the entity to be acquired (including but not limited to audited balance sheets and reports of certified public accountants to the extent available); financial projections and budgets; and any other information and documents relating to
the entity to be acquired, in each case as may be reasonably requested by the Administrative Agent. 
  

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 (v) Lien Searches. Holdings shall have delivered to the
Administrative Agent, certified copies of lien search reports, tax lien, judgment lien and pending lawsuit searches or equivalent reports each of a recent date listing all effective financial statements or comparable documents that name the entity
to be acquired or Subsidiary of the entity to be acquired as debtor and that are filed in those jurisdictions in which any property of each such Person is located and each such Person’s principal place of business is located, none of which
encumber the Collateral covered by the Security Documents except for Permitted Liens. Holdings shall have provided evidence reasonably satisfactory to the Administrative Agent that all Liens applicable to the Capital Stock of the entity to be
acquired and Liens (other than Permitted Liens) on the property of the entity to be acquired and of each Subsidiary of the entity to be acquired have been released and terminated. 
 (vi) Receipt of Security Interests. All Collateral to be acquired shall have been pledged pursuant to the Security
Documents in accordance with subsection 7.9, and the Lenders shall have a perfected first priority security interest therein subject to no Liens, except for the Liens created by the Security Documents and Permitted Liens. 
 SECTION 7. AFFIRMATIVE COVENANTS 
 Holdings and the Borrowers hereby agree that, so long as any of the Commitments remain in effect, any Loan, Note or L/C Obligation remains outstanding and unpaid, any amount remains available to be drawn
under any Letter of Credit (unless cash in an amount equal to such amount has been deposited to a cash collateral account established by the Administrative Agent) or any other amount is owing to any Lender or the Administrative Agent hereunder or
under any of the other Credit Documents, Holdings and the Borrowers shall, and, in the case of the agreements contained in subsections 7.3 through 7.6, and 7.8 through 7.11, Holdings shall cause each of its Subsidiaries to: 
 7.1. Financial Statements. Furnish to the Administrative Agent (via Intralinks or any other method reasonably acceptable to the
Administrative Agent (which the Administrative Agent shall deliver promptly to each Lender)): 
 (a) within
forty-five (45) days after the last day of each of the first three (3) quarters of each fiscal year of Holdings (beginning with the fiscal quarter ending March 31, 2010), the balance sheets of Holdings on a consolidated basis with its
Subsidiaries as at the end of such quarter and as of the end of the preceding fiscal year, and the related statements of operations and the related statements of cash flows of Holdings on a consolidated basis with its Subsidiaries for such quarter
and for the elapsed portion of the year ended with the last day of such quarter, which shall set forth in comparative form such figures as at the end of and for such quarter and corresponding period of the prior fiscal year appropriate prior period
and shall be certified in an Officer’s Certificate of Holdings (executed on its behalf by a Responsible Officer of Holdings) to have been prepared in accordance with GAAP (or, with respect to any financial statements of Language Line Services
UK Limited or its direct or indirect Subsidiaries for any period ended prior to the Closing Date, UK GAAP) and to present fairly in all material respects the financial position of Holdings on a consolidated basis with its Subsidiaries as at the end
of such period and the results of operations for such period, and for the elapsed portion of the year ended with the last day of such period, subject only to normal year-end and audit adjustments (including notes to the applicable financial
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 (b) within ninety (90) days after the end of each fiscal year of
Holdings (beginning with the fiscal year ending December 31, 2009), the audited consolidated balance sheet of Holdings and its Subsidiaries as of the end of such fiscal year and the related audited consolidated statements of operations for such
fiscal year and for the previous fiscal year, the related audited consolidated statements of cash flow and stockholders’ equity for such fiscal year and for the previous fiscal year, which shall be accompanied by an opinion of
PricewaterhouseCoopers LLP or other independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent, accompanied by a report thereon, without a “going concern” or like
qualification or exception, or qualification arising out of the scope of the audit, or qualification which would affect the computation of financial covenants; and 
 (c) as soon as available, but in any event not later than 45 days after the beginning of each fiscal year of Holdings, a
preliminary consolidated operating budget for Holdings and its Subsidiaries; and as soon as available, any material revision to or any final revision of any such preliminary annual operating budget or any such consolidated operating budget;

 all such financial statements described in subsections 7.1(a) and (b) to be complete and correct in all material respects (subject,
in the case of interim statements, to normal year end audit adjustments and the absence of footnotes) and to be prepared in reasonable detail and in accordance with GAAP (or, with respect to any financial statements of Language Line Services UK
Limited or its direct or indirect Subsidiaries for any period ended prior to the Closing Date, UK GAAP). 
 7.2.
Certificates; Other Information. Furnish to the Administrative Agent via Intralinks or any other method reasonably acceptable to the Administrative Agent and as applicable (which the Administrative Agent shall promptly deliver to each
Lender): 
 (a) concurrently with the delivery of the financial statements referred to in subsections
7.1(a) and (b), an Officer’s Certificate of Holdings in form and substance reasonably acceptable to the Administrative Agent stating that during such period: 
 (i) no Subsidiary has been formed or acquired (or, if any such Subsidiary has been formed or acquired, Holdings and any other
relevant Credit Party have complied with the requirements of subsection 7.9), 
 (ii) neither Holdings nor any of
its Subsidiaries has changed its name or jurisdiction of organization without complying with the requirements of this Agreement and the Security Documents with respect thereto or otherwise stating that such information is included in the perfection
certificate supplement delivered pursuant to subsection 7.2(h), and 
 (iii) Holdings and its Subsidiaries have
observed or performed all of the covenants and other agreements, and satisfied every material condition, contained in this Agreement and the other Credit Documents to be observed, performed or satisfied by it, and that the officer executing such
Officer’s Certificate on behalf of Holdings has obtained no knowledge of any Default or Event of Default, in each case, except as specified in such certificate, and showing in detail as of the end of the related accounting period the figures
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8.1(g), 8.9, 8.11(d), the calculation of Cumulative Credit, solely with respect to the fourth quarter of any fiscal year, the calculation of Excess Cash Flow and any other calculations reasonably
requested by the Administrative Agent with respect to the quantitative aspects of the other covenants contained herein; 
 (b) promptly upon receipt thereof, copies of all final reports submitted to Holdings or any of its Subsidiaries by independent certified public accountants in connection with each annual, interim or special audit of the books of Holdings or
any of its Subsidiaries made by such accountants, and any final comment letter submitted by such accountants to management in connection with their annual audit; 
 (c) promptly upon their becoming available, copies of all financial statements, reports, notices and proxy statements sent or
made available to the public generally by Holdings or any of its Subsidiaries, if any, and all regular and periodic reports and all final registration statements and final prospectuses, if any, filed by Holdings or any of its Subsidiaries with any
securities exchange or with the SEC or any Governmental Authority succeeding to any of its functions; 
 (d)
concurrently with the delivery of the financial statements referred to in subsections 7.1(a) and (b), a management summary describing and analyzing the performance of Holdings and its Subsidiaries during the periods covered by such financial
statements; 
 (e) within 45 days after the end of each fiscal quarter, a summary of all Asset Sales,
Destructions and Takings made during such fiscal quarter, including the amount of all Net Proceeds from such Asset Sales, Destructions and Takings not previously applied to prepayments of the Loans pursuant to the proviso to subsection 4.5(b) and
(c), accompanied by an Officer’s Certificate of Holdings executed on its behalf by an Officer of Holdings to the effect that Holdings and its Subsidiaries intend to apply the Net Proceeds from such Asset Sales, Destructions and Takings in
accordance with clause (b) and (c) of the definition of Net Proceeds or Section 12.2; 
 (f)
promptly, such additional financial and other information as the Administrative Agent may from time to time reasonably request; 
 (g) promptly, and in any event within three Business Days after an Officer of Holdings or either Borrower obtains knowledge thereof, notice of the occurrence of any event which constitutes a Default or
Event of Default specifying the nature and extent thereof and what action the Borrowers proposes to take with respect thereto; and 
 (h) concurrently with the delivery of the Officer’s Certificate required pursuant to subsection 7.2(a), a perfection certificate supplement substantially in the form of Exhibit O-2 hereto or a
statement in such Officer’s Certificate that there has been no change in the information included in the perfection certificate as most recently supplemented. 
 7.3. Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its obligations and liabilities of whatever nature,
except (a) when the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of Holdings or any of its
Subsidiaries, as the case may be, (b) for delinquent obligations which do not, in

  

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the aggregate, have a Material Adverse Effect, (c) for trade and other accounts payable in the ordinary course of business which are not overdue for a period of more than 90 days or, if
overdue for more than 90 days, as to which a dispute exists and adequate reserves in conformity with GAAP have been established on the books of Holdings or any of its Subsidiaries, as the case may be and (d) in the event any failure to
discharge or otherwise satisfy any such obligation or liability results in the incurrence of a Lien against any of the collateral, such Lien and the contest thereof shall satisfy the Contested Collateral Lien Conditions. 
 7.4. Conduct of Business and Maintenance of Existence. Except as otherwise permitted by subsections 8.4 and 8.5, preserve, renew and
keep in full force and effect its corporate existence and take all reasonable action to maintain all material rights, material privileges, franchises, copyrights, patents, trademarks and trade names necessary or desirable in the normal conduct of
its business except for rights, privileges, franchises, copyrights, patents, trademarks and trade names the loss of which would not, in the aggregate, have a Material Adverse Effect; and comply with all applicable Requirements of Law except to the
extent that the failure to comply therewith would not, in the aggregate, have a Material Adverse Effect. This paragraph shall not be deemed to restrict Holdings or any of its Subsidiaries from abandoning or failing to pursue or enforce any
Intellectual Property or registrations or applications therefor, which actions or inactions are taken in Holdings’ or its Subsidiary’s commercially reasonable discretion and would not, in the aggregate, have a Material Adverse Effect.

 7.5. Maintenance of Property; Insurance. (a) Keep all Real Property, other material property and assets useful
and necessary in its business in good working order and condition (ordinary wear and tear excepted). 
 (b) Subject to the other
provisions of this subsection 7.5, maintain at its own expense with insurers that have an A.M. Best rating of A- or better insurance on all its property and assets in at least such amounts and with only such deductibles as are usually maintained by,
and against at least such risks (including, but not limited to, physical hazard insurance on an “all risk” basis in an amount equal to the full replacement cost of the Collateral, general liability, public liability coverage insurance and,
as an extension to the “all risk” insurance, business interruption insurance in an agreed amount equal to twelve (12) months projected loss of net profits, continuing expense (including debt service payments) and shall contain an
agreed amount endorsement waiving any coinsurance penalty, cover the major suppliers and customers of Holdings and its Subsidiaries, include an amount of not less than $1,000,000 for extra expenses and service interruption and have a deductible not
exceeding thirty (30) days, to the extent relating to the Collateral such other insurance against such risks as the Administrative Agent may from time to time reasonably require) as are usual for similarly situated companies engaged in
similarly situated industries, and in form, with terms and conditions, limits and deductibles as shall be reasonably acceptable to the Administrative Agent. 
 (c) (A) Ensure that each insurance policy described in subsection 7.5(b) shall provide that (i) the Administrative Agent is permitted to pay any premium therefor within thirty (30) days after
receipt of any notice stating that such premium has not been paid when due; (ii) subject to customary exceptions, all losses thereunder shall be payable notwithstanding any act or negligence of Holdings or any of its Subsidiaries or its agents
or employees which otherwise might have resulted in a forfeiture of all or a part of such insurance payments; (iii) to the extent such insurance policy constitutes property insurance, a Credit Party is the named insured and the Administrative
Agent and the Lenders shall be additional insureds, and all losses payable thereunder shall be payable to the Administrative Agent, as loss

  

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payee, pursuant to a standard non-contributory New York mortgagee endorsement and shall be in an amount at least sufficient to prevent coinsurance liability; (iv) with respect to liability
insurance, the Administrative Agent and the Lenders shall be named as additional insureds; it shall be understood that any obligation imposed upon any Credit Party, including but not limited to the obligation to pay premiums, shall be the sole
obligation of such Credit Party and not that of the Administrative Agent or the Lenders; (v) with respect to the property policies described in subsection 7.5(b) above, the interests of the Administrative Agent and the Lenders shall not be
invalidated by any action or inaction of any Credit Party, or any other Person, and shall insure the Administrative Agent and the Lenders regardless of any breach or violation by such Credit Party, or any other Person, of any warranties,
declarations or conditions of such policies; (vi) inasmuch as the liability policies described in subsection 7.5(b) above are written to cover more than one insured, all terms, conditions, insuring agreements and endorsements, with the
exception of the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured; and (vii) such insurance shall be primary without right of contribution of any other insurance carried by or on
behalf of the Administrative Agent and the Lenders with respect to its interests as such in this transaction and (B) use commercially reasonable efforts to ensure that each insurance policy described in subsection 7.5(b) will provide that
(i) the insurers thereunder shall waive all rights of subrogation against the Administrative Agent and the Lenders, any right of setoff or counterclaim and any other right to deduction, whether by attachment or otherwise and (ii) it may
not be modified, reduced, cancelled or otherwise terminated without at least thirty (30) days prior written notice to the Administrative Agent. 
 (d) As soon as available prior to the expiration of any insurance policy or policies required by this subsection 7.5, deliver to the Administrative Agent such insurance policy or policies renewing or
extending such expiring insurance policy or policies, renewal or extension insurance certificates or other reasonable evidence of renewal or extension providing that such insurance policy or policies are in full force and effect, in each case, as
shall be reasonably satisfactory to the Administrative Agent. 
 (e) Not purchase separate insurance policies concurrent in form
or contributing in the event of loss with the insurance policies described in subsection 7.5(b), unless the Administrative Agent is included thereon as an additional insured and, if applicable, with loss payable to the Administrative Agent under an
endorsement containing the provisions described in subsection 7.5(c) and to promptly notify the Administrative Agent whenever any such separate insurance policy is obtained and promptly deliver to the Administrative Agent the insurance policy or
insurance certificate evidencing such insurance, in each case as shall be reasonably satisfactory to the Administrative Agent. 
 (f) If there shall occur any Destruction involving any loss in excess of $5,000,000, promptly send to the Administrative Agent a notice setting forth the nature and extent of such Destruction; if there shall occur any Taking involving any
loss in excess of $5,000,000, promptly notify the Administrative Agent upon receiving notice of such Taking or commencement of proceedings therefor. The Administrative Agent may participate in any proceedings or negotiations which might result in
any Taking, and such Credit Party shall deliver or cause to be delivered to the Administrative Agent all instruments reasonably requested by it to permit such participation. The relevant Credit Party shall pay all reasonable fees, costs and expenses
incurred by the Administrative Agent in connection with any Taking and in seeking and obtaining any award or payment on account thereof. The net insurance proceeds and net awards in respect of such Destruction or Taking are hereby assigned and shall
be paid to the Administrative Agent. The relevant Credit Party shall take all steps reasonably necessary to notify the condemning authority of such assignment. All net insurance proceeds in respect of any Destruction and net awards in respect of any
Taking, shall be applied in accordance with the provisions of subsections 4.5(c) and 12.2. 
  

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 (g) In the event that the proceeds of any insurance claim are paid after the Administrative
Agent has exercised its right to foreclose after an Event of Default, pay such proceeds to the Administrative Agent to satisfy any deficiency remaining after such foreclosure. 
 (h) In the event the Credit Parties fail to take out or maintain the full insurance coverage required by this subsection 7.5, the
Administrative Agent, upon 30 days’ prior notice (unless the aforementioned insurance would lapse within such period, in which event notice should be given as soon as reasonably possible) to the Borrowers of any such failure, may (but shall not
be obligate to) take out the required policies of insurance and pay the premiums on the same. All amounts so advanced thereof by the Administrative Agent for such insurance shall become an additional obligation of the Borrowers to the Administrative
Agent and the Lenders, and the Borrowers shall forthwith pay such amounts to the Administrative Agent, together with interest thereon payable at the Alternate Base Rate plus the Applicable Margin from the date so advanced. 
 (i) If any portion of any Mortgaged Property is at any time located in an area identified by the Federal Emergency Management Agency (or any
successor agency) as a Special Flood Hazard Area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in effect or successor act thereto), then the Borrowers shall, or
shall cause each Credit Party to (i) maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated
pursuant to the Flood Insurance Laws and (ii) deliver to the Administrative Agent evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent. 
 (j) Notwithstanding anything to the contrary herein, no provision of this subsection 7.5 or any provision of this Agreement shall impose on
the Administrative Agent and the Lenders any duty or obligation to verify the existence or adequacy of the insurance coverage maintained by the Credit Parties, nor shall the Administrative Agent and the Lenders be responsible for any representations
or warranties made by or on behalf of the Credit Parties to any insurance broker, company or underwriter. 
 7.6. Inspection
of Property; Books and Records; Discussions. Keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities which permit financial statements
to be prepared in conformity with GAAP and all Requirements of Law; and permit representatives of the Administrative Agent or any Lender upon reasonable notice (made through the Administrative Agent and no more frequently than annually unless a
Default or Event of Default shall have occurred and be continuing) to visit and inspect any of its properties or assets and examine and make abstracts from any of its books and records (including without limitation insurance policies) at any
reasonable time and upon reasonable notice, and to discuss the business, operations, assets and financial and other condition of Holdings and its Subsidiaries with officers and employees thereof and with their independent certified public
accountants with prior reasonable notice to, and coordination with, the chief financial officer or the treasurer of Holdings. 
  

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 7.7. Notices. Promptly give notice to the Administrative Agent (to be distributed by
the Administrative Agent to the Lenders): 
 (a) of any (i) default or event of default under any instrument
or other agreement, guarantee or collateral document of Holdings or any of its Subsidiaries which default or event of default has not been waived and would have a Material Adverse Effect, or (ii) litigation, investigation (of which Holdings or
either Borrower is aware) or proceeding which may exist at any time between Holdings or any of its Subsidiaries and any Governmental Authority, or receipt of any notice of any environmental claim or assessment against Holdings or any of its
Subsidiaries by Governmental Authority, which in any such case would have a Material Adverse Effect; 
 (b) of
any litigation or proceeding against or insolvency of Holdings or any of its Subsidiaries (i) in which more than $5,000,000 of the amount claimed is not covered by insurance, (ii) in which injunctive or similar relief is sought which if
obtained would have a Material Adverse Effect or (iii) the subject matter of which is any Intellectual Property of any Person, and that could reasonably be expected to have a Material Adverse Effect; 
 (c) promptly, upon the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred,
could reasonably be expected to result in a Material Adverse Effect, a written notice specifying the nature thereof, what action Holdings, its Subsidiaries or other ERISA Entity have taken, are taking or propose to take with respect thereto, and,
when known, any action taken or threatened by the Internal Revenue Service, Department of Labor, PBGC or Multiemployer Plan sponsor with respect thereto; 
 (d) upon request by the Administrative Agent, copies of any of the following that relate to a Pension Plan or Employee Benefit Plan sponsored by or a Multiemployer Plan contributed to by Holdings or a
Borrower or, in the case of a Pension Plan or Employee Benefit Plan that is sponsored by or a Multiemployer Plan that is contributed to by an ERISA Entity (and not Holdings or a Borrower), copies of any of the following that are in the possession of
Holdings and the Borrowers: (i) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by any ERISA Entity with the Internal Revenue Service with respect to each Pension Plan; (ii) the most recent actuarial
valuation report for each Pension Plan; (iii) all notices received by any ERISA Entity from a Multiemployer Plan sponsor or any governmental agency concerning an ERISA Event; and (iv) such other documents or governmental reports or filings
relating to any Employee Benefit Plan as the Administrative Agent shall reasonably request; 
 (e) of any
occurrence that Holdings or the Borrowers would be otherwise required to file on Form 8-K with the SEC (if Holdings or the Borrowers were subject to the filing requirements of the Exchange Act); and 
 (f) of a Material Adverse Effect known to Holdings or any of its Subsidiaries. 
 Each notice pursuant to this subsection 7.7 shall be accompanied by an Officer’s Certificate of each Borrower, executed on its behalf by a Responsible
Officer of each Borrower setting forth in reasonable detail the occurrence referred to therein and (in the cases of clauses (a) through (c), (e) and (f)) stating what action (if any) the Borrowers propose to take with respect thereto. It
is understood that, in an effort to comply with its covenants hereunder, the Borrowers may from time to time deliver notices of events

  

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(including events of the types described above) to the Administrative Agent and/or the Lenders, and that the notification of any event or events shall not constitute an admission or determination
by the Borrowers that the event or events covered by such notice have resulted or will result in a Material Adverse Effect. 
 7.8. Environmental Laws. (a) Except to the extent the failure to do so would not, individually or in the aggregate, result in a Material Adverse Effect (i) comply with all Environmental Laws applicable to it, and obtain,
comply with and maintain any and all Environmental Permits necessary for its operations as conducted and as planned; (ii) use commercially reasonable efforts to ensure that all of its tenants, subtenants, contractors, subcontractors and
invitees comply with all Environmental Laws, and obtain, comply with and maintain any and all Environmental Permits, applicable to any of them; and (iii) comply in a timely manner with all orders and lawful directives regarding Environmental
Laws issued to Holdings or any of its Subsidiaries by any Governmental Authority, other than such orders and lawful directives as to which an appeal or other challenge has been timely and properly taken in good faith and with respect to which
reserves have been taken where necessary in accordance with GAAP. 
 (b) (i) Reasonably and prudently manage any liabilities or
potential liabilities that any of the Credit Parties, any of their respective operations (including, without limitation, disposal of Hazardous Materials), and any properties owned or leased by any of them, may be subject to under all applicable
Environmental Laws; and (ii) ensure that Holdings and its Subsidiaries undertake reasonable efforts to identify, and evaluate, issues of compliance with and liability under Environmental Laws prior to acquiring, directly or indirectly, any
ownership or leasehold interest in real property, or other interest in any real property that could reasonably be expected to give rise to Holdings or any of its Subsidiaries being subjected to liability under any Environmental Law as a result of
such acquisition. 
 (c) At the written request of the Administrative Agent or the Required Lenders, which request shall specify
in reasonable detail the basis therefor, each Credit Party will provide, at such Credit Party’s sole cost and expense, an environmental assessment report concerning any real property now or hereafter owned, leased or otherwise operated by such
Credit Party or any of its respective Subsidiaries, prepared by an environmental consulting firm reasonably satisfactory to the Administrative Agent, regarding the presence or absence of Hazardous Materials on, at, under or emanating from such real
property and indicating the potential cost of any investigative, removal, remedial or other response action in connection with such Hazardous Materials pursuant to Environmental Law; provided that such request may be properly made only if
(i) there has occurred and is continuing an Event of Default or (ii) the Administrative Agent or any of the Required Lenders reasonably believes that the Credit Party or its operations is not in compliance with or otherwise has liability under
Environmental Law with respect to such Real Property, or that there has been a release of Hazardous Materials at, on, under of from any such real property, and such noncompliance or release or related liabilities could reasonably be expected to form
the basis of a claim pursuant to Environmental Law or to otherwise result in liability under Environmental Law, in each case which, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect (in such events
as are listed in this subparagraph, the environmental assessment shall focus upon the noncompliance, release or other circumstances, as applicable). If any Credit Party fails to provide the same within 45 days after such proper request is made, the
Administrative Agent may order the same, and such Credit Party shall grant and hereby grants to the Administrative Agent and the Required Lenders and their agents access to such real property and specifically grants the Administrative Agent and the
Required Lenders an irrevocable non-exclusive license, subject to the rights of tenants, to perform such an assessment, all at such Credit Party’s sole cost and expense; and 
  

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 (d) Provide such information and certifications which the Administrative Agent may
reasonably request from time to time to evidence compliance with this subsection 7.8, to the extent such information is in the possession, custody or control of or is otherwise reasonably available to any Credit Party. 
 7.9. Additional Collateral and Guarantees. (a) Subject to subsection 7.9(d), with respect to any assets acquired after the
Closing Date by any Credit Party that are intended to be subject to the Lien created by any of the Security Documents but which are not so subject (but, in any event, excluding any assets described in paragraph (b) of this subsection 7.9),
promptly (and in any event within 75 days after the acquisition thereof): (x) execute and deliver to the Administrative Agent such amendments or supplements to the relevant Security Documents or such other documents as the Administrative Agent
shall deem reasonably necessary to grant to the Administrative Agent, for its benefit and for the benefit of the other Secured Parties, a Lien on such properties or assets subject to no Liens other than Permitted Liens, and (y) take all actions
reasonably necessary to cause such Lien to be duly perfected to the extent required by such Security Document in accordance with all applicable Requirements of Law, including, without limitation, the filing of financing statements in such
jurisdictions as may be reasonably requested by the Administrative Agent. Each Credit Party shall otherwise take such actions and execute and/or deliver to the Administrative Agent such documents (including, without limitation, customary legal
opinions) as the Administrative Agent shall reasonably require to confirm the validity, perfection and priority of the Lien of Security Documents against such after-acquired properties or assets. 
 (b) With respect to any Person that is or becomes a wholly owned Subsidiary that has assets having either book value or fair market value in
excess of $2,000,000, promptly (and in any event within 75 days after such Person becomes a Domestic Subsidiary or has such assets) (i) deliver to the Administrative Agent the certificates representing (A) 100% of all issued and
outstanding Capital Stock of each Domestic Subsidiary and (B) 100% of all issued and outstanding Capital Stock of each Foreign Subsidiary that is owned by a Credit Party (provided that the aggregate amount of Capital Stock of any Foreign
Subsidiary that may be pledged by all Credit Parties under this subclause (B) shall not exceed 65% of the total outstanding capital stock of such Foreign Subsidiary), in each case, together with undated stock powers executed and delivered in
blank by a duly authorized officer of Holdings or such Subsidiary, as the case may be, and (ii) cause such Subsidiary (other than a Foreign Subsidiary) (x) to become a party to the Subsidiary Guarantee and the Security Agreement or such
comparable documentation which is in form and substance reasonably satisfactory to the Administrative Agent, and (y) to take all actions reasonably necessary to cause the Lien created by the Security Agreement to be duly perfected to the extent
required by such agreement in accordance with all applicable Requirements of Law, including, without limitation, the filing of financing statements in such jurisdictions as may be reasonably requested by the Administrative Agent. 
 (c) If (A) at any time any two or more wholly-owned Domestic Subsidiaries in the aggregate not otherwise subject to subsection 7.9(b)
have assets having either a book value or fair market value in excess of $10,000,000 or produce revenue in excess of 5% of total revenue of Holdings and the Subsidiaries, comply with subsection 7.9(b) within the time frames set forth in such
subsection so that no two or more such Subsidiaries hold assets having either a book value or fair market value in excess of $10,000,000 or produce revenue in excess of 5% of total revenue of Holdings and the Subsidiaries or (B) any Subsidiary
which is not a Guarantor guarantees any Indebtedness of Holdings or any of its Subsidiaries (other than a guarantee by a Foreign Subsidiary of another Foreign Subsidiary’s Indebtedness), comply immediately with subsection 7.9(b) regardless of
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 (d) With respect to each Fee Property acquired after the Closing Date by Holdings, the
Borrowers or a Qualified Subsidiary, promptly grant to the Administrative Agent, within 75 days after such acquisition, security interests in and Mortgages on such Fee Property that, together with any improvements thereon, individually has a fair
market value of at least $1,000,000, to the extent such Fee Property is not already subject to a mortgage in favor of a third party permitted to remain in place under subsection 8.2, as additional security for the Secured Obligations (as defined in
the Mortgage). Such Mortgages shall be granted pursuant to documentation reasonably satisfactory in form and substance to the Administrative Agent and shall constitute valid and enforceable perfected Liens on Real Property subject only to Permitted
Encumbrances and such other Liens reasonably acceptable to the Administrative Agent. The Mortgages or instruments related thereto shall be duly recorded or filed in such manner and in such places as are required by law to establish, perfect,
preserve and protect the Liens in favor of the Administrative Agent required to be granted pursuant to the Mortgages and all taxes, fees and other charges payable in connection therewith shall be paid in full. The Borrowers shall otherwise take such
actions and execute and/or deliver to the Administrative Agent such documents as the Administrative Agent shall reasonably require to confirm the validity, perfection and priority of the Lien of any existing Mortgage or new Mortgage against such
after-acquired Fee Property (including, without limitation, a Title Policy, a “Life-of-Loan” Federal Emergency Management Agency Standard Flood Hazard Determination (together with a notice about special flood hazard area status and flood
disaster assistance duly executed by the Borrowers and each Credit Party relating thereto), a Survey and local counsel opinion (in form and substance reasonably satisfactory to the Administrative Agent) in respect of such Mortgage) within 75 days of
the written request of the Administrative Agent. 
 7.10. Post-Closing Collateral Matters. Execute and deliver the
documents and complete the tasks set forth on Schedule 7.10 hereto, in each case within the time limits specified on such schedule. 
 7.11. Compliance with Law. Conduct its business and affairs in compliance with all Laws applicable thereto except to the extent failure to do so would not, in the aggregate, have a Material Adverse
Effect. 
 7.12. Security Interests; Further Assurances. Promptly, upon the reasonable request of Administrative Agent,
at the Borrowers’ expense, execute, acknowledge and deliver, or cause the execution, acknowledgment and delivery of, and thereafter register, file or record, or cause to be registered, filed or recorded, in an appropriate governmental office,
any document or instrument supplemental to or confirmatory of the Security Documents or otherwise deemed by Administrative Agent reasonably necessary for the continued validity, perfection and priority in the United States of the Liens on the
Collateral covered thereby superior to and prior to the rights of all third Persons other than the holders of Permitted Liens and subject to other Liens except as permitted by the Security Documents, or obtain any consents, including, without
limitation, landlord or similar lien waivers and consents, as may be necessary or appropriate in connection therewith. The Credit Parties shall take any actions reasonably required by the Administrative Agent to ensure and/or demonstrate that the
Lien and security interests granted by the Security Documents continue to be perfected under the UCC or otherwise after the establishment of any Incremental Term Loan or Incremental Term Loan Commitments deliver or cause to be delivered to
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orders in form and substance reasonably satisfactory to Administrative Agent as Administrative Agent shall reasonably deem necessary to perfect or maintain in the United States the Liens on the
Collateral pursuant to the Security Documents. Upon the exercise by Administrative Agent or the Lenders of any power, right, privilege or remedy pursuant to any Credit Document which requires any consent, approval, registration, qualification or
authorization of any Governmental Authority execute and deliver all applications, certifications, instruments and other documents and papers that Administrative Agent or the Lenders may be so required to obtain. If Administrative Agent or the
Required Lenders determine that they are required by law or regulation to have appraisals prepared in respect of the Real Property of any Credit Party constituting Collateral, the Borrowers shall provide to Administrative Agent appraisals that
satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of FIRREA and are in form and substance reasonably satisfactory to Administrative Agent. 
 7.13. Required Interest Rate Agreements. Within 90 days after the Closing Date, enter into Interest Rate Agreements designed to
protect the Borrowers against fluctuations in interest rates such that at least 50% of the aggregate principal amount of the Term Loans incurred on the Closing Date is subject to a fixed rate of interest for a period of at least 24 months from the
Closing Date on terms and with counterparties reasonably satisfactory to the Administrative Agent. 
 7.14. Anti-Terrorism
Law. None of Holdings or any of its Subsidiaries shall directly or indirectly, (i) knowingly conduct any business or engage in making or receiving any contribution of funds, goods or services to or for the benefit of any Person described in
subsection 5.27 above, (ii) knowingly deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any other Anti-Terrorism Law, or (iii) knowingly
engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law (and Holdings and its Subsidiaries shall deliver
to the Lenders any certification or other evidence requested from time to time by the Administrative Agent in its reasonable discretion, confirming the Loan Parties’ compliance with this subsection 7.14). 
 7.15. Embargoed Person. At all times throughout the term of the Loans, (a) none of the funds or assets of Holdings and its
Subsidiaries that are used to repay the Loans shall, to the knowledge of any Credit Party, constitute property of, or shall be beneficially owned directly or indirectly by, any Person subject to sanctions or trade restrictions under United States
law (“Embargoed Person” or “Embargoed Persons”) that is identified on (1) the “List of Specially Designated Nationals and Blocked Persons” (the “SDN List”) maintained by OFAC, and/or
to the knowledge of any Credit Party, as of the date thereof, based upon reasonable inquiry by such Credit Party, on any other similar list (“Other List”) maintained by OFAC pursuant to any authorizing statute including, but not
limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation promulgated thereunder, with the result that the
investment in Holdings or any of its Subsidiaries (whether directly or indirectly) is prohibited by law, or the Loans made by the Lenders would be in violation of law, or (2) the Executive Order, any related enabling legislation or any other
similar Executive Orders (collectively, “Executive Orders”), and (b) no Embargoed Person shall, to the knowledge of any Credit Party, have any direct interest, as of the Closing Date, based upon reasonable inquiry by any Credit
Party, indirect interest, of any nature whatsoever in the Credit Parties, with the result that the investment in the Credit Parties (whether directly or indirectly) is prohibited by law or the Loans are in violation of law. 
  

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 7.16. Anti-Money Laundering. At all times throughout the term of the Loans, to the
knowledge of any Credit Party, as of the Closing Date, based upon reasonable inquiry by such Credit Party, none of the funds of Holdings or any of its Subsidiaries that are used to repay the Loans shall be derived from any unlawful activity with the
result that the making of the Loans would be in violation of law. 
 7.17. Payment of Taxes. Each of Holdings and its
Subsidiaries shall timely file all material tax returns required by any Governmental Authority and timely pay and discharge all Taxes imposed on it or on its income or profits or on any of its Property (except for any such Taxes (or tax returns with
respect to such Taxes) (a) the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained in accordance with GAAP and (b) which individually and in the aggregate are
not reasonably expected to have a Material Adverse Effect). 
 7.18. Payment of Wages. Holdings shall and shall cause
each of its Subsidiaries to at all times comply, in all material respects, with the material requirements of the Fair Labor Standards Act, as amended, including, without limitation, the provisions thereof relating to the payment of minimum and
overtime wages as the same may become due from time to time. 
 7.19. Maintenance of Ratings. Holdings shall use
commercially reasonable efforts to maintain a corporate rating from S&P and a corporate family rating from Moody’s, in each case in respect of Holdings, and a rating of the Facilities by each of S&P and Moody’s. 
 SECTION 8. NEGATIVE COVENANTS 
 Holdings and the Borrowers hereby agree that they shall not, and Holdings shall not permit any of the Qualified Subsidiaries (except where Non-Qualified Subsidiaries are expressly restricted or
“Subsidiaries” are referenced) to, directly or indirectly, so long as any of the Commitments remain in effect or any Loan, Note or L/C Obligation remains outstanding and unpaid, any amount remains available to be drawn under any Letter of
Credit (unless cash in an amount equal to such amount has been deposited to a cash collateral account established by the Administrative Agent) or any other amount is owing to any Lender or the Administrative Agent hereunder or under any other Credit
Document (it being understood that each of the permitted exceptions to each of the covenants in this Section 8 is in addition to, and not overlapping with, any other of such permitted exceptions except to the extent expressly provided):

 8.1. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except: 
 (a) the Indebtedness outstanding on the Closing Date and disclosed in Schedule 5.26 hereto, and the Refinancing
Indebtedness in respect thereof on terms and conditions taken as a whole no less favorable to Holdings, the Borrowers and the Qualified Subsidiaries or the Lenders than the Indebtedness being Refinanced; 
 (b) Indebtedness under the Credit Documents; 
 (c) Contingent Obligations permitted by subsection 8.3; 
 (d) Indebtedness secured by Permitted Liens not otherwise permitted under this subsection 8.1; 
  

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 (e) other unsecured Indebtedness of Holdings, the Borrowers and the
Qualified Subsidiaries and the Refinancing Indebtedness in respect thereof on terms and conditions taken as a whole no less favorable to Holdings, the Borrowers and the Qualified Subsidiaries or the Lenders than the Indebtedness being Refinanced, in
each case so long as no Default has occurred and is continuing or would result therefrom and, immediately after giving pro forma effect to such incurrence and the application of the proceeds thereof, the Total Leverage Ratio is less than 3.50:1.00;

 (f) Indebtedness of Holdings, the Borrowers and the Qualified Subsidiaries in respect of Financing Leases and
Purchase Money Indebtedness of Holdings, the Borrowers and the Qualified Subsidiaries to finance the purchase of fixed or capital assets in an amount which shall not exceed the purchase price of the assets purchased in an aggregate amount not to
exceed $5,000,000 at any one time outstanding and to the extent subsection 8.9 would not be contravened; 
 (g)
Indebtedness (i) incurred in connection with an Acquisition; (ii) of a Person assumed in connection with an Acquisition of such Person (or Indebtedness of such person existing at the time such Person was acquired) so long as such
Indebtedness was not incurred in anticipation of, or in connection with, such Acquisition, or (iii) to any one or more Persons selling the entity or assets acquired in an Acquisition (including seller earnouts), and the Refinancing Indebtedness
in respect thereof on terms and conditions taken as a whole no less favorable to Holdings, the Borrowers and the Qualified Subsidiaries or the Lenders than the Indebtedness being Refinanced, in each case so long as no Default has occurred and is
continuing or would result therefrom and, immediately after giving pro forma effect to such incurrence and the application of the proceeds thereof, the Total Leverage Ratio is less than 3.50:1.00; 
 (h) Indebtedness under Hedge Agreements permitted by subsection 8.8; 
 (i) Indebtedness of (i) any Credit Party to any other Credit Party; (ii) any Subsidiary that is not a Credit Party
to any other Subsidiary that is not a Credit Party; (iii) any Credit Party to any Subsidiary that is not a Credit Party; and (iv) any Subsidiary that is not a Credit Party to any Credit Party; provided, however, Indebtedness
incurred pursuant to clause (iii) shall not exceed $5,000,000 in the aggregate at any time outstanding; provided, further, that any Indebtedness incurred pursuant to clause (i) or (iii) shall be evidenced by an intercompany
note and pledged by such Credit Party as Collateral pursuant to the Security Documents; provided, further that to the extent a Credit Party is an obligor of any Indebtedness incurred pursuant to this subsection (i), such Indebtedness shall be
Subordinated Indebtedness of such Credit Party; 
 (j) Indebtedness in connection with surety bonds, letters of
credit and performance bonds obtained in the ordinary course of business in connection with workers’ compensation obligations of Holdings, the Borrowers and the Qualified Subsidiaries; 
 (k) Indebtedness of Holdings, the Borrowers and the Qualified Subsidiaries in an amount not to exceed $10,000,000 at any time
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 (l) cash management obligations and other Indebtedness in respect of netting
services, overdraft protection and similar arrangements, in each case, in connection with cash management and deposit accounts; 
 provided
if any Subsidiary (other than the Borrowers) would be required to comply with subsection 7.9(b) immediately after giving effect to the incurrence of any such Indebtedness and the application of the resulting proceeds, such Subsidiary (other than
the Borrowers) shall deliver to the Administrative Agent all intercompany notes owing from such Subsidiary (other than the Borrowers) to any Credit Party within 10 days of the transaction giving rise to such requirement. 
 8.2. Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets, income or profits, whether owned now
or hereafter acquired, except: 
 (a) any Lien in favor of the Administrative Agent or any Lender (or any Person
party to a Hedge Agreement with either Borrower who was a Lender or an Affiliate of a Lender at the date of entering into such Hedge Agreement with such Borrower) given to secure the Obligations (including in respect of a Hedge Agreement);

 (b) Liens in existence on the Closing Date and disclosed on Schedule 8.2(b) hereto; provided
that no such Lien shall extend to or cover other assets or property of Holdings, the Borrowers or any Qualified Subsidiary other than the respective assets or property encumbered by such Lien on the Closing Date; 
 (c) (i) Liens on Real Property or other property for taxes, assessments, governmental charges or levies not yet delinquent or
which are being contested in good faith and by appropriate proceedings and (ii) Liens for taxes, assessments, judgments, governmental charges or levies or claims if (A) adequate reserves with respect thereto are maintained on the books of
Holdings, the relevant Borrower or the relevant Qualified Subsidiary, as the case may be, in accordance with GAAP, (B) in the case of any such charge which has or may become a Lien against any of the Collateral, such Lien and the contest
thereof shall satisfy the Contested Collateral Lien Conditions and (C) all such Liens, individually and in the aggregate, are not reasonably expected to have a Material Adverse Effect; 
 (d) Liens of carriers, warehousemen, landlords, mechanics, vendors (solely to the extent arising by operation of law),
laborers and materialmen incurred in the ordinary course of business for sums not yet due or, if due, being diligently contested in good faith and by appropriate proceedings if (i) adequate reserves with respect thereto are maintained on the
books of Holdings, the relevant Borrower or the relevant Qualified Subsidiary, as the case may be, in accordance with GAAP and (ii) in the case of any such Lien against any of the Collateral, such Lien and the contest thereof shall satisfy the
Contested Collateral Lien Conditions; 
 (e) Liens incurred in the ordinary course of business in connection with
worker’s compensation and unemployment insurance, social security obligations, assessments or government charges which are not overdue for more than sixty (60) days or, if overdue for more than sixty (60) days, are being contested in
good faith and by appropriate actions diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
  

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 (f) restrictions on the transfer of assets of Holdings or its Subsidiaries
imposed by the Communications Act and any regulations thereunder; 
 (g) easements, covenants, conditions,
rights-of-way, zoning, building code or other land use restrictions, licenses, reservations or restrictions on use, minor defects or irregularities in title and other similar encumbrances on the use of real property which do not, individually or in
the aggregate, materially impair the use or occupancy of the affected property in the ordinary conduct of the business; 
 (h) Liens reflected by UCC financing statements filed in respect of Financing Leases permitted pursuant to subsection 8.1 and operating leases of Holdings, the Borrowers or any Qualified Subsidiary; 
 (i) pledges or deposits to secure performance of statutory obligations, surety or appeal bonds, performance bonds, bids,
tenders, leases, trade contracts, government contracts or similar obligations, in each case for amounts not yet delinquent or, to the extent such amounts are so delinquent, such amounts are being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted if (i) adequate reserves with respect thereto are maintained on the books of Holdings or the relevant Subsidiary, as the case may be, in accordance with GAAP and (ii) in the case of any such
pledge or deposit against any of the Collateral, (A) such pledge or deposit and the contest thereof shall satisfy the Contested Collateral Lien Conditions and (B) to the extent such pledges or deposits are not imposed by law, such pledge
or deposit shall in no event encumber any Collateral other than cash and Cash Equivalents; 
 (j) judgment Liens
which do not result in an Event of Default under subsection 9(h); 
 (k) Liens in connection with escrow deposits
made in connection with Acquisitions permitted hereunder, in each case for amounts not yet delinquent or, to the extent such amounts are so delinquent, such amounts are being contested in good faith by appropriate proceedings promptly instituted and
diligently conducted if (i) adequate reserves with respect thereto are maintained on the books of Holdings or the relevant Subsidiary, as the case may be, in accordance with GAAP and (ii) in the case of any such Lien against any of the
Collateral, (A) such Lien and the contest thereof shall satisfy the Contested Collateral Lien Conditions and (B) to the extent such Liens are not imposed by law, such Lien shall in no event encumber any Collateral other than cash and Cash
Equivalents; 
 (l) Liens in respect of Purchase Money Indebtedness; provided that no such Lien incurred
in connection with such Indebtedness shall extend to or cover other property of Holdings or such Subsidiary other than the respective property so acquired, and the principal amount of Indebtedness secured by any such Lien shall at no time exceed the
original purchase price of such property; 
 (m) Liens on a Person or assets acquired in a Permitted Acquisition
which were existing on the date of such a Permitted Acquisition and not created in anticipation of such Acquisition; provided, however, that (1) such Liens do not extend beyond the assets of the Person or assets acquired and (2) any
Indebtedness secured by such Liens is permitted by subsection 8.1(g); 
  

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 (n) Permitted Encumbrances; 
 (o) Liens on documents of title and the property covered thereby securing Indebtedness in respect of the Commercial L/Cs or
other commercial letters of credit; 
 (p) (i) mortgages, liens, security interests, restrictions,
encumbrances or any other matters of record that have been placed by any developer, landlord or other third party on property over which Holdings, the Borrowers or any Qualified Subsidiary has easement rights or on any Leased Property and
subordination or similar agreements relating thereto and (ii) any condemnation or eminent domain proceedings affecting any Real Property; 
 (q) leases or subleases or licenses or sublicenses with respect to the assets or properties of Holdings, the Borrowers or any Qualified Subsidiary, in each case, entered into in the ordinary course of
Holdings’, the Borrowers’ or such Qualified Subsidiary’s business so long as such leases or subleases affecting Mortgaged Property (i) are subordinate in all respects to the Liens granted and evidenced by the Security Documents
and, in the case of any lease or sublease entered into after the Closing Date affecting any Mortgaged Property, such lease or sublease shall also be entered into in compliance with the provisions of the applicable Mortgage and (ii) do not,
individually or in the aggregate, (A) interfere in any material respect with the ordinary conduct of the business of Holdings, the Borrowers or any Qualified Subsidiary or (B) materially impair the use (for its intended purposes) or the
value of the assets or property subject thereto; 
 (r) banker’s liens and rights of set-off relating to
deposit accounts whether arising by contract or operation of law; 
 (s) interests of a licensor under a license
agreement; and 
 (t) other Liens securing obligations in an aggregate amount not to exceed $10,000,000 at any
time outstanding; 
 provided that no consensual Liens shall be permitted to exist, directly or indirectly, on any Securities Collateral
(as defined in the Security Agreement), other than Liens granted pursuant to the Security Documents. 
 8.3. Contingent
Obligations. Create, incur, assume or suffer to exist any Contingent Obligation, except: 
 (a) the
Guarantees; 
 (b) other guarantees by Holdings, the Borrowers or any Qualified Subsidiary in an aggregate amount
not to exceed $10,000,000 at any time outstanding; 
 (c) guarantees by any Credit Party of obligations of
(x) any other Credit Party and (y) any Subsidiary that is not a Credit Party in an aggregate principal amount not to exceed $5,000,000 (plus the sum of any Dividend Payments or amounts distributed by such Subsidiary to any Credit
Party), minus the sum of (A) the amount owed by such Subsidiary in the aggregate to any Credit Party then outstanding pursuant to subsection 8.1(i) and (B) the amount of investments

  

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made in such Subsidiaries pursuant to subsection 8.6(b); provided that, in each case, if the primary obligation being guaranteed is subordinated to the Loans or the Guarantees, such
guarantees are subordinated to the Loans or the Guarantees on substantially the same basis as such primary obligation is subordinated; 
 (d) Contingent Obligations relating to any Indebtedness permitted under subsection 8.1(a); 
 (e) guarantees of obligations to third parties in connection with relocation of employees of Holdings, the Borrowers or any Qualified Subsidiary, in an amount which, together with all loans and advances
made pursuant to subsection 8.6(l), shall not exceed $2,000,000 at any time outstanding; 
 (f) Contingent
Obligations in connection with workers’ compensation obligations, and in connection with performance, surety and appeal bonds, leases, trade contracts, government contracts, and similar obligations incurred in the ordinary course of business,
of Holdings, the Borrowers and the Qualified Subsidiaries; 
 (g) Hedge Agreements permitted by subsection 8.8;
and 
 (h) endorsements of negotiable instruments for collection in the ordinary course of business. 

8.4. Fundamental Changes. Enter into any merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or engage in any type of business other than of the type permitted by subsection 8.14, except: 
 (a) for the transactions otherwise permitted pursuant to paragraph (a) or (g) of subsection 8.5 or pursuant to subsection 8.6; 
 (b) any Subsidiary may be merged with and into Holdings, the Borrowers or a Qualified Subsidiary; 
 (c) any Subsidiary of Holdings with a net book value not greater than $100,000 may be dissolved; and 
 (d) (i) Holdings may change its form of corporate organization in connection with an initial public offering of the Capital
Stock of Holdings through a merger, consolidation or amalgamation with a shell corporation incorporated in the State of Delaware and created by Holdings solely in connection with such initial public offering of the Capital Stock of Holdings, and
(ii) any of Language Line Holdings II, Inc. or a newly formed holding company that is organized in a state of the United States may become the consolidated parent company of the Credit Parties (other than Language Line Holdings LLC) (such
parent company or Language Line Holdings II, Inc., the “IPO Company”) in connection with an underwritten initial public offering of the Capital Stock of the IPO Company (the “IPO”), in each case so long as
(A) the IPO Company is or becomes a Guarantor and complies with the requirements of subsection 7.12, (B) any assets of Language Line Holdings LLC (other than the Capital Stock of the IPO Company, proceeds of the

  

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IPO and proceeds of a sale by Language Line Holdings LLC of the Capital Stock of the IPO Company pursuant to subsection 8.5(j)) are contributed to a Credit Party and (C) the Collateral is
not reduced or impaired in any material respect; provided that the loss of the pledge of the Capital Stock of the IPO Company shall not be deemed to be a material impairment of the Collateral. In order to accomplish the restructuring
described in clause (ii) of the preceding sentence and to facilitate the IPO, (w) Language Line Holdings LLC may contribute the Capital Stock and assets of Language Line Services UK Limited to the IPO Company, (x) Language Line
Holdings LLC may be dissolved following the contribution of its assets (other than the Capital Stock of the IPO Company, proceeds of the IPO and proceeds of a sale by Language Line Holdings LLC of the Capital Stock of the IPO Company pursuant to
subsection 8.5(j)) to one or more Credit Parties, (y) the IPO Company or Language Line Holdings LLC may distribute the shares of the IPO Company to the holders of its Capital Stock, and (z) the IPO Company may merge, consolidate or
amalgamate with Language Line Holdings LLC; 
 provided that in connection with the foregoing, the appropriate Credit Parties shall take
all actions necessary or reasonably requested by the Administrative Agent to maintain the perfection or perfect, as the case may be, protect and preserve the Liens on the Collateral granted to the Administrative Agent pursuant to the Security
Documents in the United States and otherwise comply with the provisions of subsection 7.9 to the extent applicable. 
 8.5.
Sale of Assets. Convey, sell, lease (other than a lease or a sublease of Real Property), assign, transfer or otherwise dispose of (including through a transaction of merger or consolidation of any Subsidiary) any of its property, business or
assets (including, without limitation, other payments and receivables but excluding leasehold interests), whether owned on the Closing Date or thereafter acquired, except: 
 (a) Holdings may transfer assets of Holdings to the Borrowers or any Subsidiary Guarantor, and the Subsidiaries may transfer
assets to Holdings, the Borrowers or to any Subsidiary Guarantor (including the transfer of any or all of the Capital Stock of any Subsidiary to Holdings, the Borrowers or any Subsidiary Guarantor) so long as such assets (i) remain in the
United States; 
 (b) any Taking or Destruction affecting any property or assets subject, however, to the proviso
set forth in clause (c) of the definition of Net Proceeds; 
 (c) Subsidiaries may (x) be dissolved in
accordance with subsection 8.4 and (y) pay dividends in accordance with subsection 8.11; 
 (d) Investments
permitted by subsection 8.6; 
 (e) licenses or sublicenses by Holdings or any of its Subsidiaries of software,
Intellectual Property and general intangible and leases, licenses or subleases of other property in the ordinary course of business and which do not materially interfere with the business of Holdings or any of its Subsidiaries; 
 (f) any disposition or dispositions (in an aggregate amount not to exceed $2,000,000 during the term of this Agreement) in
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 (g) any Asset Sale for which the aggregate amount of Net Proceeds do not
exceed $2,000,000 in any transaction or series of related transactions from and after the Closing Date; 
 (h)
the sale or other disposition of any property or assets that, in the reasonable judgment of Holdings or the Borrowers has become uneconomic, obsolete or worn out, and which is sold or disposed of in the ordinary course of business or the trade in of
equipment for equipment in better condition or of better quality; provided that, to the extent such properties or assets constituted Collateral, the net proceeds thereof shall be reinvested in properties or assets owned (or to be owned) by
Holdings, the Borrowers or the Qualified Subsidiaries having a fair market value at least equal to the amount of such net proceeds and any property or assets purchased with such net proceeds shall be mortgaged or pledged, as the case may be, to the
Administrative Agent, for its benefit and for the benefit of the other Secured Parties, in accordance with subsection 7.9; 
 (i) the sale or other disposition of any Intellectual Property that the cost of maintaining is determined by Holdings or any of its Subsidiaries in its reasonable business judgment to be excessive in
relation to the value to Holdings and its Subsidiaries to be afforded thereby; and 
 (j) the sale by Holdings of
the Capital Stock of the IPO Company in an IPO; 
 provided that all sales, transfers, leases and other dispositions permitted hereby
shall be made for fair value and for at least 75% cash consideration in the case of sales, transfers, leases and other dispositions permitted by clauses (f) (including for purposes of this calculation as cash consideration the amount of any
liabilities (other than subordinated liabilities) assumed from Holdings or any of its Subsidiaries by a purchaser or other transferee), (g) and (h) (other than in the case of any trade-ins). 
 8.6. Investments. Make any Investment in (including any acquisition of all or substantially all of the assets, and any acquisition of
a business or a product line, of other companies), any Person (except to the extent permitted by subsection 8.3), except: 
 (a) Cash or Cash Equivalents; 
 (b) Investments by Holdings, the
Borrowers and the Subsidiary Guarantors in Capital Stock in their respective Subsidiaries that exist immediately prior to any applicable transaction; provided that (i) any such Capital Stock held by a Credit Party shall be pledged to the
extent required hereunder and (ii) the aggregate amount of investments by Credit Parties in, and loans and advances by Credit Parties to and guarantees by Credit Parties of Indebtedness of, Subsidiaries that are not Credit Parties made after
the Closing Date shall not exceed $15,000,000 at any time outstanding; 
 (c) loans, advances or Indebtedness
permitted by subsection 8.1(c); 
 (d) loans or extensions of credit in the ordinary course of business not to
exceed $500,000 in the aggregate at any time outstanding; 
 (e) intercompany loans and advances permitted
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 (f) Investments existing as of Closing Date, including Investments in
Subsidiaries, and set forth on Schedule 8.6 hereto; 
 (g) Investments made in order to consummate
Acquisitions; provided, however, that (i) no Default or Event of Default exists before or after giving effect to the Acquisition, (ii) Holdings shall have delivered to the Administrative Agent revised financial projections for Holdings
and its Subsidiaries on a consolidated basis giving pro forma effect to the Acquisition, (iii) on a Pro Forma Basis, after giving effect to such Acquisition(s), Holdings would be in compliance with subsection 8.9(A) as evidenced in an
Officers’ Certificate delivered to the Administrative Agent at least 10 days (or such shorter period as the Administrative Agent may agree) prior to the consummation of such Acquisition, accompanied by supporting schedules and data in
reasonable detail, (iv) immediately after giving effect to such Acquisition, the Credit Parties would be in compliance with subsection 8.14, (v) the acquired entity and its Subsidiaries (other than immaterial subsidiaries) shall become
Guarantors and all acquired Collateral shall be pledged pursuant to the Security Documents, in each case in accordance with subsection 7.9 hereof, and the Lenders shall have a perfected first priority security interest therein subject to no Liens,
except for the Liens created by the Security Documents and Liens permitted under the Security Documents for such Collateral, and (vi) such Acquisition shall be effected through Holdings, the Borrowers or a Subsidiary Guarantor and the Person
acquired shall be merged with or into Holdings, a Borrower or a Subsidiary Guarantor or shall be at the time of consummation thereof a Domestic Subsidiary; provided, however, that the Credit Parties may acquire Foreign Subsidiaries which
shall not become Subsidiary Guarantors hereunder so long as consideration for such Acquisitions shall not exceeding $60,000,000 in the aggregate during the term of this Agreement (any Acquisition in compliance with this subsection 8.6(g), a
“Permitted Acquisition”); 
 (h) Holdings and its Subsidiaries may acquire and hold receivables
owing to it, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided that nothing in this clause (e) shall prevent Holdings or any of its Subsidiaries from
offering such concessionary trade terms, or from receiving such investments, in connection with the bankruptcy or reorganization of their respective suppliers or customers or the settlement of disputes with such customers or suppliers arising in the
ordinary course of business, as management deems reasonable in the circumstances; 
 (i) other Investments by
Holdings, the Borrowers or any Qualified Subsidiary not exceeding in the aggregate outstanding at any time (without giving effect to any write downs or write offs thereof, but net of any cash returns of capital, cash dividends and cash distributions
received by Holdings, the Borrowers or any Qualified Subsidiary in respect thereof) $10,000,000; provided, however, that at the time of making any such Investments no Default shall exist or would arise therefrom; 
 (j) Holdings or any of its Subsidiaries may make any Investment; provided that (i) subsection 8.14 would not be
contravened thereby and (ii) such Investment is funded solely by the issuance of Capital Stock or from the proceeds of a substantially contemporaneous issuance of Capital Stock which has not been used pursuant to subsection 8.6(b)(ii);

  

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 (k) Holdings or any of its Subsidiaries may make Investments in an aggregate
amount equal to the Cumulative Credit on such date as specified in a written notice of an Officer of Holdings calculating in reasonable detail the amount of Cumulative Credit immediately prior to such application and the amount thereof to be so
applied; provided, that, (1) after giving effect to such Investment, Holdings and its Subsidiaries shall be in compliance with subsection 8.9(A) and (2) no Default or Event of Default exists and is continuing at the time of such
Investment; 
 (l) Holdings or any of its Subsidiaries may make travel and entertainment advances and relocation
and other loans to officers and employees of Holdings or any of its Subsidiaries; provided that the aggregate principal amount of all such loans and advances outstanding at any one time, together with the guarantees of such loans and advances
made pursuant to subsection 8.3(e), shall not exceed $2,000,000 at any one time outstanding; 
 (m) Investments
constituting non-cash proceeds of dispositions of assets permitted by subsection 8.5; and 
 (n) Investments
constituting deposit arrangements permitted by subsection 8.2. 
 If any Subsidiary would be required to comply with subsection
7.9(b) immediately after giving effect to any investment permitted by subsection 8.6(b), such Subsidiary shall comply with the requirements of such subsection within 10 days of the transaction giving rise to such requirement. 
 8.7. [Reserved]. 
 8.8. Hedge Agreements. Enter into, create, incur, assume or suffer to exist any Hedge Agreements or obligations in respect thereof except in the ordinary course of business for non-speculative purposes or pursuant to subsection 7.13.

 8.9. Financial Covenants. 
 (A) Total Leverage Ratio. As of the last day of each Fiscal Quarter ending within the periods set forth below, permit the Total Leverage Ratio to be greater than the ratio set forth below opposite
such period: 
  

			
	 Period
	  	Ratio
	 December 31, 2009 to September 30, 2010
	  	4.25:1.00
	 October 1, 2010 to March 31, 2011
	  	3.75:1.00
	 April 1, 2011 to September 30, 2011
	  	3.50:1.00
	 October 1, 2011 to March 31, 2012
	  	3.25:1.00
	 April 1, 2012 to September 30, 2012
	  	3.00:1.00
	 October 1, 2012 and thereafter
	  	2.75:1.00

 (B) Consolidated Fixed Charge Coverage Ratio. As of the last day of each
Fiscal Quarter, permit the Consolidated Fixed Charge Coverage Ratio to be less than 1.50:1.00. 
  

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 8.10. Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any Qualified Subsidiary to (a) make Dividend Payments in respect of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed to, Holdings, the
Borrowers or any other Subsidiary, (b) make loans or advances to, or other Investments in, Holdings, the Borrowers or any other Subsidiary or (c) transfer any of its assets to Holdings, the Borrowers or any other Subsidiary, except for
such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the Credit Documents, (ii) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in
connection with the disposition of all or substantially all of the Capital Stock or assets of such Subsidiary, (iii) restrictions existing and as in effect on the Closing Date, (iv) pursuant to any Hedge Agreements permitted hereunder,
(v) pursuant to any Indebtedness in existence on the date hereof and any refinancing thereof permitted hereunder, (vi) applicable law, (vii) restrictions which are not more restrictive than those contained in this Agreement contained
in any documents governing any Indebtedness incurred after the Closing Date in accordance with the provisions of this Agreement, (viii) under any documents relating to joint ventures of Borrowers to the extent that such joint ventures are not
prohibited hereunder, (ix) any agreement in effect at the time a Person first became a Subsidiary, so long as such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary, (x) customary provisions in
leases restricting assignability or subleasing, (xi) restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets
securing such Indebtedness, and (xii) licenses or contracts which by the terms of such licenses and contracts prohibit the granting of Liens on the rights contained therein. 
 8.11. Dividends. Declare, make or pay any Dividend Payments on any shares of any class of Capital Stock, either directly or
indirectly, except that: 
 (a) the Borrowers and the Qualified Subsidiaries may pay Dividend Payments pro rata
to the holders of their Capital Stock (giving effect to relative preferences and priorities); 
 (b) Holdings,
the Borrowers and the Qualified Subsidiaries may pay or make Dividend Payments or distributions to any holder of its Capital Stock in the form of additional shares of Capital Stock of the same class and type; 
 (c) the repurchase by any Credit Party of shares of Capital Stock of any Credit Party owned by former, present or future
employees of such Credit Party or their assigns, estates and heirs; provided that the aggregate amount of repurchases made by the Credit Parties pursuant to this paragraph (c) shall not in the aggregate exceed (i) $1,000,000 in any
fiscal year or (ii) $5,000,000 during the term of this Agreement, plus any amounts received by the Credit Parties as a result of resales of such repurchased shares of Capital Stock; 
 (d) so long as no Default or Event of Default exists and is continuing at the time of any such Dividend Payment, Holdings may
make Dividend Payments or repurchase Capital Stock of Holdings in an aggregate amount not to exceed $12,500,000 in any fiscal quarter; provided that so long as no Default has occurred and is continuing or would result therefrom and,
immediately after giving pro forma effect to such Dividend Payments or repurchases, the Total Leverage Ratio is less than 3.00:1.00; 
  

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 (e) Holdings may make Dividend Payments in an aggregate amount equal to the
Cumulative Credit on such date as specified in a written notice of an Officer of Holdings calculating in reasonable detail the amount of Cumulative Credit immediately prior to such application and the amount thereof to be so applied; provided
that (1) after giving effect to such Dividend Payment, Holdings and its Subsidiaries shall be in compliance with subsection 8.9(A) and (2) no Default or Event of Default exists and is continuing at the time of such Dividend Payments;

 (f) Coto Holdings LLC may make a payment on the Closing Date to the holder of the Coto Preferred Stock in
order to redeem all amounts outstanding on the Closing Date under the Coto Preferred Stock; 
 (g) Language Line
Holdings II, Inc. may make payments in respect of the Citi Loan in accordance with the terms thereof; 
 (h) cash
payments in lieu of issuing fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Capital Stock of Holdings or any direct or indirect parent of Holdings; 
 (i) Holdings may make any Permitted Tax Distribution; and 
 (j) Holdings may make Dividend Payments in connection with the dissolution of Holdings pursuant to subsection 8.4(d) or
distributions permitted under clause (y) of the second sentence of subsection 8.4(d). 
 Notwithstanding the foregoing, the
making of any dividend or distribution or the consummation of any irrevocable redemption within 60 days after the date of declaration of the dividend or distribution or giving of the redemption notice, as applicable, will not be prohibited if, at
the date of declaration or notice such payment or redemption would have complied with the provisions of this Agreement. 
 8.12.
Transactions with Affiliates. Enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliate except for transactions which are otherwise
permitted under this Agreement and which are upon fair and reasonable terms no less favorable to Holdings, the Borrowers or such Qualified Subsidiary than it would obtain in a hypothetical comparable arm’s length transaction with a Person not
an Affiliate; provided that nothing in this subsection 8.12 shall prohibit Holdings, the Borrowers or any Qualified Subsidiary from engaging in the following transactions: 
 (a) transactions between or among Credit Parties; 
 (b) the performance of Holdings’ or any Subsidiary’s obligations under any employment contract, collective
bargaining agreement, employee benefit plan, related trust agreement or any other similar arrangement on the Closing Date or hereafter entered into in the ordinary course of business; 
 (c) the payment of fees, compensation and other benefits to, and customary indemnity and reimbursement provided on behalf of,
employees, officers, directors or consultants of Holdings, the Borrowers or any other Subsidiary in the ordinary course of business; 
  

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 (d) the maintenance of benefit programs or arrangements for employees,
officers or directors, including, without limitation, vacation plans, health and life insurance plans, deferred compensation plans, and retirement or savings plans and similar plans, in each case, in the ordinary course of business; 
 (e) transactions permitted by subsection 8.11; 
 (f) transactions existing on the Closing Date and included on Schedule 8.12 hereto on the terms in effect on the
Closing Date or pursuant to any amendment modification or replacement thereof not disadvantageous to the Lenders in any material respect; and 
 (g) the payment or reimbursement of all reasonable out-of-pocket expenses (including the reasonable fees, charges and disbursements of any counsel) incurred by ABRY or its Affiliates in connection with
(i) the Transaction; (ii) any amendments, modifications or waivers of the provisions of the Credit Documents (whether or not the transactions contemplated hereby or thereby shall be consummated or any such amendment, modification or waiver
becomes effective) or (iii) their investment in Holdings and participation in the management and affairs of the Credit Parties not to exceed $2,000,000 per year in the aggregate. 
 8.13. Changes in Fiscal Year. Permit the fiscal year of Holdings and the Borrowers to end on a day other than on December 31 in
any calendar year. 
 8.14. Lines of Business. Engage in any business, or cause or permit any Subsidiary (including any
Non-Qualified Subsidiary and any Subsidiary acquired subsequent to the Closing Date) to engage in any business, except for the business of providing interpretation services (or which are related, ancillary or complementary thereto or are reasonable
extensions thereof) or any activities then customarily undertaken by providers of interpretation services; provided that Holdings and its Subsidiaries, taken as a whole, shall at all times be principally engaged in the business of providing
over-the-phone interpretation services and/or face-to-face interpretation services; and provided further that the activities of Holdings shall be limited to (i) the ownership of the Capital Stock of Language Line Holdings II, Inc.,
(ii) the ownership of the Capital Stock of Language Line Services UK Limited, (iii) the ownership of any Subsidiary formed in accordance with the terms of this Agreement after the Closing Date, (iv) performance of its obligations
under the Credit Documents, (v) customary corporate activities of a public holding company, including issuance of Capital Stock (other than redeemable preferred Capital Stock described in clause (g) of the definition of
“Indebtedness”, unless it is issued in compliance with subsection 8.1), (vi) any activities otherwise permitted under this Agreement and (vii) actions required by law. 
 8.15. Prepayments and Amendments of Certain Debt. 
 (a) Optionally prepay, retire, redeem, purchase, defease or exchange, or make or arrange for any mandatory prepayment,
retirement, redemption, purchase or defeasance of any outstanding unsecured Indebtedness described in clauses (a) and (g) of the definition of Indebtedness of Holdings and its Subsidiaries (other than (1) any refinancing of
Indebtedness permitted by this Agreement or not prohibited by any provision of this Agreement (other than this subsection 8.15), (2) the Obligations, (3) the Refinancing in accordance with the terms of this Agreement, and (4) the
conversion or exchange of Indebtedness for or into Capital Stock), except in an aggregate amount equal to the Cumulative Credit on such date as specified in a written notice of an Officer

  

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of Holdings calculating in reasonable detail the amount of Cumulative Credit immediately prior to such application and the amount thereof to be so applied; provided that (1) after
giving effect to such payment, Holdings and its Subsidiaries shall be in compliance with subsection 8.9(A) and (2) no Default or Event of Default exists and is continuing at the time of such payment, or 
 (b) waive, amend, supplement or modify any of the provisions with respect to any Indebtedness of Holdings, the Borrowers or
any Qualified Subsidiary without the prior consent of the Administrative Agent, to the extent that any such waiver, amendment, supplement, modification, termination or release would be materially adverse to Holdings, the Borrowers or any Qualified
Subsidiary or the Lenders. 
 8.16. Negative Pledges. Except with respect to prohibitions against other encumbrances on
specific property encumbered to secure payment of particular Indebtedness permitted hereunder or prohibitions in license agreements under which Holdings, the Borrowers or any Qualified Subsidiary is the licensee, enter into any agreement prohibiting
the creation or assumption of any Lien upon its properties or assets, whether owned on the Closing Date or hereafter acquired, except pursuant to (a) the Credit Documents, (b) any other agreement that does not restrict in any manner
(directly of indirectly) Liens created pursuant to the Credit Documents on property or assets of Holdings, the Borrowers or any Qualified Subsidiary (whether owned now or hereafter acquired) securing the Loans or any Interest Rate Agreement and does
not require the direct or indirect granting of any Lien securing any Indebtedness or other obligation by virtue of the granting of Liens on or pledge of property of Holdings, the Borrowers or any Qualified Subsidiary to secure the Loans or any
Interest Rate Agreement, (c) any industrial revenue or development bonds, acquisition agreement or operating leases of real property and equipment entered into in the ordinary course of business, (d) any restrictions with respect to a
Subsidiary imposed pursuant to an agreement that has been entered into in connection with the disposition of all or substantially all of the Capital Stock or assets of such Subsidiary, (e) restrictions existing and as in effect on the Closing
Date, (f) any Hedge Agreements permitted hereunder, (g) restrictions which are not more restrictive than those contained in this Agreement contained in any documents governing any Indebtedness incurred after the Closing Date in accordance
with the provisions of this Agreement, (h) any documents relating to joint ventures of Borrowers to the extent that such joint ventures are not prohibited hereunder, (i) any agreement in effect at the time a Person first became a
Subsidiary, so long as such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary, (j) customary provisions in leases restricting assignability or subleasing, and (k) licenses or contracts which by the
terms of such licenses and contracts prohibit the granting of Liens on the rights contained therein. Notwithstanding any of the foregoing, Indebtedness incurred by a Non-Qualified Subsidiary may contain a provision that no Lien on the assets of such
Non-Qualified Subsidiary may exist unless such Indebtedness is equally and ratably secured with any other Indebtedness secured by such assets. 
 8.17. Sales and Leasebacks. Except as provided in subsection 8.5(f), enter into any arrangement with any Person providing for the leasing by Holdings, the Borrowers or any Qualified Subsidiary of
real or personal property that has been or is to be sold or transferred by Holdings or such Subsidiary to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental
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 SECTION 9. EVENTS OF DEFAULT 
 Upon the occurrence and during the continuance of any of the following events: 
 (a) Holdings or either Borrower shall fail to (i) pay any principal of any Loan or Note when due in accordance with the
terms hereof or thereof or to reimburse the Issuing Lender in accordance with subsection 3.8 or (ii) pay any interest on any Loan or Note or any other amount payable under any Credit Document within three Business Days after any such interest
or other amount becomes due in accordance with the terms thereof or hereof; or 
 (b) Any representation or
warranty made or deemed made by any Credit Party in any Credit Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made; or 
 (c) Holdings or either Borrower shall default in the observance or performance of any agreement contained in subsection
7.2(g), 7.6(a), 7.9, 7.10 or Section 8 of this Agreement; or 
 (d) Any Credit Party shall default in the
observance or performance of any other agreement contained in any Credit Document and such default shall continue unremedied for a period of 30 days after receipt by Holdings or either Borrower of written notice of such default from the
Administrative Agent or any Lender; or 
 (e) With respect to any Indebtedness, Interest Rate Agreement or
Contingent Obligation which aggregate in excess of $5,000,000 (other than the Loans and L/C Obligations) (A) Holdings or any of its Subsidiaries shall (i) default in any payment of principal of or interest on or other amounts in respect of any
Indebtedness (other than the Loans, the L/C Obligations and any intercompany debt) or Interest Rate Agreement or in the payment of any Contingent Obligation, beyond the period of grace, if any, provided in the instrument or agreement under which
such Indebtedness, Interest Rate Agreement or Contingent Obligation was created; or (ii) default (after giving effect to any applicable grace period) in the observance or performance of any other agreement or condition relating to any such
Indebtedness, Interest Rate Agreement or Contingent Obligation or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness, the party or parties to such Interest Rate Agreements or beneficiary or beneficiaries of such Contingent Obligation (or a trustee or agent on behalf of such holder or
holders or beneficiary or beneficiaries) to cause (determined without regard to whether any notice or lapse of time is required), such Indebtedness to become due prior to its stated maturity, such Interest Rate Agreement to be terminated, or such
Contingent Obligation to become payable, (B) any such Indebtedness, Interest Rate Agreement or Contingent Obligation shall be declared due and payable, or required to be prepaid other than by regularly scheduled required repayment prior to the
stated maturity thereof, or (C) any such Indebtedness, Interest Rate Agreement or Contingent Obligation shall mature and remain unpaid; or 
 (f) (i) Holdings, the Borrowers or any of the Material Subsidiaries shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets,
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the benefit of its creditors; or (ii) there shall be commenced against Holdings, the Borrowers or any of the Material Subsidiaries any case, proceeding or other action of a nature referred
to in clause (i) above which results in the entry of an order for relief or any such adjudication or appointment which shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or
(iii) there shall be commenced against Holdings, the Borrowers or any of the Material Subsidiaries any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) Holdings, the Borrowers
or any of the Material Subsidiaries shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii) or (iii) above; or (v) Holdings or any
Subsidiary shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or 
 (g) An ERISA Event shall have occurred that when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; or 
 (h) One or more judgments or decrees shall be entered against Holdings, the Borrowers or any of the Material Subsidiaries
involving in the aggregate a liability (not paid or fully covered by insurance as to which the relevant insurance company has not denied coverage) of $15,000,000 or more and all such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within the time required by the terms of such judgment; or 
 (i) (x) Any
Credit Document shall cease, for any reason, to be in full force and effect or Holdings or any of its Subsidiaries shall so assert in writing, or (y) any Security Document shall cease to give the Administrative Agent for the benefit of the
Secured Parties the rights, powers and privilege purported to be created thereby or cease to be effective to grant a perfected Lien on any material Collateral described in such Security Document with the priority purported to be created thereby,
except to the extent that any such loss of perfection or priority results from the failure of the Administrative Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Documents or to
file UCC financings statements or continuation statements or other equivalent filings, in each case subject to such exceptions as may be permitted therein or herein; or 
 (j) There shall have occurred a Change of Control; or 
 (k) Any non-monetary judgment, order or decree is entered against Holdings or any Subsidiary which does or would reasonably
be likely to have a Material Adverse Effect, and there shall be any period of 45 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
 then, and in any such event, (x) if such event is an Event of Default specified in paragraph (f) above with respect to Holdings or either
Borrower, automatically (i) the Commitments shall immediately terminate and the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and the Notes shall immediately become due and payable, and
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payable and the Issuing Lender’s obligations to issue the Letters of Credit shall immediately terminate and (y) if such event is any other Event of Default, so long as any such Event of
Default shall be continuing, either or both of the following actions may be taken: (i) with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by
notice to the Borrowers, declare the Commitments and the Issuing Lender’s obligations to issue the Letters of Credit to be terminated forthwith, whereupon the Commitments and such obligations shall immediately terminate; and (ii) with the
consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice of default to the Borrowers, (a) declare all or a portion of the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the Notes to be due and payable forthwith, whereupon the same shall immediately become due and payable, and (b) declare all or a portion of the obligations of the Borrowers
in respect of the Letters of Credit, although contingent and unmatured, to be due and payable forthwith, whereupon the same shall immediately become due and payable and/or demand that the Borrowers discharge any or all of the obligations supported
by the Letters of Credit by paying or prepaying any amount due or to become due in respect of such obligations. All payments under this Section 9 on account of undrawn Letters of Credit shall be made by the Borrowers directly to a cash
collateral account established by the Administrative Agent for such purpose for application to the Borrowers’ reimbursement obligations under subsection 3.8 as drafts are presented under the Letters of Credit, (x) with the balance, if any,
to be applied to the Borrowers’ obligations under this Agreement and the Notes as the Administrative Agent shall determine with the approval of the Required Lenders and (y) after all Letters of Credit have terminated in accordance with
their terms (or been fully drawn upon), and after all obligations under this Agreement and the Notes have been paid in full (other than ongoing indemnity obligations where no demand for payment has been made), any excess amounts on deposit shall be
returned to the Borrowers. Except as expressly provided above in this Section 9, presentment, demand, protest and all other notices of any kind are hereby expressly waived. 
 SECTION 10. THE AGENTS AND THE ISSUING LENDER 
 10.1. Appointment. Each Lender hereby irrevocably designates and appoints Bank of America, N.A. as the Administrative Agent under this Agreement and each of the other Credit Documents and
irrevocably authorizes Bank of America, N.A., as Administrative Agent for such Lender, to take such action on its behalf under the provisions of the Credit Documents and to exercise such powers and perform such duties as are expressly delegated to
the Administrative Agent by the terms of the Credit Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into the Credit Documents or otherwise
exist against any Agent. 
 10.2. Delegation of Duties. The Administrative Agent may execute any of its duties under this
Agreement and each of the other Credit Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care, except as otherwise provided in subsection 10.3. 
  

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 10.3. Exculpatory Provisions. No Agent shall have any duties or obligations except
those expressly set forth herein and in the other Credit Documents. Without limiting the generality of the foregoing, no Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has
occurred and is continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Documents that the applicable Agent is required to exercise as directed in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be expressly provided for herein or in the other Credit Documents); provided that no Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may such Agent to
liability or that is contrary to any Credit Document or applicable Law; and 
 (c) shall not, except as expressly
set forth herein and in the other Credit Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrowers or any of its Affiliates that is communicated to or obtained by the Person
serving as an Agent or any of its Affiliates in any capacity. 
 No Agent shall be liable for any action taken or not taken by
it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances
as provided in subsection 11.1 and Section 9 or (ii) in the absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default or Event of Default unless and until notice describing such
Default or Event of Default is given to the Administrative Agent by the Borrowers, a Lender or the Issuing Lender. 
 The
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Credit Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Credit Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien
purported to be created by the Security Documents, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent. 
 10.4. Reliance by Agents. The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any Note, entries maintained in the Register, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, or teletype message,
statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel
to the Borrowers), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment,
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been filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under any Credit Document unless it shall first receive such
advice or concurrence of the Required Lenders (or, where a higher percentage of the Lenders is expressly required hereunder, such Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under any Credit Document in
accordance with a request of the Required Lenders (unless a higher percentage of Lenders is expressly required), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of
the Notes. 
 10.5. Notice of Default. No Agent shall be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless such Agent has received written notice from an Agent, a Lender or the Borrowers or any other Credit Party referring to this Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default.” In the event that the Administrative Agent receives such a notice, the Administrative Agent shall promptly give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to
such Default or Event of Default as shall be reasonably directed by the Required Lenders; provided that unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders. 
 10.6. Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that no Agent nor any officers, directors,
employees, agents, attorneys-in-fact or Affiliates thereof has made any representations or warranties to it and that no act by any Agent taken after the Closing Date, including any review of the affairs of the Credit Parties, shall be deemed to
constitute any representation or warranty by such Agent to any Lender. Each Lender represents to the Agents that it has, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of Holdings and its Subsidiaries and made its own decision to make its Loans hereunder and
enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action under the Credit Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition
and creditworthiness of Holdings and its Subsidiaries. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent shall have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of the Credit Parties which may come into the possession of such Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates. 
 10.7. Indemnification. The Lenders agree to indemnify
the Agents in their capacity as such (to the extent not reimbursed by the Credit Parties and without limiting the obligation of the Credit Parties to do so), ratably according to the respective amounts of their respective Commitments (or, to the
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amounts of the Loans and the L/C Obligations and the respective obligations, whether as Issuing Lender or a Participating Lender, under the Letter of Credit), from and against any and all losses,
claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Lender which may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted
against such Agent in any way relating to or arising out of the Commitments, the Credit Documents or any documents contemplated by or referred to herein or the transactions contemplated hereby or any action taken or omitted by such Agent under or in
connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, claims, damages, liabilities and related expenses including the reasonable fees, charges
and disbursements resulting solely from such Agent’s gross negligence or willful misconduct. The agreements in this subsection 10.7 shall survive the repayment of the Loans and all other amounts payable hereunder. 
 10.8. Agent in Its Individual Capacity. Each Agent and its Affiliates may make loans to, accept deposits from and generally engage in
any kind of business with any Credit Party as though such Agent were not an Agent hereunder. With respect to Loans made or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights
and powers, duties and liabilities under the Credit Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include such Agent in its individual capacity.

 10.9. Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 30 days’
notice to the Lenders and the Borrowers. If the Administrative Agent shall resign as Administrative Agent under the Credit Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders which successor
agent shall, so long as no Event of Default has occurred and is continuing, be approved by the Borrowers, which shall not unreasonably withhold or delay its approval, whereupon such successor agent shall succeed to the rights, powers and duties of
the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such appointment and approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall
be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement or any holders of the Notes. If no successor agent has accepted appointment as the applicable
Administrative Agent by the date which is 30 days following the retiring Administrative Agent’s notice of registration, the retiring Administrative Agent’s registration shall nevertheless thereupon become effective and the Lenders shall
perform all of the duties of such Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. After any retiring Administrative Agent’s resignation hereunder as Administrative
Agent, the provisions of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under the Credit Documents. 
 10.10. Issuing Lender as Issuer of Letters of Credit. Each Revolving Credit Lender hereby acknowledges that the provisions of this
Section 10 shall apply to the Issuing Lender, in its capacity as issuer of the Letters of Credit, in the same manner as such provisions are expressly stated to apply to the Administrative Agent, except that obligations to indemnify the Issuing
Lender shall be ratable among the Revolving Credit Lenders in accordance with their respective Revolving Credit Commitments and/or Incremental Revolving Commitments (or, if the Revolving Credit Commitments and Incremental

  

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Revolving Commitments have been terminated, the outstanding principal amount of their respective Revolving Credit Loans and L/C Obligations and their respective participating interests in the
outstanding Letters of Credit). 
 10.11. Other Agents. Each Lender hereby acknowledges that none of the Syndication
Agent, the Arrangers or any other Lender designated as “Agent” hereunder, herein or under any Credit Document has any liability hereunder other than its capacity as a Lender. Each party hereto agrees that each Agent not a signatory hereto
shall be a third party beneficiary of the rights herein set forth applicable to such Agent. 
 10.12. Withholding Tax. To
the extent required by any applicable Law, the Administrative Agent may withhold from any payment to any Lender or Issuing Lender an amount equivalent to any applicable withholding tax. If the Internal Revenue Service or any Governmental Authority
asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender or Issuing Lender for any reason (including, without limitation, because the appropriate form was not delivered or was
not properly executed, or because such Lender or Issuing Lender failed to notify the Administrative Agent of a change in circumstances that rendered the exemption from, or reduction of, withholding tax ineffective), such Lender or Issuing Lender
shall indemnify the Administrative Agent (to the extent that the Administrative Agent has not already been reimbursed by the Borrowers and without limiting or expanding the obligation of the Borrowers to do so) fully for all amounts paid, directly
or indirectly, by the Administrative Agent as tax or otherwise, including any penalties, additions to tax or interest thereto, together with all expenses incurred, including legal expenses and any out-of-pocket expenses, whether or not such tax was
correctly or legally imposed or asserted by the relevant Government Authority. A certificate as to the amount of such payment or liability delivered to any Lender or Issuing Lender by the Administrative Agent shall be conclusive absent manifest
error. 
 Each Lender or Issuing Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at
any time owing to such Lender or Issuing Lender under this Agreement or any other Credit Document against any amount due to the Administrative Agent under this subsection 10.12. The agreements in this subsection 10.12 shall survive the resignation
and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender or Issuing Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations. Unless required by
applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender or an Issuing Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender or
Issuing Lender. 
 SECTION 11. MISCELLANEOUS 
 11.1. Amendments and Waivers. Except as otherwise expressly set forth in this Agreement, no Credit Document nor any terms thereof may
be amended, supplemented, waived or modified except in accordance with the provisions of this subsection 11.1. With the written consent of the Required Lenders, the Administrative Agent (acting at the request of the Required Lenders) and the
applicable Credit Parties or their Subsidiaries may, from time to time, enter into written amendments, supplements or modifications hereto for the purpose of adding any provisions to any Credit Document to which they are parties or changing in any
manner the rights of the Lenders or of any such Credit Party or its Subsidiaries thereunder or waiving, on such terms and conditions as the Administrative Agent may specify in such instrument, any of the requirements of any such Credit Document or
any Default or Event of Default and its consequences; provided that: 
  

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 (a) no such waiver and no such amendment, supplement or modification shall
release all or substantially all of the Collateral or release any Guarantor from its obligations under its Guarantee in any such case without the written consent of all Lenders; provided that, notwithstanding the foregoing, this paragraph
(a) shall not be applicable to and no consent shall be required for (x) releases of Collateral in connection with any dispositions permitted by subsection 8.5, or (y) release of any Guarantor in connection with the sale or other
disposition of a Guarantor (or all or substantially all of its assets) permitted by this Agreement; 
 (b) (i) no
such waiver and no such amendment, supplement or modification shall reduce the amount of or extend the date of any scheduled amortization payment of any Term Loan or forgive the principal amount or extend the final scheduled date of maturity of any
Loan or Note (it being understood that subsection 4.5 does not provide for a final scheduled date of maturity of any Loan or Note), or extend the stated expiration date of any Letter of Credit beyond the Revolving Credit Termination Date as then in
effect, or reduce the stated rate of any interest, fee or letter of credit commission payable hereunder (except in connection with the waiver of applicability of any post-default increase in interests, fees or letter of credit commission) or extend
the scheduled date of any payment of any interest, fee or commitment commission, or increase the amount of the Commitments except as a result of an Incremental Term Loan pursuant to this Agreement (it being understood that waivers or modifications
of conditions precedent, covenants, Defaults or Events of Default or of mandatory reductions in the Commitments shall not constitute an increase in the Commitments of any Lender), or modify subsection 11.7(a) or subsection 12.3, in each case without
the written consent of each Lender whose obligations, Revolving Credit Commitments and/or Incremental Revolving Commitments, as the case may be, are being directly modified thereby and (ii) all of the Lenders under the Revolving Credit Facility
may extend the Revolving Credit Termination Date (it being understood that the consent of no other Lender or Agent need be obtained); 
 (c) no such waiver and no such amendment, supplement or modification shall amend, modify or waive any provision of this subsection 11.1 (except for technical amendments with respect to additional
extensions of credit pursuant to this Agreement which afford the protections to such additional extensions of credit of the type provided to the Loans and the Commitments on the Closing Date) or reduce any percentage specified in the definition of
Required Lenders (it being understood that, with the written consent of the Required Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of the Required Lenders on substantially the same basis as
the extensions of Loans and Revolving Credit Commitments are included in the Closing Date), or consent to the assignment or transfer by the Borrowers of any of their rights and obligations under this Agreement and the other Credit Documents, in each
case without the written consent of all Lenders; 
 (d) no such waiver and no such amendment, supplement or
modification shall change the allocation of payments between the Term Loan Facilities pursuant to subsection 4.7 without the written consent of the Majority Facility Lenders in respect of each Term Loan Facility adversely affected thereby;

  

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 (e) no such waiver and no such amendment, supplement or modification shall
reduce the percentage specified in the definition of Majority Facility Lenders with respect to any Facility without the written consent of all Lenders under such Facility (it being understood that, with the written consent of the relevant Majority
Facility Lenders, additional extensions of credit pursuant to this Agreement may be included in the determination of such Majority Facility Lenders on substantially the same basis as the extensions of the relevant Loans and Revolving Credit
Commitments are included in the Closing Date); 
 (f) no such waiver and no such amendment, supplement or
modification affecting the then Administrative Agent or Issuing Lender shall amend, modify or waive any provision of Section 10 without the written consent of such Administrative Agent or Issuing Lender, as the case may be; 
 (g) without the consent of any other Agent or of any Lender, the Credit Parties and the Administrative Agent may, in their
respective sole discretion, or shall, to the extent required by any Credit Document, enter into any amendment, modification or waiver of any Credit Document, or enter into any new agreement or instrument, to effect the granting, perfection,
protection, expansion or enhancement of any security interest in any Collateral or additional Property to become Collateral for the benefit of the Secured Parties, or as required by local law to give effect to, or protect any security interest for
the benefit of the Secured Parties, in any Property or so that the security interests therein comply with applicable law; 
 (h) with respect to any Incremental Facility, the related Incremental Loan Amendment, and any waiver, consent or other amendment to any term or provision of this Agreement necessary or advisable to
effectuate any Incremental Facility or any provision thereof in accordance with the terms of, or the intent of, this Agreement, shall be effective when executed by the Borrowers, the Administrative Agent and each Incremental Term Lender making the
related Incremental Term Commitment or Incremental Revolving Lender making the related Incremental Revolving Commitment, as the case may be; and 
 (i) no such amendment, modification, supplement or waiver of any condition precedent in subsection 6.2 to any Loan or issuance of a Letter of Credit may be made without the written consent of the Majority
Facility Lenders with respect to the Revolving Credit Facility; 
 provided, further, that notwithstanding anything to the contrary in
this Agreement, any such waiver and any such amendment, supplement or modification described in this subsection 11.1 shall apply equally to each of the Lenders and shall be binding upon each Credit Party and its Subsidiaries, the Lenders, the
Administrative Agent and the Issuing Lender and all future holders of the Notes and the Loans. Any extension of a Letter of Credit by the Issuing Lender shall be treated hereunder as a new Letter of Credit. In the case of any waiver, the Credit
Parties, the Lenders, the Administrative Agent and Issuing Lender shall be restored to their former position and rights hereunder and under the outstanding Notes, and any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon. The Administrative Agent may, but shall have no obligation to, with the written concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on the Borrowers in
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notice or demand in similar or other circumstances. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or
consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. 
 If, in connection with any proposed amendment, modification, waiver or termination (a “Proposed Change”) requiring the consent of all affected Lenders, the consent of the Required Lenders is obtained but the consent of
other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained as described in this subsection 11.1 being referred to as a “Non-Consenting Lender”), then, so long as the Administrative Agent
has agreed in writing, at the Borrowers’ request, the Administrative Agent or an Eligible Assignee reasonably acceptable to the Administrative Agent shall have the right, subject to compliance with subsection 11.6, to purchase from such
Non-Consenting Lender, and such Non-Consenting Lender agrees that it shall, upon the Administrative Agent’s request, sell and assign to the Lender acting as the Administrative Agent or such Eligible Assignee, all of the Commitments and Loans of
such Non-Consenting Lender for an amount equal to the principal balance of all Loans held by the Non-Consenting Lender and all accrued interest and fees with respect thereto through the date of sale, such purchase and sale to be consummated pursuant
to an executed Assignment and Acceptance. 
 11.2. Notices. All notices, requests and demands to or upon the parties
hereto to be effective shall be in writing (including by telecopy, if one is listed), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when sent, confirmation of receipt received, addressed as follows in the case of the Borrowers or any other Credit Party, the Administrative Agent and the Arrangers, and as
set forth in Schedule I hereto in the case of any Lender, or to such other address as may be notified in writing after the Closing Date by the respective parties hereto and any future Lenders: 
  

			
	 Holdings and the Borrowers:
	  	 Language Line, LLC

		  	 Coto Acquisition LLC

		  	 Language Line Holdings LLC

		  	 One Lower Ragsdale Drive

		  	 Building 2 Suite 400

		  	 Monterey, CA 93940

		  	 Attention Chief Executive Officer

		  	     Telecopy: (800) 752-0093

		  	     Telephone: (877) 886-3885

  

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		  	 Copy to:

		
		  	 ABRY Partners, LLC

		  	     111 Huntington Avenue

		  	     30th Floor

		  	     Boston, Massachusetts 02199

		  	     Attention: Peggy Koenig

		  	     Telecopy: (617) 859-2959

		  	     Telephone: (617) 859-8797

		
	 with a copy of notices (that will not
constitute notice to Holdings or the
Borrowers) to:
	  	 Kirkland & Ellis LLP

	  	     601 Lexington Avenue

	  	     New York, NY 10022

		  	     Fax: 212-446-4900

		  	 Attn: John L. Kuehn, Esq.

		  	          Ashley S. Gregory, Esq.

		
	 Borrowing Notices and Swing Line
Requests:
	  	 Bank of America, N.A.

		  	 Mail Code: TX1-492-14-04

		  	 Bank of America Plaza

		  	 901 Main St.

		  	 Dallas, TX 75202-3714

		  	 Attention: Maria T. Bulin

		  	 Phone: (214) 209-3098

		  	 Fax: (214) 290-9411

		
	 Issuing Lender Notices and Requests:
	  	 Bank of America, N.A.

		  	 Trade Finance Service Center

		  	 Mail Code: CA9-705-07-05

		  	 1000 West Temple St.

		  	 Los Angeles, CA 90012-1514

		  	 Attention: Manuel Banuelos

		  	 Phone: (213) 481-7837

		  	 Fax: (213) 457-8841

  

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	 Financial Information and other
Lender Notices and Documentation:
	  	 Bank of America, N.A.

	  	 Mail Code: TX1-492-14-11

		  	 Bank of America Plaza

		  	 901 Main St.

		  	 Dallas, TX 75202

		  	 Attention: Antonikia (Toni) L. Thomas

		  	 Phone: (214) 209-1569

		  	 Fax: (877) 206-8432

		
	 with a copy of notices to the Administrative
Agent, Swing Line Lender
or Issuing Lender (that will
not
constitute notice to the Administrative
Agent, Swing Line Lender or
Issuing Lender) to:
	  	 Cahill Gordon & Reindel LLP

	  	 80 Pine Street

	  	 New York, NY 10005

	  	 Attn: James J. Clark, Esq.

	  	          Ann Makich, Esq.

	  	 Fax: (212) 269-5420

 provided that any notice, request or demand to or upon the Administrative Agent or the Lenders
pursuant to subsections 3.4, 3.5, 4.1, 4.2, 4.3 and 4.4 shall not be effective until received and; provided, further, that the failure to provide the copies of notices to the Borrowers provided for in this subsection 11.2 shall not result in
any liability to the Administrative Agent. 
 11.3. No Waiver; Cumulative Remedies. No failure to exercise and no delay
in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. 
 11.4. Survival of Representations and Warranties. All representations and warranties made
hereunder and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement, the Letters of Credit and the Notes and the making of the extensions of credit
hereunder. 
 11.5. Payment of Expenses and Taxes; Indemnification. (a) The Borrowers agree to pay (i) all
reasonable out-of-pocket expenses incurred by each of the Agents and their respective Affiliates, including the reasonable fees, charges and disbursements of counsel for the Agents in connection with the syndication of the credit facilities provided
for herein, the preparation and administration of the Credit Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be consummated or any such amendment,
modification or waiver becomes effective), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder
and (iii) all reasonable out-of-pocket expenses incurred by the Agents, the Issuing Lender or any Lender, including the reasonable fees, charges and disbursements of any counsel for the Agents, the Issuing Lender or any Lender, in connection
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their rights in connection with the Credit Documents, including their rights under this subsection 11.5, or in connection with the Loans made, or Letters of Credit issued or drawn hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 
 (b) The Credit Parties agree to indemnify the Agents, the Issuing Lender and each Lender, and each of their Affiliates, officers, directors, employees, agents, trustees, advisors and controlled parties of
any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees,
charges and disbursements of any counsel (and environmental consultants or professionals) for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of
any Credit Document or any other agreement or instrument contemplated hereby, the performance by the parties to the Credit Documents of their respective obligations thereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on, at, under or from any Mortgaged Property or any other property currently or formerly owned,
leased or otherwise operated by Holdings or any of its Subsidiaries, or any liability under Environmental Laws related in any way to Holdings or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the bad faith, gross negligence, breach of this Agreement or
other Credit Documents or willful misconduct of such Indemnitee, or (v) any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and other similar taxes (other than
withholding taxes), if any, which may be payable or determined to be payable in connection with the execution and delivery of, or consummation of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, any Credit Document and any such other documents. 
 (c) To the extent that a Credit Party
fails to pay any amount required to be paid by them to an Agent or the Issuing Lender under paragraph (a) or (b) of this subsection 11.5, each Lender severally agrees to pay to such Agent or each Revolving Credit Lender agrees to pay the
Issuing Lender, as the case may be, such Lender’s or Revolving Credit Lender’s, as the case may be, pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent or the Issuing Lender in its capacity as such. For purposes hereof, a
Lender’s or Revolving Credit Lender’s “pro rata share” shall be determined based upon its share of the sum of the aggregate amount of the total Loans and Revolving Credit Commitments or Revolving Credit Loans and Revolving Credit
Commitments, as the case may be, at the time. 
  

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 (d) To the extent permitted by applicable law, no Credit Party shall assert, and each Credit
Party hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan, Letter of Credit or the use of the proceeds thereof. 
 (e) All amounts due under this subsection 11.5 shall be payable promptly after written demand therefor. 
 (f) The Credit Parties shall indemnify the Administrative Agent, the Lenders and each Issuer for, and hold the Administrative Agent, the Lenders and the Issuing Lender harmless from and against, any and
all claims for brokerage commissions, fees and other compensation made against the Administrative Agent, the Lenders and the Issuing Lender for any broker, finder or consultant with respect to any agreement, arrangement or understanding made by or
on behalf of Holdings or any Subsidiary in connection with the transactions contemplated by this Agreement. 
 (g) The Credit
Parties agree that any indemnification or other protection provided to any Indemnitee pursuant to this Agreement (including pursuant to this subsection 11.5) or any other Credit Document shall (i) survive payment in full of the Obligations,
(ii) survive the release of all or any portion of the Collateral and (iii) inure to the benefit of any Person that was at any time an Indemnitee under this Agreement or any other Credit Document. 
 11.6. Successors and Assigns; Participations and Assignments. (a) This Agreement shall be binding upon and inure to the benefit
of the Credit Parties, the Lenders, each Agent, all future holders of the Notes and the Loans, and their respective successors and assigns, except that the Borrowers may not assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of each Lender. 
 (b) Any Lender may, in the ordinary course of its commercial banking,
lending or investment business and in accordance with applicable law, at any time sell to one or more banks or other entities (“Participants”) participating interests in any Loan owing to such Lender, any participating interest in
the Letters of Credit of such Lender, any Note held by such Lender, any Commitment of such Lender or any other interest of such Lender hereunder. In the event of any such sale by a Lender of participating interests to a Participant, such
Lender’s obligations under this Agreement to the other parties to this Agreement shall remain unchanged, such Lender shall remain solely responsible for the performance thereof, such Lender shall remain the holder of any such Note for all
purposes under this Agreement and the Borrowers and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Credit
Documents. The Borrowers agree that if amounts outstanding under this Agreement and the Notes are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be
deemed to have the right of setoff in respect of its participating interest in amounts owing under this Agreement and any Note to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this
Agreement or any Note; provided that such right of setoff shall be subject to the obligation of such Participant to share with the Lenders, and the Lenders agree to share with such Participant, as provided in subsection 11.7. The Borrowers
also agrees that each Participant shall be entitled to the benefits of subsections 3.10, 4.14 and 4.15 with respect to its participation in the Letters of Credit and in the Commitments and the Loans outstanding from time

  

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to time as if it were a Lender; provided that no Participant shall be entitled to receive any greater amount pursuant to any such subsection than the transferor Lender would have been
entitled to receive in respect of the amount of the participation transferred by such transferor Lender to such Participant had no such transfer occurred, except in the case of subsection 4.14, where the entitlement to greater payments results from
a Change in Law after such Participant became a Participant. Each Lender agrees that the participation agreement pursuant to which any Participant acquires its participating interest (or any other document) may afford voting rights to such
Participant, or any right to instruct such Lender with respect to voting hereunder, only with respect to matters requiring the consent of either all of the Lenders hereunder or all of the Lenders holding the relevant Term Loans or Revolving Credit
Commitments and/or Incremental Revolving Commitments subject to such participation. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrowers, maintain a register on which it enters the name and
address of each Participant and the principal and interest amounts of each Participant’s interest in the Loans or other Obligations under this Agreement (the “Participant Register”). The entries in the Participant Register
shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 (c) Subject to paragraph (g) of this subsection 11.6, any Lender may at any time and from time to time, in the ordinary
course of its commercial banking, lending or investment business and in accordance with applicable law, 
 (i)
assign all or any part of its rights and obligations under this Agreement relating to the Term Loans and the Term Notes to any Lender or any Affiliate or Approved Fund of any Lender pursuant to an Assignment and Acceptance executed by such Assignee
and such assigning Lender, and delivered to the Administrative Agent (for its acceptance and recording in the Register (as defined below)); 
 (ii) assign, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed), all or any part of its rights and obligations under this Agreement relating to the
Revolving Credit Loans, the Revolving Credit Commitment and/or any Incremental Revolving Commitments and the Revolving Credit Notes to any Lender or any Affiliate thereof pursuant to an Assignment and Acceptance executed by such Assignee and such
assigning Lender and the Administrative Agent, and delivered to the Administrative Agent for its acceptance and recording in the Register; and 
 (iii) assign to one or more Eligible Assignees or Affiliated Debt Funds all or any part of its rights and obligations under this Agreement and the Notes pursuant to an Assignment and Acceptance executed
by such Assignee and such assigning Lender (and, in the case of (A) an Eligible Assignee that is not then a Lender or an Affiliate or Approved Fund of a Lender, by the Borrowers (so long as no Default or Event of Default shall have occurred and
be continuing) (such approval not to be unreasonably withheld or delayed) and the Administrative Agent and (B) any Affiliated Debt Fund, by the Administrative Agent) (such approval not to be unreasonably withheld or delayed), and delivered to
the Administrative Agent for its acceptance and recording in the Register; provided, however, no Term Loan may be assigned to a Affiliated Debt Fund pursuant to this subsection 11.6(c) if, after giving effect to such assignment, Affiliated
Debt Funds in the aggregate would own in excess of 10% of all Term Loans then outstanding. 
  

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 Each sale pursuant to clause (iii) of this subsection 11.6(c) shall be in a principal amount of at
least $1,000,000 (treating multiple, contemporaneous assignments by or to Approved Funds or Affiliates of a single Lender as a single assignment for such purpose) (or such lesser amounts as the Administrative Agent and the Borrowers may determine)
unless the assigning Lender is transferring all of its rights and obligations. In the event of a sale of less than all of such rights and obligations, such Lender after any such sale shall retain Commitments and/or Loans and/or L/C Participating
Interests aggregating at least $1,000,000 (or in such lesser amount as the Administrative Agent and the Borrowers may determine). Upon such execution, delivery, acceptance and recording, from and after the effective date determined pursuant to such
Assignment and Acceptance, (x) the Assignee thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with a Commitment as set forth therein, and
(y) the assigning Lender thereunder shall, to the extent of the interest transferred, as reflected in such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance
covering all or the remaining portion of a transferor Lender’s rights and obligations under this Agreement, such transferor Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of subsection 4.14 and the
indemnification provisions set forth in subsection 11.5). For the purposes of this paragraph (c) and for the avoidance of doubt, the contemporaneous sale of any obligations under this Agreement and the Notes to an Eligible Assignee and one or
more of its Approved Funds shall constitute a single sale and the principal amount thereof shall be aggregated. 
 (d) The
Administrative Agent, which for purposes of this subsection 11.6(d) only shall be deemed to be the agent of the Borrowers, shall maintain at the address of the Administrative Agent referred to in subsection 11.2 a copy of each Assignment and
Acceptance delivered to it and a register (the “Register”) for the recordation of the names and addresses of the Lenders and the Commitments of, and principal amounts of the Loans owing to, each Lender from time to time. The entries
in the Register shall be conclusive in the absence of manifest error, and the Borrowers, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register as the owner of a Loan or other obligation hereunder as
the owner thereof for all purposes of this Agreement and the other Credit Documents, notwithstanding any notice to the contrary. Any assignment of any Loan or other obligation hereunder shall be effective only upon appropriate entries with respect
thereto being made in the Register. The Register shall be available for inspection by the Borrowers or the Arrangers and any Lender (as to such Lender’s position only) at any reasonable time and from time to time upon reasonable prior notice.

 (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an Assignee (and by the Borrowers
and the Administrative Agent to the extent required by paragraph (c) of this subsection 11.6), together with payment to the Administrative Agent of a registration and processing fee of $3,500 (the “Assignment Fee”) if the
Assignee is not a Lender, Approved Fund or Affiliate of such Lender prior to the execution of such Assignment and Acceptance and $1,000 otherwise (in each case (i) treating multiple, contemporaneous assignments by or to Approved Funds or
Affiliates of a single Lender as a single assignment for such purpose and (ii) such fees may be waived in the sole discretion of the Administrative Agent), the Administrative Agent shall (i) promptly accept such Assignment and Acceptance
and (ii) on the effective date determined pursuant thereto record the information contained therein in the Register and give notice of such acceptance and recordation to the relevant Lenders and the Borrowers (and no such assignment shall
become effective unless and until so recorded); provided that, in the case of contemporaneous assignments by a Lender to more than one fund managed by the same investment advisor or an Affiliate of such investment advisor (which funds are not
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hereunder), only a single Assignment Fee shall be payable for all such contemporaneous assignments; provided further that if the parties to such assignment electronically execute and
deliver to the Administrative Agent an Assignment and Acceptance via an electronic settlement system designated by the Administrative Agent (which shall initially be Clearpar, LLC) the Assignment Fee shall be $500. On or prior to such effective
date, the Borrowers at their own expense, shall execute and deliver to the Administrative Agent (in exchange for any or all of the Term Notes or Revolving Credit Notes of the assigning Lender, if any (or if any Note is lost, an affidavit of such
loss and indemnity satisfactory to the Borrowers)) new Term Notes or Revolving Credit Notes, as the case may be, to the order of such Assignee (if requested) in an amount equal to the Revolving Credit Commitment and/or Incremental Revolving
Commitment or the Term Loans, as the case may be, assumed by it pursuant to such Assignment and Acceptance and, if the assigning Lender has retained a Commitment or any Term Loans hereunder, new Term Notes or Revolving Credit Notes, as the case may
be, to the order of the assigning Lender in an amount equal to the Commitment or such Term Loans, as the case may be, retained by it hereunder (if requested). Such new Notes shall be dated the Closing Date and shall otherwise be in the form of the
Notes replaced thereby. 
 (f) Each Agent and the Lenders agree that they will use reasonable efforts to protect the
confidentiality of any confidential information concerning Holdings and its Subsidiaries and Affiliates. Each Credit Party authorizes each Lender to disclose (i) to its employees, officers, Affiliates and advisors, who shall be bound by the
confidentiality provisions hereof, (ii) to any regulatory authority as required by law or to any quasi-regulatory authority (including the National Association of Insurance Commissioners), (iii) in connection with any enforcement or other
legal action, (iv) to any Participant or Assignee (each, a “Transferee”) and any prospective Transferee any and all information in such Lender’s possession concerning Holdings and its Subsidiaries which has been delivered
to such Lender by or on behalf of any Credit Party pursuant to this Agreement or which has been delivered to such Lender by or on behalf of any Credit Party in connection with such Lender’s credit evaluation of Holdings and its Subsidiaries
prior to becoming a party to this Agreement; provided that each Lender shall cause its respective prospective and actual Transferees to agree in writing to protect the confidentiality of any confidential information concerning each Credit
Party and its Subsidiaries and Affiliates, (v) as has become generally available to the public, (vi) as may be required or appropriate in any report, statement or testimony submitted to any municipal, state or federal regulatory body
having or claiming to have jurisdiction over such party or to the Board of Governors of the Federal Reserve System or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States or elsewhere) or their successors,
and (vii) as may be required or appropriate in response to any summons or subpoena or in connection with any litigation or regulatory proceeding; provided, however, that each Credit Party acknowledges that the Administrative Agent has
disclosed and may continue to disclose such information as the Administrative Agent in its sole discretion determines is appropriate to the Lenders from time to time. 
 (g) If, pursuant to this subsection 11.6, any interest in this Agreement or any Note is transferred to any Transferee which is organized under the laws of any jurisdiction other than the United States or
any State thereof, the transferor Lender shall cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the terms of this Agreement, including subsection 4.14(d). 
 (h) For avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this subsection 11.6 concerning assignments of
Loans and Notes relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests, including,

  

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without limitation, any pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank in accordance with applicable law; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (i) Notwithstanding anything to the contrary contained herein, any Lender (the “Granting Lender”) may grant to a special purpose funding vehicle (an “SPV”), identified as
such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrowers, the option to provide to the Borrowers all or any part of any Loan that the Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any SPV to make any Loan, (ii) if an SPV elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof. The making of an Loan by an SPV hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party
hereto hereby agrees that no SPV shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees
(which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it will not institute
against, or join any other person in instituting against, such SPV any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof. In addition, notwithstanding anything to
the contrary contained in this subsection 11.6(i), any SPV may (i) with notice to, but without the prior written consent of, the Borrowers and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of
its interests in any Loans to the Granting Lender or to any financial institutions (consented to in writing by the Borrowers and Administrative Agent) providing liquidity and/or credit support to or for the account of such SPV to support the funding
or maintenance of Loans and (ii) disclose on a confidential basis, subject to and in accordance with subsection 11.6(f), any information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPV. This section may not be amended without the written consent of any adversely affected SPV. 
 (j) Notwithstanding anything in subsection 11.1 or the definitions of “Required Lenders” or “Majority Facility Lenders” to the contrary, for purposes of determining whether the
Required Lenders or Majority Facility Lenders have (i) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Credit Document or any departure by any Credit Party
therefrom, (ii) otherwise acted on any matter related to any Credit Document, or (iii) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any
Credit Document, all Term Loans held by Affiliated Debt Funds shall be deemed not to be outstanding for all purposes of calculating whether the Required Lenders or Majority Facility Lenders, as the case may be, have taken any actions; provided
that any Affiliated Debt Fund shall have the right to approve any amendment, modification, waiver or consent of the type described in subsection 11.1 (a), (b), (c) or (e) of this Agreement to the extent that such Affiliated Debt Fund
is directly and adversely affected thereby; provided further that any Affiliated Debt Fund that holds Term Loans shall receive any fee paid to consenting Lenders in connection with any amendment, modification, waiver, consent or other action
with respect to any of the terms of any Credit Document or any departure by any Credit Party therefrom pursuant to subsection 11.1. 
  

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 Additionally, the Credit Parties and each Affiliated Debt Fund (solely in its capacity as a
Lender under this Agreement) hereby agree that if a case under Title 11 of the United States Code is commenced against any Credit Party, such Credit Party shall seek (and each Affiliated Debt Fund (solely in its capacity as a Lender under this
Agreement) shall consent) to provide that the vote of any Affiliated Debt Fund (solely in its capacity as a Lender under this Agreement) with respect to any plan of reorganization of such Credit Party shall not be counted. Each Affiliated Debt Fund
(solely in its capacity as a Lender under this Agreement) hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as such Affiliated Debt Fund’s attorney-in-fact, with full authority in the place
and stead of such Affiliated Debt Fund and in the name of such Affiliated Debt Fund, from time to time in the Administrative Agent’s discretion to take any action and to execute any instrument that the Administrative Agent may deem reasonably
necessary to carry out the provisions of this paragraph. 
 11.7. Adjustments; Set-off. (a) If any relevant Lender
(a “benefited Lender”) shall at any time receive any payment of all or part of any of its Loans or L/C Participating Interests, as the case may be, or interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in subsection 9(f), or otherwise) in a greater proportion than any such payment to and collateral received by any other relevant Lender (other than
in accordance with any provision hereof expressly providing for payments to be made only to an individual Lender or to the Lenders of a particular Facility), if any, in respect of such other relevant Lender’s Loans or L/C Participating
Interests, as the case may be, or interest thereon, such benefited Lender shall purchase for cash from the other relevant Lenders such portion of each such other relevant Lender’s Loans or L/C Participating Interests, as the case may be, or
shall provide such other relevant Lenders with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably with
each of the relevant Lenders; provided that if all or any portion of such excess payment or benefits is thereafter recovered from such benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the
extent of such recovery, but without interest. Each Credit Party agrees that each Lender so purchasing a portion of another Lender’s Loans and/or L/C Participating Interests may exercise all rights of payment (including, without limitation,
rights of set-off) with respect to such portion as fully as if such Lender were the direct holder of such portion. The Administrative Agent shall promptly give the Borrowers notice of any set-off; provided that the failure to give such notice
shall not affect the validity of such set-off. 
 (b) In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to any Credit Party, any such notice being expressly waived by each Credit Party to the extent permitted by applicable law, upon the occurrence of any Event of Default to set off and apply
against any indebtedness, whether matured or unmatured, of any Credit Facility to such Lender, any amount owing from such Lender to any Credit Party, at or at any time after, the happening of any of the above mentioned events. As security for such
indebtedness, any Credit Party hereby grants to each Lender a continuing security interest in any and all deposits, accounts or moneys of any Credit Party then or thereafter maintained with such Lender, subject in each case to subsection 11.7(a) of
this Agreement. The aforesaid right of set-off may, to the extent permitted by applicable law, be exercised by such Lender against any Credit Party or against any trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver or execution, judgment or attachment creditor of any Credit Party, or against anyone else claiming through or against any Credit Party or such trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, receiver, or
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attachment creditor, notwithstanding the fact that such right of set-off shall not have been exercised by such Lender prior to the making, filing or issuance, or service upon such Lender of, or
of notice of, any such petition; assignment for the benefit of creditors; appointment or application for the appointment of a receiver; or issuance of execution, subpoena, order or warrant. Each Lender agrees promptly to notify the Borrowers and the
Administrative Agent after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application. 
 11.8. Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrowers and the Administrative
Agent. This Agreement shall become effective with respect to the Borrowers, the Administrative Agent and the Lenders when the Administrative Agent shall have received copies of this Agreement executed by the Borrowers, the Administrative Agent and
the Lenders, or, in the case of any Lender, shall have received telephonic confirmation from such Lender stating that such Lender has executed counterparts of this Agreement or the signature pages hereto and sent the same to the Administrative
Agent. Delivery of a signed counterpart by facsimile or Adobe “pdf” file shall be effective as delivery of a manually executed counterpart. 
 11.9.
Governing Law; Third Party Rights. This Agreement and the Notes and the rights and obligations of the parties under this Agreement and the Notes shall be governed by, and construed and interpreted in accordance with, the law of the State of
New York. This Agreement is solely for the benefit of the parties hereto and their respective successors and assigns, and, except as set forth in Section 10 and this subsection 11.9, no other Persons shall have any right, benefit, priority or
interest under, or because of the existence of, this Agreement. The designation of any Agent by the Administrative Agent in connection with the syndication hereof shall entitle such Agents to certain rights as third-party beneficiaries as provided
herein, without any further act by any party hereto. 
 11.10. Submission to Jurisdiction; Waivers. (a) Each party
to this Agreement hereby irrevocably and unconditionally: 
 (i) submits for itself and its property in any legal
action or proceeding relating to this Agreement or any of the other Credit Documents, or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the courts of the State of New York, the courts of
the United States for the Southern District of New York, and appellate courts from any thereof; 
 (ii) consents
that any such action or proceeding may be brought in such courts, and waives any objection that it may on the Closing Date or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was
brought in an inconvenient court and agrees not to plead or claim the same; 
 (iii) agrees that service of
process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party at its address set forth in subsection 11.2 or at such
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 (iv) agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction. 
 (b) Each party hereto
unconditionally waives trial by jury in any legal action or proceeding referred to in paragraph (a) above and any counterclaim therein. 
 11.11. Marshaling; Payments Set Aside. None of the Administrative Agent, any Lender or the Issuing Lender shall be under any obligation to marshal any assets in favor of the Borrowers or any other
party or against or in payment of any or all of the Obligations. To the extent that the Borrowers make a payment or payments to the Administrative Agent, the Lenders or the Issuing Lender or any such Person receives payment from the proceeds of the
Collateral or exercises its rights of set-off, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid
to a trustee, receiver or any other party, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, right and remedies therefor, shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or set-off had not occurred. 
 11.12. Interest. Each provision
in this Agreement and each other Credit Document is expressly limited so that in no event whatsoever shall the amount paid, or otherwise agreed to be paid, by the Borrowers for the use, forbearance or detention of the money to be loaned under this
Agreement or any other Credit Document or otherwise (including any sums paid as required by any covenant or obligation contained herein or in any other Credit Document which is for the use, forbearance or detention of such money), exceed that amount
of money which would cause the effective rate of interest to exceed the highest lawful rate permitted by applicable law (the “Highest Lawful Rate”), and all amounts owed under this Agreement and each other Credit Document shall be
held to be subject to reduction to the effect that such amounts so paid or agreed to be paid which are for the use, forbearance or detention of money under this Agreement or such other Credit Document shall in no event exceed that amount of money
which would cause the effective rate of interest to exceed the Highest Lawful Rate. Notwithstanding any provision in this Agreement or any other Credit Document to the contrary, if the maturity of the Loans or the obligations in respect of the other
Credit Documents are accelerated for any reason, or in the event of any prepayment of all or any portion of the Loans or the obligations in respect of the other Credit Documents by the Borrowers or in any other event, earned interest on the Loans
and such other obligations of the Borrowers may never exceed the Highest Lawful Rate, and any unearned interest otherwise payable on the Loans or the obligations in respect of the other Credit Documents that is in excess of the Highest Lawful Rate
shall be canceled automatically as of the date of such acceleration or prepayment or other such event and (if theretofore paid) shall, at the option of the holder of the Loans or such other obligations, be either refunded to the Borrowers or
credited on the principal of the Loans. In determining whether or not the interest paid or payable, under any specific contingency, exceeds the Highest Lawful Rate, the Borrowers and the Lenders shall, to the maximum extent permitted by applicable
law, amortize, prorate, allocate and spread, in equal parts during the period of the actual term of this Agreement, all interest at any time contracted for, charged, received or reserved in connection with this Agreement. 
 11.13. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
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 11.14. Integration. This Agreement and the other Credit Documents represent the
entire agreement of the Credit Parties, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender
relative to the subject matter hereof and thereof not expressly set forth or referred to herein or in the other Credit Documents. 
 11.15. Acknowledgments. Each Credit Party hereby acknowledges that: 
 (a) it has been advised by
counsel in the negotiation, execution and delivery of this Agreement and the other Credit Documents; 
 (b)
neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Credit Party arising out of or in connection with this Agreement or any of the other Credit Documents, and the relationship between the Administrative
Agent and the Lenders, on one hand, and each Credit Party, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
 (c) no joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among any Credit Party and the Lenders. 
 11.16. USA PATRIOT Act. Each Lender
that is subject to the Patriot Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies each Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Credit Parties, which information includes the name, address and tax identification number of
the Credit Parties and other information regarding the Credit Parties that will allow such Lender or the Administrative Agent, as applicable, to identify the Credit Parties in accordance with the Patriot Act. This notice is given in accordance with
the requirements of the Patriot Act and is effective as to the Lender and the Administrative Agent. 
 11.17. Release.
(a) This Agreement and the Security Documents (i) shall automatically terminate (other than those obligations that specifically survive the Termination Date (as defined)) when (A) all the Obligations (other than unasserted contingent
indemnification obligations not due and payable) have been paid in full in cash and (B) no Secured Party has any further commitment to lend or otherwise extend credit under this Agreement (the date of satisfaction of the requirements of clauses
(A) and (B), the “Termination Date”). Following the Termination Date, the Administration Agent shall, at the request of the Borrowers, execute and deliver to the Credit parties, at the sole expense of the Borrowers, all UCC
termination statements and other documents that the Borrowers shall reasonably request to evidence such termination. 
 (b) Upon
a sale or other transfer by any Credit Party of any Collateral in accordance with this Agreement to a Person that is not a Lender, or upon the effectiveness of any written consent to the release of the security interests granted hereby in any
Collateral pursuant to this Agreement, security interests in such Collateral shall be automatically released. In connection with such release, the Administrative Agent shall execute and deliver to any Credit Party, as the sole expense of the
Borrowers, all UCC termination statements and other documents that the Borrowers shall reasonably request to evidence such release. 
  

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 SECTION 12. COLLATERAL ACCOUNT; APPLICATION OF COLLATERAL PROCEEDS 
 12.1. Collateral Account. (a) The Administrative Agent is hereby authorized to establish and maintain at its office, in the name
of the Administrative Agent and pursuant to a Control Agreement, a restricted deposit account designated “Language Line — Collateral Account” with respect to which the Administrative Agent shall at all times have “control”
(as defined in Section 9-104 of the UCC). Each Credit Party shall (subject to the limitations set forth in the definition of Net Proceeds and subsection 8.5) deposit into the Collateral Account from time to time (A) any cash in respect of
any Collateral to which the Administrative Agent is entitled pursuant to the Credit Documents and (B) any cash such Credit Party is required to pledge as additional collateral security hereunder pursuant to the Credit Documents. 
 (b) The balance from time to time in the Collateral Account shall constitute part of the Collateral and shall not constitute payment of the
Obligations until applied as hereinafter provided. So long as no Event of Default has occurred and is continuing or will result therefrom, the Administrative Agent shall within one Business Day of receiving a request of the applicable Credit Party
for release of cash proceeds with respect to the L/C Sub-Account at such time as all Letters of Credit shall have been terminated and all of the liabilities in respect of the Letters of Credit have been paid in full. At any time following the
occurrence and during the continuance of an Event of Default, the Administrative Agent may (and, if instructed by the Lenders as specified herein, shall) in its (or their) discretion apply and provide notice to the Borrowers of such application or
cause to be applied (subject to collection) the balance from time to time outstanding to the credit of the Collateral Account to the payment of the Obligations in the manner specified in subsection 12.3 subject, however, in the case of amounts
deposited in the L/C Sub-Account, to the provisions of subsection 12.1(d). The Credit Parties shall have no right to withdraw, transfer or otherwise receive any fund deposited in the Collateral Account except to the extent specifically provided
herein. 
 (c) Amounts on deposit in the Collateral Account shall be invested from time to time in Cash Equivalents as the
applicable Credit Party (or, after the occurrence and during the continuance of an Event of Default, the Administrative Agent) shall determine, which Cash Equivalents shall be held in the name and be under the control of the Administrative Agent (or
any sub-agent); provided that at any time after the occurrence and during the continuance of an Event of Default, the Administrative Agent may (and, if instructed by the Lenders as specified herein, shall) in its (or their) discretion at any
time and from time to time elect to liquidate any such Cash Equivalents and to apply or cause to be applied the proceeds thereof to the payment of the Obligations in the manner specified in subsection 12.3. 
 (d) Amounts deposited into the Collateral Account as cover for liabilities in respect of Letters of Credit under any provision of this
Agreement requiring such cover shall be held by the Administrative Agent in a separate sub-account designated as the “L/C Sub-Account” (the “L/C Sub-Account”) and, notwithstanding any other provision hereof to the
contrary, all amounts held in the L/C Sub-Account shall constitute collateral security first for the liabilities in respect of Letters of Credit outstanding from time to time and second as collateral security for the other Obligations
hereunder until such time as all Letters of Credit shall have been terminated and all of the liabilities in respect of Letters of Credit have been paid in full. 
  

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 12.2. Proceeds of Destruction, Taking and Collateral Dispositions. (a) So long
as no Event of Default shall have occurred and be continuing, in the event there shall be any net award in respect of any Taking or net insurance proceeds in respect of any Destruction or net cash proceeds from any sale or disposition of Collateral
of the type contemplated in subsection 8.5(g), the applicable Credit Party shall have the right, at such Credit Party’s option, to apply such net award or net insurance proceeds within one year from the date of the applicable Destruction,
Taking or disposition to reinvest in properties or assets owned (or to be owned) by Holdings or its Subsidiaries in accordance with the applicable provisions of this Agreement or to repair, replace or restore any property in respect of which such
Net Proceeds were paid, no later than one year following the date of receipt of such proceeds; provided that if the property subject to such Destruction or Taking constituted Collateral under the Security Documents, then all property
purchased with the Net Proceeds thereof pursuant to this subsection shall be made subject to the Lien of the applicable Security Documents in favor of the Administrative Agent, for its benefit and for the benefit of the other Secured Parties in
accordance with subsections 7.9 and 7.12. In the event such Credit Party elects so to reinvest such net insurance proceeds or net awards or net cash proceeds, as the case may be, such Credit Party shall deliver to the Administrative Agent (A) a
written notice of such election and (B) an Officers’ Certificate stating that (1) the net insurance proceeds or net awards, as the case may be, shall be utilized so to reinvest in Collateral in the manner contemplated by the proviso
set forth in clause (b) of the definition of Net Proceeds, or the net cash proceeds shall be utilized so to reinvest in Collateral in the manner contemplated by the proviso set forth in subsection 8.5(h), as the case may be, and (2) no
Event of Default (or in the case of any net award in respect of any Taking or net insurance proceeds in respect of any Destruction, no Event of Default under subsections 9(a), (e), (f), (g) or (h)) has occurred and is continuing (the items
described in clauses (1) and (2) of this sentence, collectively, the “Investment Election Notice”). In the event such net awards, net insurance proceeds or net cash proceeds, as the case may be, shall be in an amount less
than $5,000,000, upon receipt of an Investment Election Notice, the Administrative Agent shall release such net insurance proceeds or net awards or net cash proceeds to such Credit Party in accordance with the provisions of subsection 12.1(b).

 (b) In the event there shall be any net awards or net insurance proceeds or net cash proceeds, as the case may be, in an
amount equal to or greater than $5,000,000, the Administrative Agent shall not release any part of such net awards or net insurance proceeds or net cash proceeds, as the case may be, until the applicable Credit Party has furnished to the
Administrative Agent (i) an Officers’ Certificate setting forth: (1) a brief description of the reinvestment to be made, (2) the dollar amount of the expenditures to be made, or costs incurred by such Credit Party in connection
with such reinvestment and (3) each request for payment shall be made on at least one (1) Business Day’s prior notice to the Administrative Agent and such request shall state that the properties or assets acquired in connection with
such reinvestment have a fair market value at least equal to the amount of such net awards or net insurance proceeds or net cash proceeds, as the case may be, requested to be released from the Collateral Account and (ii) all security agreements
and Mortgages and other items required by the provisions of subsection 7.9 to, among other things, subject such reinvestment properties or assets to the Lien of the Security Documents in favor of the Administrative Agent, for its benefit and for the
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 12.3. Application of Proceeds. The proceeds received by the Administrative Agent in
respect of any sale of, collection from or other realization upon all or any part of the Collateral pursuant to the exercise by the Administrative Agent of its remedies shall be applied, together with any other sums then held by the Administrative
Agent pursuant to this Agreement, promptly by the Administrative Agent as follows: 
 FIRST, to the
payment of all reasonable out-of-pocket costs and expenses, fees, commissions and taxes of such sale, collection or other realization including, without limitation, compensation to the Administrative Agent and its agents and counsel, and all
expenses, liabilities and advances made or incurred by the Administrative Agent in connection therewith, together with interest on each such amount at the highest rate then in effect under this Agreement from and after the date such amount is due,
owing or unpaid until paid in full; 
 SECOND, to the payment of all other reasonable out-of-pocket costs
and expenses of such sale, collection or other realization including, without limitation, compensation to the other Secured Parties and their agents and counsel and all costs, liabilities and advances made or incurred by the other Secured Parties in
connection therewith, together with interest on each such amount at the highest rate then in effect under this Agreement from and after the date such amount is due, owing or unpaid until paid in full; 
 THIRD, without duplication of amounts applied pursuant to clauses FIRST and SECOND above, to the
indefeasible payment in full in cash, pro rata, of (i) interest, principal and other amounts constituting Obligations (other than the obligations arising under the Interest Rate Agreements) in each case equally and ratably in
accordance with the respective amounts thereof then due and owing and (ii) the obligations arising under the Interest Rate Agreements in accordance with the terms of the Interest Rate Agreements; and 
 FOURTH, the balance, if any, to the Person lawfully entitled thereto (including the applicable Credit Party or its
successors or assigns). 
 In the event that any such proceeds are insufficient to pay in full the items described in clauses
FIRST through THIRD of this subsection 12.3, the Credit Parties shall remain liable for any deficiency. 
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered in New York, New York by their proper and duly authorized officers as of the day and year first above written. 
  

					
	LANGUAGE LINE, LLC
		
	By:	 	/s/ Michael Schmidt
		 	Name:	 	Michael Schmidt
		 	Title:	 	Chief Financial Officer
	
	COTO ACQUISITION LLC
		
	By:	 	/s/ Michael Schmidt
		 	Name:	 	Michael Schmidt
		 	Title:	 	Chief Financial Officer

 [Credit Agreement] 

Table of Contents

					
	LANGUAGE LINE HOLDINGS LLC
		
	By:	 	/s/ Michael Schmidt
		 	Name:	 	Michael Schmidt
		 	Title:	 	Chief Financial Officer

 [Credit Agreement] 

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	 LANGUAGE LINE HOLDINGS II, INC.
 LANGUAGE LINE HOLDINGS III, INC.
 LANGUAGE LINE HOLDINGS, INC.
 LANGUAGE LINE, INC.
 COTO HOLDINGS LLC
 COTO GLOBAL SOLUTIONS LLC
 TELE-INTERPRETERS LLC

 COTO LANGUAGE SERVICES, LLC
 LINGO
SYSTEMS, LLC
 LANGUAGE LINE SERVICES, INC.
 ON LINE INTERPRETERS, INC.
 ENVOK, LLC
 LANGUAGE LINE PANAMA, LLC
 LANGUAGE LINE COSTA RICA, LLC
 LANGUAGE LINE DOMINICAN REPUBLIC, LLC

		
	By:	 	/s/ Michael Schmidt
		 	Name:	 	Michael Schmidt
		 	Title:	 	Chief Financial Officer

 [Credit Agreement] 

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	BANC OF AMERICA SECURITIES LLC,
	    As Joint Lead Arranger and Joint Book-Runner
		
	By:	 	/s/ John Mc Cusker
		 	Name:	 	John Mc Cusker
		 	Title:	 	

 [Credit Agreement] 

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	CREDIT SUISSE SECURITIES (USA) LLC,
	    As Joint Lead Arranger and Joint Book-Runner
		
	By:	 	/s/ Jeffrey Cohen
		 	Name:	 	Jeffrey Cohen
		 	Title:	 	Managing Director

 [Credit Agreement] 

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	MORGAN STANLEY SENIOR FUNDING, INC.,
	    As Joint Lead Arranger and Joint Book-Runner
		
	By:	 	/s/ Colin Bathgate
		 	Name:	 	Colin Bathgate
		 	Title:	 	Vice President

 [Credit Agreement] 

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	BANK OF AMERICA, NA.,
	    Individually and as Administrative Agent
		
	By:	 	/s/ Antonikia (Toni) Thomas
		 	Name:	 	Antonikia (Toni) Thomas
		 	Title:	 	Assistant Vice President

 [Credit Agreement] 

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	CREDIT SUISSE SECURITIES (USA) LLC,
	    Individually and as Syndication Agent
		
	By:	 	/s/ Jeffrey Cohen
		 	Name:	 	Jeffrey Cohen
		 	Title:	 	Managing Director

 [Credit Agreement] 

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	MORGAN STANLEY SENIOR FUNDING, INC.,
	    Individually and as Documentation Agent
		
	By:	 	/s/ Colin Bathgate
		 	Name:	 	Colin Bathgate
		 	Title:	 	Vice President

 [Credit Agreement] 

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	BANK OF AMERICA. N.A.,
	    as a Lender
		
	By:	 	/s/ Mark Short
		 	Name:	 	Mark Short
		 	Title:	 	Senior Vice President

 [Credit Agreement] 

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	CREDIT SUISSE, CAYMAN ISLANDS BRANCH
	    as a Lender
		
	By:	 	/s/ Rianka Mohan
		 	Name:	 	Rianka Mohan
		 	Title:	 	Vice President
		
	By:	 	/s/ Vipul Dhadda
		 	Name:	 	Vipul Dhadda
		 	Title:	 	Associate

 [Credit Agreement] 

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	MORGAN STANLEY BANK, N.A.
	    as a Lender
		
	By:	 	/s/ Colin Bathgate
		 	Name:	 	Colin Bathgate
		 	Title:	 	Authorized Signatory

 [Credit Agreement] 

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 Schedule I 
 Addresses for Notices; Lending Offices; Commitment Amounts 
  

							
	 LENDER
	  	REVOLVING
CREDIT
COMMITMENT	  	TRANCHE B
TERM LOAN
COMMITMENT
	 Bank of America, N.A.
	  	$	20,000,000.00	  	$	525,000,000.00
	 Mail Code: TX1-492-14-11
	  			  		
	 Bank of America Plaza
	  			  		
	 901 Main St.
	  			  		
	 Dallas, TX 75202
	  			  		
	 Attention: Antonikia (Toni) L.
	  			  		
	 Thomas
	  			  		
			
	 Credit Suisse, Cayman Islands
	  	$	15,000,000.00	  	$	0
	 Branch
	  			  		
	 Eleven Madison Avenue
	  			  		
	 New York, NY 10010
	  			  		
			
	 Morgan Stanley Bank, N.A.
	  	$	15,000,000.00	  	$	0
	 One Utah Center
	  			  		
	 201 South Main Street, 5th Floor
	  			  		
	 Salt Lake City, Utah 84111
	  			  		
			
	 TOTAL
	  	$	50,000,000.00	  	$	525,000,000.00

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 Schedule II 
 Subsidiary Guarantors 
  

	 	1.	Language Line Holdings II, Inc. 

  

	 	2.	Coto Holdings LLC 

  

	 	3.	Coto Global Solutions LLC 

  

	 	4.	Tele-Interpreters LLC 

  

	 	5.	Coto Language Services, LLC 

  

	 	6.	Lingo Systems, LLC 

  

	 	7.	Language Line Holdings III, Inc. 

  

	 	8.	Language Line Holdings, Inc. 

  

	 	9.	Language Line, Inc. 

  

	 	10.	Language Line Services, Inc. 

  

	 	11.	On Line Interpreters, Inc. 

  

	 	12.	Envok, LLC 

  

	 	13.	Language Line Dominican Republic, LLC 

  

	 	14.	Language Line Panama, LLC 

  

	 	15.	Language Line Costa Rica, LLC 

  

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 Schedule 5.1(a) 
 Financial Statements 
 See attachment. 

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 Company Registration No. 5573013 (England and Wales) 
 LANGUAGE LINE SERVICES UK LIMITED 
 ANNUAL REPORT 
 FOR THE YEAR ENDED 31 DECEMBER 2008 

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 LANGUAGE LINE SERVICES UK LIMITED 
 DIRECTORS AND ADVISERS 
  
  
  

					
	 	 	Directors	  	D G Dracup
		 		  	C J Brucato
		 		  	V Eke
		 		  	L F Provenzano
			
		 	Secretary	  	P Teesdale
			
		 	Company number	  	5573013
			
		 	Registered office	  	25th Floor
		 		  	40 Bank Street
		 		  	London
		 		  	E14 5NR
			
		 	Registered auditors	  	HLB Vantis Audit plc
		 		  	66 Wigmore Street
		 		  	London
		 		  	WIU 2SB

  

  

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 LANGUAGE LINE SERVICES UK LIMITED 
 CONTENTS 
  
  
  

					
	 	 	 	  	Page
			
		 	Directors’ report	  	1 - 2
			
		 	Independent auditors’ report	  	3 - 4
			
		 	Consolidated profit and loss account	  	5
			
		 	Balance sheets	  	6
			
		 	Consolidated cash flow statement	  	7
			
		 	Notes to the consolidated cash flow statement	  	8
			
		 	Notes to the financial statements	  	9 - 19

  

  

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 LANGUAGE LINE SERVICES UK LIMITED 
 DIRECTORS’ REPORT 
 FOR THE YEAR ENDED 31 DECEMBER 2008 
  
  
  

 The directors present their report and financial statements for the year ended 31 December 2008.

 Principal activities and review of the business 
 The group’s principal activity continued to be the provision of language services. 
 The
directors are satisfied with the results for the year which continue to show an increasing demand for interpreting and translations services in the UK. Turnover increased by almost £400,000 in the year in spite of wider competitive price
pressure. This was achieved through significant investment in the quality of service provision and the broadening of the service portfolio to lead the market in responsiveness to customer needs. The directors are pleased with levels of business
retained and new business won. Price competition in core business has impacted margins and development of new business streams has been continuing. As a result the company operating margin, its key performance indicator, reduced from 41.3% to 32.1%.
This was in line with expectations and is reasonable for the sector. 
 Financial instruments 
 The group’s financial instruments comprise bank balances, trade creditors. trade debtors and loans to and from the group. The main purpose of these
instruments is to raise funds for the group’s operations and to finance the group’s operations. 
 Due to the nature of the financial
instruments used by the company there is no exposure to price risk or currency risk. The group’s approach to managing other risks applicable to the financial instruments concerned is shown below. 
 In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. Investment of cash
surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board 
 Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. 
 Trade creditors liquidity is managed by ensuring sufficient funds are available to meet amounts falling due. 
 In respect of company loans these comprise a loan to a subsidiary company. This loan is interest free and repayable on demand. The loans to the group are
bank loans, details of which are set out in note 12. The group is exposed to fair value interest risk on its fixed rate borrowings and cash flow interest risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate swap
contracts as provided by the bank to hedge exposure on long term loans. 
 Results and dividends 
 The consolidated profit and loss account for the year is set out on page 5. 
 Future developments 
 The directors plan to continue to develop new service lines to exploit
opportunities as they arise both with new and existing customers. The company’s financial strength combined with the ability to identify to customers the benefits of language services through providing high quality service delivery, enables the
directors to look forward with cautious optimism. 
  

  
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 LANGUAGE LINE SERVICES UK LIMITED 
 DIRECTORS’ REPORT (CONTINUED) 
 FOR THE YEAR ENDED 31 DECEMBER 2008

  
  
  

 Directors 
 The following directors have held office since 1 January 2008: 
 D G Dracup 
 C J Brucato 
 V Eke 
 L F Provenzano 
 Auditors 
 The auditors, HLB Vantis Audit plc, are deemed to be reappointed under section 487(2) of the Companies Act 2006. 
 Directors’ responsibilities 
 The
directors are responsible for preparing the financial statements in accordance with applicable law and regulations. 
 Company law requires the
directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the group and of the profit or loss of the group for that period. In preparing those financial
statements, the directors are required to: 
  

	•	 	 select suitable accounting policies and then apply them consistently; 

  

	•	 	 make judgements and estimates that are reasonable and prudent; 

  

	•	 	 state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial
statements; 

  

	•	 	 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

 The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the
financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and the group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities. 
 Statement of disclosure to auditors 

So far as the directors are aware, there is no relevant audit information of which the group’s auditors are unaware. Additionally, the directors have
taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the group’s auditors are aware of that information. 
 On behalf of the board 

	
	
	
 

	V Eke
	Director
	
	27 April 2009

  

  
 - 2 - 

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 LANGUAGE LINE SERVICES UK LIMITED 
 INDEPENDENT AUDITORS’ REPORT 
 TO THE SHAREHOLDERS OF LANGUAGE LINE SERVICES UK
LIMITED 
  
  
  

 We have audited the group and parent company financial statements (the “financial statements”)
of Language Line Services UK Limited for the year ended 31 December 2008 set out on pages 5 to 19. These financial statements have been prepared under the accounting policies set out therein. 
 This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 
 Respective responsibilities of directors and auditors 
 The directors’ responsibilities for preparing the financial
statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors’ Responsibilities. 
 Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland). 
 We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the directors’ report is consistent with the financial statements. 
 In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed. 
 We read the directors’ report and consider the implications for our report if we become aware of any apparent misstatements within it. 
 Basis of audit opinion 
 We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s and the company’s circumstances, consistently applied and adequately
disclosed. 
 We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy
of the presentation of information in the financial statements. 
  

  
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 LANGUAGE LINE SERVICES UK LIMITED 
 INDEPENDENT AUDITORS’ REPORT (CONTINUED) 
 TO THE SHAREHOLDERS OF LANGUAGE LINE
SERVICES UK LIMITED 
  
  
  

 Opinion 
 In our opinion: 
  

	•	 	 the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the
group’s and parent company’s affairs as at 31 December 2008 and of the group’s profit for the year then ended; 

  

	•	 	 the financial statements have been properly prepared in accordance with the Companies Act 1985; and 

  

	•	 	 the information given in the directors’ report is consistent with the financial statements. 

  

					
	

	HLB Vantis Audit plc	 	28 April 2009
		
	Chartered Accountants	 	66 Wigrnore Street
	Registered Auditor	 	London
	

	 	W1U 2SB

  

  
 - 4 - 

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 LANGUAGE LINE SERVICES UK LIMITED 
 CONSOLIDATED PROFIT AND LOSS ACCOUNT 
 FOR THE YEAR ENDED 31 DECEMBER 2008 

  
  
  

									
	 	  	Notes	  	2008
£	 	 	2007
£	 
				
	 Turnover
	  	2	  	10,412,477	  	 	10,036,108	  
				
	 Cost of sales
	  		  	(3,591,130	) 	 	(3,128,152	) 
		  		  	 	 	 	 	 
				
	 Gross profit
	  		  	6,821,347	  	 	6,907,956	  
				
	 Administrative expenses
	  		  	(4,629,768	) 	 	(4,053,244	) 
		  		  	 	 	 	 	 
				
	 Operating profit
	  	3	  	2,191,579	  	 	2,854,712	  
				
	 Other interest receivable and similar income
	  		  	72,771	  	 	112,227	  
	 Interest payable and similar charges
	  	4	  	(1,322,588	) 	 	(1,466,436	) 
		  		  	 	 	 	 	 
				
	 Profit on ordinary activities before taxation
	  	3	  	941,762	  	 	1,500,503	  
				
	 Tax on profit on ordinary activities
	  	5	  	(281,482	) 	 	(456,793	) 
		  		  	 	 	 	 	 
				
	 Profit on ordinary activities after taxation
	  	16	  	660,280	  	 	1,043,710	  
		  		  	 	 	 	 	 

 The profit and loss account has been prepared on the basis that all operations are continuing operations. 
 There are no recognised gains and losses other than those passing through the profit and loss account. 
  

  
 - 5 - 

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 LANGUAGE LINE SERVICES UK LIMITED 
 BALANCE SHEETS 
 AS AT 31 DECEMBER 2008 
  
  
  

													
	 	  	 	  	Group	 	 	Company
	 	  	Notes	  	2008
      £
	 	 	2007
£	 	 	2008
      £
	  	2007
£
	 Fixed assets
	  		  			 			 		  	
	 Intangible assets
	  	7	  	25,946,125	  	 	25,941,631	  	 	—  	  	—  
	 Tangible assets
	  	8	  	384,883	  	 	417,671	  	 	—  	  	—  
	 Investments
	  	9	  	—  	  	 	—  	  	 	9,896,474	  	9,896,474
		  		  	 	 	 	 	 	 	 	  	 
		  		  	26,331,008	  	 	26,359,302	  	 	9,896,474	  	9,896,474
		  		  	 	 	 	 	 	 	 	  	 
						
	 Current assets
	  		  			 			 		  	
	 Debtors
	  	10	  	2,069,383	  	 	2,075,240	  	 	—  	  	—  
	 Cash at bank and in hand
	  		  	2,752,029	  	 	2,347,521	  	 	—  	  	—  
		  		  	 	 	 	 	 	 	 	  	 
		  		  	4,821,412	  	 	4,422,761	  	 	—  	  	—  
	 Creditors: amounts falling due within one year
	  	11	  	(4,381,270	) 	 	(3,562,268	) 	 	—  	  	—  
		  		  	 	 	 	 	 	 	 	  	 
						
	 Net current assets
	  		  	440,142	  	 	860,493	  	 	—  	  	—  
		  		  	 	 	 	 	 	 	 	  	 
						
	 Total assets less current liabilities
	  		  	26,771,150	  	 	27,219,795	  	 	9,896,474	  	9,896,474
						
	 Creditors: amounts falling due after more than one year
	  	12	  	(12,567,068	) 	 	(13,675,993	) 	 	—  	  	—  
		  		  	 	 	 	 	 	 	 	  	 
		  		  	14,204,082	  	 	13,543,802	  	 	9,896,474	  	9,896,474
		  		  	 	 	 	 	 	 	 	  	 
						
	 Capital and reserves
	  		  			 			 		  	
	 Called up share capital
	  	15	  	2	  	 	2	  	 	2	  	2
	 Share premium account
	  	16	  	9,896,472	  	 	9,896,472	  	 	9,896,472	  	9,896,472
	 Profit and loss account
	  	16	  	4,307,608	  	 	3,647,328	  	 	—  	  	—  
		  		  	 	 	 	 	 	 	 	  	 
						
	 Shareholders’ funds
	  	17	  	14,204,082	  	 	13,543,802	  	 	9,896,474	  	9,896,474
		  		  	 	 	 	 	 	 	 	  	 

 Approved by the Board and authorised for issue on
27th April, 2009. 
  

	
	
 

	V Eke
	Director

  

  
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 LANGUAGE LINE SERVICES UK LIMITED 
 CONSOLIDATED CASH FLOW STATEMENT 
 FOR THE YEAR ENDED 31 DECEMBER 2008

  
  
  

													
	 	  	£	 	 	2008
£	 	 	£	 	 	2007
£	 
					
	 Net cash inflow from operating activities
	  			 	2,704,552	  	 			 	3,363,933	  
					
	 Returns on investments and servicing of finance
	  			 			 			 		
	 Interest received
	  	72,771	  	 			 	112,227	  	 		
	 Interest paid
	  	(1,321,845	) 	 			 	(1,426,103	) 	 		
		  	 	 	 			 	 	 	 		
					
	 Net cash outflow for returns on investments and servicing of finance
	  			 	(1,249,074	) 	 			 	(1,313,876	) 
					
	 Taxation
	  			 	(421,617	) 	 			 	(287,904	) 
					
	 Capital expenditure
	  			 			 			 		
	 Payments to acquire intangible assets
	  	(4,494	) 	 			 	(23,893	) 	 		
	 Payments to acquire tangible assets
	  	(165,934	) 	 			 	(417,994	) 	 		
		  	 	 	 			 	 	 	 		
					
	 Net cash outflow for capital expenditure
	  			 	(170,428	) 	 			 	(441,887	) 
		  			 	 	 	 			 	 	 
					
	 Net cash inflow before management of liquid resources and financing
	  			 	863,433	  	 			 	1,320,266	  
					
	 Financing
	  			 			 			 		
	 New debenture loan
	  	41,075	  	 			 	78,411	  	 		
	 Repayment of long term bank loan
	  	(500,000	) 	 			 	(1,282,418	) 	 		
		  	 	 	 			 	 	 	 		
					
	 Net cash outflow from financing
	  			 	(458,925	) 	 			 	(1,204,007	) 
		  			 	 	 	 			 	 	 
					
	 Increase in cash in the year
	  			 	404,508	  	 			 	116,259	  
		  			 	 	 	 			 	 	 

  

  
 - 7 - 

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 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT 
 FOR THE YEAR ENDED 31 DECEMBER 2008

  
  
  

													
	  	  	 	 	 	 	 	 	2008
£	 	 	2007
£	 
					
	 1       Reconciliation of operating profit to net cash inflow from operating activities

	  			 			 			 		
					
	 Operating profit
	  			 			 	2,191,579	  	 	2,854,712	  
	 Depreciation of tangible assets
	  			 			 	198,721	  	 	149,641	  
	 Loss on disposal of tangible assets
	  			 			 	—  	  	 	6,703	  
	 Decrease/(increase) in debtors
	  			 			 	46,358	  	 	563,926	  
	 Increase/(decrease) in creditors within one year
	  			 			 	267,894	  	 	(211,049	) 
		  			 			 	 	 	 	 	 
					
	 Net cash inflow from operating activities
	  			 			 	2,704,552	  	 	3,363,933	  
		  			 			 	 	 	 	 	 
					
	  	  	1 January 2008
£	 	 	Cash flow
£	 	 	Other non-
Cash changes
£	 	 	31 December
2008
£	 
	 2       Analysis of net debt
	  			 			 			 		
					
	 Net cash:
	  			 			 			 		
	 Cash at bank and in hand
	  	2,347,521	  	 	404,508	  	 	—  	  	 	2,752,029	  
		  	 	 	 	 	 	 	 	 	 	 	 
					
	 Debts falling due within one year
	  	(1,000,000	) 	 	1,000,000	  	 	(1,650,000	) 	 	(1,650,000	) 
	 Debts falling due after one year
	  	(13,675,993	) 	 	(541,075	) 	 	1,650,000	  	 	(12,567,068	) 
		  	 	 	 	 	 	 	 	 	 	 	 
					
		  	(14,675,993	) 	 	458,925	  	 	—  	  	 	(14,217,068	) 
		  	 	 	 	 	 	 	 	 	 	 	 
					
	 Net debt
	  	(12,328,472	) 	 	863,433	  	 	—  	  	 	(11,465,039	) 
		  	 	 	 	 	 	 	 	 	 	 	 
			
	 	 	 	2008
£	 	 	2007
£	 
	 3       Reconciliation of net cash flow to movement in net debt
	  			 			 			 		
					
	 Increase in cash in the year
	  			 			 	404,508	  	 	116,259	  
	 Cash outflow from decrease in debt
	  			 			 	458,925	  	 	1,204,007	  
		  			 			 	 	 	 	 	 
					
	 Movement in net debt in the year
	  			 			 	863,433	  	 	1,320,266	  
	 Opening net debt
	  			 			 	(12,328,472	) 	 	(13,648,738	) 
		  			 			 	 	 	 	 	 
					
	 Closing net debt
	  			 			 	(11,465,039	) 	 	(12,328,472	) 
		  			 			 	 	 	 	 	 

  

  
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Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 FOR THE YEAR ENDED 31 DECEMBER 2008

  
  
  

	1	Accounting policies 

  

	1.1	Accounting convention 

 The financial statements are prepared under the historical cost convention. 
  

	1.2	Compliance with accounting standards 

 The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently.

  

	1.3	Basis of consolidation 

 The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2008. The results of subsidiaries sold or acquired are included in the
profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation. 
  

	1.4	Turnover 

 Turnover
represents amounts receivable for goods and services net of VAT and trade discounts 
  

	1.5	Goodwill 

 Goodwill
represents the difference between the fair value of the consideration paid on the acquisition of a business and the fair value of the identifiable net assets acquired. Goodwill arising on acquisitions is capitalised in accordance with FRS 10
Goodwill and Intangible Assets. 
 An indefinite life has been applied to the goodwill due to the strength of the underlying
business and the intellectual property. As such, an annual impairment review is conducted in accordance with FRS 11 Impairment of Fixed Assets and Goodwill. Any excess of goodwill over the value in use of the underlying assets would be written off
to the profit and loss account. This accounting policy departs from the specific requirements of The Companies Act 1985, which requires goodwill to be amortised over a finite period. This departure is considered necessary in order for the financial
statements to show a true and fair view. The impact of this departure cannot be quantified. 
  

	1.6	Tangible fixed assets and depreciation 

 Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as
follows: 
  

					
	Land and buildings Leasehold	  	20% per annum	  	
	Computer equipment	  	33% per annum or over the life of the contract, if shorter	  	
	 Fixtures, fittings & equipment
	  	20% per annum or over the life of the lease, if shorter	  	

  

	1.7	Leasing 

 Rentals payable
under operating leases are charged against income on a straight line basis over the lease term. 
  

	1.8	Investments 

 Fixed asset
investments are stated at cost less provision for diminution in value. 
  

	1.9	Pensions 

 The Group
operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. 
  

  
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 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

			
	1 Accounting policies	  	(continued)

  

	1.10	Deferred taxation 

 Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted. 
  

	1.11	Foreign currency translation 

 Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the
transaction. All differences are taken to profit and loss account. 
  

	1.12	Financial Liabilities and Equity 

 Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after
deducting all of its liabilities. 
  

	2	Turnover 

 The total
turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom. 
  

	3	Operating profit 

  

						
	 	  	2008
£	  	2007
£	 
	 Operating profit is stated after charging:
	  		  		
	 Depreciation of tangible assets
	  	198,721	  	149,641	  
	 Loss on disposal of tangible assets
	  	—  	  	6,703	  
	 Loss on foreign exchange transactions
	  	168	  	—  	  
	 Operating lease rentals
	  	185,103	  	175,874	  
	 Fees payable to the group’s auditor for the audit of the group’s annual accounts (company
£3,000;2007:£3,000)
	  	22,000	  	22,000	  
			
	 and after crediting:
	  		  		
	 Profit on foreign exchange transactions
	  	—  	  	(523	) 
		  	 	  	 	 

  

	4	Interest payable 

  

					
	 	  	2008
£	  	2007
£
	 On bank loans and overdrafts
	  	824,609	  	863,616
	 On loans repayable after five years
	  	497,862	  	600,171
	 Other interest
	  	117	  	2,649
		  	 	  	 
		  	1,322,588	  	1,466,436
		  	 	  	 

  

  
 - 10 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	5	Taxation 

							
	  	  	2008
£	 	 	2007
£	 
		  	 
			
	 Domestic current year tax
	  			 		
	 U.K. corporation tax
	  	288,528	  	 	456,793	  
	 Adjustment for prior years
	  	33,455	  	 	—  	  
		  	 	 	 	 	 
			
	 Current tax charge
	  	321,983	  	 	456,793	  
			
	 Deferred tax
	  			 		
	 Deferred tax charge/credit current year
	  	(40,501	) 	 	—  	  
		  	 	 	 	 	 
		  	281,482	  	 	456,793	  
		  	 	 	 	 	 
	 Factors affecting the tax charge for the year
	  			 		
	 Profit on ordinary activities before taxation
	  	941,762	  	 	1,500,503	  
		  	 	 	 	 	 
			
	 Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 28.50% (2007 -
30.00%)
	  	268,402	  	 	450,151	  
		  	 	 	 	 	 
			
	 Effects of:
	  			 		
	 Non deductible expenses
	  	360	  	 	2,577	  
	 Depreciation add back
	  	56,635	  	 	46,903	  
	 Capital allowances
	  	(47,374	) 	 	(42,838	) 
	 Provisions adjustment
	  	11,706	  	 	—  	  
	 Adjustments to previous periods
	  	33,455	  	 	—  	  
	 Other adjustments
	  	(1,201	) 	 	—  	  
		  	 	 	 	 	 
		  	53,581	  	 	6,642	  
		  	 	 	 	 	 
	 Current tax charge
	  	321,983	  	 	456,793	  
		  	 	 	 	 	 

  

	6	Loss for the financial year 

 As permitted by section 230 of the Companies Act 1985, the holding company’s profit and loss account has not been included in these financial statements. The loss for the financial year is made up as follows: 
  

					
	  	  	2008
£	  	2007
£
		  	  
			
	 Holding company’s loss for the financial year
	  	—  	  	—  
		  	 	  	 

  

  
 - 11 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	7	Intangible fixed assets 

 Group 
  

			
	  	  	Goodwill
£
		  
	 Cost
	  	
	 At 1 January 2008
	  	25,941,631
	 Additions
	  	4,494
		  	 
		
	 At 31 December 2008
	  	25,946,125
		  	 
		
	 Net book value
	  	
	 At 31 December 2008
	  	25,946,125
		  	 
		
	 At 31 December 2007
	  	25,941,631
		  	 

 Goodwill is made up of acquired goodwill of
£15,267,476 and goodwill on consolidation of £10,678.649. 
  

	8	Tangible fixed assets 

 Group 

									
	  	  	Land and
buildings
Leasehold
£	  	Plant and
machinery
£	  	Fixtures,
fittings &
equipment
£	  	Total
£
		  	  	  	  
	 Cost
	  		  		  		  	
	 At 1 January 2008
	  	4,939	  	116,721	  	473,569	  	595,229
	 Additions
	  	—  	  	109,192	  	56,742	  	165.934
		  	 	  	 	  	 	  	 
					
	 At 31 December 2008
	  	4,939	  	225,913	  	530,311	  	761,163
		  	 	  	 	  	 	  	 
					
	 Depreciation
	  		  		  		  	
	 At 1 January 2008
	  	988	  	83,337	  	93,233	  	177,558
	 Charge for the year
	  	988	  	68,073	  	129,661	  	198,722
		  	 	  	 	  	 	  	 
					
	 At 31 December 2008
	  	1,976	  	151,410	  	222,894	  	376,280
		  	 	  	 	  	 	  	 
					
	 Net book value
	  		  		  		  	
	 At 31 December 2008
	  	2,963	  	74,503	  	307,417	  	384,883
		  	 	  	 	  	 	  	 
					
	 At 31 December 2007
	  	3,951	  	33,384	  	380,336	  	417,671
		  	 	  	 	  	 	  	 

  

  
 - 12 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	9	Fixed asset investments 

 Company 
  

			
	  	  	Shares in
group
undertakings
£
	 Cost
	  	
	 At 1 January 2008 & at 31 December 2008
	  	9,896,474
		  	 
		
	 At 31 December 2007
	  	9,896,474
		  	 

 In the opinion of the directors, the aggregate value
of the company’s investment in subsidiary undertakings is not less than the amount included in the balance sheet. 
 Holdings of more than 20% 
 The company holds more than 20% of the share capital of the following companies:

  

							
	 Company
	  	 Country of registration or
incorporation
	  	 Shares held

	 	  	 	  	 Class
	  	%
	 Subsidiary undertakings
 Language Line Limited
	  	England and Wales	  	Ordinary	  	100
	Language Line Services UK II Limited	  	England and Wales	  	Ordinary	  	100
	Communicandum Limited	  	England and Wales	  	Ordinary	  	100
	LL Shell Limited	  	England and Wales	  	Ordinary	  	100

 The principal activity
of these undertakings for the last relevant financial year was as follows: 
  

			
	  	  	 Principal activity

	Language Line Limited	  	Provision of language services
	Language Line Services UK II Limited	  	Investment holding company
	Communicandum Limited	  	Dormant
	LL Shell Limited	  	Dormant

 Language Line Limited is a
subsidiary of Language Line Services UK II Limited. Communicandum Limited and LL Shell Limited are subsidiaries of Language Line Limited. 
  

  
 - 13 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	10	Debtors 

  

									
	  	  	Group	  	Company
	  	  	2008
£	  	2007
£	  	2008
£	  	2007
£
		  	  	  	  
	 Trade debtors
	  	1,538,769	  	1,609,462	  	—  	  	—  
	 Other debtors
	  	13,067	  	6,692	  	—  	  	—  
	 Prepayments and accrued income
	  	477,046	  	459,086	  	—  	  	—  
	 Deferred tax asset (see note 13)
	  	40,501	  	—  	  	—  	  	—  
		  	 	  	 	  	 	  	 
		  	2,069,383	  	2,075,240	  	—  	  	—  
		  	 	  	 	  	 	  	 

 Amounts falling due after more than one year and included in the debtors above are:

  

									
	  	  	2008
£	  	2007
£	  	2008
£	  	2007
£
	 Other debtors
	  	100,930	  	100,930	  	—  	  	—  
		  	 	  	 	  	 	  	 

  

	11	Creditors : amounts falling due within one year 

  

									
	  	  	Group	  	Company
	  	  	2008
£	  	2007
£	  	2008
£	  	2007
£
		  	  	  	  
	 Bank loans and overdrafts
	  	1,650,000	  	1,000,000	  	—  	  	—  
	 Trade creditors
	  	361,647	  	283,990	  	—  	  	—  
	 Corporation tax
	  	161,359	  	260,993	  	—  	  	—  
	 Taxes and social security costs
	  	569,325	  	475,453	  	—  	  	—  
	 Other creditors
	  	463,127	  	471,088	  	—  	  	—  
	 Accruals and deferred income
	  	1,175,812	  	1,070,744	  	—  	  	—  
		  	 	  	 	  	 	  	 
		  	4,381,270	  	3,562,268	  	—  	  	—  
		  	 	  	 	  	 	  	 

  

  
 - 14 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	12	Creditors : amounts falling due after more than one year 

  

											
	 	  	Group	 	 	Company
	 	  	2008
£	 	 	2007
£	 	 	2008
£	  	2007
£
					
	 Debenture loans
	  	4,102,486	  	 	4,061,411	  	 	—  	  	—  
	 Bank loans
	  	8,464,582	  	 	9,614,582	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
		  	12,567,068	  	 	13,675,993	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
					
	 Analysis of loans
	  			 			 		  	
	 Not wholly repayable within five years by installments:
	  			 			 		  	
	 Repayable in bi-annual installments ending 31/12/2012 at interest rate LIBOR plus 3.0%
	  	4,886,582	  	 	5,386,582	  	 	—  	  	—  
	 Not wholly repayable within five years other than by instalments:
	  			 			 		  	
	 Repayable in full on 19/01/2014 at interest rate LIBOR plus 3.50%
	  	5,228,000	  	 	5,228,000	  	 	—  	  	—  
	 Loan notes repayable in full on 19/01/2015 at interest rate LIBOR plus 4.875%
	  	4,102,486	  	 	4,061,411	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
		  	14,217,068	  	 	14,675,993	  	 	—  	  	—  
	 Included in current liabilities
	  	(1,650,000	) 	 	(1,000,000	) 	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
		  	12,567,068	  	 	13,675,993	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
					
	 Instalments not due within five years
	  	—  	  	 	—  	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 
					
	 Loan maturity analysis
	  			 			 		  	
	 In more than one year but not more than two years
	  	1,175,000	  	 	1,100,000	  	 	—  	  	—  
	 In more than two years but not more than five years
	  	2,061,582	  	 	3,286,582	  	 	—  	  	—  
	 In more than five years
	  	9,330,486	  	 	9,289,411	  	 	—  	  	—  
		  	 	 	 	 	 	 	 	  	 

 All loans are secured by charges on the assets of the group.

  

  
 - 15 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	13	Provisions for liabilities 

 The deferred tax asset (included in debtors, note 10) is made up as follows: 
  

										
	 	  	Group	 	 	 	  	Company	  	 
	 	  	2008
£	 	 	 	  	2008
£	  	 
					
	 Profit and loss account
	  	(40,501	) 	 		  	—  	  	
		  	 	 	 		  	 	  	
			
	 	  	Group	  	Company
	 	  	2008
€	 	 	2007
€	  	2008
€	  	2007
€
	 Decelerated capital allowances
	  	(40,501	) 	 	—  	  	—  	  	—  
		  	 	 	 	 	  	 	  	 

  

	14	Pension and other post-retirement benefit commitments 

 Defined contribution 
 The company operates a defined contribution pension
scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. 
  

					
	 	  	2008
£	  	2007
£
			
	 Contributions payable by the group for the year
	  	19,409	  	27,188
		  	 	  	 

  

	15	Share capital 

  

					
	 	  	2008
£	  	2007
£
	 Authorised
	  		  	
	 2 Ordinary shares of £1 each
	  	2	  	2
		  	 	  	 
			
	 Allotted, called up and fully paid
	  		  	
	 2 Ordinary shares of £1 each
	  	2	  	2
		  	 	  	 

  

  
 - 16 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	16	Statement of movements on reserves 

 Group 
  

					
	 	  	Share
premium
account
£	  	Profit and
loss account
£
			
	 Balance at 1 January 2008
	  	9,896,472	  	3,647,328
	 Profit for the year
	  	—  	  	660,280
		  	 	  	 
			
	 Balance at 31 December 2008
	  	9,896,472	  	4,307,608
		  	 	  	 

 Company 
  

					
	 	  	Share
premium
account
£	  	Profit and
loss account
£
			
	 Balance at 1 January 2008
	  	9,896,472	  	—  
		  	 	  	 
			
	 Balance at 31 December 2008
	  	9,896,472	  	—  
		  	 	  	 

  

	17	Reconciliation of movements in shareholders’ funds 

 Group 
  

					
	 	  	2008
£	  	2007
£
	 Profit for the financial year
	  	660,280	  	1,043,710
	 Opening shareholders’ funds
	  	13,543,802	  	12,500,092
		  	 	  	 
			
	 Closing shareholders’ funds
	  	14,204,082	  	13,543,802
		  	 	  	 

 Company 
  

					
	 	  	2008
£	  	2007
£
			
	 Loss for the financial year
	  	—  	  	—  
	 Opening shareholders’ funds
	  	9,896,474	  	9,896,474
		  	 	  	 
			
	 Closing shareholders’ funds
	  	9,896,474	  	9,896,474
		  	 	  	 

  

  
 - 17 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	18	Contingent liabilities 

 Group 
 Language Line Limited, Language Line Services UK II Limited and Language Line Services UK Limited have
an intercompany guarantee as unlimited security with The Royal Bank of Scotland. 
 Company 
 Language Line Limited, Language Line Services UK II Limited and Language Line Services UK Limited have an intercompany guarantee as unlimited
security with The Royal Bank of Scotland. 
  

	19	Financial commitments 

 At
31 December 2008 the group had annual commitments under non-cancellable operating leases as follows: 
  

					
	 	  	Land and buildings
	 	  	2008
£	  	2007
£
	 Expiry date:
	  		  	
	 Between two and five years
	  	171,796	  	171,796
		  	 	  	 

  

	20	Directors’ emoluments 

  

					
	 	  	2008
£	  	2007
£
	 Emoluments for qualifying services
	  	181,041	  	178,231
	 Company pension contributions to money purchase schemes
	  	542	  	6,139
		  	 	  	 
		  	181,583	  	184,370
		  	 	  	 

 The number of directors for whom retirement benefits
are accruing under money purchase pension schemes amounted to 1 (2007-1). 
 The details above relate to the one director who
receives remuneration for their services. 
  

  
 - 18 - 

Table of Contents

 LANGUAGE LINE SERVICES UK LIMITED 
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 
 FOR THE YEAR ENDED 31
DECEMBER 2008 
  
  
  

	21	Employees 

 Number of
employees 
 The average monthly number of employees (including directors) during the year was: 
  

					
	 	  	2008
Number	  	2007
Number
			
	 Directors
	  	4	  	6
	 Sales and Sales Support
	  	57	  	52
	 Administrative
	  	11	  	14
		  	 	  	 
		  	72	  	72
		  	 	  	 

 Employment costs 
  

					
			
	 	  	2008
£	  	2007
£
	 Wages and salaries
	  	2,866,592	  	2,516,589
	 Other pension costs
	  	19,409	  	27,188
		  	 	  	 
		  	2,886,001	  	2,543,777
		  	 	  	 

  

	22	Control 

 The immediate
and ultimate parent company is Language Line Holdings LLC, a company incorporated in the USA. 
  

	23	Related party transactions 

 Group 
 The company has taken advantage of the exemption in Financial Reporting Standard Number 8 from the
requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company. 
  

  
 - 19 - 

Table of Contents

  
  
 UNITED STATES 
 SECURITIES AND EXCHANGE COMMISSION 
 Washington, D.C. 20549 
  
  
 FORM 10-K 

  

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

 For the fiscal year ended December 31, 2008 
 or

  

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

 For the transition period from                      to
                     
 Commission file number: 333-118754 
  
  
 Language Line
Holdings, Inc. 
 (Exact name of registrant as specified in its charter) 
  

					
	Delaware	 		 	20-0997806
	(State or other jurisdiction of incorporation 
or organization)	 		 	(IRS Employer Identification Number)

 One Lower Ragsdale Drive 
 Monterey, California 93940 
 (Address, including zip code, of registrant’s principal executive offices) 
 (877) 886-3885 
 (Registrant’s telephone number, including area code) 
  
  
 Indicate by check
mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes   ̈    No  x 
 Indicate by check mark if the registrant is not required to file reports pursuant
to Section 13 or Section 15(d) of the Act.    Yes   ̈    No  x 
 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   ̈ 
 Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is
not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   ̈ 
 Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer or a small reporting company. See definition of “large accelerated filer, accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

  ̈  Large accelerated
filer         ̈  Accelerated filer        x  Non-accelerated filer         ̈  Smaller reporting company 
 Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x 
 As of December 31, 2008, there were 1,000 shares of the registrant’s common stock, $.01 par value, which is the only class of
common stock of the registrant. There is no market for the registrant’s common stock, all of which is held by Language Line Holdings, LLC. 
 Documents Incorporated by Reference 
 None 
  
  
  

Table of Contents

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
	 PART 1 
	  	1
	 ITEM 1:
	 	BUSINESS	  	1
	 ITEM 1A:
	 	RISK FACTORS	  	6
	 ITEM 1B:
	 	UNRESOLVED STAFF COMMENTS	  	8
	 ITEM 2:
	 	PROPERTIES	  	9
	 ITEM 3:
	 	LEGAL PROCEEDINGS	  	9
	 ITEM 4:
	 	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	  	9
		
	 PART II 
	  	9
	 ITEM 5:
	 	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	  	9
	 ITEM 6:
	 	SELECTED CONSOLIDATED FINANCIAL DATA	  	9
	 ITEM 7:
	 	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	  	11
	 ITEM 7A:
	 	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	  	22
	 ITEM 8:
	 	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	  	23
	 ITEM 9:
	 	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	  	23
	 ITEM 9A:
	 	CONTROLS AND PROCEDURES	  	23
	 ITEM 9B:
	 	OTHER INFORMATION	  	24
		
	 PART III 
	  	24
	 ITEM 10:
	 	DIRECTORS, EXECUTIVE OFFICERS OF THE REGISTRANT, AND CORPORATE GOVERNANCE	  	24
	 ITEM 11:
	 	EXECUTIVE COMPENSATION	  	26
	 ITEM 12:
	 	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	  	36
	 ITEM 13:
	 	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	  	37
	 ITEM 14:
	 	PRINCIPAL ACCOUNTANT FEES AND SERVICES	  	38
		
	 PART IV 
	  	40
	 ITEM 15:
	 	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 	  	40

  

 i 

Table of Contents

 FORWARD-LOOKING STATEMENTS 
 This Annual Report on Form 10-K contains statements that involve expectations, plans or intentions (such as those relating to future business or
financial results, new features or services, or management strategies). These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and
uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,”
“estimate,” “intend,” “plan” and other similar expressions. You should consider our forward-looking statements in light of the risks and uncertainties that could cause Language Line Holdings, Inc.’s (the
“Company”) actual results to differ materially from those which are management’s current expectations or forecasts. These risks and uncertainties include, but are not limited to, industry based factors such as the level of competition
in the outsourced over-the-phone interpretation services market, continued demand from the primary industries the Company serves, the availability of telephone services, as well as factors more specific to the Company such as restrictions imposed by
the Company’s debt including financial covenants and limitations on the Company’s ability to incur additional indebtedness, the Company’s future capital requirements, and risk associated with economic conditions generally. See
“Item 1A – Risk Factors” for further discussion. We assume no obligation to update any forward-looking statements. 
  

 ii 

Table of Contents

 PART 1 
  

	ITEM 1:	BUSINESS 

 Company Overview

 We are a global provider of over-the-phone interpretation (“OPI”) services from English into more than 170 different languages,
24 hours a day, seven days a week. Our specially-trained, proprietary base of interpreters perform value-added OPI services which facilitate critical business transactions and delivery of emergency and government services between our customers and
limited English proficiency (“LEP”) speakers throughout the world. In 2008, we helped more than 35 million people communicate across linguistic and cultural barriers. We offer our customers a high-quality, cost-effective alternative
to staffing in-house multilingual employees or using face-to-face interpretation. Through our OPI services, we improve our customers’ revenue potential, customer service and competitiveness by enhancing their ability to effectively serve the
growing population of current and prospective LEP speakers. 
 History 
 Language Line Holdings, Inc. (the “Predecessor”) was a Delaware corporation formed in December 1999 as a holding company for Language Line, LLC (“LLC”) and its subsidiaries. LLC was
incorporated during February 1999 as a Delaware limited liability company. The Predecessor was acquired on June 11, 2004 by Language Line, Inc. (“LLI”) in a transaction accounted for under the purchase method of accounting (the
“Merger”). LLI, a wholly-owned subsidiary of Language Line Acquisition, Inc., is a Delaware corporation formed in April 2004. LLI had no significant operations prior to the acquisition of Predecessor. Subsequent to the Merger, Language
Line Acquisition, Inc., an indirect wholly-owned subsidiary of Language Line Holdings, LLC, was renamed Language Line Holdings, Inc. (“LLHI”, “we”, “Successor”, or the “Company”). The Company is incorporated
under the laws of the State of Delaware. 
 The Merger, Escrow Settlement and Financing Transactions 
 On June 11, 2004, LLI, an indirect subsidiary of ABRY Partners (“ABRY”) acquired the Predecessor in a transaction accounted
for under the purchase method of accounting (the “Merger”). The aggregate purchase price was $718.1 million. The merger agreement contains customary representations and warranties and covenants. At closing, $30.0 million of the Merger
consideration was deposited into an escrow account on behalf of the stockholders and optionholders of the Predecessor to secure their potential indemnity obligations to LLI and payment of any post-closing adjustment to the Merger consideration to
LLI. Since the Merger, periodic payments from the escrow account have been paid to the stockholders and optionholders of the Predecessor according to a pre-determined payment schedule. Final settlement of the escrow account was reached with the
previous owners on July 25, 2006. In final settlement of the escrow account, the Company received $795,000 for potential tax liabilities. As the Company had already recorded these additional tax liabilities subsequent to the Merger and
concluded there is not a clear and direct link to the original purchase price, the settlement amount of $795,000 was recorded as other income in the third quarter of 2006. 
 Concurrently with the Merger, we consummated certain related financing transactions, including the issuance of approximately $109.0
million of 141/8% senior discount notes due 2013, by LLHI, the issuance by LLI of $165.0
million aggregate principal amount at maturity of 111/
8% senior subordinated notes due 2012 (the “Notes”)
and the entrance into senior credit facilities in the amount of $325.0 million by LLI. 
  

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 Products and Services 
 We offer over-the-phone interpretation services. A majority of our volume comes from subscribed interpretation, which is designed for business customers with frequent interpretation needs. The remainder
of our volume is derived from personal interpretation, designed for individuals or businesses which require infrequent interpretation services. Usage for the majority of customers is billed in one-minute increments. Price per billed minute is
typically based on the language requested and time of day, subject to discounts related to billed minute volume pricing arrangements with certain customers. 
 We have a number of complementary services that allow us to provide a full service language solution to our customers. Included among those services are document translation, Video Interpretation
services, American Sign Language, and face-to-face interpretation. 
 We offer our customers a wide range of applications across a variety of
industries. For example, our insurance industry customers use our services to process claims more quickly, improve claim investigations, evaluate borderline claims, enhance help desk service and explain benefits. We assist healthcare customers by
facilitating emergency room and critical care situations, accelerating triage and medical advice, simplifying patient admission processes, improving billing and increasing collections. Our customers in the financial services sector use our services
to resolve credit card problems, increase collections, open new accounts, provide home buyer education and produce credit reports. Call centers use our services to enhance customer service centers, support personnel, facilitate billing, support
multicultural marketing and bolster direct mail and telemarketing efforts. 
 We offer OPI services to our customers in over 170 different
languages. Our top 10 languages accounted for over 91% of our billed minutes in 2008, with Spanish-language OPI accounting for approximately 70% of our total billed minutes in 2008. 
 Customers 
 Four industries: insurance, financial services, healthcare and government,
accounted for approximately 74% of our revenues in 2008. In 2008, the health care industry accounted for 29% of our revenues, the financial industry accounted for 19% and our largest customer accounted for approximately 3% of our revenues, while our
largest 100 customers represented 55% of our revenues. 
 Interpreters 
 We have assembled and organized our interpreters to deliver superior service quality in a cost-effective manner. As of December 31, 2008, we managed a total of 4,480 interpreters. Interpreters for
our high volume languages are typically scheduled, receive extensive, company-designed training, and are supplemented by independent contractors for peak call volumes and for lower-volume languages. The majority of our interpreters work from home in
the United States, with an increasing number of interpreters located in global interpretation centers. 
 We employ a rigorous qualification and
testing program for our interpreters, with only very highly skilled applicants being selected for hire. We continually train and test all of our employees and agency interpreters in their interpretation skills. In addition, we employ industry
experts to develop industry-specific training programs for our employee and agency interpreters, including initial and ongoing specialized training in medical, insurance and finance terminology, as well as police, emergency and 911 procedures. As a
result, we believe that our interpreters complete calls more quickly and more accurately than the industry average. 
  

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 Technical Overview 
 We have made significant capital investments in proprietary technology over the past six years to network globally, create more efficient processes, provide business continuity and systems redundancy,
allow more stability in the systems and make available a scalable technology platform for future expansion. 
 Our proprietary call routing
system enables us to efficiently handle significantly more call volume than our OPI competitors. Our proprietary call-handling system, Telephone Interpretation Technology and Networking (“TITAN”), allows us to efficiently handle hundreds
of simultaneous calls. This allows us to quickly connect our interpreters to our customers. 
 We rely upon a fully integrated scheduling
program, Prime Time Enterprise (“PTE”), that generates monthly forecasts of volume by language against planned interpreter attendance to produce a schedule for the following month. PTE also captures historical transaction records (e.g.,
hours worked by interpreter) from the database servers and provides linkage to the payroll system. PTE has been modified by us to incorporate over ten years of historical call volume data in fifteen minute increments and analyze patterns of total
call volume, language usage, industry distribution and customer distribution in order to optimize the time our interpreters are occupied. PTE enables us to forecast and optimize interpreter occupancy for twelve months into the future. 
 Our systems are comprised of an Avaya Call Manager with ESS (Enterprise business continuity/survivability feature), Conversant and Voice Portal IVR systems,
and redundant computer-telephony (“CTI”) servers. We also utilize multiple database servers. We maintain multiple systems and servers in order to provide valuable redundancy in the event of an interruption in service. 
 Sales and Marketing 
 We have expanded our
sales and marketing team professionals who have been trained to serve current customers and target new customer accounts. Our professionals have detailed customer and industry analysis at their disposal. In the United States, we pursue significant
revenue opportunities from new accounts and expansion of revenues from existing accounts within our targeted industry segments. The Company operates as a single segment. 
 We have deployed sales and marketing resources in the United Kingdom and Canada, and have begun to demonstrate our ability to leverage our United States infrastructure to penetrate these two markets.
Similar to our United States strategy, we have begun to penetrate established industry segments by increasing our presence with current customers and acquiring new high-value OPI customers in our target industries. We are utilizing our cost
advantages, industry experience and increase the interpreter pool to provide the best product and competitive pricing in these markets. 
 Competition 
 We believe that we are the leading outsourced OPI provider in the U.S. with greater scale, scope, expertise and
technical capabilities than our other outsourced OPI competitors. 
 We believe that our most significant United States competitors include
Lionbridge Technologies, Inc. (Waltham, MA), Pacific Interpreters (Portland, OR), and Cyracom (Tucson, AZ). We believe that our largest competitor in the United Kingdom is TheBigWord, and we believe that our largest competitor in Canada is CanTalk.

 We believe the following attributes are important to our customers; connection speeds, reliability, breadth of languages and quality of
interpreters; that our performance compared to the performance of our competitors is more desirable to our customers. We believe these service attributes are key considerations in the purchase decisions for our customers. This is particularly true
for organizations concerned with compliance with Title VI of the Civil Rights Act of 1964 which requires companies to have interpretation services for LEP speakers in order to qualify for federal funding. 
  

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 The primary alternatives to OPI include: 
  

	 	•	 	 Customer-provided language service through bilingual agents (“in-house”) and face-to-face interpreters; 

  

	 	•	 	 Customer relationship management (“CRM”) providers with foreign language capabilities; and 

  

	 	•	 	 Technology such as web self-service, interactive voice response (“IVR”) units and machine translation. 

 When deciding whether to use a language alternative to OPI, we believe our customers’ primary selection criteria are the levels of customer service,
the critical nature of a call (e.g., emergency 911 or hospital emergency room), the cost to service the transaction, and the availability of bi-lingual resources. 
 Customer-Provided Language Service 
 While in-house bilingual agents can potentially offer
better customer service at a lower cost than OPI service, these benefits are often not realized due to inefficiencies resulting from the need to manage internal productivity levels. Moreover, managing these agents can be a significant distraction in
light of the relative minor usage by the LEP client base. As for service quality, customers are typically inexperienced in recruiting, testing, training and managing an ethnically diverse workforce and often lack the resources to service their
customers in more than 170 languages, 24 hours a day, seven days a week. Face-to-face interpreters can deliver more personal service, although interpreters represent a fixed cost that may become expensive if not managed efficiently. Moreover,
face-to-face interpreters generally are not available on demand when needed and cannot assist in call center applications. 
 CRM Providers

 Many third party CRM providers offer language solutions as part of their larger outsourcing offering. Generally, the number of languages
offered are limited (in many cases, only one). These offerings are usually focused on program-specific, scripted sales offers and lack the flexibility OPI provides to customer service and other critical applications. Many companies choose not to
outsource critical customer relationships to third party CRM providers. 
 Technology 
 Web and IVR technology provide low cost language alternatives, although the use of these technologies currently is limited to simple transactions and lacks
the flexibility OPI provides for typical customer service and other critical applications. Moreover, customers still need to provide a “zero out” option when LEP speakers cannot continue with menus provided or require additional assistance
beyond the basic applications. Machine translation has evolved to handle simple transactions with accuracy in the range of 80% to 90%. Similar to CRM providers and IVR technology, machine translation lacks the flexibility desired by customers for
interactions with their own customers. 
 Legislation 
 Several measures have been introduced in Congress aimed at discouraging the transfer of U.S. jobs to foreign countries including a bill that would deny federal contracts to companies with offshore
operations and a bill that would require notification of workers when companies plan to outsource and require the Department of Labor to compile statistics on the trend. These legislative proposals are being challenged in state court. It is not
clear whether these or similar legislative proposals will eventually become law and what, if any, impact they would have on our business and operations. 
 Employees 
 Employees are classified as those who are remunerated on a salaried or an hourly
basis, and receive corporate benefits from us. Agency employees are also paid on either an hourly or minute basis, but are employed by a staffing agency and are eligible for benefits from the staffing agency. Independent contractors are defined as
those interpreters that are paid by the minute of interpretation and do not receive any corporate benefits or direction from us. Employee and agency

  

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employee interpreters are scheduled and non scheduled and generally handle our high-volume languages, receive training and are supplemented by independent contractor interpreters for peak volumes
and for lower-volume languages. The majority of our interpreters work from home in the United States, with an increasing number of interpreters located in global interpretation centers which are mainly located in Central America. As of
December 31, 2008, all of our employees were non-unionized. Effective February 2009, a portion of our agency employees located in Panama became subject to a collective bargaining agreement. 
 As of December 31, 2008, we employed or contracted for 4,719 workers as follows: 
  

									
	 Function
	  	Employees	  	Agency
Employees	  	Independent
Contractors	  	Total
	 Interpreters
	  	1,899	  	2,359	  	222	  	4,480
	 Operations
	  	73	  	10	  	—  	  	83
	 Sales & Marketing
	  	76	  	5	  	—  	  	81
	 Customer Care
	  	13	  	1	  		  	14
	 Information Technology
	  	22	  	1	  	—  	  	23
	 Finance
	  	19	  	—  	  	—  	  	19
	 Administrative
	  	12	  	7	  	—  	  	19
		  	 	  	 	  	 	  	 
	 Total
	  	2,114	  	2,383	  	222	  	4,719
		  	 	  	 	  	 	  	 

 Available Information 
 Our website is located at http://www.languageline.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K
and any amendments to those reports filed or furnished pursuant to Section 12(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on the Securities and Exchange Commission (“SEC”) website
(http://www.sec.gov) as soon as reasonably practicable after we electronically file or furnish the reports. The SEC website also contains reports and other information that we filed with the SEC. You may read and copy any materials filed with
the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. 
  

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	ITEM 1A:	RISK FACTORS 

 You should carefully
consider the following factors, in addition to the other information in this Annual Report on Form 10-K, in evaluating our Company and our business. 
 If we are unable to successfully implement and execute our business strategy, our business, financial condition and results of operations could be adversely affected. 
 The implementation and execution of our business strategy will place significant demands on our senior management and operational, financial and marketing
resources. The successful implementation of our business strategy involves the following principal risks which could materially adversely affect our business, financial condition and results of operations: 
  

	 	•	 	 the operation of our business may place significant or unachievable demands on our management team; 

  

	 	•	 	 we may be unable to increase our penetration and expansion of the OPI market at average rates per billed minute of service which are acceptable to us;

  

	 	•	 	 we may be unable to continue to achieve cost reductions on a per billed minute basis consistent with our low-cost provider strategy; and

  

	 	•	 	 we may be unable to recruit a sufficient number of qualified interpreters. 

 Our continued success depends on continued demand from the primary industries we serve and economic stability. 
 Our success depends upon continued demand for our services from our customers within the industries we serve. A significant downturn in the insurance,
healthcare, financial services or government industries, which together accounted for a majority of our revenues in 2008, or a trend in any of these industries to reduce or eliminate their use of OPI services may negatively impact our results of
operations. 
 Further, recent events, including the fallout from problems in the U.S. credit markets, indicate a moderate to severe recession
in the U.S. and world economies, which could have an impact on our customers and the volume of business they are able to conduct with us and their ability to pay for services rendered. Additionally, the securities and credit markets have recently
been experiencing volatility and disruption, which could impact our ability to access capital. 
 Our continued success depends on our
customers’ trend toward outsourcing OPI services. 
 Our business depends on the continued need for outsourced OPI services as
driven by general economic and public policy factors. These trends may not continue, as businesses and organizations may either elect to perform OPI services in-house or discontinue OPI services, both of which would have a negative effect on our
revenues. Additionally, Spanish-English interpretation services accounted for the majority of our total OPI billed minutes in 2008. A decision by our customers to conduct an increasing amount of OPI services in-house, especially for the rapidly
growing Spanish-speaking community, could have an adverse effect on our business, financial condition and results of operations. 
  

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 The OPI services market in which we compete is highly competitive and our failure to compete
effectively could erode our market share. 
 Our failure to compete effectively in the outsourced OPI services market that we serve
could erode our market share and negatively impact our ability to service our debt. We expect that our existing competitors will strive to improve their outsourced OPI services and introduce new services with competitive price and customer service
characteristics. From time to time we may lose customers as a result of competition. Certain of our potential competitors may attempt to leverage their existing infrastructure to compete with us. For example, a large call center company may have the
requisite scale to enter into the OPI services market. If this were to occur, the outsourced OPI industry may become more competitive and may force us to decrease our profit margins in order to maintain our market position. 
 Our average revenue per minute has been declining. 
 We have undertaken a strategy to manage pricing per billed minute as a strategic tool to encourage our customers to purchase more billed minutes and to optimize our market share. If we are unable to
attract sufficient volume to offset lower per minute charges or if average rates per billed minute decrease beyond our expectations, we may be unable to generate revenue growth or maintain current revenue levels in the future. 
 Our business could be adversely affected by a variety of factors related to doing business internationally. 
 We currently conduct operations internationally. Although our OPI services constitute generally accepted business practices in the United States, such
practices may not be accepted in certain international markets. To the extent there is consumer, business or government resistance to the use of OPI services in international markets we target, our international growth prospects could be affected.
In addition, our international operations are subject to numerous inherent challenges and risks, including the difficulties associated with operating in multilingual and multicultural environments, varying and potentially burdensome regulatory
requirements, fluctuations in currency exchange rates, political and economic conditions in various jurisdictions, tariffs and other trade barriers, longer accounts receivable collection cycles, barriers to the repatriation of earnings and
potentially adverse tax consequences. Moreover, expansion into new geographic regions will require considerable management and financial resources and, as a result, may negatively impact our results of operations. 
 Our continued success depends on our ability to attract and retain qualified personnel. 
 Our business is labor intensive and places significant importance on our ability to recruit and retain a qualified base of interpreters and technical and
professional personnel. We continuously recruit and train replacement personnel as a result of our changing and expanding work force. A higher turnover rate among our personnel would increase our hiring and training costs and decrease operating
efficiencies and productivity. We may not be successful in attracting and retaining the personnel that we require to conduct our operations successfully. 
 Our continued success depends on our ability to retain senior management. 
 Our
success is largely dependent upon the efforts, direction, and guidance of our senior management. Our continued growth and success also depends in part on our ability to attract and retain qualified managers and on the ability of our executive
officers and key employees to manage our operations successfully. The loss of Dennis Dracup, Chief Executive Officer, Louis Provenzano, President and Chief Operating Officer, or Michael Schmidt, Chief Financial Officer, or our inability to attract,
retain or replace key management personnel in the future could have a material adverse effect on our business. 
 Our business is highly
dependent on the availability of telephone service. 
 Our business is highly dependent upon telephone service provided by various local
and long distance telephone companies. Any significant disruption in telephone service could adversely affect our business. Additionally, limitations on the ability of telephone companies to provide us with increased capacity in the future could
adversely affect our growth prospects. Rate increases imposed by these telephone companies would have the effect of increasing our operating

  

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expenses. In addition, our operation of global interpretation centers causes us to rely on the availability of telephone service outside the United States. Any significant disruption in telephone
service in the countries where we operate global interpretation centers could adversely affect our business. 
 Our business could be
adversely affected by an emergency interruption of our operations. 
 Our operations are dependent upon our ability to protect our OPI
interpretation centers against damage that may be caused by fire, power failure, telecommunications failures, unauthorized intrusion, computer viruses and other emergencies. We have taken precautions to protect ourselves and our customers from
events that could interrupt delivery of our services. These precautions include fire protection and physical security systems, rerouting of telephone calls to one or more of our other OPI interpretation centers in the event of an emergency, backup
power generators and a disaster recovery plan. We also maintain business interruption insurance in amounts that we consider adequate. Notwithstanding such precautions, a fire, natural disaster, human error, equipment malfunction or inadequacy, or
other event could result in a prolonged interruption in our ability to provide support services to our customers. 
 Our level of
indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry 
 At December 31, 2008 we had $466.8 million of outstanding debt. Our degree of leverage could have important consequences, including the following: 
  

	 	•	 	 It may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures, debt service requirements,
acquisitions, and general corporate or other purposes; 

  

	 	•	 	 A substantial portion of our cash flows from operations will be dedicated to the payment of principal and interest on our indebtedness and will not be
available for other purposes, including our operations, capital expenditures and future business opportunities; 

  

	 	•	 	 Certain of our borrowings, including our term loan and credit revolver facility are at variable rates of interest, exposing us to the risk of increased
interest rate; 

  

	 	•	 	 We may from time to time fail to be in compliance with covenants under our term loan facility, which will require us to seek waivers from our banks.

 We cannot predict the outcome of various measures in Congress aimed at limiting the transfer of U.S. jobs overseas.

 A number of our interpreters are located in global interpretation centers outside of the United States. Although hourly wages for our
off-shore interpreters are often above the average wage rate in their respective countries, these off-shore interpreters are paid less than comparable U.S.-based interpreters, and the global interpretation centers have a meaningful cost advantage
over our domestic interpretation centers. Several measures have been introduced in Congress aimed at prohibiting, or at least limiting, the transfer of U.S. jobs to foreign countries. It is not clear whether these legislative proposals will
eventually become law or what impact they may have on our business. 
  

	ITEM 1B:	UNRESOLVED STAFF COMMENTS 

 Not
applicable. 
 *    *    * 
  

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	ITEM 2:	PROPERTIES 

 Together with
our subsidiaries, we presently operate the following facilities: 
  

									
	 Location
	  	 Purpose
	  	Sq Ft	  	Lease/
Own	  	 Expiration

	 Monterey, CA
	  	Headquarters and Interpretation Center	  	28,020	  	Leased	  	December 2010
	 Elk Grove, Illinois
	  	Interpretation Center	  	5,026	  	Leased	  	November 2011
	 Dominican Republic
	  	Interpretation Center	  	16,527	  	Leased	  	October 2009
	 Panama (2 leases)
	  	Interpretation Center	  	12,273/10,076	  	Leased	  	April 2010 and November 2011
	 Costa Rica (2 leases)
	  	Interpretation Center	  	11,190/11,153	  	Leased	  	April 2010 and 2011

 The Company believes its facilities
are adequate for its current and reasonably anticipated future needs. 
  

	ITEM 3:	LEGAL PROCEEDINGS 

 We are party to
various lawsuits arising in the normal course of business. While the amount of liability that may result from these matters cannot be determined, we believe the ultimate liability will not materially affect our financial position, results of
operations, or cash flows. 
  

	ITEM 4:	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 

 Not applicable. 
 PART II 
  

	ITEM 5:	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 

 Not applicable. 
  

	ITEM 6:	SELECTED CONSOLIDATED FINANCIAL DATA 

 The
selected historical consolidated financial data presented below should be read in conjunction with “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s audited
consolidated financial statements contained in “Item 15 – Exhibits and Financial Statement Schedules.” Historical operating results in the following table are not necessarily indicative of the results of operations to be expected in
the future. 
  

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 Selected Consolidated Financial Data 
  

																						
	 	  	 	 	 	 	 	 	Predecessor
	 	  	Years Ended December 31,	 	 	June 12
to
December 31, 2004	 	 	January 1
to
June 11, 2004
	 	  	2008	  	2007	  	2006	 	 	2005	 	 	 
	 Statement of Operations Data:
	  			  			  				 				 				 		
	 Revenues
	  	$	212,644	  	$	183,188	  	$	163,294	  	 	$	144,878	  	 	$	80,284	  	 	$	64,692
	 Costs of services
	  	 	69,007	  	 	64,767	  	 	57,916	  	 	 	49,275	  	 	 	25,973	  	 	 	21,512
	 Other expenses:
	  			  			  				 				 				 		
	 Selling, general and administrative (2)
	  	 	38,881	  	 	32,410	  	 	28,807	  	 	 	24,635	  	 	 	12,441	  	 	 	10,423
	 Interest
	  	 	48,913	  	 	52,910	  	 	54,161	  	 	 	50,117	  	 	 	25,685	  	 	 	6,031
	 Merger related expenses
	  	 	—  	  	 	—  	  	 	—  	  	 	 	—  	  	 	 	104	  	 	 	9,848
	 Depreciation and amortization
	  	 	29,398	  	 	31,290	  	 	36,409	  	 	 	39,217	  	 	 	21,709	  	 	 	1,735
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total other expenses
	  	 	117,192	  	 	116,610	  	 	119,377	  	 	 	113,969	  	 	 	59,939	  	 	 	28,037
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Other income:
	  			  			  				 				 				 		
	 Interest
	  	 	355	  	 	915	  	 	798	  	 	 	285	  	 	 	287	  	 	 	49
	 Escrow settlement (1)
	  	 	—  	  	 	—  	  	 	795	  	 	 	—  	  	 	 	—  	  	 	 	—  
	 Other
	  	 	698	  	 	313	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total other income
	  	 	1,053	  	 	1,228	  	 	1,593	  	 	 	285	  	 	 	287	  	 	 	49
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Income (loss) before taxes on income
	  	 	27,498	  	 	3,039	  	 	(12,406	) 	 	 	(18,081	) 	 	 	(5,341	) 	 	 	15,192
	 Taxes (benefit) on income (loss)
	  	 	9,834	  	 	2,048	  	 	(2,895	) 	 	 	(8,465	) 	 	 	(1,614	) 	 	 	5,968
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net income (loss)
	  	$	17,664	  	$	991	  	$	(9,511	) 	 	$	(9,616	) 	 	$	(3,727	) 	 	$	9,224
		  	 	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Balance Sheet Data at end of period:
	  			  			  				 				 				 		
	 Cash and cash equivalents
	  	$	15,046	  	$	13,898	  	$	20,236	  	 	$	13,991	  	 	$	12,164	  	 	$	11,475
	 Total assets (4)
	  	 	800,568	  	 	813,103	  	 	843,966	  	 	 	869,731	  	 	 	904,688	  	 	 	263,566
	 Total long-term debt (3)
	  	 	466,776	  	 	470,704	  	 	476,097	  	 	 	484,380	  	 	 	499,644	  	 	 	224,890
	 Stockholders’ equity (4)
	  	 	184,880	  	 	183,872	  	 	204,283	  	 	 	213,420	  	 	 	222,770	  	 	 	8,740

  

	(1)	On June 11, 2004 as part of the Merger, $30.0 million of the Merger consideration was deposited into an escrow account on behalf of the stockholders and
optionholders of the Predecessor to secure their potential indemnity obligations to LLI. Since the Merger, periodic payments from the escrow account have been paid to the stockholders and optionholders of the Predecessor according to a
pre-determined payment schedule. Final settlement of the excrow account was reached with the previous owners on July 25, 2006. In final settlement of the escrow account, the Company received $795,000 for potential tax liabilities. As the
Company had already recorded these additional tax liabilities subsequent to the Merger and concluded there is not a clear and direct link to the orginal purchase price, the settlement amount of $795,000 was recorded into other income in the third
quarter of 2006. 

  

	(2)	Effective January 1, 2006, the Company adopted the provisions of Financial Accounting Standards Board Statement of Financial Accounting Standard (“SFAS”)
No. 123( R), “Share-Based Payment,”, which establishes the accounting for employee stock-based awards. The Company adopted SFAS No. 123( R) and as a result, periods prior to January 1, 2006 have not been restated. The
Company recognized stock-based compensation of $0.4 million for grants of its Holdings Class C restricted stock units in Selling, General and Administrative for each 2008, 2007 and 2006, consistent with compensation recorded for all employees who
had previously received grants since the Merger date. See further discussion in Note 7, “Stock-Based Compensation” in our consolidated financial statements. 

  

	(3)	Note that total long-term debt includes the current portion of long-term debt. 

  

	(4)	The 2007 and 2006 amounts have been revised to reflect a reclassification of tax and related party payables in our consolidated balance sheet. See further discussion in
Note 5 “Income taxes” in our consolidated financial statements. 

  

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	ITEM 7:	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

 The following discussion of our financial condition and results of operations should be read in conjunction with the “Selected Consolidated Financial
Data,” and the consolidated financial statements and the related notes thereto included elsewhere in this document. This discussion contains forward-looking statements about our markets, the demand for our products and services and our future
results. We based these statements on assumptions that we consider reasonable. Actual results may differ materially from those suggested by our forward-looking statements for various reasons including those discussed in the “Risk Factors”
and “Forward-Looking Statements” sections of this Annual Report on Form 10-K. 
 Introduction 
 We believe we are the leading global provider of OPI services from English into more than 170 different languages, 24 hours a day, seven days a week. Our
specially-trained, proprietary base of interpreters perform value-added OPI services which facilitate critical business transactions and delivery of emergency and government services between our customers and LEP speakers throughout the world. In
2008, we helped more than 35 million people communicate across linguistic and cultural barriers by providing OPI services to our customers. We offer our customers a high-quality, cost-effective alternative to staffing in-house multilingual
employees or using face-to-face interpretation. Through our OPI services, we improve our customers’ revenue potential, customer service and competitiveness by enhancing their ability to effectively serve the growing population of current and
prospective LEP speakers. 
 Overview of Operations 
 Our revenues are derived primarily from per minute fees charged to our customers for our interpretation services. Generally, customers are charged based on actual billed minutes of service and the
customer’s contractual rate per billed minute of service. In addition, the Company generates revenue from complementary services such as document translation, Video Interpretation services, American Sign Language, and face-to-face
interpretation. We recognize revenues when the services have been performed. 
 Expenses consist primarily of costs of services, selling,
general and administrative expenses, depreciation and amortization and interest expense. Costs of services primarily include the cost of our interpreters, call agents and telecommunications costs. 
 Critical Accounting Policies and Estimates 
 Our significant accounting policies summarized in “Note 1—Organization and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in Item 15, have been prepared in
accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”). In preparing the consolidated financial statements, GAAP requires management to select and apply accounting policies that involve estimates
and judgment. The following accounting policies may require a higher degree of judgment or involve amounts that could have a material impact on the consolidated financial statements. 
 Revenue Recognition 
 Our revenues are primarily generated from over-the-phone
interpretation services and fees. We recognize revenues when the services have been performed and all four of the following revenue recognition criteria have been met (i) persuasive evidence of an arrangement exists, (ii) delivery has
occurred or services have been rendered, (iii) the seller’s price to the buyer is fixed or determinable and (iv) collectibility is reasonably assured. We assess whether the fee is fixed or determinable based on the terms of the
contracts or purchase orders entered into with our customers. We assess collection based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. We generally do not require collateral
from our customers. 
  

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 Allowance for Doubtful Accounts 
 We maintain an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make payment. We determine the allowance based upon an evaluation of individual accounts,
aging of the portfolio, issues raised by customers that may suggest non-payment, including the customer’s credit-worthiness and historical experience, and the current economic environment. While our bad debt losses have historically been within
our expectations and the allowance established, we might not continue to experience the same loss rates that we have in the past. If the financial condition of individual customers or the general worldwide economy were to vary materially from the
estimates and assumptions made by us, the allowance may require adjustment in the future. We evaluate the adequacy of the allowance on a regular basis, modifying, as necessary, its assumptions, updating its record of historical experience and
adjusting reserves as appropriate. 
 Goodwill and Other Intangible Assets 
 We perform our annual impairment analysis of goodwill in the fourth quarter of each year according to the provisions of SFAS 142, Goodwill and Other Intangible Assets (“SFAS 142”). This
statement requires that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net
assets assigned to the reporting unit, goodwill is not impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we must
perform the second step of the impairment testing to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of goodwill is calculated by deducting the fair value of all tangible and intangible assets of the
reporting unit, excluding goodwill, from the fair value of the reporting unit as determined in the first step. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the
difference. 
 We performed our annual valuation analysis of goodwill on December 31, 2008 in accordance with SFAS142 as stated above.
Consistent with prior years we have one reporting unit which is the same as our operating segment. 
 We determined the fair value of the
reporting unit based on a weighting of market and income approaches. Under the market approach, we estimated the fair value based on market multiples of EBIT and EBITDA. Under the income approach, we measured fairvalue of the reporting unit based on
a projected cash flow method using a discount rate determined by our management which is commensurate with the risk inherent in our current business model. Our discounted cash flow projections were based on our annual financial forecasts developed
internally by management for use in managing our business and through discussions with the independent valuation firm engaged by us. The significant assumptions of these forecasts included continued revenue growth over the next five years. Given the
current economic environment and the uncertainties regarding the impact on our business, there can be no assurance that the estimates and assumptions made for purposes of our goodwill impairment testing at December 31, 2008 will prove to be
accurate predictions of the future. If our assumptions regarding forecasted revenue or gross margin rates are not achieved, we may be required to record goodwill impairment charges in future periods, whether in connection with the next annual
impairment testing or prior to that, if any change constitutes a triggering event outside of the period when the annual goodwill impairment test is performed. It is not possible at this time to determine if any such future impairment charge would
result or, if it does, whether such charge would be material. We believe that the assumptions and rates used in our impairment test under SFAS142 are reasonable. However, they are judgmental, and variations in any of the assumptions or rates
could result in materially different calculations of impairment amounts. 
 Based on our valuation results, we determined that the fair value of
our reporting unit continued to exceed its carrying value. Therefore, management determined that no goodwill impairment charge was required as of December 31, 2008. 
  

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 We amortize other intangible assets over their estimated useful lives. Customer relationships, internally
developed technology, trade names and trademarks are our most significant other intangible assets. We record an impairment charge on these assets if we determine that their carrying value may not be recoverable. The carring value is not recoverable
if it exceeds the undiscounted cash flows resulting from the use of the asset and its eventual disposition. Our estimates of future cash flows attributable to our other intangible assets require significant judgment based on our historical and
anticipated results and are subject to many factors. We assess the impairment of identifiable intangibles and long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable or that the life of
the asset may need to be revised. Factors we consider important which could trigger an impairment review include the following: 
  

	 	•	 	 significant negative industry or economic trends; 

  

	 	•	 	 significant loss of customers; 

  

	 	•	 	 significant changes in the manner of our use of the acquired assets or the strategy for our overall business. 

 When we determine that the carrying value of intangibles or other long-lived assets may not be recoverable based upon the existence of one or more of the
above indicators of impairment, we measure the potential impairment based on a projected discounted cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. An
impairment loss is recognized only if the carrying amount of the intangible asset or other long-lived asset is not recoverable and exceeds its fair value. Different assumptions and judgments could materially affect the calculation of the fair value
of our other intangible assets and other long-lived assets. 
 Stock-Based Compensation 
 We account for stock-based compensation in accordance with Statement of Financial Accounting Standards (SFAS) No. 123(R), “Share Based
Payment”. Under SFAS 123(R), the Company determines the fair value of its Language Line Holdings, LLC (“Holdings”) Class C restricted stock units pursuant to the probability-weighted expected return method. Under this method, the
value of an enterprise’s common stock is estimated from an analysis of the future values for the Company assuming various possible future liquidity events. SFAS 123(R) requires that the Company recognize compensation expense for only the
portion of restricted stock units that are expected to vest, rather than recording forfeitures when they occur, as previously permitted. If the actual number of forfeitures differs from those estimated by management, additional adjustments to
compensation expense may be required in future periods. 
 Income Taxes 
 In preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating actual current tax
exposures together with assessing tax credits and temporary differences resulting from differing treatment of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within
the consolidated balance sheet. We then assess the likelihood of additional tax exposure, and to the extent we believe that additional tax exposure may be likely, we must record a liability for such matters. To the extent we increase this liability
in a period; we include an expense within the tax provision in our consolidated statement of operations. Significant management judgment is also required in evaluating our uncertain tax positions. Our evaluation of uncertain tax positions is based
on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. If the actual settlements differ from these estimates or we adjust these estimates in
future periods, we may need to recognize a tax benefit or an additional tax charge that could materially impact our financial position and results of operations. 
  

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 Significant management judgment is required in determining our provision for income taxes, income tax
credits, deferred tax assets and liabilities. The recording of a liability based on additional tax exposure is based on estimates of taxable income by the jurisdictions in which we operate and the period over which amounts would be recoverable. In
the event that actual results differ from these estimates or we adjust these estimates in future periods, we may need to adjust our income tax liability, which could impact our financial position and results of operations. 
 In February 2009, California budget legislation was signed into law that, among other things, contained several state tax law changes that will affect the
Company’s effective state tax rate. As a result of these changes, the Company will need to re-evaluate its state deferred tax liabilities and assets in the first quarter of 2009, as the effect of changes in tax laws are accounted for in the
period the law changed. The Company is currently evaluating these tax law changes and their impact to the consolidated financial statements. 
 Claims and Legal Proceedings 
 In the normal course of business, we are party to various claims and legal proceedings. We record
a reserve for these matters when an adverse outcome is probable and we can reasonably estimate our potential liability. Although the outcome of these matters is currently not determinable, we do not believe that the resolution of these matters in a
manner adverse to our interest will have a material effect upon our financial condition, results of operations or cash flows for any interim or annual period. 
  

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 Historical Performance 
 Results of Operations 
 Recent events, including the fallout from problems in the U.S.
credit markets, indicate a moderate to severe recession in the U.S. and world economies, which could have an impact on our customers and the volume of business they are able to conduct with us, as well as the prices we able to charge for our
services. 
 The following table sets forth the percentages of revenue that certain items of operating data constitute for the periods
indicated: 
  

										
	 	  	Year Ended
December 31,
2008	 	 	Year Ended
December 31,
2007	 	 	Year Ended
December 31,
2006	 
	 Statement of Operations Data:
	  			 			 		
	 Revenues
	  	100.0	% 	 	100.0	% 	 	100.0	% 
	 Costs of services
	  	32.5	% 	 	35.3	% 	 	35.5	% 
	 Other expenses:
	  			 			 		
	 Selling, general and administrative
	  	18.3	% 	 	17.7	% 	 	17.6	% 
	 Interest
	  	23.0	% 	 	28.9	% 	 	33.2	% 
	 Depreciation and amortization
	  	13.8	% 	 	17.1	% 	 	22.3	% 
		  	 	 	 	 	 	 	 	 
	 Total other expenses
	  	55.1	% 	 	63.7	% 	 	73.1	% 
		  	 	 	 	 	 	 	 	 
	 Other income:
	  			 			 		
	 Interest
	  	0.2	% 	 	0.5	% 	 	0.5	% 
	 Escrow settlement
	  	—  	  	 	—  	  	 	0.5	% 
	 Other
	  	0.3	% 	 	0.2	% 	 	—  	  
		  	 	 	 	 	 	 	 	 
	 Total other income
	  	0.5	% 	 	0.7	% 	 	1.0	% 
		  	 	 	 	 	 	 	 	 
	 Income (loss) before income taxes
	  	12.9	% 	 	1.7	% 	 	(7.6	%) 
	 Income tax provision (benefit)
	  	4.6	% 	 	1.1	% 	 	(1.8	%) 
		  	 	 	 	 	 	 	 	 
	 Net income (loss)
	  	8.3	% 	 	0.6	% 	 	(5.8	%) 
		  	 	 	 	 	 	 	 	 

 Year Ended December 31, 2008 Compared to Year Ended December 31, 2007. 
 Revenues for the year ended December 31, 2008 were $212.6 million as compared to $183.2 million for the year ended December 31, 2007, an increase
of $29.5 million or 16.1%. This increase in revenue is driven by principally by an increase in OPI billed minutes, offset partially by a nominal decline in the average rate per billed minute. 
 For the year ended December 31, 2008, total costs of services was $69.0 million as compared to $64.8 million for the year ended December 31, 2007,
an increase of $4.2 million or 6.5%. This increase was primarily due to increased interpretation minutes, partially offset by a lower cost per minute as a result of lower interpreter costs. 
 Selling, general and administrative expenses for the year ended December 31, 2008 were $38.9 million as compared to $32.4 million for the year ended
December 31, 2007, an increase of $6.5 million or 20.0%. This increase was primarily due to higher sales and marketing costs of $2.0 million, operations support costs of $0.7 million and information technology and telecom admin of $0.5 million,
and overall increases in all other general and administrative costs. 
  

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 Interest expense for the year ended December 31, 2008 was $48.9 million as compared to $52.9 million
for the year ended December 31, 2007, a decrease of $4.0 million or 7.6%. This was primarily due to a decrease in the interest rate on our senior secured debt (at December 31, 2008 the rate was 4.71% as compared to 8.34% at
December 31, 2007), combined with a lower average principal balance during the period for our term loan. 
 Depreciation and amortization
was $29.4 million for the year ended December 31, 2008 as compared to $31.3 million for the year ended December 31, 2007, a decrease of $1.9 million or 6%. This decrease was primarily due to an intangible asset which became fully amortized
during 2007. 
 Interest income for the year ended December 31, 2008 was $0.4 million as compared to $0.9 million for the year ended
December 31, 2007, a decrease of $0.5 million or 61.3%. This decrease was the result of lower interest rates in 2008 compared to 2007. 
 Tax expense on income for the year ended December 31, 2008 was $9.8 million compared to $2.0 million for the year ended December 31, 2007, a change of $7.8 million, primarily due to a $24.5 million change in pretax results of
operations, from income before taxes of $3.0 million in 2007 to income before income taxes of $27.5 million in 2008. The effective tax rate for the year ended December 31, 2008 was 35.8% as compared to a 67.4% for the year ended
December 31, 2007. The primary reason for the decrease was due to certain of our previously unrecognized tax benefits being recognized in 2008 due to the lapse of statute of limitations as a reduction in our recorded tax expense. The
Company’s effective tax rate is significantly impacted by its permanent differences, which are significant in relation to the income before taxes on income. These permanent differences consist principally of a portion of the interest expense
incurred on our senior discount notes, which is non-deductible for income tax purposes. 
 Other income for the year ended December 31,
2008 was $0.7 million compared to $0.3 million for the year ended December 31, 2007. This increase is primarily due to fees charged on accounts receivable balances in excess of 30 days, which the Company began assessing in 2008. 
 As a result of the factors described above, net income was $17.7 million for the year ended December 31, 2008 as compared to $1.0 million for the year
ended December 31, 2007. 
 Year Ended December 31, 2007 Compared to Year Ended December 31, 2006. 
 Revenues for the year ended December 31, 2007 were $183.2 million as compared to $163.3 million for the year ended December 31, 2006, an increase
of $19.9 million or 12.2%. This increase in revenue is driven principally by an increase in OPI billed minutes, offset partially by a nominal decline in the average rate per billed minute. 
 For the year ended December 31, 2007, total costs of services was $64.8 million as compared to $57.9 million for the year ended December 31, 2006,
an increase of $6.9 million or 11.9%. This increase was primarily due to increased interpretation minutes, partially offset by efficiencies gained from continued business process improvements. 
 Selling, general and administrative expenses for the year ended December 31, 2007 were $32.4 million as compared to $28.9 million for the year ended
December 31, 2006, an increase of $3.5 million or 12.1%. This increase was primarily due to higher interpreter support and recruiting costs coupled with an increase in sales and marketing initiatives 
 Interest expense for the year ended December 31, 2007 was $52.9 million as compared to $54.2 million for the year ended December 31, 2006, a
decrease of $1.3 million or 2.4%. This decrease was primarily due to a decrease in the interest rate in 2007 versus 2006 on our term loan combined with a reduction in the principal balance of our term loan. 
 Depreciation and amortization was $31.3 million for the year ended December 31, 2007 as compared to $36.4 million for the year ended December 31,
2006, a decrease of $5.1 million or 14.0%. This decrease was principally attributable to intangible assets becoming fully amortized in 2007 and 2006. 
  

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 Interest income for the year ended December 31, 2007 was $0.9 million as compared to $0.8 million for
the year ended December 31, 2006, an increase of $0.1 million or 12.5%. This increase was the result of higher interest rates. 
 Escrow
settlement of $795,000 for the year ended December 31, 2006 was a result of final settlement of the escrow account related to the Merger. Final settlement of the escrow account was reached with the previous owners on July 25, 2006. In
final settlement of the escrow account, the Company received $795,000 for potential tax liabilities. As the Company had already recorded these additional tax liabilities subsequent to the Merger and concluded there is not a clear and direct link to
the original purchase price, the settlement amount of $795,000 was recorded into other income in the third quarter of 2006. 
 Tax expense on
income for the year ended December 31, 2007 was $2.0 million compared to $2.9 million of tax benefit on loss for the year ended December 31, 2006, a change of $4.9 million, primarily due to a $15.4 million change in pretax results of
operations, from a loss before income taxes of $12.4 million in 2006 to income before income taxes of $3.0 million in 2007. The effective tax rate for the year ended December 31, 2007 was 67.4% as compared to a 23.3% tax benefit for the year
ended December 31, 2006. The change in the effective rate is primarily due to expenses not deductible for tax purposes (principally nondeductible interest related to senior discount notes and expenses related to our stock compensation plan),
which increase the effective rate of tax expense on income and decrease the effective rate of benefit on loss. 
 Other income for the year
ended December 31, 2007 was $0.3 million. This amount is the interest charged to our customers for overdue balances on their account. 
 As
a result of the factors described above, net income was $1.0 million for the year ended December 31, 2007 as compared to a net loss of $9.5 million for the year ended December 31, 2006, an increase of $10.5 million or 110.5%. 

Liquidity and Capital Resources 
 Operating Activities. Net cash provided by operating activities for the year ended December 31, 2008 was $40.8 million. This reflects net income of $17.7 million and non-cash charges of $46.1 million, offset principally by cash
used for operating assets and liabilities (net) of $13.2 million and a decrease in deferred income taxes of $9.8 million. Non-cash charges include depreciation and amortization, amortization of deferred financing costs, accretion of discount on
long-term debt, and stock based compensation. Net cash provided by operating activities for year ended December 31, 2007 was $33.8 million. This reflects a net income of $1.0 million, non-cash charges of $46.3 million, offset by cash used for
operating assets and liabilities (net) of $4.4 million and a decrease in deferred income taxes of $9.0 million. Net cash provided by operating activities was $30.1 million for the year ended December 31, 2006. This reflects principally a net
loss of $9.5 million and a decrease in deferred income taxes of $10.6 million, offset by non-cash charges of $49.4 million 
 Investing
Activities. Net cash used in investing activities was $4.0 million for the year ended December 31, 2008. This reflects principally capital expenditures of $3.9 million for the year. Net cash used in investing activities was $2.9 million for
the year ended December 31, 2007. This reflects principally capital expenditures of $2.7 million for the year. Net cash used in investing activities was $2.9 million for the year ended December 31, 2006, reflecting capital expenditures for
the year. 
 Financing Activities. Net cash used in financing activities for the year ended December 31, 2008 was $35.6 million.
This reflects payments made on our senior secured debt of $17.5 million and a dividend distribution in the amount of $18.1 million to Language Line Holding II, Inc. an affiliated non-consolidated entity under the ultimate parent, Language Line
Holdings, LLC. Net cash used in financing activities for the year ended December 31, 2007 was $37.3 million. This reflects payments made on our senior secured debt of $17.3 million and a dividend distribution in the amount of $20.0 million. Net
cash used by financing activities for the year ended December 31, 2006 was $21.0 million, reflecting long-term debt repayments of $18.6 million, coupled with loan fees and other financing costs of $2.3 million. At December 31, 2008 the
maximum amount available under the revolving credit facility was $40.0 million, and no balance is outstanding. 
  

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 Our principal sources of liquidity are cash flow from operations and borrowings available under our revolver
credit facility. We believe that these funds will provide us with sufficient liquidity and capital resources for us to meet our financial obligations for the next 12 months, including our scheduled principal and interest payments, as well as to
provide funds for working capital, capital expenditures, and other needs. Our principal uses of cash are debt service requirements, capital expenditures, and working capital requirements. We believe these same venues (cash flow from operations and
credit facility availability through June 2010) will continue to provide us with sufficient liquidity and capital resources for us to meet our operating capital needs through June 2010. We expect to generate positive working capital through our
operations. However, we cannot predict whether our current operating trends and conditions will continue, or the effect on our business from the competitive environment in which we operate. 
 Debt Service. As of December 31, 2008, we had total indebtedness of $466.8 million and $40.0 million of borrowings available under our revolver
credit facility, as defined in our loan agreement, of which $0 is outstanding. 
 The senior secured credit facilities consist of a six-year
$40.0 million revolving credit facility and a seven-year amortizing $285.0 million term loan facility. Borrowings under the senior credit facilities generally bear interest based on a margin over, at our option, the lender’s base rate or the
reserve-adjusted LIBOR. The applicable margin for revolving credit loans will vary based upon our senior leverage ratio as defined in the senior credit facilities. The senior credit facilities are collateralized by first priority interests in, and
mortgages on, substantially all of our tangible and intangible assets and first priority pledges of all the equity interest owned by us in our existing and future domestic subsidiaries. 
 On June 11, 2004 Language Line, Inc. issued $165 million of 11 1/8% Senior Subordinated Notes (the “Notes”) for net proceeds of $160.8 million. Interest is payable on June 15 and
December 15 of each year. The Notes will mature on June 15, 2012. LLI may redeem some or all of the notes at any time on or after June 15, 2008 at the redemption prices set forth. The notes are unsecured and are subordinated to all
existing and future senior indebtedness. Each of LLI’s domestic subsidiaries guarantee the notes on a senior subordinated basis. 
 On
June 11, 2004 the Company issued approximately $109.0 million of 14 1/8% Senior Discount Notes for net proceeds of approximately $55.0 million. No cash interest will accrue on the senior discount notes prior to June 15, 2009.
Thereafter, cash interest on the senior discount notes will accrue at a rate of 14 1/8% per annum and be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2009. The senior
discount notes are unsecured senior obligations, are subordinate to the Notes described above, and rank equally with all of the Company’s future senior indebtedness and rank senior to all subordinated indebtedness. The senior discount notes are
subordinated to all of the Company’s subsidiaries’ existing and future obligations and are due June 15, 2013. 
 On
November 14, 2006, the Company entered into an Amended and Restated Credit Agreement (the “Agreement”) which amends and restates the Original Credit Agreement dated as of June 11, 2004 and amended as of November 3, 2005,
among LLI, the Company and the subsidiary guarantors party thereto. 
 The Agreement effects a refinancing and replacement of the Tranche B Term
Loans outstanding under the Original Credit Agreement with a new class of Term Loans designated as “Tranche B-1 Term Loans”. The aggregate principal amount of the modified loan is equal to the aggregate principal amount of original loan
under the Original Credit Agreement. The modified loan has terms, rights and obligations materially identical to the original loan except that the Applicable Margin for borrowings under the modified loan is 3.25% in the case of Eurodollar loans and
2.25% in the case of Alternate Base Rate Loans. In addition, the Agreement amended related definitions and contained immaterial modifications to various other provisions of the Original Credit Agreement. 
 Capital Expenditures. We expect to spend approximately $4.0 million in 2009 to fund our capital expenditures as well as normal investments in
telecommunications and company equipment. We plan to fund these expenditures through net cash flows from operations. 
  

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 We believe that the cash generated from operations will be sufficient to meet our debt service, capital
expenditures and working capital requirements. Subject to restrictions in our senior secured credit facilities and the indentures governing the notes, we may incur more debt for working capital, capital expenditures, acquisitions and for other
purposes. In addition, we may require additional financing if our plans materially change in an adverse manner or prove to be materially inaccurate. There can be no assurance that such financing, if permitted under the terms of our debt agreements,
will be available on terms acceptable to us or at all. 
 Recent events, including the fallout from problems in the U.S. credit markets,
indicate a moderate to severe recession in the U.S. and world economies, which could have an impact on our customers and the volume of business they are able to conduct with us, as well as the prices we able to charge for our services. Additionally,
the securities and credit markets have recently been experiencing volatility and disruption, which could impact our ability to access capital. Our principal sources of liquidity are cash flow from operations and borrowings available under our
revolver credit facility. We believe that these funds will be sufficient to meet our debt service, capital expenditures and working capital requirements. Subject to restrictions in our senior secured credit facilities and the indentures governing
the notes, we may incur more debt for working capital, capital expenditures, acquisitions and for other purposes. In addition, we may require additional financing if our plans materially change in an adverse manner or prove to be materially
inaccurate. There can be no assurance that such financing, if permitted under the terms of our debt agreements, will be available on terms acceptable to us or at all. However, we believe the lenders participating in our revolver credit facility will
be willing and able to provide financing in accordance with the terms of the agreement, and to date, our access to credit under our revolving credit facility has not been adversely affected by recent market conditions. Finally, we monitor the
financial strength of our third-party financial institutions, including those that hold our cash, and attempt to diversify our concentration of cash that we hold at any point in time. 
 Contractual Obligations 
 The following table sets forth our long-term contractual cash
obligations as of December 31, 2008 (dollars in thousands): 
  

																						
	 	  	Years Ending December 31,
	 	  	Total	  	2009	  	2010	  	2011	  	2012	  	2013	  	Thereafter
	 Senior secured credit facilities
	  	$	201,675	  	$	16,339	  	$	12,083	  	$	173,253	  	$	—  	  	$	—  	  	$	—  
	 Senior subordinated notes
	  	 	165,000	  	 	—  	  	 	—  	  	 	—  	  	 	165,000	  	 	—  	  	 	—  
	 Senior discount notes
	  	 	108,993	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	108,993	  	 	—  
	 Interest payments
	  	 	147,942	  	 	35,335	  	 	42,452	  	 	37,884	  	 	24,573	  	 	7,698	  	 	—  
	 Unrecognized tax benefits
	  	 	1,112	  	 	375	  	 	—  	  	 	—  	  	 	—  	  	 	—  	  	 	737
	 Operating leases
	  	 	2,344	  	 	1,185	  	 	983	  	 	176	  			  			  		
	 Service contract commitments
	  	 	9,558	  	 	3,700	  	 	3,700	  	 	2,158	  	 	—  	  	 	—  	  	 	—  
		  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 Total cash contractual obligations
	  	$	636,624	  	$	56,934	  	$	59,218	  	$	213,471	  	$	189,573	  	$	116,691	  	$	737
		  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 

 Interest payments with respect to the senior
secured credit facilities assume a variable rate of 4.71%, which represents the most recent rate applicable to these facilitities. Both the senior subordinated notes issued by Language Line, Inc. and the senior discount notes are 11 1/8% and 14 1/8% fixed rate notes, respectively. The senior discount note cash
interest payments start in December 2009. 
 The expected timing of payment of the obligations discussed above is estimated based
on current information. Timing of payments and actual amounts paid may be different depending on the time of receipt of services or changes to agreed-upon amounts for some obligations. 
  

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 Related Party Transactions 
 In January 2008, the Company’s ultimate parent, Language Line Holdings, LLC completed its acquisition of Coto Holdings, LLC (“Coto”), a previously unaffiliated company. As part of an
affiliate and intercompany services agreement executed between the Company, its parent and Coto, the Company is to provide certain management, interpretation and other defined services to Coto. 
 As consideration for these management services, Coto is charged a management fee by the Company equal to $500,000 per quarter. Management fees earned by the
Company for the year ended December 31, 2008, included in revenues in the statements of operations in the financial statements, totaled $1,945,000. 
 Additionally, Coto is charged a fee to reimburse the Company for costs it incurs for providing interpretation services, certain of their equipment and other miscellaneous costs. Reimbursable charges to
Coto for interpreters and equipment, netted against cost of revenues for the year ended December 31, 2008 totaled $13,127,000. Finally, reimbursable charges to Coto for other miscellaneous (indirect) costs netted against selling, general and
administrative expenses totaled $870,000 for the year ended December 31, 2008, respectively. At December 31, 2008, Coto owed the Company an aggregate of $2,387,000 related to these services and charges. 
 On January 19, 2006 the Company’s ultimate parent, Language Line Holdings, LLC, completed its acquisition of the unaffiliated U.K. based company
Language Line, Limited (“Language Line UK”). Language Line UK’s business operations are independent of the Company and are not included in the accompanying consolidated financial statements. The Company incurred $257,000 of
acquisition related costs in 2005 which were reported as a loan to Language Line UK on the Company’s balance sheet as of December 31, 2005. Subsequently the Company received a full amount of settlement on January 20, 2006 when the
acquisition was completed. The company has a contract to provide administrative and sales support services to Language Line UK for a fixed monthly fee. The Company recognized revenue of approximately $236,000, $234,000 and $480,000 for the years
ended December 31, 2008, December 31, 2007 and December 31, 2006, respectively for administrative and sales support services it rendered to Language Line UK. 
 The operations of the Company and subsidiaries are included in the consolidated federal and state income tax returns of its parent, Language Line Holdings, II Inc. The Company and subsidiaries manage the
respective tax payments and refunds for Language Line Holdings, II Inc. Included in the consolidated balance sheet at December 31, 2008 and 2007 are amounts owed to Language Line Holdings, II Inc. of $2,229,000 and $1,727,000 under this
arrangement. These amounts are presented separately from the amounts that are receivable or payable (from/to) taxing authorities for federal and state income taxes. In prior periods amounts owed to Language Line Holdings, II Inc. were offset against
amounts due from/to taxing authorities in the balance sheet. The Company has revised this presentation in the consolidated balance sheet at December 31, 2007. 
 Recent Accounting Pronouncements 
 In February 2007, the Financial Accounting Standards
Board (“FASB”) issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115” (“SFAS 159”). SFAS
No. 159 permits an entity to elect fair value as the initial and subsequent measurement attribute for many financial assets and liabilities. Entities electing the fair value option would be required to recognize changes in fair value in
earnings. Entities electing the fair value option are required to distinguish, on the face of the statement of financial position, the fair value of assets and liabilities for which the fair value option has been elected and similar assets and
liabilities measured using another measurement attribute. SFAS 159 is effective for fiscal years beginning after November 15, 2007. The adjustment to reflect the difference between the fair value and the carrying amount would be
accounted for as a cumulative-effect adjustment to retained earnings as of the date of initial adoption. We elected not to adopt the fair value option for any financial assets and liabilities. 
  

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 In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations”
(“SFAS 141(R)”). SFAS 141(R) establishes principles and requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, liabilities assumed, and any
noncontrolling interests in the acquiree, as well as the goodwill acquired. Significant changes from current practice resulting from SFAS 141(R) include the expansion of the definitions of a “business” and a “business
combination.” For all business combinations (whether partial, full or step acquisitions), the acquirer will record 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent
consideration will be recognized at its fair value on the acquisition date and, for certain arrangements, changes in fair value will be recognized in earnings until settlement; and acquisition-related transaction and restructuring costs will be
expensed as incurred rather than treated as part of the cost of the acquisition; reversals of valuation allowances related to acquired deferred tax assets and changes to acquired income tax uncertainties will be recognized in earnings; and, when
making adjustments to finalize preliminary accounting, acquirers will revise any previously issued post-acquisition financial information in future financial statements to reflect any adjustments as if they occurred on the acquisition date.
SFAS 141(R) also establishes disclosure requirements to enable users to evaluate the nature and financial effects of the business combination. SFAS 141(R) applies prospectively to business combinations for which the acquisition date is on
or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Earlier adoption is not permitted. SFAS 141(R) may have an impact on the Company’s consolidated financial statements when effective in the
event a business combination occurs. The nature and magnitude of the specific effects will depend upon the nature, terms and size of the acquisition consummated after the effective date. 
 In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — An amendment of ARB No. 51” (“SFAS 160”).
SFAS 160 amends Accounting Research Bulletin 51 “Consolidated Financial Statements” to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It
clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to as minority interest, is a third-party ownership interest in the consolidated entity that should be reported as a component of equity in the consolidated
financial statements. Among other requirements, SFAS 160 requires the consolidated statement of income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. SFAS 160 also
requires disclosure on the face of the consolidated statement of income of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. SFAS 160 is effective for fiscal years, and interim periods within
those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. Currently, we do not have any non-controlling interests (ownership interests in a subsidiary that are held by owners other than us) recorded in our
financial statements. The adoption of SFAS 160 is not expected to have a material impact on our financial statements. 
 In September 2006, the
FASB issued SFAS No. 157, “Fair Value Measurement” (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosure requirements about fair value measurements. SFAS
157 applies to other accounting pronouncements that require or permit fair value measurements. The fair value measurement of financial assets and financial liabilities is effective for us beginning in fiscal year 2008. Three FASB Staff Positions
(“FSP”) on this statement were subsequently issued. FSP No. 157-1, issued on February 14, 2008, excluded SFAS No. 13, “Accounting for Leases” (“SFAS 13”), and other accounting pronouncements that address
fair value measurements for purposes of lease classification or measurement under SFAS 13. However, this scope exception does not apply to assets acquired and liabilities assumed in a business combination, which are required to be measured at fair
value under SFAS No. 141, “Business Combinations” or SFAS 141(R), regardless of whether those assets and liabilities are related to leases. This FSP was effective upon our initial adoption of SFAS 157. FSP No. 157-2, issued on
February 12, 2008, delayed the effective date of this statement for non-financial assets and non-financial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. This FSP will be
effective for us in fiscal year 2009. FSP No. 157-3, issued in October 2008 and effective upon issuance, clarifies how SFAS 157 should be applied when valuing securities in markets that are not active by illustrating key considerations in
determining fair value. Our adoption of this statement on January 1, 2008 is limited to financial assets and liabilities, and did not have a material impact on our consolidated financial position, results of operations or cash flows. The
adoption of FSP No. 157-2 is not expected to have a material impact on our consolidated financial statements. 
 In April 2008, the FASB
issued FSP No. 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP 142-3”). This FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful
life of a recognized intangible asset under FASB Statement No. 142, Goodwill and Other Intangible Assets. FSP 142-3 applies to intangible assets that are acquired individually or with a group of other assets after the effective date

  

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of either a business combination or an asset acquisition. The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset under Statement 142 and the
period of expected cash flows used to measure the fair value of the asset under SFAS 141(R) and other U.S. GAAP. The FSP also contains new disclosure requirements with respect to recognized intangible assets. This FSP is effective for fiscal years
beginning after December 15, 2008, and for interim periods within such fiscal years. We are currently evaluating the potential impact of this statement on our consolidated financial statements. 
 In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles.” SFAS 162 identifies the sources of
accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with U.S. GAAP. SFAS 162 will become effective 60 days following
the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.” This statement did not result in
a change in our current practice. 
 Escrow Settlement 
 On June 11, 2004 as part of the Merger, $30.0 million of the Merger consideration was deposited into an escrow account on behalf of the stockholders and optionholders of the Predecessor to secure
their potential indemnity obligations to LLI. Since the Merger, periodic payments from the escrow account have been paid to the stockholders and optionholders of the Predecessor according to a pre-determined payment schedule. Final settlement of the
escrow account was reached with the previous owners on July 25, 2006. In final settlement of the escrow account, the Company received $795,000 for potential tax liabilities. As the Company had already recorded these additional tax liabilities
subsequent to the Merger and concluded there is not a clear and direct link to the original purchase price, the settlement amount of $795,000 was recorded into other income in the third quarter of 2006. 
 Off-Balance Sheet Arrangements 
 We do not
have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet
arrangements or other contractually narrow or limited purposes. 
  

	ITEM 7A:	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

 We are exposed to certain market risks as part of our ongoing business operations. Market risk is the potential loss arising from adverse changes in market rates and prices, general credit, foreign
currency exchange rate fluctuation, liquidity and interest rate risks, which may be exacerbated by the tightening of the global credit markets and the heightened economic uncertainty that have affected various sectors of the financial markets. We do
not enter into derivatives or other financial instruments for trading or speculative purposes. Our primary exposure includes changes in interest rates, as borrowings under our senior secured credit facilities bear interest at floating rates based on
LIBOR or the base rate, in each case plus an applicable borrowing margin. We will manage our interest rate risk by balancing our amount of fixed-rate and floating-rate debt. For fixed-rate debt, interest rate changes do not affect our earnings or
cash flows. Conversely, for floating-rate debt, interest rate changes generally impact our earnings and cash flows, assuming other factors are held constant. 
 As of December 31, 2008, we had $274 million principal amount of fixed-rate debt and $241.7 million of available floating-rate debt (of which we borrowed $201.7 million). Based on the amounts
outstanding under the revolver credit facility and the term loan, a hypothetical increase of one percentage point would cause an increase to interest expense of approximately $2.0 million on an annual basis on the floating rate debt. 
  

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 Changes in economic conditions could result in higher interest rates, thereby increasing our interest
expense and other operating expenses and reducing our funds available for capital investment, operations or other purposes. In addition, a substantial portion of our cash flow must be used to service debt, which may affect our ability to make future
acquisitions or capital expenditures. We may from time to time use interest rate protection agreements to minimize our exposure to interest rate fluctuation. However, there can be no assurance that hedges will achieve the desired effect. No such
interest rate protection agreements were entered into during 2008. We may experience economic loss and a negative impact on earnings or net assets as a result of interest rate fluctuations. 
  

	ITEM 8:	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 

 The information required by Item 8 is incorporated by reference herein from Part IV, Item 15(a)(1) and (2). 
  

	ITEM 9:	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 

 Not applicable. 
  

	ITEM 9A:	CONTROLS AND PROCEDURES 

 Disclosure
Controls and Procedures 
 Evaluation of Disclosure Controls and Procedures 
 The Company’s management, with the participation of the Company’s principal executive officer and principal financial officer, has evaluated the
effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, the
Company’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective. 
 Management’s Report on Internal Control Over Financial Reporting 
 The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.
Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, the Company’s management conducted an evaluation of the effectiveness of its internal
control over financial reporting based on criteria established in the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, the
Company’s management concluded that its internal control over financial reporting was effective as of December 31, 2008. 
 Because of
its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 
  

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 This annual report does not include an attestation report of the company’s registered public accounting
firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that
permit the Company to provide only management’s report in this annual report. 
 Changes in Internal Control Over Financial Reporting

 During the last fiscal quarter, there were no changes in our internal control over financial reporting that occurred that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting. 
  

	ITEM 9B:	OTHER INFORMATION 

 Not applicable.

 PART III 
  

	ITEM 10:	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 

 Our Board of Directors is divided into two classes, employees and non-employees, with the non-employee directors represented by ABRY Partners, LLC (“ABRY”). Directors in each class have no
designated term limits. Decisions regarding directors terms are made at the discretion of the ABRY directors. There are no family relationships among the directors and executive officers. The following table sets forth certain information regarding
our directors and executive officers as of March 24, 2009. 
  

					
	 Name
	  	Age	  	 Position

	 Dennis G. Dracup
	  	55	  	Chief Executive Officer and Director
	 Louis F. Provenzano
	  	49	  	President, Chief Operating Officer and Director
	 Michael F. Schmidt
	  	46	  	Chief Financial Officer, Senior Vice President of Finance and Director
	 James L. Moore Jr.
	  	63	  	Chief Information Officer
	 Yung-Chung Heh
	  	46	  	Vice President of Global Operations
	 Karen Gilhooly
	  	50	  	Senior Vice President of Sales
	 Jeffrey M. Johnson
	  	43	  	Vice President of Business Development
	 C.J. Brucato
	  	35	  	Director
	 Peggy Koenig
	  	52	  	Director
	 Azra Kanji
	  	29	  	Director

 Dennis G. Dracup joined us in 2001
as President and Chief Executive Officer. Prior to joining us and since 1996, Mr. Dracup was the Chief Executive Officer of Gemkey.com and the President of Pitney Bowes Software Solutions. Mr. Dracup earned his Executive Management
Certificate from Northwestern University, M.S. in Information Systems from Roosevelt University, M.B.A. from State University of New York at Buffalo and B.A. in English from Canisius College. 
  

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 Louis F. Provenzano has served as the Company’s President, Chief Operating Officer since
October 2006 and as Executive Vice President of Sales and Marketing since October 1, 2005. Mr. Provenzano joined us in November 2004 as Senior Vice President of Sales. Prior to joining us and since December 2002, Mr. Provenzano was
Vice President of Worldwide Sales and Account Management for Metavante, a subsidiary of M&I Bank. Prior to that and since 1989, Mr. Provenzano held positions of Vice President of Worldwide Sales for Alysis Technologies (acquired by Pitney
Bowes) and Senior Vice President of Loan Pricing Corporation (acquired by Reuters). Mr. Provenzano earned a B.A. degree from Boston College. 
 Michael F. Schmidt has served as the Company’s Senior Vice President of Finance since July 23, 2007 and Chief Financial Officer since August 15, 2007. Prior to joining us and since April 2004, Mr. Schmidt
was Chief Financial Officer and Executive Vice President of Autobytel. From April 2002 to April 2004, Mr. Schmidt was Chief Financial Officer at Telephia Inc., a leading provider of performance information for the mobile telecommunications
industry. From December 2000 to August 2001, Mr. Schmidt was Chief Financial Officer of Autoweb.com, Inc., an automotive marketing services company. From May 2000 to October 2000, Mr. Schmidt was Chief Operating Officer and Chief Financial
Officer at MizBiz, an internet startup. From September 1999 to May 2000, Mr. Schmidt was Director of Finance at Pacificare Health Systems, a health care company. From 1988 to March 1999, Mr. Schmidt held various senior level finance and
operational positions at IMS Health, a worldwide provider of information services. Mr. Schmidt began his career as a certified public accountant with Ernst & Whinney. Mr. Schmidt received a Bachelors of Business Administration and
Accounting from Cleveland State University. 
 James L. Moore Jr. joined us in 2000 as Chief Information Officer. Prior to joining
us, and since 1998, Mr. Moore was the Chief Information Officer of Borland Software Corporation and Director of Information Systems of Softbank Content Services Inc. Mr. Moore earned his M.S. and B.A. in Engineering from California State
University Northridge. 
 Yung-Chung Heh joined the Company in 1989. Prior to her current position as Vice President, Global
Operations, she was Vice President of International Sales. Prior to that, she was Director of Marketing and Sales and Director of Operations. Ms. Heh has an A.A. degree in Accounting, and a B.A. in English. She earned her M.A. in Translation
and Interpretation (Chinese/English) from the Monterey Institute of International Studies. 
 Karen Gilhooly joined the Company in
September 2006. Prior to joining the Company, Ms. Gilhooly was with Citigroup where she served as Managing Director of the Global Transactions group in the Corporate Investment Bank. In this capacity, Ms. Gilhooly led the North America
sales effort for international payments and product franchising. Though the majority of Ms. Gilhooly’s career was spent with Citigroup in a variety of business management roles, she also held senior leadership positions in companies
engaged in the emerging online bill payment technologies including Metavante, Intelidata and Princeton eCom. Ms Gilhooly attended the University of Illinois where she majored in History and English. She is a certified expert in several sales and
business management disciplines. 
 Jeffrey M. Johnson has served as Vice President, Business Development since July, 2006.
Mr. Johnson joined Language Line Services in 2002 in a Market Management position and in 2004 held the Director of Marketing position. Prior to Language Line Services, Mr. Johnson held senior Operations and Marketing positions at Pitney
Bowes. Mr. Johnson holds an MBA with distinction from Northwestern University’s J.L. Kellogg Graduate School of Management, and a Bachelor of Science degree with honors from California Polytechnic State University. 
 C.J. Brucato became a Director in June 2004. Mr. Brucato is a Partner of ABRY Partners, LLC, which he joined in 1996. Prior to joining
ABRY, Mr. Brucato was a member of the Media, Telecommunications and Entertainment Investment Banking Group at Prudential Securities, Inc. He is presently a director (or the equivalent) of CapRock Holdings, Inc., CommerceConnect Media Holdings,
Inc., Hispanic Yellow Pages Network, LLC, KnowledgePoint360 Group, CyrusOne, Hosted Solutions and Q9 Networks. Mr. Brucato earned his B.S.E. from Princeton University. 
 Peggy Koenig became a Director in June 2004. Ms. Koenig is a Managing Partner of ABRY Partners, LLC, which she joined in 1993. From 1988 to 1992, Ms. Koenig was a Vice President,
Partner and member of the board of directors of Sillerman Communication Management Corporation, a merchant bank, which made investments principally in the radio industry and was responsible for the formation of the public radio company, SFX
Broadcasting, Inc. From 1986 to 1988, Ms. Koenig was the Director of Finance for Magera Management, an independent motion picture financing company for Columbia and Tri-Star Pictures. She is presently a director (or the equivalent) of Commerce
Connect Media Holdings, Inc., Psychological Services, Inc., KnowledgePoint360 Group and F&W Media. Ms. Koenig received her undergraduate degree from Cornell University and an M.B.A. from the Wharton School of the University of Pennsylvania.

  

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 Azra Kanji became a Director in June 2004. Ms. Kanji is a Vice President at ABRY
Partners, LLC, which she joined in 2003. From 2001 to 2003, Ms. Kanji was an analyst in the Communications, Media, and Entertainment group at Goldman Sachs. She is presently a director of PSI and KnowledgePoint360 Group. Ms. Kanji received
her undergraduate degree from Duke University. 
 In connection with the purchase of a significant portion of the senior discount notes offered
by us or equity securities of our ultimate parent company, certain third-parties obtained a right to designate observers to our board of directors. 
 Audit Committee 
 Our Board has a separately-designated standing Audit Committee. The members of the Audit Committee are C.J.
Brucato, Peggy Koenig and Azra Kanji. Since our equity is not currently listed on or with a national securities exchange or national securities association, we are not required to have an audit committee and therefore have not designated any of our
Audit Committee members as an audit committee financial expert. 
 Code of Business Conduct and Ethics 
 Our Company has adopted a Code of Business Conduct and Ethics (the “Code”) applicable to our Company’s directors, officers (including the
Chief Executive Officer, Chief Financial Officer, Controller and persons performing similar functions), employees, agents and consultants. Our Code satisfies the requirements of a “code of ethics” within the meaning of Section 406 of
the Sarbanes-Oxley Act of 2002 and the rules issued by the Securities and Exchange Commission thereunder. Amendments to, or waivers from, a provision of our Code that apply to our Company’s directors or executive officers, including the Chief
Executive Officer, Chief Financial Officer, Controller and persons performing similar functions, may be made only by the Company’s board of directors. Our Company has not amended the Code and has filed the Code as an exhibit to this Annual
Report on Form 10-K. 
  

	ITEM 11:	EXECUTIVE COMPENSATION 

 Because
affiliates of ABRY own more than 50% of the voting common stock of Language Line Holdings, LLC (“Holdings’), we are a “controlled company” within the meaning of Rule 4350(c)(5) of the Nasdaq Marketplace rules. As a
“controlled company”, we qualify for exemptions from certain corporate governance rules of The Nasdaq Stock Market LLC, including the requirement that executive compensation be determined by a majority of independent directors or a
compensation committee comprised solely of independent directors. Our Compensation Committee is comprised solely of non-employee directors, consisting of Peggy Koenig, C.J. Brucato and Azra Kanji, with Peggy Koenig acting as the chairperson.

 The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and, based upon its review and
discussions, the Compensation Committee recommended to the board of directors that the Compensation Discussion and Analysis be included in the Annual Report on Form 10-K. 
 This report has been provided by the Compensation Committee of the Board of Directors of the Company. 
 Peggy Koenig, Chairperson of the Compensation Committee 
 C.J. Brucato 
 Azra Kanji 
  

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 COMPENSATION DISCUSSION AND ANALYSIS 
 Our Compensation Committee is responsible for reviewing and approving the compensation of our named executive officers, as well as reviewing and approving our incentive plans. The review and approval of
compensation and incentives to be awarded by the Compensation Committee to the named executive officers is typically undertaken on an annual basis as part of the Company’s budget review process. Once the Compensation Committee has completed its
review and approval process, the Compensation Committee submits its recommendations to the board of directors for the board of directors for further review, discussion and final approval. 
 Compensation Objectives 
 We believe that
our compensation program must support our strategy, be competitive, and provide both significant rewards for outstanding performance and clear financial consequences for underperformance. We also believe that a significant portion of the named
executive officers’ compensation should be “at risk” in the form of annual and long-term incentive awards that are paid, if at all, based upon company performance. The compensation awarded to our named executive officers for fiscal
2008, as well as prior years, was intended: 
  

	 	•	 	 To encourage and reward strong performance; and 

  

	 	•	 	 To motivate our named executive officers by providing them with a meaningful equity stake in the company. 

 The accounting and cost implications of our compensation program are considered in program design; however, the main driver of design is alignment with our
business needs. 
 Role of the Compensation Committee and Executive Officers 
 Compensation for our chief executive officer is set forth in his Employment Agreement. Equity awards to the chief executive officer are made solely at the
discretion of the Compensation Committee. The chief executive officer has been awarded two grants: the first as part of his initial Employment Agreement and the second subsequent to the successful acquisition of Language Line Limited in 2006. The
Compensation Committee submits its recommendations to the board of directors for final approval. 
 Following an evaluation of the
company’s performance and expectations for the coming year, our chief executive officer makes compensation recommendations to the Compensation Committee for our executive officers, including chief financial officer and president/chief operating
officer, that are generally, with minor adjustments, approved by the Compensation Committee. Our chief executive officer also recommends to the Compensation Committee the amount of any equity compensation to be awarded to our executive officers,
including chief financial officer and president/chief operating officer. Once the Compensation Committee has approved the chief executive officer’s recommendations, the Compensation Committee submits its recommendations to the board of
directors for final approval. 
 The board of directors approves all compensation and equity awards to our executive officers, including our
chief executive officer, chief financial officer and president/chief operating officer. 
 Elements of our Compensation Program

 Base Salary 
 Base salary
is intended to provide cash compensation to the named executive officers for their performance of core duties. The Compensation Committee reviews and approves base salary recommendations as presented by the chief executive officer. Base salary
recommendations are intended to approximate the market value of a position, based upon analysis of similar positions with essentially the same job responsibilities. Market value data is provided to the Company by executive search firms during the
normal recruitment process. 
  

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 Annual salary increases are defined for the chief executive officer in his employment agreement, and are
granted to the balance of our executive officers based on inflationary wage increases granted, if any, to all employees as part of the operating budget approval process. Current economic conditions are also considered in this process. During 2008
general wage increases of five percent were granted to our chief executive officer and three percent were granted to our executive officers, including our chief financial officer and president/chief operating officer. 
 Annual Incentives 
 Annual incentives in the
form of the Company’s “Bonus Plan” are intended to tie a significant portion of each of the named executive officer’s compensation to our annual performance. The annual incentives paid in 2009 for 2008 were based upon the
performance of the Company in 2008. 
 The Bonus Plan for our chief executive officer, chief financial officer and president/chief operating
officer is tied to achievement of EBITDA targets set in the chief executive officer’s employment contract, and the chief financial officer and president/chief operating officer employment offer letters. The Bonus Plan for the balance of our
executive officers is tied to both revenue and EBITDA growth over the prior year. In addition, the board of directors reserves the right to adjust annual incentives for extraordinary or unusual items; although in practice this right has not
historically been administered to a material effect. 
 In 2008 the company exceeded its EBITDA target by 27%, resulting in a bonus earned by
our chief executive officer of 67.5% of salary and bonuses for our chief financial officer and president/chief operating officer of 83.8% of salaries. In 2008, revenue and EBITDA growth over the prior year were approximately 15% and 18%,
respectively, resulting in bonuses earned by our other named executive officers of 65.0% of their base salaries. 
 There are no policies
regarding the recovery of awards or payments in the event the performance measures upon which the awards or payments are based are restated or otherwise adjusted in a manner that would have reduced the size of the awards or payments. 
 The Company does not utilize any other non-equity incentive compensation plans. 
 Long-Term Incentives 
 We believe that our long term success depends upon aligning
executives’ and ownerships’ interests. To support this objective, we provide our executives with means to become significant equity holders in the business of the Company through the issuance of Class C restricted stock units of our
ultimate parent, Holdings, which we believe support the long-term retention of executives and reinforce our longer-term goals. 
 Equity Ownership. The Class C restricted stock units of Holdings vest according to a specified schedule and will be expensed to compensation over the five year vesting period. Vesting will accelerate upon a change of control of
Holdings, (as such term is defined in the applicable incentive unit agreement) and upon certain types of sale of the Company. Vesting will cease if the individual ceases to be employed by Holdings or any of its subsidiaries. If the individual ceases
to be employed by Holdings, or any of its subsidiaries, Holdings will have the option to purchase all or any portion of the vested and/or the unvested Class C restricted stock units. The aggregate purchase price for all unvested units will be $1.00,
and the purchase price for each vested unit will be the fair market value for such unit as of the date of individual’s termination. If, however, the Company terminates the individual’s employment for cause, the aggregate purchase price of
all vested units will be $1.00. Holdings’ right to repurchase the individual’s units will terminate upon a change of control, provided that the individual is employed by Holdings, or any of its subsidiaries at the time of the change of
control. 
 Historically, the date upon which restricted stock unit awards have been granted has not been fixed, but are considered upon the
recommendation of the chief executive officer. If we do grant restricted stock unit awards in the future, they will be presented to the both Compensation Committee and Board of Directors for review and approval before being granted. 
 Option Awards. We do not currently utilize options as part of our executive compensation program. 
  

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 Compensation Determination 
 In determining compensation amounts awarded, the Compensation Committee focused primarily on both revenue and EBITDA growth during fiscal year 2008 in addition to adjusting base salaries as deemed
appropriate. 
 Supplemental Benefits, Deferred Compensation and Perquisites 
 We do not provide supplemental benefits and perquisites for executives. None of our named executive officers have deferred any portion of their compensation,
except for 401(k) contributions and medical benefits paid. 
 Our Benefit Plans 
 We also provide a variety of standard welfare benefits to our employees, such as medical, dental, vision, short-term and long-term disability, and life
insurance and accidental death and dismemberment benefits. A flexible spending plan, an employee assistance program and incentive compensation is also provided to employees. 
 Employment Agreements 
 Generally, we do not favor employment agreements unless they are
required to attract or retain an executive to the Company. We have entered into an employment agreement with our Chief Executive Officer, Dennis G. Dracup, as described in the narrative accompanying the Summary Compensation Table. The employment
agreement with Mr. Dracup was essential to attract and/or retain his services. The remaining named executive officers are employed on an “at will” basis and do not have an employment agreement with the Company. 
 In addition, the balance of the named officers have executed offer letters setting forth their beginning base salary and their eligibility to participate in
the Company’s Bonus Plan. There is no length of employment provisions in any of their respective offer letters. 
  

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 Summary Compensation Table 
 The following table sets forth the total compensation earned by each of the named executive officers for the fiscal year ended December 31, 2008. 
  

																					
	 Name and Principal Position
	  	Year	  	Salary ($)	  	Bonus	  	Stock Awards
(6) ($)	  	Non-Equity
Incentive Plan
Compensation (7)	  	All Other
Compensation
(8) ($)	  	Total ($)
	 Dennis G. Dracup
Chief Executive Officer
	  	2008	  	$	415,310	  	$	—  	  	$	253,135	  	$	271,268	  	$	18,302	  	$	958,015
	  	2007	  	$	395,526	  	$	—  	  	$	253,135	  	$	184,357	  	$	22,647	  	$	855,665
		  	2006	  	$	377,708	  	$	—  	  	$	247,315	  	$	192,938	  	$	20,132	  	$	838,093
								
	 Louis F. Provenzano (1)
President and Chief Operating Officer
	  	2008	  	$	262,631	  	$	—  	  	$	46,663	  	$	145,547	  	$	13,885	  	$	468,726
	  	2007	  	$	254,375	  	$	—  	  	$	73,038	  	$	107,125	  	$	13,937	  	$	448,475
		  	2006	  	$	217,667	  	$	—  	  	$	14,251	  	$	25,000	  	$	12,910	  	$	269,828
								
	 Michael F. Schmidt (2)
Chief Financial Officer & SVP Finance
	  	2008	  	$	253,750	  	$	—  	  	$	20,735	  	$	63,281	  	$	10,072	  	$	347,838
	  	2007	  	$	110,208	  	$	—  	  	$	4,679	  	$	—  	  	$	—  	  	$	114,887
		  	2006	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	—  
								
	 James L. Moore Jr.
Chief Information Officer
	  	2008	  	$	205,012	  	$	—  	  	$	15,926	  	$	135,329	  	$	10,211	  	$	366,478
	  	2007	  	$	199,041	  	$	—  	  	$	15,926	  	$	88,245	  	$	10,166	  	$	313,378
		  	2006	  	$	194,100	  	$	—  	  	$	15,708	  	$	25,000	  	$	19,337	  	$	254,145
								
	 Karen Gihooly (3)
Senior Vice President of Sales
	  	2008	  	$	191,713	  	$	—  	  	$	18,200	  	$	123,950	  	$	603	  	$	334,466
	  	2007	  	$	185,000	  	$	—  	  	$	16,112	  	$	27,473	  	$	558	  	$	229,143
		  	2006	  	$	61,667	  	$	65,000	  	$	1,208	  	$	—  	  	$	—  	  	$	127,875
								
	 Solange Jerolimov (4)
Former Interim Chief Financial Officer
	  	2008	  	$	86,477	  	$	—  	  	$	4,315	  	$	51,500	  	$	8,997	  	$	151,289
	  	2007	  	$	136,875	  	$	—  	  	$	2,836	  	$	8,550	  	$	9,646	  	$	157,907
		  	2006	  	$	51,004	  	$	—  	  	$	178	  	$	—  	  	$	2,145	  	$	53,327
								
	 Jeffrey C. Grace (5)
Former Chief Financial Officer
	  	2008	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	—  	  	$	—  
	  	2007	  	$	110,618	  	$	—  	  	$	7,089	  	$	50,000	  	$	7,835	  	$	175,542
		  	2006	  	$	171,372	  	$	—  	  	$	3,810	  	$	12,500	  	$	11,121	  	$	198,803

  

	(1)	Mr. Provenzano was appointed President and Chief Operating Officer in October 2006. Amounts earned during the year ended December 31, 2006 includes $154,617
earned as Executive Vice President of Sales and marketing, and $62,500 earned as President and Chief Operating Officer, where his annualized salary was $250,000. 

  

	(2)	Mr. Schmidt joined the company on July 23, 2007. He was appointed Senior Vice President of Finance on July 23, 2007 and Chief Financial Officer on
August 15, 2007. Mr. Schmidt’s salary is $257,500 per annum. 

  

	(3)	Ms. Gilhooly joined the Company on September 1, 2006 as Vice President of Sales. Ms. Gilhooly received a signing bonus of $65,000 upon joining the
Company. 

  

	(4)	Ms. Jerolimov was the acting Chief Financial Officer of the Company for the period June 16, 2007 through August 14, 2007. Ms. Jerolimov was the
Company’s Controller prior to this period and again from August 15, 2007 through August 29, 2008, at which time she left the Company for personal reasons. Upon her departure, Ms. Jerolimov forfeited 135,000 Holdings Class C
restricted stock units. 

  

	(5)	Mr. Grace was appointed Chief Financial Officer in December 2006. Amounts earned during the year ended December 31, 2006 include $159,961 earned as
Controller, where his annualized salary was $172,300, and $11,411 earned as Chief Financial Officer were his annualized salary was $212,300. Mr. Grace resigned as Chief Financial Officer of the Company effective June 15, 2007. Upon his
departure, Mr. Grace forfeited 650,000 Holdings Class C restricted stock units. 

  

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	(6)	The amounts of the stock awards shown in the table represent the expense reported for financial reporting purposes in 2008, 2007 and 2006 for the fair value of Holdings
Class C restricted stock units granted in 2008 as well as prior fiscal years in accordance with SFAS No. 123(R). For additional information, refer to the “Share-Based Compensation” section of Note 7 of the “Notes to Consolidated
Financial Statements.” 

  

	(7)	Amounts included in this column include amounts paid as annual incentive compensation (bonus), with the exception of Mr. Dracup, whose amounts represent those
earned as a bonus and payable in the following year. For example, the $271,268 amount listed in the 2008 column represents Mr. Dracup’s bonus earned in 2008 that will be paid to him in March 2009. Subject to his employment agreement,
Mr. Dracup’s bonus is payable upon his being employed through the last day of the year in which the bonus is earned, and he does not have to be employed in March of the following year, when the bonus amounts are generally paid.

  

	(8)	Represents matching contributions to the employee’s respective Company 401(k) account, medical benefits paid by the Company and life insurance premiums paid by the
company, respectively, for the following individuals in 2008: Mr. D. Dracup- $8,265, $8,759 and $1,278; Mr. L. Provenzano- $8,879, $4,205 and $801; Mr. M. Schmidt- $3,434, $6,638 and $0; Mr. J. Moore- $7,986, $1,598 and $627;
Ms. K. Gihooly- $0, $0 and $603; and Ms. J. Jerolimov- $2,692, $6,039 and $266. In 2007 the following amounts were paid: Mr. D. Dracup - $8,493, $12,936 and $1,218; Mr. L. Provenzano - $8,925, $4,235 and $777; Mr. J. Moore -
$7,962, $1,598 and $606; Ms. K. Gihooly - $0, $0, and $558; Ms. S. Jerolimov $0, $9,160, and $486; and Mr. J. Grace - $4,425, $3,099 and $311. In 2006 the following amounts were paid: Mr. D. Dracup - $8,406, $10,661 and $1,065;
Mr. L. Provenzano - $8,667, $3,553 and $690; Mr. J. Moore - $7,764, $11,029 and $544; Ms. K. Gihooly - $0, $0, and $0; Ms. S. Jerolimov $0, $2,145, and $0; and Mr. J. Grace - $6,855, $3,677 and $589.

 Mr. Dracup’s Employment Agreement 
 In 2004, we entered into an employment agreement with Mr. Dracup, which has been subsequently amended in March 2006 and again in December 2008. The employment agreement for Mr. Dracup provides
for an initial term of five years with automatic one-year renewals unless otherwise terminated earlier or either party gives notice not to renew. Under the employment agreement, Mr. Dracup is paid a base salary of $350,000 per year. The base
salary will increase by 5% on each anniversary of the employment agreement. In the event Mr. Dracup’s employment is terminated due to (i) his resignation “without good reason,” (ii) death, “disability” or
other incapacity or (iii) by the Company with “cause” (as each such term is defined in the employment agreement), Mr. Dracup is entitled to certain benefits but no severance payments. If Mr. Dracup’s employment is
terminated by the Company “without cause” or he resigns for “good reason” (as each such term is defined in the employment agreement), Mr. Dracup is entitled to severance payments and certain benefits for a period of twelve
months from the date of termination. Mr. Dracup will be required to sign a release as a condition to receiving any severance payments. The employment agreement also contains noncompete provisions, which restrict Mr. Dracup from being
involved in any business which is in competition with us for a period of one year from the date of termination of employment. 
 The remaining
named executive officers are employed on an “at will” basis and do not have an employment agreement with the Company. The remaining named executive officers offer letters contain noncompete provisions, which restrict them from being
involved in any business which is in competition with us for a period of one year from the date of termination of employment. 
 Termination,
Change of Control and Change of Responsibility Payments 
 Mr. Grace resigned as Chief Financial Officer of the Company effective
June 15, 2007 for personal reasons. Mr. Graces’ compensation is included in the Summary Compensation Table above. No additional compensation is due to Mr. Grace. 
  

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 The table below reflects the amount of compensation to Mr. Dracup in the event of a termination or, if
applicable, upon a change of control. The amounts shown assume that such a termination or change of control was effective as of December 31, 2008, and thus includes amounts earned through such time and are estimates of the amounts which would
be paid upon termination or change of control. The actual amounts to be paid can only be determined at the time of Mr. Dracup’s separation from us or the change of control. 
  

															
	 Reason for termination
	  	Severance
payment (1)	 	 	SERP (3)	  	Benefits (4)	  	Stock Award
Payments	 
	 Death
	  	$	—  	  	 	$	—  	  	$	11,077	  	$	2,425,092 	(5) 
	 Disability
	  	$	—  	  	 	$	—  	  	$	11,077	  	$	2,425,092 	(5) 
	 Termination by us without cause
	  	$	722,759 	  	 	$	—  	  	$	11,077	  	$	2,425,092 	(5) 
	 Termination by us with cause
	  	$	—  	  	 	$	—  	  	$	11,077	  	$	1 	  
	 Termination by Mr. Dracup for good reason
	  	$	722,759 	  	 	$	—  	  	$	11,077	  	$	2,425,092 	(5) 
	 Change of control
	  	$	722,759 	(2) 	 	$	—  	  	$	11,077	  	$	3,545,455 	(6) 
	 Termination by Mr. Dracup without cause
	  	$	—  	  	 	$	—  	  	$	11,077	  	$	2,425,092 	(5) 

  

	(1)	Amounts reflect the equivalent of twelve month’s salary of $425,439, plus the equivalent bonus paid in 2008 of $184,357, plus the equivalent of twelve month’s
Group Life Insurance of $1,278, plus the equivalent of twelve month’s 401(K) match of $8,265. The severance payment would be paid in twelve equal monthly installments. 

  

	(2)	This amount will be reduced by the value paid in cash or marketable securities with respect to Language Line Holdings, LLC restricted stock unit gains.

  

	(3)	This is not applicable since there is no Supplemental Executive Retirement Plan (“SERP”) with respect to Mr. Dracup’s employment contract.

  

	(4)	Represents rates currently in effect for COBRA insurance benefits for twelve months totalling $11,077. 

  

	(5)	Represents 9,327,273 vested Class C restricted stock units at the current fair value of $0.26 per unit plus $1.00 in aggregate for unvested units.

  

	(6)	Represents 13,636,364 Class C units at the current fair value of $0.26 per unit. 

  

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Table of Contents

 2008 Grants of Awards Table 
 The following table describes the Holdings Class C restricted stock units granted to our named executive officers during the year ended December 31, 2008. There are no outstanding or exercisable
options with respect to any stock incentive plans at December 31, 2008. The Company currently has no stock option incentive plans. 
 2008 GRANTS OF AWARDS TABLE 
  

																				
	 	  	 	  	 	  	Estimated Future Payouts Under
Non-Equity Incentive Plan Awards	  	All Other Stock
Awards:
Number of
Stock Units (#)	  	Base Price of
Stock
Awards ($ /
unit)	  	Grant Date
of
Stock
Awards ($)
(2)
	 Name (1)
	  	Grant
Date	  	Approval
Date	  	Threshold ($)	  	Target
($)	  	Maximum
($)	  	  	  
	 Dennis G. Dracup
	  	—  	  	—  	  	—  	  	$	103,828	  	$	415,312	  	—  	  	—  	  	$	—  
	 Louis F. Provenzano
	  	7/31/08	  	9/1/08	  	—  	  	$	131,316	  	$	262,632	  	250,000	  	—  	  	$	65,000
	 Michael F. Schmidt
	  	2/4/08	  	2/4/08	  	—  	  	$	126,875	  	$	253,750	  	250,000	  	—  	  	$	35,000
	 Michael F. Schmidt
	  	7/31/08	  	9/1/08	  		  	$	126,875	  	$	253,750	  	50,000	  		  	$	13,000
	 James L. Moore Jr.
	  	—  	  	—  	  	—  	  	$	112,757	  	$	225,514	  	—  	  	—  	  	$	—  
	 Karen Gilhooly
	  	—  	  	—  	  	—  	  	$	105,442	  	$	210,884	  	—  	  	—  	  	$	—  
	 Solange Jerolimov
	  	—  	  	—  	  	—  	  	$	47,562	  	$	95,124	  	—  	  	—  	  	$	—  

  

	(1)	Mr. Dracup, Mr. Moore, Ms. Gilhooly and Ms. Jerolimov were not granted any stock awards during 2008. 

  

	(2)	The amounts of the stock awards shown in the table represent the expense reported for financial reporting purposes in 2008 for the fair value of the stock awards
granted in 2008 in accordance with SFAS 123(R). For additional information, refer to the “Share-Based Compensation” section of Note 7 of the “Notes to Consolidated Financial Statements.” 

 Incentive Unit Agreements 
 The named
executives are party to incentive unit agreements pursuant to which our ultimate parent, Holdings, issued Class C restricted stock units. The units will vest annually over a five year period on the anniversary date of the grant as follows;
(a) first anniversary 10% vested (b) second anniversary 30% vested (c) third anniversary 50% vested (d) fourth anniversary 75% vested and (e) fifth anniversary 100% vested. Vesting will accelerate upon a change of control of
Holdings and upon certain types of sale of the Company. Vesting will cease if the named executive ceases to be employed by Holdings or any of its subsidiaries. If the named executive ceases to be employed by Holdings or any of its subsidiaries,
Holdings will have the option to purchase all or any portion of the vested and/or the unvested Class C restricted stock units. The aggregate purchase price for all unvested units is $1.00, and the purchase price for each vested unit will be the fair
market value for such unit as of the date of termination. If, however, we terminate the named executives employment for cause, the aggregate purchase price for all vested units will be $1.00. Holdings right to repurchase a named executives units
will terminate upon a “change of control” (as such term is defined in the incentive share unit agreement), provided that the named executive is employed by Holdings or any of its subsidiaries at the time of the “change of
control.” 
  

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 Outstanding Equity Awards at 2008 Year-End 
 The following table sets forth for each of the named executive officers information concerning outstanding stock units as of December 31, 2008.

 2008 OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END TABLE - STOCK AWARDS 
  

												
	 Name
	  	Number of Restricted
Stock Units That Have
Not Vested (#) (1)	 	 	Market Value of
Restricted Stock Units
That Have Not Vested
($) (7)
	  	Equity Incentive
Plan Awards;
Number of
Unearned Stock
Units That Have
Not Vested (#)
	  	Equity Incentive
Plan Awards;
Market Value of
Unearned Stock
Units That Have
Not
Vested ($)
	 Dennis G. Dracup
	  	4,309,091	 (2) 	 	$	1,120,364	  	—  	  	$	—  
	 Louis F. Provenzano
	  	1,300,000	 (3) 	 	$	338,000	  	—  	  	$	—  
	 Michael F. Schmidt
	  	750,000	 (4) 	 	$	195,000	  	—  	  	$	—  
	 James L. Moore Jr.
	  	247,787	 (5) 	 	$	64,425	  	—  	  	$	—  
	 Karen Gihooly
	  	480,000	 (6) 	 	$	124,800	  	—  	  	$	—  
	 Solange Jerolimov
	  	—  	  	 	$	—  	  	—  	  	$	—  

  

	(1)	Unvested as of December 31, 2008. 

  

	(2)	Represent Holdings Class C restricted stock units, which vest as follows: 3/1/09 - 400,000; 7/1/09 - 2,909,091; 3/1/10 - 500,000; 3/1/11 - 500,000.

  

	(3)	Represent Holdings Class C restricted stock units, which vest as follows: 3/1/09 - 40,000; 7/1/09 - 125,000; 9/1/09 - 75,000; 12/1/09 - 160,000; 3/1/10 - 50,000; 9/1/10
- 100,000; 12/1/10 - 200,000; 3/1/11 - 50,000; 9/1/11 - 112,500; 12/1/11 - 200,000; 9/1/12 - 125,000; 9/1/13 - 62,500. 

  

	(4)	Represent Holdings Class C restricted stock units, which vest as follows: 2/1/09 - 25,000; 9/1/09 - 105,000; 2/1/10 - 50,000; 9/1/10 - 110,000; 2/1/11 - 50,000; 9/1/11
- 135,000; 2/1/12 - 62,500; 9/1/12 - 137,500; 2/1/13 - 62,500; 9/1/13 - 12,500. 

  

	(5)	Represent Holdings Class C restricted stock units, which vest as follows: 3/1/09 - 15,000; 7/1/09 - 195,287; 3/1/10 - 18,750; and 3/1/11 - 18,750.

  

	(6)	Represent Holdings Class C restricted stock units, which vest as follows: 9/1/09 - 25,000; 12/1/09 - 105,000; 9/1/10 - 25,000; 12/1/10 - 131,250; 9/1/11 - 31,250;
12/1/11 - 131,250; 9/1/12 - 31,250. 

  

	(7)	The Company determines the fair value of its Holdings Class C restricted stock units from the probability-weighted expected return method. Under this method, the value
of an enterprise’s common stock is estimated from an analysis of the future values for the Company assuming various possible future liquidity events. 

  

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Table of Contents

 2008 Stock Vested Table 
 The following table sets forth for each of the named executive officers certain information concerning stock units vested during the fiscal year 2008. 
 2008 RESTRICTED STOCK UNIT VESTED TABLE - STOCK AWARDS 
  

						
	 Name
	  	Number of Restricted
Stock Units Vested (1)	  	Value Realized on
Vesting ($)
	 Dennis G. Dracup
	  	3,309,091	  	$	463,273
	 Louis F. Provenzano
	  	350,000	  	$	71,200
	 Michael F. Schmidt
	  	50,000	  	$	13,000
	 James L. Moore Jr.
	  	210,287	  	$	29,440
	 Karen Gihooly
	  	117,500	  	$	30,550
	 Solange Jerolimov
	  	7,500	  	$	1,050

  

	(1)	Represents Holdings Class C restricted stock units which vested during the fiscal year 2008. 

 Compensation of Directors 
 Directors who
are officers of, or employed by, the Company or any of its subsidiaries do not receive additional compensation for service on the board of directors or its committees. In addition, members of the Compensation Committee do not receive additional
compensation for service on the committee because of their affiliation with the principal equity holder of the Company. 
  

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Table of Contents

	ITEM 12:	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT 

 Our ultimate parent, Language Line Holdings, LLC (“Holdings”) indirectly owns 100% of our capital stock. The following table sets forth certain information with respect to the beneficial
ownership of Holdings equity interests as of December 31, 2008, by (i) each person or entity who owns of record or beneficially 5% or more of any class of Holdings voting securities; (ii) each named executive officer and director of
Language Line, Inc.; and (iii) all of the directors and named executive officers of Language Line, Inc. as a group. Except as noted below, the address for each of the directors and named executive officers is c/o Language Line, Inc., 1 Lower
Ragsdale Drive, Monterey, California 93940. 
  

						
	 Name and Address of Beneficial Holder(1)
	  	Number of Voting
Equity Interests
Beneficially Owned	  	Percentage of
Total Voting Equity
Interests Outstanding	 
	 Principal Equityholders:
	  		  		
	 ABRY Partners IV, L.P. (1) (2) (3)
	  	116,597,073	  	83.5	% 
	 ABRY Mezzanine Partners, L.P. (1) (4)
	  	6,062,435	  	4.3	% 
	 Executive Officers and Directors:
	  		  		
	 Dennis G. Dracup
	  	2,277,778	  	1.6	% 
	 Louis F. Provenzano
	  	—  	  	—  	  
	 Michael F. Schmidt
	  	—  	  	—  	  
	 James L. Moore Jr.
	  	650,000	  	*	  
	 Yung-Chung Heh
	  	118,208	  	*	  
	 Jeffrey M. Johnson
	  	—  	  	—  	  
	 Karen Gilhooly
	  	—  	  	—  	  
	 Peggy Koenig (6)
	  	—  	  	—  	  
	 C.J. Brucato (5)
	  	—  	  	—  	  
	 Azra Kanji
	  	—  	  	—  	  
	 All Executive Officers & Directors as a group (10 persons)
	  	3,045,986	  	2.2	% 

  

	*	Less than 1% 

  

	(1)	“Beneficial ownership” generally means any person who, directly or indirectly, has or shares voting or investment power with respect to a security or has the
right to acquire such power within 60 days. Unless otherwise indicated, we believe that each holder has sole voting and investment power with regard to the equity interests listed as beneficially owned. 

  

	(2)	Royce Yudkoff exercises voting and investment control of the equity interests held by ABRY Partners IV, L.P. and ABRY Mezzanine Partners, L.P. The address of both is
111 Huntington Avenue, 30th Floor, Boston, MA 02199. 

  

	(3)	Royce Yudkoff is the sole member of ABRY Capital Partners, LLC which is the sole general partner of ABRY Capital Partners, L.P. which is the sole general partner of
ABRY Partners IV, L.P. 

  

	(4)	Royce Yudkoff is the sole member of ABRY Mezzanine Holdings, LLC which is the sole general partner of ABRY Mezzanine Investors, L.P. which is the sole general partner
of ABRY Mezzanine Partners, L.P. 

  

	(5)	Mr. Brucato is a limited partner of ABRY Capital Partners, L.P., the sole general partner of ABRY Partners IV, L.P., and ABRY Mezzanine Investors, L.P., the sole
general partner of ABRY Mezzanine Partners, L.P. and disclaims beneficial ownership of any equity interests held by either entity. Mr. Brucato’s address is c/o ABRY Partners IV, L.P., 111 Huntington Avenue, 30th Floor, Boston, MA 02199.

  

	(6)	Ms. Koenig is a limited partner of ABRY Capital Partners, L.P., the sole general partner of ABRY Partners IV, L.P., and ABRY Mezzanine Investors, L.P., the sole
general partner of ABRY Mezzanine Partners, L.P. and disclaims beneficial ownership of any equity interests held by either entity. Ms. Koenig’s address is c/o ABRY Partners IV, L.P., 111 Huntington Avenue, 30th Floor, Boston, MA 02199.

  

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	ITEM 13:	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 

 Members Agreement 
 In connection with the Merger, the members of Holdings entered into a
Members Agreement. Pursuant to the Members Agreement, such members agreed to vote their equity interests in Holdings so that the following directors are elected to the board of managers of Holdings: (i) three directors designated by ABRY
Partners IV, L.P., (ii) the then current chief executive officer of Holdings, who shall initially be (and currently is) Dennis G. Dracup and (iii) the then current chief financial officer of Holdings, who currently is Michael F. Schmidt.
The Members Agreement also contains: 
  

	 	•	 	 “tag-along” sale rights exercisable by all investors in the event of sales of equity interests by ABRY Partners, LLC to unaffiliated third
parties; 

  

	 	•	 	 “drag-along” sale rights exercisable by the board of managers of Holdings and holders of a majority of the then outstanding voting equity
interests in the event of an Approved Sale, as defined in the Members Agreement; 

  

	 	•	 	 preemptive rights; and 

  

	 	•	 	 restrictions on transfers of membership interests by management and other key employees absent written authorization of the Board of Directors, except
in certain circumstances. 

 In 2007, concurrent with the resignation of the Chief Financial Officer, Jeffrey Grace,
Mr. Schmidt was appointed the Company’s new Chief Financial Officer, and also replaced Mr. Grace’s director role. 
 The
voting restrictions and tag-along, drag-along and transfer restrictions will terminate upon consummation of the first to occur of a Qualified Public Offering, as defined in the Members Agreement, or an Approved Sale. 
 Indemnification 
 Holdings’ Amended and
Restated Limited Liability Company Agreement, dated as of June 11, 2004, provides for indemnification of directors and officers, including advancement of reasonable attorney’s fees and other expenses, in connection with all claims,
liabilities and expenses arising out of the management of Holdings affairs. Such indemnification obligations are limited to the extent that Holdings assets are sufficient to cover such obligations. Holdings carries directors and officers insurance
that covers such exposure for indemnification up to certain limits. While Holdings may be subject to various proceedings in the ordinary course of business that involve claims against directors and officers, we believe that such claims are routine
in nature and incidental to the conduct of Holdings business. None of such claims, if determined adversely against such directors and officers, would have a material adverse effect on Holdings consolidated financial condition or results of
operations. As of the closing of the Merger, Holdings had not accrued any amounts to cover indemnification obligations arising from such claims. 
 Registration Rights Agreement 
 In connection with the Merger, the members of Language Line Holdings, LLC entered into a
Registration Rights Agreement. Pursuant to the Registration Rights Agreement, the holders of a majority of the Investor Registrable Securities, as defined therein, have the ability to cause us to register securities of the Company held by parties to
the Registration Rights Agreement and to participate in registrations by us of our Registrable Securities, as defined in the Registration Rights Agreement. All holders of Registrable Securities are subject to customary lock-up arrangements in
connection with public offerings. 
 Reimbursement Agreement 
 In connection with the Merger, we entered into a Reimbursement Agreement. Pursuant to the Reimbursement Agreement, we agreed to reimburse ABRY for all out-of-pocket expenses incurred in connection with
the Merger and related transactions or their ownership of equity interests of Language Line Holdings, LLC. 
  

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 Transactions 
 In January 2008, the Company’s ultimate parent, Language Line Holdings, LLC completed its acquisition of Coto Holdings, LLC (“Coto”), a previously unaffiliated company. As part of an
affiliate and intercompany services agreement executed between the Company, its parent and Coto, the Company is to provide certain management, interpretation and other defined services to Coto. 
 As consideration for these management services, Coto is charged a management fee by the Company equal to $500,000 per quarter. Management fees earned by the
Company for the year ended December 31, 2008, included in revenues in the accompanying statements of operations, totaled $1,945,000. 
 Additionally, Coto is charged a fee to reimburse the Company for costs it incurs for providing interpretation services, certain of their equipment and other miscellaneous costs. Reimbursable charges to Coto for interpreters and equipment,
netted against cost of revenues for the year ended December 31, 2008 totaled $13,127,000. Finally, reimbursable charges to Coto for other miscellaneous (indirect) costs netted against selling, general and administrative expenses totaled
$870,000 for the year ended December 31, 2008. At December 31, 2008, Coto owed the Company an aggregate of $2,387,000 related to these services and charges. 
 The Company believes that the terms and nature of the transactions are no less favorable than those available with unrelated parties. 
 Board of Directors 
 The board is currently composed of six directors, none of whom is
likely to qualify as an independent director based on the definition of independent director set forth in Rule 4200(a)(15) of the Nasdaq Marketplace rules. Because affiliates of ABRY own more than 50% of the voting common stock of
Holdings, we are a “controlled company” within the meaning of Rule 4350(c)(5) of the Nasdaq Marketplace rules, which qualifies us for exemptions from certain corporate governance rules of The Nasdaq Stock Market LLC, including the
requirement that the board of directors be composed of a majority of independent directors. 
  

	ITEM 14:	PRINCIPAL ACCOUNTANT FEES AND SERVICES 

 During the fiscal years ended December 31, 2008 and December 31, 2007, fees for services provided by PricewaterhouseCoopers LLP were as follows (in thousands): 
  

							
	 	  	Year Ended
December 31,
	 	  	2008	  	2007
	 Audit Fees
	  	$	687	  	$	863
	 Tax Fees
	  	 	380	  	 	290
		  	 	 	  	 	 
	 Total
	  	$	1,067	  	$	1,153
		  	 	 	  	 	 

 “Audit Fees” consisted of fees billed for services rendered
for the audit of our Company’s annual financial statements, review of financial statements included in our Company’s quarterly reports on Form 10-Q, and other services normally provided in connection with statutory and regulatory filings.
“Tax Fees” consisted of fees billed for tax payment planning and tax preparation services. 
  

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 Audit Committee Pre-Approval Policy 
 Our Board has a separately-designated standing Audit Committee. The members of the Audit Committee are C.J. Brucato, Peggy Koenig and Azra Kanji. Prior to engaging our principal accountants to render
audit or non-audit services, such as tax related services, the engagement as well as charges for such services is approved by our Audit Committee. 
  

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 PART IV 
  

	ITEM 15:	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 

 (a) The following documents are filed as part of this Annual Report on Form 10-K. 
  

	1.	Consolidated Financial Statements: 

  

			
	 	  	Page
	 Report of Independent Registered Public Accounting Firm
	  	42
	 Consolidated Balance Sheets at December 31, 2008 and 2007
	  	43
	 Consolidated Statements of Operations for the years ended December 31, 2008, 2007, and
2006.
	  	44
	 Consolidated Statements of Stockholders’ Equity (Deficit) and Comprehensive Income (loss) for the years ended
 December 31, 2008, 2007, and 2006.
	  	45
	 Consolidated Statements of Cash Flows for the years ended December 31, 2008, 2007, and
2006.
	  	46
	 Notes to Consolidated Financial Statements
	  	47

  

	2.	Financial Statement Schedule: 

  

			
	 	  	Page
	 Schedule II – Valuation and Qualifying Accounts 
	  	65

 All other schedules have been omitted
because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto. 
  

	3.	Exhibits 

  

			
		
	   3.1  
	  	Certification of Incorporation of Language Line Holdings, Inc. (f/k/a Language Line Acquisition, Inc.).*
		
	   3.2  
	  	By-Laws of Language Line Holdings, Inc. (f/k/a Language Line Acquisition, Inc.).*
		
	   4.1  
	  	Indenture, dated as of June 11, 2004 among Language Line Holdings, Inc. (f/k/a Language Line Acquisition, Inc.) and The bank of New York.*
		
	   4.2  
	  	Registration Rights Agreement, dated as of June 11, 2004, by and among Language Line Holdings, Inc. (f/k/a Language Line acquisition, Inc.), MLPFS and each other Initial Purchases
set forth on Schedule B. *
		
	   4.3  
	  	Joinder Agreement, dated June 11, 2004, among Language Line Holdings, Inc., Language Line, LLC, Envok, LLC, On Line Interpreters, Inc., Language Line Services, Inc., Language Line
Dominican Republic LLC, Language Line Panama, LLC and Language Line Costa Rica, LLC. *
		
	   4.4  
	  	First Supplemental Indenture, dated as of June 11, 2004, among Language Line, Inc., Language Line, LLC, Envok, LLC, On Line Interpreters, Inc., Language Line Services, Inc.,
Language Line Dominican Republic LLC, Language Line Panama, LLC, Language Line Costa Rica, LLC, Language Line Holdings, Inc. and the Bank of New York. *
		
	   4.5  
	  	Form of Note (included in Exhibit 4.1). *
		
	 10.1  
	  	Agreement and Plan of Merger, dated April 14, 2004 by and among Language Line Holdings, Inc., Language Line Acquisition, Inc. and Language, Inc. *
		
	 10.2  
	  	Preferred Securities Purchase Agreement, dated as of June 11, 2004 by and among Language Line Holdings, LLC and the purchasers named in the Purchaser Schedule. *
		
	 10.3  
	  	Registration Rights Agreement, dated June 11, 2004, by and among Language Line Holdings, LLC and the members and Language Line Holdings, LLC’s members. *
		
	 10.4  
	  	Executive Employment Agreement, dated June 11, 2004, by and between Language Line, Inc and Dennis Dracup. *

  

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	 10.5  
	  	Executive Employment Agreement, dated June 11, 2004, by and between Language Line, Inc. and Matthew Gibbs. *
		
	 10.6  
	  	Non-competition, Non-solicitation Agreement, dated June 11, 2004, by and among Language Line Acquisition, Inc, Language Line, Inc. and Dennis Dracup. *
		
	 10.7  
	  	Non-competition, Non-solicitation Agreement, dated June 11, 2004, by and among Language Line Acquisition, Inc, Language Line, Inc. and Matthew Gibbs. *
		
	 10.8  
	  	Incentive Securities Agreement, dated June 11, 2004, by and among Language Line Holdings, LLC, Dennis G. Dracup Declaration of Trust and Christine L. Dracup Declaration of Trust. *

		
	 10.9  
	  	Incentive Securities Agreement, dated June 11, 2004, by and between Language Line Holdings, LLC and Matthew Gibbs. *
		
	 10.10
	  	Incentive Units Agreement, dated July 14, 2004, by and between Language Line Holdings, LLC and Jeanne Anderson. *
		
	 10.11
	  	Incentive Units Agreement, dated July 14, 2004, by and between Language Line Holdings, LLC and Dennis Bailey. *
		
	 10.12
	  	Incentive Units Agreement, dated July 14, 2004, by and between Language Line Holdings, LLC and Phil Speciale. *
		
	 10.13
	  	Investor Securities Purchase Agreement, dated June 11, 2004, by and among Language Line Holdings, LLC and the persons listed on Schedule A. *
		
	 10.14
	  	Credit Agreement, dated as of June 11, 2004 as amended and restated on November 14, 2006, by and among Language Line, Inc., Language Line Acquisition, Inc., Merrill Lynch & Co.
and MLPFS. *
		
	 10.15
	  	Security Agreement, dated as of June 11, 2004, by and among Language Line, Inc., Language Line Holdings, Inc., the Subsidiary Guarantors party thereto and Merrill Lynch Capital
Corporation. *
		
	 10.16
	  	Guarantee, dated June 11, 2004 by and among Language Line Holdings, Inc. in favor of Merrill Lynch Capital Corporation.*
		
	 10.17
	  	Trademark Security Agreement, dated as of June 11, 2004 by and among Language Line Inc., each of the Guarantors listed on Schedule II thereto and in favor of Merrill Lynch Capital
Corporation. *
		
	 10.18
	  	Amended and Restated Promissory Note in the principal amount of $100,000 from Matthew T. Gibbs II and Kathy Gibbs in favor of Language Line, Inc., dated June 11, 2004.
*
		
	 10.19
	  	Amended and Restated Promissory Note in the principal amount of $995,000 from Dennis G. Dracup in favor of Language Line, Inc., dated June 11, 2004. *
		
	 10.20
	  	Amendment to the Deed of Trust and Assignment of Rents, dated June 11, 2004, by and between Dennis G. Dracup and Christine L. Dracup as “Trustor,” in favor of Old Republic
Title Company as trustee in trust for Language Line, Inc. *
		
	 10.21
	  	Amended and Restated Unit Pledge Agreement, dated June 1, 2004 by and between Language Line, Inc., Matthew T. Gibbs, II and Kathy Gibbs. *
		
	 10.22
	  	Intercompany Services Agreement, dated January 19, 2006 between Language Line, LLC and Language Line Ltd. ***
		
	10.23	  	Release between Language Line, Inc. and Matthew Gibbs dated December 8, 2006 (incorporated by reference to the Company’s Annual Report on Form 10-K, filed on
December 11, 2006).
		
	10.24	  	Repurchase Notice by Language Line Holdings, LLC to Matthew Gibbs dated December 11, 2006 (incorporated by reference to the Company’s Annual Report on Form 10-K, filed on
December 11, 2006).
		
	10.25	  	Offer Letter to Jeffrey Grace dated December 8, 2006 (incorporated by reference to the Company’s Annual Report on Form 10-K, filed on December 11, 2006).
		
	10.26	  	Amendment to Executive Employment Agreement, dated December 23, 2008, by and between Language Line, Inc. and Dennis Dracup (incorporated by reference from the Company’s current
report on Form 8-K, filed on December 29, 2008).
		
	14.1  	  	Code of Business Conduct and Ethics. ***
		
	21.1  	  	Subsidiaries of Language Line Holdings, Inc. *
		
	31.1  	  	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. **
		
	31.2  	  	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. **
		
	32.1  	  	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
		
	32.2  	  	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **

  

	*	Incorporated by reference to the Registration Statement on Form S-4 (File No. 333-118754). 

  

	**	Filed herewith. 

  

	***	Incorporated by reference to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005. 

  

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 Report of Independent Registered Public Accounting Firm

 To the Board of Directors and Stockholders of Language Line Holdings, Inc.: 
 In our opinion, the consolidated financial statements listed in the index appearing under Item 15 (a) (1) present fairly, in all material
respects, the financial position of Language Line Holdings, Inc. and its subsidiaries at December 31, 2008 and 2007, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2008
in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the index appearing in Item 15 (a)(2) presents fairly, in all material
respects, the information set forth therein when read in conjunction with the related consolidated financial statements. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion. 
 As discussed in Note 5 to the consolidated financial statements, in 2007 the Company changed the
manner in which it accounts for uncertain tax positions. 
 PricewaterhouseCoopers LLP 
 San Jose, CA 
 March 25, 2009 
  

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 LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Balance Sheets 
 (In thousands, except
share and par value amounts) 
  

									
	 	  	December 31,	 
	 	  	2008	 	 	2007	 
	 	  	 	 	 	(Revised)	 
	 Assets
	  				 			
	 Current assets:
	  				 			
	 Cash and cash equivalents
	  	$	15,046	  	 	$	13,898	  
	 Accounts receivable - net of allowance for doubtful accounts of $1,323 and $1,300, respectively
	  	 	33,394	  	 	 	28,696	  
	 Prepaid expenses and other current assets
	  	 	5,911	  	 	 	1,965	  
	 Income taxes receivable
	  	 	2,105	  	 	 	1,427	  
	 Due from Coto Holdings, LLC (Note 9)
	  	 	2,387	  	 	 	—  	  
	 Deferred taxes on income
	  	 	2,971	  	 	 	1,382	  
		  	 	 	 	 	 	 	 
	 Total current assets
	  	 	61,814	  	 	 	47,368	  
	 Property and equipment, net
	  	 	8,547	  	 	 	5,913	  
	 Goodwill
	  	 	408,793	  	 	 	408,793	  
	 Intangible assets - net of accumulated amortization of $147,073 and $120,053, respectively
	  	 	313,290	  	 	 	340,222	  
	 Deferred financing costs - net of accumulated amortization of $10,929 and $8,243, respectively
	  	 	7,880	  	 	 	10,566	  
	 Other assets
	  	 	244	  	 	 	241	  
		  	 	 	 	 	 	 	 
	 Total assets
	  	$	800,568	  	 	$	813,103	  
		  	 	 	 	 	 	 	 
	 Liabilities and Stockholders’ Equity
	  				 			
	 Current liabilities
	  				 			
	 Accounts payable
	  	$	1,866	  	 	$	1,603	  
	 Accrued interest
	  	 	791	  	 	 	2,339	  
	 Accrued compensation and interpreter costs
	  	 	7,059	  	 	 	5,930	  
	 Other accrued liabilities
	  	 	4,265	  	 	 	2,339	  
	 Dividends payable
	  	 	—  	  	 	 	1,000	  
	 Due to Language Line Holdings, II Inc. (Notes 5 and 9)
	  	 	2,229	  	 	 	1,727	  
	 Current portion of long-term debt
	  	 	16,339	  	 	 	17,730	  
		  	 	 	 	 	 	 	 
	 Total current liabilities
	  	 	32,549	  	 	 	32,668	  
	 Other Liabilities
	  	 	737	  	 	 	3,463	  
	 Long-term debt
	  	 	185,336	  	 	 	201,451	  
	 Senior subordinated notes
	  	 	162,699	  	 	 	162,185	  
	 Senior discount notes
	  	 	102,402	  	 	 	89,338	  
	 Deferred taxes on income
	  	 	131,965	  	 	 	140,126	  
		  	 	 	 	 	 	 	 
	 Total liabilities
	  	 	615,688	  	 	 	629,231	  
		  	 	 	 	 	 	 	 
	 Commitments and contingencies (Notes 8 and 10)
	  				 			
	 Stockholders’ equity
	  				 			
	 Common stock, $.01 par value per share and 1,000 shares authorized, issued and outstanding
	  	 	—  	  	 	 	—  	  
	 Additional paid-in capital
	  	 	189,882	  	 	 	206,538	  
	 Accumulated deficit
	  	 	(5,002	) 	 	 	(22,666	) 
		  	 	 	 	 	 	 	 
	 Total stockholders’ equity
	  	 	184,880	  	 	 	183,872	  
		  	 	 	 	 	 	 	 
	 Total liabilities and stockholders’ equity
	  	$	800,568	  	 	$	813,103	  
		  	 	 	 	 	 	 	 

 See notes to consolidated financial statements. 
  

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 LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statements of Operations 
 (In
thousands) 
  

											
	 	  	Year Ended
December 31, 2008	  	Year Ended
December 31, 2007	  	Year Ended
December 31, 2006	 
	 Revenues
	  	$	212,644	  	$	183,188	  	$	163,294	  
	 Costs of services
	  	 	69,007	  	 	64,767	  	 	57,916	  
	 Other expenses:
	  			  			  			
	 Selling, general and administrative
	  	 	38,881	  	 	32,410	  	 	28,807	  
	 Interest
	  	 	48,913	  	 	52,910	  	 	54,161	  
	 Depreciation and amortization
	  	 	29,398	  	 	31,290	  	 	36,409	  
		  	 	 	  	 	 	  	 	 	 
	 Total other expenses
	  	 	117,192	  	 	116,610	  	 	119,377	  
		  	 	 	  	 	 	  	 	 	 
	 Other income:
	  			  			  			
	 Interest
	  	 	355	  	 	915	  	 	798	  
	 Escrow settlement
	  	 	—  	  	 	—  	  	 	795	  
	 Other
	  	 	698	  	 	313	  	 	—  	  
		  	 	 	  	 	 	  	 	 	 
	 Total other income
	  	 	1,053	  	 	1,228	  	 	1,593	  
		  	 	 	  	 	 	  	 	 	 
	 Income (loss) before income taxes
	  	 	27,498	  	 	3,039	  	 	(12,406	) 
	 Income tax provision (benefit)
	  	 	9,834	  	 	2,048	  	 	(2,895	) 
		  	 	 	  	 	 	  	 	 	 
	 Net income (loss)
	  	$	17,664	  	$	991	  	$	(9,511	) 
		  	 	 	  	 	 	  	 	 	 

 See notes to consolidated financial statements. 
  

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 LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statements of Stockholders’ Equity (Deficit) and Comprehensive Income (Loss) 
 (In thousands except share amounts) 
  

																										
	 	  	Common Stock	  	Additional
Paid-in
Capital	 	 	Accumulated
Deficit	 	 	Deferred
Stock
Compensation	 	 	Total
Stockholders’
Equity	 	 	Comprehensive
Income (Loss)	 
	 	  	Shares	  	Amount	  	 	 	 	 
	 BALANCES, January 1, 2006
	  	1,000	  	$	—  	  	$	228,015	  	 	$	(13,343	) 	 	$	(1,252	) 	 	$	213,420	  	 			
	 Repurchase of Holding’s class C common shares from employees
	  	—  	  	 	—  	  	 	(41	) 	 	 	—  	  	 	 	—  	  	 	 	(41	) 	 			
	 Stock based compensation expense
	  	—  	  	 	—  	  	 	415	  	 	 	—  	  	 	 	—  	  	 	 	415	  	 			
	 Adoption of SFAS 123R
	  	—  	  	 	—  	  	 	(1,252	) 	 	 	—  	  	 	 	1,252	  	 	 	—  	  	 			
	 Net Loss
	  	—  	  	 	—  	  	 	—  	  	 	 	(9,511	) 	 	 	—  	  	 	 	(9,511	) 	 	$	(9,511	) 
		  	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 BALANCES, December 31, 2006
	  	1,000	  	 	—  	  	 	227,137	  	 	 	(22,854	) 	 	 	—  	  	 	 	204,283	  	 			
	 Adoption of FIN 48
	  		  	 	—  	  				 	 	(803	) 	 				 	 	(803	) 	 			
	 Dividend distribution to Parent
	  	—  	  	 	—  	  	 	(21,000	) 	 	 	—  	  	 	 	—  	  	 	 	(21,000	) 	 			
	 Repurchase of Holding’s class C common shares from employees
	  	—  	  	 	—  	  	 	(15	) 	 	 	—  	  	 	 	—  	  	 	 	(15	) 	 			
	 Stock based compensation expense
	  	—  	  	 	—  	  	 	416	  	 	 	—  	  	 				 	 	416	  	 			
	 Net income
	  	—  	  	 	—  	  	 	—  	  	 	 	991	  	 	 	—  	  	 	 	991	  	 	$	991	  
		  	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 BALANCES, December 31, 2007
	  	1,000	  	 	—  	  	 	206,538	  	 	 	(22,666	) 	 	 	—  	  	 	 	183,872	  	 			
	 Dividend distribution to Parent
	  	—  	  	 	—  	  	 	(17,069	) 	 	 	—  	  	 	 	—  	  	 	 	(17,069	) 	 			
	 Repurchase of Holding’s class C common shares from employees
	  	—  	  	 	—  	  	 	(26	) 	 	 	—  	  	 	 	—  	  	 	 	(26	) 	 			
	 Stock based compensation expense
	  	—  	  	 	—  	  	 	439	  	 	 	—  	  	 	 	—  	  	 	 	439	  	 			
	 Net income
	  	—  	  	 	—  	  	 	—  	  	 	 	17,664	  	 	 	—  	  	 	 	17,664	  	 	$	17,664	  
		  	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 BALANCES, December 31, 2008
	  	1,000	  	$	—  	  	$	189,882	  	 	$	(5,002	) 	 	$	—  	  	 	$	184,880	  	 			
		  	 	  	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 			

 See notes to consolidated financial statements. 
  

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 LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statements of Cash Flows 
 (In
thousands) 
  

													
	 	  	Year Ended
December 31, 2008	 	 	Year Ended
December 31, 2007	 	 	Year Ended
December 31, 2006	 
	 	  	 	 	 	(Revised)	 	 	(Revised)	 
	 Cash flows from operating activities:
	  				 				 			
	 Net income (loss)
	  	$	17,664	  	 	$	991	  	 	$	(9,511	) 
	 Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	  				 				 			
	 Depreciation and amortization
	  	 	29,398	  	 	 	31,290	  	 	 	36,409	  
	 Amortization of deferred financing costs
	  	 	2,686	  	 	 	2,687	  	 	 	2,244	  
	 Deferred taxes on income
	  	 	(9,750	) 	 	 	(9,040	) 	 	 	(10,632	) 
	 Stock based compensation expense
	  	 	439	  	 	 	416	  	 	 	415	  
	 Loss on disposal of property
	  	 	—  	  	 	 	3	  	 	 	—  	  
	 Accretion of discount on long-term debt
	  	 	13,579	  	 	 	11,858	  	 	 	10,354	  
	 Effect of changes in operating assets and liabilities:
	  				 				 			
	 Accounts receivable
	  	 	(4,698	) 	 	 	(4,375	) 	 	 	(1,992	) 
	 Prepaid expenses and other current assets
	  	 	(3,945	) 	 	 	(504	) 	 	 	1,220	  
	 Due from Coto Holdings, LLC
	  	 	(2,387	) 	 	 	—  	  	 	 	—  	  
	 Due to Language Line Holdings, II, Inc.
	  	 	502	  	 	 	919	  	 	 	560	  
	 Other assets
	  	 	(4	) 	 	 	124	  	 	 	(269	) 
	 Accounts payable
	  	 	263	  	 	 	1,088	  	 	 	1,143	  
	 Income taxes receivable / payable
	  	 	(678	) 	 	 	(856	) 	 	 	107	  
	 Accrued interest and other liabilities
	  	 	(2,293	) 	 	 	(817	) 	 	 	85	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Net cash provided by operating activities
	  	 	40,776	  	 	 	33,784	  	 	 	30,133	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Cash flows from investing activities:
	  				 				 			
	 Purchases of property and equipment
	  	 	(3,939	) 	 	 	(2,681	) 	 	 	(2,885	) 
	 Acquisition of intangible asset
	  	 	(88	) 	 	 	(175	) 	 	 	—  	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Net cash used in investing activities
	  	 	(4,027	) 	 	 	(2,856	) 	 	 	(2,885	) 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Cash flows from financing activities:
	  				 				 			
	 Long-term debt repayments
	  	 	(17,506	) 	 	 	(17,251	) 	 	 	(18,637	) 
	 Revolving line of credit borrowings
	  	 	—  	  	 	 	11,000	  	 	 	—  	  
	 Revolving line of credit repayments
	  	 	—  	  	 	 	(11,000	) 	 	 	—  	  
	 Loan fees and other financing costs
	  	 	—  	  	 	 	—  	  	 	 	(2,324	) 
	 Repurchase of restricted stock units
	  	 	(26	) 	 	 	(15	) 	 	 	(42	) 
	 Dividend paid to parent company
	  	 	(18,069	) 	 	 	(20,000	) 	 	 	—  	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Net cash used in financing activities
	  	 	(35,601	) 	 	 	(37,266	) 	 	 	(21,003	) 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Net increase (decrease) in cash and cash equivalents
	  	 	1,148	  	 	 	(6,338	) 	 	 	6,245	  
	 Cash and cash equivalents - beginning of period
	  	 	13,898	  	 	 	20,236	  	 	 	13,991	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Cash and cash equivalents - end of period
	  	$	15,046	  	 	$	13,898	  	 	$	20,236	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Additional cash flow information:
	  				 				 			
	 Cash paid for interest
	  	$	33,939	  	 	$	39,312	  	 	$	42,611	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Cash paid for income taxes
	  	$	22,110	  	 	$	12,072	  	 	$	7,070	  
		  	 	 	 	 	 	 	 	 	 	 	 

 See notes to consolidated financial statements. 
  

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 Notes to Consolidated Financial Statements 
 1. Organization and Summary of Significant Accounting Policies 
 Organization—Language Line Holdings, Inc. (the “Predecessor”) was a Delaware corporation formed in December 1999 as a holding company for Language Line, LLC (“LLC”)
and its subsidiaries. LLC was incorporated during February 1999 as a Delaware limited liability company. The Predecessor was acquired on June 11, 2004 by Language Line, Inc. (“LLI”) in a transaction accounted for under the purchase
method of accounting (the “Merger”). LLI, a wholly-owned subsidiary of Language Line Acquisition, Inc., is a Delaware corporation formed in April 2004. LLI had no significant operations prior to the acquisition of Predecessor. Subsequent
to the Merger, Language Line Acquisition, Inc., an indirect wholly-owned subsidiary of Language Line Holdings, LLC (“Holdings” or “Parent”), was renamed Language Line Holdings, Inc. (“LLHI”, the “Registrant”,
or the “Company”). 
 The Company’s primary revenue source is to provide over-the-phone interpretation services, from English
into over 170 different languages, 24 hours a day, seven days a week. Such services are provided mainly to the non-English speaking business population in the U.S. and Canada covering various industries such as insurance, healthcare, financial,
utilities and government, providing a cost effective alternative to staffing in-house multilingual capabilities or using face-to-face interpretation. The Company also performs translation of written media for over 80 different languages. 

Principles of Consolidation—The consolidated financial statements include the accounts of LLHI, LLI, LLC and LLC’s wholly-owned
subsidiaries as of December 31, 2008 and December 31, 2007. All significant intercompany accounts and transactions have been eliminated in consolidation. 
 Fiscal Year—The Company’s fiscal year end is December 31. 
 Cash equivalents—Cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased. Typically, the cost of these investments has approximated fair
value. 
 Accrued compensation and interpreter costs—Accrued compensation and interpreter costs are current compensation
obligations due to internal employees and agency interpreters. This includes components of known costs due to agency interpreters as well as accrued estimates for internal employees and agency interpreters. 
 Reclassifications—Certain balance sheet amounts in our previously filed financial statements have been reclassified to conform to the
current period presentation, in particular those discussed in Note 5. 
 Concentration of Credit Risk—Financial instruments
which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We are exposed to credit risk in the event of default by the financial institutions where we hold our cash and by
any of our customers to the extent of accounts receivable we are owed, in amounts equal to the carrying value of these assets on the accompanying consolidated balance sheet. Risks associated with cash are mitigated by banking with creditworthy
institutions. Concentration of credit risk with respect to trade receivables is limited due to the significant number of customers and their geographic dispersion. During fiscal 2008, 2007 and 2006, no individual customer represented more than 10%
of revenues or accounts receivable. Accounts receivable are generally unsecured. 
 Allowance for Doubtful Accounts—The
Company maintains an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make payment. The allowance is determined based upon an evaluation of individual accounts, aging of the portfolio, issues raised by
customers that may suggest non-payment, historical experience and/or the current economic environment. We evaluate the adequacy of the allowance on a regular basis, modifying, as necessary, its assumptions, updating its record of historical
experience and adjusting reserves as appropriate. The Company classifies bad debt expense as selling, general and administrative expenses in the accompanying consolidated statement of operations. 
  

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 Property and equipment—Property and equipment is recorded at cost. Depreciation on assets
is computed using the straight-line method over the estimated useful lives of the assets. The useful life for property and equipment is within the following range: 
  

			
	 	  	 Useful Lives

	 Equipment
	  	4-5 years
	 Software
	  	3 years
	 Furniture and fixtures
	  	5 years
	 Leasehold improvements
	  	The shorter of useful life or initial term of lease

 As required by SOP 98-1 Accounting for the Costs of Computer Software Developed or Obtained for Internal Use, the Company capitalizes the costs for software developed in-house. Computer software
developed or obtained for internal use is amortized using the straight-line method over the estimated useful life of the software, generally three years. 
 Long Lived Assets including intangible assets—The Company follows Statement of Financial Accounting Standards (“SFAS”) No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. The Company has assessed the recoverability of long-lived assets, including intangible assets other than goodwill, by determining whether the carrying value of such assets will be recovered through undiscounted
future cash flows according to the guidance of SFAS No. 144. The Company assesses whether it will recognize the future benefit of long-lived assets including intangibles in accordance with the provisions of SFAS No. 144. For assets to be
held and used, including acquired intangibles, the Company initiates its review whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. 
 Factors we consider important which could trigger an impairment review include the following: 
  

	 	•	 	 significant negative industry or economic trends; 

  

	 	•	 	 significant loss of customers; 

  

	 	•	 	 significant changes in the manner of our use of the acquired assets or the strategy for our overall business. 

 Recoverability of an asset is measured by comparison of its carrying amount to the expected future undiscounted cash flows (without interest charges) that
the asset is expected to generate. Any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Significant management judgment is required in the forecasting of future operating results
which are used in the preparation of projected discounted cash flows and should different conditions prevail, material write downs of long-lived assets, including intangible assets, could occur. No impairment of intangible assets was recognized in
2008, 2007 or 2006. Other intangible assets are generally amortized on a straight-line basis over their estimated useful life which is based on historic experience and plans for utilization of the assets by the Company subsequent to the business
combination. 
  

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 Goodwill 
 We perform our annual impairment analysis of goodwill in the fourth quarter of each year according to the provisions of SFAS 142, Goodwill and Other Intangible Assets (“SFAS 142”). This
statement requires that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net
assets assigned to the reporting unit, goodwill is not impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we must
perform the second step of the impairment testing to determine the implied fair value of the reporting unit’s goodwill. The implied fair value of goodwill is calculated by deducting the fair value of all tangible and intangible assets of the
reporting unit, excluding goodwill, from the fair value of the reporting unit as determined in the first step. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the
difference. 
 We performed our annual valuation analysis of goodwill on December 31, 2008 in accordance with SFAS142 as stated above.
Consistent with prior years we have one reporting unit which is the same as our operating segment. 
 We determined the fair value of the
reporting unit based on a weighting of market and income approaches. Under the market approach, we estimated the fair value based on market multiples of EBIT and EBITDA. Under the income approach, we measured fair value of the reporting unit based
on a projected cash flow method using a discount rate determined by our management which is commensurate with the risk inherent in our current business model. Our discounted cash flow projections were based on our annual financial forecasts
developed internally by management for use in managing our business and through discussions with the independent valuation firm engaged by us. The significant assumptions of these forecasts included continued revenue growth over the next five years.
Given the current economic environment and the uncertainties regarding the impact on our business, there can be no assurance that the estimates and assumptions made for purposes of our goodwill impairment testing at December 31, 2008 will prove
to be accurate predictions of the future. If our assumptions regarding forecasted revenue or gross margin rates are not achieved, we may be required to record goodwill impairment charges in future periods, whether in connection with the next annual
impairment testing or prior to that, if any change constitutes a triggering event outside of the period when the annual goodwill impairment test is performed. It is not possible at this time to determine if any such future impairment charge would
result or, if it does, whether such charge would be material. We believe that the assumptions and rates used in our impairment test under SFAS142 are reasonable. However, they are judgmental, and variations in any of the assumptions or rates
could result in materially different calculations. Based on our valuation results, we determined that the fair value of our reporting unit continued to exceed its carrying value. Therefore, management determined that no goodwill impairment charge
was required as of December 31, 2008. 
 Deferred financing costs—The Company amortizes deferred financing costs using
the straight-line method which approximates the effective interest rate method over the terms of the related debt agreements and the corresponding amortization expense is included in interest expense on the accompanying consolidated statements of
operations. 
 Segment Information—The Company follows the provisions of SFAS No. 131, “Disclosures about Segments
of an Enterprise and Related Information, Financial Reporting for Segments of a Business.” This statement establishes standards for reporting information about operating segments, products and services, geographic areas and major customers in
annual and interim financial statements. The Company manages and operates its business as one operating segment. Operating results are regularly reviewed by the Company’s chief operating decision maker regarding decisions about the allocation
of resources and to assess performance. 
 Revenues—The Company recognizes revenue when the services have been performed and
all of the following four revenue recognition criteria have been met: 
  

	 	•	 	 Persuasive evidence of an arrangement exists, 

  

	 	•	 	 The service has been rendered, 

  

	 	•	 	 The price is fixed or determinable, and 

  

	 	•	 	 Collection is reasonably assured. 

  

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 Revenue from interpretation services are recognized as interpretation services are performed based on actual
time that is tracked for each call at the negotiated rate per minute for the customer. Revenue earned from the translation of written media is generally recognized at the time the finished product is delivered to the customer. 
 Foreign Currency—The functional currency of our operations located outside the U.S. is the U.S. Dollar. Transaction and remeasurement
gains and losses were not significant for the periods presented. The Company also perform services for Canadian and United Kingdom customers which are billed in local currencies. Transaction gains and losses are reported in the statement of
operations as they are incurred. During 2008, 2007 and 2006 such gains and losses were not significant and are included in selling, general and administrative expense. 
 Costs of services—These costs are primarily; (1) direct costs of personnel serving as interpreters and call agents and (2) telecommunications expenses for long-distance calls
related to providing service to customers. 
 Income Taxes—Income taxes are accounted for using an asset and liability
approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit
carry forwards measured by applying currently enacted tax laws. A valuation allowance is provided to reduce net deferred tax assets to an amount that is more likely than not to be realized. 
 Further, the Company accounts for uncertain tax positions in accordance with Financial Accounting Standards Board (“FASB”) Interpretation
No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”), which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. Accordingly, the Company reports a liability
for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. 
 Comprehensive
Income (Loss)—SFAS No. 130, Reporting Comprehensive Income (Loss), requires that the Company report comprehensive income (loss), which includes net income (loss) as well as other changes in assets and liabilities recorded
directly to equity, in its financial statements. There were no components of comprehensive income (loss) other than net income (loss) for all periods presented. 
 Stock-Based Compensation—The Company accounts for stock-based compensation in accordance with SFAS No. 123(R), “Share Based Payment”. Under SFAS 123(R), the
Company determines the fair value of its Holdings Class C restricted stock units from the probability-weighted expected return method. Under this method, the value of an enterprise’s common stock is estimated from an analysis of the future
values for the Company assuming various possible future liquidity events. SFAS 123(R) requires that the Company recognize compensation expense for only the portion of restricted stock units that are expected to vest, rather than recording
forfeitures when they occur, as previously permitted. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. 
 Fair Value of Financial Instruments—The carrying amount of cash, accounts receivable, accounts payable, accrued compensation and
interpreter costs and other accrued liabilities approximated fair value at December 31, 2008 and 2007. The fair value of debt instruments is disclosed in Note 4. 
 Use of Estimates in the Preparation of Financial Statements—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. Such management estimates include the
allowance for doubtful accounts receivables, the useful life of intangible assets, impairment of goodwill and intangible assets, income taxes, and claims and legal proceedings. Actual results could differ from those estimates. 
 Recently Issued Accounting Pronouncements—In February 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS
No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115” (“SFAS 159”). SFAS No. 159 permits an entity to elect
fair value as the initial and subsequent measurement attribute for many financial assets and liabilities. Entities electing the fair value option would be required to recognize changes in fair value in earnings. Entities electing the fair
value option are required to distinguish, 
  

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on the face of the statement of financial position, the fair value of assets and liabilities for which the fair value option has been elected and similar assets and liabilities measured using
another measurement attribute. SFAS 159 is effective for fiscal years beginning after November 15, 2007. The adjustment to reflect the difference between the fair value and the carrying amount would be accounted for as a
cumulative-effect adjustment to retained earnings as of the date of initial adoption. We elected not to adopt the fair value option for any financial assets and liabilities. 
 In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations” (“SFAS 141(R)”). SFAS 141(R) establishes principles and requirements for how an
acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired, liabilities assumed, and any noncontrolling interests in the acquiree, as well as the goodwill acquired. Significant changes
from current practice resulting from SFAS 141(R) include the expansion of the definitions of a “business” and a “business combination.” For all business combinations (whether partial, full or step acquisitions), the acquirer
will record 100% of all assets and liabilities of the acquired business, including goodwill, generally at their fair values; contingent consideration will be recognized at its fair value on the acquisition date and, for certain arrangements, changes
in fair value will be recognized in earnings until settlement; and acquisition-related transaction and restructuring costs will be expensed rather than treated as part of the cost of the acquisition. SFAS 141(R) also establishes disclosure
requirements to enable users to evaluate the nature and financial effects of the business combination. SFAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008. Earlier adoption is not permitted. SFAS 141(R) may have an impact on the Company’s consolidated financial statements when effective in the event a business combination occurs. The
nature and magnitude of the specific effects will depend upon the nature, terms and size of the acquisition consummated after the effective date. 
 In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements — An amendment of ARB No. 51” (“SFAS 160”). SFAS 160 amends Accounting
Research Bulletin 51 “Consolidated Financial Statements” to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling
interest in a subsidiary, which is sometimes referred to as minority interest, is a third-party ownership interest in the consolidated entity that should be reported as a component of equity in the consolidated financial statements. Among other
requirements, SFAS 160 requires the consolidated statement of income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. SFAS 160 also requires disclosure on the face of the
consolidated statement of income of the amounts of consolidated net income attributable to the parent and to the noncontrolling interest. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2008. Earlier adoption is prohibited. Currently, we do not have any non-controlling interests (ownership interests in a subsidiary that are held by owners other than us) recorded in our financial statements. The adoption of
SFAS 160 is not expected to have a material impact on our financial statements. 
 In September 2006, the FASB issued SFAS No. 157,
“Fair Value Measurement” (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosure requirements about fair value measurements. SFAS 157 applies to other accounting
pronouncements that require or permit fair value measurements. The fair value measurement of financial assets and financial liabilities is effective for us beginning in fiscal year 2008. Three FASB Staff Positions (“FSP”) on this statement
were subsequently issued. FSP No. 157-1, issued on February 14, 2008, excluded SFAS No. 13, “Accounting for Leases” (“SFAS 13”), and other accounting pronouncements that address fair value measurements for purposes
of lease classification or measurement under SFAS 13. However, this scope exception does not apply to assets acquired and liabilities assumed in a business combination, which are required to be measured at fair value under SFAS No. 141,
“Business Combinations” or SFAS 141(R), regardless of whether those assets and liabilities are related to leases. This FSP was effective upon our initial adoption of SFAS 157. FSP No. 157-2, issued on February 12, 2008, delayed
the effective date of this statement for non-financial assets and non-financial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. This FSP will be effective for us in fiscal year 2009.
FSP No. 157-3, issued in October 2008 and effective upon issuance, clarifies how SFAS 157 should be applied when valuing securities in markets that are not active by illustrating key considerations in determining fair value. Our adoption of
this statement on January 1, 2008 is limited to financial assets and liabilities, and did not have a material impact on our consolidated financial position, results of operations or cash flows. The adoption of FSP No. 157-2 is not expected
to have a material impact on our financial statements. 
 In April 2008, the FASB issued FSP No. 142-3, “Determination of the Useful
Life of Intangible Assets” (“FSP 142-3”). This FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement
No. 142, Goodwill and Other Intangible Assets. FSP 142-3 applies to intangible assets that are acquired individually or with a group of other assets after the effective date 
  

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of either a business combination or an asset acquisition. The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset under Statement 142 and the
period of expected cash flows used to measure the fair value of the asset under SFAS 141(R) and other U.S. GAAP. The FSP also contains new disclosure requirements with respect to recognized intangible assets. This FSP is effective for fiscal years
beginning after December 15, 2008, and for interim periods within such fiscal years. We are currently evaluating the potential impact of this statement. 
 In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles.” SFAS 162 identifies the sources of accounting principles and the framework for
selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with U.S. GAAP. SFAS 162 will become effective 60 days following the SEC’s approval of the Public
Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.” This statement did not result in a change in our current practice.

 2. Business Combinations, Escrow Settlement, and Intangible Assets 
 Business Combinations and Escrow Settlement – On June 11, 2004, LLI, an indirect subsidiary of ABRY Partners (“ABRY”) acquired the Predecessor in a transaction accounted for
under the purchase method of accounting (the “Merger”). The aggregate purchase price was $718.1 million. The merger agreement contains customary representations and warranties and covenants. At closing, $30.0 million of the Merger
consideration was deposited into an escrow account on behalf of the stockholders and optionholders of the Predecessor to secure their potential indemnity obligations to LLI and payment of any post-closing adjustment to the Merger consideration to
LLI. Since the Merger, periodic payments from the escrow account have been paid to the stockholders and optionholders of the Predecessor according to a pre-determined payment schedule. Final settlement of the escrow account was reached with the
previous owners on July 25, 2006. In final settlement of the escrow account, the Company received $795,000 for potential tax liabilities. As the Company had already recorded these additional tax liabilities subsequent to the Merger and
concluded there is not a clear and direct link to the original purchase price, the settlement amount of $795,000 was recorded as other income in the third quarter of 2006. 
 Intangible Assets – As of December 31, 2008 and 2007, the Company’s acquired intangible assets are being amortized on a straight-line basis as follows (in thousands): 
  

																							
	 	  	December 31, 2008	  	December 31, 2007
	 	  	Gross
Carrying
Amount	  	Accumulated
Amortization	  	Net
Carrying
Amount	  	Weighted
Average
Amortization
Period	  	Gross
Carrying
Amount	  	Accumulated
Amortization	  	Net
Carrying
Amount	  	Weighted
Average
Amortization
Period
	 	  	 	  	 	  	 	  	(years)	  	 	  	 	  	 	  	(years)
	 Customer relationships
	  	$	401,400	  	$	91,375	  	$	310,025	  	20	  	$	401,400	  	$	71,304	  	$	330,096	  	20
	 Customer List
	  	 	263	  	 	84	  	 	179	  	5	  	 	175	  	 	35	  	 	140	  	5
	 Trademark and tradename
	  	 	34,500	  	 	31,414	  	 	3,086	  	5	  	 	34,500	  	 	24,514	  	 	9,986	  	5
	 Internally developed software
	  	 	14,000	  	 	14,000	  	 	—  	  	3	  	 	14,000	  	 	14,000	  	 	—  	  	3
	 Covenants-not-to-compete
	  	 	10,200	  	 	10,200	  	 	—  	  	2	  	 	10,200	  	 	10,200	  	 	—  	  	2
		  	 	 	  	 	 	  	 	 	  	 	  	 	 	  	 	 	  	 	 	  	 
		  	$	460,363	  	$	147,073	  	$	313,290	  	18	  	$	460,275	  	$	120,053	  	$	340,222	  	18
		  	 	 	  	 	 	  	 	 	  	 	  	 	 	  	 	 	  	 	 	  	 

  

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 The expected future amortization of the acquired intangible assets at December 31, 2008 is as follows
(in thousands): 
  

				
	 Year Ending December 31
	  		
	 2009
	  	$	23,209
	 2010
	  	 	20,123
	 2011
	  	 	20,123
	 2012
	  	 	20,088
	 2013
	  	 	20,073
	 Thereafter
	  	 	209,674
		  	 	 
	 Total
	  	$	313,290
		  	 	 

 Amortization expense of acquired intangible assets for the years ended
December 31, 2008, December 31, 2007 and December 31, 2006 was $27,020,000, $29,092,000 and $33,917,000, respectively. 
 3. Property and equipment 
 Property and equipment consists of the following (in thousands): 
  

									
	 	  	December 31, 2008	 	 	December 31, 2007	 
	 Equipment
	  	$	6,821	  	 	$	8,806	  
	 Software
	  	 	2,505	  	 	 	1,935	  
	 Leasehold improvements
	  	 	1,802	  	 	 	1,783	  
	 Furniture and fixtures
	  	 	867	  	 	 	867	  
		  	 	 	 	 	 	 	 
	 Subtotal
	  	 	11,995	  	 	 	13,391	  
	 Construction in progress
	  	 	3,550	  	 	 	85	  
		  	 	 	 	 	 	 	 
	 Total
	  	 	15,545	  	 	 	13,476	  
	 Accumulated depreciation and amortization
	  	 	(6,998	) 	 	 	(7,563	) 
		  	 	 	 	 	 	 	 
	 Property and equipment - net
	  	$	8,547	  	 	$	5,913	  
		  	 	 	 	 	 	 	 

 Depreciation and amortization of property and equipment for the years ended December 31, 2008, December 31,
2007 and December 31, 2006 was $ 2,378,000, $2,198,000, and $2,491,000, respectively. 
  

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 4. Long-Term Debt 
 Long-term debt consists of the following (in thousands): 
  

							
	 	  	December 31, 2008	  	December 31, 2007
	 Current portion of long-term debt:
	  			  		
	 Term loan
	  	$	16,339	  	$	17,730
	 Long-term debt (non-current):
	  			  		
	 Term loan
	  	 	185,336	  	 	201,451
	 Senior subordinated notes
	  	 	162,699	  	 	162,185
	 Senior discount notes
	  	 	102,402	  	 	89,338
		  	 	 	  	 	 
	 Total debt
	  	$	466,776	  	$	470,704
		  	 	 	  	 	 

 In 2004, the Company entered into a $40.0 million reducing revolver
credit facility and a $277.5 million term loan under a bank loan agreement dated June 11, 2004 (the “2004 Loans”). The reducing revolver credit facility is due June 11, 2010 and the term loan is due June 10, 2011. Under the
terms of the loan agreement, the Company may elect either a variable rate of interest (equal to the lender’s “base rate” plus an applicable margin) or an interest rate fixed for a specified period of one, two, three or six months
(equal to LIBOR plus an applicable margin) for the revolver and one, two, or three months for the term loan. The applicable margins used to calculate these interest rates are determined based on the Company’s ratio of total debt less excess
cash to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the loan agreements. The senior credit facilities are collateralized by first priority interests in, and mortgages on, substantially all of
our tangible and intangible assets and first priority pledges of all the equity interest owned by us in our existing and future domestic subsidiaries. 
 At December 31, 2008 the maximum amount available under the revolving credit facility was $40.0 million and no balance was outstanding. This amount is available through June 2010 per the loan agreement. At December 31, 2008
the 2004 Loans consisted of a $201.7 million term loan. The term loan is automatically and permanently reduced at the end of each calendar quarter based on a predetermined schedule. In addition to such predetermined reductions, the maximum amount
available under the loan agreement will be permanently reduced by (1) beginning June 11, 2004, a portion of an annual “excess cash flow” amount, as defined in the loan agreement, (2) a portion of net proceeds from the
Company’s issuance of equity securities, as defined, (3) a portion of net proceeds from the Company’s disposition of assets, as defined, and (4) by voluntary reductions requested at the option of the Company. The Company’s
average interest rate for the term loan was 6.54%, 8.53%, and 9.32% for 2008, 2007 and 2006, respectively. At December 31, 2008, the interest rate in effect was 4.71% for the term loan. The fair value of the term loan is approximately $185.6
million as of December 31, 2008, determined principally by noting the fair value that was determined for our senior subordinated notes, with appropriate consideration of the current yield, seniority and other of the provisions and
characteristics that are specific to the term loan. 
 On November 5, 2005, the Company entered into an amendment to the 2004 Loans,
pursuant to which both the total leverage and the senior leverage covenants were increased by 0.25% to provide additional leverage availability, beginning with the period ended December 31, 2005 and ending with the period ended
December 31, 2006. 
 On November 14, 2006, the Company entered into an Amended and Restated Credit Agreement (the
“Agreement”) which amends and restates the 2004 Loans and amended as of November 3, 2005, among Language Line, Inc., the Company and the subsidiary guarantors party thereto. The Agreement effected a refinancing and replacement of the
Tranche B Term Loans then currently outstanding under the Original Credit Agreement with a new class of Term Loans designated as “Tranche B-1 Term Loans.” The aggregate principal amount of the modified loan is equal to the aggregate
principal amount of original loan under the Original Credit Agreement. The modified loan has terms, rights and obligations materially identical to the original loan except that the applicable margin for borrowings under the modified loan is 3.25%

  

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in the case of Eurodollar loans and 2.25 % in the case of Alternate Base Rate Loans. In addition, the Agreement amended related definitions and contained immaterial modifications to various
other provisions of the Original Credit Agreement. The 2004 Loans contain certain financial covenants that the Company was in compliance with at December 31, 2008. 
 On June 11, 2004 LLI issued $165 million of 11 1/8% Senior Subordinated Notes (the “Notes”) for net proceeds of $160.8 million. Interest is payable on June 15 and December 15
of each year. The Notes will mature on June 15, 2012. LLI may redeem some or all of the notes at any time on or after June 15, 2008 at the redemption prices set forth. The notes are unsecured and are subordinated to all existing and future
senior indebtedness. Each of LLI’s domestic subsidiaries guarantee the notes on a senior subordinated basis. 
 Based on quoted market
prices, the fair value of the Notes is approximately $152.8 million as of December 31, 2008. 
 On June 11, 2004 the Company issued
approximately $109.0 million of 14 1/8% Senior Discount Notes for net proceeds of approximately $55.0 million. No cash interest will accrue on the senior discount notes prior to June 15, 2009. Thereafter, cash interest on the senior
discount notes will accrue at a rate of 14 1/8% per annum and be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2009. The senior discount notes are unsecured senior
obligations, rank equally with all of the Company’s future senior indebtedness and rank senior to all subordinated indebtedness. The senior discount notes are subordinated to all of the Company’s subsidiaries’ existing and future
obligations and are due June 15, 2013. 
 Based on quoted market prices, the fair value of the $109.0 million of the 14 1/8% senior
discount notes is approximately $78.5 million as of December 31, 2008. 
 The indenture governing both the Senior Discount Notes and the
Senior Subordinated Notes contain covenants limiting, among other things, the Company’s ability and the ability of its subsidiaries to incur additional indebtedness, make restricted payments, make investments, create certain liens, sell assets,
restrict payments by the Company’s subsidiaries, guarantee indebtedness, enter into transactions with affiliates, and merge or consolidate or transfer and sell assets. These covenants are subject to important exceptions and qualifications as
contained in the indenture. 
 As of December 31, 2008, principal payments are due approximately as follows (in thousands): 
  

													
	 Year Ending December 31,
	  	Term
Loans	  	Senior
Subordinated
Notes	  	Senior
Discount
Notes	  	Total
	 2009
	  	$	16,339	  	$	—  	  	$	—  	  	$	16,339
	 2010
	  	 	12,083	  	 	—  	  	 	—  	  	 	12,083
	 2011
	  	 	173,253	  	 	—  	  	 	—  	  	 	173,253
	 2012
	  	 	—  	  	 	165,000	  	 	—  	  	 	165,000
	 2013
	  	 	—  	  	 	—  	  	 	108,993	  	 	108,993
		  	 	 	  	 	 	  	 	 	  	 	 
	 Total
	  	$	201,675	  	$	165,000	  	$	108,993	  	$	475,668
		  	 	 	  	 	 	  	 	 	  	 	 

  

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 5. Income Taxes 
 The provision (benefit) for income taxes consists of the following (in thousands): 
  

													
	 	  	Year Ended
December 31, 2008	 	 	Year Ended
December 31, 2007	 	 	Year Ended
December 31, 2006	 
	 Current:
	  				 				 			
	 Federal
	  	$	16,645	  	 	$	9,929	  	 	$	6,317	  
	 Foreign
	  	 	74	  	 	 	24	  	 	 	55	  
	 State
	  	 	2,865	  	 	 	1,135	  	 	 	1,365	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total current
	  	 	19,584	  	 	 	11,088	  	 	 	7,737	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Deferred:
	  				 				 			
	 Federal
	  	 	(8,580	) 	 	 	(7,944	) 	 	 	(9,258	) 
	 State
	  	 	(1,170	) 	 	 	(1,096	) 	 	 	(1,374	) 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total deferred
	  	 	(9,750	) 	 	 	(9,040	) 	 	 	(10,632	) 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total
	  	$	9,834	  	 	$	2,048	  	 	$	(2,895	) 
		  	 	 	 	 	 	 	 	 	 	 	 

 The amount of income tax provision (benefit) recorded differs from the amount using the statutory federal income tax rate
(35%) for the following reasons (in thousands): 
  

													
	 	  	Year Ended
December 31, 2008	 	 	Year Ended
December 31, 2007	 	 	Year Ended
December 31, 2006	 
	 Federal statutory tax expense (benefit)
	  	$	9,624	  	 	$	1,064	  	 	$	(4,341	) 
	 Expiration of uncertain tax positions liability
	  	 	(2,504	) 	 	 	(470	) 	 	 	—  	  
	 State tax expense (benefit)
	  	 	1,336	  	 	 	169	  	 	 	29	  
	 Nondeductible expense
	  	 	1,535	  	 	 	1,374	  	 	 	1,186	  
	 Other
	  	 	(157	) 	 	 	(89	) 	 	 	231	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Total
	  	$	9,834	  	 	$	2,048	  	 	$	(2,895	) 
		  	 	 	 	 	 	 	 	 	 	 	 

  

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 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets
and liabilities at December 31 are as follows (in thousands): 
  

																							
	 	  	December 31, 2008	 	 	December 31, 2007 	 
	 	  	Current	  	Non
Current	 	 	Total	 	 	Current	  	Non
Current	 	 	Total	 
	 Deferred tax assets (liabilities):
	  			  				 				 			  				 			
	 Allowance for uncollectible accounts receivable
	  	$	526	  	$	—  	  	 	$	526	  	 	$	517	  	$	—  	  	 	$	517	  
	 State income taxes
	  	 	1,102	  	 	5,686	  	 	 	6,788	  	 	 	630	  	 	6,095	  	 	 	6,725	  
	 Depreciation and amortization
	  	 	—  	  	 	7	  	 	 	7	  	 	 	—  	  	 	56	  	 	 	56	  
	 Acquired intangibles
	  	 	—  	  	 	(151,094	) 	 	 	(151,094	) 	 	 	—  	  	 	(156,011	) 	 	 	(156,011	) 
	 Accretion of interest on High Yield Discount Obligation
	  	 	—  	  	 	13,436	  	 	 	13,436	  	 	 	—  	  	 	9,734	  	 	 	9,734	  
	 Other
	  	 	1,343	  	 	—  	  	 	 	1,343	  	 	 	235	  	 	—  	  	 	 	235	  
		  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 
	 Net deferred tax liability
	  	$	2,971	  	$	(131,965	) 	 	$	(128,994	) 	 	$	1,382	  	$	(140,126	) 	 	$	(138,744	) 
		  	 	 	  	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 

 Undistributed earnings of the Company’s foreign subsidiaries of approximately $3.5 million at December 31,
2008 and $2.7 million at December 31, 2007, are considered to be indefinitely reinvested and, accordingly, no provision for federal and state income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends
or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. 
 The operations of the Company and subsidiaries are included in the consolidated federal and state income tax returns of its parent, Language Line Holdings, II Inc. The Company and subsidiaries manage the
respective tax payments and refunds for Language Line Holdings, II Inc. Included in the accompanying consolidated balance sheet at December 31, 2008 and 2007 are amounts owed to Language Line Holdings, II Inc. of $2,229,000 and $1,727,000 under
this arrangement. These amounts are presented separately from the amounts that are receivable or payable (from/to) taxing authorities for federal and state income taxes. In prior periods amounts owed to Language Line Holdings, II Inc. were offset
against amounts due from/to taxing authorities in the balance sheet. The Company has revised this presentation in the accompanying consolidated balance sheet at December 31, 2007. 
 The Company adopted FIN 48 on January 1, 2007. FIN 48 prescribes a recognition threshold and measurement attribute criteria for the financial statement recognition and measurement of a tax position
taken or expected to be taken in a tax return. FIN 48 clarifies the accounting for uncertainty in income taxes by requiring a tax position be recognized only when it is more likely than not that the tax position, based on its technical merits, will
be sustained upon ultimate settlement with the applicable tax authority. As a result of the adoption of FIN 48, the Company recorded a $4.2 million increase in other liabilities, a $2.8 million decrease in income tax payable, a $0.6 million decrease
in deferred tax liabilities, and a cumulative adjustment of $0.8 million to opening accumulated deficit at January 1, 2007. 
  

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 The following table illustrates the incremental effect of applying FIN 48 on individual line items on the
consolidated balance sheet as of January 1, 2007 (in thousands):. 
  

													
	 	  	Before
application
of FIN 48	 	 	Effect of
FIN 48
application	 	 	After
Application
of FIN 48	 
	 Deferred taxes
	  	$	1,013	  	 	$	(3	) 	 	$	1,010	  
	 Total assets
	  	 	843,966	  	 	 	(3	) 	 	 	843,963	  
	 Income taxes payable
	  	 	3,008	  	 	 	(2,772	) 	 	 	236	  
	 Other liabilities
	  	 	—  	  	 	 	4,181	  	 	 	4,181	  
	 Deferred taxes
	  	 	149,403	  	 	 	(609	) 	 	 	148,794	  
	 Total liabilities
	  	 	639,683	  	 	 	800	  	 	 	640,483	  
	 Accumulated deficit
	  	 	(22,854	) 	 	 	(803	) 	 	 	(23,657	) 
	 Total stockholders’ equity
	  	 	204,283	  	 	 	(803	) 	 	 	203,480	  
	 Total liabilities and stockholders’ equity
	  	 	843,966	  	 	 	(3	) 	 	 	843,963	  

 A reconciliation of the beginning and
ending amount of unrecognized tax benefits from January 1, 2007 through December 31, 2008 is as follows: 
  

					
	 Unrecognized tax benefits balance at January 1, 2007
	  	$	4,181	  
	 Gross increase for tax positions of prior years
	  	 	97	  
	 Gross decrease for tax positions of prior years
	  	 	—  	  
	 Gross increase for tax positions of current year
	  	 	—  	  
	 Gross decrease for tax positions of current year
	  	 	—  	  
	 Settlements
	  	 	(345	) 
	 Lapse of statue of limitations
	  	 	(470	) 
		  	 	 	 
	 Unrecognized tax benefits balance at December 31, 2007
	  	 	3,463	  
	 Gross increase for tax positions of prior years
	  	 	85	  
	 Gross decrease for tax positions of prior years
	  	 	(58	) 
	 Gross increase for tax positions of current year
	  	 	126	  
	 Gross decrease for tax positions of current year
	  	 	—  	  
	 Settlements
	  	 	—  	  
	 Lapse of statute of limitations
	  	 	(2,504	) 
		  	 	 	 
	 Unrecognized tax benefits balance at December 31, 2008
	  	$	1,112	  
		  	 	 	 

 The total unrecognized tax benefits as of December 31, 2008 totaled $1.1 million, of which $0.7 million has been
recorded by the Company as a non-current liability and $0.4 million has been classified as a current liability in the accompanying consolidated balance sheet. If recognized, these amounts would impact the Company’s effective tax rate. The
timing of the resolution of the non-current portion is uncertain, and the resolution of these items may result in additional or reduced income tax expense. We anticipate that our liabilities for uncertain tax positions may increase for items that
arise in the ordinary course of business. These amounts will be reflected as an increase in the liabilities and an increase to the current period tax expense. Our expectations of these amounts are contemplated in our annual effective tax rate.
Possible releases of liabilities due to expirations of statutes of limitations will have the effect of decreasing our income tax expense and effective tax rate if and when they occur. 
 The Company recognizes interest and penalties relating to unrecognized tax benefits as part of its income tax expense. Total accrued interest and penalties as of December 31, 2008 were $209,000 and
$77,000, respectively. 
  

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 The Company files income tax returns in U.S. federal jurisdiction along with various state and foreign
jurisdictions, and is subject to ongoing audits from various taxing authorities in the jurisdictions in which it does business. With certain exceptions, the Company is no longer subject to examinations from taxing authorities for years prior to
2003. The Franchise Tax Board (“FTB”) of the State of California is currently examining the Company’s California income tax returns for 2003 and 2004. The Company has agreed with certain FTB findings and will make income tax
settlement payments on tax positions of at least $0.3 million within the next 12 months. The Company is currently disputing a FTB finding with an estimated income tax effect of $0.2 million. 
 In February 2009, California budget legislation was signed into law that, among other things, contained several state tax law changes that will affect the
Company’s effective state tax rate. As a result of these changes, the Company will need to re-evaluate its state deferred tax liabilities and assets in the first quarter of 2009, as the effect of changes in tax laws are accounted for in the
period the law changed. The Company is currently evaluating these tax law changes and their impact to the consolidated financial statements. 
 6. Retirement Plans 
 The Company has a 401(k) retirement plan under which employees may elect to make tax deferred
contributions, to a maximum established annually by the IRS. For employees meeting a six-month service requirement, the Company matches 66.7% of the employees’ contributions up to a maximum of 6% of the employees’ contributions.
Contributions vest after three years of service. Company contributions were approximately $384,000, $445,000 and $413,000 for the years ended December 31, 2008, December 31, 2007 and December 31, 2006, respectively. 

7. Stock-Based Compensation 
 Under the
Company’s Holdings Class C restricted stock unit plan, officers, employees and outside directors have received or may receive grants of Holdings Class C restricted stock units. Effective January 1, 2006, the Company adopted the provisions
of Financial Accounting Standards Board Statement of Financial Accounting Standard (“SFAS”) No. 123(R), “Share-Based Payment,” which establishes the accounting for employee stock-based awards. Under the provisions of
SFAS No. 123(R), stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant).
The Company adopted SFAS No. 123(R) using the modified prospective method and, as a result, periods prior to January 1, 2006 have not been restated. Additionally, no modifications were made to outstanding Holdings Class C restricted stock
units prior to the adoption of SFAS No. 123(R), and no cumulative adjustments were recorded in the Company’s financial statements. 
 Prior to January 1, 2006, the Company accounted for the plans under the measurement and recognition provisions of Accounting Principles Board (“APB”) Opinion No. 25, Accounting for Stock Issued to Employees (“APB
25”), and related Interpretations as permitted by SFAS No. 123 (“SFAS 123”), Accounting for Stock Based Compensation. Under APB 25, the Company recorded stock-based compensation expense for its Holdings Class C restricted stock
units in its Financial Statements. 
 Under both SFAS 123 and SFAS 123(R), the Company determines the fair value of its Holdings Class C
restricted stock units using the probability-weighted expected return method. Under this method, the fair value of an enterprise’s common stock is estimated from an analysis of the future values for the Company assuming various possible future
liquidity events. SFAS 123(R) requires that the Company recognize compensation expense for only the portion of restricted stock units that are expected to vest, rather than recording forfeitures when they occur, as previously permitted. If the
actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. 
 On January 1, 2006, deferred compensation related to awards issued prior to the adoption of SFAS 123(R) was reduced to zero with a corresponding decrease to additional paid-in capital. SFAS 123(R)
requires the Company to reflect the tax savings resulting from tax deductions in excess of expense reflected in its consolidated statement of cash flows as a financing cash flow, which will impact the Company’s future reported cash flows from
operating activities. 
  

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 Stock-based compensation expense related to Holdings Class C restricted stock units, recognized under SFAS
123(R) for the years ended December 31, 2008 and 2007 was $439,000 and $417,000. As of December 31, 2008, total unrecognized compensation cost, net of estimated forfeitures, was $749,000 related to the restricted stock units. The
unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.0 years. 
 The Holding’s Class C
restricted stock units will vest according to a specified schedule and will be expensed to compensation over the vesting period of five years. The units do not contain a stated contractual life. Vesting will accelerate upon a change of control of
Holdings and upon certain types of sales. Vesting will cease if the individual ceases to be employed by Holdings or any of its subsidiaries, at which time Holdings will have the option to purchase all or any portion of the vested and/or the unvested
restricted stock units. The aggregate purchase price for all unvested units will be $1.00, and the purchase price for each vested unit will be the fair market value for such unit as of the date of individual’s termination. If, however, the
Company terminates the individual’s employment for cause, the aggregate purchase price of all vested units will be $1.00. Holding’s right to repurchase the individual’s units will terminate upon a “change of control” (as
such term is defined in their incentive unit agreement), provided that the individual is employed by Holdings or any of its subsidiaries at the time of the “change of control.” 
 As of December 31, 2008 there are 9,293,000 outstanding unvested Holdings Class C restricted stock units, which were granted as restricted stock since June 12, 2004. The company terminated all
stock option incentive plans on June 11, 2004 and the plans were not replaced. There are no outstanding or exercisable options with respect to any stock option incentive plans with the Company as of December 31, 2008. 
 The following table reflects activity under the restricted stock unit plan from December 31, 2006 through December 31, 2008 (in thousands, except
per share amounts): 
  

							
	 	  	Number of
Units (000)	 	 	Weighted
Average Grant
Date Fair Value
	 Outstanding, December 31, 2006
	  	21,099	  	 	$	0.09
	 Granted
	  	1,750	  	 	$	0.14
	 Repurchased
	  	(110	) 	 	$	0.09
	 Forfeited
	  	(790	) 	 	$	0.13
		  	 	 	 		
	 Outstanding, December 31, 2007
	  	21,949	  	 	$	0.09
	 Granted
	  	900	  	 	$	0.23
	 Repurchased
	  	(102	) 	 	$	0.25
	 Forfeited
	  	(258	) 	 	$	0.13
		  	 	 	 		
	 Outstanding, December 31, 2008
	  	22,489	  	 	$	0.10
		  	 	 	 		

  

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 A summary of the status of the Company’s nonvested shares as of December 31, 2008 and changes
during the period is presented below: 
  

							
	 Nonvested Units
	  	Number of
Units (000)	 	 	Weighted
Average Grant
Date Fair Value
	 Outstanding, December 31, 2006
	  	15,771	  	 	$	0.09
	 Granted
	  	1,750	  	 	$	0.14
	 Vested
	  	(3,372	) 	 	$	0.09
	 Forfeited
	  	(790	) 	 	$	0.13
		  	 	 	 		
	 Outstanding, December 31, 2007
	  	13,359	  	 	$	0.10
	 Granted
	  	900	  	 	$	0.23
	 Vested
	  	(4,708	) 	 	$	0.10
	 Forfeited
	  	(258	) 	 	$	0.13
		  	 	 	 		
	 Outstanding, December 31, 2008
	  	9,293	  	 	$	0.11
		  	 	 	 		

 Holding’s Class C restricted stock units granted vest over a 5 year vesting schedule. During the year ended
December 31, 2008, 4.7 million units vested. Recipients of restricted stock units do not pay any cash consideration for the units, do not have the right to vote, and do not receive dividends with respect to such units. Compensation expense
for restricted stock units is recognized on a straight-line basis over the vesting period, using the restricted stock unit’s fair value on the grant date. 
  

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 8. Lease Commitments 
 The Company leases its operating facilities under operating leases that run through 2011. Future minimum annual lease payments at December 31, 2008 are as follows (in thousands): 
  

				
	 Year Ending December 31
	  	Operating
Leases
	 2009
	  	$	1,185
	 2010
	  	 	983
	 2011
	  	 	176
		  	 	 
	 Total
	  	$	2,344
		  	 	 

 Rent expense for all operating leases the year ended December 31,
2008, December 31, 2007 and December 31, 2006 was $1,178,000, $1,100,000, and $1,069,000, respectively. 
 9. Related Party
Transactions 
 In January 2008, the Company’s ultimate parent, Language Line Holdings, LLC completed its acquisition of Coto Holdings,
LLC (“Coto”), a previously unaffiliated company. As part of an affiliate and intercompany services agreement executed between the Company, its parent and Coto, the Company is to provide certain management, interpretation and other defined
services to Coto. 
 As consideration for these management services, Coto is charged a management fee by the Company equal to $500,000 per
quarter. Management fees earned by the Company for the year ended December 31, 2008, included in revenues in the accompanying statements of operations, totaled $1,945,000. 
 Additionally, Coto is charged a fee to reimburse the Company for costs it incurs for providing interpretation services, certain of their equipment and other miscellaneous costs. Reimbursable charges to
Coto for interpreters and equipment, netted against cost of revenues for the year ended December 31, 2008 totaled $13,127,000. Finally, reimbursable charges to Coto for other miscellaneous (indirect) costs netted against selling, general and
administrative expenses totaled $870,000 for the year ended December 31, 2008. At December 31, 2008, Coto owed the Company an aggregate of $2,387,000 related to these services and charges. 
 On January 19, 2006 the Company’s ultimate parent, Language Line Holdings, LLC, completed its acquisition of the unaffiliated U.K. based company
Language Line, Limited (“Language Line UK”). Language Line UK’s business operations are independent of the Company and are not included in the accompanying consolidated financial statements. The Company incurred $257,000 of
acquisition related costs in 2005 which were reported as a loan to Language Line UK on the Company’s balance sheet as of December 31, 2005. Subsequently the Company received a full amount of settlement on January 20, 2006 when the
acquisition was completed. The company has a contract to provide administrative and sales support services to Language Line UK for a fixed monthly fee. The Company recognized revenue of approximately $236,000, $234,000 and $480,000 for the years
ended December 31, 2008, December 31, 2007 and December 31, 2006, respectively for administrative and sales support services it rendered to Language Line UK. 
 The operations of the Company and subsidiaries are included in the consolidated federal and state income tax returns of its parent, Language Line Holdings, II Inc. The Company and subsidiaries manage the
respective tax payments and refunds for Language Line Holdings, II Inc. Included in the accompanying consolidated balance sheet at December 31, 2008 and 2007 are amounts owed to Language Line Holdings, II Inc. of $2,229,000 and $1,727,000 under
this arrangement. These

  

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amounts are presented separately from the amounts that are receivable or payable (from/to) taxing authorities for federal and state income taxes. In prior periods amounts owed to Language Line
Holdings, II Inc. were offset against amounts due from/to taxing authorities in the balance sheet. The Company has revised this presentation in the accompanying consolidated balance sheet at December 31, 2007. 
 10. Contingencies 
 The Company is party to
certain legal actions arising in the ordinary course of business. Although the ultimate outcome is not presently determinable, management believes that the resolution of such matters will not have a material adverse effect on the Company’s
financial position, results of operations or cash flows. 
 11. Guarantor Subsidiaries 
 The Company’s outstanding public debt (the “Senior Subordinated Notes”) is jointly and severally, fully and unconditionally guaranteed by the
Company and its subsidiaries (the “Guarantor Subsidiaries”). The Company or Parent Company has no independent assets or operations. The subsidiaries are 100% owned by the Company. At December 31, 2008, a total of approximately $162.7
million of Senior Subordinated Notes were outstanding. The Guarantor Subsidiaries are direct or indirect wholly-owned subsidiaries of the Company. Separate financial statements of the Company and each of the Guarantor Subsidiaries are not presented
because the guarantees are full and unconditional and the Guarantor Subsidiaries are jointly and severally liable. 
 There are no current
restrictions on the ability of the Guarantor Subsidiaries to make payments under the guarantees referred to above. The obligations of each guarantor under its guarantee are limited to the maximum amount permitted under Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act, or any similar Federal or state law (e.g. laws requiring adequate capital to pay dividends) respecting fraudulent conveyance or fraudulent transfer. 
  

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 12. Quarterly Information (Unaudited) 
 The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters in the years ended December 31, 2008 and 2007. This quarterly information
has been prepared on the same basis as the Consolidated Financial Statements and includes all adjustments necessary to state fairly the information for the periods presented. The results of operations for any quarter are not necessarily indicative
of results for the full year or for any future period. The Company operates as a single segment. 
 Quarterly Financial Data

 (unaudited, in thousands) 
  

															
	 	  	Quarter Ended
	 2008
	  	March 31	 	 	June 30	 	 	September 30	  	December 31
	 Revenues
	  	$	48,897	  	 	$	52,220	  	 	$	54,845	  	$	56,682
	 Income before taxes
	  	$	 4,665	  	 	$	 7,458	  	 	$	7,869	  	$	 7,506
	 Income tax expense
	  	$	 2,364	  	 	$	 3,714	  	 	$	 407	  	$	 3,349
	 Net income
	  	$	 2,301	  	 	$	 3,744	  	 	$	 7,462	  	$	 4,157
		
	 	  	Quarter Ended
	 2007
	  	March 31	 	 	June 30	 	 	September 30	  	December 31
	 Revenues
	  	$	45,466	  	 	$	45,473	  	 	$	46,177	  	$	46,272
	 Income (loss) before taxes
	  	$	 279	  	 	$	 (243	) 	 	$	 1,013	  	$	 1,990
	 Income tax expense
	  	$	 397	  	 	$	 297	  	 	$	 603	  	$	 751
	 Net income (loss)
	  	$	 (118	) 	 	$	 (540	) 	 	$	 410	  	$	 1,239

  

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 LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES 
 FINANCIAL STATEMENT SCHEDULE 
 The Financial Statement Schedule II - VALUATION AND QUALIFYING ACCOUNTS 
  

																		
	 Allowance for Doubtful Accounts
	  	Balance at
Beginning
of Period	  	Charged to
costs and
expenses	 	 	Charged to
Other
Accounts	  	Deductions –
Write-offs,
Net of
Recovery	 	 	Balance at End
of Period
	 Year ended December 31, 2008
	  	$	1,300	  	$	209	  	 	$	—  	  	$	(186	) 	 	$	1,323
	 Year ended December 31, 2007
	  	 	1,503	  	 	(59	) 	 	 	—  	  	 	(144	) 	 	 	1,300
	 Year ended December 31, 2006
	  	 	738	  	 	1,254	  	 	 	—  	  	 	(489	) 	 	 	1,503

  

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 SIGNATURES 
 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized. 
 Dated: March 25, 2009 
  

			
	LANGUAGE LINE HOLDINGS, INC.
		
	By:	 	/s/    MICHAEL F. SCHMIDT
		 	Michael F. Schmidt
		 	 CHIEF FINANCIAL OFFICER
 and SECRETARY

 Pursuant to the requirements of
the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 25, 2009. 
  

			
	 SIGNATURE
	  	 CAPACITY

		
	 /s/    DENNIS G. DRACUP
 Dennis G. Dracup
	  	Chief Executive Officer and Director (Principal Executive Officer)
		
	 /s/    MICHAEL F. SCHMIDT
 Michael F. Schmidt
	  	Chief Financial Officer and Secretary (Principal Financial Officer)

  

 II-1 

Table of Contents

 EXHIBIT 31.1 
 CERTIFICATION OF CHIEF EXECUTIVE OFFICER, 
 AS
REQUIRED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 
 I, Dennis G. Dracup, certify that: 
  

	1.	I have reviewed this report on Form 10-K of Language Line Holdings, Inc.; 

  

	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 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 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 the 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 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 the 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: March 25, 2009
	
	/s/ Dennis G. Dracup
	Dennis G. Dracup
	Chief Executive Officer and Director
	(Principal Executive Officer)

Table of Contents

 EXHIBIT 31.2 
 CERTIFICATION OF CHIEF FINANCIAL OFFICER, 
 AS
REQUIRED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 
 I, Michael F. Schmidt, certify that: 
  

	1.	I have reviewed this report on Form 10-K of Language Line Holdings, Inc.; 

  

	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 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 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 the 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 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 the 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: March 25, 2009
	
	/s/ Michael F. Schmidt
	Michael F. Schmidt
	Chief Financial Officer and Director
	(Principal Financial Officer)

Table of Contents

 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 Annual Report on
Form 10-K of Language Line Holdings, Inc. (the “Company”) for the year ended December 31, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dennis G. Dracup, Chief Executive
Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 
  

	(i)	The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

  

	(ii)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

  

	
	Date: March 25, 2009
	
	/s/ Dennis G. Dracup
	Dennis G. Dracup
	Chief Executive Officer and Director
	(Principal Executive Officer)

 The foregoing
certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of this Report. 

Table of Contents

 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 Annual Report on
Form 10-K of Language Line Holdings, Inc. (the “Company”) for the year ended December 31, 2008 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael F. Schmidt, Chief Financial
Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 
  

	(iii)	The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

  

	(iv)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

  

	
	Date: March 25, 2009
	
	/s/ Michael F. Schmidt
	Michael F. Schmidt
	Chief Financial Officer and Secretary
	(Principal Financial Officer)

 The foregoing
certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of this Report. 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-owned Subsidiary of 
 Language Line Holdings, LLC) 
 Consolidated Financial Statements 
 For
the Period from January 10, 2008 through December 31, 2008 
 With Report of Independent Auditors 

Table of Contents

			
	

	  	  
		  	  
 PricewaterhouseCoopers LLP
 Ten Almaden Boulevard
 Suite 1600
 San Jose CA 95113
 Telephone (408)
817 3700
 Facsimile (408) 817 5050

 Report of Independent Auditors 
 To the Board of Directors and Member of Coto Acquisition,
LLC: 
 In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of operations, of member’s
equity and of cash flows present fairly, In all material respects, the financial position of Coto Acquisition, LLC. and it’s subsidiaries at December 31, 2008, and the results of their operations and their cash flows for the period from
January 10, 2008 to December 31, 2008, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is
to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 

 

 

 April 30,2009 

Table of Contents

 COTO Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Balance Sheet 
 (In thousands)

  

				
	 	  	December 31,
2008
		
	 Assets
	  		
	 Current assets:
	  		
	 Cash and cash equivalents
	  	$	5,547
	 Accounts receivable -net of allowance for doubtful accounts of $264
	  	 	9,326
	 Receivable from related parties
	  	 	157
	 Prepaid expenses and other current assets
	  	 	48
		  	 	 
		
	 Total current assets
	  	 	15,078
		
	 Property and equipment, net
	  	 	1,183
	 Goodwill
	  	 	49,601
	 Intangible assets- net of accumulated amortization of $7,670
	  	 	25,230
	 Deferred financing costs- net of accumulated amortization of $172
	  	 	710
	 Other assets
	  	 	7,203
		  	 	 
		
	 Total assets
	  	$	99,005
		  	 	 
	 Liabilities and Member’s Equity
	  		
	 Current liabilities
	  		
	 Accounts payable
	  	$	222
	 Accrued compensation and interpreter costs
	  	 	491
	 Other accrued liabilities
	  	 	2,850
	 Due to Language Line Holdings. Inc.
	  	 	2,387
	 Current portion of long-term debt
	  	 	4,815
		  	 	 
		
	 Total current liabilities
	  	 	10,765
		
	 Other long-term liabilities
	  	 	7,146
	 Long-term debt
	  	 	25,787
		  	 	 
		
	 Total liabilities
	  	 	43,698
		  	 	 
	 Commitments and contingencies (notes 7 and 9)
	  		
		
	 Member’s equity
	  	 	55,307
		  	 	 
		
	 Total liabilities and member’s equity
	  	$	99,005
		  	 	 

 See notes to consolidated financial statements.

  

 2 

Table of Contents

 COTO Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statement of Operations 
 (In thousands)

  

				
	 	  	Period from
January 10, 2008
through
December 31, 2008
	 Revenues
	  	$	48,575
	 Costs of services
	  	 	25,800
	 Other expenses:
	  		
	 Selling, general and administrative
	  	 	10,634
	 Interest expense, net
	  	 	2,496
	 Transaction costs related to business combination
	  	 	366
	 Depreciation and amortization
	  	 	8,330
		  	 	 
	 Total other expenses
	  	 	21,826
		  	 	 
		
	 Net income
	  	$	949
		  	 	 

 See notes to consolidated financial statements.

  

 3 

Table of Contents

 COTO Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statement of Member’s Equity 
 (In
thousands) 
  

				
	 Member’s equity, January 10, 2008
	  	$	 —  
		
	 Member contributions (Note 2)
	  	 	54,358
		
	 Net income
	  	 	949
		  	 	 
		
	 Member’s equity, December 31, 2008
	  	$	55,307
		  	 	 

 See notes to consolidated financial statements.

  

 4 

Table of Contents

 COTO Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Consolidated Statement of Cash Flows 
 (In thousands)

  

					
	 	  	Period from
January 10, 2008
through
December 31, 2008	 
	 Cash flows from operating activities:
	  			
	 Net income
	  	$	949	  
	 Adjustments to reconcile net income to net cash provided by operating activities:
	  			
	 Expenses incurred by Company, paid by Parent
	  	 	312	  
	 Depreciation and amortization
	  	 	8,330	  
	 Gain on extinguishment of debt
	  	 	(91	) 
	 Amortization of deferred financing costs
	  	 	172	  
	 Provision for losses on accounts receivable
	  	 	264	  
	 Effect of changes in operating assets and liabilities:
	  			
	 Accounts receivable
	  	 	(2,855	) 
	 Prepaid expenses and other current assets
	  	 	(12	) 
	 Due from related parties
	  	 	(61	) 
	 Other assets
	  	 	(42	) 
	 Accounts payable
	  	 	221	  
	 Due to Language Line Holdings, Inc.
	  	 	2,387	  
	 Other accrued liabilities
	  	 	(2,833	) 
		  	 	 	 
		
	 Net cash provided by operating activities
	  	 	6,741	  
		  	 	 	 
		
	 Cash flows from investing activities:
	  			
	 Purchases of property and equipment
	  	 	(122	) 
	 Acquisition of member interests, net of cash acquired
	  	 	(30,890	) 
		  	 	 	 
	 Net cash used in investing activities
	  	 	(31,012	) 
		  	 	 	 
		
	 Cash flows from financing activities:
	  			
	 Borrowings under credit agreement
	  	 	31,000	  
	 Long-term debt repayments
	  	 	(1,182	) 
		  	 	 	 
	 Net cash provided by financing activities
	  	 	29,818	  
		  	 	 	 
		
	 Net increase in cash and cash equivalents
	  	 	5,547	  
	 Cash and cash equivalents - beginning of period
	  	 	—  	  
		  	 	 	 
		
	 Cash and cash equivalents - end of period
	  	$	5,547	  
		  	 	 	 
		
	 Additional cash flow information:
	  			
	 Cash paid for interest
	  	$	2,594	  
		  	 	 	 
		
	 Supplemental non- cash flow disclosure information:
	  			
	 Assets contributed by Member in conjunction with acquisition
	  	$	48,877	  
		  	 	 	 
		
	 Acquisition expenses paid by Member
	  	$	5,481	  
		  	 	 	 

 See notes to consolidated financial statements. 
  

 5 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 (An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC) 
 Notes to Consolidated Financial Statements 
 1. Organization and
Summary of Significant Accounting Policies 
 Organization and Principles of Consolidation—Coto Acquisition LLC
(“Coto”) is a Delaware limited liability company formed in October 2007. The Company had no operations prior to the acquisition of Coto Global Solutions LLC, as discussed in Note 2. The accompanying consolidated financial statements
include the accounts of Coto and its wholly-owned subsidiary, Coto Global Solutions LLC, along with Coto Global Solutions LLC’s three wholly-owned subsidiaries, Tele-Interpreters LLC, Lingo Systems, LLC and Coto Language Services, LLC (all
collectively referred to hereafter as the “Company”) as of December 31, 2008. All significant intercompany accounts and transactions have been eliminated in consolidation. 
 The Company is governed by the terms and conditions of the Limited Liability Company Agreement dated October 23, 2007. The Company is comprised of one member, Coto Holdings LLC. The Company is
authorized to issue 1,000 units. All 1,000 units were issued and outstanding as of December 31, 2008, in exchange for which the Company received a contribution of $10. As part of the business combination as discussed in Note 2, the Company
received additional cash contributions of $40,358,000 and a contribution in-kind of $14,000,000 represented by assets acquired in the purchase business combination from it’s member. Distributions shall be made to the Member at the times and in
the aggregate amounts determined by the Member. The Company shall continue until terminated in accordance with the terms of the Agreement or as provided for by law, including events of dissolution. 
 The Company’s primary revenue source is to provide over-the-phone interpretation (“OPI”) services, from English into over 135 different
languages, 24 hours a day, seven days a week. Such OPI services are provided through its subsidiary, Tele-Interpreters LLC, mainly to the non-English speaking business population in the U.S. and Canada covering various industries such as insurance,
healthcare, financial, utilities and government, providing a cost effective alternative to staffing in-house multilingual capabilities or using face-to-face interpretation. The Company also performs translation of written media for over 65 different
languages through its subsidiary, Lingo Systems, LLC, and further provides face to face interpretation services through its subsidiary, Coto Language Services, LLC. 
 Fiscal Year—The Company’s fiscal year end is December 31. 
 Cash equivalents—Cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased. Typically, the cost of these investments has approximated fair
value. 
 Accrued compensation and interpreter costs—Accrued compensation and interpreter costs are current compensation
obligations due to internal employees and agency interpreters. This includes components of known costs due to agency interpreters as well as accrued estimates for internal employees and agency interpreters. 
 Concentration of Credit Risk—Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash
and cash equivalents and accounts receivable. We are exposed to credit risk in the event of default by the financial institutions where we hold our cash and by any of our customers to the extent of accounts receivable we are owed, in amounts equal
to the carrying value of these assets on the accompanying consolidated balance sheet. Risks associated with cash are mitigated by banking with creditworthy institutions. Concentration of credit risk with respect to trade receivables is limited due
to the significant number of customers and their geographic dispersion. Accounts receivable are generally unsecured. During 2008, one individual customer represented approximately 25% of total revenues. This same customer comprised 27% of the
Company’s total accounts receivable balance at December 31, 2008. Further, five additional customers comprised another 18% of the Company’s accounts receivable balance at December 31, 2008. 
  

 6 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Allowance for Doubtful Accounts—The Company maintains an allowance for doubtful
accounts for estimated losses resulting from the failure of customers to make payment. The allowance is determined based upon an evaluation of individual accounts, aging of the portfolio, issues raised by customers that may suggest non-payment,
historical experience and/or the current economic environment. We evaluate the adequacy of the allowance on a regular basis, modifying, as necessary, its assumptions, updating its record of historical experience and adjusting reserves as
appropriate. The Company classifies bad debt expense as selling, general and administrative expenses in the accompanying consolidated statement of operations. 
 Property and equipment—Property and equipment is recorded at cost. Depreciation on assets is computed using the straight-line method over the estimated useful lives of the assets. The
useful life for property and equipment is within the following ranges: 
  

			
	 	  	 Useful Lives

		
	 Equipment
	  	4-5 years
		
	 Software
	  	3 years
		
	 Furniture and fixtures
	  	5 years
 The shorter of

 useful life or
 initial term of

	 Leasehold improvements
	  	lease

 Long Lived Assets including
intangible assets—The Company follows Statement of Financial Accounting Standards (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. The Company has assessed the
recoverability of long-lived assets, including intangible assets other than goodwill, by determining whether the carrying value of such assets will be recovered through undiscounted future cash flows according to the guidance of SFAS No. 144.
The Company assesses whether it will recognize the future benefit of long-lived assets including intangibles in accordance with the provisions of SFAS No. 144. For assets to be held and used, including acquired intangibles, the Company
initiates its review whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. 
 Factors the Company considers important which could trigger an impairment review include the following: 
  

	 	•	 	 significant negative industry or economic trends; 

  

	 	•	 	 significant loss of customers; 

  

	 	•	 	 significant changes in the manner of our use of the acquired assets or the strategy for our overall business. 

 Recoverability of an asset is measured by comparison of its carrying amount to the expected future undiscounted cash flows (without interest charges) that
the asset is expected to generate. Any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. 
  

 7 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Significant management judgment is required in the forecasting of future operating results which are
used in the preparation of projected discounted cash flows and should different conditions prevail, material write downs of long-lived assets, including intangible assets, could occur. No impairment of intangible assets was recognized in 2008.
Intangible assets are amortized either on a straight line basis or on an accelerated basis over their estimated useful life which is based on historic experience and plans for utilization of the assets by the Company subsequent to the business
combination. 
 Goodwill 
 The Company performed its annual impairment analysis of goodwill as of December 31, 2008, according to the provisions of SFAS 142, “Goodwill and Other Intangible Assets” (“SFAS 142”). The goodwill valuation
analysts is performed based on our respective reporting units, which the Company considers to be its three operating subsidiaries, Tele-Interpreters LLC, Lingo Systems, LLC and Coto Language Services, LLC. These operating entities meet the
definition of a reporting unit one level below an operating segment in accordance with SFAS 142 as each product category constitutes a business for which discrete financial information is available and reviewed by management. 
 SFAS 142 requires that a two-step impairment test is performed on goodwill. In the first step, the fair value of each reporting unit is compared to its
carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to the respective reporting unit, goodwill is not impaired and no further testing is required. If the carrying value of the net assets
assigned to a reporting unit exceeds the fair value of the reporting unit, then the second step of the impairment testing is performed to determine the implied fair value of each reporting unit’s goodwill. The implied fair value of goodwill is
calculated by deducting the fair value of all tangible and intangible assets of the reporting unit, excluding goodwill, from the fair value of the reporting unit as determined in the first step. If the carrying value of a reporting unit’s
goodwill exceeds its implied fair value, then an impairment loss equal to the difference is recorded. 
 Deferred financing
costs—The Company amortizes deferred financing costs using the straight-line method which approximates the effective interest rate method over the terms of the related debt agreement and the corresponding amortization expense is
included in interest expense on the accompanying consolidated statement of operations. 
 Revenues—The Company recognizes
revenue when the services have been performed and all of the following four revenue recognition criteria have been met: 
  

	 	•	 	 Persuasive evidence of an arrangement exists, 

  

	 	•	 	 The service has been rendered, 

  

	 	•	 	 The price is fixed or determinable, and 

  

	 	•	 	 Collection is reasonably assured. 

 Revenue from interpretation services is recognized as interpretation services are performed based on actual time that is tracked for each call at the negotiated rate per minute for the customer. Revenue earned from the
translation/localization of written media is generally recognized at the time the finished product is delivered to the customer. Revenue earned from face to face interpretation services is recognized when the service is performed. In the event cash
is received from customers prior to the Company recognizing the underlying revenue on the contract, the Company records this amount as deferred revenue, which amount is included as a liability in the accompanying consolidated balance sheet.

  

 8 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Costs of services—These costs are primarily; (1) direct costs of personnel
serving as interpreters and call agents, (2) telecommunications expenses for long-distance calls related to providing service to customers, and (3) costs for contractors performing face to face interpretation services, employees, as well
as vendors providing translation of written media on behalf of the Company. 
 Income Taxes—As a limited liability company,
the Company is not subject to U.S. federal or state income taxes; rather, the member of the Company is liable for all income taxes, if any, that result from the operations of the Company. As such, no provision for income taxes has been included in
the accompanying consolidated financial statements. 
 Comprehensive Income (Loss)—SFAS No. 130, “Reporting
Comprehensive Income (Loss)”, requires that the Company report comprehensive income (loss), which includes net income (loss) as well as other changes in assets and liabilities recorded directly to equity, in its financial statements. There
were no components of comprehensive income other than net income for the period from January 10, 2008 through December 31, 2008. 
 Use of Estimates in the Preparation of Financial Statements—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. Such management estimates include the allowance for doubtful accounts receivables,
the useful life of intangible assets, impairment of goodwill and intangible assets, and claims and legal proceedings. Actual results could differ from those estimates. 
 Recently Issued Accounting Pronouncements—In February 2007, the Financial Accounting Standards-Board (“FASB”) issued SFAS No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities — Including an amendment of FASB Statement No. 115” (“SFAS 159”). SFAS No. 159 permits an entity to elect fair value as the initial and subsequent measurement attribute for
many financial assets and liabilities. Entities electing the fair value option would be required to recognize changes in fair value in earnings. Entities electing the fair value option are required to distinguish, on the face of the statement of
financial position, the fair value of assets and liabilities for which the fair value option has been elected and similar assets and liabilities measured using another measurement attribute. SFAS 159 is effective for fiscal years beginning after
November 15, 2007. The adjustment to reflect the difference between the fair value and the carrying amount would be accounted for as a cumulative-effect adjustment to retained earnings as of the date of initial adoption. We elected not to adopt
the fair value option for any financial assets and liabilities. 
 In December 2007, the FASB issued SFAS No. 141 (Revised 2007),
“Business Combinations” (“SFAS 141(R)”). SFAS 141 (R) establishes principles and requirements for how an acquirer in a business combination recognizes and measures in its financial statements the identifiable assets
acquired, liabilities assumed, and any noncontrolling interests in the acquiree, as well as the goodwill acquired. Significant changes from current practice resulting from SFAS 141(R) include the expansion of the definitions of a
“business” and a “business combination.” For all business combinations (whether partial, full or step acquisitions), the acquirer will record 100% of all assets and liabilities of the acquired business, including goodwill,
generally at their fair values; contingent consideration will be recognized at its fair value on the acquisition date and, for certain arrangements, changes in fair value will be recognized in earnings until settlement; and acquisition-related
transaction and restructuring costs will be expensed rather than treated as part of the cost of the acquisition. SFAS 141(R) also establishes disclosure requirements to enable users to evaluate the nature and financial effects of the business
combination. SFAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. Earlier adoption is not permitted.
SFAS 141(R) may have

  

 9 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 
an impact on the Company’s consolidated financial statements when effective in the event a business combination occurs. The nature and magnitude of the specific effects will depend upon the
nature, terms and size of the acquisition consummated after the effective date. 
 In December 2007, the FASB issued SFAS No. 160,
“Noncontrolling Interests in Consolidated Financial Statements — An amendment of ARB No. 51” (“SFAS 160”). SFAS 160 amends Accounting Research Bulletin 51 “Consolidated Financial
Statements” to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary, which is sometimes referred to
as minority interest, is a third-party ownership interest in the consolidated entity that should be reported as a component of equity in the consolidated financial statements. Among other requirements, SFAS 160 requires the consolidated statement of
income to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest. SFAS 160 also requires disclosure on the face of the consolidated statement of income of the amounts of consolidated net
income attributable to the parent and to the noncontrolling interest. SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. Currently, we
do not have any non-controlling interests (ownership interests in a subsidiary that are held by owners other than us) recorded in our financial statements. The adoption of SFAS 160 is not expected to have a material impact on our financial
statements. 
 In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurement” (“SFAS 157”), which
defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosure requirements about fair value measurements. SFAS 157 applies to other accounting pronouncements that require or permit fair value measurements.
The fair value measurement of financial assets and financial liabilities is effective for us beginning in fiscal year 2008. Three FASB Staff Positions (“FSP”) on this statement were subsequently issued. FSP No. 157-1, issued on
February 14, 2008, excluded SFAS No. 13, “Accounting for Leases” (“SFAS 13”), and other accounting pronouncements that address fair value measurements for purposes of lease classification or measurement under SFAS 13.
However, this scope exception does not apply to assets acquired and liabilities assumed in a business combination, which are required to be measured at fair value under SFAS No. 141, “Business Combinations” or SFAS 141(R), regardless
of whether those assets and liabilities are related to leases. This FSP was effective upon our initial adoption of SFAS 157. FSP No. 157-2, issued on February 12, 2008, delayed the effective date of this statement for non-financial assets
and non-financial liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis. This FSP will be effective for us in fiscal year 2009. FSP No. 157-3, issued in October 2008 and effective upon
issuance, clarifies how SFAS 157 should be applied when valuing securities in markets that are not active by illustrating key considerations in determining fair value. Our adoption of this statement in 2008 is limited to financial assets and
liabilities, and did not have a material impact on our consolidated financial position, results of operations or cash flows. The adoption of FSP No. 157-2 is not expected to have a material impact on our financial statements. 
 In April 2008, the FASB issued FSP No. 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP 142-3”). This
FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, Goodwill and Other Intangible Assets. FSP 142-3 applies
to intangible assets that are acquired individually or with a group of other assets after the effective date of either a business combination or an asset acquisition. The intent of this FSP is to improve the consistency between the useful life of a
recognized intangible asset under Statement 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141(R) and other U.S. GAAP. The FSP also contains new disclosure requirements with respect to recognized
intangible assets. This FSP is effective for fiscal years beginning after December 15, 2008. We are currently evaluating the potential impact of this statement. 
  

 10 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting
Principles.” SFAS 162 identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with
U.S. GAAP. SFAS 162 will become effective 60 days following the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity With Generally Accepted
Accounting Principles.” This statement did not result in a change in our current practice. 
 2. Business Combination 
 On January 10, 2008, a purchase agreement was executed by and between Sycamore Services LLC and its sole member (collectively, the “Seller”),
Language Line Holdings, LLC (“LLH”, and the Company’s ultimate parent), Coto (the “Buyer”) and Coto Holdings (Coto’s direct parent), whereby the Buyer acquired all of the member interests in the Seller for consideration
of $80.8 million. 
 The purchase price allocation is based on estimates of fair value of tangible and identifiable assets acquired and
liabilities assumed. The excess purchase consideration is recorded as goodwill. The Company has accounted for this acquisition as a purchase under U.S. GAAP. Under the purchase method of accounting, the assets and liabilities of the acquired entity
were recorded as of the acquisition date, at their respective fair values, and consolidated with the Company. 
 The breakdown of the purchase
price was as follows (in thousands): 
  

				
	 Cash paid to and on behalf of Seller
	  	$	65,000
		
	 Seller paper issued by Company’s parent, Coto Holdings LLC
	  	 	14,000
		
	 Direct Acquisition Costs
	  	 	1,804
		  	 	 
		
	 Total purchase price
	  	$	80,804
		  	 	 

 To fund the $65 million cash consideration paid to and on behalf of the
seller, the Company entered into a long-term debt arrangement for $31 million with a bank that has been recorded in the accompanying consolidated balance sheet, as further discussed in Note 5. The remaining purchase price consideration was funded
the Company’s parent in the form of Seller paper disclosed above, and by Line Holdings II, Inc., a wholly-owned subsidiary of LLH, both of which have been recorded as a contribution to the member’s equity in the Company’s financial
statements. 
  

 11 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Following is an allocation of the purchase price (in thousands): 
  

					
	 Current assets
	  	$	 7,263	  
		
	 Property and equipment & other long-term assets
	  	 	5,236	  
		
	 Intangible assets
	  	 	32,900	  
		
	 Goodwill
	  	 	49,601	  
		  	 	 	 
		
	 Total Assets Acquired
	  	 	95,000	  
		
	 Liabilities assumed
	  	 	(13,321	) 
		
	 Capital lease liability assumed
	  	 	(875	) 
		  	 	 	 
		
	 Net assets acquired
	  	$	80,804	  
		  	 	 	 

 Intangible assets consist of customer relationships, trademarks and trade names and non-compete agreements (see Note 3). The
amount allocated to these intangibles was determined using established valuation techniques. All goodwill was assigned in purchase accounting to one reporting unit of the Company, Tele-Interpreters. Factors that contributed to the recorded amount of
goodwill include but are not limited to established market presence and a trained sales force. 
 The Company and the Seller of Coto Global
Solutions, LLC are currently in dispute with regards to a working capital adjustment of $1.1 million. Pursuant to the terms of Purchase Agreement, this dispute will be reviewed by a third party reviewing accountant who will make a final
determination. The amount of the final determination by the third party reviewing accountant is not considered estimable at December 31, 2008, and as a result, a seller receivable is not reflected in the consolidated financial statements of the
Company. It is expected that a determination by the third party reviewing accountant will be made in 2009, at which time, any proceeds received from the seller as a result will be recorded as a gain. 
 The Company incurred internal costs in connection with this acquisition, which were expensed as incurred. These costs totaled $366,000 and are separately
disclosed in the accompanying consolidated statement of operations for the period from January 10, 2008 through December 31, 2008. 
 The Company has recorded a long-term liability in purchase accounting in the amount of $7.1 million representing the fair value of potential pre-acquisition contingencies. Related to this, a receivable has also been recorded in the same
amount, included in other assets in the accompanying consolidated balance sheet, which reflects insurance coverage in place through insurance companies to cover specified claims reported after the acquisition related to such contingencies existing
at the date of acquisition. 
 Related to the acquisition, the Company began to assess and formulate a plan for the elimination of duplicative
positions, the exit of certain facilities and the termination or modification of certain contractual obligations. The purchase accounting liabilities recorded in connection with these activities were approximately $2.3 million and included
approximately $0.6 million for termination benefits and approximately $1.7 million for ongoing contractual facility obligations. The Company paid $0.6 million and $0.6 million in 2008 related to the termination of benefits and ongoing contractual
facility obligations, respectively. The remaining balance of these liabilities as of December 31, 2008 was approximately $1.1 million, which it is anticipated will be expended by the Company through 2013. 
  

 12 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 3. Intangible Assets and Goodwill 
 Intangible Assets 
 At December 31, 2008, the Company’s acquired intangible assets
are being amortized as follows (dollars in thousands): 
  

												
	 	  	Gross
Carrying
Amount	  	Accumulated
Amortization	  	Net
Carrying
Amount	  	Weighted
Average
Amort. Period
	 	  	 	  	 	  	 	  	(years)
	 Customer relationships - OPI
	  	$	23,600	  	$	4,800	  	$	18,800	  	8
					
	 Customer relationships - face to face
	  	 	600	  	 	330	  	 	270	  	3
					
	 Customer relationships - translation
	  	 	3,800	  	 	1,400	  	 	2,400	  	4
					
	 Technology
	  	 	200	  	 	200	  	 	—  	  	0.5
					
	 Trademark and tradename
	  	 	1,500	  	 	300	  	 	1,200	  	5
					
	 Covenants-not-to-compete
	  	 	3,200	  	 	640	  	 	2,560	  	5
		  	 	 	  	 	 	  	 	 	  	 
		  	$	32,900	  	$	7,670	  	$	25,230	  	7
		  	 	 	  	 	 	  	 	 	  	 

 All customer relationship intangibles are being amortized on an
accelerated basis, whereas all other intangible assets are being amortized on a straight-line basis. The expected future amortization of the acquired intangible assets at December 31, 2008 is as follows (in thousands): 
  

				
	 Year Ending December 31:
	  	 
	 2009
	  	$	6,850
	 2010
	  	 	5,800
	 2011
	  	 	4,740
	 2012
	  	 	3,768
	 2013
	  	 	2,100
	 Thereafter
	  	 	1,972
		  	 	 
	 Total
	  	$	25,230
		  	 	 

 Amortization expense of acquired intangible assets for the period from
January 10, 2008 through December 31, 2008 was approximately $7,670,000. 
  

 13 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Goodwill 
 The goodwill valuation analysis required under SFAS 142 was performed at December 31, 2008 based on our respective reporting units— Tele-Interpreters, Lingo and Coto Language Services. The
Company determined the fair value of the individual reporting units based on the market approach. Under the market approach, the Company estimated the fair value based on market multiples of EBITDA using comparable company market values. The
significant assumptions used in determining fair values of the reporting units using comparable company market values included the determination of appropriate market comparables, and the estimated multiples of EBITDA that a willing buyer is likely
to pay. All goodwill was assigned in purchase accounting to one reporting unit of the Company, Tele-Interpreters (see Note 2). 
 The sum of the
fair values of the Tele-Interpreters, Lingo and Coto Language Services reporting units were reconciled to the Company’s estimated enterprise value at December 31, 2008. The Company determined the estimated fair value on an enterprise basis
based upon a weighting of market and income approaches. Under the market approach the Company estimated the fair value based upon market multiples of EBIT and EBITDA of appropriate market comparables. Under the income approach, the fair value of the
enterprise was measured based on a projected cash flow method using a discount rate determined by Company’s management which is commensurate with the risk inherent in the Company’s current business model. The Company’s discounted cash
flow projections were based on its annual financial forecasts developed internally by management for use in managing the Company’s business, and through discussions with an independent valuation firm. The significant assumptions of these
forecasts included continued revenue growth. 
 Given the current economic environment and the corresponding uncertainties regarding the impact
on the Company’s business, there can be no assurance that the estimates and assumptions made for purposes of the goodwill impairment testing at December 31, 2008 will prove to be accurate predictions of the future. If the Company’s
assumptions regarding forecasted revenue or gross margin rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge
would result or, if it does, whether such charges would be material. The Company believes that the assumptions and rates used in its impairment test under SFAS 142 are reasonable. However, they are judgmental, and variations in any of the
assumptions or rates could result in materially different calculations. Based on its valuation results, the Company determined that the fair value of its reporting unit that carried a goodwill balance at December 31, 2008 continued to exceed
its carrying value. Therefore, the Company has determined that no goodwill impairment charge was required as of December 31, 2008. 
 4.
Property and equipment 
 Property and equipment consists of the following (in thousands): 
  

					
	 	  	December 31, 2008	 
	 Equipment
	  	$	692	  
	 Software
	  	 	281	  
	 Leasehold improvements
	  	 	569	  
	 Furniture and fixtures
	  	 	301	  
		  	 	 	 
	 Subtotal
	  	 	1,843	  
	 Accumulated depreciation and amortization
	  	 	(660	) 
		  	 	 	 
		
	 Property and equipment- net
	  	$	1,183	  
		  	 	 	 

  

 14 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Depreciation and amortization of property and equipment for the period from January 10, 2008
through December 31, 2008 was approximately $660,000. 
 5. Long-Term Debt 
 Concurrent with the merger, on January 10, 2008, the Company, together with Coto Holdings LLC entered into a credit agreement (the “Credit
Agreement”) with a group of lenders, whereby a term loan facility in the maximum amount of $31,000,000 and a revolving credit facility in the aggregate amount of $4,000,000 was made available to the Company. Under the terms of the loan
agreement, the Company may elect either a variable rate of interest (equal to the lender’s “base rate” plus an applicable margin) or a “Eurodollar Rate” loan, which is linked to the LIBOR rate of interest plus an applicable
margin. The applicable margins used to calculate these interest rates are determined based on the Company’s leverage ratio, as defined in the loan agreements. At December 31, 2008, the interest rate in effect was 6.0% for the term loan.

 The Credit Agreement facilities are collateralized by all assets, rights and interests in the property of each the Company and Coto Holdings
LLC, and all of its subsidiaries. The Credit Agreement is collectively guaranteed by Coto Holdings LLC and all its subsidiaries along with Language Line Holdings, LLC and one of its subsidiaries, Language Line Holdings, II, Inc. 
 At December 31, 2008 the maximum amount available under the revolving credit facility was $4.0 million, and no balance was outstanding. This amount is
available for the entire term of the Credit Agreement. At December 31, 2008 $30,225 million was outstanding under the term loan facility. The Credit Agreement matures on January 10, 2013. 
 The term loan is automatically and permanently reduced at the end of each calendar quarter based on a predetermined schedule, with a final balloon payment
due on January 10, 2013 of all remaining unpaid principal remaining on the term loan at that time. In addition to such predetermined reductions, the maximum amount available under the loan agreement will be permanently reduced by, and among
other items or events as defined in the Credit Agreement (1) beginning April 30, 2009, a portion of an annual “excess cash flow” amount, as defined in the Credit Agreement, (2) a portion of net proceeds from the
Company’s issuance of equity securities, a debt financing event or a sale of assets, each as defined in the Credit Agreement. 
 As of
December 31, 2008, principal payments on all long-term debt are due approximately as follows (in thousands): 
  

				
	 Year Ending December 31,
	  	 
	 2009
	  	$	 4,815
	 2010
	  	 	2,325
	 2011
	  	 	2,325
	 2012
	  	 	1,744
	 2013
	  	 	19,393
		  	 	 
		
	 Total
	  	$	30,602
		  	 	 

 Included in the 2009 amounts above are principal payments remaining on
a capital lease obligation in the amount of approximately $377,000, which are payable through September 2009, the conclusion of the lease agreement. The Company amended the lease agreement in April 2008 and recognized a gain of $91,000 which has
been netted against interest expense in the accompanying consolidated statement of operations. 
  

 15 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 6. Retirement Plan 
 The Company has a 401(k) retirement plan under which employees may elect to make tax deferred contributions, to a maximum established annually by the IRS. For employees meeting a six-month service
requirement, the Company matches 100% of the employees’ contributions up to a maximum of 4% of the employees’ contributions. All contributions vest immediately. Company contributions were approximately $150,000 for the period from
January 10, 2008 through December 31, 2008. 
 7. Lease Commitments 
 The Company leases its operating facilities under operating leases that run through 2013. These leases contain certain renewal options that may be exercised
by the Company at the termination of the lease. Future minimum annual lease payments at December 31, 2008 are as follows (in thousands): 
  

				
	 Year Ending December 31
	  	Operating
Leases
		
	 2009
	  	$	935
		
	 2010
	  	 	962
		
	 2011
	  	 	550
		
	 2012
	  	 	458
		
	 2013
	  	 	115
		  	 	 
		
	 Total
	  	$	3,020
		  	 	 

 Subsequent to year end, the Company executed two separate sublease
agreements on two of its operating lease facilities, whereby through 2013 approximately $800,000 of sublease income will be earned by the Company. Of this $800,000, approximately $252,000 will be earned in 2009, $227,000 in 2010, $142,000 in 2011,
$142,000 in 2012, and the remaining $37,000 in 2013. The amounts in the table above have not been netted to reflect these future sublease rentals to be received by the Company for all the periods presented. 
 Rent expense for all operating leases for the period from January 10, 2008 through December 31, 2008 was approximately $869,000. 
 8. Related Party Transactions 
 In
conjunction with the execution of the purchase agreement as described in Note, 2, an affiliate and intercompany services agreement was executed between Coto Holdings, LLC, LLH and its subsidiaries (the “Language Line Companies”, whereby
the Language Line Companies are to provide certain management, interpretation and other defined services to the Company. 
 As consideration for
these management services, the Company is charged a management fee by the Language Line Companies equal to $500,000 per quarter. Management fee expenses incurred by the Company for the period from January 10, 2008 through December 31,
2008, included in selling, general and administrative expenses in the accompanying statements of operations, totaled $1,945,000. 
  

 16 

Table of Contents

 Coto Acquisition LLC and Subsidiaries 
 Notes to Consolidated Financial Statements (Continued) 
  

 Additionally, the Company is charged a fee to reimburse the Language Line Companies for costs it incurs
for providing interpretation services, including interpreter labor, telecommunication, interpreter management and other miscellaneous direct costs. These charges to the Company, included in cost of services for the period from January 10, 2008
through December 31, 2008, totaled $13,127,000. Finally, other charges to the Company for other miscellaneous (indirect) costs included in selling, general and administrative expenses totaled $870,000 for the period from January 10, 2008
through December 31, 2008. At December 31, 2008, the Company owed the Language Line Companies an aggregate of $2,387,000 related to these services and charges. 
 The Company has recorded a receivable from related parties in the amount of approximately $0.1 million due from the Language Line Companies that was repaid subsequent to year end, and $0.1 million due
from the Company’s parent as well as from employees of the Company. 
 9. Contingencies 
 The Company from time to time is a party to certain legal actions arising in the ordinary course of business. Although the ultimate outcome is not presently
determinable, management believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. 
  

 17 

Table of Contents

 Schedule 5.12 
 Subsidiaries 
  

							
	 Current Legal Entities Owned
	  	 Record Owner
	  	 Jurisdiction of
 Incorporation
	  	 No. Shares/Interest

	Language Line Holdings II, Inc.	  	Language Line Holdings LLC	  	Delaware	  	1,000
	Language Line Holdings III, Inc.	  	Language Line Holdings II, Inc.	  	Delaware	  	1,000
	Language Line Holdings, Inc.	  	Language Line Holdings III, Inc.	  	Delaware	  	1,000
	Language Line, Inc.	  	Language Line Holdings, Inc.	  	Delaware	  	1,000
	Language Line, LLC	  	Language Line, Inc.	  	Delaware	  	1,000
	Language Line Services, Inc.	  	Language Line, LLC	  	Delaware	  	1,000
	On Line Interpreters, Inc.	  	Language Line, LLC	  	Illinois	  	1,000
	Envok, LLC	  	Language Line, LLC	  	Delaware	  	1,000
	Language Line Dominican Republic, LLC	  	Language Line, LLC	  	Delaware	  	1,000
	Language Line Panama, LLC	  	Language Line, LLC	  	Delaware	  	1,000
	Language Line Costa Rica, LLC	  	Language Line, LLC	  	Delaware	  	1,000
	Coto Holdings LLC	  	Language Line Holdings II, Inc.	  	Delaware	  	40,000,000 Common
	Coto Holdings LLC	  	Sycamore Services LLC	  	Delaware	  	15,000,000 Preferred
	Coto Acquisition LLC	  	Coto Holdings LLC	  	Delaware	  	1,000
	Coto Global Solutions LLC	  	Coto Acquisition LLC	  	California	  	1,000
	Tele-Interpreters LLC	  	Coto Global Solutions LLC	  	California	  	1,000
	Coto Language Services, LLC	  	Coto Global Solutions LLC	  	California	  	1,000
	Lingo Systems, LLC	  	Coto Global Solutions LLC	  	Oregon	  	1,000
	Language Line Panama Corp.	  	Language Line Panama, LLC	  	Panama	  	2
	Language Line CR, S.A.	  	Language Line Costa Rica, LLC	  	Costa Rica	  	30,000
	Language Line Services Canada, Inc.	  	Language Line, LLC	  	British Columbia	  	100

Table of Contents

							
	 Current Legal Entities Owned
	  	 Record Owner
	  	 Jurisdiction of
 Incorporation
	  	 No. Shares/Interest

	 Language Line Services UK Limited
	  	Language Line Holdings, LLC	  	United Kingdom	  	2
	 Language Line Services UK II Limited
	  	Language Line Services UK Limited	  	United Kingdom	  	2
	 Language Line Limited
	  	Language Line Services UK II Limited	  	United Kingdom	  	331,712 Ordinary, 100 Al Ordinary, 703,188 A2 Ordinary, 100 A Preference, 38,967 Preference
	 Communicandum Limited
	  	Language Line Limited	  	United Kingdom	  	10,549,537
	 LL Shell Limited
	  	Communicandum Limited	  	United Kingdom	  	850,000

  

 5 

Table of Contents

 Schedule 5.13 
 Leased Properties 
  

							
	 Tenant
	  	 Address
	  	 Landlord / Owner
	  	 Description of Lease or Other Documents
 Evidencing Interest

	Language Line, LLC	  	Carretera San Isidro, Km. 17, Santo Domingo Este, Province of Santo Domingo, Dominican Republic	  	Zona Franca San Isidro, S.A.	  	Individual Lease Provisions and Definitions, dated October 15, 2009
				
	Language Line CR, Sociedad Anonima	  	Barreal de Heredia, Costa Rica (CR I)	  	Fondo de Inversion Inmobiliario Multifondos I	  	Leasing Contract, dated May 2, 2008
				
	Language Line CR, S.A.	  	Industrial Park Jone, Cartago, Costa Rica (CR 2)	  	Inversiones Zeta Sociedad Anonima	  	 Contract of Lease, dated April 27, 2004
  
 Additional Contract, dated April 6, 2007

				
	Language Line CR, S.A.	  	Lot 48, Zeta Cartago Industrial Park, Cartago, Costa Rica	  	Bodega Zeta Cuatro Sociedad Anonima	  	 Lease, dated July 19, 2004
  
 (Parking lot lease)

				
	Language Line, Inc.	  	1850 Howard Street, Unit B, Elk Grove Village, IL	  	Burnham Fortune, LLC	  	Multi-Tenant Building Lease, dated February 15, 2006
				
	Lingo Systems, LLC	  	Building No. 7, Pacific Corporate Center, 15115 S.W. Sequoia Parkway, Suite 200, Portland, OR	  	Pacific Realty Associates, L.P.	  	 Office Lease, dated October 23, 2001
  
 Assignment and Assumption of Lease, dated June 12, 2006
  
 First Lease Modification Agreement dated March 23, 2007
  
 Second Lease Modification Agreement, dated October 11, 2007

				
	Tele-Interpreters LLC	  	500 North Brand Boulevard, Suite 1700, Glendale, CA	  	SPUSV5 500 Brand, LP	  	 Office Lease, dated March 18, 2002
  
 First Amendment and Supplement to Lease, dated February 2005
  
 Second Amendment to Lease, dated February 27, 2007
  
 Notice of Lease Assignment, dated December 30, 2008

				
	Tele-Interpreters LLC	  	416 Hudiburg Circle, Suite A, Oklahoma City, OK	  	JCG L.L.C., III	  	 Lease Agreement, dated June 13, 2006
  
 First Amendment to Lease, dated July 13, 2006

Table of Contents

							
	Coto Global Solutions LLC	  	2249 Hollywood Way, Burbank, CA	  	Studio City Land Company	  	Standard Industrial/Commercial Multi-Tenant Lease - Net, dated January 18, 2007
				
	Language Line, LLC	  	Monterey Commerce Center Building #2, 1 Lower Ragsdale Drive, Monterey, CA	  	RRMCC Holdings, LLC	  	Monterey Commerce Center Office Lease Agreement, dated May 6, 2009
				
	Language Line Panama Corporation	  	408 Castle Loop, Corozal Oeste, Ancon, Panama	  	Terminales Portuarios Panamenos, S.A.	  	Lease Agreement, dated November 20, 2006
				
	Language Line Panama, LLC	  	Parque Industrial Costa del Este, Building 113, Panama City	  	Inmobiliaria Marva	  	Lease Agreement No. 001-03, dated May 1, 2003

  

 7 

Table of Contents

 Schedule 5.15(b) 
 UCC and Other Necessary Filings 
 Language Line Holdings LLC:

 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Holdings II, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Holdings III, Inc.: 
 Delaware
Secretary of State 
 Monterey County, CA 
 Language Line Holdings, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA

 Language Line, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Envok, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 On Line Interpreters,
Inc.: 
 Illinois Secretary of State 
 Monterey County, CA 
 Language Line Services, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 

Table of Contents

 Language Line Dominican Republic, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Panama, LLC: 
 Delaware
Secretary of State 
 Monterey County, CA 
 Language Line Costa Rica, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Coto Holdings LLC: 
 Delaware Secretary of State 
 Monterey County, CA

 Coto Acquisition LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Coto Global Solutions LLC: 
 California Secretary of State 
 Monterey County, CA 
 Tele-Interpreters LLC:

 California Secretary of State 
 Monterey County, CA 
 Coto Language Services, LLC: 
 California Secretary of State 
 Monterey County, CA 
 Lingo Systems, LLC: 
 Oregon Secretary of
State 
 Monterey County, CA 
  

 9 

Table of Contents

 Schedule 5.25(b) 
 Organizational Chart 
 See attached. 

Table of Contents

 Language Line Corporate Structure 
 

 

Table of Contents

 Schedule 5.26 
 Existing Indebtedness 
  

	1.	Equipment lease dated November 29, 2006 between Tele-Interpreters LLC and California First Leasing Corporation, as amended prior to the Closing Date. The total
amount of financing approved by this lease is $1,000,000.00 and the total cost of property actually financed by this lease is $875,600. 

  

	2.	Promissory Note Due 2016 dated the Closing Date with Language Line Limited as maker and Language Line, Inc as payee. The total loan amount provided in this agreement is
$22,400,000.00. 

Table of Contents

 Schedule 6.1(d)(i) 
 UCC, Judgment and Tax Lien Searches 
 Language Line Holdings
LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Holdings II, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Holdings III, Inc.: 
 Delaware
Secretary of State 
 Monterey County, CA 
 Language Line Holdings, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA

 Language Line, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Envok, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 On Line Interpreters,
Inc.: 
 Illinois Secretary of State 
 Monterey County, CA 
 Language Line Services, Inc.: 
 Delaware Secretary of State 
 Monterey County, CA 

Table of Contents

 Language Line Dominican Republic, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Language Line Panama, LLC: 
 Delaware
Secretary of State 
 Monterey County, CA 
 Language Line Costa Rica, LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Coto Holdings LLC: 
 Delaware Secretary of State 
 Monterey County, CA

 Coto Acquisition LLC: 
 Delaware Secretary of State 
 Monterey County, CA 
 Coto Global Solutions LLC: 
 California Secretary of State 
 Monterey County, C A 
 Tele-Interpreters
LLC: 
 California Secretary of State 
 Monterey County, CA 
 Coto Language Services, LLC: 
 California Secretary of State 
 Monterey County, CA 
 Lingo Systems, LLC: 
 Oregon Secretary of
State 
 Monterey County, CA 
  

 13 

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 Schedule 7.10 
 Post-Closing Collateral Matters 
 Notwithstanding any representations
and covenants in the Credit Documents to the contrary, the following post-closing matters shall be permitted pursuant to the terms described herein. Except as otherwise stated herein, the applicable Credit Parties shall obtain and deliver to the
Administrative Agent, within the time periods set forth below, to the extent such items have not been delivered as of the Closing Date, the following items; provided, that, in each case, the Administrative Agent may in its sole discretion
extend the number of days for compliance, subject to such conditions as the Administrative Agent may determine (capitalized terms used herein and not defined shall have the meaning assigned thereto in the Credit Agreement): 
  

	1.	Within 30 days after the Closing Date, obtain and deliver a Control Agreement in form and substance reasonably satisfactory to the Administrative Agent, duly
authorized, executed and delivered by the parties thereto, with respect to each Deposit Account, Securities Account and Commodities Account maintained by any Credit Party and denoted on the perfection certificate delivered pursuant to subsection
6.1(m) of the Credit Agreement as a Controlled Account (as defined in the Security Agreement). 

  

	2.	Within 30 days after the Closing Date, with respect to each Leased Property situated in the United States and in which any Credit Party holds any interest, except for
2249 Hollywood Way, Burbank, CA and 500 North Brand Boulevard, Suite 1700, Glendale, CA, the applicable Credit Parties shall use commercially reasonable efforts to obtain and deliver to the Administrative Agent a landlord access agreement
substantially in the form of Exhibit K to the Credit Agreement or Bailee Letter, with such changes as shall be reasonably acceptable to the Administrative Agent; 

  

	3.	Within 7 days after the Closing Date, obtain and deliver binders (or other customary evidence as to obtaining and maintenance by Holdings as the Closing Date of the
insurance described on the perfection certificate delivered pursuant to subsection 6.1(m) of the Credit Agreement) for each policy set forth on such schedule to the extent insuring agent against casualty and other customary risks and naming the
Administrative Agent as an additional insured and/or loss payee. 

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 Schedule 8.2(b) 
 Existing Liens 
  

											
	 DEBTOR
	  	 SECURED PARTY
	  	 JURISDICTION
	  	 FILING
DATE
	  	 FILING NUMBER
	  	 COLLATERAL

	Tele-Interpreters LLC	  	California First Leasing Corporation	  	California	  	11/27/06	  	06-7093216802	  	All personal property related to equipment lease
	Language Line Services, Inc.	  	Tygris Vendor Finance, Inc.	  	Delaware	  	7/10/09	  	2009-2229216	  	All personal property related to equipment lease
	Language Line Services, Inc.	  	US Express Leasing, Inc.	  	Delaware	  	1/17/07	  	2007-0212539	  	All personal property related to equipment lease
	Language Line, LLC	  	US Bancorp	  	Delaware	  	3/6/09	  	2009-0721719	  	One leased IBM copier

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 Schedule 8.6 
 Existing Investments 
  

	1.	Promissory Note Due 2016 dated the Closing Date with Language Line Limited as maker and Language Line, Inc as payee. The total loan amount provided in this agreement is
$20,000,000.00. 

  

	2.	Indemnity Escrow Agreement dated January 10, 2008, by and between Sycamore Services LLC, Coto Acquisition LLC and Sun Trust Bank. The total amount in escrow is
$5,000,000.00. 

  

	3.	California State IOU payable to Language Line Services, Inc. in the amount of $60.25 after October 2, 2009 at an annual interest rate of 3.75%.

  

	4.	California State IOU payable to Language Line Services, Inc. in the amount of $56.09 after October 2, 2009 at an annual interest rate of 3.75%.

  

	5.	California State IOU payable to Language Line Services, Inc. in the amount of $1,723.77 after October 2, 2009 at an annual interest rate of 3.75%.

  

	6.	California State IOU payable to Language Line Services, Inc. in the amount of $50.50 after October 2, 2009 at an annual interest rate of 3.75%.

  

	7.	California State IOU payable to Language Line Services, Inc. in the amount of $1,767.28 after October 2, 2009 at an annual interest rate of 3.75%.

  

	8.	California State IOU payable to Language Line Services, Inc. in the amount of $873.40 after October 2, 2009 at an annual interest rate of 3.75%.

  

	9.	California State IOU payable to Language Line Services, Inc. in the amount of $31.00 after October 2, 2009 at an annual interest rate of 3.75%.

  

	10.	California State IOU payable to Language Line Services, Inc. in the amount of $19.50 after October 2, 2009 at an annual interest rate of 3.75%.

  

	11.	California State IOU payable to Language Line Services, Inc. in the amount of $31.00 after October 2, 2009 at an annual interest rate of 3.75%.

  

	12.	California State IOU payable to Language Line Services, Inc. in the amount of $261.51 after October 2, 2009 at an annual interest rate of 3.75%.

  

	13.	California State IOU payable to Language Line Services, Inc. in the amount of $99.45 after October 2, 2009 at an annual interest rate of 3.75%.

  

	14.	California State IOU payable to Language Line Services, Inc. in the amount of $6,869.25 after October 2, 2009 at an annual interest rate of 3.75%.

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	15.	California State IOU payable to Tele-Interpreters LLC in the amount of $82.27 after August 21, 2009 at an annual interest rate of 3.75%. 

 

	16.	California State IOU payable to Tele-Interpreters LLC in the amount of $517.08 after August 3, 2009 at an annual interest rate of 3.75%. 

 

	17.	California State IOU payable to Tele-Interpreters LLC in the amount of $660.83 after August 5, 2009 at an annual interest rate of 3.75%. 

 

	18.	California State IOU payable to Tele-Interpreters LLC in the amount of $371.31 after August 17, 2009 at an annual interest rate of 3.75%. 

 

	19.	California State IOU payable to Tele-Interpreters LLC in the amount of $94.52 after July 14, 2009 at an annual interest rate of 3.75%. 

  

	20.	California State IOU payable to Tele-Interpreters LLC in the amount of $622.47 after July 7, 2009 at an annual interest rate of 3.75%. 

  

	21.	California State IOU payable to Tele-Interpreters LLC in the amount of $549.46 after July 7, 2009 at an annual interest rate of 3.75%. 

  

	22.	California State IOU payable to Tele-Interpreters LLC in the amount of $131.12 after July 7, 2009 at an annual interest rate of 3.75%. 

  

 17 

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 Schedule 8.12 
 Existing Affiliate Transactions 
  

	1.	Affiliate and Intercompany Services Agreement dated January 10, 2008, by and between Language Line Holdings, LLC, Language Line, LLC, Coto Acquisition LLC and
Sycamore Services, LLC. 

  

	2.	Guaranty Fee of 3.75% per annum from Language Line Holdings, LLC to ABRY Partners as described in Section 4.9 of the Second Amended and Restated Limited
Liability Company Agreement of Language Line Holdings LLC, dated as of January 10, 2008. 

  

	3.	Letter Agreement Concerning Purchase Agreement dated January 10, 2008, by and between Sycamore Services LLC, Language Line Holdings, LLC, Coto Acquisition LLC,
Coto Holdings LLC and Melanie Coto. 

  

	4.	Intercompany Services Agreement dated August 1, 2009, by and between Language Line, LLC on behalf of itself and its subsidiaries and Language Line Limited.

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 EXHIBIT A 
 [Form of] 
 REVOLVING NOTE 
  

			
	 $                    

	  	New York, New York
		  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Language Line, LLC, a Delaware limited liability Company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability company (“Coto” and together with Language Line, the
“Borrowers”), hereby promises to pay to the order of
                                         (the
“Lender”) on the Revolving Credit Termination Date (as defined in the Credit Agreement referred to below) in lawful money of the United States and in immediately available funds, the principal amount of the lesser of
(a)                         DOLLARS
($                    ) and (b) the aggregate unpaid principal amount of all Revolving Credit Loans of the Lender outstanding under the Credit
Agreement referred to below. The Borrowers further agree to pay interest in like money at such office on the unpaid principal amount hereof from time to time from the date hereof at the rates, and on the dates, specified in subsection 4.8 of such
Credit Agreement. 
 The holder of this Note may endorse and attach a schedule to reflect the date, Type and amount of each
Revolving Credit Loan of the Lender outstanding under the Credit Agreement, the date and amount of each payment or prepayment of principal hereof, and the date of each interest rate conversion or continuation pursuant to Section 4.2 of the
Credit Agreement and the principal amount subject thereto; provided that the failure of the Lender to make any such recordation (or any error in such recordation) shall not affect the obligations of the Borrowers hereunder or under the Credit
Agreement. 
 This Note is one of the Notes referred to in the Credit Agreement dated as of November [    ],
2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Borrowers, Language Line Holdings LLC (“Holdings”), the Subsidiary Guarantors, the
Lenders from time to time party thereto, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book-runners, Credit Suisse Securities (USA) LLC, as syndication
agent, Morgan Stanley Senior Funding, Inc., as documentation agent and Bank of America, N.A., as administrative agent for the Lenders is subject to the provisions thereof and is subject to optional and mandatory prepayment in whole or in part as
provided therein. Terms used herein which are defined in the Credit Agreement shall have such defined meanings unless otherwise defined herein or unless the context otherwise requires. 
 This Note is secured and guaranteed as provided in the Credit Agreement and the Security Documents. Reference is hereby made to the Credit
Agreement and the Security Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the terms and conditions upon which the security interest and
each guarantee was granted and the rights of the holder of this Note in respect thereof. 
 Upon the occurrence of any one or
more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable, all as provided therein. 

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 All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other notices of any kind. 
 THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT. TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
 [Signature Page
Follows] 

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	 LANGUAGE LINE, LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 COTO ACQUISITION LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

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 EXHIBIT B 
 [Form of] 
 TRANCHE B TERM NOTE 
  

			
	 $                    

	  	New York, New York
		  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Language Line, LLC, a Delaware limited liability Company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability company (“Coto” and together with Language Line, the
“Borrowers”), hereby promises to pay to the order of
                                         (the
“Lender”) on the Tranche B Maturity Date (as defined in the Credit Agreement referred to below) in lawful money of the United States and in immediately available funds, the principal amount of
                         DOLLARS
($                    ), or, if less, the aggregate unpaid principal amount of all Tranche B Term Loans of the Lender outstanding under the Credit
Agreement referred to below, which sum shall be due and payable in such amounts and on such dates as are set forth in the Credit Agreement. The Borrowers further agree to pay interest in like money at such office on the unpaid principal amount
hereof from time to time from the date hereof at the rates, and on the dates, specified in Section 4.8 of such Credit Agreement. 
 The holder of this Note may endorse and attach a schedule to reflect the date, Type and amount of each Term Loan of the Lender outstanding under the Credit Agreement, the date and amount of each payment or prepayment of principal hereof,
and the date of each interest rate conversion or continuation pursuant to Section 4.2 of the Credit Agreement and the principal amount subject thereto; provided that the failure of the Lender to make any such recordation (or any error in
such recordation) shall not affect the obligations of the Borrowers hereunder or under the Credit Agreement. 
 This Note is one
of the Notes referred to in the Credit Agreement dated as of November [    ], 2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the
Borrowers, Language Line Holdings LLC (“Holdings”), the Subsidiary Guarantors, the Lenders from time to time party thereto, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc.,
as joint lead arrangers and joint book-runners, Credit Suisse Securities (USA) LLC, as syndication agent, Morgan Stanley Senior Funding, Inc., as documentation agent and Bank of America, N.A., as administrative agent for the Lenders is subject to
the provisions thereof and is subject to optional and mandatory prepayment in whole or in part as provided therein. Terms used herein which are defined in the Credit Agreement shall have such defined meanings unless otherwise defined herein or
unless the context otherwise requires. 
 This Note is secured and guaranteed as provided in the Credit Agreement and the
Security Documents. Reference is hereby made to the Credit Agreement and the Security Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the
terms and conditions upon which the security interest and each guarantee was granted and the rights of the holder of this Note in respect thereof. 
 Upon the occurrence of any one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due
and payable all as provided therein. 

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 All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other notices of any kind. 
 THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT. TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
 [Signature Page
Follows] 

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	 LANGUAGE LINE, LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 COTO ACQUISITION LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

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 EXHIBIT C 
 [Form of] 
 SWINGLINE NOTE 
  

			
	 $                    

	  	New York, New York
		  	[Date]

 FOR VALUE RECEIVED,
the undersigned, Language Line, LLC, a Delaware limited liability Company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability company (“Coto” and together with Language Line, the
“Borrowers”), hereby promises to pay to the order of
[                                        ] (the
“Lender”) on the Revolving Credit Termination Date (as defined in the Credit Agreement referred to below), in lawful money of the United States and in immediately available funds, the principal amount of the lesser of (a)
                        
($                     ) and (b) the aggregate unpaid principal amount of all Swingline Loans made by Lender to the undersigned pursuant to
Section 3.4 of the Credit Agreement referred to below. The Borrowers further agree to pay interest on the unpaid principal amount hereof in like money at such office from time to time from the date hereof at the rates and on the dates specified
in Section 4.08 of the Credit Agreement. 
 The holder of this Note may endorse and attach a schedule to reflect the date,
the amount of each Swingline Loan and the date and amount of each payment or prepayment of principal thereof; provided that the failure of Lender to make such recordation (or any error in such recordation) shall not affect the obligations of
the Borrowers hereunder or under the Credit Agreement. 
 This Note is one of the Notes referred to in the Credit Agreement
dated as of November [    ], 2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Borrowers, Language Line Holdings, LLC
(“Holdings”), the Subsidiary Guarantors, the Lenders from time to time party thereto, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint
book-runners, Credit Suisse Securities (USA) LLC, as syndication agent, Morgan Stanley Senior Funding, Inc., as documentation agent and Bank of America, N.A., as administrative agent for the Lenders is subject to the provisions thereof and is
subject to optional and mandatory prepayment in whole or in part as provided therein. Terms used herein which are defined in the Credit Agreement shall have such defined meanings unless otherwise defined herein or unless the context otherwise
requires. 
 This Note is secured and guaranteed as provided in the Credit Agreement and the Security Documents. Reference is
hereby made to the Credit Agreement and the Security Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and guarantees, the terms and conditions upon which
the security interest and each guarantee was granted and the rights of the holder of this Note in respect thereof. 
 Upon the
occurrence of any one or more of the Events of Default specified in the Credit Agreement, all amounts then remaining unpaid on this Note may become, or may be declared to be, immediately due and payable as provided in the Credit Agreement.

 All parties now and hereafter liable with respect to this Note, whether maker, principal, surety, guarantor, endorser or
otherwise, hereby waive presentment, demand, protest and all other notices of any kind. 

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 THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT
AGREEMENT. TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT. 
 THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION. 
 [Signature Page Follows] 

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	 LANGUAGE LINE, LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 COTO ACQUISITION LLC
 as a Borrower

		
	 By:
	 	  

		 	 Name:

		 	 Title:

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 EXHIBIT D 
 [Form of] 
 ASSIGNMENT AND ACCEPTANCE 
 Reference is made to the Credit Agreement dated as of November [    ], 2009 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among Language Line, LLC, a Delaware limited liability company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability
company (“Coto” and together with Language Line, the “Borrowers”), Language Line Holdings LLC, a Delaware limited liability company (“Holdings”), the Subsidiary Guarantors (such term and each other
capitalized term used but not defined herein having the meaning given it in Section 1 of the Credit Agreement), the Lenders, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as Joint
Lead Arrangers and Joint Book-Runners (together and in such capacity, the “Arrangers”), Credit Suisse Securities (USA) LLC, as Syndication Agent (in such capacity, the “Syndication Agent”), Morgan Stanley Senior
Funding, Inc., as Documentation Agent and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”) for the Lenders. 
 1. [Name of Assignor] (the “Assignor”) hereby sells and assigns, without recourse, to the Assignee, and the Assignee hereby
purchases and assumes, without recourse, from the Assignor, effective as of the Closing Date set forth below (but not prior to the registration of the information contained herein in the Register pursuant to Section 11.6(d) of the Credit
Agreement), the interests set forth below (the “Assigned Interest”) in the Assignor’s rights and obligations under the Credit Agreement and the other Credit Documents, including, without limitation, the Swingline Commitment,
Revolving Credit Commitment, Term Loan Commitments and the Term Loans, Swingline Loans, Revolving Credit Loans and participations held by the Assignor in Letters of Credit which are outstanding on the Closing Date. From and after the Closing Date
(i) the Assignee shall be a party to and be bound by the provisions of the Credit Agreement and, to the extent of the interests assigned by this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and under the
Credit Documents and (ii) the Assignor shall, to the extent of the interests assigned by this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement. 
 2. The Assignor (i) warrants that it is the legal and beneficial owner of the interest being assigned hereby free and clear of any
adverse claim and that its Commitments, and the outstanding balances of its Loans, without giving effect to assignments thereof which have not become effective, are as set forth in this Assignment and Acceptance; (ii) except as set forth in
(i) above, the Assignor makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit Agreement, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement, any other Credit Document or any other instrument or document furnished pursuant thereto, or the financial condition of Holdings or any of its Subsidiaries or the performance
or observance by Holdings or any of its Subsidiaries of any of its obligations under the Credit Agreement, any other Credit Document or any other instrument or document furnished pursuant thereto. 
 3. The Assignee (a) represents and warrants that it is legally authorized to enter into this Assignment and Acceptance;
(b) confirms that it has received a copy of the Credit Agreement, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (c) agrees
that it will, independently and without reliance upon the Assignor, the Administrative Agent or any other Lender and based on such documents

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and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Credit Documents or any
other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the other
Credit Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be
bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. 
 4. This Assignment and Acceptance is being delivered to the Administrative Agent together with (i) if the Assignee is not a United
States Person (as defined in Section 770 I(a)(30) of the Code), the forms specified in subsection 4.14(d)(iv) of the Credit Agreement, duly completed and executed by such Assignee; (ii) if the Assignee is not already a Lender under the
Credit Agreement, an Administrative Questionnaire in the form of Exhibit A hereto, and (iii) a processing and recordation fee of $3,500, if required under the Credit Documents. 
 5. This Assignment and Acceptance shall be construed in accordance with and governed by the law of the State of New York without regard to
conflicts of law principles that would require the application of the laws of another jurisdiction. 
 6. Date of Assignment:
                                         
        
 7. Legal Name of Assignor:
                                         
        
 8. Legal Name of Assignee:
                                         
        
 9. Assignee’s Address for Notices:
                                         
        
 10. Closing Date of Assignment (may not be fewer than 3 Business Days after the
Date of Assignment unless the Administrative Agent shall otherwise agree): 
 11. Percentage Assigned of Applicable
Loan/Commitment: 
  

						
	 Loan/Commitment
	  	Principal Amount
Assigned	  	Percentage Assigned of
Applicable Loan/Commitment
(set forth, to at least 8 decimals,
as a percentage of the Loan and
the aggregate Commitments of
all
Lenders thereunder)	 
			
	 Tranche B Loans
	  	$             	  	             	% 
			
	 Revolving Loans
	  	$	  	             	% 
			
	 Letters of Credit
	  	$	  	             	% 
			
	 Swingline Loans
	  	$	  	             	% 

 [Signature Page
Follows] 
  

 -2- 

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	 	 	The terms set forth above are hereby agreed to:
			
		 	    [	 	] ,
		 	    as Assignor	 	
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
			
		 	    [	 	],
		 	    as Assignee	 	
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

			
	 Accepted:*

	
	LANGUAGE LINE, LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	COTO ACQUISITION LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	 BANK OF AMERICA, N.A.
     as Administrative Agent

		
	By:	 	  

		 	Name:
		 	Title:

  

	*	To be completed to the extent consent is required under Section 11.6(b) of the Credit Agreement. 

  

 -3- 

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 Exhibit A 
 Administrative Questionnaire 
 See attached. 

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 ADMINISTRATIVE DETAILS REPLY FORM 
 A. CONFIDENTIAL 
  
  
 I. Borrower Name: Language Line, LLC and Coto
Acquisition LLC 
 $                     [Swing Line] [Term] [Revovling Credit] Loan 
  

			
	II. Legal Name of Lender for Signature Page:	  	  

		
	III. Name of Lender for any eventual tombstone:	  	  

		
	IV. Address:	  	
	  
	  	  

		
	  
	  	  

  

	 	(a)	VI. Contact Information: 

  

							
	 	  	 Credit Contact
	  	 Operations Contact
	  	 Legal Counsel

				
	Name:	  	  
	  	  
	  	  

	Title:	  	  
	  	  
	  	  

	Address:	  	  
	  	  
	  	  

		  	  
	  	  
	  	  

		  	  
	  	  
	  	  

	Telephone:	  	  
	  	  
	  	  

	Facsimile:	  	  
	  	  
	  	  

	E Mail Address	  	  
	  	  
	  	  

				
	 	  	 Bid Contact
	  	 Draft Documentation Contact
	  	 
				
	Name:	  	  
	  	  
	  	  

	Title:	  	  
	  	  
	  	  

	Address:	  	  
	  	  
	  	  

		  	  
	  	  
	  	  

		  	  
	  	  
	  	  

	Telephone:	  	  
	  	  
	  	  

	Facsimile:	  	  
	  	  
	  	  

	E Mail Address	  	  
	  	  
	  	  

	
	VII. Lender’s Fed Wire Payment Instructions:
		
	Pay to:	  	  

  
  
  

					
	

	  	I - 2	  	

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 ADMINISTRATIVE DETAILS REPLY FORM 
 A. CONFIDENTIAL 
  
  
  

			
	  

	(Name of Lender)
	
	  

	(ABA#)	  	(City/State)
	
	  

	(Account #)	  	(Account Name)
	
	  

	(Attention)

  

			
	Borrower Name:	  	Language Line, LLC and Coto Acquisition LLC
		  	$                     [Swing Line] [Term] [Revovling Credit]
Loan

 VIII. Organizational Structure: 
  

			
	Foreign Br., organized under which laws, etc.	  	  

		
	Lender’s Tax ID:	  	  

 Tax withholding Form Attached (For Foreign Buyers) 
  

					
	 ̈	  	Form W-9
		
	 ̈	  	Form W-8
		
	 ̈	  	Form 4224 effective:
                                        

		
	 ̈	  	Form 1001
			
	 ̈	  	W/Hold                     %	 	Effective
                                        

		
	 ̈	  	Form 4224 on file with Bank of America from previous current years transaction
                                        

 lX. Bank of America Payment Instructions: 
  

			
	Servicing Site:	  	Dallas, Tx
		
	Pay to:	  	Bank of America, N.A.
		  	ABA #026009593
		  	New York, NY
		  	Acct. # 1292000883
		  	ATTN: Large Corporate Loans
		  	Ref: Language Line, LLC and Coto Acquisition LLC

  

			
	X. Name of Authorized Officer:	 	  

		
	Name:	 	  

		
	Signature:	 	  

		
	Date:	 	  

  
  
  

					
	

	  	I - 3	  	

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 EXHIBIT E 
 See Tab 4 

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 EXHIBIT F 
 FORM OF 
 L/C PARTICIPATION CERTIFICATE 
 [Date] 
 [Name of Participating
Lender] 
 [Address of Participating Lender] 
 Dear Sirs: 
 Pursuant to subsection 3.8(b) of the Credit Agreement, dated as of November [    ],
2009 (as amended, modified or supplemented from time to time, the “Credit Agreement”), among Language Line, LLC and Coto Acquisition LLC (the “Borrowers”), Language Line Holdings LLC, the several Subsidiary
Guarantors party thereto, the several lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, the undersigned hereby acknowledges receipt from you on the date hereof of the L/C Participating Interest in the amount
of                                         
($                    ) in the following Letter of Credit and the L/C Application relating thereto: 
 [Describe Letter of Credit (i.e., Letter of Credit number, face amount, date of issuance and beneficiary)] 
  

			
	Very truly yours,
	
	[                    ],
	as Issuing Lender
		
	By:	 	  

		 	Name:
		 	Title:

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 EXHIBIT G 
 [The aggregate maximum principal amount of indebtedness that may be secured hereby is 
 $[            ].]1 
  
  
  
 MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, 
 SECURITY AGREEMENT AND FIXTURE FILING 
 BY 
 [                    ], 
 as Mortgagor, 
 TO

 Bank of America, N.A, 
 as Administrative Agent, 
 Mortgagee 
  
  
 Dated as of [                ], 2009 
 Relating to Premises in: 
 [                    ] County,
[                    ] 
  
  
  
 This instrument was prepared in consultation with 
 counsel in the state in which the Mortgaged Property is 
 located by the attorney
named below and after 
 recording please return to: 
 Athy A. Mobilia, Esq. 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New
York, NY 10005 
  
  
  

	1	 TO BE INCLUDED ONLY IN MORTGAGE RECORDING TAX STATES. 

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 TABLE OF CONTENTS 
  

					
	 	  	 	 	Page
			
	 PREAMBLE
	  		 	1
			
	 RECITALS
	  		 	1
			
	 AGREEMENT
	  		 	2
		
	ARTICLE I.	 	
		
	DEFINITIONS AND INTERPRETATION	 	
			
	 SECTION 1.1.
	  	Definitions	 	2
	 SECTION 1.2.
	  	Interpretation	 	6
		
	ARTICLE II.	 	
		
	GRANTS AND OBLIGATIONS	 	
			
	 SECTION 2.1.
	  	Grant of Mortgaged Property	 	6
	 SECTION 2.2.
	  	Assignment of Leases and Rents	 	7
	 SECTION 2.3.
	  	Obligations	 	8
	 SECTION 2.4.
	  	Future Advances	 	8
	 SECTION 2.5.
	  	Maximum Amount of Indebtedness	 	8
	 SECTION 2.6.
	  	Last Dollar Secured	 	8
	 SECTION 2.7.
	  	No Release	 	8
		
	ARTICLE III.	 	
		
	REPRESENTATIONS AND WARRANTIES OF MORTGAGOR	 	
			
	 SECTION 3.1.
	  	Incorporation of Credit Agreement	 	9
	 SECTION 3.2.
	  	Warranty of Title	 	9
	 SECTION 3.3.
	  	Condition of Mortgaged Property	 	9
	 SECTION 3.4.
	  	Charges	 	10
	 [SECTION 3.5.
	  	Leases	 	10
		
	ARTICLE IV.	 	
		
	CERTAIN COVENANTS OF MORTGAGOR	 	
			
	 SECTION 4.1.
	  	Payment and Performance	 	11
	 SECTION 4.2.
	  	Title	 	11
	 SECTION 4.3.    
	  	Limitation on Liens; Transfer Restrictions	 	12

  

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	 SECTION 4.4.
	 	Insurance	  	13
		
	ARTICLE V.	  	
		
	CONCERNING ASSIGNMENT OF LEASES AND RENTS	  	
			
	 SECTION 5.1.
	 	Present Assignment; License to the Mortgagor	  	13
	 SECTION 5.2.
	 	Collection of Rents by the Mortgagee	  	14
	 SECTION 5.3.
	 	Irrevocable Interest	  	14
		
	ARTICLE VI.	  	
		
	TAXES AND CERTAIN STATUTORY LIENS	  	
			
	 SECTION 6.1.
	 	Payment of Charges	  	15
	 SECTION 6.2.
	 	Stamp and Other Taxes	  	15
	 SECTION 6.3.
	 	Certain Tax Law Changes	  	15
	 SECTION 6.4.
	 	Proceeds of Tax Claim	  	15
		
	ARTICLE VII.	  	
		
	CASUALTY EVENTS AND RESTORATION	  	
			
	 SECTION 7.1.
	 	Casualty Event	  	15
	 SECTION 7.2.
	 	Condemnation	  	16
	 SECTION 7.3.
	 	Restoration	  	16
		
	ARTICLE VIII.	  	
		
	EVENTS OF DEFAULT AND REMEDIES	  	
			
	 SECTION 8.1.
	 	Remedies in Case of an Event of Default	  	16
	 SECTION 8.2.
	 	Sale of Mortgaged Property if Event of Default Occurs; Proceeds of Sale	  	17
	 SECTION 8.3.
	 	Additional Remedies in Case of an Event of Default	  	18
	 SECTION 8.4.
	 	Legal Proceedings After an Event of Default	  	19
	 SECTION 8.5.
	 	Remedies Not Exclusive	  	19
		
	ARTICLE IX.	  	
		
	SECURITY AGREEMENT AND FIXTURE FILING	  	
			
	 SECTION 9.1.
	 	Security Agreement	  	20
	 SECTION 9.2.    
	 	Fixture Filing	  	20

  

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	ARTICLE X.	  	
		
	FURTHER ASSURANCES	  	
			
	 SECTION 10.1.
	 	Recording Documentation To Assure Security	  	21
	 SECTION 10.2.
	 	Further Acts	  	21
	 SECTION 10.3.
	 	Additions to Mortgaged Property	  	22
	 SECTION 10.4.
	 	Additional Security	  	22
		
	ARTICLE XI.	  	
		
	MISCELLANEOUS	  	
			
	 SECTION 11.1.
	 	Covenants To Run with the Land; Joint and Several	  	22
	 SECTION 11.2.
	 	No Merger	  	23
	 SECTION 11.3.
	 	Concerning Mortgagee	  	23
	 SECTION 11.4.
	 	Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact	  	24
	 SECTION 11.5.
	 	Continuing Security Interest; Assignment	  	24
	 SECTION 11.6.
	 	Termination; Release	  	25
	 SECTION 11.7.
	 	Modification in Writing	  	25
	 SECTION 11.8.
	 	Notices	  	25
	 SECTION 11.9.
	 	GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL	  	25
	 SECTION 11.10.
	 	Severability of Provisions	  	26
	 SECTION 11.11.
	 	Relationship	  	26
	 SECTION 11.12.
	 	No Credit for Payment of Taxes or Impositions	  	26
	 SECTION 11.13.
	 	No Claims Against the Mortgagee	  	26
	 SECTION 11.14.
	 	Mortgagee’s Right To Sever Indebtedness	  	27
		
	ARTICLE XII.	  	
		
	LEASES	  	
			
	 SECTION 12.1.
	 	Mortgagor’s Affirmative Covenants with Respect to Leases	  	28
	 SECTION 12.2.
	 	Mortgagor’s Negative Covenants with Respect to Leases	  	28
		
	ARTICLE XIII.	  	
		
	LOCAL LAW PROVISIONS	  	
		
	 SIGNATURE
	  	
		
	 ACKNOWLEDGMENTS
	  	
			
	 SCHEDULE A
	 	Legal Description	  	
	 SCHEDULE B
	 	Leases	  	

  

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 MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY 
 AGREEMENT AND FIXTURE FILING 
 THIS MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this “Mortgage”), is entered into as of
[                     ], 2009 by
[                    ], a [state type and jurisdiction of entity] having an office at [insert address of mortgagor], as mortgagor, assignor and
debtor (in such capacities and together with any successors in such capacities, the “Mortgagor”), in favor of Bank of America, N.A., a national banking association having an office at
[                    ], in its capacity as administrative agent for the Secured Parties, as mortgagee, assignee and secured party (in such capacities
and together with any successors in such capacities, the “Mortgagee”). 
 R E C I
T A L S : 
 A. Pursuant to that certain Senior Secured Credit Agreement, dated November
[    ], 2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; which term shall also include and refer to any increase in the amount of indebtedness
under the Credit Agreement and any refinancing or replacement of the Credit Agreement (whether under a bank facility, securities offering or otherwise) or one or more successor or replacement facilities whether or not with a different group of
agents or lenders (whether under a bank facility, securities offering or otherwise) and whether or not with different obligors upon the Administrative Agent’s acknowledgment of the termination of the predecessor Credit Agreement), among
Language Line, LLC, a Delaware limited liability company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability company (together with Language Line, the “Borrowers”), Language Line Holdings LLC
(“Holdings”), the Subsidiary Guarantors party thereto, the several lenders from time to time party thereto (the “Lenders”), Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley
Senior Funding, Inc. as Joint Lead Arrangers and Book-Runners, Credit Suisse Securities (USA) LLC as Syndication Agent, Morgan Stanley Senior Funding, Inc. as Documentation Agent and Bank of America, N.A. as Administrative Agent for the Lenders (in
such capacity, the “Administrative Agent”), the Lenders have agreed to make to or for the account of the Borrowers certain Loans and issue certain Letters of Credit. 
 [B. The Borrowers own, directly or through its Subsidiaries, all of the issued and outstanding shares of the Mortgagor.] 
 [C. The Mortgagor has, pursuant to Section 7.9 of the Credit Agreement, among other things, guaranteed the obligations of the Borrowers
under the Credit Agreement and the other Credit Documents.] 
 D. The Mortgagor will receive substantial benefits from the
execution, delivery and performance of the obligations under the Credit Agreement and the other Credit Documents and is, therefore, willing to enter into this Mortgage. 
 E. The Mortgagor is the legal owner of the Mortgaged Property. 

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 F. It is a requirement of (i) the obligations of the Lenders to make the Loans under
the Credit Agreement, (ii) the obligations of the Issuing Lender to issue Letters of Credit and (iii) the performance of the obligations of the Secured Parties under the Credit Documents Hedge Agreements and Interest Rate Agreements, if
any, that the Mortgagor execute and deliver the applicable Credit Documents, including this Mortgage. 
 G. This Mortgage is
given by the Mortgagor in favor of the Mortgagee for its benefit and the benefit of the other Secured Parties to secure the payment and performance of all of the Obligations. 
 A G R E E M E N T : 
 NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Mortgagor hereby covenants and agrees
with the Mortgagee as follows: 
 ARTICLE 1. 
 DEFINITIONS AND INTERPRETATION 
 SECTION 1.1. Definitions.
Capitalized terms used but not otherwise defined herein that are defined in the Credit Agreement shall have the meanings given to them in the Credit Agreement, including the following: 
 “Affiliate”; “Commitment”; “Credit Documents”; “Credit
Parties”; “Event of Default”; “Governmental Authority”; “Hedge Agreements”; “Interest Rate Agreements”; “Letters of Credit”; “Lenders”;
“Lien”; “Loans”; “Net Proceeds”; “Obligations”; “Secured Parties” and “Security Documents”. 
 following terms in this Mortgage shall have the following meanings: 
 “Administrative Agent” shall have the meaning assigned to such term in Recital A hereof. 
 “Allocated Indebtedness” shall have the meaning assigned to such term in Section 11.14(i) hereof. 
 “Allocation Notice” shall have the meaning assigned to such term in Section 11.14(i) hereof. 
 “Bankruptcy Code” shall have the meaning assigned to such term in Section 5.1(ii) hereof. 
 “Borrowers” shall have the meaning assigned to such term in Recital A hereof. 
  

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 “Casualty Event” shall mean any loss of title or any loss of or damage to
or destruction of, or any condemnation or other taking of the Mortgaged Property (including but not limited to any taking of all or any part of the Mortgaged Property in or by condemnation or other eminent domain proceedings pursuant to any law, or
by reason of the temporary requisition of the use or occupancy of all or any part of the Mortgaged Property by any Governmental Authority, civil or military, or any settlement in lieu thereof). 
 “Charges” shall mean any and all present and future real estate, property and other taxes, assessments and special
assessments, levies, fees, all water and sewer rents and charges and all other governmental charges imposed upon or assessed against, and all claims (including, without limitation, claims for landlords’, carriers’, mechanics’,
workmen’s, repairmen’s, laborer’s, materialmen’s, suppliers’ and warehousemen’s Liens and other claims arising by operation of law) judgments or demands against, all or any portion of the Mortgaged Property or other
amounts of any nature which, if unpaid, might result in or permit the creation of, a Lien on the Mortgaged Property or which might result in foreclosure of all or any portion of the Mortgaged Property. 
 “Collateral” shall have the meaning assigned to such term in Section 11.14(i) hereof. 
 “Contracts” shall mean, collectively, any and all right, title and interest of the Mortgagor in and to any and all
contracts and other general intangibles relating to the Mortgaged Property and all reserves, deferred payments, deposits, refunds and claims of every kind, nature or character relating thereto. 
 “Credit Agreement” shall have the meaning assigned to such term in Recital A hereof. 
 “Default Rate” shall mean the rate of interest payable pursuant to the provisions of Section 4.8(c) of the Credit
Agreement 
 “Fixtures” shall mean all machinery, apparatus, equipment, fittings, fixtures, improvements and
articles of personal property of every kind, description and nature whatsoever now or hereafter attached or affixed to the Land or any other Improvement used in connection with the use and enjoyment of the Land or any other Improvement or the
maintenance or preservation thereof, which by the nature of their location thereon or attachment thereto are real property or fixtures under the UCC or any other applicable law including, without limitation, all HVAC equipment, boilers, electronic
data processing, telecommunications or computer equipment, refrigeration, electronic monitoring, power, waste removal, elevators, maintenance or other systems or equipment, utility systems, fire sprinkler and security systems, drainage facilities,
lighting facilities, all water, sanitary and storm sewer, drainage, electricity, steam, gas, telephone and other utility equipment and facilities, pipes, fittings and other items of every kind and description now or hereafter attached to or located
on the Land. 
 “Flood Insurance Laws” means, collectively, (i) the National Flood Insurance Act of 1968
as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the

  

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National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto and (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or
any successor statute thereto. 
 “Holdings” shall have the meaning assigned to such term in Recital A hereof.

 “Improvements” shall mean all buildings, structures and other improvements of every kind or description and
any and all alterations now or hereafter located, attached or erected on the Land, including, without limitation, (i) all Fixtures, (ii) all attachments, railroad tracks, foundations, sidewalks, drives, roads, curbs, streets, ways, alleys,
passages, passageways, sewer rights, parking areas, driveways, fences and walls and (iii) all materials now or hereafter located on the Land intended for the construction, reconstruction, repair, replacement, alteration, addition or improvement
of or to such buildings, Fixtures, structures and improvements, all of which materials shall be deemed to be part of the Improvements immediately upon delivery thereof on the Land and to be part of the Improvements immediately upon their
incorporation therein. 
 “Insurance Policies” means the insurance policies and coverages required to be
maintained by the Mortgagor with respect to the Mortgaged Property pursuant to the Credit Agreement. 
 “Land”
shall mean the land described in Schedule A annexed to this Mortgage, together with all of the Mortgagor’s reversionary rights in and to any and all easements, rights-of-way, strips and gores of land, waters, water courses, water rights,
mineral, gas and oil rights and all power, air, light and other rights, estates, titles, interests, privileges, liberties, servitudes, licenses, tenements, hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining
thereto, or any part thereof, or which hereafter shall in any way belong, relate or be appurtenant thereto and together with any greater or additional estate therein as may be acquired by the Mortgagor. 
 “Landlord” shall mean any landlord, lessor, sublandlord, sublessor, franchisor, licensor or grantor, as applicable.

 “Landlord’s Interest” shall have the meaning assigned to such term in Section 2.2 hereof.

 “Language Line” shall have the meaning assigned to such term in Recital A hereof. 
 “Leases” shall mean, collectively, any and all interests of the Mortgagor, as Landlord, in all leases and subleases of
space, tenancies, franchise agreements, licenses, occupancy agreements or concession agreements now existing or hereafter entered into, whether or not of record, relating in any manner to the Premises and any and all amendments, modifications,
supplements, replacements, extensions and renewals of any thereof, whether now in effect or hereafter coming into effect. 
 “Mortgage” shall have the meaning assigned to such term in the Preamble hereof. 
  

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 “Mortgaged Property” shall have the meaning assigned to such term in
Section 2.1 hereof. 
 “Mortgagee” shall have the meaning assigned to such term in the Preamble hereof.

 “Mortgagor” shall have the meaning assigned to such term in the Preamble hereof. 
 “Permit” shall mean any and all permits, certificates, approvals, authorizations, consents, licenses, variances, franchises
or other instruments, however characterized, of any Governmental Authority (or any person acting on behalf of a Governmental Authority) now or hereafter acquired or held, together with all amendments, modifications, extensions, renewals and
replacements of any thereof issued or in any way furnished in connection with the Mortgaged Property including, without limitation, building permits, certificates of occupancy, environmental certificates, industrial permits or licenses and
certificates of operation. 
 “Permitted Collateral Liens” shall mean the Liens described in Section 8.2
of the Credit Agreement. 
 “Premises” shall mean, collectively, the Land and the Improvements. 
 “Proceeds” shall mean, collectively, any and all cash proceeds and noncash proceeds and shall include all (i) proceeds
of the conversion, voluntary or involuntary, of any of the Mortgaged Property or any portion thereof into cash or liquidated claims, (ii) proceeds of any insurance, indemnity, warranty, guaranty or claim payable to the Mortgagee or to the
Mortgagor from time to time with respect to any of the Mortgaged Property, (iii) payments (in any form whatsoever) made or due and payable to the Mortgagor from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any portion of the Mortgaged Property by any Governmental Authority (or any person acting on behalf of a Governmental Authority), (iv) products of the Mortgaged Property and (v) other amounts from time to
time paid or payable under or in connection with any of the Mortgaged Property including, without limitation, refunds of real estate taxes and assessments, including interest thereon. 
 “Property Material Adverse Effect” shall mean a Material Adverse Effect (as such term is defined in the Credit Agreement).

 “Records” shall mean, collectively, any and all right, title and interest of the Mortgagor in and to any and
all drawings, plans, specifications, file materials, operating and maintenance records, catalogues, tenant lists, correspondence, advertising materials, operating manuals, warranties, guarantees, appraisals, studies and data relating to the
Mortgaged Property or the construction of any alteration relating to the Premises or the maintenance of any Permit. 
 “Rents” shall mean, collectively, any and all rents, additional rents, royalties, cash, guaranties, letters of credit, bonds, sureties or securities deposited under any Lease to secure performance of the Tenant’s
obligations thereunder, revenues, earnings, profits and income, advance rental payments, payments incident to assignment, sublease or surrender of a Lease, claims for forfeited deposits and claims for damages, now due or hereafter to become due,
with

  

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respect to any Lease, any indemnification against, or reimbursement for, sums paid and costs and expenses incurred by the Mortgagor under any Lease or otherwise, and any award in the event of the
bankruptcy of any Tenant under or guarantor of a Lease. 
 “Requirements of Law” shall mean, collectively, any
and all requirements of any Governmental Authority including, without limitation, any and all orders, decrees, determinations, laws, treaties, ordinances, rules, regulations or similar statutes or case law. 
 “Secured Amount” shall have the meaning assigned to such term in Section 2.5 hereof. 
 “Tenant” shall mean any tenant, lessee, sublessee, franchisee, licensee, grantee or obligee, as applicable. 
 “UCC” shall mean the Uniform Commercial Code as in effect on the date hereof in the state in which the Premises are
located; provided, however, that if the creation, perfection or enforcement of any security interest herein granted is governed by the laws of any other state as to the matter in question, “UCC” shall mean the Uniform
Commercial Code in effect in such state. 
 “UCC Collateral” shall mean that portion of the Mortgaged Property
that constitutes personal property in which a security interest may be created under Article 9 of the UCC. 
 SECTION 1.2.
Interpretation. The rules of construction set forth in Section 1.2 of the Credit Agreement shall be applicable to this Mortgage mutatis mutandis. 
 ARTICLE II. 
 GRANTS AND OBLIGATIONS 
 SECTION 2.1. Grant of Mortgaged Property. In order to secure the due and punctual payment and performance of all of the Obligations for the
benefit of the Secured Parties, the Mortgagor hereby grants, mortgages, bargains, sells, assigns, transfers and conveys to the Mortgagee, and hereby grants to the Mortgagee a security interest in and lien upon, all of the Mortgagor’s estate,
right, title and interest in, to and under all of the following described property, whether now owned or held or hereafter acquired from time to time (collectively, the “Mortgaged Property”): 
 (1) Land; 
 (2) Improvements; 
 (3) Leases; 
 (4) Rents; 
 (5) Permits; 
  

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 (6) Contracts; 
 (7) Records; and 
 (8) Proceeds; 
 TO HAVE AND TO HOLD the Mortgaged Property, together with all estate, right,
title and interest of the Mortgagor and anyone claiming by, through or under the Mortgagor in and to the Mortgaged Property and all rights and appurtenances relating thereto, unto the Mortgagee, its successors and assigns, for the benefit of the
Secured Parties for the purpose of securing the payment and performance in full of all the Obligations. 
 Notwithstanding the foregoing
provisions of this Section 2.1, Mortgaged Property shall not include a grant of any of the Mortgagor’s right, title or interest in any Contract or Permit or non-cash Proceeds (x) that validly prohibits the creation by the
Mortgagor of a security interest therein and (y) to the extent, but only to the extent that, any Requirement of Law applicable thereto prohibits the creation of a security interest therein; provided, however, that the right to
receive any payment of money or any other right referred to in Sections 9-406(d), 9-407(a) or 9-408(a) of the UCC to the extent that such Sections are effective to limit the prohibitions described in clauses (x) and
(y) of this Section 2.1 shall constitute Mortgaged Property hereunder; and provided, further, that at such time as any Contract or Permit described in clauses (x) and (y) of this Section 2.1 is no
longer subject to such prohibition, such applicable Contract or Permit shall (without any act or delivery by any person) constitute Mortgaged Property hereunder. 
 SECTION 2.2. Assignment of Leases and Rents. As additional security for the payment and performance in full of the Obligations and subject to the provisions of Article V hereof, the Mortgagor
absolutely, presently, unconditionally and irrevocably assigns, transfers and sets over to the Mortgagee, and grants to the Mortgagee, all of the Mortgagor’s estate, right, title, interest, claim and demand, as Landlord, under any and all of
the Leases including, without limitation, the following (such assigned rights, the “Landlord’s Interest”): 
 (1) the immediate and continuing right to receive and collect Rents payable by the Tenants pursuant to the Leases; 
 (2) all claims, rights, powers, privileges and remedies of the Mortgagor, whether provided for in the Leases or arising by
statute or at law or in equity or otherwise, consequent on any failure on the part of the Tenants to perform or comply with any term of the Leases; 
 (3) all rights to take all actions upon the happening of a default under the Leases as shall be permitted by the Leases or by law including, without limitation, the commencement, conduct and consummation
of proceedings at law or in equity; and 
 (4) the full power and authority, in the name of the Mortgagor or
otherwise, to enforce, collect, receive and receipt for any and all of the foregoing and to take all other actions whatsoever which the Mortgagor, as Landlord, is or may be entitled to take under the Leases. 
  

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 SECTION 2.3. Obligations. This Mortgage secures, and the Mortgaged Property is
collateral security for, the payment and performance in full when due of the Obligations. 
 SECTION 2.4. Future
Advances. This Mortgage shall secure all of the Obligations including, without limitation, future advances whenever hereafter made with respect to or under the Credit Agreement or the other Credit Documents and shall secure not only Obligations
with respect to presently existing indebtedness under the Credit Agreement and the other Credit Documents, but also any and all other indebtedness which may hereafter be owing by the Mortgagor to the Secured Parties under the Credit Agreement and
the other Credit Documents, however incurred, whether interest, discount or otherwise, and whether the same shall be deferred, accrued or capitalized, including future advances and re-advances, pursuant to the Credit Agreement or the other Credit
Documents, whether such advances are obligatory or to be made at the option of the Secured Parties, or otherwise, and any extensions, refinancings, modifications or renewals of all such Obligations whether or not the Mortgagor executes any extension
agreement or renewal instrument and, in each case, to the same extent as if such future advances were made on the date of the execution of this Mortgage. 
 SECTION 2.5. Maximum Amount of Indebtedness. The maximum aggregate amount of all indebtedness that is, or under any contingency may be secured at the date hereof or at any time hereafter by this
Mortgage is $[            ] (the “Secured Amount”), plus, to the extent permitted by applicable law, collection costs, sums advanced for the payment of taxes, assessments,
maintenance and repair charges, insurance premiums and any other costs incurred to protect the security encumbered hereby or the lien hereof, expenses incurred by the Mortgagee by reason of any default by the Mortgagor under the terms hereof,
together with interest thereon, all of which amount shall be secured hereby. 
 SECTION 2.6. Last Dollar Secured. So long
as the aggregate amount of the Obligations exceeds the Secured Amount, any payments and repayments of the Obligations shall not be deemed to be applied against or to reduce the Secured Amount. 
 SECTION 2.7. No Release. Nothing set forth in this Mortgage shall relieve the Mortgagor from the performance of any term, covenant,
condition or agreement on the Mortgagor’s part to be performed or observed under or in respect of any of the Mortgaged Property or from any liability to any person under or in respect of any of the Mortgaged Property or shall impose any
obligation on the Mortgagee or any other Secured Party to perform or observe any such term, covenant, condition or agreement on the Mortgagor’s part to be so performed or observed or shall impose any liability on the Mortgagee or any other
Secured Party for any act or omission on the part of the Mortgagor relating thereto or for any breach of any representation or warranty on the part of the Mortgagor contained in this Mortgage or any other Credit Document, or under or in respect of
the Mortgaged Property or made in connection herewith or therewith. The obligations of the Mortgagor contained in this Section 2.7 shall survive the termination hereof and the discharge of the Mortgagor’s other obligations under
this Mortgage and the other Credit Documents. 
  

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 ARTICLE III. 
 REPRESENTATIONS AND WARRANTIES OF MORTGAGOR 
 SECTION 3.1. Incorporation
of Credit Agreement. The Mortgagor represents, warrants, covenants and agrees that each of the representations, warranties, covenants and other agreements of the Mortgagor (as a Credit Party) under and as contained in the Credit Agreement are
hereby incorporated herein in their entirety by this reference. 
 SECTION 3.2. Warranty of Title. The Mortgagor
represents and warrants that: 
 (1) it has good and valid fee simple title to the Premises; and good title or
valid rights and interests in and to the balance of the Mortgaged Property and the Landlord’s Interest under or in respect of the Leases, in each case subject to no Liens, except for Permitted Collateral Liens; and 
 (2) upon recordation in the official real estate records in the county (or other applicable jurisdiction) in which the
Premises are located this Mortgage will create and constitute a valid and enforceable first priority mortgage Lien on the Mortgaged Property in favor of the Mortgagee for the benefit of the Secured Parties, and, to the extent any of the Mortgaged
Property shall consist of Fixtures or other personal property, a first priority security interest therein, which first priority Lien and first priority security interest are subject only to Permitted Collateral Liens. 
 SECTION 3.3. Condition of Mortgaged Property. The Mortgagor represents and warrants that: 
 (1) the Premises and the present and contemplated use and occupancy thereof comply with all applicable zoning ordinances,
building codes, land use and subdivision laws, setback or other development and use requirements of Governmental Authorities and with all private restrictions and agreements affecting the Mortgaged Property whether or not recorded, except where the
failure so to comply could not reasonably be expected to result in a Property Material Adverse Effect; 
 (2) as
of the date hereof, the Mortgagor has neither received any notice of nor has any actual knowledge of any disputes regarding boundary lines, location, encroachments or possession of any portions of the Mortgaged Property and has no knowledge of any
state of facts that may exist which could give rise to any such claims; 
 (3) prior to the date hereof, the
Mortgagor has delivered to the Mortgagee a completed “Life-of Loan” Federal Emergency Management Agency Standard Flood Hazard Determination (together with notices about special flood hazard area status and flood

  

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disaster assistance relating thereto, duly executed by [the Borrower]2 and the Mortgagor) with respect to each portion of the Mortgaged Property; 
 (4) the Premises are assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from
any adjoining land or improvements not constituting a portion of such lot or lots, and no other land or improvement is assessed and taxed together with the Premises or any portion thereof; and 
 (5) there are no options or rights of first refusal to purchase or acquire all or any portion of the Mortgaged Property other
than as disclosed to the Mortgagee in the Perfection Certificate or any Perfection Certificate Supplement. 
 SECTION 3.4.
Charges. The Mortgagor represents and warrants that all Charges imposed upon or assessed against the Mortgaged Property have been paid and discharged except to the extent such Charges constitute a Permitted Collateral Lien. 
 [SECTION 3.5. Leases. The Mortgagor represents and warrants that as of the date hereof: 
 (i) the Leases identified in Schedule B annexed to this Mortgage are the only Leases in existence on the date hereof
relating to the Premises; 
 (ii) true copies of such Leases have been previously delivered to the Mortgagee and
there are no agreements with any Tenant under such Leases other than those agreements expressly set forth therein; 
 (iii) the Mortgagor is the sole owner of all of the Landlord’s Interest in such Leases; 
 (iv)
each of such Leases is in full force and effect, constitutes a legal, valid and binding obligation of the Mortgagor and the applicable Tenant thereunder, and is enforceable against the Mortgagor and such Tenant in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability; 
 (v) there is no default by the Mortgagor under any of such Leases and there is existing no condition which with the giving of
notice or passage of time or both would cause a default by the Mortgagor thereunder and, to the best of Mortgagor’s knowledge, there is no default by the Tenant under any of such Leases and there is existing no condition which with the giving
of notice or passage of time or both would cause a default by the Tenant thereunder; 
  
  

	2	 INCLUDE ONLY IF THE MORTGAGOR IS NOT THE BORROWER. 

  

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 (vi) all Rents due under such Leases have been paid in full; 
 (vii) none of the Rents reserved under such Leases have been assigned or otherwise pledged or hypothecated except in favor of
the Mortgagee pursuant to the provisions hereof; 
 (viii) none of the Rents (other than any security deposit
collected in accordance with the provisions of the applicable Lease) have been collected for more than one (1) month in advance; 
 (ix) there exist no offsets or defenses to the payment of any portion of the Rents and the Mortgagor owes no monetary obligation to any Tenant under any such Lease; 
 (x) the Mortgagor has received no notice from any Tenant challenging the validity or enforceability of any such Lease;

 (xi) no such Lease contains any option to purchase, right of first refusal to purchase, right of first refusal
to relet, or any other similar provision other than as disclosed to the Mortgagee in the Perfection Certificate or any Perfection Certificate Supplement; and 
 (xii) each such Lease is subordinate to this Mortgage either pursuant to its terms or pursuant to a
recordable subordination agreement in form and substance reasonably acceptable to the Mortgagee.]3 
 ARTICLE IV. 
 CERTAIN COVENANTS OF MORTGAGOR 
 SECTION 4.1.
Payment and Performance. The Mortgagor shall pay and perform the Obligations in full as and when the same shall become due under the Credit Documents and when they are required to be performed thereunder. 
 SECTION 4.2. Title. The Mortgagor shall 
 (1) (A) keep in effect all rights and appurtenances to or that constitute a part of the Mortgaged Property except where the failure to keep in effect the same could not reasonably be expected to
result in a Property Material Adverse Effect and (B) protect, preserve and defend all its right, title and interest in the Mortgaged Property and title thereto; 
  

	3	 TO BE INCLUDED IN THE EVENT SIGNIFICANT OR MATERIAL LEASES OF THE MORTGAGED PROPERTY ARE IN EFFECT. 

  

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 (2) (A) comply with each of the terms, conditions and provisions of any
obligation of the Mortgagor which is secured by the Mortgaged Property or the noncompliance with which may result in the imposition of a Lien on the Mortgaged Property except Permitted Collateral Liens, (B) forever warrant and defend to the
Mortgagee the Lien and security interests created and evidenced hereby and the validity and first priority position hereof in any action or proceeding against the claims of any and all persons whomsoever affecting or purporting to affect the
Mortgaged Property or any of the rights of the Mortgagee hereunder and (C) maintain this Mortgage as a valid and enforceable first priority mortgage Lien on the Mortgaged Property and, to the extent any of the Mortgaged Property shall consist
of Fixtures or other personal property, a first priority security interest in such Fixtures and personal property which first priority Lien and security interest shall be subject only to Permitted Collateral Liens; and 
 (3) immediately upon obtaining knowledge of the pendency of any proceedings for the eviction of the Mortgagor from the
Mortgaged Property or any part thereof by paramount title or otherwise questioning the Mortgagor’s right, title and interest in, to and under the Mortgaged Property as warranted in this Mortgage, or of any condition that could give rise to any
such proceedings, notify the Mortgagee thereof. The Mortgagee may participate in such proceedings and the Mortgagor will deliver or cause to be delivered to the Mortgagee all instruments reasonably requested by the Mortgagee to permit such
participation. In any such proceedings, the Mortgagee may be represented by counsel satisfactory to the Mortgagee at the reasonable expense of the Mortgagor. If, upon the resolution of such proceedings, the Mortgagor shall suffer a loss of the
Mortgaged Property or any part thereof or interest therein and title insurance proceeds shall be payable in connection therewith, such proceeds are hereby assigned to and shall be paid to the Mortgagee to be applied as Net Proceeds to the payment of
the Obligations or otherwise in accordance with the provisions of Section 4.5 of the Credit Agreement. 
 (4) Zoning. The Mortgagor shall not initiate, join in or consent to any change in the zoning or any other permitted use classification of the Premises without the prior written consent of the Mortgagee. 
 (5) Inspection. The Mortgagor shall permit the Mortgagee, and its agents, representative and employees, upon
reasonable prior notice to the Mortgagor, to inspect the Mortgaged Property and all books and records located thereon, provided that such inspections shall not materially interfere with the use and operation of the Mortgaged Property.

 SECTION 4.3. Limitation on Liens; Transfer Restrictions. 
 (i) Except for the Permitted Collateral Liens and the Lien of this Mortgage, the Mortgagor may not, without the prior written consent of the
Mortgagee, permit to exist or grant any Lien on all or any part of the Mortgaged Property or suffer or allow any of the foregoing to occur by operation of law or otherwise. 
  

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 (ii) Except to the extent permitted by the Credit Agreement, the Mortgagor may not, without
the prior written consent of the Mortgagee, sell, convey, assign, lease or otherwise transfer all or any part of the Mortgaged Property. 
 SECTION 4.4. Insurance. The Mortgagor shall obtain and keep in full force and effect the Insurance Policies (including, without limitation, all flood insurance) required by the Credit Agreement
pursuant to the terms thereof. Without limiting the preceding sentence, if any portion of any Mortgaged Property is at any time located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a Special Flood
Hazard Area with respect to which flood insurance has been made available under the National Flood Insurance Act of 1968 (as now or hereafter in effect or any successor act thereto), then the Mortgagor shall (i) maintain, or cause to be
maintained, with a financially sound and reputable insurer, flood insurance in amounts and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the Flood Insurance Laws and (ii) deliver to the
Mortgagee evidence of such compliance in form and substance reasonably acceptable to the Mortgagee. 
 ARTICLE V. 
 CONCERNING ASSIGNMENT OF LEASES AND RENTS 
 SECTION 5.1. Present Assignment; License to the Mortgagor. 
 (i)
Section 2.2 of this Mortgage constitutes a present, absolute, effective, irrevocable and complete assignment by the Mortgagor to the Mortgagee of the Leases and Rents and the right, subject to applicable law, to collect all sums payable
to the Mortgagor thereunder and apply the same as the Mortgagee may, in its sole discretion, determine to be appropriate to protect the security afforded by this Mortgage (including the payment of reasonable costs and expenses in connection with the
maintenance, operation, improvement, insurance, taxes and upkeep of the Mortgaged Property), which is not conditioned upon the Mortgagee being in possession of the Premises. This assignment is an absolute assignment and not an assignment for
additional security only. The Mortgagee hereby grants to the Mortgagor, however, a license to collect, receive, use, retain and apply the Rents and to enforce the obligations of Tenants under the Leases. Immediately upon the occurrence of and during
the continuance of any Event of Default, whether or not legal proceedings have commenced and without regard to waste, adequacy of security for the Obligations or solvency of the Mortgagor, the license granted in the immediately preceding sentence
shall automatically cease and terminate without any notice by the Mortgagee (such notice being hereby expressly waived by the Mortgagor to the extent permitted by applicable law), or any action or proceeding or the intervention of a receiver
appointed by a court; provided, however, that if the Event of Default is cured by Mortgagor or waived by Mortgagee, and written notice of such waiver has been sent to Mortgagor by Mortgagee, the license granted to Borrower will thereupon be
automatically reinstated. 
 (ii) The Mortgagor acknowledges that the Mortgagee has taken all reasonable actions necessary to
obtain, and that upon recordation of this Mortgage, the Mortgagee shall have, to the extent permitted under applicable law, a valid and fully perfected, first priority, present

  

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assignment of the Rents arising out of the Leases and all security for such Leases subject to the Permitted Collateral Liens and in the case of security deposits, rights of depositors and
Requirements of Law. The Mortgagor acknowledges and agrees that upon recordation of this Mortgage, the Mortgagee’s interest in the Rents shall be deemed to be fully perfected, “choate” and enforced as to the Mortgagor and all third
parties, including, without limitation, any subsequently appointed trustee in any case under Title II of the United States Code (the “Bankruptcy Code”), without the necessity of commencing a foreclosure action with respect to this
Mortgage, making formal demand for the Rents, obtaining the appointment of a receiver or taking any other affirmative action. 
 (iii) Without limitation of the absolute nature of the assignment of the Rents hereunder, the Mortgagor and the Mortgagee agree that (a) this Mortgage shall constitute a “security agreement” for purposes of
Section 552(b) of the Bankruptcy Code, (b) the security interest created by this Mortgage extends to property of the Mortgagor acquired before the commencement of a case in bankruptcy and to all amounts paid as Rents, and
(c) such security interest shall extend to all rents acquired by the estate after the commencement of any case in bankruptcy. 
 SECTION 5.2. Collection of Rents by the Mortgagee. 
 (i) Any Rents receivable by the Mortgagee hereunder, after
payment of all proper costs and expenses as the Mortgagee may, in its sole discretion, determine to be appropriate (including the payment of reasonable costs and expenses in connection with the maintenance, operation, improvement, insurance, taxes
and upkeep of the Mortgaged Property), shall be applied in accordance with the provisions of Section 8.2(ii) of this Mortgage. The Mortgagee shall be accountable to the Mortgagor only for Rents actually received by the Mortgagee. The
collection of such Rents and the application thereof shall not cure or waive any Event of Default or waive, modify or affect notice of an Event of Default or invalidate any act done pursuant to such notice. 
 (ii) The Mortgagor hereby authorizes and directs the Tenant under each Lease to rely upon and comply with any and all notices or demands
from the Mortgagee for payment of Rents to the Mortgagee, and the Mortgagor shall have no claim against any Tenant for Rents paid by such Tenant to the Mortgagee pursuant to such notice or demand. Mortgagee agrees not to exercise its rights under
this Section 5.2(ii) unless an Event of Default shall have occurred and be continuing. 
 SECTION 5.3. Irrevocable
Interest. All rights, powers and privileges of the Mortgagee herein set forth are coupled with an interest and are irrevocable, subject to the terms and conditions hereof, and the Mortgagor shall not take any action under the Leases or otherwise
which is inconsistent with this Mortgage or any of the terms hereof and any such action inconsistent herewith or therewith shall be void. 
  

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 ARTICLE VI. 
 TAXES AND CERTAIN STATUTORY LIENS 
 SECTION 6.1. Payment of Charges.
Unless and to the extent contested by the Mortgagor in accordance with the provisions of the Credit Agreement, the Mortgagor shall pay and discharge, or cause to be paid and discharged, from time to time prior to same becoming delinquent, all
Charges. The Mortgagor shall, upon the Mortgagee’s reasonable request, deliver to the Mortgagee receipts evidencing the payment of all such Charges. 
 SECTION 6.2. Stamp and Other Taxes. Unless and to the extent contested by the Mortgagor in accordance with the provisions of the Credit Agreement, the Mortgagor shall pay any United States
documentary stamp taxes, with interest and fines and penalties, and any mortgage recording taxes, with interest and fines and penalties, that may hereafter be levied, imposed or assessed under or upon or by reason hereof or the Obligations or any
instrument or transaction affecting or relating to either thereof and in default thereof the Mortgagee may advance the same and the amount so advanced shall be payable by the Mortgagor to the Mortgagee in accordance with the provisions of
Section 11.5 of the Credit Agreement. 
 SECTION 6.3. Certain Tax Law Changes. In the event of the passage
after the date hereof of any law deducting from the value of real property, for the purpose of taxation, amounts in respect of any Lien thereon or changing in any way the laws for the taxation of mortgages or debts secured by mortgages for state or
local purposes or the manner of the collection of any taxes, and imposing any taxes, either directly or indirectly, on this Mortgage or any other Credit Document, the Mortgagor shall promptly pay to the Mortgagee such amount or amounts as may be
necessary from time to time to pay any such taxes, assessments or other charges resulting therefrom; provided, that if any such payment or reimbursement shall be unlawful or taxable to the Mortgagee, or would constitute usury or render the
indebtedness wholly or partially usurious under applicable law, the Mortgagor shall payor reimburse the Mortgagee for payment of the lawful and non-usurious portion thereof. 
 SECTION 6.4. Proceeds of Tax Claim. In the event that the proceeds of any tax claim are paid after the Mortgagee has exercised its
right to foreclose the Lien hereof, such proceeds shall be paid to the Mortgagee to satisfy any deficiency remaining after such foreclosure. The Mortgagee shall retain its interest in the proceeds of any tax claim during any redemption period. The
amount of any such proceeds in excess of any deficiency claim of the Mortgagee shall in a reasonably prompt manner be released to the Mortgagor. 
 ARTICLE VII. 
 CASUALTY EVENTS AND RESTORATION 
 SECTION 7.1. Casualty Event. If there shall occur any Casualty Event (or, in the case of any condemnation, taking or other proceeding
in the nature thereof, upon the occurrence thereof or notice of the commencement of any proceedings therefor), the Mortgagor shall promptly send to the Mortgagee a written notice setting forth the nature and extent thereof. The proceeds payable in
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the Mortgagee. The Net Proceeds of each Casualty Event in excess of $1,000,000 shall be applied, allocated and distributed in accordance with the provisions of Section 4.5(c) of the
Credit Agreement. 
 SECTION 7.2. Condemnation. In the case of any taking, condemnation or other proceeding in the nature
thereof that could reasonably be expected to give rise to Net Proceeds in excess of $1,000,000, the Mortgagee may, at its option, participate in any proceedings or negotiations which might result in any taking or condemnation and the Mortgagor shall
deliver or cause to be delivered to the Mortgagee all instruments reasonably requested by it to permit such participation. The Mortgagee may be represented by counsel satisfactory to it at the reasonable expense of the Mortgagor in connection with
any such participation. The Mortgagor shall pay all reasonable fees, costs and expenses incurred by the Mortgagee in connection therewith and in seeking and obtaining any award or payment on account thereof. The Mortgagor shall take all steps
necessary to notify the condemning authority of such participation. 
 SECTION 7.3. Restoration. In the event the
Mortgagor is permitted or required to perform any restoration in accordance with the provisions of Section 12.2 of the Credit Agreement, the Mortgagor shall complete such restoration in accordance with provisions thereof. 
 ARTICLE VIII. 
 EVENTS OF DEFAULT AND REMEDIES 
 SECTION 8.1. Remedies in Case of an Event of Default. If any Event of
Default shall have occurred and be continuing, the Mortgagee may at its option, in addition to any other action permitted under this Mortgage or the Credit Agreement or any other Credit Document or by law, statute or in equity, take one or more of
the following actions to the greatest extent permitted by local law: 
 (1) personally, or by its agents or
attorneys, (A) enter into and upon and take possession of all or any part of the Premises together with the books, records and accounts of the Mortgagor relating thereto and, exclude the Mortgagor, its agents and servants wholly therefrom,
(B) use, operate, manage and control the Premises and conduct the business thereof, (C) maintain and restore the Premises, (D) make all necessary or proper repairs, renewals and replacements and such useful alterations thereto and
thereon as the Mortgagee may deem advisable, (E) manage, lease and operate the Premises and carry on the business thereof and exercise all rights and powers of the Mortgagor with respect thereto either in the name of the Mortgagor or otherwise
or (F) collect and receive all Rents. The Mortgagee shall be under no liability for or by reason of any such taking of possession, entry, removal or holding, operation or management except that any amounts so received by the Mortgagee shall be
applied in accordance with the provisions of Section 12.3 of the Credit Agreement; 
 (2) with or
without entry, personally or by its agents or attorneys, (A) sell the Mortgaged Property and all estate, right, title and interest, claim and demand therein at one or more sales in one or more parcels, in accordance with the provisions of
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or (B) institute and prosecute proceedings for the complete or partial foreclosure of the Lien and security interests created and evidenced hereby; or 
 (3) take such steps to protect and enforce its rights whether by action, suit or proceeding at law or in equity for the
specific performance of any covenant, condition or agreement in the Credit Agreement and the other Credit Documents, or in aid of the execution of any power granted in this Mortgage, or for any foreclosure hereunder, or for the enforcement of any
other appropriate legal or equitable remedy or otherwise as the Mortgagee shall elect. 
 SECTION 8.2. Sale of Mortgaged
Property if Event of Default Occurs; Proceeds of Sale. 
 (i) If any Event of Default shall have occurred and be continuing,
the Mortgagee may institute an action to foreclose this Mortgage or take such other action as may be permitted and available to the Mortgagee at law or in equity for the enforcement of the Credit Agreement and realization on the Mortgaged Property
and proceeds thereon through power of sale (if then available under applicable law) or to final judgment and execution thereof for the Obligations, and in furtherance thereof the Mortgagee may sell the Mortgaged Property at one or more sales, as an
entirety or in parcels, at such time and place, upon such terms and after such notice thereof as may be required or permitted by law or statute or in equity. The Mortgagee may execute and deliver to the purchaser at such sale a conveyance of the
Mortgaged Property in fee simple or otherwise, as appropriate, and an assignment or conveyance of all the Landlord’s Interest in the Leases and the Mortgaged Property, each of which conveyances and assignments shall contain recitals as to the
Event of Default upon which the execution of the power of sale herein granted depends, and effective upon the occurrence and during the continuance of an Event of Default, the Mortgagor hereby constitutes and appoints the Mortgagee the true and
lawful attorney in fact of the Mortgagor to make any such recitals, sale, assignment and conveyance, and all of the acts of the Mortgagee as such attorney in fact are hereby ratified and confirmed. The Mortgagor agrees that such recitals shall be
binding and conclusive upon the Mortgagor and that any assignment or conveyance to be made by the Mortgagee shall divest the Mortgagor of all right, title, interest, equity and right of redemption, including any statutory redemption, in and to the
Mortgaged Property. The power and agency hereby granted are coupled with an interest and are irrevocable by death or dissolution, or otherwise, and are in addition to any and all other remedies which the Mortgagee may have hereunder, at law or in
equity. So long as the Obligations, or any part thereof, remain unpaid, the Mortgagor agrees that possession of the Mortgaged Property by the Mortgagor, or any person claiming under the Mortgagor, shall be as tenant, and, in case of a sale under
power or upon foreclosure as provided in this Mortgage, the Mortgagor and any person in possession under the Mortgagor, as to whose interest such sale was not made subject, shall, at the option of the purchaser at such sale, then become and be
tenants holding over, and shall forthwith deliver possession to such purchaser, or be summarily dispossessed in accordance with the laws applicable to tenants holding over. In case of any sale under this Mortgage by virtue of the exercise of the
powers herein granted, or pursuant to any order in any judicial proceeding or otherwise, the Mortgaged Property may be sold as an entirety or in separate parcels in such manner or order as the Mortgagee in its sole discretion may elect. One or more
exercises of powers herein granted shall not extinguish or exhaust such powers, until the entire Mortgaged Property is sold or all amounts secured hereby are paid in full. 
  

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 (ii) The proceeds of any sale made under or by virtue of this Article VIII, together
with any other sums which then may be held by the Mortgagee under this Mortgage, whether under the provisions of this Article VIII or otherwise, shall be applied in accordance with the provisions of Section 12.3 of the Credit
Agreement. 
 (iii) The Mortgagee (on behalf of any Secured Party or on its own behalf) or any Secured Party may bid for and
acquire the Mortgaged Property or any part thereof at any sale made under or by virtue of this Article VIII and, in lieu of paying cash therefor, may make settlement for the purchase price by crediting against the purchase price the unpaid
amounts (whether or not then due) owing to the Mortgagee, or such Secured Party in respect of the Obligations, after deducting from the sales price the expense of the sale and the reasonable costs of the action or proceedings and any other sums that
the Mortgagee or such Secured Party is authorized to deduct under this Mortgage. 
 (iv) The Mortgagee may adjourn from time to
time any sale by it to be made under or by virtue hereof by announcement at the time and place appointed for such sale or for such adjourned sale or sales, and, the Mortgagee, without further notice or publication, may make such sale at the time and
place to which the same shall be so adjourned. 
 (v) If the Premises are comprised of more than one parcel of land, the
Mortgagee may take any of the actions authorized by this Section 8.2 in respect of any number of individual parcels. 
 SECTION 8.3. Additional Remedies in Case of an Event of Default. 
 (i) The Mortgagee shall be entitled to
recover judgment as aforesaid either before, after or during the pendency of any proceedings for the enforcement of the provisions hereof and, to the extent permitted by applicable law, the right of the Mortgagee to recover such judgment shall not
be affected by any entry or sale hereunder, or by the exercise of any other right, power or remedy for the enforcement of the provisions hereof, or the foreclosure of, or absolute conveyance pursuant to, this Mortgage. In case of proceedings against
the Mortgagor in insolvency or bankruptcy or any proceedings for its reorganization or involving the liquidation of its assets, the Mortgagee shall be entitled to prove the whole amount of principal and interest and other payments, charges and costs
due in respect of the Obligations to the full amount thereof without deducting therefrom any proceeds obtained from the sale of the whole or any part of the Mortgaged Property; provided, however, that in no case shall the Mortgagee
receive a greater amount than the aggregate of such principal, interest and such other payments, charges and costs (with interest at the Default Rate) from the proceeds of the sale of the Mortgaged Property and the distribution from the estate of
the Mortgagor. 
 (ii) Any recovery of any judgment by the Mortgagee and any levy of any execution under any judgment upon the
Mortgaged Property shall not affect in any manner or to any extent the Lien and security interests created and evidenced hereby upon the Mortgaged Property or any part thereof, or any conveyances, powers, rights and remedies of the Mortgagee
hereunder, but such conveyances, powers, rights and remedies shall continue unimpaired as before. 
  

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 (iii) Any monies collected by the Mortgagee under this Section 8.3 shall be
applied in accordance with the provisions of Section 8.2(ii). 
 SECTION 8.4. Legal Proceedings After an Event of
Default. 
 (i) After the occurrence and during the continuance of any Event of Default and immediately upon the
commencement of any action, suit or legal proceedings to obtain judgment for the Obligations or any part thereof, or of any proceedings to foreclose the Lien and security interest created and evidenced hereby or otherwise enforce the provisions
hereof or of any other proceedings in aid of the enforcement hereof, the Mortgagor shall enter its voluntary appearance in such action, suit or proceeding. 
 (ii) Upon the occurrence and during the continuance of an Event of Default, the Mortgagee shall be entitled forthwith as a matter of right, concurrently or independently of any other right or remedy
hereunder either before or after declaring the Obligations or any part thereof to be due and payable, to the appointment of a receiver without giving notice to any party and without regard to the adequacy or inadequacy of any security for the
Obligations or the solvency or insolvency of any person or entity then legally or equitably liable for the Obligations or any portion thereof. The Mortgagor hereby consents to the appointment of such receiver. Notwithstanding the appointment of any
receiver, the Mortgagee shall be entitled as pledgee to the possession and control of any cash, deposits or instruments at the time held by or payable or deliverable under the terms of the Credit Agreement to the Mortgagee. 
 (iii) The Mortgagor shall not (A) at any time insist upon, or plead, or in any manner whatsoever claim or take any benefit or advantage
of any stay or extension or moratorium law, any exemption from execution or sale of the Mortgaged Property or any part thereof, wherever enacted, now or at any time hereafter in force, which may affect the covenants and terms of performance hereof,
(B) claim, take or insist on any benefit or advantage of any law now or hereafter in force providing for the valuation or appraisal of the Mortgaged Property, or any part thereof, prior to any sale or sales of the Mortgaged Property which may
be made pursuant to this Mortgage, or pursuant to any decree, judgment or order of any court of competent jurisdiction or (C) after any such sale or sales, claim or exercise any right under any statute heretofore or hereafter enacted to redeem
the property so sold or any part thereof. To the extent permitted by applicable law, the Mortgagor hereby expressly (A) waives all benefit or advantage of any such law or laws, including, without limitation, any statute of limitations
applicable to this Mortgage, (B) waives any and all rights to trial by jury in any action or proceeding related to the enforcement hereof, (C) waives any objection which it may now or hereafter have to the laying of venue of any action,
suit or proceeding brought in connection with this Mortgage and further waives and agrees not to plead that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum and (D) covenants not to hinder,
delay or impede the execution of any power granted or delegated to the Mortgagee by this Mortgage but to suffer and permit the execution of every such power as though no such law or laws had been made or enacted. The Mortgagee shall not be liable
for any incorrect or improper payment made pursuant to this Article VIII in the absence of gross negligence or willful misconduct. 
 SECTION 8.5. Remedies Not Exclusive. No remedy conferred upon or reserved to the Mortgagee by this Mortgage is intended to be exclusive of any other remedy or

  

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remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Mortgage or now or hereafter existing at law or in equity. Any delay
or omission of the Mortgagee to exercise any right or power accruing on any Event of Default shall not impair any such right or power and shall not be construed to be a waiver of or acquiescence in any such Event of Default. Every power and remedy
given by this Mortgage may be exercised from time to time concurrently or independently, when and as often as may be deemed expedient by the Mortgagee in such order and manner as the Mortgagee, in its sole discretion, may elect. If the Mortgagee
accepts any monies required to be paid by the Mortgagor under this Mortgage after the same become due, such acceptance shall not constitute a waiver of the right either to require prompt payment, when due, of all other sums secured by this Mortgage
or to declare an Event of Default with regard to subsequent defaults. If the Mortgagee accepts any monies required to be paid by the Mortgagor under this Mortgage in an amount less than the sum then due, such acceptance shall be deemed an acceptance
on account only and on the condition that it shall not constitute a waiver of the obligation of the Mortgagor to pay the entire sum then due, and the Mortgagor’s failure to pay the entire sum then due shall be and continue to be a default
hereunder notwithstanding acceptance of such amount on account. 
 ARTICLE IX. 
 SECURITY AGREEMENT AND FIXTURE FILING 
 SECTION 9.1. Security Agreement. To the extent the Mortgaged Property consists of UCC Collateral or items of personal property which are or are to become Fixtures [or as-extracted collateral or
timber to be cut] under applicable law, this Mortgage shall also be construed as a security agreement under the UCC. The Mortgagor, in order to secure the due and punctual payment and performance of the Obligations, hereby grants to the Mortgagee
for its benefit and for the benefit of the Secured Parties, a security interest in and to such UCC Collateral and Fixtures. Upon and during the continuance of an Event of Default, the Mortgagee shall be entitled with respect to the UCC Collateral
and Fixtures to exercise all remedies hereunder or any other Credit Document or available under the UCC with respect thereto and all other remedies available under applicable law. Without limiting the foregoing, the UCC Collateral and Fixtures, may,
at the Mortgagee’s option, (i) be sold hereunder together with any sale of any portion of the Mortgaged Property or otherwise, (ii) be sold separately pursuant to the UCC, or (iii) be dealt with by the Mortgagee in any other
manner permitted under applicable law. The Mortgagee may require the Mortgagor to assemble the UCC Collateral and Fixtures and make it available to the Mortgagee at a place to be designated by the Mortgagee. The Mortgagor acknowledges and agrees
that a disposition of such collateral in accordance with the Mortgagee’s rights and remedies in respect to the Mortgaged Property as heretofore provided is a commercially reasonable disposition thereof; provided, however, that the
Mortgagee shall give the Mortgagor not less than ten (10) days’ prior notice of the time and place of any intended disposition. 
 SECTION 9.2. Fixture Filing. To the extent that the Mortgaged Property includes items of personal property which are or are to become fixtures under applicable law, and to the extent permitted
under applicable law, the filing hereof in the real estate records of the county in which such Mortgaged Property is located shall also operate from the date of such recording as a fixture filing with respect to such Mortgaged Property, and the
following information is applicable for the purpose of such filing, to wit: 
  

			
	Name and Address of the debtor:	  	Name and Address of the secured party:
		
	 The Mortgagor having the address described in the Preamble hereof.
  
 The Mortgagor is a [        ] organized under
the laws of the State of [        ] whose Organization Number is [        ], and whose Taxpayer Identification Number is
[        ].
	  	The Mortgagee having the address described in the Preamble hereof, from which address information concerning the security interest may be obtained.
	  
 This Financing Statement covers the following types
or items of property:
  
 The Mortgaged Property.
  
 This instrument covers goods or items of personal property which are or are
to
 become fixtures upon the property.
  
 The Mortgagor is the record owner of the Land.

  

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 In addition, the Mortgagor hereby authorizes the Mortgagee to file appropriate financing and continuation
statements under the UCC in effect in the jurisdiction in which the Mortgaged Property is located or where the Mortgagor is located/organized or any other applicable jurisdiction as may be required by law in order to create, establish, preserve and
protect the Liens and security interests intended to be granted to the Mortgagee pursuant to this Mortgage in the Mortgaged Property. 
 ARTICLE X. 
 FURTHER ASSURANCES 
 SECTION 10.1. Recording Documentation To Assure Security. The Mortgagor shall, forthwith after the execution and delivery hereof and thereafter, from time to time, cause this Mortgage and any
financing statement, continuation statement or similar instrument relating to any of the Mortgaged Property or to any property intended to be subject to the Lien hereof or the security interests created hereby to be filed, registered and recorded in
such manner and in such places as may be required by any present or future law and shall take such actions as the Mortgagee shall reasonably deem necessary in order to publish notice of and fully to protect the validity and priority of the Liens,
assignment, and security interests purported to be created upon the Mortgaged Property and the interest and rights of the Mortgagee therein. The Mortgagor shall payor cause to be paid all taxes and fees incident to such filing, registration and
recording, and all expenses incident to the preparation, execution and acknowledgment thereof, and of any instrument of further assurance, and all Federal or state stamp taxes or other taxes, duties and charges arising out of or in connection with
the execution and delivery of such instruments. 
 SECTION 10.2. Further Acts. The Mortgagor shall, at the sole cost and
expense of the Mortgagor, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, mortgages, assignments, notices of assignment, transfers, financing statements, continuation statements, instruments and assurances
as the Mortgagee shall from time to

  

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time reasonably request, which may be necessary in the judgment of the Mortgagee from time to time to assure, perfect, convey, assign, mortgage, transfer and confirm unto the Mortgagee, the
property and rights hereby conveyed or assigned or which the Mortgagor may be or may hereafter become bound to conveyor assign to the Mortgagee or for carrying out the intention or facilitating the performance of the terms hereof or the filing,
registering or recording hereof. Without limiting the generality of the foregoing, in the event that the Mortgagee desires to exercise any remedies, consensual rights or attorney-in-fact powers set forth in this Mortgage and determines it necessary
to obtain any approvals or consents of any Governmental Authority or any other person therefor, then, upon the reasonable request of the Mortgagee, the Mortgagor agrees to use its best efforts to assist and aid the Mortgagee to obtain as soon as
practicable any necessary approvals or consents for the exercise of any such remedies, rights and powers. In the event the Mortgagor shall fail after demand to execute any instrument or take any action required to be executed or taken by the
Mortgagor under this Section 10.2, the Mortgagee, upon notice to Mortgagor, may execute or take the same as the attorney-in-fact for the Mortgagor, such power of attorney being coupled with an interest and is irrevocable. 
 SECTION 10.3. Additions to Mortgaged Property. All right, title and interest of the Mortgagor in and to all extensions, amendments,
relocations, restakings, improvements, betterments, renewals, substitutes and replacements of, and all additions and appurtenances to, the Mortgaged Property hereafter acquired by or released to the Mortgagor or constructed, assembled or placed by
the Mortgagor upon the Premises, and all conversions of the security constituted thereby, immediately upon such acquisition, release, construction, assembling, placement or conversion, as the case may be, and in each such case without any further
mortgage, conveyance, assignment or other act by the Mortgagor, shall become subject to the Lien and security interest of this Mortgage as fully and completely and with the same effect as though now owned by the Mortgagor and specifically described
in the grant of the Mortgaged Property above, but at any and all times the Mortgagor will execute and deliver to the Mortgagee any and all such further assurances, mortgages, conveyances or assignments thereof as the Mortgagee may reasonably require
for the purpose of expressly and specifically subjecting the same to the Lien and security interest of this Mortgage. 
 SECTION
10.4. Additional Security. Without notice to or consent of the Mortgagor and without impairment of the Lien and rights created by this Mortgage, the Mortgagee may accept (but the Mortgagor shall not be obligated to furnish) from the Mortgagor
or from any other person, additional security for the Obligations. Neither the giving hereof nor the acceptance of any such additional security shall prevent the Mortgagee from resorting, first, to such additional security, and, second, to the
security created by this Mortgage without affecting the Mortgagee’s Lien and rights under this Mortgage. 
 ARTICLE XI.

 MISCELLANEOUS 
 SECTION 11.1. Covenants To Run with the Land; Joint and Several. All of the grants, covenants, terms, provisions and conditions in this Mortgage shall run with the Land and the Mortgagor’s
interest therein and shall apply to, and bind the successors and assigns of, the Mortgagor. If there shall be more than one mortgagor with respect to the Mortgaged Property,

  

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all such Mortgagors’ covenants, warranties and undertakings hereunder shall be joint and several. 
 SECTION 11.2. No Merger. The rights and estate created by this Mortgage shall not, under any circumstances, be held to have merged into any other estate or interest now owned or hereafter acquired
by the Mortgagee unless the Mortgagee shall have consented to such merger in writing. 
 SECTION 11.3. Concerning
Mortgagee. 
 (i) The Mortgagee has been appointed as Administrative Agent pursuant to the Credit Agreement. The actions of
the Mortgagee hereunder are subject to the provisions of the Credit Agreement. The Mortgagee shall have the right hereunder to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking
action (including, without limitation, the release or substitution of the Mortgaged Property), in accordance with this Mortgage and the Credit Agreement. The Mortgagee may employ agents and attorneys-in-fact in connection herewith and shall not be
liable for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. The Mortgagee may resign and a successor Mortgagee may be appointed in the manner provided in the Credit Agreement. Upon the acceptance of
any appointment as the Mortgagee by a successor Mortgagee, that successor Mortgagee shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Mortgagee under this Mortgage, and the retiring
Mortgagee shall thereupon be discharged from its duties and obligations under this Mortgage. After any retiring Mortgagee’s resignation, the provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by it under
this Mortgage while it was the Mortgagee. 
 (ii) The Mortgagee shall be deemed to have exercised reasonable care in the custody
and preservation of the Mortgaged Property in its possession if such Mortgaged Property is accorded treatment substantially equivalent to that which the Mortgagee, in its individual capacity, accords its own property consisting of similar property,
instruments or interests, it being understood that neither the Mortgagee nor any of the Secured Parties shall have responsibility for taking any necessary steps to preserve rights against any person with respect to any Mortgaged Property.

 (iii) The Mortgagee shall be entitled to rely upon any written notice, statement, certificate, order or other document or any
telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person, and, with respect to all matters pertaining to this Mortgage and its duties hereunder, upon advice of counsel selected by it.

 (iv) With respect to any of its rights and obligations as a Lender, the Mortgagee shall have and may exercise the same rights
and powers hereunder. The term “Lenders,” “Lender” or any similar terms shall, unless the context clearly otherwise indicates, include the Mortgagee in its individual capacity as a Lender. The Mortgagee may accept deposits from,
lend money to, and generally engage in any kind of banking, trust or other business with the Mortgagor or any Affiliate of the Mortgagor to the same extent as if the Mortgagee were not acting as Administrative Agent. 
  

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 (v) If any portion of the Mortgaged Property also constitutes collateral granted by any
Credit Party to the Mortgagee to secure the Obligations under any other deed of trust, mortgage, security agreement, pledge or instrument of any type, in the event of any conflict between the provisions hereof and the provisions of such other deed
of trust, mortgage, security agreement, pledge or instrument of any type in respect of such collateral, the Mortgagee, in its sole discretion, shall select which provision or provisions shall control, unless the Mortgaged Property to which such
conflict relates constitutes personal property, in which case the provisions of the Security Agreement shall control. 
 SECTION
11.4. Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact. If the Mortgagor shall fail to perform any covenants contained in this Mortgage (including, without limitation, the Mortgagor’s covenants to (i) pay the premiums in
respect of all required insurance policies hereunder or under the Credit Agreement, (ii) pay Charges, (iii) make repairs, (iv) discharge Liens or (v) payor perform any obligations of the Mortgagor under any Mortgaged Property) or
if any representation or warranty on the part of the Mortgagor contained herein shall be breached, the Mortgagee may (but shall not be obligated to), do the same or cause it to be done or remedy any such breach, and may expend funds for such
purpose; provided, however, that the Mortgagee shall in no event be bound to inquire into the validity of any tax, Lien, imposition or other obligation which the Mortgagor fails to payor perform as and when required hereby and which
the Mortgagor does not contest in accordance with the provisions of the Credit Agreement. Any and all amounts so expended by the Mortgagee shall be paid by the Mortgagor in accordance with the provisions of Section 12.3 of the Credit
Agreement and repayment shall be secured by this Mortgage. Neither the provisions of this Section 11.4 nor any action taken by the Mortgagee pursuant to the provisions of this Section 11.4 shall prevent any such failure to
observe any covenant contained in this Mortgage nor any breach of warranty from constituting an Event of Default. The Mortgagor hereby appoints the Mortgagee its attorney-in-fact, with full power and authority in the place and stead of the Mortgagor
and in the name of the Mortgagor, or otherwise, from time to time in the Mortgagee’s discretion to take any action and to execute any instrument consistent with the terms hereof and the other Credit Documents which the Mortgagee may deem
reasonably necessary or advisable to accomplish the purposes hereof (but the Mortgagee shall not be obligated to and shall have no liability to the Mortgagor or any third party for failure to so do or take action). The foregoing grant of authority
is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term hereof. The Mortgagor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof. 
 SECTION 11.5. Continuing Security Interest; Assignment. This Mortgage shall create a continuing Lien on and security interest in the
Mortgaged Property and shall (i) be binding upon the Mortgagor, its successors and assigns and (ii) inure, together with the rights and remedies of the Mortgagee hereunder, to the benefit of the Mortgagee for the benefit of the Secured
Parties and each of their respective successors, transferees and assigns. No other persons (including, without limitation, any other creditor of any Credit Party) shall have any interest herein or any right or benefit with respect hereto. Without
limiting the generality of the foregoing clause (ii), any Secured Party may assign or otherwise transfer any indebtedness held by it secured by this Mortgage to any other person, and such other person shall thereupon become vested with all the
benefits in respect thereof granted to such Lender, herein or otherwise, subject, however, to the provisions of the Credit Agreement. The Mortgagor agrees that its obligations

  

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hereunder and the security interest created hereunder shall continue to be effective or be reinstated, as applicable, if at any time payment, or any part thereof, of all or any part of the
Obligations is rescinded or must otherwise be restored by the Secured Party upon the bankruptcy or reorganization of any Pledgor or otherwise. 
 SECTION 11.6. Termination; Release. When all the Obligations have been paid in full and the Commitments of the Lenders to make any Loan or to issue any Letter of Credit under the Credit Agreement
shall have expired or been sooner terminated and all Letters of Credit have been terminated or cash collateralized in accordance with the provisions of the Credit Agreement, this Mortgage shall terminate. Upon termination hereof or any release of
the Mortgaged Property or any portion thereof in accordance with the provisions of the Credit Agreement, the Mortgagee shall, upon the request and at the sole cost and expense of the Mortgagor, forthwith assign, transfer and deliver to the
Mortgagor, against receipt and without recourse to or warranty by the Mortgagee, such of the Mortgaged Property to be released (in the case of a release) as may be in possession of the Mortgagee and as shall not have been sold or otherwise applied
pursuant to the terms hereof, and, with respect to any other Mortgaged Property, proper documents and instruments (including UCC-3 termination statements or releases) acknowledging the termination hereof or the release of such Mortgaged Property, as
the case may be.4 
 SECTION 11.7. Modification in Writing. No amendment, modification, supplement, termination or waiver of or to any provision hereof, nor consent to any departure by the Mortgagor therefrom, shall be effective unless the same shall be
done in accordance with the terms of the Credit Agreement and unless in writing and signed by the Mortgagee. Any amendment, modification or supplement of or to any provision hereof, any waiver of any provision hereof and any consent to any departure
by the Mortgagor from the terms of any provision hereof shall be effective only in the specific instance and for the specific purpose for which made or .given. Except where notice is specifically required by this Mortgage or any other Credit
Document, no notice to or demand on the Mortgagor in any case shall entitle the Mortgagor to any other or further notice or demand in similar or other circumstances. 
 SECTION 11.8. Notices. Unless otherwise provided herein or in the Credit Agreement, any notice or other communication herein required or permitted to be given shall be given in the manner and
become effective as set forth in the Credit Agreement, if to the Mortgagor or the Mortgagee, addressed to it at the address set forth in the Credit Agreement, or in each case at such other address as shall be designated by such party in a written
notice to the other party complying as to delivery with the terms of this Section 11.8. 
 SECTION 11.9.
GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. THIS MORTGAGE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE 
  

	4	TERMINATION AND RELEASE PROVISIONS SHOULD BE CHECKED AGAINST, AND CONFORM TO, THOSE SET FORTH IN THE SECURITY AGREEMENT. 

  

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IN WHICH THE PREMISES ARE LOCATED, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR ITEM OR TYPE OF MORTGAGED PROPERTY ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE. THE MORTGAGOR AGREES THAT SERVICE OF PROCESS IN ANY PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO BORROWER AT ITS ADDRESS SET FORTH IN THE CREDIT AGREEMENT OR AT SUCH OTHER ADDRESS OF WHICH THE MORTGAGEE SHALL HAVE BEEN NOTIFIED PURSUANT THERETO. IF ANY
AGENT APPOINTED BY THE MORTGAGOR REFUSES TO ACCEPT SERVICE, THE MORTGAGOR HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
SHALL LIMIT THE RIGHT OF THE MORTGAGEE TO BRING PROCEEDINGS AGAINST THE MORTGAGOR IN THE COURTS OF ANY OTHER JURISDICTION. THE MORTGAGOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS MORTGAGE OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 11.10. Severability of Provisions. Any
provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating the remaining provisions hereof or
affecting the validity, legality or enforceability of such provision in any other jurisdiction. 
 SECTION 11.11.
Relationship. The relationship of the Mortgagee to the Mortgagor hereunder is strictly and solely that of lender and borrower and mortgagor and mortgagee and nothing contained in the Credit Agreement, this Mortgage or any other document or
instrument now existing and delivered in connection therewith or otherwise in connection with the Obligations is intended to create, or shall in any event or under any circumstance be construed as creating a partnership, joint venture,
tenancy-in-common, joint tenancy or other relationship of any nature whatsoever between the Mortgagee and the Mortgagor other than as lender and borrower and mortgagor and mortgagee. 
 SECTION 11.12. No Credit for Payment of Taxes or Impositions. The Mortgagor shall not be entitled to any credit against the
principal, premium, if any, or interest payable under the Credit Agreement, and the Mortgagor shall not be entitled to any credit against any other sums which may become payable under the terms thereof or hereof, by reason of the payment of any
Charge on the Mortgaged Property or any part thereof. 
 SECTION 11.13. No Claims Against the Mortgagee. Nothing
contained in this Mortgage shall constitute any consent or request by the Mortgagee, express or implied, for the performance of any labor or services or the furnishing of any materials or other property in respect of the Premises or any part
thereof, nor as giving the Mortgagor any right, power or authority to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any claim
against the

  

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Mortgagee in respect thereof or any claim that any Lien based on the performance of such labor or services or the furnishing of any such materials or other property is prior to the Lien hereof.

 SECTION 11.14. Mortgagee’s Right To Sever Indebtedness. 
 (i) The Mortgagor acknowledges that (A) the Mortgaged Property does not constitute the sole source of security for the payment and
performance of the Obligations and that the Obligations are also secured by property of the Mortgagor and its Affiliates in other jurisdictions (all such property, collectively, the “Collateral”), (B) the number of such
jurisdictions and the nature of the transaction of which this instrument is a part are such that it would have been impracticable for the parties to allocate to each item of Collateral a specific loan amount and to execute in respect of such item a
separate credit agreement and (C) the Mortgagor intends that the Mortgagee have the same rights with respect to the Mortgaged Property, in foreclosure or otherwise, that the Mortgagee would have had if each item of Collateral had been secured,
mortgaged or pledged pursuant to a separate credit agreement, mortgage or security instrument. In furtherance of such intent, the Mortgagor agrees that the Mortgagee may at any time by notice (an “Allocation Notice”) to the
Mortgagor allocate a portion (the “Allocated Indebtedness”) of the Obligations to the Mortgaged Property and sever from the remaining Obligations the Allocated Indebtedness. From and after the giving of an Allocation Notice with
respect to the Mortgaged Property, the Obligations hereunder shall be limited to the extent set forth in the Allocation Notice and (as so limited) shall, for all purposes, be construed as a separate loan obligation of the Mortgagor unrelated to the
other transactions contemplated by the Credit Agreement, any other Credit Document or any document related to any thereof. To the extent that the proceeds on any foreclosure of the Mortgaged Property shall exceed the Allocated Indebtedness, such
proceeds shall belong to the Mortgagor and shall not be available hereunder to satisfy any Obligations of the Mortgagor other than the Allocated Indebtedness. In any action or proceeding to foreclose the Lien hereof or in connection with any power
of sale, foreclosure or other remedy exercised under this Mortgage commenced after the giving by the Mortgagee of an Allocation Notice, the Allocation Notice shall be conclusive proof of the limits of the Obligations hereby secured, and the
Mortgagor may introduce, by way of defense or counterclaim, evidence thereof in any such action or proceeding. Notwithstanding any provision of this Section 11.14, the proceeds received by the Mortgagee pursuant to this Mortgage shall be
applied by the Mortgagee in accordance with the provisions of Section 8.2(ii) hereof. 
 (ii) The Mortgagor hereby
waives to the greatest extent permitted under law the right to a discharge of any of the Obligations under any statute or rule of law now or hereafter in effect which provides that foreclosure of the Lien hereof or other remedy exercised under this
Mortgage constitutes the exclusive means for satisfaction of the Obligations or which makes unavailable a deficiency judgment or any subsequent remedy because the Mortgagee elected to proceed with a power of sale, foreclosure or such other remedy or
because of any failure by the Mortgagee to comply with laws that prescribe conditions to the entitlement to a deficiency judgment. In the event that, notwithstanding the foregoing waiver, any court shall for any reason hold that the Mortgagee is not
entitled to a deficiency judgment, the Mortgagor shall not (A) introduce in any other jurisdiction such judgment as a defense to enforcement against the Mortgagor of any remedy in the Credit Agreement or any other Credit Document or
(B) seek to have such judgment recognized or entered in any other jurisdiction, and any such judgment shall in all events be limited in application only to the state or jurisdiction where rendered. 
  

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 (iii) In the event any instrument in addition to the Allocation Notice is necessary to
effectuate the provisions of this Section 11.14, including, without limitation, any amendment to this Mortgage, any substitute promissory note or affidavit or certificate of any kind, the Mortgagor agrees to execute all such amendments,
notes, affidavits or certificates reasonably requested by the Mortgagee and the Mortgagor hereby appoints the Mortgagee as its true and lawful attorneys-in-fact to, following and during the continuance of an Event of Default, execute, deliver or
record such amendments, notes, affidavits or certificates in the name and on behalf of the Mortgagor. Such power of attorney is coupled with an interest and is irrevocable. 
 (iv) Notwithstanding anything set forth herein to the contrary, the provisions of this Section 11.14 shall be effective only to
the maximum extent permitted by law. 
 ARTICLE XII. 
 LEASES 
 SECTION 12.1. Mortgagor’s Affirmative
Covenants with Respect to Leases. With respect to each Lease, the Mortgagor shall: 
 (i) observe and perform
in all material respects all the obligations imposed upon the Landlord under such Lease; 
 (ii) promptly send
copies to the Mortgagee of all notices of default which the Mortgagor shall send or receive thereunder; and 
 (iii) enforce all of the material terms, covenants and conditions contained in such Lease upon the part of the Tenant thereunder to be observed or performed. 
 SECTION 12.2. Mortgagor’s Negative Covenants with Respect to Leases. With respect to each Lease, the Mortgagor shall not, without the prior written consent of the Mortgagee: 
 (i) receive or collect, or permit the receipt or collection of, any Rent under such Lease more than three (3) months in
advance of the respective period in respect of which such Rent is to accrue, except: 
  

	 	(A)	in connection with the execution and delivery of such Lease (or of any amendment to such Lease), Rent thereunder may be collected and received in advance in an amount
not in excess of three (3) months Rent; 

  

	 	(B)	the amount held by Landlord as a reasonable security deposit thereunder; and 

  

	 	(C)	any amount received and collected for escalation and other charges in accordance with the terms of such Lease; 

  

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 (ii) assign, transfer or hypothecate (other than to the Mortgagee hereunder)
any Rent under such Lease whether then due or to accrue in the future or the interest of the Mortgagor as Landlord under such Lease; 
 (iii) enter into any Lease or any amendment or modification of any Lease if the same would not comply with clause (b) of the definition of Permitted Collateral Liens or could reasonably be expected
to result in a Property Material Adverse Effect; provided, however, that any such Lease or any amendment or modification of any Lease shall forthwith, without further action, be subject to the Lien of the Security Documents;

 (iv) terminate (whether by exercising any contractual right of the Mortgagor to recapture leased space or
otherwise) or permit the termination of such Lease or accept surrender of all or any portion of the space demised under such Lease prior to the end of the term thereof or accept assignment of such Lease to the Mortgagor unless the same would not
reasonably be expected to cause a Property Material Adverse Effect; provided, however, that any terminated, surrendered, recaptured or assigned leased space shall forthwith, without any further action, be subject to the Lien of the
Security Documents; or 
 (v) waive, excuse, condone or in any manner discharge or release any Tenants of or from
the obligations of such Tenants under their respective Leases or guarantors of Tenants from obligations under any guarantees of the Leases unless the same would not reasonably be expected to cause a Property Material Adverse Effect; provided,
however, that any leased space subject to such discharge or release shall forthwith, without any further action, be subject to the Lien of the Security Documents. 
 ARTICLE XIII. 
 LOCAL LAW PROVISIONS 
 [    ] 
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 IN WITNESS WHEREOF, the Mortgagor has caused this Mortgage to be duly executed and delivered
under seal the day and year first above written. 
  

			
	[                                ]
		
	By:	 	  

		 	Name:
		 	Title:

 [local counsel to confirm
signature requirements] 
  

 S-1 

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 ACKNOWLEDGMENT 
  

					
	State of                                 	 	)	 	
		 	)	 	ss.:
	County of                             	 	)	 	

 [Local counsel to provide appropriate acknowledgment] 

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 Schedule A — Legal Description 
 Legal Description of premises commonly known as [COMMON NAME, IF ANY] and located at [INSERT ADDRESS]: 
 [to come from title policy] 

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 Schedule B5 
 [describe Leases where Mortgagor is the Landlord or state None] 
  

	5	 INCLUDE ONLY IF SECTION 3.5 IS INCLUDED 

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 EXHIBIT H 
 [Form of] 
 NON-BANK CERTIFICATE 
 Reference is made to the Credit Agreement dated as of November [    ], 2009 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among Language Line, LLC, Coto Acquisition LLC, Language Line Holdings LLC, the Subsidiary Guarantors (such term and each other capitalized term used but
not defined herein having the meaning ascribed to it in the Credit Agreement), the Lenders from time to time party thereto, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead
arrangers and joint book-runners, Credit Suisse Securities (USA) LLC, as syndication agent, Morgan Stanley Senior Funding, Inc., as Documentation Agent and Bank of America, N.A., as administrative agent for the Lenders. 
 The undersigned is not a bank (as such term is used in Section 881(c)(3)(A), of the Internal Revenue Code of 1986, as amended.

  

			
	[NAME OF LENDER]
		
	By:	 	  

		 	Name:
		 	Title:
	
	[ADDRESS]

 Dated:
                                         
       , 200    . 

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		 		 		 		 	Exhibit I-1 to
		 		 		 		 	Credit Agreement

  
  
  
 GUARANTEE 
 Among

 Each Subsidiary Guarantor Party to the Credit Agreement 
 in favor of 
 Bank of America, N.A., 
 as Administrative Agent 
  
  
 Dated as of
November [    ], 2009 
  
  
  

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 GUARANTEE 
 THIS GUARANTEE (as amended, restated, supplemented or otherwise modified from time to time, (this “Guarantee”), dated as of November [    ], 2009 by and among each
Subsidiary Guarantor party to the Credit Agreement referenced below, in favor of Bank of America, N.A., in its capacity as Administrative Agent for the Lenders from time to time party to the Credit Agreement to guarantee the payment and performance
of all of the Obligations of each Credit Party. 
 Each capitalized term used herein but not otherwise defined has the meaning
assigned to such term in the Credit Agreement. 
 R E C I T A L S

 A. Pursant to that certain credit agreement, dated as of November [    ], 2009 among Language Line, LLC,
a Delaware limited liability company (“Language Line”) and Coto Acquisition LLC (“Coto” and together with Language Line, the “Borrowers”), Holdings, the Subsidiary Guarantors listed on the signature pages hereto,
the several lenders from time to time party hereto (the “Lenders”), Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as Joint Lead Arrangers and Joint Book-Runners, Credit
Suisse Securities (USA) LLC, as Syndication Agent, Morgan Stanley Senior Funding, Inc., as Documentation Agent and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”), the
Lenders have agreed to make to or for the account of the Borrowers certain Loans and to issue certain Letters of Credit for the account of the Borrowers. 
 B. It is contemplated that any of the Credit Parties may enter into one or more Interest Rate Agreements. 
 C. Each Subsidiary Guarantor is, pursuant to this Guarantee, among other things, guaranteeing the obligations of the other Credit Parties under the Credit Agreement and the other Credit Documents.

 D. Each Subsidiary Guarantor will receive substantial benefits from the execution, delivery and performance of the Credit
Documents and is therefore willing to enter into this Guarantee. 
 E. It is a condition to the obligations of the Lenders to
make the Loans under the Credit Agreement and a condition to any Lender issuing Letters of Credit under the

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Credit Agreement or entering into any Interest Rate Agreement that each Subsidiary Guarantor execute and deliver this Guarantee. 
 A G R E E M E N T 
 NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows: 
 Section 1. Interpretation. The rules of interpretation specified in the Credit Agreement (including
subsection 1.2 thereof) shall be applicable to this Guarantee. 
 Section 2. Resolution of Drafting Ambiguities.
Each Subsidiary Guarantor acknowledges and agrees that it was represented by counsel in connection with the execution and delivery hereof, that it and its counsel reviewed and participated in the preparation and negotiation hereof and that any rule
of construction to the effect that ambiguities are to be resolved against the drafting party (i.e., the Administrative Agent) shall not be employed in the interpretation hereof. 
 Section 3. Guarantee. Each Subsidiary Guarantor hereby guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not as a surety to each Secured Party and their respective permitted successors and assigns, the prompt payment in full when due (whether at stated maturity, by required prepayment, declaration, demand, by acceleration or otherwise) of
the principal of and interest (including any interest, fees, costs or charges that would accrue but for the provisions of the Bankruptcy Code after any bankruptcy or insolvency petition under the Bankruptcy Code) on the Loans made by the Lenders to,
and the Notes held by each Lender of, the Borrowers, and all other Obligations from time to time owing to the Secured Parties by any Credit Party under any Credit Document in each case strictly in accordance with the terms thereof (such obligations
being herein collectively called the “Guaranteed Obligations”). Each Subsidiary Guarantor hereby agrees that if any Borrower or any other Guarantor shall fail to pay in full when due (whether at stated maturity, by acceleration or
otherwise) any of the Guaranteed Obligations, such Subsidiary Guarantor will promptly pay the same in cash, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed
Obligations, the same will be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. 
 (a) To the fullest extent permitted by applicable law, each Subsidiary Guarantor waives any defense based on or arising out
of any defense of the Borrowers or the unenforceability of the Obligations or any part thereof from any cause, or the assertion from any cause of the liability of the Borrowers, other than the final payment in full in cash of the Obligations;
provided that subsequent to the final payment in full

  

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in cash of the Obligations other than indemnity and other contingent liabilities not yet due and payable, such Subsidiary Guarantor may additionally assert a defense arising from or in connection
with the bad faith, gross negligence or willful misconduct of any Secured Party in respect of an indemnity Obligation. In any action or proceeding involving any state corporate limited partnership or limited liability company law, or any applicable
state, federal or foreign bankruptcy, insolvency and fraudulent conveyances or transfers, reorganization or other law affecting the rights of creditors generally, if the obligations of any Subsidiary Guarantor hereunder would otherwise be held or
determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability hereunder, then, notwithstanding any other provision to the contrary, the amount of such
liability shall, without any further action by such Subsidiary Guarantor, any Credit Party or any other person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other
creditors as determined in such action or proceeding. 
 (b) Each Subsidiary Guarantor agrees that the
Obligations may at any time and from time to time exceed the amount of the liability of such Subsidiary Guarantor hereunder without impairing the guarantee contained in this Guarantee or affecting the rights and remedies of the Administrative Agent
or any Secured Party hereunder; provided that there shall be no modification or increase of the liability of each Subsidiary Guarantor hereunder due to any such excess of Obligations. 
 (c) The guarantee contained in this Guarantee shall remain in full force and effect until all the Obligations of the Credit
Parties (other than any indemnity and other contingent obligations not yet due and payable), including the obligations of the Parent Guarantor under the Parent Guarantee of even date herewith, shall have been satisfied by payment in full, no Letter
of Credit shall be outstanding and the Commitments shall have been terminated, notwithstanding that from time to time during the term of the Credit Agreement the Borrowers may be free from any Obligations. 
 (d) No payment made by any Borrower, any of Holdings, any Subsidiary Guarantor, any other guarantor or any other person or
received or collected by the Administrative Agent or any Secured Party from any of the Borrowers, any of Holdings, any Subsidiary Guarantor, any other guarantor or any other person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Subsidiary Guarantor hereunder, which shall,
notwithstanding any such payment (other than any payment made by such Subsidiary Guarantor in respect of the Obligations or any payment received or collected from such Subsidiary Guarantor in respect of the Obligations), remain

  

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liable for the Obligations up to the maximum liability of such Subsidiary Guarantor hereunder until the Obligations are paid in full (other than any indemnity and other contingent Obligations not
yet due and payable), no Letter of Credit shall be outstanding and the Commitments are terminated. 
 (e) Each
Subsidiary Guarantor agrees that its guarantee hereunder is a guarantee of payment when due, not of collection, and waives any right to require that any resort be had by the Administrative Agent or any other Secured Party to any of the security held
for payment of the Obligations or to any balance of any deposit account for credit on the books of the Administrative Agent or any other Secured Party in favor of the Borrowers or any other person. 
 Section 4. Right of Contribution. Each Subsidiary Guarantor hereby agrees that to the extent that any Subsidiary Guarantor shall
have paid more than its proportionate share of the aggregate of any payment made hereunder and by the Parent Guarantor under the Parent Guarantee, such Subsidiary Guarantor shall be entitled to seek and receive contribution in the maximum amount
permitted by law from and against any other Guarantor which has not paid its proportionate share of such payment. Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of all Guarantees, and each of the
Subsidiary Guarantors and Holdings shall allocate among themselves, in a fair and equitable manner, such payments. The provisions of this Section 4 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the
Administrative Agent and the Secured Parties, and each Subsidiary Guarantor shall remain jointly and severally liable to the Administrative Agent and the Secured Parties for the full amount guaranteed by it hereunder. 
 Section 5. Right of Set-off. In addition to any rights and remedies of the Administrative Agent and each Secured Party provided
by law, if an Event of Default exists and is continuing or the Loans have been accelerated, each Subsidiary Guarantor hereby irrevocably authorizes the Administrative Agent and each Secured Party at any time and from time to time, without prior
notice to any Subsidiary Guarantor, any such notice being waived by each Subsidiary Guarantor to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time
held by, and other indebtedness, credits or claims (in each case, in any currency and whether direct or indirect, absolute or contingent, matured or unmatured) at any time owing by, the Administrative Agent or such Secured Party (or any branch or
agency thereof) to or for the credit or the account of any Subsidiary Guarantor against any and all Obligations then due and payable by such Subsidiary Guarantor hereunder (whether at the stated maturity, by acceleration or otherwise). Each Secured
Party agrees to promptly notify the applicable Subsidiary Guarantor and the Administrative Agent after any such set-off and application made by such Secured Party; provided, however, that the failure to give such notice shall not affect the validity
of such set-off and application except as provided in applicable law. 
  

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 Section 6. No Subrogation; Subordination. Notwithstanding any payment made by
any Subsidiary Guarantor hereunder or the set-off or application of funds of such Subsidiary Guarantor by the Administrative Agent or any Secured Party, no Subsidiary Guarantor shall be entitled to be subrogated to any of the rights of the
Administrative Agent or any Secured Party against the Borrowers or any other Guarantor or any collateral security or guarantee or right of offset held by the Administrative Agent or any Secured Party for the payment of the Obligations, nor shall any
Subsidiary Guarantor be entitled to seek any contribution or reimbursement from the Borrowers or any other Guarantor in respect of payments made by such Subsidiary Guarantor hereunder, until all amounts owing to the Administrative Agent and the
Secured Parties by the Loan Parties on account of the Obligations (other than any indemnity and other contingent Obligations) are paid in full, and no Letter of Credit shall be outstanding. If any amount shall be paid to any Subsidiary Guarantor on
account of such subrogation rights at any time when all of the Obligations (other than any indemnity and other contingent Obligations) shall not have been paid in full, such amount shall be held by such Subsidiary Guarantor in trust for the
Administrative Agent and the Secured Parties, segregated from other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by such Subsidiary Guarantor, be turned over to the Administrative Agent in the exact form received by such
Subsidiary Guarantor (duly indorsed by such Subsidiary Guarantor to the Administrative Agent, if required), to be applied against the Obligations, whether matured or unmatured, in such order as is consistent with the Credit Agreement. The payment of
any amounts due with respect to any Indebtedness of the Borrowers or any Guarantor now or hereafter owing to any Subsidiary Guarantor by reason of any payment by such Subsidiary Guarantor under its guarantee hereunder is hereby subordinated to the
prior payment in full in cash of the Obligations (other than any indemnity and other contingent Obligations). Each Subsidiary Guarantor agrees that it will not demand, sue for or otherwise attempt to collect any such Indebtedness of the Borrowers or
such other Guarantor to such Subsidiary Guarantor until the Obligations shall have been paid in full in cash (other than any indemnity and other contingent Obligations). If, notwithstanding the foregoing sentence, any Subsidiary Guarantor shall,
prior to the indefeasible payment in full in cash of the Obligations (other than any indemnity and other contingent Obligations), collect, enforce or receive any amounts in respect of such Indebtedness, such amounts shall be collected, enforced and
received by such Subsidiary Guarantor as trustee for the Secured Parties and be paid over to the Administrative Agent on account of the Obligations without affecting in any manner the liability of such Subsidiary Guarantor under the other provisions
of its guarantee contained herein. 
 Section 7. Amendments, etc. with Respect to the Obligations. Each Subsidiary
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any other Guarantor and without notice to or further assent by any other Guarantor, any demand for payment of any of the Obligations made by
the Administrative Agent or any Secured Party may be rescinded by the Administrative Agent or such Secured Party and any of the Obligations continued, and the Obligations, or the liability of any other

  

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person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any Secured Party, and the Credit Agreement, the other Credit Documents, any other documents executed and delivered in connection therewith
may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Administrative Agent or
any Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. The obligations hereunder of each Subsidiary Guarantor shall not be affected by any failure by the Administrative Agent or any Secured
Party to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Guarantee or any property subject thereto. 
 Section 8. Guarantee Absolute and Unconditional. Each Subsidiary Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of reliance by the Administrative Agent or any Secured Party upon the guarantee contained in this Guarantee or acceptance of the guarantee contained in this Guarantee; the
Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Guarantee; and all dealings between the Borrowers and
any of the other Credit Parties, on the one hand, and the Administrative Agent and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this
Guarantee. Each Subsidiary Guarantor waives except to the extent that any such waiver would be expressly prohibited by law, diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrowers or any of
the other Guarantors with respect to the Obligations. Each Subsidiary Guarantor understands and agrees that its guarantee contained herein shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to
(a) the validity or enforceability of the Credit Agreement or any other Credit Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held
by the Administrative Agent or any Secured Party, (b) any defense, set-off or counterclaim (other than a defense of payment or performance and solely after the final payment in full in cash of the Obligations other than indemnity and other
contingent liabilities not yet due and payable, a defense arising from or in connection with the bad faith, gross negligence or willful misconduct of any Secured Party in respect of an indemnity Obligation) which may at any time be available to or
be asserted by any Borrower or any other person against the Administrative Agent or any Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrowers or such Subsidiary Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal discharge of Borrowers for the Obligations, or of such Subsidiary Guarantor

  

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under its guarantee contained herein, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Subsidiary
Guarantor, the Administrative Agent or any Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against any Borrower, any other Guarantor or any other person or
against any collateral security or guarantee for any Obligations or any right of offset with respect thereto, and any failure by the Administrative Agent or any Secured Party to make any such demand, to pursue such other rights or remedies or to
collect any payments from any Borrower, any other Subsidiary Guarantor or any other person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any Borrower, any other Guarantor or
any other person or any such collateral security, guarantee or right of offset, shall not relieve such Subsidiary Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any Secured Party against such Subsidiary Guarantor For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
 Section 9. Reinstatement. The guarantee contained herein shall continue to be effective, or be reinstated, as the case may be,
if and to the extent at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Secured Party upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrowers or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrowers or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made. Each Subsidiary Guarantor agrees that it will indemnify, on a joint and several basis, each Secured Party on written demand (as invoiced in reasonable detail) for all reasonable
costs and expenses (including reasonable fees of external counsel) incurred by such Secured Party in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law, other than any costs or expenses resulting from the gross negligence, willful misconduct or bad faith of such Secured Party.

 Section 10. Payments. Each Subsidiary Guarantor hereby guarantees that payments hereunder will be paid to the
Administrative Agent without set-off or counterclaim in U.S. Dollars at the Administrative Agent’s office. 
 Section 11. Concerning the Administrative Agent. 
 (a) The Administrative Agent has been
appointed as Administrative Agent pursuant to the Credit Agreement. The actions of the Administrative Agent hereunder are subject to the provisions of the Credit Agreement. The Administrative Agent shall

  

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have the right hereunder to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking action in accordance with this Guarantee and the
Credit Agreement. The Administrative Agent may resign and a successor Administrative Agent may be appointed in the manner provided in the Credit Agreement. Upon the acceptance of any appointment as the Administrative Agent by a successor
Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent under this Guarantee, and the retiring Administrative
Agent shall thereupon be discharged from its duties and obligations under this Guarantee. After any retiring Administrative Agent’s resignation, the provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by
it under this Guarantee only while it was the Administrative Agent. 
 (b) The Administrative Agent shall be
entitled to rely upon any written notice, statement, certificate, order or other document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person, and, with respect to all matters
pertaining to this Guarantee and its duties hereunder, upon advice of counsel selected by it. 
 (c) With respect
to any of its rights and obligations as a Lender, the Administrative Agent shall have and may exercise the same rights and powers hereunder. The term “Lenders,” “Lender” or any similar terms shall, unless the context clearly
otherwise indicates, include Administrative Agent in its individual capacity as a Lender. 
 (d) Each Subsidiary
Guarantor authorizes the Administrative Agent (on behalf of itself and the other Secured Parties) to (i) take and hold security for the payment of this Guarantee and the Obligations and exchange, enforce, waive, release any such security in
accordance with the terms of the Security Agreement (ii) apply such security and direct the order or manner of sale thereof in accordance with the terms of the Credit Agreement and the Security Agreement and (iii) release or substitute any
one or more endorsers, other guarantors or other obligors. Payment under this Guarantee is secured by the pledges and encumbrances of Collateral pursuant to the Security Agreement in accordance with the Credit Agreement. Reference is hereby made to
the Credit Agreement for a description of the Collateral pledged and the right of the respective parties to such property, to secure all the obligations of each Subsidiary Guarantor hereunder. 
 Section 12. Expenses. Each Subsidiary Guarantor will, upon demand pay to the Administrative Agent the amount of any and all
reasonable out-of-pocket costs and expenses, including the reasonable out-of-pocket fees and expenses of its external counsel and the reasonable out-of-pocket fees and expenses of any agents which the Administrative Agent

  

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may incur in connection with (i) the collection of the Obligations, (ii) the enforcement and administration hereof, (iii) the exercise or enforcement of any of the rights of the
Administrative Agent or any Secured Party hereunder or (iv) the failure by any Subsidiary Guarantor to perform or observe any of the provisions hereof. All amounts expended by the Administrative Agent and payable by any Subsidiary Guarantor
under this Section 12 shall be due promptly upon demand therefor but in any event within 2 Business Days (together with interest thereon accruing at the rate per annum equal to the highest interest rate then payable under the Credit Agreement
during the period from, and including, the date on which such funds were so expended to the date of repayment) and shall be part of the Obligations. Each of the Guarantor’s obligations under this Section 12 shall be joint and several and
shall survive the termination hereof and the discharge of any Subsidiary Guarantor’s other obligations under this Guarantee, the Credit Agreement, any Interest Rate Agreement and the other Credit Documents. 
 Section 13. Termination; Release. When all the Obligations (other than indemnity and other contingent Obligations) have been
paid in full and the Commitments of the Lenders to make any Loan or to issue any Letter of Credit under the Credit Agreement shall have expired or been sooner terminated, this Guarantee shall terminate. If all of the Capital Stock of any Subsidiary
Guarantor is sold, transferred or otherwise disposed of pursuant to a transaction permitted by the Credit Agreement, such Subsidiary Guarantor shall be released from its obligations under this Guarantee without any further action. This Guarantee
shall be construed as a separate agreement with respect to each Subsidiary Guarantor and may be amended, modified, supplemented, waived or released with respect to any Subsidiary Guarantor without the approval of any other Subsidiary Guarantor and
without affecting the obligations of any other Subsidiary Guarantor hereunder. 
 Section 14. Modification in
Writing. No amendment, modification, supplement, termination or waiver of or to any provision hereof, nor consent to any departure by any Subsidiary Guarantor therefrom, shall be effective unless the same shall be made in accordance with the
terms of the Credit Agreement and unless in writing and signed by the Administrative Agent and each Subsidiary Guarantor. Any amendment, modification or supplement of or to any provision hereof, any waiver of any provision hereof and any consent to
any departure by any Subsidiary Guarantor from the terms of any provision hereof shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Guarantee or
any other Credit Document, no notice to or demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in similar or other circumstances. 
 Section 15. Notices. Unless otherwise provided herein or in the Credit Agreement, any notice or other communication herein
required or permitted to be given shall be given in the manner and become effective as set forth in the Credit Agreement, as to any

  

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Subsidiary Guarantor, addressed to it at the address of the Borrowers set forth in the Credit Agreement and as to the Administrative Agent, addressed to it at the address set forth in the Credit
Agreement, or in each case at such other address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section 15. 
 Section 16. GOVERNING LAW. THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 Section 17. Severability of
Provisions. Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 18. Execution in Counterparts. This Guarantee and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original, but all such counterparts together shall constitute one and the same agreement. 
 Section 19. Business Days. In the event any time period or any date provided in this Guarantee ends or falls on a day other than a Business Day, then such time period shall be deemed to end and such date shall be deemed to fall
on the next succeeding Business Day, and performance herein may be made on such Business Day, with the same force and effect as if made on such other day. 
 Section 20. Relationship. The relationship of the Administrative Agent to any Subsidiary Guarantor hereunder is strictly and solely that of guarantor and secured party and nothing contained in
the Credit Agreement, this Guarantee, any Interest Rate Agreement or any other document or instrument now existing and delivered in connection therewith or otherwise in connection with the Obligations is intended to create, or shall in any event or
under any circumstance be construed as creating a partnership, joint venture, tenancy-in-common, joint tenancy or other relationship of any nature whatsoever between the Administrative Agent and such Subsidiary Guarantor other than as lender and
borrower. 
 Section 21. Waiver of Stay. Each Subsidiary Guarantor agrees that in the event that it shall hereafter
become the subject of a voluntary or involuntary proceeding under the Bankruptcy Code or that it shall otherwise be a party to any Federal or state bankruptcy, insolvency, moratorium or similar proceeding to which the provisions relating to the
automatic stay under Section 362 of the Bankruptcy Code or any similar provision in any such law

  

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is applicable, then, in any such case, the Administrative Agent shall be entitled to relief from any such automatic stay as it relates to the exercise of any of the rights and remedies available
to the Administrative Agent as provided in this Guarantee or in any other Credit Document. 
 Section 22. Additional
Guarantors. Pursuant to subsection 7.9 of the Credit Agreement, each Subsidiary that was not in existence or not a Qualified Subsidiary on the date of the Credit Agreement is required, under certain circumstances, to enter into this Guarantee as
a Subsidiary Guarantor upon becoming a Qualified Subsidiary. Upon execution and delivery after the date hereof by the Administrative Agent and such a Subsidiary of an instrument (a “Supplement”), in form and substance reasonably
satisfactory to the Administrative Agent, such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor herein. The execution and delivery of any Supplement adding an
additional Subsidiary Guarantor as a party to this Guarantee shall not require the consent of any other Subsidiary Guarantor hereunder. The rights and obligations of each Subsidiary Guarantor hereunder shall remain in full force and effect
notwithstanding the additional of any new Subsidiary Guarantor as a party to this Guarantee. 
  

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

					
	[Subsidiary Guarantors]
		 	as Subsidiary Guarantors
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	 Bank of America, N.A.,

		 	 as Administrative Agent

		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

  

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 Exhibit I-2 to 
 Credit Agreement 
  
  

 
 GUARANTEE 
 By 
 Language Line
Holdings LLC 
 in favor of 
 Bank of America, N.A., 
 as Administrative Agent 
  
  
 Dated as of November [    ], 2009 
  
  
  

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 GUARANTEE 
 THIS GUARANTEE (as amended, restated, supplemented or otherwise modified from time to time, (this “Guarantee”), dated as of November [    ], 2009 by Language Line
Holdings LLC, a Delaware limited liability company (“Holdings”), in favor of Bank of America, N.A., in its capacity as Administrative Agent for the Lenders from time to time party to the Credit Agreement to guarantee the payment and
performance of all of the Obligations of each Credit Party. 
 Each capitalized term used herein but not otherwise defined has
the meaning assigned to such term in the Credit Agreement. 
 R E C I T A L
S 
 A. Pursuant to that certain credit agreement, dated as of November [    ], 2009 (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Language Line, LLC, a Delaware limited liability company (“Language Line”) and Coto Acquisition LLC, a Delaware
limited liability company (“Coto” and together with Language Line, the “Borrowers”), Holdings, the Subsidiary Guarantors listed on the signature pages hereto, the several lenders from time to time party hereto (the
“Lenders”), Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as Joint Lead Arrangers and Joint Book-Runners, Credit Suisse Securities (USA) LLC, as Syndication Agent, Morgan
Stanley Senior Funding, Inc., as Documentation Agent and Bank of America, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”), the Lenders have agreed to make to or for the account of the
Borrowers certain Loans and to issue certain Letters of Credit for the account of the Borrowers. 
 B. It is contemplated that
any of the Credit Parties may enter into one or more Interest Rate Agreements. 
 C. Holdings is, pursuant to this Guarantee,
among other things, guaranteeing the obligations of the other Credit Parties under the Credit Agreement and the other Credit Documents. 
 D. Holdings will receive substantial benefits from the execution, delivery and performance of the Credit Documents and is therefore willing to enter into this Guarantee. 
 E. It is a condition to the obligations of the Lenders to make the Loans under the Credit Agreement and a condition to any Lender issuing
Letters of Credit under the

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Credit Agreement or entering into any Interest Rate Agreement that Holdings execute and deliver this Guarantee. 
 A G R E E M E N T 
 NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agrees as follows: 
 Section 1. Interpretation. The rules of interpretation specified in the Credit Agreement (including subsection 1.2 thereof)
shall be applicable to this Guarantee. 
 Section 2. Resolution of Drafting Ambiguities. Holdings acknowledges and
agrees that it was represented by counsel in connection with the execution and delivery hereof, that it and its counsel reviewed and participated in the preparation and negotiation hereof and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party (i.e., the Administrative Agent) shall not be employed in the interpretation hereof. 
 Section 3. Guarantee. Holdings hereby guarantees, jointly with the Subsidiary Guarantors and severally, as a primary obligor and not as a surety to each Secured Party and their respective
permitted successors and assigns, the prompt payment in full when due (whether at stated maturity, by required prepayment, declaration, demand, by acceleration or otherwise) of the principal of and interest (including any interest, fees, costs or
charges that would accrue but for the provisions of the Bankruptcy Code after any bankruptcy or insolvency petition under the Bankruptcy Code) on the Loans made by the Lenders to, and the Notes held by each Lender of, the Borrowers, and all other
Obligations from time to time owing to the Secured Parties by any Credit Party under any Credit Document in each case strictly in accordance with the terms thereof (such obligations being herein collectively called the “Guaranteed
Obligations”). Holdings hereby agrees that if the Borrowers or any Subsidiary Guarantor(s) shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, Holdings will
promptly pay the same in cash, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended
maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. 
 (a) To the
fullest extent permitted by applicable law, Holdings waives any defense based on or arising out of any defense of the Borrowers or the unenforceability of the Obligations or any part thereof from any cause, or the assertion from any cause of the
liability of the Borrowers, other than the final payment in full in cash of the Obligations; provided that subsequent to the final payment in full in cash of the Obligations other than indemnity and other contingent liabilities not yet due
and payable,

  

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Holdings may additionally assert a defense arising from or in connection with the bad faith, gross negligence or willful misconduct of any Secured Party in respect of an indemnity Obligation. In
any action or proceeding involving any state corporate limited partnership or limited liability company law, or any applicable state, federal or foreign bankruptcy, insolvency and fraudulent conveyances or transfers, reorganization or other law
affecting the rights of creditors generally, if the obligations of Holdings hereunder would otherwise be held or determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the
amount of its liability hereunder, then, notwithstanding any other provision to the contrary, the amount of such liability shall, without any further action by Holdings, any Credit Party or any other person, be automatically limited and reduced to
the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding. 
 (b) Holdings agrees that the Obligations may at any time and from time to time exceed the amount of the liability of Holdings hereunder without impairing the guarantee contained in this Guarantee or
affecting the rights and remedies of the Administrative Agent or any Secured Party hereunder; provided that there shall be no modification or increase of the liability of Holdings hereunder due to any such excess of Obligations. 
 (c) The guarantee contained in this Guarantee shall remain in full force and effect until all the Obligations of the Credit
Parties (other than any indemnity and other contingent obligations not yet due and payable), including the obligations of each Subsidiary Guarantor under the Subsidiary Guarantee of even date herewith, shall have been satisfied by payment in full,
no Letter of Credit shall be outstanding and the Commitments shall have been terminated, notwithstanding that from time to time during the term of the Credit Agreement the Borrowers may be free from any Obligations. 
 (d) No payment made by the Borrowers, any of Holdings, any Subsidiary Guarantor, any other guarantor or any other person or
received or collected by the Administrative Agent or any Secured Party from any of the Borrowers, any of Holdings, any Subsidiary Guarantor, any other guarantor or any other person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of Holdings hereunder, which shall, notwithstanding any such
payment (other than any payment made by Holdings in respect of the Obligations or any payment received or collected from Holdings in respect of the Obligations), remain liable for the Obligations up to the maximum liability of Holdings hereunder
until the Obligations are paid in full (other than any indemnity

  

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and other contingent Obligations not yet due and payable), no Letter of Credit shall be outstanding and the Commitments are terminated. 
 (e) Holdings agrees that its guarantee hereunder is a guarantee of payment when due, not of collection, and waives any right
to require that any resort be had by the Administrative Agent or any other Secured Party to any of the security held for payment of the Obligations or to any balance of any deposit account for credit on the books of the Administrative Agent or any
other Secured Party in favor of the Borrowers or any other person. 
 Section 4. Right of Contribution. Holdings
hereby agrees that to the extent that Holdings shall have paid more than its proportionate share of the aggregate of any payment made hereunder and by any Subsidiary Guarantor under the Subsidiary Guarantee, Holdings shall be entitled to seek and
receive contribution in the maximum amount permitted by law from and against any other Guarantor which has not paid its proportionate share of such payment. Holdings’ right of contribution shall be subject to the terms and conditions of all
Subsidiary Guarantees, and Holdings and the Subsidiary Guarantors shall allocate among themselves, in a fair and equitable manner, such payments. The provisions of this Section 4 shall in no respect limit the obligations and liabilities of
Holdings to the Administrative Agent and the Secured Parties, and Holdings shall remain jointly and severally liable to the Administrative Agent and the Secured Parties for the full amount guaranteed by Holdings hereunder. 
 Section 5. Right of Set-off. In addition to any rights and remedies of the Administrative Agent and each Secured Party provided
by law, if an Event of Default exists and is continuing or the Loans have been accelerated, Holdings hereby irrevocably authorizes the Administrative Agent and each Secured Party at any time and from time to time, without prior notice to Holdings,
any such notice being waived by Holdings to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness, credits or claims (in
each case, in any currency and whether direct or indirect, absolute or contingent, matured or unmatured) at any time owing by, the Administrative Agent or such Secured Party (or any branch or agency thereof) to or for the credit or the account of
Holdings against any and all Obligations then due and payable by Holdings hereunder (whether at the stated maturity, by acceleration or otherwise). Each Secured Party agrees to promptly notify Holdings and the Administrative Agent after any such
set-off and application made by such Secured Party; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application except as provided in applicable law. 
 Section 6. No Subrogation; Subordination. Notwithstanding any payment made by Holdings hereunder or the set-off or application
of funds of Holdings by the Administrative Agent or any Secured Party, Holdings shall not be entitled to be subrogated to any of the rights of the Administrative Agent or any Secured Party against the Borrowers or any Subsidiary

  

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Guarantor or any collateral security or guarantee or right of offset held by the Administrative Agent or any Secured Party for the payment of the Obligations, nor shall Holdings be entitled to
seek any contribution or reimbursement from the Borrowers or any other Guarantor in respect of payments made by Holdings hereunder, until all amounts owing to the Administrative Agent and the Secured Parties by the Loan Parties on account of the
Obligations (other than any indemnity and other contingent Obligations) are paid in full, and no Letter of Credit shall be outstanding. If any amount shall be paid to Holdings on account of such subrogation rights at any time when all of the
Obligations (other than any indemnity and other contingent Obligations) shall not have been paid in full, such amount shall be held by Holdings in trust for the Administrative Agent and the Secured Parties, segregated from other funds of Holdings,
and shall, forthwith upon receipt by Holdings, be turned over to the Administrative Agent in the exact form received by Holdings (duly indorsed by Holdings to the Administrative Agent, if required), to be applied against the Obligations, whether
matured or unmatured, in such order as is consistent with the Credit Agreement. The payment of any amounts due with respect to any Indebtedness of the Borrowers or any Subsidiary Guarantor now or hereafter owing to Holdings by reason of any payment
by Holdings under its guarantee hereunder is hereby subordinated to the prior payment in full in cash of the Obligations (other than any indemnity and other contingent Obligations). Holdings agrees that it will not demand, sue for or otherwise
attempt to collect any such Indebtedness of the Borrowers or any Subsidiary Guarantor to Holdings until the Obligations shall have been paid in full in cash (other than any indemnity and other contingent Obligations). If, notwithstanding the
foregoing sentence, Holdings shall, prior to the indefeasible payment in full in cash of the Obligations (other than any indemnity and other contingent Obligations), collect, enforce or receive any amounts in respect of such Indebtedness, such
amounts shall be collected, enforced and received by Holdings as trustee for the Secured Parties and be paid over to the Administrative Agent on account of the Obligations without affecting in any manner the liability of Holdings under the other
provisions of its guarantee contained herein. 
 Section 7. Amendments, etc. with Respect to the Obligations.
Holdings shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Subsidiary Guarantor and without notice to or further assent by any Subsidiary Guarantor, any demand for payment of any of the Obligations
made by the Administrative Agent or any Secured Party may be rescinded by the Administrative Agent or such Secured Party and any of the Obligations continued, and the Obligations, or the liability of any other person upon or for any part thereof, or
any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the
Administrative Agent or any Secured Party, and the Credit Agreement, the other Credit Documents, any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the
Administrative Agent may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Administrative Agent or any Secured Party for the payment of the Obligations

  

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may be sold, exchanged, waived, surrendered or released. Holdings’ obligations hereunder shall not be affected by any failure by the Administrative Agent or any Secured Party to protect,
secure, perfect or insure any Lien at any time held by it as security for the Obligations or for the guarantee contained in this Guarantee or any property subject thereto. 
 Section 8. Guarantee Absolute and Unconditional. Holdings waives any and all notice of the creation, renewal, extension or
accrual of any of the Obligations and notice of or proof of reliance by the Administrative Agent or any Secured Party upon the guarantee contained in this Guarantee or acceptance of the guarantee contained in this Guarantee; the Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Guarantee; and all dealings between the Borrowers and any of the other
Credit Parties, on the one hand, and the Administrative Agent and the Secured Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Guarantee. Holdings
waives except to the extent that any such waiver would be expressly prohibited by law, diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrowers or any of the other Subsidiary Guarantors with
respect to the Obligations. Holdings understands and agrees that its guarantee contained herein shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the
Credit Agreement or any other Credit Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Administrative Agent or any Secured
Party, (b) any defense, set-off or counter-claim (other than a defense of payment or-performance and solely after the final payment in full in cash of the Obligations other than indemnity and other contingent liabilities not yet due and
payable, a defense arising from or in connection with the bad faith, gross negligence or willful misconduct of any Secured Party in respect of an indemnity Obligation) which may at any time be available to or be asserted by any Borrower or any other
person against the Administrative Agent or any Secured Party, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrowers or Holdings) which constitutes, or might be construed to constitute, an equitable or
legal discharge of the Borrowers for the Obligations, or of Holdings under its guarantee contained herein, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against
Holdings, the Administrative Agent or any Secured Party may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against any Borrower, any Subsidiary Guarantor or any other person
or against any collateral security or guarantee for any Obligations or any right of offset with respect thereto, and any failure by the Administrative Agent or any Secured Party to make any such demand, to pursue such other rights or remedies or to
collect any payments from any Borrower, any Subsidiary Guarantor or any other person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of any Borrower, any Subsidiary Guarantor or
any other person or any such collateral security, guarantee or right of offset,

  

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shall not relieve Holdings of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the
Administrative Agent or any Secured Party against Holdings. For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings. 
 Section 9. Reinstatement. The guarantee contained herein shall continue to be effective, or be reinstated, as the case may be,
if and to the extent at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Secured Party upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrowers or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrowers or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made. Holdings agrees that it will indemnify each Secured Party on written demand (as invoiced in reasonable detail) for all reasonable costs and expenses (including reasonable fees of
external counsel) incurred by such Secured Party in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law, other than any costs or expenses resulting from the gross negligence, willful misconduct or bad faith of such Secured Party. 
 Section 10. Payments. Holdings hereby guarantees that payments hereunder will be paid to the Administrative Agent without
set-off or counterclaim in U.S. Dollars at the Administrative Agent’s office. 
 Section 11. Concerning the
Administrative Agent. 
 (a) The Administrative Agent has been appointed as Administrative Agent pursuant to
the Credit Agreement. The actions of the Administrative Agent hereunder are subject to the provisions of the Credit Agreement. The Administrative Agent shall have the right hereunder to make demands, to give notices, to exercise or refrain from
exercising any rights, and to take or refrain from taking action in accordance with this Guarantee and the Credit Agreement. The Administrative Agent may resign and a successor Administrative Agent may be appointed in the manner provided in the
Credit Agreement. Upon the acceptance of any appointment as the Administrative Agent by a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent under this Guarantee, and the retiring Administrative Agent shall thereupon be discharged from its duties and obligations under this Guarantee. After any retiring Administrative Agent’s resignation,
the provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by it under this Guarantee only while it was the Administrative Agent. 
  

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 (b) The Administrative Agent shall be entitled to rely upon any written
notice, statement, certificate, order or other document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person, and, with respect to all matters pertaining to this Guarantee and
its duties hereunder, upon advice of counsel selected by it. 
 (c) With respect to any of its rights and
obligations as a Lender, the Administrative Agent shall have and may exercise the same rights and powers hereunder. The term “Lenders,” “Lender” or any similar terms shall, unless the context clearly otherwise indicates, include
Administrative Agent in its individual capacity as a Lender. 
 (d) Holdings authorizes the Administrative Agent
(on behalf of itself and the other Secured Parties) to (i) take and hold security for the payment of this Guarantee and the Obligations and exchange, enforce, waive, release any such security in accordance with the terms of the Security
Agreement (ii) apply such security and direct the order or manner of sale thereof in accordance with the terms of the Credit Agreement and Security Agreement and (iii) release or substitute anyone or more endorsers, other guarantors or
other obligors. Payment under this Guarantee is secured by the pledges and encumbrances of Collateral pursuant to the Security Agreement in accordance with the Credit Agreement. Reference is hereby made to the Credit Agreement for a description of
the Collateral pledged and the right of the respective parties to such property, to secure all the obligations of Holdings hereunder. 
 Section 12. Expenses. Holdings will upon demand pay to the Administrative Agent the amount of any and all reasonable out-of-pocket costs and expenses, including the reasonable out-of-pocket fees and expenses of its external
counsel and the reasonable out-of-pocket fees and expenses of any agents which the Administrative Agent may incur in connection with (i) the collection of the Obligations, (ii) the enforcement and administration hereof, (iii) the
exercise or enforcement of any of the rights of the Administrative Agent or any Secured Party hereunder or (iv) the failure by Holdings to perform or observe any of the provisions hereof. All amounts expended by the Administrative Agent and
payable by Holdings under this Section 12 shall be due promptly upon demand therefor but in any event within 2 Business Days (together with interest thereon accruing at the rate per annum equal to the highest interest rate then payable under
the Credit Agreement during the period from, and including, the date on which such funds were so expended to the date of repayment) and shall be part of the Obligations. Holdings’ obligations under this Section 12 shall survive the
termination hereof and the discharge of Holdings’ other obligations under this Guarantee, the Credit Agreement, any Interest Rate Agreement and the other Credit Documents. 
  

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 Section 13. Termination; Release. 
 (a) When all the Obligations (other than indemnity and other contingent Obligations) have been paid in full and the Commitments of the
Lenders to make any Loan or to issue any Letter of Credit under the Credit Agreement shall have expired or been sooner terminated, this Guarantee shall terminate. 
 (b) Notwithstanding clause (a) of this Section 13 or any term of the Credit Agreement or other Credit Document, upon the consummation of the IPO of the IPO Company and the contribution of any
assets of Language Line Holdings LLC (other than the Capital Stock of the IPO Company, proceeds of the IPO and proceeds of a sale by Language Line Holdings LLC of the Capital Stock of the IPO Company pursuant to Section 8.5(j) of the Credit
Agreement) to a Credit Party, this Guarantee shall terminate and be of no further force or effect. 
 Section 14.
Modification in Writing. No amendment, modification, supplement, termination or waiver of or to any provision hereof, nor consent to any departure by Holdings therefrom, shall be effective unless the same shall be made in accordance with the
terms of the Credit Agreement and unless in writing and signed by the Administrative Agent and Holdings. Any amendment, modification or supplement of or to any provision hereof, any waiver of any provision hereof and any consent to any departure by
Holdings from the terms of any provision hereof shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Guarantee or any other Credit Document, no
notice to or demand on Holdings in any case shall entitle Holdings to any other or further notice or demand in similar or other circumstances. 
 Section 15. Notices. Unless otherwise provided herein or in the Credit Agreement, any notice or other communication herein required or permitted to be given shall be given in the manner and
become effective as set forth in the Credit Agreement, as to Holdings, addressed to it at the address of the Borrowers set forth in the Credit Agreement and as to the Administrative Agent, addressed to it at the address set forth in the Credit
Agreement, or in each case at such other address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section 15. 
 Section 16. GOVERNING LAW. THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 Section 17. Severability of
Provisions. Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

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 Section 18. Execution in Counterparts. This Guarantee and any amendments,
waivers, consents or supplements hereto may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute one and the same agreement.

 Section 19. Business Days. In the event any time period or any date provided in this Guarantee ends or falls on a
day other than a Business Day, then such time period shall be deemed to end and such date shall be deemed to fall on the next succeeding Business Day, and performance herein may be made on such Business Day, with the same force and effect as if made
on such other day. 
 Section 20. Relationship. The relationship of the Administrative Agent to Holdings hereunder
is strictly and solely that of guarantor and secured party and nothing contained in the Credit Agreement, this Guarantee, any Interest Rate Agreement or any other document or instrument now existing and delivered in connection therewith or otherwise
in connection with the Obligations is intended to create, or shall in any event or under any circumstance be construed as creating a partnership, joint venture, tenancy-in-common, joint tenancy or other relationship of any nature whatsoever between
the Administrative Agent and Holdings other than as lender and borrower. 
 Section 21. Waiver of Stay. Holdings
agrees that in the event that it shall hereafter become the subject of a voluntary or involuntary proceeding under the Bankruptcy Code or that it shall otherwise be a party to any Federal or state bankruptcy, insolvency, moratorium or similar
proceeding to which the provisions relating to the automatic stay under Section 362 of the Bankruptcy Code or any similar provision in any such law is applicable, then, in any such case, the Administrative Agent shall be entitled to relief from
any such automatic stay as it relates to the exercise of any of the rights and remedies available to the Administrative Agent as provided in this Guarantee or in any other Credit Document. 
  

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

					
	 LANGUAGE LINE HOLDINGS LLC
 as Guarantor

		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	 BANK OF AMERICA, N.A.,
 as Administrative Agent

		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

  

 S-1 

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 EXHIBIT J 
 FORM OF 
 SWING LINE LOAN PARTICIPATION CERTIFICATE 
 [Date] 
 [Name of Lender]

 [Address of Lender] 
 Dear Sirs:

 Pursuant to subsection 3.4(c) of the Credit Agreement, dated as of November [    ], 2009 (as amended,
modified or supplemented from time to time, the “Credit Agreement”), among Language Line, LLC, Coto Acquisition LLC, Language Line Holdings LLC, the several Subsidiary Guarantors party thereto, the several lenders from time to time
party thereto and Bank of America, N.A., as Administrative Agent, the undersigned hereby acknowledges receipt from you of $                     as
payment for a participating interest in the following Swing Line Loan: 
  

					
	Date of Swing Line Loan:	  	  
	  	

  

					
	Principal Amount of Swing Line Loan:	  	  
	  	

 Capitalized terms used herein without definition shall have such meaning as are ascribed to them
in the Credit Agreement. 
  

					
	 Very truly yours,

	
	 [                                        
 ],

	 as Swing Line Lender

		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

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 EXHIBIT K 
 LANDLORD’S ACCESS AGREEMENT 
 THIS LANDLORD’S ACCESS AGREEMENT
(the “Agreement”) is made and entered into as of [            ], 2009 by and
between                                         ,
having an office at
                                        
(“Landlord”) and Bank of America, N.A., having an office at
                                 as administrative agent (in such capacity,
“Administrative Agent”) for the benefit of the Secured Parties (as hereinafter defined) under the Credit Agreement (as hereinafter defined). 
 R E C I T A L S : 
 A.
Landlord is the record title holder and owner of the real property described in Schedule A attached hereto (the “Real Property”). 
 B. Landlord has leased all or a portion of the Real Property (the “Leased Premises”) to
[                    ] (“Lessee” [or “Borrower”]) pursuant to a certain lease agreement or agreements described in
Schedule B attached hereto (collectively, and as amended, amended and restated, supplemented or otherwise modified from time to time, the “Lease”). 
 C. [Lessee,] [(“Borrower”)], a [    ] [    ] (“Parent”) and the
Administrative Agent, among others, are in connection with the execution and delivery of this Agreement, entering into a credit agreement, dated as of November [    ], 2009 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have agreed
to make certain loans to Borrowers (collectively, the “Loans”). 
 D. [The Lessee is a subsidiary of Borrower.]
[Borrower is a subsidiary of the Lessee]1 
 E. The Lessee has, pursuant to the Credit Agreement, guaranteed the obligations of the Borrowers under the Credit Agreement and the other
documents evidencing and securing the Loans (collectively, the “Loan Documents”).]2 
 F. As security for the payment and performance of Lessee’s Obligations
under the Credit Agreement and the other [documents evidencing and securing the Loans (collectively, the “Loan Documents”)] [Loan Documents], Administrative Agent (for its benefit and the benefit of the Secured Parties) has or will
acquire a security interest in and lien upon all of Lessee’s personal property, inventory, accounts, goods, machinery, equipment, furniture and fixtures (together with all additions, 
  

	1	Include one of these alternatives if Borrower is not the Lessee. 

  

	2	Include if Borrower is not the Lessee. 

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substitutions, replacements and improvements to, and proceeds of, the foregoing, collectively, the “Personal Property”). 
 G. Administrative Agent has requested that Landlord execute this Agreement as a condition precedent to the making of the Loans under the
Credit Agreement. 
 A G R E E M E N T: 
 NOW, THEREFORE, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Landlord hereby represents, warrants and agrees in favor of Administrative Agent, as follows: 
 1.
Landlord certifies that (i) Landlord is the landlord under the Lease described in Schedule B attached hereto, (ii) the Lease is in full force and effect and has not been amended, modified or supplemented except as set forth in
Schedule B hereto and (iii) Landlord has sent no notice of default to Lessee under the Lease respecting a default which has not been cured by Lessee. 
 2. Landlord agrees that the Personal Property is and will remain personal property and not fixtures even though it may be affixed to or placed on the Leased Premises. Landlord further agrees that
Administrative Agent has the right to remove the Personal Property from the Leased Premises at any time in accordance with the terms of the Loan Documents; provided that Administrative Agent shall repair any damage arising from such removal.
Landlord further agrees that it will not hinder Administrative Agent’s actions in removing Personal Property from the Leased Premises or Administrative Agent’s actions in otherwise enforcing its security interest in the Personal Property.
Administrative Agent shall not be liable for any diminution in value of the Leased Premises caused by the absence of Personal Property actually removed or by the need to replace the Personal Property after such removal. Landlord acknowledges that
Administrative Agent shall have no obligation to remove the Personal Property from the Leased Premises. 
 3. Landlord
acknowledges and agrees that Lessee’s granting of a security interest in the Personal Property in favor of the Administrative Agent (for the benefit of the Secured Parties) shall not constitute a default under the Lease nor permit Landlord to
terminate the Lease or reenter or repossess the Leased Premises or otherwise be the basis for the exercise of any remedy by Landlord and Landlord hereby expressly consents to the granting of such security interest and agrees that such security
interest shall be superior to any lien of the Landlord (statutory or otherwise) in the Personal Property. 
 4. The terms and
provisions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns of Landlord (including, without limitation, any successor owner of the Real Property) and Administrative Agent. Landlord will disclose the
terms and conditions of this Agreement to any purchaser or successor to Landlord’s interest in the Leased Premises. 
 5.
All notices to any party hereto under this Agreement shall be in writing and sent to such party at its respective address set forth above (or at such other address as shall be designated by such party in a written notice to the other party complying
as to delivery with the terms

  

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of this Section 5) by certified mail, postage prepaid, return receipt requested or by overnight delivery service. 
 6. The provisions of this Agreement shall continue in effect until Landlord shall have received Administrative Agent’s written
certification that the Loans have been paid in full and all of Borrowers’ other Obligations under the Credit Agreement and the other Loan Documents have been satisfied. 
 7. THE INTERPRETATION, VALIDITY AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 8. Landlord agrees to execute, acknowledge and
deliver such further instruments as Administrative Agent may request to allow for the proper recording of this Agreement (including, without limitation, a revised landlord’s access agreement in form and substance sufficient for recording) or to
otherwise accomplish the purposes of this Agreement. 
  

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 IN WITNESS WHEREOF, Landlord and Administrative Agent have caused this Agreement to be duly
executed and delivered by their duly authorized officers as of the date first above written. 
  

			
	  

	 as Landlord

		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 BANK OF AMERICA, N.A.,

	 As Administrative Agent

		
	 By:
	 	  

		 	 Name:

		 	 Title:

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 Schedule A 
 Description of Real Property 

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 Schedule B 
 Description of Lease 
  

									
	 Lessor
	 	 Lessee
	 	 Dated
	 	 Modification
	 	 Location/
 Property
 Address

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 EXHIBIT L 
 Please see executed K&E Opinion 

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 EXHIBIT M 
 FORM OF CLOSING CERTIFICATE 
 Pursuant to subsection 6.1(i) of the Credit
Agreement, dated as of November [    ], 2009 (as amended, modified or supplemented from time to time, the “Credit Agreement”), among Language Line, LLC and Coto Acquisition LLC (collectively,
“Borrowers”), Language Line Holdings LLC, the several Subsidiary Guarantors party thereto, the several lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, the undersigned [INSERT TITLE OF
OFFICER] of [INSERT NAME OF CREDIT PARTY] (the “Company”) hereby certifies as follows, with capitalized terms used herein without definition having such meaning as are ascribed to them in the Credit Agreement: 
 1. The representations and warranties of the Company set forth in each of the Credit Documents to which it is a party or which are contained
in any certificate furnished by or on behalf of the Company pursuant to any of the Credit Documents to which it is a party are true and correct in all material respects on and as of the date hereof with the same effect as if made on the date hereof,
except for representations and warranties expressly stated to relate to a specific earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date. 
 2.                  is the duly elected and qualified
Secretary of the Company and the signature set forth for such officer below is such officer’s true and genuine signature. 
 The undersigned Secretary of the Company certifies on behalf of the Company as follows: 
 3. There are no liquidation
or dissolution proceedings pending or to my knowledge threatened against the Company, nor has any other event occurred adversely affecting or threatening the continued corporate existence of the Company. 
 4. The Company is a [corporation/limited liability company] duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization. 
 5. Attached hereto as Annex 1 is a true and complete copy of resolutions duly
adopted by the Board of Directors of the Company; such resolutions have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force
and effect and are the only corporate proceedings of the Company now in force relating to or affecting the matters referred to therein. 
 6. Attached hereto as Annex 2 is a true and complete copy of the [By-Laws/Operating Agreement] of the Company as in effect on the date hereof. 

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 7. Attached hereto as Annex 3 is a true and complete copy of the [Certificate of
Incorporation/Articles of Incorporation/Certificate of Formation], of the Company as in effect on the date hereof, and such certificate or such articles have not been amended, repealed, modified or restated. 
 8. The following persons are now duly elected and qualified officers of the Company holding the offices indicated next to their respective
names below, and such officers have held such offices with the Company at all times since the date indicated next to their respective titles to and including the date hereof, and the signatures appearing opposite their respective names below are the
true and genuine signatures of such officers, and each of such officers is duly authorized to execute and deliver on behalf of the Company each of the Credit Documents to which it is a party and any certificate or other document to be delivered by
the Company pursuant to the Credit Documents to which it is a party: 
  

							
	 Name
	 	 Office
	 	 Date
	 	 Signature

		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 
		 		 		 	
	 	 	 	 	 	 	 

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 EXHIBIT M 
 IN WITNESS WHEREOF, the undersigned have hereunto set our names as of the date set forth below. 
  

			
	  
	 	  

	 Name:
	 	Name:
	 Title:
	 	Title:

 Date: November [    ], 2009

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 EXHIBIT N 
 [FORM OF] 
 SOLVENCY CERTIFICATE 
 I, the undersigned, chief financial officer of Language Line Holdings LLC, a Delaware limited liability company (“Holdings”),
DO HEREBY CERTIFY that: 
 1. This Certificate is furnished pursuant to 6.1(j) of the Credit Agreement, (the
“Credit Agreement”) dated as of November [    ], 2009 among Language Line, LLC, a Delaware limited liability company, Coto Acquisition LLC, a Delaware limited liability company, Holdings, the subsidiary
guarantors listed on the signature pages thereto and otherwise party thereto from time to time (the “Subsidiary Guarantors” and, together with Holdings, the “Guarantors”), the lenders party thereto from time to time
(the “Lenders”), Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book-runners (together in such capacity, the
“Arrangers”), Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”), Morgan Stanley Senior Funding, Inc., as documentation agent (in such capacity, the “Documentation
Agent”) and Credit Suisse Securities (USA) LLC, as syndication agent (in such capacity, the “Syndication Agent”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Credit
Agreement. 
 2. On a consolidated basis and after giving effect to the Transactions, (a) the amount of the “present
fair saleable value” of the assets of Holdings and its Subsidiaries exceeds the amount of all “liabilities of Holdings and its Subsidiaries, contingent or otherwise”, as such quoted terms are determined in accordance with applicable
federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of Holdings and its Subsidiaries is greater than the amount that is required to pay the liability of Holdings and
its Subsidiaries on its debts as such debts become absolute and matured, (c) Holdings and its Subsidiaries do not have an unreasonably small amount of capital with which to conduct their business, and (d) Holdings and its Subsidiaries are
able to pay their debts as they mature. 
 For purposes of this Certificate, (i) “debt” means liability on
a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured or unsecured, or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured
or unmatured, disputed, undisputed, secured or unsecured. 
 [Signature Page Follows] 

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 IN WITNESS WHEREOF, I have hereunto set my hand this [    ]th day of
November, 2009. 
  

			
	LANGUAGE LINE HOLDINGS LLC
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 O-2 

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 EXHIBIT O-1 
 [FORM OF] 
 PERFECTION CERTIFICATE 
 Reference is hereby made to (i) that certain Security Agreement dated as of November [    ], 2009 (the
“Security Agreement”), between Language Line, LLC, a Delaware limited liability company (“Language Line”) and Coto Acquisition LLC, a Delaware limited liability company (“Coto”, and together with
Language Line, the “Borrowers”), Language Line Holdings LLC., a Delaware limited liability company (“Holdings”), the Subsidiary Guarantors party thereto (collectively, the “Subsidiary Guarantors”)
and the Administrative Agent (as hereinafter defined) and (ii) that certain Credit Agreement dated as of November [    ], 2009 (the “Credit Agreement”) among the Borrowers, Holdings, the Subsidiary
Guarantors, certain other parties thereto and Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein have the meanings assigned in the Credit
Agreement. 
 As used herein, the term “Companies” means Holdings, the Borrowers and each Subsidiary Guarantor.

 The undersigned hereby certify to the Administrative Agent as follows: 
 1. Names. A. The exact legal name of each Company, as such name appears in its respective certificate of incorporation or any other
organizational document, is set forth in Schedule 1(a). Each Company is (i) the type of entity disclosed next to its name in Schedule 1(a) and (ii) a registered organization except to the extent disclosed in
Schedule 1(a). Also set forth in Schedule 1(a) is the organizational identification number, if any, of each Company that is a registered organization, the Federal Taxpayer Identification Number of each Company and the
jurisdiction of formation of each Company. 
 B. Set forth in Schedule 1(b) hereto is a list of any other
corporate or organizational names each Company has had in the past five years, together with the date of the relevant change. 
 C. Set forth in Schedule 1(c) is a list of all other names (including trade names or similar appellations) used by each Company, or any other business or organization to which each Company became the successor by merger,
consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, in each case, on any filings with the Internal Revenue Service at any time between June 11, 2004 and the date hereof. Except as set forth on
Schedule 1(c), no Company has changed its jurisdiction of organization at any time during the past four months. 
 2. Current Locations. A. The chief executive office of each Company is located at the address set forth in Schedule 2(a) hereto. 
 B. Set forth in Schedule 2(b) are all locations where each Company maintains any books or records relating to any material Collateral. 
 C. Set forth in Schedule 2(c) hereto are all the other places of business of each Company where the Company has material
Collateral. 
 D. Set forth in Schedule 2(d) hereto are all other locations where each Company maintains any
material Collateral consisting of inventory or equipment not identified above. 

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 E. Set forth in Schedule 2(e) hereto are the names and addresses of all
persons or entities other than each Company, such as lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any material Collateral consisting of instruments, chattel paper,
inventory or equipment not identified above. 
 3. Extraordinary Transactions. Attached hereto as Schedule 3
is a true and accurate list of all purchases, acquisitions and other transactions with a value greater than $500,000 in which any of the Collateral was acquired by any Company since November 14, 2006 either (A) outside of the ordinary
course of business or (B) outside of the ordinary course of business from a person who is not in the business of selling goods of that kind. 
 4. File Search Reports. Attached hereto as Schedule 4 is a true and accurate summary of file search reports from (A) the Uniform Commercial Code filing offices (i) in each
jurisdiction identified in Section l(a) or Section 2 with respect to each legal name set forth in Section 1 and (ii) in each jurisdiction described in Schedule 1(c) or Schedule 3 relating to any of the
transactions described in Schedule 1(c) or Schedule 3 with respect to each legal name of the person or entity from which each Company purchased or otherwise acquired any of the Collateral and (B) each filing officer
in each real estate recording office identified on Schedule 7 with respect to real estate on which Collateral consisting of fixtures is or is to be located. A true copy of each financing statement, including judgment and tax liens,
bankruptcy and pending lawsuits or other filing identified in such file search reports has been or shall be delivered to the Administrative Agent on or prior to the Closing Date. 
 5. UCC Filings. The financing statements (duly authorized by each Company constituting the debtor therein), including the indications
of the collateral, attached as Schedule 5 relating to the Security Agreement or the applicable Mortgage, are in the appropriate forms for filing in the filing offices in the jurisdictions identified in Schedule 6 hereof.

 6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule of (i) the appropriate filing
offices for the financing statements attached hereto as Schedule 5 and (ii) the appropriate filing offices for the Mortgages and fixture filings relating to the Mortgaged Property set forth in Schedule 6(a),
(iii) the appropriate filing offices for the filings described in Schedule 12(c), and (iv) any other actions required to create, preserve, protect and perfect the security interests in the Pledged Collateral (as defined in
the Security Agreement) granted to the Administrative Agent pursuant to the Collateral Documents. No other filings or actions are required to create, preserve, protect and perfect the security interests in the Collateral granted to the
Administrative Agent pursuant to the Collateral Documents in Schedule 12(c). 
 7. Real Property. Attached
hereto as Schedule 7(a) is a list of all (i) real property owned, leased, or otherwise held by each Company located in the United States as of the Closing Date, (ii) real property to be encumbered by a Mortgage or a fixture
filing, which real property includes all real property owned, leased, or otherwise held by each Company as of the Closing Date having a value in excess of $1,000,000 (such real property, the “Mortgaged Property”), (iii) common names
and addresses and (iv) other information relating thereto required by such Schedule. Except as described in Schedule 7(b) attached hereto: (i) no Company has entered into any leases, subleases, tenancies, franchise
agreements, licenses or other occupancy arrangements as owner, lessor, sublessor, licensor, franchisor or grantor with respect to any of the real property described in Schedule 7(a) and (ii) no Company is party to any lease
agreement for the Leased Property which requires the consent of the landlord or any other party thereto to the Transactions. 
 8. Termination Statements. Attached hereto as Schedule 8(a) are the duly authorized termination statements in the appropriate form for filing in each applicable jurisdiction with respect to each Lien described therein.

  

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 9. No Change. The undersigned knows of no anticipated change in any of the
circumstances or with respect to any of the matters contemplated in Sections 1 through 8 and Section 10 through Section 17 of this Perfection Certificate except as set forth on Schedule 9 hereto or
as contemplated by the Credit Agreement. 
 10. Instruments and Chattel Paper. Attached hereto as Schedule 10
is a true and correct list of all promissory notes, instruments, (other than checks to be deposited in the ordinary course of business) tangible chattel paper, electronic chattel paper and other evidence of indebtedness held by each Company as
of the Closing Date, including all intercompany notes between or among any two or more Companies or any of their Subsidiaries, stating if such instruments, chattel paper or other evidence of indebtedness is pledged under the Security Agreement.

 11. Stock Ownership and Other Equity Interests. Attached hereto as Schedule 11 is a true and correct
list of each of all of the authorized, and the issued and outstanding stock, partnership interests, limited liability company membership interests or other equity interest of each Company and its Subsidiaries the record and beneficial owners of such
stock, partnership interests, membership interests or other equity interests setting forth the percentage of such equity interests pledged under the Security Agreement. Also set forth on Schedule 11 is each equity investment of each
Company that represents 50% or less of the equity of the entity in which such investment was made setting forth the percentage of such equity interests pledged under the Security Agreement. 
 12. Intellectual Property. A. Attached hereto as Schedule 12(a) is a schedule setting forth all of the U.S. Patents and
Trademarks (each as defined in the Security Agreement) owned by each Company and registered with the United States Patent and Trademark Office, and all other issued Patents and registered Trademarks owned by each Company, including the name of the
registered owner and the registration number of each such Patent and Trademark, and all material Patent Licenses and Trademark Licenses (each defined in the Security Agreement) to which each Company is a party. Attached hereto as Schedule
12(b) is a schedule setting forth all of the United States Copyrights (as defined in the Security Agreement) owned by each Company, including the name of the registered owner and the registration number of each such Copyright, and all
material Copyright Licenses (as defined in the Security Agreement) to which each Company is a party (other than licenses for commercially available, off-the-shelf software). 
 B. Attached hereto as Schedule 12(c) in proper form for filing with the United States Patent and Trademark Office and United
States Copyright Office are duly signed copies of each of the Patent Security Agreement, Trademark Security Agreement and the Copyright Security Agreement, as applicable, which are among the filings necessary to preserve, protect and perfect the
security interests in the United States Trademarks, Patents, and Copyrights set forth on Schedule 12(a) and Schedule 12(b). 
 13. Commercial Tort Claims. Attached hereto as Schedule 13 is a true and correct list of all Commercial Tort Claims (as defined in the Security Agreement) held by each Company,
including a brief description thereof and stating if such commercial tort claims are required to be pledged under the Security Agreement. 
 14. Deposit Accounts, Securities Accounts and Commodities Accounts. Attached hereto as Schedule 14 is a true and complete list of all Deposit Accounts, Securities Accounts and
Commodities Accounts (each as defined in the Security Agreement) maintained by each Company, including the name of each institution where each such account is held, the name of each such account and the name of each entity that holds each account
and stating if such account is to be subject to a control agreement pursuant to the Security Agreement and the reason for such account to be excluded from the control agreement requirement. 
  

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 15. Letter-of-Credit Rights. Attached hereto as Schedule 15 is a true
and correct list of all Letters of Credit issued in favor of each Company, as beneficiary thereunder, stating if letter-of-credit rights with respect to such Letters of Credit are required to be subject to a control arrangement pursuant to the
Security Agreement. 
 16. Insurance. Attached hereto as Schedule 16 is a true and correct list of all risk
property insurance, business interruption insurance, comprehensive general liability insurance, workers’ compensation/employer’s liability insurance, automobile liability insurance and excess/umbrella liability insurance maintained by
Holdings and its Subsidiaries pursuant to subsection 7.5 of the Credit Agreement. 
 17. Other Collateral. Attached
hereto as Schedule 17 is a true and correct list of all of the following types of collateral, if any, owned or held by each Company: (a) all agreements and contracts with any Governmental Authority exceeding $500,000 in value,
(b) all FCC licenses, (c) all aircraft and airplanes, (d) all ships and boats vessels, (e) all rolling stock and trains, (f) all oil, gas, minerals, and as extracted collateral, stating in each case, if such types of
collateral are required to be pledged pursuant to the Security Agreement. 
 [The Remainder of this Page has been intentionally
left blank.] 
  

 -4- 

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 IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this
     day of             , 2009. 
  

			
	LANGUAGE LINE, LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	COTO ACQUISITION LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	LANGUAGE LINE HOLDINGS LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	[SUBSIDIARY GUARANTORS]
		
	By:	 	  

		 	Name:
		 	Title:

  

 -5- 

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 EXHIBIT O-2 
 [FORM OF] 
 PERFECTION CERTIFICATE SUPPLEMENT

 This Perfection Certificate Supplement, dated as of
[            ], 20[    ] is delivered pursuant to Section 7.2(h) of that certain Credit Agreement dated as of November [    ], 2009 (the
“Credit Agreement”) among the Borrowers, Holdings, the Subsidiary Guarantors, certain other parties thereto and Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”).
Capitalized terms used but not defined herein have the meanings assigned in the Credit Agreement. 
 As used herein, the term
“Companies” means Holdings, the Borrowers and each Subsidiary Guarantor. 
 The undersigned, the
[                    ] of Holdings, the Borrowers and each Subsidiary Guarantor, hereby certify (in my capacity as
[                    ] and not in my individual capacity) to the Administrative Agent and each of the other Secured Parties that, as of the date
hereof, there has been no change in the information described in the Perfection Certificate delivered on the Closing Date (as supplemented by any perfection certificate supplements delivered prior to the date hereof, the “Prior Perfection
Certificate”), other than as follows: 
 1. Names. A. Except as listed on Schedule 1(a) attached
hereto and made a part hereof, set forth in Schedule 1(a) to the Prior Perfection Certificate is the exact legal name of each Company, as such name appears in its respective certificate of incorporation or any other organizational
document, is set forth in Schedule 1(a). Except as listed on Schedule 1(a) attached hereto and made a part hereof, each Company is (i) the type of entity disclosed next to its name in Schedule 1(a) to
the Prior Perfection Certificate and (ii) a registered organization except to the extent disclosed in Schedule 1(a) hereto. Except as listed on Schedule 1(a) attached hereto and made a part hereof, set forth in
Schedule l(a) to the Prior Perfection Certificate is the organizational identification number, if any, of each Company that is a registered organization, the Federal Taxpayer Identification Number of each Company and the jurisdiction
of formation of each Company. 
 B. Except as listed on Schedule 1(b) attached hereto and made a part hereof, set
forth in Schedule 1(b) of the Prior Perfection Certificate is a list of any other corporate or organizational names each Company has had in the past five years, together with the date of the relevant change. 
 C. Except as listed on Schedule 1(c) attached hereto and made a part hereof, set forth in Schedule 1(c) of the
Prior Perfection Certificate is a list of all other names (including trade names or similar appellations) used by each Company, or any other business or organization to which each Company became the successor by merger, consolidation, acquisition,
change in form, nature or jurisdiction of organization or otherwise, in each case, on any filings with the Internal Revenue Service at any time between June 11, 2004 and the date hereof. Except as set forth on Schedule 1(c) attached
thereto and hereto, no Company has changed its jurisdiction of organization at any time during the past four months. 
 2.
Current Locations. A. Except as listed on Schedule 2(a) attached hereto and made a part hereof, set forth in Schedule 2(a) of the Prior Perfection Certificate, the chief executive office of each Company is located
at the address set forth in Schedule 2(a) of the Prior Perfection Certificate. 

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 B. Except as listed on Schedule 2(b) attached hereto and made a part hereof,
set forth in Schedule 2(b) of the Prior Perfection Certificate are all locations where each Company maintains any books or records relating to any material Collateral. 
 C. Except as listed on Schedule 2(c) attached hereto and made a part hereof, set forth in Schedule 2(c) of the
Prior Perfection Certificate are all the other places of business of each Company where the Company has material Collateral. 
 D. Except as listed on Schedule 2(d) attached hereto and made a part hereof, set forth in Schedule 2(d) of the Prior Perfection Certificate are all other locations where each Company maintains any material
Collateral consisting of inventory or equipment not identified above. 
 E. Except as listed on Schedule 2(e)
attached hereto and made a part hereof, set forth in Schedule 2(e) of the Prior Perfection Certificate are the names and addresses of all persons or entities other than each Company, such as lessees, consignees, warehousemen or
purchasers of chattel paper, which have possession or are intended to have possession of any material Collateral consisting of instruments, chattel paper, inventory or equipment not identified above. 
 3. Extraordinary Transactions. Except as listed on Schedule 3 attached hereto and made a part hereof, set forth in
Schedule 3 of the Prior Perfection Certificate is a true and accurate list of all purchases, acquisitions and other transactions with a value greater than $500,000 in which any of the Collateral was acquired by any Company since
November 14, 2006 either (A) outside of the ordinary course of business or (B) outside of the ordinary course of business from a person who is not in the business of selling goods of that kind. 
 4. File Search Reports. Except as listed on Schedule 4 attached hereto and made a part hereof, set forth in
Schedule 4 of the Prior Perfection Certificate is a true and accurate summary of file search reports from (A) the Uniform Commercial Code filing offices (i) in each jurisdiction identified in Section 1(a) or Section 2
with respect to each legal name set forth in Section 1 and (ii) in each jurisdiction described in Schedule 1(c) or Schedule 3 hereto and thereto relating to any of the transactions described in Schedule
1(c) thereto or Schedule 3 hereto or thereto with respect to each legal name of the person or entity from which each Company purchased or otherwise acquired any of the Collateral and (B) each filing officer in each real
estate recording office identified on Schedule 7 hereto or thereto with respect to real estate on which Collateral consisting of fixtures is or is to be located. A true copy of each financing statement, including judgment and tax
liens, bankruptcy and pending lawsuits or other filing identified in such file search reports has been or shall be delivered to the Administrative Agent on or prior to the Closing Date. 
 5. UCC Filings. Except as listed on Schedule 5 attached hereto and made a part hereof, set forth in Schedule
5 of the Prior Perfection Certificate, the financing statements (duly authorized by each Company constituting the debtor therein), including the indications of the collateral, attached as Schedule 5 to the Prior Perfection
Certificate relating to the Security Agreement or the applicable Mortgage, are in the appropriate forms for filing in the filing offices in the jurisdictions identified in Schedule 6 thereto and hereto. 
 6. Schedule of Filings. Except as listed on Schedule 6 attached hereto and made a part hereof, set forth in
Schedule 6 of the Prior Perfection Certificate is a schedule of (i) the appropriate filing offices for the financing statements attached thereto and hereto as Schedule 5 and (ii) the appropriate filing offices
for the Mortgages and fixture filings relating to the Mortgaged Property set forth in Schedule 6(a) thereto and hereto, (iii) the appropriate filing offices for the filings described in Schedule 12(c) thereto
and hereto, and (iv) any other actions required to create, preserve, protect and perfect the security

  

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interests in the Pledged Collateral (as defined in the Security Agreement) granted to the Administrative Agent pursuant to the Collateral Documents. No other filings or actions are required to
create, preserve, protect and perfect the security interests in the Collateral granted to the Administrative Agent pursuant to the Collateral Documents in Schedule 12(c) thereto and hereto. 
 7. Real Property. Except as listed on Schedule 7(a) attached hereto and made a part hereof, set forth in Schedule
7(a) of the Prior Perfection Certificate Attached is a list of all (i) real property owned, leased, or otherwise held by each Company located in the United States as of the Closing Date, (ii) real property to be encumbered by a
Mortgage or a fixture filing, which real property includes all real property owned, leased, or otherwise held by each Company as of the Closing Date having a value in excess of $1,000,000 (such real property, the “Mortgaged Property”),
(iii) common names and addresses and (iv) other information relating thereto required by such Schedule. Except as described in Schedule 7(b) attached thereto or hereto: (i) no Company has entered into any leases,
subleases, tenancies, franchise agreements, licenses or other occupancy arrangements as owner, lessor, sublessor, licensor, franchisor or grantor with respect to any of the real property described in Schedule 7(a) thereto or hereto and
(ii) no Company is party to any lease agreement for the Leased Property which requires the consent of the landlord or any other party thereto to the Transactions. The Mortgages delivered on or prior to the Closing Date are in the appropriate form
for filing in the filing offices in the jurisdictions identified in Schedule 6. 
 8. Termination
Statements. Except as listed on Schedule 8(a) attached hereto and made a part hereof, set forth in Schedule 8(a) of the Prior Perfection Certificate are the duly authorized termination statements in the appropriate
form for filing in each applicable jurisdiction with respect to each Lien described therein. 
 9. No Change. The
undersigned knows of no anticipated change in any of the circumstances or with respect to any of the matters contemplated in Sections 1 through 8 and Section 10 through Section 17 hereto except as set forth on
Schedule 9 attached hereto and made a part hereof or as contemplated by the Credit Agreement. 
 10.
Instruments and Chattel Paper. Except as listed on Schedule 10 attached hereto and made a part hereof, set forth in Schedule 10 of the Prior Perfection Certificate Attached is a true and correct list of all
promissory notes, instruments, (other than checks to be deposited in the ordinary course of business) tangible chattel paper, electronic chattel paper and other evidence of indebtedness held by each Company as of the Closing Date, including all
intercompany notes between or among any two or more Companies or any of their Subsidiaries, stating if such instruments, chattel paper or other evidence of indebtedness is pledged under the Security Agreement. 
 11. Stock Ownership and Other Equity Interests. Except as listed on Schedule 11 attached hereto and made a part hereof,
set forth in Schedule 11 of the Prior Perfection Certificate is (x) a true and correct list of each of all of the authorized, and the issued and outstanding stock, partnership interests, limited liability company membership
interests or other equity interest of each Company and its Subsidiaries the record and beneficial owners of such stock, partnership interests, membership interests or other equity interests setting forth the percentage of such equity interests
pledged under the Security Agreement, and (y) each equity investment of each Company that represents 50% or less of the equity of the entity in which such investment was made setting forth the percentage of such equity interests pledged under
the Security Agreement. 
 12. Intellectual Property. A. Except as listed on Schedule 12(1) attached hereto
and made a part hereof, set forth in Schedule 12(a) of the Prior Perfection Certificate is a schedule setting forth all of the U.S. Patents and Trademarks (each as defined in the Security Agreement) owned by each Company

  

 -3- 

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and registered with the United States Patent and Trademark Office, and all other issued Patents and registered Trademarks owned by each Company, including the name of the registered owner and the
registration number of each such Patent and Trademark, and all material Patent Licenses and Trademark Licenses (each defined in the Security Agreement) to which each Company is a party. Except as listed on Schedule 12(b) attached
hereto and made a part hereof, set forth in Schedule 12(b) of the Prior Perfection Certificate is a schedule setting forth all of the United States Copyrights (as defined in the Security Agreement) owned by each Company, including the
name of the registered owner and the registration number of each such Copyright, and all material Copyright Licenses (as defined in the Security Agreement) to which each Company is a party (other than licenses for commercially available,
off-the-shelf software). 
 B. Except as listed on Schedule 12(c) attached hereto and made a part hereof, set
forth in Schedule 12(c) of the Prior Perfection Certificate, in proper form for filing with the United States Patent and Trademark Office and United States Copyright Office are duly signed copies of each of the Patent Security
Agreement, Trademark Security Agreement and the Copyright Security Agreement, as applicable, which are among the filings necessary to preserve, protect and perfect the security interests in the United States Trademarks, Patents, and Copyrights set
forth on Schedule 12(a) and Schedule 12(b) thereto and hereto. 
 13. Commercial Tort Claims.
Except as listed on Schedule 13 attached hereto and made a part hereof, set forth in Schedule 13 of the Prior Perfection Certificate is a true and correct list of all Commercial Tort Claims (as defined in the Security
Agreement) held by each Company, including a brief description thereof and stating if such commercial tort claims are required to be pledged under the Security Agreement. 
 14. Deposit Accounts, Securities Accounts and Commodities Accounts. Except as listed on Schedule 14 attached hereto and made a part hereof, set forth in Schedule 14
of the Prior Perfection Certificate is a true and complete list of all Deposit Accounts, Securities Accounts and Commodities Accounts (each as defined in the Security Agreement) maintained by each Company, including the name of each institution
where each such account is held, the name of each such account and the name of each entity that holds each account and stating if such account is to be subject to a control agreement pursuant to the Security Agreement and the reason for such account
to be excluded from the control agreement requirement. 
 15. Letter-of-Credit Rights. Except as listed on Schedule
15 attached hereto and made a part hereof, set forth in Schedule 15 of the Prior Perfection Certificate is a true and correct list of all Letters of Credit issued in favor of each Company, as beneficiary thereunder, stating if
letter-of-credit rights with respect to such Letters of Credit are required to be subject to a control arrangement pursuant to the Security Agreement. 
 16. Insurance. Except as listed on Schedule 16 attached hereto and made a part hereof, set forth in Schedule 16 of the Prior Perfection Certificate is a true and correct
list of all risk property insurance, business interruption insurance, comprehensive general liability insurance, workers’ compensation/employer’s liability insurance, automobile liability insurance and excess/umbrella liability insurance
maintained by Holdings and its Subsidiaries pursuant to subsection 7.5 of the Credit Agreement. 
 17. Other Collateral.
Except as listed on Schedule 17 attached hereto and made a part hereof, set forth in Schedule 17 of the Prior Perfection Certificate is a true and correct list of all of the following types of collateral, if any, owned or
held by each Company: (a) all agreements and contracts with any Governmental Authority exceeding $500,000 in value, (b) all FCC licenses, (c) all aircraft and airplanes, (d) all ships and boats vessels, (e) all rolling stock and
trains, (f) all oil, gas, minerals, and as extracted

  

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collateral, stating in each case, if such types of collateral are required to be pledged pursuant to the Security Agreement. 
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 IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this
     day of             , 20[    ]. 
  

			
	LANGUAGE LINE, LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	COTO ACQUISITION LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	LANGUAGE LINE HOLDINGS LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	[SUBSIDIARY GUARANTORS]
		
	By:	 	  

		 	Name:
		 	Title:

  

 -6- 

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 EXHIBIT P 
 [Form of] 
 BORROWING REQUEST 
 Bank of America, N.A. 
 as
Administrative Agent for 
 the Lenders referred to below, 
 Mail Code: TX1-492-14-04 
 Bank of America Plaza 
 901 Main St. 
 Dallas, TX 75202-3714 
 Attention: Maria T. Bulin 
 Phone:
(214) 209-3098 
 Fax: (214)290-9411 
 Re:  Language Line, LLC and Coto Acquisition LLC 
 [Date]

 Ladies and Gentlemen: 
 Reference is made to the Credit Agreement dated as of November [    ], 2009 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Language
Line, LLC and Coto Acquisition LLC (the “Borrowers”), Language Line Holdings LLC, the Subsidiary Guarantors (such term and each other capitalized term used but not defined herein having the meaning given it in section 1 of the
Credit Agreement), the Lenders from time to time party thereto, Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc. as joint lead arrangers and joint book-runners, Credit Suisse Securities (USA)
LLC, as syndication agent, Morgan Stanley Senior Funding, Inc., as documentation agent and Bank of America, N.A., as administrative agent for the Lenders. The Borrowers hereby give you notice pursuant to Section 4.1 of the Credit Agreement that
it requests a Borrowing under the Credit Agreement, and in that connection sets forth below the terms on which such Borrowing is requested to be made: 
  

							
	(A)	  	Class of Borrowing	  	[Revolving Borrowing]	  	
		  		  	[Tranche B Term Borrowing]	  	
		  		  	[Swingline Borrowing]	  	
				
	(B)	  	 Principal amount of
Borrowing1
	  	  
	  	
				
	(C)	  	 Date of Borrowing
(which is a Business Day)
	  	  
	  	

  

	1	See subsection 3.1(c) for minimum borrowing amounts. 

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	(D)	  	Type of Borrowing	  	[ABR] [Eurodollar]	  	
				
	(E)	  	Interest Period and the last day thereof2
	  	  
	  	
		
	(F)	  	Funds are requested to be disbursed to Borrower’s account with
		  	[                                        
            ] (Account No.             ).

 The Borrowers hereby represent and warrant that the conditions to lending specified in Sections 6.2(a) and (b) of the Credit Agreement
are satisfied as of the date hereof. 
 [Signature Page Follows] 
  

	2	Shall be subject to the definition of “Interest Period” in the Credit Agreement. 

  

 -2- 

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	LANGUAGE LINE, LLC
		
	 By:
	 	  

		 	 Name:

		 	 Title:

	
	 COTO ACQUISITION LLC

		
	 By:
	 	  

		 	 Name:

		 	 Title:

  

 -3- 

Table of Contents

 EXHIBIT Q-l 
 [FORM OF] 
 U.S. TAX CERTIFICATE 
 (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 
 Reference is made to that certain credit agreement, dated as of [            ],
2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among Language Line, LLC, a Delaware limited liability company (“Language Line”), Coto
Acquisition LLC, a Delaware limited liability company (“Coto” and, together with Language Line, the “Borrowers” and each a “Borrower”), Language Line Holdings LLC, a Delaware limited liability
company (“Holdings”), the subsidiary guarantors listed on the signature pages hereto and otherwise party hereto from time to time (the “Subsidiary Guarantors” and, together with Holdings, the
“Guarantors”), the several lenders party hereto from time to time (the “Lenders”), Bane of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers
and joint book-runners (together in such capacity, the “Arrangers”), Bank of America, N.A. as administrative agent (in such capacity, the “Administrative Agent”), Morgan Stanley Senior Funding, Inc. as documentation
agent (in such capacity, the “Documentation Agent”) and Credit Suisse Securities (USA) LLC as syndication agent (in such capacity, the “Syndication Agent”). Terms used herein without definition shall have the
meanings assigned to such terms in the Credit Agreement. 
 Pursuant to the provisions of subsection 4.14(d)(iv) of the Credit
Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s) in respect of which it is providing this certificate, (ii) it is not a
“bank” as such term is used in Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, (iv) it is not a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code, and (v) no payments in connection with the Credit Documents are effectively connected with the undersigned’s conduct of a U.S. trade or business. 
 The undersigned has furnished the Administrative Agent and the Borrowers with a certificate of its non-U.S. person status on Internal
Revenue Service Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrowers and the Administrative Agent in writing
and (2) the undersigned shall furnish the Borrowers and the Administrative Agent a properly completed and currently effective certificate in either the calendar year in which payment is to be made by the Borrowers or the Administrative Agent to
the undersigned, or in either of the two calendar years preceding such payment. 
  

			
	[NAME OF LENDER]
		
	By:	 	  

		 	Name:
		 	Title:

Table of Contents

 EXHIBIT Q-2 
 [FORM OF] 
 U.S. TAX CERTIFICATE 
 (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 
 Reference is made to that certain credit agreement, dated as of [            ],
2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among Language Line, LLC, a Delaware limited liability company (“Language Line”), Coto
Acquisition LLC, a Delaware limited liability company (“Coto” and, together with Language Line, the “Borrowers” and each a “Borrower”), Language Line Holdings LLC, a Delaware limited liability
company (“Holdings”), the subsidiary guarantors listed on the signature pages hereto and otherwise party hereto from time to time (the “Subsidiary Guarantors” and, together with Holdings, the
“Guarantors”), the several lenders party hereto from time to time (the “Lenders”), Bane of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers
and joint book-runners (together in such capacity, the “Arrangers”), Bank of America, N.A. as administrative agent (in such capacity, the “Administrative Agent”), Morgan Stanley Senior Funding, Inc. as documentation
agent (in such capacity, the “Documentation Agent”) and Credit Suisse Securities (USA) LLC as syndication agent (in such capacity, the “Syndication Agent”). Terms used herein without definition shall have the
meanings assigned to such terms in the Credit Agreement. 
 Pursuant to the provisions of subsection 4.14(d)(iv) of the Credit
Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are the sole
beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) neither the undersigned nor any of its partners/members is a bank within the meaning of Section 881(c)(3)(A) of Code, (iv) none of its
partners/members is a ten percent shareholder of the Borrowers within the meaning of Section 881(c)(3)(B) of the Code, (v) none of its partners/members is a “controlled foreign corporation” related to the Borrowers as described in
Section 881(c)(3)(C) of the Code, and (vi) no payments in connection with the Credit Documents are effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business. 
 The undersigned has furnished the Administrative Agent and the Borrowers with Internal Revenue Service Form W-8IMY accompanied by an
Internal Revenue Service Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform the Borrowers and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrowers and the Administrative Agent in writing with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 
  

			
	[NAME OF LENDER]
		
	By:	 	  

		 	Name:
		 	Title

Table of Contents

 EXHIBIT Q-3 
 [FORM OF] 
 U.S. TAX CERTIFICATE 
 (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 
 Reference is made to that certain credit agreement, dated as of
[            ],2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among Language Line, LLC, a
Delaware limited liability company (“Language Line”), Coto Acquisition LLC, a Delaware limited liability company (“Coto” and, together with Language Line, the “Borrowers” and each a
“Borrower”), Language Line Holdings LLC, a Delaware limited liability company (“Holdings”), the subsidiary guarantors listed on the signature pages hereto and otherwise party hereto from time to time (the
“Subsidiary Guarantors” and, together with Holdings, the “Guarantors”), the several lenders party hereto from time to time (the “Lenders”), Bane of America Securities LLC, Credit Suisse Securities
(USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint book-runners (together in such capacity, the “Arrangers”), Bank of America, N.A. as administrative agent (in such capacity, the
“Administrative Agent”), Morgan Stanley Senior Funding, Inc. as documentation agent (in such capacity, the “Documentation Agent”) and Credit Suisse Securities (USA) LLC as syndication agent (in such capacity, the
“Syndication Agent”). Terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement. 
 Pursuant to the provisions of subsection 4.14(d)(iv) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of
which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrowers within the meaning of Section 881(c)(3)(B) of the
Code, (iv) it is not a “controlled foreign corporation” related to the Borrowers as described in Section 881(c)(3)(C) of the Code, and (v) no payments in connection with the Credit Documents are effectively connected with
the undersigned’s conduct of a U.S. trade or business. 
 The undersigned has furnished its participating foreign Lender
with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so
inform such foreign Lender in writing and (2) the undersigned shall have at all times furnished such foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments. 
  

			
	[NAME OF LENDER]
		
	By:	 	  

		 	Name:
		 	Title:

Table of Contents

 EXHIBIT Q-4 
 [FORM OF] 
 U.S. TAX CERTIFICATE 
 (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 
 Reference is made to that certain credit agreement, dated as of [            ],
2009 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”), among Language Line, LLC, a Delaware limited liability company (“Language Line”), Coto
Acquisition LLC, a Delaware limited liability company (“Coto” and, together with Language Line, the “Borrowers” and each a “Borrower”), Language Line Holdings LLC, a Delaware limited liability
company (“Holdings”), the subsidiary guarantors listed on the signature pages hereto and otherwise party hereto from time to time (the “Subsidiary Guarantors” and, together with Holdings, the
“Guarantors”), the several lenders party hereto from time to time (the “Lenders”), Bane of America Securities LLC, Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers
and joint book-runners (together in such capacity, the “Arrangers”), Bank of America, N.A. as administrative agent (in such capacity, the “Administrative Agent”), Morgan Stanley Senior Funding, Inc. as documentation
agent (in such capacity, the “Documentation Agent”) and Credit Suisse Securities (USA) LLC as syndication agent (in such capacity, the “Syndication Agent”). Terms used herein without definition shall have the
meanings assigned to such terms in the Credit Agreement. 
 Pursuant to the provisions of subsection 4.14( d)(iv) of the Credit
Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such participation,
(iii) neither the undersigned nor any of its partners/members is a bank within the meaning of Section 881(c)(3)(A) of Code, (iv) none of its partners/members is a ten percent shareholder of the Borrowers within the meaning of
Section 881(c)(3)(B) of the Code, (v) none of its partners/members is a “controlled foreign corporation” related to the Borrowers as described in Section 881(c)(3)(C) of the Code, and (vi) no payments in connection with
the Credit Documents are effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business. 
 The undersigned has furnished its participating foreign Lender with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN from each of its partners/members claiming
the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the under-signed shall promptly so inform such foreign Lender in writing and (2) the
undersigned shall have at all times furnished such foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the under-signed, or in either of the two calendar
years preceding such payments. 
  

			
	[NAME OF LENDER]
		
	By:	 	  

		 	Name:
		 	Title

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