Document:

Settlement Agreement

 Exhibit 10.1 
 STATE OF CONNECTICUT 
 PUBLIC UTILITIES REGULATORY AUTHORITY

  

							
	APPLICATION FOR APPROVAL OF HOLDING COMPANY TRANSACTION INVOLVING NORTHEAST UTILITIES AND NSTAR	  	 
  
  
  
  
  
  
  
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	  	DOCKET NO. 12-01-07

  
  
  

 
 SETTLEMENT AGREEMENT 

 

 STATE OF CONNECTICUT 

PUBLIC UTILITIES REGULATORY AUTHORITY 
  

							
	APPLICATION FOR APPROVAL OF HOLDING COMPANY TRANSACTION INVOLVING NORTHEAST UTILITIES AND NSTAR	  	 
  
  
  
  
  
  
  
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	  	DOCKET NO. 12-01-07

 SETTLEMENT AGREEMENT 

WHEREAS, this Settlement Agreement is entered into by and between Northeast Utilities (“NU”) and NSTAR (together, the
“Companies”), and George Jepsen, Attorney General of the State of Connecticut (“Attorney General”), and Elin Swanson Katz, Consumer Counsel, on behalf of the State of Connecticut, Office of Consumer Counsel (“OCC”)
(collectively, the “Settling Parties”), in connection with the Companies’ application dated January 19, 2012 (“Application”) for approval of a holding company transaction (“Proposed Transaction”) pending
before the Public Utilities Regulatory Authority (“Authority”) in the above-referenced docket; 
 WHEREAS, the
Companies filed their Application for approval with the Authority, and the Settling Parties subsequently have engaged in discovery, hearings and negotiations concerning the Application, the Proposed Transaction and the matters addressed in this
Settlement Agreement; 
 WHEREAS, the Settling Parties have raised competing and disputed claims with regard to the various
issues related to the Application and Proposed Transaction, but wish to resolve those issues on mutually agreeable terms, and without establishing any precedent or principles applicable to any other proceedings; and 

WHEREAS, it is the policy of the Authority, consistent with Conn. Gen. Stat. §16-19jj, to encourage the use of settlements to
resolve contested cases and proceedings. 
 NOW THEREFORE, in consideration of the exchange of promises and covenants herein
contained, the legal sufficiency of which is hereby acknowledged, the Settling Parties agree, subject to approval by the Authority, as follows: 

 ARTICLE 1: MERGER-RELATED
FINANCIAL BENEFITS 
  

	1.1	Merger Rate Credit: NU shall provide a one-time, non-recoverable $25 million rate credit to customers of The Connecticut Light and Power Company
(“CL&P”) to be applied on the first billing cycle in the next billing month following the closing of the Proposed Transaction. 

  

	 	1.1.1	The rate credit will be allocated to CL&P retail customer classes (i.e., residential, commercial and industrial) based upon their proportional share of the
monthly customer charges, and will appear on the bill as a uniform dollar amount credit for each separate customer class as a separate line item, along with an explanatory bill message. All customers within a retail customer class shall receive the
same rate credit dollar amount. 

  

	1.2.	Distribution Rate Freeze: CL&P shall forego its right under Conn. Gen. Stat. §16-19 to implement a requested general increase in its distribution rates
prior to December 1, 2014 (the “Base Rate Freeze Period”), and its distribution rates shall be frozen through that date. 

  

	 	1.2.1	Only the distribution rates shall be subject to the freeze. Other retail rate components, including rate reconciling mechanisms, formula rates and other adjustment
mechanisms now in place or pending approval by the Authority as of the date of this Settlement Agreement shall not be affected by this Settlement Agreement. CL&P shall not file for approval of or propose new formula rates, tariffs, or other
charges, including but not limited to earning sharing mechanisms, capital trackers, or revenue decoupling mechanisms, during the Base Rate Freeze Period (“Prohibited Filings”), unless specifically mandated by the terms of this Settlement
Agreement or by statutes enacted after the date of this Settlement Agreement. Prohibited Filings shall not include filings made pursuant to Article 1, §1.2.2, and Article 4, §§4.1 and 4.3, below. 

 

	 	1.2.2	 Exogenous Costs: During the Base Rate Freeze Period, distribution rates may only be adjusted up or down by the Authority due to exogenous
factors that are outside the Companies’ control (“Exogenous Costs”). CL&P may seek and the Authority may grant Exogenous Cost recovery in the event and only to the extent that the revenue requirements of CL&P are affected by
more than $3 million annually as the result of changes in law, taxes, administrative requirements or accounting standards adopted after the date of this Settlement Agreement, provided such accounting standards are adopted by entities that are
independent of the Companies and have authority to issue such standards, or as the result of other events outside the Companies’ control that cause CL&P to incur extraordinary and unanticipated expenses for the provision of safe and
reliable electric service to the extent necessary to provide such service. Eligibility for Exogenous Cost recovery or rate credit shall be determined by the 

  
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Authority, consistent with the purposes of this Settlement Agreement and any applicable PURA precedent. 

 

	1.3	Rate Reviews: CL&P must make application for new rates to go into effect as of the end of the Base Rate Freeze Period (December 1, 2014). CL&P will
propose an earnings sharing mechanism in that rate filing. CL&P also shall make application for a rate amendment within three years after the Base Rate Freeze Period, with new rates to go into effect no later than December 1, 2017.

 ARTICLE 2: ADVANCING STATE ENERGY
GOALS 
  

	2.1	Energy Efficiency and Related Initiatives: NU shall work with the Department of Energy and Environmental Protection (“DEEP”) to develop a targeted plan
to advance Connecticut’s interests in the areas of: (a) expanded energy efficiency programs, including but not limited to low income energy efficiency programs and a small business energy efficiency strike force; (b) electric
vehicles; (c) microgrids (d) renewable projects; and (e) other related areas consistent with the Governor’s energy policy goals. A special emphasis shall be placed on increasing the number of qualified minority contractors
providing energy efficiency services. NU shall provide a one-time, nonrecurring and non-recoverable payment of $15 million for implementation of the plan during the Base Rate Freeze Period. NU shall establish a segregated account for these funds, to
be disbursed at the direction of DEEP for projects in the plan described herein. 

  

	2.2	CL&P Collaboration: CL&P will collaborate with DEEP to develop microgrid infrastructure in the CL&P service territory, including the trips and
transfers necessary to isolate portions of the grid and a pilot set of distributed generation sites. CL&P will work cooperatively and in good faith with DEEP to resolve any legal or financial issues that may arise in fostering the development of
microgrids in support of state resiliency efforts. CL&P will promote and enhance the capabilities of the Center for Storm and Power System Resiliency at the University of Connecticut. CL&P also will collaborate with DEEP to invest in the
development and deployment of an initial suite of public electric vehicle charging stations. 

ARTICLE 3: CORPORATE HEADQUARTERS, CIVIC INVOLVEMENT
AND EMPLOYMENT 
  

	3.1	Commitments: The Settling Parties acknowledge the critical importance of continuity of headquarters and executive presence in Connecticut after the merger. The
Settling Parties acknowledge that under the Companies’ merger agreement, headquarters functions will be located in Massachusetts as well as Connecticut. The Settling Parties further acknowledge the critical importance of continuity of
charitable and civic involvement, as well as employment practices. Therefore, in order to maintain continuity, for a period of no less than seven years after closing of the Proposed Transaction, the Companies commit that: 

  
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	 	3.1.1	NU will maintain principal Board and Executive offices and functions in Hartford, Connecticut, and will provide staffing and executive presence consistent with the
continued presence of such offices and functions. 

  

	 	3.1.2	NU will not sell the current headquarters office at 56 Prospect Street, Hartford, Connecticut. 

 

	 	3.1.3	NU will maintain the headquarters of CL&P, Yankee Gas Service Company (“Yankee Gas”) and the Transmission Business in Connecticut.

  

	 	3.1.4	NU Call Center operations currently conducted in Windsor, Connecticut will remain in their current location, or at another location in Connecticut.

  

	 	3.1.5	CL&P, Yankee Gas and the NU Foundation shall maintain levels and types of charitable cash donations and civic commitments consistent with typical past practice over
the five years preceding the merger, provided that the overall financial performance during the commitment period is comparable to pre-merger levels. CL&P, Yankee Gas and the NU Foundation shall provide 60 days notice to the Authority and the
other Settling Parties prior to any material reduction in the aggregate, pre-merger level and type of charitable donations and civic commitments due to financial performance. 

 

	 	3.1.6	Reductions in the Connecticut employee work force in connection with the achievement of merger synergies shall be made on a fair and equitable basis and will not be
disproportionate to other jurisdictions in which the merged entity conducts operations, either with respect to the number of reductions or with respect to the relative number of high-compensation versus low-compensation positions. The determination
of what is “disproportionate” among jurisdictions shall take into account the relative size of the Companies’ pre-merger operations in each of the jurisdictions. 

 

	 	3.1.7	In the event of a facility closing or layoff of employees in Connecticut, NU shall provide 30 days’ notice of such action to the Attorney General, OCC and the
Authority, including a demonstration of how any such closing or layoffs are consistent with the standards of equity, fairness and proportionality set out in § 3.1.6. 

 

	 	3.1.8	In order to promote stability of employment among CL&P line workers, CL&P will work with local community colleges in Connecticut to develop a line worker
apprenticeship program, and the Companies will ensure, consistent with the commitments made by their witnesses in Docket No. 12-01-07, that the aggregate number of line workers will not be reduced as a result of the Transaction, either in
Connecticut or in Massachusetts. 

  

	 	3.1.9	Nothing in this Settlement Agreement shall be interpreted to abridge existing labor agreements. 

  
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	3.2	Open Space Land: NU makes the following commitments with respect to open-space land: (a) Upon closing of the Proposed Transaction, NU agrees to extend the
term of the April 12, 2000 open space land memorandum of understanding (“MOU”) between NU and the Department of Environmental Protection, as predecessor to DEEP, for a period of 10 years from the current MOU expiration date of
July 1, 2014, and further commits to evaluate and consider additional substantive changes to the MOU that may be proposed by DEEP in connection with such extension; (b) within 12 months of the closing of the Proposed Transaction, NU shall
form an irrevocable NU preservation land trust, and within 24 months of the closing, shall transfer into said trust the following properties, currently owned by Rocky River Realty: 

 

	 	•	 	 King’s Island, Enfield/Suffield, Connecticut (approximately 188 acres) 

	 	•	 	 Skiff Mountain, Sharon, Connecticut (approximately 723 acres) 

	 	•	 	 Hanover Road, Newtown, Connecticut (approximately 57 acres) 

	 	•	 	 Barlett Road, Waterford, Connecticut (approximately 13 acres) 

NU commits to work with DEEP to explore opportunities to ensure and/or expand public access to the properties held by the NU preservation
land trust for passive recreation, where such public access is appropriate and consistent with any existing use of these properties in support of NU’s business activities; and (c) NU shall work cooperatively and in good faith with the
State of Connecticut and appropriate historical and cultural stakeholders to preserve the property known as the “Venture Smith Homestead.” 
 ARTICLE 4: IMPROVING SYSTEM PERFORMANCE 
  

	4.1	System Resiliency: CL&P shall, within 90 days of the closing of the Transaction, submit to the Authority a multi-year plan and cost recovery mechanism for
$300 million of spending in additional distribution system resiliency. The program shall be subject to the Authority’s review and approval. CL&P will be allowed recovery, through the systems benefits charge, federally mandated congestion
charge (FMCC) or similar mechanism, of the revenue requirements associated with such program at its weighted average cost of capital, with revenue requirements associated with up to $100 million of such spending recoverable during the Base Rate
Freeze Period. The total revenue requirements recoverable during the Base Rate Freeze Period, to be collected beginning January 1, 2013, shall not exceed $25 million. 

 

	4.2	 Storm Response: NU shall commit to maintain parity of service to each state within its service territory, such that the allocation of resources
for restoration efforts following major storms shall be made fairly and equitably based on operational needs, system requirements and relative number of outages. NU will file with the Authority upgraded practices and policies relating to mutual aid
by September 1, 2012. The CL&P Emergency Response Planning Process will at all 

  
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times be subject to review and approval by the Authority. 

  

	4.3	Recovery of 2011 Storm Costs: CL&P will file with the Authority a request for recovery of costs associated with Tropical Storm Irene and the October 2011
snow storm (“2011 Storm Costs”) net of insurance proceeds and the storm reserve fund. Such request will be subject to review and approval by the Authority in an adjudicatory proceeding. However, CL&P will limit its recovery to an
amount $40 million less than the total 2011 Storm Costs (“$40 million write-down”). Nothing in this Agreement shall restrict any party from advocating, or the Authority from determining, an appropriate level of 2011 Storm Cost
recovery that is lower than 2011 Storm Costs less the $40 million write-down. At the end of the Base Rate Freeze Period when new rates are implemented, any 2011 Storm Costs approved by the Authority for recovery will be recovered in rates consistent
with standard cost review and recovery practice of the Authority over a six year recovery period. 

  

	4.4	Service Quality: CL&P and Yankee Gas shall commit to improve non-storm and storm-related service quality performance. Failure to at least maintain service
quality performance consistent with historical averages over the last 10 years shall subject the companies to such penalties as may be within the Authority’s jurisdiction and as may be imposed by the Authority from time to time for failure to
maintain service quality. 

 ARTICLE 5: EQUITY AND
TRANSPARENCY 
  

	5.1	Accounting for Goodwill: The transaction value recorded on the books of NSTAR LLC (the post-closing holding company that will be the sole shareholder of
NSTAR Electric and NSTAR Gas) upon the close of the Proposed Transaction will include goodwill as defined under Generally Accepted Accounting Principles (“GAAP”). The Settling Parties agree that the goodwill resulting from the Proposed
Transaction will not be recorded on the books of the operating companies post merger, including CL&P and Yankee Gas, unless required by a change in the rules or directives of the Securities Exchange Commission or a change in GAAP. If so
required, the operating companies shall quantify the goodwill and its effects recorded on the financial books of account and shall exclude that amount, or any write-down thereof, from any ratemaking calculation used to set customer rates, tariffs or
charges, and such amount would be excluded from the calculation of the earned rates of return or the debt-to-equity ratio of CL&P or Yankee Gas. 

  

	5.2	Net Book Value of Utility Assets: In completing the Proposed Transaction, CL&P and Yankee Gas shall not make any accounting adjustment that has the result of
increasing the net book value of utility assets for ratemaking purposes. 

  

	5.3	 Accounting Treatment and Future Ratemaking of Merger-Related Costs: No transaction costs incurred to negotiate, draft, or execute the merger
agreement, or 

  
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to obtain the regulatory and shareholder approvals required to consummate the Proposed Transaction, shall be recorded on the books of CL&P or Yankee Gas. Any future recovery of transaction
and integration costs is subject to Authority review and approval in a future rate proceeding. Parties are free to support or oppose such recovery in full or in part. Merger-related payments made to officers leaving the employ of NSTAR, NU, any of
the temporary or surviving entities engaged in the proposed merger transactions, the operating companies, or their successors (together, the “post-merger organization”) in the category of “change of control” payments, or to
executives remaining with the post-merger organization in the category of “retention payments,” shall be recorded at the parent company level upon the merger close and shall not be eligible for recovery as a merger-related cost or
otherwise from customers. 

  

	5.4	Cape Wind and Other Massachusetts Initiatives: The Settling Parties agree that CL&P and Yankee Gas shall bear none of the costs associated with commitments
made by the Companies or their Massachusetts operating companies with respect to the Cape Wind project or other Massachusetts initiatives in settlement agreements filed in Massachusetts related to the Proposed Transaction, and no such costs shall be
recovered from CL&P or Yankee Gas customers. 

 ARTICLE 6: DEPARTMENT
APPROVALS AND OTHER CONDITIONS 
  

	6.1	Settlement Approval: The Settling Parties assert that, if the Authority does not approve this Settlement Agreement in its entirety on or before April 2,
2012, this filing shall be deemed to be withdrawn and shall not constitute a part of the record in any proceeding or used for any other purpose. 

  

	6.2	Merger Approval: The Settling Parties agree that the Proposed Transaction is consistent with Connecticut law and the public interest. This Settlement Agreement
is contingent upon the Authority’s simultaneous approval of this Settlement Agreement and the Proposed Transaction on or before April 2, 2012. 

  

	6.3	The provisions of this Settlement Agreement are not severable. This Settlement Agreement is conditioned on its full approval by the Authority without additional
conditions or requirements. 

  

	6.4	If, for any reason, the Proposed Transaction is not consummated, the terms of this Settlement Agreement shall be null and void and no longer apply even if already
approved by the Authority subject to the terms set forth herein. 

  

	6.5	 This Settlement Agreement shall not be deemed in any respect to constitute an admission by any party that any allegation or contention in this
proceeding is true or false. Except as specified in this Settlement Agreement to accomplish the customer benefit intended by this Settlement Agreement, the entry of an order by the Authority approving the Settlement Agreement shall not in any
respect 

  
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constitute a determination by the Authority as to the merits of any other issue raised in this proceeding. 

 

	6.6	The making of this Settlement Agreement establishes no principles and shall not be deemed to foreclose any party from making any contention in any proceeding or
investigation, except as to those issues and proceedings that are stated in this Settlement Agreement as being specifically resolved and terminated by approval of this Settlement Agreement. 

 

	6.7	This Settlement Agreement is the product of settlement negotiations. The Settling Parties agree that the content of those negotiations (including any workpapers or
documents produced in connection with the negotiations) are confidential, that all offers of settlement are without prejudice to the position of any party or participant presenting such offer or participating in such discussion, and, except to
enforce rights related to this Settlement Agreement, comply with the Connecticut Freedom of Information Act or defend against claims made under this Settlement Agreement, that they will not use the content of those negotiations in any manner in
these or other proceedings involving one or more of the parties to this Settlement Agreement, or otherwise. 

  

	6.8	Any number of counterparts of this Settlement Agreement may be executed, and each shall have the same force and effect as an original instrument, and as if all the
parties to all the counterparts had signed the same instrument. 

  

	6.9	If there is any material change to the current agreement between the Companies and the Massachusetts Department of Energy Resources (“DOER”) and the
Massachusetts Attorney General prior to any approval by the Authority, any party may declare this Settlement Agreement null and void. If there is any material change to the current agreement between the Companies and the DOER and the Massachusetts
Attorney General after approval by the Authority, the Attorney General and the OCC reserve the right to seek to reopen Docket No. 12-01-07 pursuant to Conn. Gen. Stat. § 16-9. 

  
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 The signatories listed below represent that they are authorized on behalf of their
principals to enter into this Settlement Agreement. 
  

									
	ATTORNEY GENERAL OF THE STATE OF CONNECTICUT	 		 	NORTHEAST UTILITIES
					
	By:	 	/s/ GEORGE JEPSEN	 		 	By:	 	/s/ DAVID R. MCHALE
		 	 George Jepsen
 Attorney
General
 Office of the Attorney General

55 Elm Street
 Hartford, CT 06106
	 		 		 	 David R. McHale
 Executive
Vice President and
 Chief Financial Officer
 Northeast Utilities
 56 Prospect Street
 Hartford, CT 06103

  

									
	OFFICE OF CONSUMER COUNSEL	 		 	NSTAR
					
	By:	 	/s/ ELIN SWANSON KATZ	 		 	By:	 	/s/ JAMES J. JUDGE
		 	 Elin Swanson Katz
 Consumer
Counsel
 Office of Consumer Counsel

Ten Franklin Square
 New Britain, CT
06051
	 		 		 	 James J. Judge
 Senior Vice
President and Chief
 Financial Officer

NSTAR
 800 Boylston Street

Boston, MA 02109

 Dated: March 13, 2012 

  
 9<![CDATA[Amended & Restated Third Amendment  to Senior Subordinated Note.]]>

 Exhibit 4.1 
 Execution Copy 
 AMENDED AND RESTATED 

THIRD AMENDMENT TO SENIOR SUBORDINATED 
 NOTE PURCHASE AGREEMENT 
 AND WAIVER AGREEMENT

 THIS AMENDED AND RESTATED THIRD AMENDMENT TO SENIOR SUBORDINATED NOTE PURCHASE AGREEMENT AND WAIVER AGREEMENT (this
“Amendment”) is entered into as of March 7, 2012 by and among MModal CB Inc. (f/k/a CBay Inc.), a Delaware corporation, MModal MQ Inc. (f/k/a Medquist Inc.), a New Jersey corporation, MModal Services, Ltd. (f/k/a Medquist
Transcriptions, Ltd.), a New Jersey corporation (collectively, the “Issuers”), MModal Inc. (f/k/a MedQuist Holdings Inc.), a Delaware corporation (“Holdings”), BlackRock Kelso Capital Corporation
(“BKC”), PennantPark Investment Corporation (“Pennant”), Citibank, N.A. (“Citibank”), and THL Credit, Inc. (“THL” and, together with BKC, Pennant, and Citibank, the
“Purchasers”). 
 RECITALS 
 A. The Issuers, Holdings, and the Purchasers are parties to that certain Senior Subordinated Note Purchase Agreement, dated as of September 30, 2010, as amended by that certain Waiver and First
Amendment, dated as of July 11, 2011, as further amended by that certain Second Amendment to Senior Subordinated Note Purchase Agreement, dated as of July 11, 2011, and as further amended by that certain Third Amendment to Senior
Subordinated Note Purchase Agreement and Waiver Agreement (the “Third Amendment”), dated as of March 7, 2012 (as further amended, supplemented, restated or otherwise modified from time to time, the “Note Purchase
Agreement”). Capitalized terms used herein without definition shall have the meanings set forth in the Note Purchase Agreement. 
 B. The Issuers have requested that Purchasers amend and restate the Third Amendment, and the Purchasers have agreed to do so subject to the terms and conditions hereof. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and intending to be legally bound, the
parties hereto amend and restate the Third Amendment in its entirety to read as follows: 
 A. AMENDMENTS 

1. Section 1.1 of the Note Purchase Agreement is amended by deleting the word “and” at the end of subclause (b)(xi) of the
definition of Consolidated EBITDA, replacing the word “minus” at the end of subclause (b)(xii) with the word “and”, and adding the following new subclause (b)(xiii): 

(xiii) a one-time payment of up to $19,300,000 made prior to December 31, 2011, with respect to the termination of
certain contracts with Nuance Communications, Inc.; minus 

 2. The definition of “Permitted Acquisition” set forth in Section 1.1 of the
Note Purchase Agreement is amended and restated in its entirety as follows: 
 ““Permitted Acquisition”
means any Proposed Acquisition satisfying each of the following conditions: (a) the aggregate amounts payable in connection with, and other consideration for (in each case, including all transaction costs and all Indebtedness, liabilities and
Guaranty Obligations incurred or assumed in connection therewith or otherwise reflected in a Consolidated balance sheet of Holdings and the Proposed Acquisition Target), such Proposed Acquisition and all other Permitted Acquisitions consummated on
or prior to the date of the consummation of such Proposed Acquisition shall not exceed (i) $50,000,000 in the aggregate in any Fiscal Year or $150,000,000 in the aggregate during the term of this Agreement plus (ii) Additional Available
Cash as of the date of consummation of such Proposed Acquisition plus (iii) an unlimited amount in the form of shares of common stock of Holdings issued in connection with such Proposed Acquisition, (b) the Purchasers shall have received
reasonable advance notice of such Proposed Acquisition including a reasonably detailed description thereof at least 15 days prior to the consummation of such Proposed Acquisition (or such later date as may be agreed by the Required Purchasers) and
on or prior to the date of such Proposed Acquisition, the Purchasers shall have received copies of the acquisition agreement and related Contractual Obligations, evidence of compliance with the limits set forth under clause (a) (including
supporting calculations) and other documents (including financial information and analysis, environmental assessments and reports, opinions, certificates and lien searches) and information reasonably requested by the Required Purchasers, (c) as
of the date of consummation of such Proposed Acquisition and after giving effect to all transactions to occur on such date as part of such Proposed Acquisition, (1) all conditions set forth in clauses (i) and (ii) of
Section 3.1(f) shall be satisfied or duly waived, (2) Holdings shall, on a Pro Forma Basis as of the last day of the last Fiscal Quarter for which Financial Statements have been delivered hereunder, have a Consolidated Total
Leverage Ratio and Consolidated Senior Leverage Ratio which are at least 0.25:1.00 less than the required thresholds set forth in Sections 5.1 and 5.2 as of such date, as applicable, and (3) Holdings shall have Liquidity of
at least $20,000,000 and (d) such Proposed Acquisition is consummated no earlier than December 31, 2010.” 
 B.
WAIVERS 
 1. The Purchasers hereby waive any Default that may have arisen under Section 9.1(c) of the Note Purchase
Agreement as a result of the failure of the Group Members to promptly deliver to the Purchasers, as required pursuant to Section 7.10 of the Note Purchase Agreement, such documents as are necessary to ensure that MultiModal Technologies, LLC
(“MultiModal”), Poiesis Informatics, Inc. (“Poiesis”), All Type Medical Transcription Services, Inc. (“All Type”, and together with MultiModal, Poiesis and each of their respective Subsidiaries, the
“Acquired Subsidiaries”) and each of their respective Subsidiaries, each of which are Wholly Owned Subsidiaries of Note Parties, guaranty the payment of the Obligations of the Issuers; provided, that, except as provided in
Section E below, on or before March 30, 2012, or such later date to which the Required Purchasers agree in writing, all documents and 

  
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deliverables are delivered to the Purchasers and all other actions are taken by the Group Members, in each case as required pursuant to Section 7.10 of the Note Purchase Agreement with
respect to Acquired Subsidiaries and each of their respective Subsidiaries. 
 2. The Purchasers hereby waive any Default that
may have arisen under Section 9.1(c) of the Note Purchase Agreement as a result of the making and maintaining of the Investments in Poiesis, All Type and certain assets acquired through the asset purchase agreements listed on Schedule I hereto,
in each case caused by the failure of such Investment to comply with clause (b) of the definition of “Permitted Acquisition” under the Note Purchase Agreement which requires that the Purchasers receive (i) reasonable advance
notice of any Proposed Acquisition including a reasonably detailed description thereof at least 15 days prior to the consummation of such Proposed Acquisition, and (ii) copies of the acquisition agreement and related Contractual Obligations and
other documents (including financial information and analysis, environmental assessments and reports, opinions, certificates and lien searches) and other information reasonably requested by the Required Purchasers, on or prior to the date of such
Proposed Acquisition. 
 3. The Purchasers hereby waive any Default that may have arisen under Section 9.1(b) of the Note
Purchase Agreement as a result of the execution and delivery by (A) the Issuers of a Compliance Certificate dated November 10, 2011 representing that no Default or Event of Default was continuing as of the date thereof, and (B) the
Issuers, Holdings and the other Note Parties of the Third Amendment, certifying that the representations and warranties set forth in the Note Documents were true and correct in all material respects, and no default other than those described therein
had occurred and were continuing both before and after giving effect to the Third Amendment. 
 4. Subject to the Issuers’
subsequent compliance with Section E(2) hereof, the Purchasers hereby waive any Default that may have arisen under Section 9.1(c) of the Note Purchase Agreement as a result of the delivery of (i) monthly financial statements for December
2011 and January 2012 as required under Section 6.1(a) of the Note Purchase Agreement and (ii) the projections required under Section 6.1(f) of the Note Purchase Agreement for Fiscal Year 2012, in each case later than the respective
time periods set forth in Section 6.1(a) and Section 6.1(f) of the Note Purchase Agreement. 
 C. CONDITIONS TO
EFFECTIVENESS  
 Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of
the Purchasers hereunder, it is understood and agreed that this Amendment shall not become effective, and the Note Parties shall have no rights under this Amendment, until the Required Purchasers shall have received each of the following in form and
substance acceptable to the Required Purchasers: 
 1. duly executed signature pages to this Amendment from the Required
Purchasers, each Issuer, and each Note Party; 
 2. a fully executed copy of an agreement under the Senior Credit Agreement
waiving any defaults thereunder that may have arisen as a result of the actions described in 

  
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Section B hereof, in form and substance substantially similar to this Amendment and otherwise reasonably acceptable to the Required Purchasers; and 

3. payment of all reasonable fees and expenses (including reasonable expenses of outside counsel) of the Purchasers incurred in
connection with this Amendment. 

  
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 D. REPRESENTATIONS 

Each Note Party hereby represents and warrants to the Purchasers that: 

1. The execution, delivery and performance by such Note Party of this Amendment (a) are within such Note Party’s corporate or
similar powers and, at the time of execution hereof, have been duly authorized by all necessary corporate and similar action, (b) do not (i) contravene such Note Party’s Constituent Documents, (ii) violate any applicable material
Requirement of Law in any material respect, (iii) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material Contractual Obligation of any Group Member (including
other Related Documents or Note Documents) other than those that would not, in the aggregate, have a Material Adverse Effect, (iv) do not materially adversely affect any Permit of such Note Party other than those that would not, in the
aggregate, have a Material Adverse Effect or (v) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Group Member and (c) do not require any Permit of, or filing with, any Governmental Authority or
any consent of, or notice to, any Person, other than those which, if not obtained or made, would not reasonably be expected to have a Material Adverse Effect; 
 2. This Amendment (a) has been duly executed and delivered to the other parties hereto by each Note Party party hereto, (b) is the legal, valid and binding obligation of such Note Party and
(c) is enforceable against such Note Party in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization or moratorium or similar laws affecting the rights or remedies of creditors generally and
subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity); and 

3. Upon giving effect to this Amendment, the representations and warranties set forth in the Note Purchase Agreement and the other Note
Documents are true and correct in all material respects or, to the extent such representations and warranties expressly relate to an earlier date, on and as of such earlier date. Before giving effect to this Amendment, no Default other than those
described in Section B above has occurred and is continuing as of the date hereof. Upon giving effect to this Amendment, no Default is continuing as of the date hereof. 
 E. COVENANTS 
 Each Note Party hereby covenants and agrees to the
Purchasers that: 
 1. On or before March 30, 2012, or such later date to which the Required Purchasers agree in writing,
all documents and deliverables shall be delivered to the Purchasers and all other actions shall be taken by the Group Members, in each case as required pursuant to Section 7.10 of the Note Purchase Agreement with respect to the Acquired
Subsidiaries and their respective Subsidiaries. 
 2. On or before March 9, 2012, or such later date to which the Required
Purchasers agree in writing, the monthly reports required to be delivered pursuant to Section 6.1(a) of the Note Purchase Agreement for the month of January 2012 shall be delivered to the Purchasers. 

The Note Parties hereby agree and acknowledge that the failure of the Note Parties to comply with the covenants set forth in this Section E shall
constitute an immediate Event of Default 

  
 5 

 
under Section 9.1(c) of the Note Purchase Agreement with no additional cure period or grace period. 
 F. OTHER AGREEMENTS 
 1. Continuing Effectiveness of Note Documents.
As amended hereby, all terms of the Note Purchase Agreement and the other Note Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Note Parties party thereto. To
the extent any terms and conditions in any of the other Note Documents shall contradict or be in conflict with any terms or conditions of the Note Purchase Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed
modified and amended accordingly to reflect the terms and conditions of the Note Purchase Agreement as modified and amended hereby. Upon the effectiveness of this Amendment such terms and conditions are hereby deemed modified and amended accordingly
to reflect the terms and conditions of the Note Purchase Agreement as modified and amended hereby. 
 2. Reaffirmation of
Guaranty. Each Guarantor consents to the execution and delivery by the Issuers of this Amendment and the consummation of the transactions described herein, and ratifies and confirms the terms of the Guaranty Agreement to which such Guarantor is
a party with respect to the Indebtedness now or hereafter outstanding under the Note Purchase Agreement as amended hereby and all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary
contained herein or in any other document evidencing any Indebtedness of the Issuers to the Purchasers or any other obligation of the Issuers, or any actions now or hereafter taken by the Purchasers with respect to any obligation of the Issuers, the
Guaranty Agreement to which such Guarantor is a party (i) is and shall continue to be a primary obligation of such Guarantor, (ii) is and shall continue to be an absolute, unconditional, continuing and irrevocable guaranty of payment, and
(iii) is and shall continue to be in full force and effect in accordance with its terms. Nothing contained herein to the contrary shall release, discharge, modify, change or affect the original liability of any Guarantor under the Guaranty
Agreement to which such Guarantor is a party. 
 3. [Reserved]. 

4. Effect of Amendment. Except as set forth expressly herein, all terms of the Note Purchase Agreement, as amended hereby, and the
other Note Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Issuers to the Purchasers. The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or remedy of the Purchasers under the Note Purchase Agreement, nor constitute a waiver of any provision of the Note Purchase Agreement. This Amendment shall constitute a
Note Document for all purposes of the Note Purchase Agreement. 
 5. Governing Law. This Amendment shall be
governed by, and construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America. 

  
 6 

 6. No Novation. This Amendment is not intended by the parties to be, and shall
not be construed to be, a novation of the Note Purchase Agreement and the other Note Documents or an accord and satisfaction in regard thereto. 
 7. Costs and Expenses. The Issuers agree to pay on demand all reasonable and documented costs and expenses of the Purchasers in connection with the preparation, execution and delivery of this
Amendment, including, without limitation, the reasonable and documented fees and out-of-pocket expenses of outside counsel for the Purchasers with respect thereto. 
 8. Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken
together, shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile transmission, Electronic Transmission or containing an E-Signature shall be as effective as delivery of a
manually executed counterpart hereof. 
 9. Binding Nature. This Amendment shall be binding upon and inure to the benefit
of the parties hereto, their respective successors, successors-in-titles, and assigns. 
 10. Entire Understanding. This
Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto. 

11. Amendment and Restatement. On the date on which all conditions to effectiveness in Section C hereof have been met to the satisfaction
of the Required Purchasers, the Third Amendment shall be amended and restated in its entirety by this Amendment. Neither the execution and delivery of this Amendment nor the consummation of any other transaction contemplated hereunder is intended to
constitute a novation of the Note Purchase Agreement, the Third Amendment or of any other Note Documents or any obligations thereunder. 
 [Remainder of page intentionally left blank] 

  
 7 

 Execution Copy 
 Schedule I 
 ASSET PURCHASE AGREEMENTS 

 

	1.	Asset Purchase Agreement, dated as of September 7, 2011, by and among MModal Services, Ltd., JLG Medical, Inc., Steven Allen, Giselle Gloser, Dale Iorillo and
Philip Williams, and Steven Allen, as the Shareholder Representative. 

  

	2.	Asset Purchase Agreement, dated as of September 28, 2011, by and among MModal Services, Ltd., eTransPlus, Inc., John Reigard, John Hayman, Kenneth Davis and Greg
Shelton, and John Reigard, as the Shareholder Representative. 

  

	3.	Asset Purchase Agreement, dated as of November 1, 2011, by and among MModal Services, Ltd., Healthcare Contract Resources, Inc., S. Patrick King Jr. and Gayle F.
Keith. 

  

	4.	Asset Purchase Agreement, dated as of November 21, 2011, by and among MModal Services, Ltd., ExecuScribe, Inc. and Linda Yaniszewski. 

 

	5.	Asset Purchase Agreement, dated as of November 21, 2011, by and among MModal Services, Ltd., Expert Medical Transcription, Inc. and Kenneth W. Schafer.

  

	6.	Asset Purchase Agreement, dated as of February 6, 2012, by and among MModal Services, Ltd., Documentation Services Group, Inc. and Graham E. Argott, Darlene S.
Bambrough and John A. Carlos. 

 ACCEPTED AND AGREED: 
 Issuers 
 MMODAL CB INC. 

 

			
	By:	 	 /s/ Kashyap Joshi

		 	Name: Kashyap Joshi
		 	Title: V.P. Finance

 MMODAL MQ INC. 
  

			
	By:	 	 /s/ Mark R. Sullivan

		 	Name: Mark R. Sullivan
		 	Title: General Counsel

 MMODAL SERVICES, LTD. 
  

			
	By:	 	 /s/ Mark R. Sullivan

		 	Name: Mark R. Sullivan
		 	Title: General Counsel

 Holdings 

MMODAL INC. 
  

			
	By:	 	 /s/ Mark R. Sullivan

		 	Name: Mark R. Sullivan
		 	Title: General Counsel

  
 Signature Page
to A&R Third Amendment to NPA- MModal

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