Document:

exv10w5

Exhibit 10.5

SUBORDINATION AND INTERCREDITOR AGREEMENT 

     THIS SUBORDINATION AND INTERCREDITOR AGREEMENT (this “Agreement”) is entered into as of this
October 1, 2010, by and among Blackrock Kelso Capital Corporation, a Delaware corporation,
PennantPark Investment Corporation, a Maryland corporation, Citibank, N.A., a national association
and THL Credit, Inc., a Delaware corporation (collectively, the “Subordinated Creditors”), CBay
Inc., a Delaware corporation (“CBay”), MedQuist Inc., a New Jersey corporation (“MedQuist”),
MedQuist Transcriptions, Ltd., a New Jersey corporation (“MedQuist Transcriptions”, and together
with CBay and MedQuist, the “Companies”), and General Electric Capital Corporation, a Delaware
corporation, as Agent for all Senior Lenders party to the Senior Credit Agreement described below.

R E C I T A L S

     A. The Companies, Agent and Senior Lenders (as hereinafter defined) have entered into a Credit
Agreement of even date herewith (as the same may be amended, supplemented or otherwise modified
from time to time, the “Senior Credit Agreement”) pursuant to which, among other things, Senior
Lenders have agreed, subject to the terms and conditions set forth in the Senior Credit Agreement,
to make certain loans and financial accommodations to the Companies. All of the Companies’
obligations to Agent and Senior Lenders under the Senior Credit Agreement and the other Senior Debt
Documents (as hereinafter defined) are secured by liens on and security interests in substantially
all of the now existing and hereafter acquired real and personal property of each Company (the
“Collateral”).

     B. The Companies and the Subordinated Creditors have entered into a Senior Subordinated Note
Purchase Agreement, dated as of September 30, 2010 (as the same may be amended, supplemented or
otherwise modified from time to time as permitted hereunder, the “Subordinated Note Purchase
Agreement”) pursuant to which the Subordinated Creditors are extending credit to the Companies as
evidenced by Subordinated Promissory Notes in the aggregate principal amount of $85,000,000 (as the
same may be amended, supplemented or otherwise modified from time to time as permitted hereunder,
the “Subordinated Notes”).

     C. As an inducement to and as one of the conditions precedent to the agreement of Agent and
Senior Lenders to consummate the transactions contemplated by the Senior Credit Agreement, Agent
and Senior Lenders have required the execution and delivery of this Agreement by the Subordinated
Creditors and the Companies in order to set forth the relative rights and priorities of Agent,
Senior Lenders and the Subordinated Creditors under the Senior Debt Documents and the Subordinated
Debt Documents (as hereinafter defined).

     NOW, THEREFORE, in order to induce Agent and Senior Lenders to consummate the transactions
contemplated by the Senior Credit Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are
acknowledged, the parties hereto hereby agree as follows:

1. Definitions. The following terms shall have the following meanings in this Agreement:

 

 

     “Additional Available Cash” shall have the meaning set forth in the Senior Credit
Agreement.

     “Agent” means General Electric Capital Corporation, as Agent for the Senior Lenders,
or any other Person appointed by the holders of the Senior Debt as administrative agent for
purposes of the Senior Debt Documents and this Agreement.

     “Bank Product Obligations” shall have the meaning set forth in the Senior Credit
Agreement as in effect on the date hereof.

     “Bankruptcy Code” means Chapter 11 of Title 11 of the United States Code, as amended
from time to time and any successor statute and all rules and regulations promulgated thereunder.

     “Consolidated Total Leverage Ratio” shall have the meaning set forth in the Senior
Credit Agreement.

     “Designated IPO Proceeds Amount” shall have the meaning set forth in the Senior Credit
Agreement.

     “Distribution” means, with respect to any indebtedness or obligation, (a) any payment
or distribution by any Person of cash, securities or other property, by set-off or otherwise, on
account of such indebtedness or obligation, (b) any redemption, purchase or other acquisition of
such indebtedness or obligation by any Person or (c) the granting of any lien or security interest
to or for the benefit of the holders of such indebtedness or obligation in or upon any property of
any Person; provided, however, that “Distribution” shall not include (i) the accretion of any
interest on and with respect to the Subordinated Notes to the extent permitted hereunder and (ii)
Reorganization Securities.

     “Enforcement Action” means (a) to take from or for the account of any Company or any
guarantor of the Subordinated Debt, by set-off or in any other manner, the whole or any part of any
moneys which may now or hereafter be owing by any Company or any such guarantor with respect to the
Subordinated Debt, (b) to sue for payment of, or to initiate or participate with others in any
suit, action or proceeding against any Company or any such guarantor to (i) enforce payment of or
to collect the whole or any part of the Subordinated Debt or (ii) commence judicial enforcement of
any of the rights and remedies under the Subordinated Debt Documents or applicable law with respect
to the Subordinated Debt, (c) to accelerate the Subordinated Debt, (d) to exercise any put option
or to cause any Company or any such guarantor to honor any redemption or mandatory prepayment
obligation under any Subordinated Debt Document or (e) take any action under the provisions of any
state or federal law, including, without
limitation, the Uniform Commercial Code, or under any contract or agreement, to enforce, foreclose
upon, take possession of or sell any property or assets of any Company or any such guarantor;
provided, however, that the term Enforcement Action shall not include (i) the initiation or
maintenance of any suit or action by a Subordinated Creditor

 

 

solely to the extent necessary to prevent the running of any applicable statute of limitations or
similar permanent restriction on claims, or (ii) sending a Subordinated Debt Default Notice to any
Obligor.

     “GECC Loan Documents” means the Senior Credit Agreement and all other agreements,
documents and instruments executed from time to time in connection therewith, as the same may be
amended, supplemented or otherwise modified from time to time.

     “Group Member” shall have the meaning set forth in the Senior Credit Agreement.

     “Holdings” means CBaySystems Holdings Limited, a company incorporated in the British
Virgin Islands and as such entity may be converted to a Delaware corporation pursuant to Section
265 of the Delaware General Corporation Law.

     “Holdings IPO” shall have the meaning set forth in the Senior Credit Agreement.

     “Letter of Credit” shall have the meaning set forth in the Senior Credit Agreement.

     “Liens” shall have the meaning set forth in the Senior Credit Agreement.

     “Net Cash Proceeds” shall have the meaning set forth in the Senior Credit Agreement.

     “Obligors” shall mean the Borrower and Guarantors (each as defined in the Senior
Credit Agreement).

     “Paid in Full” means, with respect to the Senior Debt, all Senior Debt (excluding (i)
contingent indemnification obligations for which no claim has been made, and (ii) contingent Bank
Product Obligations and Secured Hedging Obligations not yet due and payable or becoming due and
payable upon termination of commitments and repayment of all Senior Debt under Senior Debt
Documents) has been paid in full in cash, all letter of credit reimbursement obligations have been
cash collateralized in an amount equal to 102% of the aggregate stated amount of all outstanding
letters of credit on terms reasonably acceptable to the Senior Agent, and the termination of all
commitments to lend under the Senior Debt Documents.

     “Permitted Refinancing” means any refinancing of the Senior Debt under the GECC Loan
Documents provided that the financing documentation entered into by the
Companies in connection with such Permitted Refinancing constitute Permitted Refinancing Senior
Debt Documents.

     “Permitted Refinancing Senior Debt Documents” means any financing documentation which
replaces the GECC Loan Documents and pursuant to which the

 

 

Senior Debt under the GECC Loan Documents are refinanced, as such financing documentation may be
amended, supplemented or otherwise modified from time to time in compliance with this Agreement,
but specifically excluding any such financing documentation to the extent that it contains, either
initially or by amendment or other modification, any material terms, conditions, covenants or
defaults other than those which (a) then exist in the GECC Loan Documents or (b) could be included
in the GECC Loan Documents by an amendment or other modification that would not be prohibited by
the terms of this Agreement.

     “Permitted Subordinated Debt Payments” means (i) regularly scheduled payments of
interest in cash or in kind on the Subordinated Debt due and payable on a non-accelerated basis in
accordance with the terms of the Subordinated Debt Documents as in effect on the date hereof or as
modified in accordance with the terms of this Agreement, and payment of interest in kind on any
incremental default rate, (ii) to the extent no Senior Default exists or would result therefrom,
optional prepayments or redemptions of Subordinated Debt with Additional Available Cash to the
extent that the Consolidated Total Leverage Ratio of Holdings is less than 1.50:1.00 prior to
giving effect to any such prepayment or redemption, (iii) reasonable and customary fees, expenses,
costs and indemnities (including closing fees and expenses paid on the date hereof) constituting
Subordinated Debt as and when due and payable under the Subordinated Note Purchase Agreement, (iv)
receipt of Reorganization Securities, and (v) payment of the principal of the Subordinated Debt on
the final scheduled maturity date of the Subordinated Debt.

     “Person” means any natural person, corporation, general or limited partnership,
limited liability company, firm, trust, association, government, governmental agency or other
entity, whether acting in an individual, fiduciary or other capacity.

     “Proceeding” means any voluntary or involuntary insolvency, bankruptcy, receivership,
custodianship, liquidation, dissolution, reorganization, assignment for the benefit of creditors,
appointment of a custodian, receiver, trustee or other officer with similar powers or any other
proceeding for the liquidation, dissolution or other winding up of a Person.

     “Record Subordinated Creditors” means those Subordinated Creditors holding
Subordinated Notes that are either a party to this Agreement or have executed an agreement
substantially identical to this Agreement and delivered such agreement to Agent pursuant to
Section 2.7(a).

     “Reorganization Securities” shall mean any debt or equity securities of the
Company or any other Person that are distributed to the Subordinated Creditors in respect of the
Subordinated Debt pursuant to a confirmed plan of reorganization or adjustment (or any debt or
equity securities issued in a Proceeding pursuant to an order of a bankruptcy court in satisfaction
of all or a portion thereof) and that are subordinated in right of payment to the Senior Debt (or
any debt or equity securities issued in substitution of all or any portion of the Senior Debt) to
the same extent as the Subordinated Debt is

 

 

subordinated to the Senior Debt pursuant to such supplements to or modifications to this
Agreement between the Subordinated Creditors and Agent as Agent may reasonably request to
reflect the continued subordination of the Reorganization Securities to the Senior Debt.

     “Required Subordinated Creditors” means, at any time, Subordinated Creditors
that hold more than 50% of the outstanding principal amount of the Subordinated Notes at
such time.

     “Secured Hedging Obligations” means all obligations of any Company arising under or
with respect to any Secured Hedging Agreement.

     “Senior Covenant Default” means any “Event of Default” under the Senior Debt
Documents (other than a Senior Payment Default).

     “Senior Debt” means all obligations, liabilities and indebtedness of every nature of
any Company or any guarantor from time to time owed under the Senior Debt Documents, the Secured
Hedging Obligations and the Bank Product Obligations, including, without limitation, the principal
amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, costs and
expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and
from time to time hereafter owing, due or payable, whether before or after the filing of a
Proceeding under the Bankruptcy Code together with (a) any amendments, modifications, renewals or
extensions thereof to the extent not prohibited by the terms of this Agreement and (b) any interest
accruing thereon after the commencement of a Proceeding, without regard to whether or not such
interest is an allowed claim; provided, however, that in no event shall the principal amount of the
Senior Debt (specifically excluding the Secured Hedging Obligations and Bank Product Obligations)
exceed the sum of (i) the principal amount of the loans and any unfunded loan commitments under the
Senior Credit Agreement as in effect on the date hereof reduced by the amount of any prepayments
and repayments and commitment reductions under the Senior Credit Agreement to the extent that such
payments and reductions may not be reborrowed (specifically excluding, however, any such repayments
and commitment reductions occurring in connection with any Permitted Refinancing), plus (ii)
$33,500,000 (the “Maximum Senior Principal Amount”). Senior
Debt shall be considered to be outstanding whenever any loan commitment under the Senior
Debt Document is outstanding. Notwithstanding the foregoing, no Sponsor Affiliated Lender
(as defined in the Senior Credit Agreement as in effect on the date hereof) or Group Member
shall be entitled to the benefits of this
Agreement as a holder of Senior Debt, except that to the extent that a Sponsor Affiliated
Lender (x) holds no more than ten percent (10%) of the combined principal amount of the
term loan obligations under the Senior Debt Documents determined at the time such
obligation under the Senior Debt Documents and (y) is subject, in relation to such
obligations under the Senior Debt Documents, to the voting and other restrictions as set
forth in the last sentence of Section 11.2(b) of the Senior Credit Agreement as in effect
on the date hereof.

 

 

     “Senior Debt Documents” means the GECC Loan Documents and, after the
consummation of any Permitted Refinancing, the Permitted Refinancing Senior Debt Documents.

     “Senior Default” means any Senior Payment Default or Senior Covenant Default.

     “Senior Default Notice” means a written notice from Agent to the Subordinated Creditors
pursuant to which the Subordinated Creditors are notified of the occurrence of a Senior Default,
which notice incorporates a reasonably detailed description of such Senior Default.

     “Senior Lenders” means the holders of the Senior Debt.

     “Senior Payment Default” means any “Event of Default” under the Senior Debt
Documents resulting from the failure of any Company to pay, on a timely basis, any
principal, interest, fees or other obligations under the Senior Debt Documents, including,
without limitation, any default in payment of Senior Debt after acceleration thereof.

     “Subordinated Debt” means all of the obligations of any Company or any guarantor to
the Subordinated Creditors evidenced by or incurred pursuant to the Subordinated Debt Documents.

     “Subordinated Debt Default” means a default in the payment of the Subordinated Debt or
in the performance of any term, covenant or condition contained in the Subordinated Debt Documents
or any other occurrence permitting the Subordinated Creditors to accelerate the payment of, or put
or cause the redemption of, all or any portion of the Subordinated Debt.

     “Subordinated Debt Default Notice” means a written notice from the Subordinated
Creditors or any Company to Agent pursuant to which Agent is notified of the occurrence of a
Subordinated Debt Default, which notice incorporates a reasonably detailed description of such
Subordinated Debt Default.

     “Subordinated Debt Documents” means the Subordinated Notes, the Subordinated Note
Purchase Agreement, any guaranty with respect to the Subordinated Debt and all other documents,
agreements and instruments now existing or hereinafter
entered into evidencing or pertaining to all or any portion of the Subordinated Debt.

2. Subordination.

     2.1 Subordination of Subordinated Debt to Senior Debt. Each Company covenants and
agrees, and each Subordinated Creditor by its acceptance of the Subordinated Debt Documents
(whether upon original issue or upon transfer or assignment) likewise covenants and agrees,
notwithstanding anything to the contrary contained in any of the Subordinated Debt Documents, that
the payment of any and all of the Subordinated Debt shall be

 

 

subordinate and subject in right and time of payment, to the extent and in the manner hereinafter
set forth, to the prior payment in full in cash of all Senior Debt. Each holder of Senior Debt,
whether now outstanding or hereafter created, incurred, assumed or guaranteed, shall be
deemed to
have acquired Senior Debt in reliance upon the provisions contained in this Agreement.

     2.2 Liquidation, Dissolution, Bankruptcy. In the event of any Proceeding involving any
Company or any Subsidiary of any Company:

     (a) All Senior Debt shall first be Paid in Full before any Distribution, whether in
cash, securities or other property, shall be made to the Subordinated Creditors on account
of any Subordinated Debt.

     (b) Any Distribution, whether in cash, securities or other property which would
otherwise, but for the terms hereof, be payable or deliverable in respect of the
Subordinated Debt shall be paid or delivered directly to Agent (to be held and/or applied
by Agent in accordance with the terms of the Senior Debt Documents) until all Senior Debt
is Paid in Full. Each Subordinated Creditor irrevocably authorizes, empowers and directs
any debtor, debtor in possession, receiver, trustee, liquidator, custodian, conservator or
other Person having authority, to pay or otherwise deliver all such Distributions to Agent.
Each Subordinated Creditor also irrevocably authorizes and empowers Agent, in the name of
such Subordinated Creditor, to demand, sue for, collect and receive any and all such
Distributions.

     (c) Each Subordinated Creditor agrees not to initiate, prosecute or participate in any
claim, action or other proceeding challenging the enforceability, validity, perfection or
priority of the Senior Debt or any liens and security interests securing the Senior Debt.

     (d) Each Subordinated Creditor authorizes, empowers and appoints Agent its agent and
attorney-in-fact to (i) execute, verify, deliver and file such proofs of claim upon the
failure of such Subordinated Creditor promptly to do so prior to 15 days before the
expiration of the time to file any such proof of claim and (ii) vote such claim in any such
Proceeding upon the failure of such
Subordinated Creditor to do so prior to 5 days before the expiration of the time to vote
any such claim; provided Agent shall have no obligation to execute, verify, deliver, file
and/or vote any such proof of claim.

     (e) The Senior Debt shall continue to be treated as Senior Debt and the provisions of
this Agreement shall continue to govern the relative rights and priorities of Senior
Lenders and the Subordinated Creditors even if all or part of the Senior Debt or the
security interests securing the Senior Debt are subordinated, set aside, avoided,
invalidated or disallowed in connection with any such Proceeding, and this Agreement shall
be reinstated if at any time any payment of any of the Senior Debt is rescinded or must
otherwise be returned by any holder of Senior Debt or any representative of such holder.

     2.3 Subordinated Debt Payment Restrictions.

 

 

     (a) Notwithstanding the terms of the Subordinated Debt Documents, each Company hereby
agrees that it may not make, directly or indirectly, and each Subordinated Creditor hereby
agrees that it will not accept, any Distribution with respect to the Subordinated Debt
until the Senior Debt is Paid in Full other than Permitted Subordinated Debt Payments
subject to the terms of subsection 2.2 of this Agreement; provided, however, that each
Company and each Subordinated Creditor further agree that no Permitted Subordinated Debt
Payment may be made by any Company, directly or indirectly, or accepted by any Subordinated
Creditor if, at the time of such payment:

     (i) a Senior Payment Default exists and such Senior Payment Default shall not
have been cured or waived; or

     (ii) subject to paragraph (d) of this subsection 2.3, (A) the Record
Subordinated Creditors shall have received a Senior Default Notice from Agent or
all Senior Lenders stating that a Senior Covenant Default exists or would be
created by the making of such payment, (B) each such Senior Covenant Default shall
not have been cured or waived and (C) 180 days shall not have elapsed since the
date such Senior Default Notice was received.

     (b) The Companies may resume Permitted Subordinated Debt Payments (and may make any
Permitted Subordinated Debt Payments missed due to the application of paragraph (a) of this
subsection 2.3) in respect of the Subordinated Debt or any judgment with respect thereto:

     (i) in the case of a Senior Payment Default referred to in clause (i) of
paragraph (a) this subsection 2.3, upon a cure or waiver thereof; or

     (ii) in the case of a Senior Covenant Default referred to in
clause (ii) of paragraph (a) of this subsection 2.3, upon the earlier to occur
of (A) the cure or waiver of all such Senior Covenant Defaults or (B) the
expiration of such period of 180 days.

     (c) No Senior Default shall be deemed to have been waived for purposes of this
subsection 2.3 unless and until the Companies shall have received a written waiver from
Agent or all requisite Senior Lenders as specified in the applicable Senior Debt Documents.

     (d) Notwithstanding any provision of this subsection 2.3 to the contrary:

     (i) the Companies shall not be prohibited from making, and the Subordinated
Creditors shall not be prohibited from receiving, Permitted Subordinated Debt
Payments under clause (ii) of paragraph (a) of this subsection 2.3 for more than an
aggregate of 180 days within any period of 360 consecutive days;

 

 

     (ii) no Senior Covenant Default existing on the date any Senior Default Notice
is given pursuant to clause (ii) of paragraph (a) of this subsection 2.3 shall,
unless the same shall have ceased to exist for a period of at least 45 consecutive
days, be used as a basis for any subsequent such notice (for purposes of this
paragraph, breaches of the same financial covenant for consecutive periods shall
constitute separate and distinct
Senior Covenant Defaults);

     (iii) no more than two (2) Senior Default Notices may be given in any period
of 360 consecutive days and no more than five (5) Senior Default Notices may be
given during the term of this Agreement; and

     (iv) the failure of any Company to
make any Distribution with respect to the Subordinated Debt by reason of the
operation of this subsection 2.3 shall not be construed as preventing the
occurrence of a Subordinated Debt Default under the applicable Subordinated Debt
Documents.

     2.4 Subordinated Debt Standstill Provisions.

     (a) Until the Senior Debt is Paid in Full, the Subordinated Creditors shall not,
without the prior written consent of Agent, take any Enforcement Action with respect to the
Subordinated Debt, until the earliest to occur of the following and in any event no earlier
than five (5) days after Agent’s receipt of written notice of Subordinated Creditors’
intention to take any such Enforcement Action (each, a “Standstill Period”):

     (i) acceleration of the Senior Debt;

     (ii) the passage of 120 days from the delivery of a Subordinated Debt Default Notice
to Agent if any Subordinated Debt Default described therein shall not have been cured or
waived within such period:

     (iii) the commencement of a Proceeding against any Company: or

     (iv) the initiation by the Agent or the Senior Lenders of any foreclosure, suit, action or
proceeding with respect to a material portion (individually or in the aggregate) of the
Collateral.

Notwithstanding the foregoing, the Subordinated Creditors may (i) file proofs of claim against
any Company in any Proceeding involving such Company and (ii) deliver notice to the Obligors of an
election by the Required Subordinated Creditors to institute the default rate of interest to the
extent permitted pursuant to the Subordinated Note Documents; provided that such incremental
default interest is paid in kind and not in cash. Any Distributions or other proceeds of any
Enforcement Action obtained by any
Subordinated Creditor shall in any event be held in trust by it for the benefit of Agent
and Senior Lenders and promptly be paid or delivered to Agent for the benefit of Senior
Lenders in the form received until all Senior Debt is Paid in Full.

 

 

The parties hereto acknowledge and agree that each Standstill Period shall relate to a
specific Subordinated Debt Default and upon the termination of such Standstill Period pursuant to
the terms described above, the Subordinated Creditors may take any Enforcement Action under and
pursuant to the Subordinated Debt Documents with respect to such Subordinated Debt Default (unless
such Subordinated Debt Default is cured or waived) whether or not a subsequent Standstill Period
may be in place with respect to another Subordinated Debt Default.

     (b) Notwithstanding anything contained herein to the contrary, if following the acceleration
of the Senior Debt by Senior Lenders such acceleration is rescinded (whether or not any existing
Senior Default has been cured or waived), then all Enforcement Actions taken by the Subordinated
Creditors shall likewise be rescinded if such Enforcement Action is based solely on clause (i) of
paragraph (a) of this subsection 2.4.

     2.5 Incorrect Payments. If any Distribution on account of the Subordinated Debt not
permitted to be made by the Companies or accepted by the Subordinated Creditors under this
Agreement is made and received by any Subordinated Creditor, such Distribution shall not be
commingled with any of the assets of such Subordinated Creditor, shall be held in trust by such
Subordinated Creditor for the benefit of Agent and Senior Lenders and shall be promptly paid over
to Agent for application (in accordance with the Senior Debt Documents) to the payment of the
Senior Debt then remaining unpaid, until all of the Senior Debt is Paid in Full.

     2.6 Subordination of Liens and Security Interests; Agreement Not to Contest;
Agreement to Release Liens. Until the Senior Debt has been Paid in Full, any liens and security
interests of any Subordinated Creditor in the Collateral which may exist in breach of the
Subordinated Creditors’ agreement pursuant to subsection 3.2(f) or subsection 4.1 of this Agreement
shall be and hereby are subordinated for all purposes and in all respects to the liens and security
interests of Agent and Senior Lenders in the Collateral, regardless of the time, manner or order of
perfection of any such liens and security interests. Each Subordinated Creditor agrees that it
will not at any time contest the validity, perfection, priority or enforceability of the Senior
Debt, the Senior Debt Documents, or the liens and security interests of Agent and Senior Lenders in
the Collateral securing the Senior Debt. In the event that any Subordinated Creditor obtains any
liens or security interests in the Collateral, such Subordinated Creditor shall (or shall cause its
agent) to promptly execute and deliver to Agent such termination statements and releases as Agent
shall request to effect the release of the liens and security interests of such Subordinated
Creditor in such Collateral. In furtherance of the foregoing, each Subordinated Creditor hereby
irrevocably appoints Agent its attorney-in-fact, with full authority in the place and stead of such
Subordinated Creditor and in the name of such Subordinated Creditor or otherwise, to execute and
deliver any document or instrument which such Subordinated Creditor may be required to deliver
pursuant to this subsection 2.6.

     2.7 Sale, Transfer or other Disposition of Subordinated Debt.

     (a) The Subordinated Creditors shall not sell, assign, pledge, dispose of or otherwise
transfer all or any portion of the Subordinated Debt or any Subordinated Debt

 

 

Document: (i) without giving contemporaneous written notice of such action to Agent, and
(ii) unless, prior to the consummation of any such action, the transferee thereof shall
execute and deliver to Agent an agreement substantially identical to this Agreement,
providing for the continued subordination of the Subordinated Debt to the Senior Debt as
provided herein and for the continued effectiveness of all of the rights of Agent and
Senior Lenders arising under this Agreement and providing an address for notices hereunder.

     (b) Notwithstanding the failure of any transferee to execute or deliver an agreement
substantially identical to this Agreement, the subordination effected hereby shall survive
any sale, assignment, pledge, disposition or other transfer of all or any portion of the
Subordinated Debt, and the terms of this Agreement shall be binding upon the successors and
assigns of the Subordinated Creditors, as provided in Section 9 hereof.

     2.8 Legends. Until the termination of this Agreement in accordance with Section 15
hereof, the Subordinated Creditors will cause to be clearly, conspicuously and prominently inserted
on the face of the Subordinated Notes and any other Subordinated
Debt Document, as well as any renewals or replacements thereof, the following legend:

     “This instrument and the rights and obligations evidenced hereby are subordinate in
the manner and to the extent set forth in that certain Subordination and Intercreditor
Agreement (the “Subordination Agreement”) dated as of October 1, 2010 among Blackrock Kelso
Capital Corporation, PennantPark Investment Corporation, Citibank, N.A., and THL Credit,
Inc., CBay Inc., a Delaware corporation (“CBay”), MedQuist Inc., a New Jersey corporation
(“MedQuist”), MedQuist Transcriptions, Ltd., a New Jersey corporation (“MedQuist
Transcriptions”, and together with CBay and MedQuist, the “Companies”) and General Electric
Capital Corporation (“Agent”), to the indebtedness (including interest) owed by the
Companies pursuant to that certain Credit Agreement dated as of October 1, 2010 among the
Companies, Agent and the lenders from time to time party thereto, as such Credit Agreement
has been and hereafter may be amended, supplemented or otherwise modified from time to time
and to indebtedness refinancing the indebtedness under that agreement as contemplated by
the Subordination Agreement; and each holder of this instrument, by its acceptance hereof,
irrevocably agrees to be bound by the provisions of the Subordination Agreement.”

3. Modifications.

     3.1 Modifications to Senior Debt Documents. Senior Lenders may at any time and from
time to time without the consent of or notice to the Subordinated Creditors, without incurring
liability to the Subordinated Creditors and without impairing or releasing the obligations of the
Subordinated Creditors under this Agreement, change the manner or place of payment or extend the
time of payment of or renew or alter any of the terms of the Senior Debt, or amend or modify in any
manner the Senior Debt Documents; provided that Senior Lenders shall not amend or modify the Senior
Debt Documents to (a) increase the principal amount of the Senior Debt (except as permitted by the
definition of Senior Debt herein), (b) increase the interest rate margins, letter of credit fees
and unused revolving commitment fees (including the imposition of any interest rate floors or any

 

 

increases thereof) with respect to the Senior Debt (excluding the Secured Hedging Obligations and
Bank Product Obligations) by more than 200 basis points per annum, excluding the imposition of a
default rate of interest in accordance with the terms of the Senior Debt Documents, (c) extend the
final maturity of the Senior Debt (as set forth in the GECC Loan Documents in effect on the date
hereof) by more than one year, (d) shorten the scheduled amortization of any portion of the Senior
Debt (as set forth in the GECC Loan Documents in effect on the date hereof), (e) expressly prohibit
or restrict payment of the Subordinated Debt in a manner that is more restrictive than as at the
date hereof, (f) add any new or make more restrictive any negative covenant, financial covenant or
“Event of Default” under any Senior Debt Document except to the extent, prior to or concurrently
with any such change, the Companies have offered to amend or modify the Subordinated Debt Documents
to modify or add the same negative covenant,
financial covenant or “Event of Default” to the extent the corresponding provisions of the Senior
Debt Documents have been amended or modified with appropriate differences in covenant levels and
thresholds consistent with the differences existing on the date hereof between the Senior Debt
Documents and the Subordinated Debt Documents; provided, that the Company shall not be required to
offer such changes to the Subordinated Debt Documents to the extent such changes to the Senior Debt
Documents relate to collateral, collateral reporting, revolving loans, borrowing base formulas or
other provisions that have no comparable provisions in the Subordinated Debt Documents or (g)
amend, modify or supplement the Senior Debt Documents in a manner that would cause or allow (x) any
principal outstanding under the Senior Debt Documents held by any Sponsor Affiliated Lender
(whether held directly or indirectly through an assignment, participation or otherwise) to exceed
the limitations set forth in the last sentence of the definition of Senior Debt or have voting or
other rights under the Senior Debt Documents in contravention of the last sentence of the
definition of Senior Debt or (y) any Group Member or an Affiliate of a Group Member (other than a
Sponsor Affiliated Lender in accordance with clause (x) above) to own or hold any Senior Debt
(whether directly or indirectly through an assignment, participation or otherwise).

     3.2 Modifications to Subordinated Debt Documents. Until the Senior Debt has been Paid
in Full, and notwithstanding anything to the contrary contained in the Subordinated Debt Documents,
the Subordinated Creditors shall not, without the prior written consent of Agent, agree to any
amendment, modification or supplement to the Subordinated Debt Documents the effect of which is to
(a) increase the maximum principal amount of the Subordinated Debt, or increase the rate of
interest paid in cash on any of the Subordinated Debt by more than 200 basis points or the total
rate of interest paid in cash or in kind on any of the Subordinated Debt by more than 500 basis
points, (b) change the dates upon which payments of principal or interest on the Subordinated Debt
are due, (c) change or add any event of default or any covenant with respect to the Subordinated
Debt (except as provided in Section 3.1 above), (d) change any redemption or prepayment provisions
of the Subordinated Debt, (e) alter the subordination provisions with respect to the Subordinated
Debt, including, without limitation, subordinating the Subordinated Debt to any other indebtedness,
(f) take any liens or security interests in any assets of the Companies or any guarantor of the
Subordinated Debt or (g) change or amend any other term of the Subordinated Debt Documents if such
change or amendment would result in a Senior Default.

4. Representations and Warranties.

 

 

     4.1 Representations and Warranties of Subordinated Creditors. Each Subordinated
Creditor hereby represents and warrants to Agent and Senior Lenders that as of the date hereof: (a)
such Subordinated Creditor is either a corporation, limited partnership or limited liability
company and is duly formed and validly existing under the laws of the State of its formation; (b)
such Subordinated Creditor has the power and authority to enter into, execute, deliver and carry
out the terms of this Agreement, all of which have been duly authorized by all proper and necessary
action; (c) the execution of this Agreement by such Subordinated Creditor will not violate or
conflict with the
organizational documents of such Subordinated Creditor, any material agreement binding upon such
Subordinated Creditor or any law, regulation or order or require any consent or approval which has
not been obtained; (d) this Agreement is the legal, valid and binding obligation of such
Subordinated Creditor, enforceable against such Subordinated Creditor 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 creditors’ rights generally and by
equitable principles; (e) the Subordinated Creditors are the sole owners, beneficially and of
record, of the Subordinated Debt Documents and the Subordinated Debt; and (f) the Subordinated Debt
is, and at all times prior to the termination of this Agreement shall remain, an unsecured
obligation of the Companies.

     4.2 Representations and Warranties of Agent. Agent hereby represents and warrants to
the Subordinated Creditors that as of the date hereof: (a) Agent is a corporation duly formed and
validly existing under the laws of the State of Delaware; (b) Agent has the power and authority to
enter into, execute, deliver and carry out the terms of this Agreement, all of which have been duly
authorized by all proper and necessary action, and each Lender executing the Credit Agreement has
authorized Agent to execute this Agreement on their behalf; (c) the execution of this Agreement by
Agent will not violate or conflict with the organizational documents of Agent, any material
agreement binding upon Agent or any law, regulation or order or require any consent or approval
which has not been obtained; and (d) this Agreement is the legal, valid and binding obligation of
Agent, enforceable against Agent 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 creditors’ rights generally or by equitable principles.

5. Subrogation. Subject to the payment in full in cash of all Senior Debt and the
termination of all lending commitments under the Senior Debt Documents, the Subordinated Creditors
shall be subrogated to the rights of Agent and Senior Lenders to receive Distributions with respect
to the Senior Debt until the Subordinated Debt is paid in full. Each Subordinated Creditor agrees
that in the event that all or any part of a payment made with respect to the Senior Debt is
recovered from the holders of the Senior Debt in a Proceeding or otherwise, any Distribution
received by such Subordinated Creditor with respect to the Subordinated Debt at any time after the
date of the payment that is so recovered, whether pursuant to the right of subrogation provided for
in this Agreement or otherwise, shall be deemed to have been received by such Subordinated Creditor
in trust as property of the holders of the Senior Debt and such Subordinated Creditor shall
forthwith deliver the same to the Agent for the benefit of the Senior Lenders for application to
the Senior Debt until the Senior Debt is Paid in Full. A Distribution made pursuant to this
Agreement to Agent or Senior Lenders which otherwise would have been made to the Subordinated
Creditors is not, as between the Companies and the Subordinated Creditors, a payment by the
Companies to or on account of the Senior Debt.

 

 

6. Modification. Any modification or waiver of any provision of this Agreement, or
any consent to any departure by any party from the terms hereof, shall not be effective in any
event unless the same is in writing and signed by Agent and Required Subordinated Creditors, and
then such modification, waiver or consent shall be effective only in the specific instance and for
the specific purpose given. Any notice to or demand on any party hereto in any event not
specifically required hereunder shall not entitle the party receiving such notice or demand to any
other or further notice or demand in the same, similar or other circumstances unless specifically
required hereunder.

7. Further Assurances. Each party to this Agreement promptly will execute and deliver such
further instruments and agreements and do such further acts and things as may be reasonably
requested in writing by any other party hereto that may be necessary or desirable in order to
effect fully the purposes of this Agreement.

8. Notices. Unless otherwise specifically provided herein, any notice delivered under this
Agreement shall be in writing addressed to the respective party as set forth below and may be
personally served, telecopied or sent by overnight courier service or certified or registered
United States mail and shall be deemed to have been given (a) if delivered in person, when
delivered; (b) if delivered by telecopy, on the date of transmission if transmitted on a business
day before 4:00 p.m. (Chicago time) or, if not, on the next succeeding business day; (c) if
delivered by overnight courier, one business day after delivery to such courier properly addressed;
or (d) if by United States mail, four business days after deposit in the United States mail,
postage prepaid and properly addressed.

 

 

     Notices shall be addressed as follows:

If to Subordinated Creditors, to the addresses set forth on the signature pages of the Subordinated Creditors to this Agreement.

If to the Companies:

MedQuist, Inc., as Borrower Representative 

1000 Bishops Gate Blvd., Suite 300

Mt. Laurel, New Jersey 08054

Attention: Mark Sullivan, General Counsel

Telecopy: 856) 206-4211

With a copy to:

Simpson Thacher & Bartlett LLP 

425 Lexington Avenue 

New York, New York 10017

Attention: Marissa C. Wesely

Telecopy: (212) 455-2502

If to Agent or Senior Lenders:

General Electric Capital Corporation

500 West Monroe Street

Chicago, Illinois 60661

Attention:   Account Manager — MedQuist

                    Corporate Finance

Telecopy:    (866) 524-4721

With a copy to:

General Electric Capital Corporation

Two Bethesda Metro Center, Suite 600

Bethesda, Maryland 20814

Attention:  Senior Counsel

Telecopy:  (866) 398-9582

or in any case, to such other address as the party addressed shall have previously designated by
written notice to the serving party, given in accordance with this Section 8.

9. Successors and Assigns. This Agreement shall inure to the benefit of, and shall be
binding upon, the respective successors and assigns of Agent, Senior Lenders, the Subordinated
Creditors and the Companies. To the extent permitted under the Senior Debt Documents, Senior
Lenders may, from time to time, without notice to the Subordinated Creditors, assign or transfer
any or all of the Senior Debt or any interest therein to any Person and, notwithstanding any such

 

 

assignment or transfer, or any subsequent assignment or transfer, the Senior Debt shall,
subject to the terms hereof, be and remain Senior Debt for purposes of this Agreement, and every
permitted assignee or transferee of any of the Senior Debt or of any interest therein shall, to the
extent of the interest of such permitted assignee or transferee in the Senior Debt, be entitled to
rely upon and be the third party beneficiary of the subordination provided under this Agreement and
shall be entitled to enforce the terms and provisions hereof to the same extent as if such assignee
or transferee were initially a party hereto.

10. Relative Rights. This Agreement shall define the relative rights of Agent, Senior
Lenders and the Subordinated Creditors. Nothing in this Agreement shall (a) impair, as among the
Companies, Agent and Senior Lenders and as between the Companies and the Subordinated Creditors,
the obligation of the Companies with respect to the payment of the Senior Debt and the Subordinated
Debt in accordance with their respective terms or (b) affect the relative rights of Agent, Senior
Lenders or the Subordinated Creditors with respect to any other creditors of the Companies.

11. Subordinated Creditors Purchase Option 

     11.1 Purchase Notice. Upon the Record Subordinated Creditors’ receipt of a notice from
the Agent (the “Agent’s Notice”) that the Senior Debt has been accelerated, in part or in whole,
the Subordinated Creditors (or any number of them) shall have the option, but not the obligation,
to purchase all, but not less than all, of the Senior Debt owing to the Senior Lenders from the
Senior Lenders, and assume all, but not less than all, of the then existing funding commitments
under the Senior Debt Documents by giving a written notice (the “Purchase Notice”) to the Agent no
later than the 5th Business Day after receipt by the Subordinated Creditors of the Agent’s Notice.
A Purchase Notice once delivered shall be irrevocable. To the extent more than one Subordinated
Creditor timely delivers a Purchase Notice to the Agent, unless otherwise agreed to among such
purchasing Subordinated Creditors, any sale pursuant thereto shall be pro rata based on the
purchasing Subordinated Creditors then Subordinated Debt outstandings.

     11.2 Purchase Option Closing. On the date specified as the closing date by the
purchasing Subordinated Creditor in the Purchase Notice (which shall not be less than 3 Business
Days nor more than 5 Business Days, after the receipt by the Agent of the Purchase Notice), the
Senior Lenders shall sell to such Subordinated Creditors, and such Subordinated Creditors shall
purchase from the Senior Lenders, all, but not less than all, of the Senior Debt, and the Senior
Lenders shall assign to the purchasing Subordinated Creditors, and the purchasing Subordinated
Creditors shall assume from the Senior Lenders all, but not less than all, of the then existing
funding commitments under the Senior Debt Documents.

     11.3 Purchase Price. Such purchase and sale shall be made by execution and delivery by
the applicable Senior Lenders of an Assignment Agreement in the form attached to the Senior Debt
Documents, and shall be conditioned upon (i) the Agents, L/C Issuers and Swingline Lenders being
replaced and released from their obligations under the Senior Debt Documents, including without
limitation deposit account control agreements and collateral access agreements. Upon the date of
such purchase and sale, the purchasing Subordinated Creditors shall (a) pay to the Agent for the
benefit of the Senior Lenders as the purchase price therefor the sum of the full amount of all the
Senior
Debt then outstanding and (b) furnish cash collateral to the Agent with respect to the
outstanding Letters of Credit under the Senior Debt and in such amounts as are required under the

 

 

Senior Debt Documents. Such purchase price and cash collateral shall be remitted by wire transfer
of immediately available funds to such bank account of the Agent, as the Agent may designate in
writing to the purchasing Subordinated Creditors for such purpose. Interest and fees shall be
calculated to but excluding the business day on which such purchase and sale shall occur only if
the amounts so paid by the purchasing Subordinated Creditors to the bank account designated by the
Agent are received in such bank account prior to 2:00 p.m. (New York City time).

     11.4. Nature of Sale. Such purchase and sale shall be expressly made without
representation or warranty of any kind by the Senior Lenders and all other holders of Senior Debt
as to the Senior Debt or otherwise and without recourse to the Senior Lenders and all other holders
of Senior Debt, except for representations and warranties from each Senior Lender as to the
following: (a) that such Senior Lender owns the Senior Debt free and clear of any Liens, and (b)
such Senior Lender has the full right and power to assign its Senior Debt and such assignment has
been duly authorized by all necessary corporate action by such Senior Lender.

12. Conflict. In the event of any conflict between any term, covenant or condition of this
Agreement and any term, covenant or condition of any of the Subordinated Debt Documents, the
provisions of this Agreement shall control and govern.

13. Headings. The paragraph headings used in this Agreement are for convenience only and
shall not affect the interpretation of any of the provisions hereof.

14. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

15. Severability. In the event that any provision of this Agreement is deemed to be
invalid, illegal or unenforceable by reason of the operation of any law or by reason of the
interpretation placed thereon by any court or governmental authority, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any way be affected or
impaired thereby, and the affected provision shall be modified to the minimum extent permitted by
law so as most fully to achieve the intention of this Agreement.

16. Continuation of Subordination; Termination of Agreement. This Agreement shall remain in
full force and effect until all Senior Debt has been Paid in Full and all lending commitments under
the Senior Debt Documents have terminated, after which this Agreement shall terminate without
further action on the part of the parties hereto.

17. Applicable 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.

18. CONSENT TO JURISDICTION. EACH SUBORDINATED CREDITOR AND EACH COMPANY HEREBY CONSENTS TO
THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE SOUTHERN DISTRICT OF THE STATE OF
NEW YORK AND IRREVOCABLY AGREES
THAT, SUBJECT TO AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT SHALL BE LITIGATED IN SUCH COURTS. EACH SUBORDINATED

 

 

CREDITOR AND EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID
COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH SUBORDINATED CREDITOR AND EACH COMPANY
HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS
MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO THE
SUBORDINATED CREDITORS AND EACH COMPANY AT THEIR RESPECTIVE ADDRESSES SET FORTH IN THIS AGREEMENT
AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED. IN ANY
LITIGATION, TRIAL, ARBITRATION OR OTHER DISPUTE RESOLUTION PROCEEDING RELATING TO THIS AGREEMENT,
ALL DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS OF THE SUBORDINATED CREDITORS, THE COMPANIES OR ANY
OF THEIR RESPECTIVE AFFILIATES SHALL BE DEEMED TO BE EMPLOYEES OR MANAGING AGENTS OF SUCH
SUBORDINATED CREDITOR OR SUCH COMPANY, AS APPLICABLE, FOR PURPOSES OF ALL APPLICABLE LAW OR COURT
RULES REGARDING THE PRODUCTION OF WITNESSES BY NOTICE FOR TESTIMONY (WHETHER IN A DEPOSITION, AT
TRIAL OR OTHERWISE). EACH SUBORDINATED CREDITOR AND EACH COMPANY AGREES THAT AGENT’S OR ANY SENIOR
LENDER’S COUNSEL IN ANY SUCH DISPUTE RESOLUTION PROCEEDING MAY EXAMINE ANY OF THESE INDIVIDUALS AS
IF UNDER CROSS-EXAMINATION AND THAT ANY DISCOVERY DEPOSITION OF ANY OF THEM MAY BE USED IN THAT
PROCEEDING AS IF IT WERE AN EVIDENCE DEPOSITION. EACH SUBORDINATED CREDITOR AND EACH COMPANY IN ANY
EVENT WILL USE ALL COMMERCIALLY REASONABLE EFFORTS TO PRODUCE IN ANY SUCH DISPUTE RESOLUTION
PROCEEDING, AT THE TIME AND IN THE MANNER REQUESTED BY AGENT OR ANY LENDER, ALL PERSONS, DOCUMENTS
(WHETHER IN TANGIBLE, ELECTRONIC OR OTHER FORM) OR OTHER THINGS UNDER ITS CONTROL AND RELATING TO
THE DISPUTE.

19. WAIVER OF JURY TRIAL. EACH SUBORDINATED CREDITOR, EACH COMPANY AND AGENT HEREBY WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT, ANY OF THE SUBORDINATED DEBT DOCUMENTS OR ANY OF THE SENIOR DEBT DOCUMENTS. EACH
SUBORDINATED CREDITOR, EACH COMPANY AND AGENT ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING
INTO THIS AGREEMENT AND THE SENIOR
DEBT DOCUMENTS AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS.
EACH SUBORDINATED CREDITOR, EACH COMPANY AND AGENT WARRANTS AND REPRESENTS THAT EACH HAS HAD THE
OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

(Signature page follows)

 

 

     IN WITNESS WHEREOF, the Subordinated Creditors, the Companies and Agent have caused this Agreement
to be executed as of the date first above written.

	 	 	 	 	 
	 	AGENT:

GENERAL ELECTRIC CAPITAL CORPORATION, a

Delaware corporation, as Agent

 	 
	 	By:  	/s/  Brent Shepherd
 	 
	 	 	Its: Brent Shepherd 	 
	 	 	Duly Authorized Signatory 	 

 

 

	 	 	 	 	 
	 	SUBORDINATED CREDITORS:

BLACKROCK KELSO CAPITAL CORPORATION, 

BY: BLACKROCK KELSO CAPITAL ADVISORS 

LLC, its Investment Manager, 

as Purchaser

 	 
	 	By:  	/s/ Michael B. Lazar
 	 
	 	 	Name:  	Michael B. Lazar 	 
	 	 	Title:  	Chief Operating Officer 	 
	 
	 	Address for Notices:

BlackRock Kelso Capital Corporation

40 East 52nd Street, 21st Floor

New York, NY 10022

Attention: Stephen Sachman

Tel: (212) 810-5787

Fax: (212) 810-5801

with a copy to:

Goodwin Procter LLP

The New York Times Building

620 Eighth Avenue, New York

NY 10018-1405

Attention: Bruce Rader, Esq.

Tel: (212) 813-8800

Fax: (212) 355-3333

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PENNNANTPARK INVESTMENT

CORPORATION, as Purchaser

 	 
	 	By:  	/s/ Arthur Penn
 	 
	 	 	Name:  	Arthur Penn 	 
	 	 	Title:  	CEO 	 
	 
	 	Address for Notices:

590 Madison Avenue, 15th Floor

New York, NY 10022

Attention: John Skvarla

Telecopy: (212) 905-1075

With a copy to:

BNY Mellon Investment Servicing (US) Inc.

400 Bellevue Parkway

Wilmington, DE 19809

Attn: William Grant

Telecopy: (302) 791-2262

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITIBANK, N.A., as Purchaser

 	 
	 	By:  	/s/ Michael P. Girondo
 	 
	 	 	Name:  	Michael P. Girondo  	 
	 	 	Title:  	Vice President 	 
	 
	 	Address for Notices:

390 Greenwhich Street, 7th Floor

New York, NY 10013

Attention: Michael Girondo

Telecopy: (646) 291-1852

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THL CREDIT, INC., as Purchaser

 	 
	 	By:  	/s/ Hunter Stropp
 	 
	 	 	Name:  	Hunter Stropp 	 
	 	 	Title:  	Co-President 	 
	 
	 	Address for Notices:

c/o THL Credit Advisors LLC

100 Federal Street

31st Floor

Boston, MA 02110

Attn: Christopher J. Flynn, Managing Director

Telecopy: (877) 946-9274

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 
	 	COMPANIES:

CBAY INC.

 	 
	 	By:  	/s/
Clyde Snoger	 
	 	 	Name:  	Clyde Snoger	 
	 	 	Title:  	CFO	 
	 
	 	MEDQUIST INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MEDQUIST TRANSCRIPTIONS, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	COMPANIES:

CBAY INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MEDQUIST INC.

 	 
	 	By:  	/s/
Mark Sullivan 	 
	 	 	Name:  	Mark Sullivan 	 
	 	 	Title:  	General Counsel 	 
	 
	 	MEDQUIST TRANSCRIPTIONS, LTD.

 	 
	 	By:  	/s/
Mark Sullivan 	 
	 	 	Name:  	Mark Sullivan	 
	 	 	Title:  	General Counselexv10w10

Exhibit 10.10

Stockholders Agreement

STOCKHOLDERS AGREEMENT

Dated as of [                    ]

among

CBaySystems Holdings Limited,

S.A.C. PEI CB Investment, L.P.,

S.A.C. PEI CB Investment II, LLC,

International Equities (S.A.C. Asia) Limited

and the other Stockholders party hereto

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II CERTAIN RESTRICTIONS ON TRANSFERS
	 	 	4	 
	 
	 	 	 	 
	Section 2.1 Agreement to be Bound
	 	 	4	 
	Section 2.2 Share Certificates
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III GOVERNANCE
	 	 	5	 
	 
	 	 	 	 
	Section 3.1 Board Size
	 	 	5	 
	Section 3.2 Officer Appointment
	 	 	7	 
	Section 3.3 Proxy
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV REGISTRATION
	 	 	7	 
	 
	 	 	 	 
	Section 4.1 Piggyback Registrations
	 	 	7	 
	Section 4.2 Lockup Agreements
	 	 	8	 
	Section 4.3 Registration Procedures
	 	 	8	 
	Section 4.4 Registration Expenses
	 	 	10	 
	Section 4.5 Additional Procedures
	 	 	10	 
	Section 4.6 Termination of Registration Rights
	 	 	11	 
	 
	 	 	 	 
	ARTICLE V INDEMNIFICATION AND CONTRIBUTION
	 	 	11	 
	 
	 	 	 	 
	Section 5.1 Indemnification by the Company
	 	 	11	 
	Section 5.2 Indemnification by Stockholders of Registrable Securities
	 	 	11	 
	Section 5.3 Conduct of Indemnification Proceedings
	 	 	11	 
	Section 5.4 Contribution
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS
	 	 	13	 
	 
	 	 	 	 
	Section 6.1 Recapitalization, Exchanges, etc.
	 	 	13	 
	Section 6.2 Entire Agreement; Successors and Assigns
	 	 	13	 
	Section 6.3 No Waivers, Amendments
	 	 	14	 
	Section 6.4 Notices
	 	 	14	 
	Section 6.5 Termination
	 	 	15	 
	Section 6.6 Governing Law
	 	 	15	 
	Section 6.7 Consent to Jurisdiction
	 	 	15	 
	Section 6.8 Waiver of Jury Trial
	 	 	16	 
	Section 6.9 Descriptive Headings
	 	 	16	 
	Section 6.10 Severability
	 	 	16	 
	Section 6.11 Counterparts
	 	 	16	 

i

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.12 Confidentiality
	 	 	17	 
	Section 6.13 Authority; Effect
	 	 	17	 
	Section 6.14 Enforcement; Further Assurances
	 	 	18	 

ii

 

1

STOCKHOLDERS AGREEMENT

          STOCKHOLDERS AGREEMENT dated as of [     ] (this “Agreement”)
by and among:

          (i) CBaySystems Holdings Limited, a Delaware corporation (the “Company”);

          (ii) S.A.C. PEI CB Investment, L.P., a Cayman Islands limited partnership (“SAC
CBI”);

          (iii) S.A.C. PEI CB Investment II, LLC, a Delaware limited liability company (“SAC CBI
II”);

          (iv) International Equities (S.A.C. Asia) Limited, a company incorporated under the
Companies Act 2001 of Mauritius (“SAC Asia” and, together with SAC CBI and SAC CBI II,
collectively, the “SAC Group”);

          (iv) the Investors (as defined below); and

          (v) such other Persons who from time to time become party hereto by executing a counterpart
signature page hereof in the form of Exhibit A hereto or such other form as may be designated by
the Board (together with the SAC Group and the Investors, the “Stockholders”).

WITNESSETH:

          WHEREAS, the Company and the Investors have entered into an Exchange Agreement, dated as of
September 30, 2010, pursuant to which the Investors agreed to exchange (the “Exchange”) their
shares of common stock, no par value, of MedQuist, Inc., a subsidiary of the Company, for shares of
Common Stock (as defined hereinafter); and

          WHEREAS, the parties hereto desire to enter into certain arrangements relating to the Company,
the CBAY Shares and the Stockholders.

          NOW, THEREFORE, in consideration of the mutual terms, conditions and other covenants and
agreements set forth herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.1 Definitions. As used in this Agreement, the following terms have
the following meanings:

          “Affiliate”, as applied to any Person, means any other Person directly or indirectly
through one or more intermediaries, controlling, controlled by, or under common control with, that
Person. For the purposes of this definition “control” (including, with correlative
meanings, the terms “controlling”, “controlled by” and “under common control
with”), as applied to any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction

 

2

of the management and policies of that Person, whether through the ownership of voting
securities, by contract or otherwise.

          “Agreement” shall have the meaning set forth in the preamble of this
Agreement.

          “Board” shall have the meaning set forth in Section 3.1.

          “Business Day” means any day other than a Saturday, a Sunday or a day on which banks
are required to be closed in New York, New York.

          “By-Laws” means the by-laws of the Company and any amendments thereto and restatements
thereof.

          “Certificate of Incorporation” means the Certificate of Incorporation of the Company
and any amendments thereto and restatements thereof filed on behalf of the Company with the
Delaware Secretary of State.

          “Change in Control” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events: (i) the sale or disposition of
all or substantially all of the assets of the Company to any Person or “group” (as such term is
used for the purposes of Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as
amended), other than the Stockholders as of the date of this Agreement and their Affiliates and
Permitted Transferees; or (ii) any Person, other than the Stockholders as of the date of this
Agreement, their Affiliates and Permitted Transferees, is or becomes the beneficial owner, directly
or indirectly, of more than fifty percent (50%) of the total voting power of the outstanding voting
stock of the Company, including by way of merger, consolidation or otherwise.

          “Commission” shall have meaning set forth in Section 4.3(a).

          “Common Stock” means the common stock of the Company, par value $0.01 per share.

          “Company” shall have the meaning set forth in the preamble of this
Agreement.

          “Indemnified Party” shall have the meaning set forth in Section
5.3.

          “Indemnifying Party” shall have the meaning set forth in Section 5.3.

          “Investors” means each of the Stockholders as of the date hereof other than the SAC
Group, and the Permitted Transferees of such Stockholders other than the SAC Group.

          “NASDAQ” means the NASDAQ Global Market.

          “Permitted Transferee” means, with respect to each Stockholder, (a) any
Affiliates thereof (or their Permitted Transferees), (b) any general or limited partner, member,
director, officer or employee of such Stockholder (or their Permitted Transferees) and (c) any
Person to whom a Stockholder (or any direct or indirect Permitted Transferee thereof) Transfers
equity

 

3

interests of the Company in accordance with the terms of this Agreement (including, for the
avoidance of doubt, any consent or waiver pursuant to and in accordance with the terms of this
Agreement) by which such Transferor is bound and, in the case of Transfers other than Transfers of
Common Stock pursuant to a Public Offering or pursuant to Rule 144 under the Securities Act after a
Public Offering, if such Transferee becomes a party to, and is bound to the same extent as its
Transferor by the terms of, this Agreement; provided, that any such Permitted Transferee
referred to in the foregoing clauses agrees in writing to be bound by the terms of this Agreement
in accordance with Section 2.1.

          “Person” means an individual, partnership, corporation, business trust, joint stock
company, limited liability company, unincorporated association, joint venture or other entity of
whatever nature.

          “Piggyback Registration” shall have the meaning set forth in Section 4.1.

          “Public Offering” means any public offering pursuant to an effective registration
statement under the Securities Act.

          “Registrable Securities” means any outstanding shares of Common Stock held by a
Stockholder from time to time until the earlier of (i) a registration statement covering such
Common Stock has been declared effective by the Commission and such stock has been disposed of
pursuant to such effective registration statement, (ii) such Common Stock is eligible to be sold to
the public pursuant to Rule 144 (or any similar provisions then in force) by such Stockholder
without restriction as to volume or manner of sale under the Securities Act, under circumstances in
which any legend borne by the Common Stock relating to restrictions on transferability thereof
under the Securities Act is or can be removed or (iii) such Common Stock is no longer subject to
restrictions under Rule 144 of the Securities Act.

          “Registration Expenses” shall have the meaning set forth in Section 4.4.

          “SAC CBI” shall have the meaning set forth in the preamble of this
Agreement.

          “SAC CBI II” shall have the meaning set forth in the preamble of this Agreement.

          “SAC Directors” shall have the meaning set forth in Section 3.1.

          “SAC Group” shall have the meaning set forth in the preamble of this Agreement.

          “Securities Act” means the United States Securities Act of 1933, as amended.

          “Selling Stockholder” shall have the meaning set forth in Section 4.3(c).

          “Shares” means shares of Common Stock.

          “Stockholder” shall have the meaning set forth in the preamble of this Agreement.

          “Subsidiary” means, with respect to any Person, any corporation or other entity of
which a majority of the capital stock or other ownership interests having ordinary voting power

 

4

to elect a majority of the board of directors or other persons performing a similar function
at the time directly or indirectly owned by such Person.

          “Transfer” means any direct or indirect transfer, sale, assignment, pledge, mortgage,
hypothecation, encumbrance or other disposition of all or a portion of any Shares or any economic
interest therein (including without limitation by means of any participation or swap transaction),
but for the avoidance of doubt shall not include an ordinary course transfer of an ownership
interest in any investment fund or similar entity having an investment in Shares.

          “Transferee’’ means any Person to whom Shares subject to this Agreement are
Transferred.

          “Transferor” means any Person who Transfers Shares subject to this
Agreement.

          “Underwriter” means a securities dealer that purchases any Registrable Securities as
principal in an underwritten offering and not as part of such dealer’s market making activities.

ARTICLE II

CERTAIN RESTRICTIONS ON TRANSFERS

          Section 2.1 Agreement to be Bound. Until the earlier of (a) such time as the
Shares held by an Investor may be sold pursuant to Rule 144 under the Securities Act under
circumstances in which any legend borne by the Shares relating to restrictions on transferability
thereof under the Securities Act may be removed or (b) the first anniversary of the closing of the
Exchange (the “Closing”), no Transfer of Shares by an Investor (other than Transfers in a Public
Offering or pursuant to Rule 144 of the Securities Act (or any successor provision)) shall be
effective unless (i) the Transferee, if not already a party hereto, shall have executed and
delivered to the Company, as a condition precedent to such Transfer, an instrument reasonably
satisfactory to the Company confirming that the Transferee agrees to be bound by the terms of this
Agreement with respect to the Shares so Transferred to the same extent applicable to the Transferor
thereof and acknowledging that such Transferee shall be deemed to be an Investor hereunder and (ii)
the Transferee has delivered to the Company an opinion of counsel reasonably satisfactory to the
Company indicating that the proposed Transfer is exempt from registration pursuant to applicable
securities laws.

          Section 2.2 Share Certificates.

	 	(a)	 	Each certificate representing Shares held by an Investor will bear a legend on
the face thereof substantially to the following effect (with such additions thereto or
changes therein as the Company may be advised by counsel are required by law or
necessary or appropriate):

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
STOCKHOLDERS AGREEMENT AMONG CBAYSYSTEMS HOLDINGS LIMITED AND THE
OTHER STOCKHOLDERS PARTY THERETO, DATED AS OF [                    ], AS AMENDED AND
SUPPLEMENTED FROM TIME TO TIME IN

 

5

ACCORDANCE WITH THE TERMS THEREOF, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF CBAYSYSTEMS HOLDINGS LIMITED. THE STOCKHOLDERS AGREEMENT CONTAINS,
AMONG OTHER THINGS, CERTAIN PROVISIONS RELATING TO THE VOTING AND TRANSFER OF THE
SHARES SUBJECT TO THE AGREEMENT. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE, DIRECTLY OR INDIRECTLY, MAY BE MADE EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT. THE HOLDER OF THIS CERTIFICATE, BY
ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT.”

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY STATE SECURITIES ACTS AND MAY NOT BE TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER SUCH ACTS OR AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.”

ARTICLE III

GOVERNANCE

          Section 3.1 Board Size.

	 	(a)	 	The Board of Directors of the Company (the “Board”) shall initially consist of
[eleven (11)] directors. Thereafter, the size of the Board shall be determined in the
manner set forth from time to time in the Company’s Certificate of Incorporation and
By-Laws. SAC CBI shall have the right to nominate three (3) directors to the Board
(the “SAC Directors”). As of the date hereof, the SAC Directors shall be Messrs.
Frank Baker, Peter Berger and Jeffrey Hendren.
	 
	 	(b)	 	For so long as SAC CBI has the right to nominate the SAC Directors, the Company at
all times shall take such actions as may be required under applicable Law, NASDAQ
rules, the Certificate of Incorporation and the By-Laws to cause the Board to consist
of the number of directors in accordance with Section 3.1(a), and to include on the
Board or in the slate of nominees recommended by the Board such persons nominated
by SAC CBI pursuant to this Section 3.1.
	 
	 	(c)	 	For as long as SAC CBI has the right to nominate the SAC Directors, each Investor
hereby agrees that it will vote all of the voting Shares owned or held of record by
such Investor, or (as applicable) provide its written consent in respect thereof, in
order to elect or appoint (as applicable) the SAC Directors to the Board.

 

6

	 	(d)	 	For so long as SAC CBI has the right to nominate the SAC Directors, without the
prior written consent of SAC CBI, each Investor agrees not to take any action that
would cause the number of directors constituting the entire Board to be greater than
[eleven (11)].
	 
	 	(e)	 	For so long as SAC CBI has the right to nominate the SAC Directors, in the event a
vacancy is created at any time, including by the death, disability, retirement,
resignation or removal (with or without cause) of any SAC Director, SAC CBI may
nominate another individual to be elected to fill each such vacancy created thereby
and the parties hereto agree to take, at any time, and from time to
time, all actions
necessary or appropriate in order to effect the election or appointment (as applicable)
of each such individual to the Board.
	 
	 	(f)	 	Any proposed SAC Director, at the time when such person is nominated to serve as a
director, shall be reasonably acceptable to the Company’s Nominating and Corporate
Governance Committee as determined in good faith. SAC CBI shall notify the
Company of any proposed SAC Director, in writing, a reasonable time in advance of
the mailing of any proxy statement, information statement or registration statement in
which such proposed SAC Director would be named, together with all information
concerning such nominee reasonably requested by the Company so that the Company
can comply with applicable disclosure rules; provided that in the absence of such
notice, SAC CBI shall be deemed to have designated or nominated the same SAC
Directors currently in office or, if applicable, set forth in the most recent notice
delivered to the Company pursuant to this Section 3.1(f).
	 
	 	(g)	 	For as long as SAC CBI has the right to nominate the SAC Directors, each Investor
agrees that, (i) if at any time SAC CBI shall notify such Investor of its desire to
remove, with or without cause, any SAC Director, such Investor will vote, or cause to
be voted, all of the voting Shares owned or held of record by such Investor, and shall
take all such other actions promptly as shall be necessary or appropriate to cause the
removal of such director and (ii) it will not take any action to remove any SAC
Director unless so notified by SAC CBI.
	 
	 	(h)	 	The parties acknowledge that the Company may enter into agreements with each of the SAC
Directors providing for the payment of a total aggregate compensation amount for each SAC
Director equal to $4 million to be paid in equal installments of $1 million due and payable on
each of the first four (4) anniversaries of the date hereof, and such payments will be
structured to minimize their effect on the on-going valuation of the Company (including,
without limitation, through lump sum payments at the time of any Initial Public Offering).
Each of the other parties hereto agrees to take, at any time, and from time to time, all
actions necessary or appropriate to effect such payments and further agrees not, at any time,
directly or indirectly, any action in opposition to such payments.
	 
	 	(i)	 	After the first anniversary of the Closing, the obligations provided by Sections 3.1(c) and
3.1(g) will terminate with respect to each Investor when such Investor owns less than 3.0%
of the Company’s outstanding shares of Common Stock. The provisions

 

7

	 	 	 	of this Section 3.1 shall terminate and be of no further force or effect upon the
earlier of consummation of a Change in Control or, with respect to any Investor, at such
time as all Common Stock held by such Investor are sold, in accordance with this
Agreement, to a third party not bound by this Agreement or required to become a party
hereto, and otherwise upon the tenth anniversary hereof.

          Section 3.2 Officer Appointment. The Company and each Investor acknowledge and
agree that as of the date hereof and until the fourth anniversary of the date hereof, at the
discretion of SAC CBI, Mr. Jeffrey Hendren shall have the opportunity to serve as Vice-Chairman,
Finance of the Company. In the event that a vacancy in such position is created at any time prior
to the fourth anniversary of the date hereof, including as a result of the death, disability,
retirement, resignation or removal (with or without cause) of Mr. Hendren or any successor, SAC CBI
may nominate another individual to be appointed by the Company to fill the vacancy created thereby
and the parties hereto agree to take, at any time, and from time to time, all actions necessary or
appropriate to effect such appointment, to the extent requested by SAC CBI.

          Section 3.3 Proxy. In the event that any Investor entitled or required to vote on
or provide its written consent with respect to a matter specified in Sections 3.1 and 3.2 shall
fail at any time to vote or act by written consent (as applicable) with respect to any Shares held
of record or beneficially owned by such Investor (or as to which such Investor otherwise has direct
or indirect voting control), as set forth in this Agreement, such Investor hereby irrevocably
appoints SAC CBI as such Investor’s proxy and attorney-in-fact (with full power of substitution),
for and in the name, place and stead of such Investor, to vote or act by written consent with
respect to such Shares and to grant a consent, proxy or approval in respect of such Shares, in each
case in such manner and to the extent as is necessary or appropriate to vote such Shares in
accordance with this Agreement. Each Investor hereby affirms that the irrevocable proxy and
irrevocable power of attorney set forth in this Section 3.3 will be valid for the term of this
Agreement and are given to secure the performance of the obligations of such Investor under this
Agreement. Each Investor hereby further affirms that each proxy and power of attorney hereby
granted shall, for the term of this Agreement, be irrevocable and shall be deemed coupled with an
interest.

ARTICLE IV

REGISTRATION

          Section 4.1 Piggyback Registrations.

	 	(a)	 	Right to Piggyback. Until the earlier of (a) such time as the Shares held by an Investor may be sold
pursuant to Rule 144 under the Securities Act under circumstances in which any legend
borne by the Shares relating to restrictions on transferability thereof under the
Securities Act may be removed or (b) the first anniversary of the Closing, if the
Company proposes to register and sell any of its Common Stock under the Securities Act
and the registration form to be used may be used for the registration of the Investors’
Registrable Securities (a “Piggyback Registration”), the Company shall give
prompt written notice to the Investors of its

 

 

8

	 	 	 	intention to effect such a registration at least ten (10) days before the
anticipated offering date or as promptly thereafter as reasonably practicable, and will
include in such registration the Shares of the Investors with respect to which the
Company has received written requests for inclusion therein within five (5) days after
delivery of the Company’s notice.
	 
	 	(b)	 	Piggyback Expenses. The Registration Expenses shall be paid by the
Company in all Piggyback Registrations; provided, however, that for the avoidance of
doubt, each of the Investors shall bear its pro rata portion of any discounts and
commissions with respect to Shares sold by it in connection therewith.
	 
	 	(c)	 	Priority on Registrations. If a Piggyback Registration is an
underwritten registration on behalf of the Company, and the managing Underwriters
advise the Company in writing that in their opinion the number of Shares 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, then the number of
Shares available for registration shall be allocated (i) first, 100% to the Shares to
be sold by the Company and (ii) second, pro rata based on the relative number of
Registrable Securities then held by each Investor and Shares held by each other holder
of Shares eligible to be sold in such offering; provided, that any such amount thereby
allocated to any such holder that exceeds such holder’s request shall be reallocated
among the remaining requesting holders in like manner.

          Section 4.2 Lockup Agreements. With respect to any underwritten Public Offering,
each Investor agrees not to effect any sale or distribution (except as part of such underwritten
registration) of Registrable Securities, including a sale pursuant to Rule 144 under the Securities
Act, (i) during the fifteen (15) days prior to such offering, (ii) during the 180-day period
beginning on the effective date of the Initial Public Offering, unless the investment banks or
Underwriters managing the Public Offering otherwise agree, and (iii) during the 90-day period
beginning on the effective date of any other Public Offering, unless the investment banks or
Underwriters managing the Public Offering otherwise agree.

          Section 4.3 Registration Procedures. Whenever Investors with the right to do so
pursuant to Section 4.1 request that any of their Registrable Securities be registered pursuant
to Section 4.1, the Company will use its reasonable best efforts to effect the registration of
such Registrable Securities in accordance with the intended method of disposition thereof as
quickly as reasonably practicable, and in connection with any such request:

	 	(a)	 	The Company will as expeditiously as reasonably practicable prepare and file
with the Securities and Exchange Commission (the “Commission”) a registration
statement on any form for which the Company then qualifies and which counsel for the
Company shall deem appropriate and which form shall be available for the sale of the
Registrable Securities to be registered thereunder in accordance with the intended
method of distribution thereof (it being understood that the Company shall use Form S-3
(or any replacement form) if such form is then available), and use its reasonable best
efforts to cause such filed registration statement to become effective and keep such
registration statement effective for a period of up to one hundred twenty (120)

 

9

	 	 	 	days or, if earlier, until the distribution contemplated in the registration statement
has been completed; provided, however, that in the case of any registration of Registrable
Securities on Form S-3 (or any replacement form) that are intended to be offered on a continuous
or delayed basis, subject to compliance with applicable Commission rules, such period shall be
extended to the extent reasonably requested in order to allow sufficient time for all such
Registrable Securities to be sold.
	 
	 	(b)	 	The Company will prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement.
	 
	 	(c)	 	The Company will, prior to filing a registration statement or prospectus or any amendment or
supplement thereto, furnish to each Investor selling Registrable Securities pursuant to a
registration statement under this Section 4 (each, a “Selling Stockholder”), copies of
such registration statement as proposed to be filed, together with exhibits thereto, which
documents will be subject to review by the foregoing persons within five (5) Business Days
after delivery, and thereafter furnish to such Selling Stockholder such number of copies of
such registration statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein), the prospectus included in
such registration statement (including each preliminary prospectus) and such other documents
as such Selling Stockholder may reasonably request in order to facilitate the disposition of
the Registrable Securities owned by such Selling Stockholder and registered thereunder.
	 
	 	(d)	 	After the filing of the registration statement, the Company will promptly notify each Selling
Stockholder covered by such registration statement of any stop order issued or threatened by
the Commission and take reasonable actions to prevent the entry of such stop order or to
remove it if entered.
	 
	 	(e)	 	The Company will use its reasonable best efforts to register or qualify the Registrable
Securities under such other securities or blue sky laws of such jurisdictions in the United
States and such other jurisdictions as any Selling Stockholder reasonably (in light of such
Selling Stockholder’s intended plan of distribution) requests; provided that the Company will
not be required to (A) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph (e), (B) subject itself to taxation in
any such jurisdiction or (C) consent to general service of process in any such jurisdiction.
	 
	 	(f)	 	The (i) Company will promptly notify each Selling Stockholder covered by such registration
statement and (ii) each Investor will promptly notify the Company, at any time when a
prospectus relating to such registration statement is required to be delivered under the
Securities Act, of the occurrence of an event of which it is aware that requires the
preparation of a supplement or amendment to such prospectus 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

 

10

	 	 	 	material fact required to be stated therein or necessary to make the
statements therein not misleading, and the Company will promptly make available to each
Selling Stockholder any such supplement or amendment.
	 
	 	(g)	 	The Company will use its reasonable best efforts to comply with all applicable
rules and regulations of the Commission.
	 
	 	(h)	 	The Company will use its reasonable best efforts to cause all Registrable
Securities covered by such registration statement to be listed on each national
securities exchange on which similar securities issued by the Company are then listed
(if any), if the listing of such Registrable Securities is then permitted under the
rules of such exchange.
	 
	 	(i)	 	The Company may require each Selling Stockholder of Registrable Securities to
promptly furnish in writing to the Company such information regarding the Selling
Stockholder and the distribution of the Registrable Securities as the Company may from
time to time reasonably request, and such other information as may be necessary or
appropriate in connection with such registration.
	 
	 	(j)	 	Each Selling Stockholder agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 4.3(f), such
Selling Stockholder will immediately discontinue disposition of Registrable Securities
pursuant to the registration statement covering such Registrable Securities until such
Selling Stockholder’s receipt of the copies of the supplemented or amended prospectus
contemplated by Section 4.3(f), and, if so directed by the Company, such Selling
Stockholder will deliver to the Company all copies, other than permanent file copies
then in such Selling Stockholder’s possession, of the most recent prospectus covering
such Registrable Securities at the time of receipt of such notice.

          Section 4.4 Registration Expenses. All expenses incident 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, and fees and disbursements of counsel for the Company and all independent
certified public accountants, Underwriters (excluding underwriting discounts and commissions) and
other Persons retained by the Company (all such expenses being herein called “Registration
Expenses”) shall be borne as provided in this Agreement, except that the Company shall, in any
event, 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.

          Section 4.5 Additional Procedures. All Selling Stockholders will take all such
actions and execute all such documents and instruments that are reasonably requested by the Company
to effect the registration and sale of their securities pursuant to this Section 4, including,
without limitation, being parties to the underwriting agreement entered into by the Company and any
other Selling Stockholders in connection therewith; provided, however, that

 

11

the aggregate amount of any liability of any Selling Stockholder pursuant to such
underwriting or other agreement will not exceed such Selling Stockholder’s net proceeds from such
offering.

          Section 4.6 Termination of Registration Rights. The registration rights and the
obligations provided by this Section 4 will terminate with respect to each Investor when such
Investor owns less than 3.0% of the Company’s outstanding shares of Common Stock.

ARTICLE V

INDEMNIFICATION AND CONTRIBUTION

          Section 5.1 Indemnification by the Company. To the fullest extent permitted by
law, the Company agrees to indemnify and hold harmless each Selling Stockholder of Registrable
Securities included in the applicable registration statement, its officers, directors, employees
and agents, and each person, if any, who controls such Selling Stockholder within the meaning of
the Securities Act, from and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof to which such Selling Stockholder, officer, director, employee or agent
or controlling Person may become subject under the Securities Act or otherwise, insofar as such
loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in any registration statement, prospectus
or any preliminary prospectus or any amendment or supplement thereto relating to the Registrable
Securities or (ii) any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, in each case except
insofar as the same are contained in any information furnished to the Company by a Selling
Stockholder or on a Selling Stockholder’s behalf for use therein.

          Section 5.2 Indemnification by Stockholders of Registrable Securities. To the
fullest extent permitted by law, each Selling Stockholder agrees, severally but not jointly, to
indemnify and hold harmless the Company, each Underwriter and each other Selling Stockholder, their
respective officers, directors and agents and each Person, if any, who controls the Company, any
such Underwriter or any such other Selling Stockholder within the meaning of the Securities Act, to
the same extent as the indemnity from the Company to such Selling Stockholder pursuant to Section
5.1, but only with respect to information furnished to the Company by such Selling Stockholder or
on such Selling Stockholder’s behalf for use in any registration statement or prospectus relating
to the Registrable Securities, or any amendment or supplement thereto, or any preliminary
prospectus.

          Section 5.3 Conduct of Indemnification Proceedings. Promptly after receipt by any
Person in respect of which indemnity may be sought pursuant to Section 5.1 or 5.2 (an
“Indemnified Party”) of notice of any claim or the commencement of any action, the
Indemnified Party shall, if a claim in respect thereof is to be made against the Person against
whom such indemnity may be sought (an “Indemnifying Party”), notify the Indemnifying Party
in writing of the claim or the commencement of such action provided that the failure to notify the
Indemnifying Party shall not relieve it from any liability which it may have to an Indemnified
Party, except to the extent of any actual prejudice resulting therefrom. If any such claim or
action shall be brought against an Indemnified Party, the Indemnifying Party shall be entitled to

 

12

participate therein, and, to the extent that it wishes, jointly with any other Indemnifying
Party, assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party.
After notice from the Indemnifying Party to the Indemnified Party of its election to assume the
defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection
with the defense thereof unless (i) the Indemnifying Party shall have agreed in writing to be
liable for such expenses or (ii) the Indemnifying Party engages the same counsel to represent
itself and the Indemnified Party in such action and such counsel advises that representation of
both parties by the same counsel would be inappropriate due to an actual or reasonably likely
potential conflict of interests between them. No Indemnifying Party will, without the prior written
consent of the Indemnified Party (not to be unreasonably withheld), effect any settlement of any
claim or pending or threatened proceeding in respect of which the Indemnified Party is a party and
indemnity has been sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability arising out of such claim or
proceeding. No Indemnified Party will, without the prior written consent of the Indemnifying Party
(not to be unreasonably withheld), effect any settlement of any claim or pending or threatened
proceeding in respect of which indemnity has or may be sought hereunder by such Indemnified Party.

          Section 5.4 Contribution. If the indemnification provided for in this Article V
is unavailable to any Indemnified Parties in respect of any losses, claims, damages, liabilities or
expenses referred to herein, then each Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
losses, claims, damages, liabilities or expenses (i) as between the Company and the Selling
Stockholders on the one hand and the Underwriters on the other, in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Selling Stockholders
on the one hand and the Underwriters on the other from the offering of the Registrable Securities,
or if such allocation is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits but also the relative fault of the Company and the Selling
Stockholders on the one hand and of the Underwriters on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations and (ii) as between the Company and/or one or more other Selling
Stockholders on the one hand and any Selling Stockholder on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of each Selling Stockholder in
connection with such statements or omissions, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Selling Stockholders on the
one hand and the Underwriters on the other shall be deemed to be in the same proportion as the
total proceeds from the offering (net of underwriting discounts and commissions but before
deducting expenses) received by the Company and the Selling Stockholders bear to the total
underwriting discounts and commissions received by the Underwriters, in each case as set forth in
the table on the cover page of the prospectus. The relative fault of the Company and the Selling
Stockholders on the one hand and of the Underwriters on the other shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company and the Selling Stockholders or by the Underwriters. The relative fault of the Company
and/or one or more other Selling Stockholders on the one hand and of any Selling Stockholder on the
other shall be determined by

 

13

reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information
supplied by such Person, and the Persons’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     The Company and the Selling Stockholders agree that it would not be just and equitable if
contribution pursuant to this Section 5.4 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities referred to in the immediately preceding paragraph shall be deemed
to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such Indemnified Party in connection with investigating or defending any such action or
claim. Notwithstanding the foregoing provisions of this Section 5.4, no Underwriter shall be
required to contribute any amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages which such Underwriter has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission, and no Selling
Stockholder shall be required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities of such Selling Stockholder were offered to the public
(less underwriting discounts and commissions) exceeds the amount of any damages which such Selling
Stockholder has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. Notwithstanding the foregoing provisions of this Section 5.4, no
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

ARTICLE VI

MISCELLANEOUS

          Section 6.1 Recapitalization, Exchanges, etc. In the event that any capital stock
or other securities are issued in respect of, in exchange for, or in substitution of, any
Registrable Securities by reason of any reorganization, recapitalization, reclassification, merger,
consolidation, spin-off, partial or complete liquidation, stock dividend, split-up, sale of assets,
distribution to Stockholders or combination of the Shares or any other change in capital structure
of the Company, appropriate adjustments shall be made with respect to the relevant provisions of
this Agreement so as to fairly and equitably preserve, as far as reasonably practicable, the
original rights and obligations of the parties hereto under this Agreement and the term
“Registrable Securities,” as used herein, shall be deemed to include shares of such capital stock
or other securities, as appropriate.

          Section 6.2 Entire Agreement; Successors and Assigns. Except for restrictions on
Transfer of Shares set forth in other agreements, plans or other documents, this Agreement
constitutes the entire agreement of the parties with respect to its subject matter, supersedes all
prior or contemporaneous oral or written agreements or discussions with respect to such subject
matter, and shall be binding upon and inure to the benefit of the parties hereto and their

 

14

respective heirs, representatives, successors and assigns. Except as otherwise expressly
provided herein, no Stockholder party hereto may assign any of its respective rights or delegate
any of its respective obligations under this Agreement without the prior written consent of the
other parties hereto, and any attempted assignment or delegation in violation of the foregoing
shall be null and void.

          Section 6.3
No Waivers, Amendments.

	 	(a)	 	No delay of or omission in the exercise of any right, power or remedy accruing
to any party as a result of any breach or default by any other party under this
Agreement shall impair any such right, power or remedy, nor shall it be construed as a
waiver of or acquiescence in any such breach or default, or of any similar breach or
default occurring later; nor shall any such delay, omission nor waiver of any single
breach or default be deemed a waiver of any other breach or default occurring before or
after that waiver.
	 
	 	(b)	 	This Agreement may be amended or modified, or any provision hereof may be
waived, provided that such amendment, modification or waiver is set forth in a writing
executed by (i) the Company, (ii) the SAC Group and (iii) each Investor that would be
adversely affected thereby. Notwithstanding the foregoing, each of the Stockholders
acknowledges and agrees that in respect of a Transfer pursuant to Section 2.1 of this
Agreement, the Transferee may be added as an additional party to this Agreement by a
written joinder, provided that such addition is done in accordance with and pursuant to
the provisions of this Agreement. No course of dealing between or among any Persons
having any interest in this Agreement will be deemed effective to modify, amend or
discharge any part of this Agreement or any rights or obligations of any Person under
or by reason of this Agreement.

          Section 6.4 Notices. Any notices and other communications required or permitted
in this Agreement shall be effective if in writing and (a) delivered personally or (b) sent (i) by
nationally-known, reputable overnight carrier or (ii) by facsimile, in each case, addressed as
follows:

if to the Company:

CBaySystems Holdings Limited

2661 Riva Road, Building 800

Annapolis, MD 21401

Fax: 416-266-9409

Attention: Chief Financial Officer

if to the SAC Group:

c/o S.A.C. Capital Advisors, L.P.

72 Cummings Point Road

Stamford, Connecticut 06902

Fax: (203)823-4209

Attention: General Counsel

 

15

in each case, with a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Fax: 212-455-2502

Attention: D. Rhett Brandon

          If to any Investor, to such Investor at the address set forth in the stock record book of the
Company or as otherwise provided in writing by such Investor to the Company.

          Unless otherwise specified herein, such notices or other communications shall be deemed
effective (a) on the date received, if personally delivered, (b) two (2) Business Days (or one (1)
Business Day if sent for next Business Day delivery) after being sent by nationally-known,
reputable overnight carrier or (c) upon transmission and confirmation of receipt by a facsimile
operator, in the case of facsimile. Each of the parties hereto shall be entitled to specify a
different address by giving notice as aforesaid to each of the other parties hereto.

          Section 6.5 Termination. Unless earlier terminated, the provisions of this
Agreement shall terminate and be of no further force or effect upon the earlier of consummation of
a Change in Control or, with respect to any Investor, at such time as all Common Stock held by such
Investor are sold, in accordance with this Agreement, to a third party not bound by this Agreement
or required to become a party hereto, and otherwise upon the tenth anniversary hereof.

          Section 6.6 Governing Law. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS
OR SIMILAR RULES OR PRINCIPLES THAT MIGHT REQUIRE THE APPLICATION TO THIS AGREEMENT OF THE LAWS OF
ANOTHER JURISDICTION.

          Section 6.7 Consent to Jurisdiction. Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in New York, New York for the purpose of any action, claim, cause of action
or suit (in contract, tort or otherwise), inquiry, proceeding or investigation arising out of or
based upon this Agreement or relating to the subject matter hereof, (b) hereby waives to the extent
not prohibited by applicable law, and agrees not to assert, and agrees not to allow any of its
subsidiaries to assert, by way of motion, as a defense or otherwise, in any such action, any claim
that it is not subject personally to the jurisdiction of the above-named courts, that its property
is exempt or immune from attachment or execution, that any such proceeding brought in one of the
above-named courts is improper, or that this Agreement or the subject matter hereof may not be
enforced in or by such court and (c) hereby agrees not to commence or maintain any action, claim,
cause of action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation
arising out of or based upon this Agreement or relating to the subject matter hereof other than
before one of the above-named courts nor to make any motion or take any other action

 

16

seeking or intending to cause the transfer or removal of any such action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or investigation to any court
other than one of the above-named courts whether on the grounds of inconvenient forum or otherwise.
Notwithstanding the foregoing, to the extent that any party hereto is or becomes a party in any
litigation in connection with which it may assert indemnification rights set forth in this
Agreement, the court in which such litigation is being heard shall be deemed to be included in
clause (a) above with respect to the assertion of such rights in such matter. Each party hereto
hereby consents to service of process in any such proceeding in any manner permitted by New York
law, and agrees that service of process by registered or certified mail, return receipt requested,
at its address specified pursuant to Section 6.4 hereof is reasonably calculated to give actual
notice. Notwithstanding the foregoing in this Section 6.7, a party may commence any action in a
court other than the above-named courts solely for the purpose of enforcing an order or judgment
issued by one of the above-named courts.

          Section 6.8 Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT
(WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT
OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY,
PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED
HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT
IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 6.8 CONSTITUTES A MATERIAL
INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. ANY PARTY
HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 6.8 WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

          Section 6.9 Descriptive Headings. The descriptive headings of this Agreement are
for convenience of reference only, are not to be considered a part hereof and shall not be
construed to define or limit any of the terms or provisions hereof.

          Section 6.10 Severability. In the event that any provision hereof would, under
applicable law, be invalid or unenforceable in any respect, such provision shall be construed by
modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with,
and possible under, applicable law and the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner to the fullest extent possible. The provisions hereof are severable, and in the
event any provision hereof should be held invalid or unenforceable in any respect, it shall not
invalidate, render unenforceable or otherwise affect any other provision hereof.

          Section 6.11 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken together shall
constitute one instrument. A manual signature of a counterpart hereto delivered via facsimile

 

17

signature or by other electronic means shall be considered due execution and shall be
binding upon the signatory thereto with the same force and effect as if the signature were an
original.

          Section 6.12 Confidentiality. Each Investor agrees that it will keep confidential
and will not disclose, divulge or use for any purpose, other than to monitor its investment in the
Company and its subsidiaries, any confidential information obtained from the Company, unless such
confidential information (a) is known or becomes known to the public in general (other than as a
result of a breach of this Section 6.12 by such Investor or its Affiliates), (b) is or has been
independently developed or conceived by such Investor without use of the Company’s confidential
information or (c) is or has been made known or disclosed to such Investor by a third party (other
than another Stockholder or an Affiliate of such Investor or of another Stockholder) without a
breach of any obligation of confidentiality such third party may have to the Company that is known
to such Investor; provided, however, that an Investor may disclose confidential
information on a confidential basis (v) to its attorneys, accountants, consultants and other
professionals to the extent necessary to obtain their services in connection with monitoring its
investment in the Company, (w) to any prospective purchaser of any Shares from such Investor as
long as such prospective purchaser agrees to be bound by the provisions of this Section 6.12 as if
an Investor, (x) to any Affiliate, partner, member or related investment fund of such Investor and
their respective directors, employees and consultants, in each case in the ordinary course of
business, (y) as may be reasonably determined by such Investor to be necessary in connection with
such Investor’s enforcement of its rights in connection with this Agreement or its investment in
the Company and its subsidiaries or (z) as may otherwise be required by law or legal, judicial or
regulatory process, provided that such Investor takes reasonable steps to minimize the extent of
any required disclosure described in this clause (z); and provided, further,
however, that the acts and omissions of any Person to whom such Investor may disclose
confidential information pursuant to clauses (v) through (x) of the preceding proviso shall be
attributable to such Investor for purposes of determining such Investor’s compliance with this
Section 6.12. Each of the parties hereto acknowledge that the SAC Group, the Investors or any of
their respective Affiliates and related investment funds may review the business plans and related
proprietary information of many enterprises, including enterprises which may have products or
services which compete directly or indirectly with those of the Company, and may trade in the
securities of such enterprises. Nothing in this Section 6.12 shall preclude or in any way restrict
the SAC Group, the Investors or their respective Affiliates or related investment funds from
investing or participating in any particular enterprise, or trading in any particular securities,
whether or not such enterprise has products or services that compete with those of the Company.

          Section 6.13 Authority; Effect. Each party hereto represents and warrants (as to
itself only) to and agrees with each other party that (a) the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been duly authorized on
behalf of such party and do not violate any agreement or other instrument applicable to such party
or by which its assets are bound and (b) this Agreement constitutes a legal, valid and binding
obligation of such party, enforceable against such party in accordance with its terms, except to
the extent that the enforcement of the rights and remedies created hereby is subject to (i)
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
the rights and remedies of creditors generally and (ii) general principles of equity. This
Agreement does not, and shall not be construed to, give rise to the creation of a

 

18

partnership among any of the parties hereto, or to constitute any of such parties members of
a joint venture or other association.

          Section 6.14 Enforcement; Further Assurances.

	 	(a)	 	The parties hereto agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their
specific terms. It is accordingly agreed that the parties shall be entitled to
specific performance of the terms hereof, this being in addition to any other remedy to
which they are entitled at law or in equity.
	 
	 	(b)	 	The parties hereto agree to execute, acknowledge, deliver, file and record such
further certificates, amendments, instruments, agreements and documents, and to do all
such other acts and things, as may be required by law or as may be necessary or
appropriate to carry out the intent and purposes of this Agreement.

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date set forth above.

	 	 	 	 	 
	 	CBAYSYSTEMS HOLDINGS LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	S.A.C. PEI CB INVESTMENT, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	S.A.C. PEI CB INVESTMENT II, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	INTERNATIONAL EQUITIES (S.A.C. ASIA) LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	COSTA BRAVA PARTNERSHIP III, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	NEWCASTLE PARTNERS, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
set forth above.

	 	 	 	 	 
	 	BLACK HORSE CAPITAL MANAGEMENT LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set
forth above.

	 	 	 	 	 
	 	AMERICAN HALLMARK INSURANCE COMPANY OF TEXAS

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]