Document:

Exhibit 10.1

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) is made as of the 30th day of September 2016 (the “Effective Date”), at 9:00 a.m. Houston, Texas time, by and among Halcón Energy Properties, Inc., a Delaware corporation (“HEPI”), and Halcón Gulf States, LLC, an Oklahoma limited liability company (collectively with HEPI, the “Assignors”) and Apollo HK TMS Investment Holdings, L.P., a Delaware limited partnership (the “Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, Assignee owns 100% of the outstanding preferred shares of HK TMS, LLC, a Delaware limited liability company (the “Company”); and

 

WHEREAS, immediately prior to the Effective Date, Assignors collectively own 100% of the common shares of the Company (such common shares, the “Membership Interests”); and

 

WHEREAS, the Assignors desire to transfer to the Assignee, and the Assignee has agreed to accept from the Assignors, the Assignors’ right, title and interest to the Membership Interests; and

 

WHEREAS, Assignors and Assignee recognize and agree that (i) if the Company were liquidated as of the date hereof under Section 10.2 of the Company Agreement (as defined below), the Membership Interests would not be entitled to any liquidating distribution, and, therefore, the Membership Interests have no realizable net fair market value and (ii) the assignment that is the subject hereof is being made for the convenience, and at the request, of Assignors; and

 

WHEREAS, Assignee desires to be admitted to the Company as a common member, upon such admission Assignors desire to cease to be members of the Company and the parties hereto desire that the business of the Company continue without dissolution.

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.             Assignment.

 

(a)           As of the Effective Date, each Assignor hereby assigns, grants, conveys, transfers and sets over unto Assignee, all right, title and interest of such Assignor in and to the Membership Interests.  The foregoing assignment includes all rights in and claims to any Company profits, losses, distributions of any kind and all other economic and other rights of any nature allocable and accruing in respect of the Membership Interests arising from and after the Effective Date.

 

(b)           In connection with the assignment of the Membership Interests in clause (a) above, each Assignor hereby transfers custody and possession of all of the original (or copies where originals do not exist) files, records, information and data, whether written or electronically stored, relating to (i) land and title records (including abstracts of title, title

 

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opinions and title curative documents) of the Company, (ii) operations, environmental and production records of the Company, (iii) well records of the Company, (iv) geologic technical data including logs and maps of the Company and (v) financial information of the Company including budgets, and accounting, tax and cost records.

 

2.             Acceptance and Assumption.

 

(a)           As of the Effective Date, Assignee hereby (i) accepts the assignment of the Membership Interests and (ii) agrees with Assignors that Assignee will (x) assume and pay all liabilities and obligations arising from the ownership of the assigned Membership Interests from and after the Effective Date and (y) perform all of the terms, covenants and conditions on the part of Assignee to be performed under that certain Amended and Restated Limited Liability Company Agreement of HK TMS, LLC, dated as of June 16, 2014 and as subsequently amended (the “Company Agreement”).

 

(b)           As of the Effective Date, Assignee shall be deemed a Common Member of the Company pursuant to the Company Agreement and agrees to be bound by all of the terms and conditions therein.

 

(c)           As of the Effective Date and concurrently with the assignment of the Membership Interests, each Assignor does hereby withdraw as a member of the Company and ceases to hold any interest in the Company and thereupon ceases to have or exercise any right or power as a member of the Company.  For purposes of clarity, as of the Effective Date, HEPI further hereby resigns as the Managing Member (as defined in the Company Agreement).

 

3.             Consent of Assignor.           For purposes of Article VI of the Company Agreement, and in their respective capacities as either Preferred Members or Common Members of the Company, the Assignors and Assignee hereby (a) consent to (i) the transactions described herein, including the assignment of the Membership Interests from the Assignors to the Assignee, (ii) the withdrawal of Assignors as a member of the Company, (iii) the resignation of HEPI as Managing Member of the Company and (iv) the admission of the Assignee as a Common Member of the Company, and (b) agrees to revise Exhibit A to the Company Agreement, in the manner set forth on Exhibit B hereto to reflect the transaction contemplated by this Agreement.

 

4.             Tax Matters.  Notwithstanding anything to the contrary in this Agreement,

 

(a)           Assignors shall indemnify and hold harmless the Company from and against any liability (i) attributable to the inclusion of the Company in any consolidated, combined or unitary return that includes Assignors or any Affiliate for any taxable period or portion thereof ending on or prior to the Effective Date and (ii) under Treasury Regulation § 1.1502-6 and any similar provision of state or local law.

 

(b)           Assignors shall prepare and timely file (i) all federal, state and local tax returns of the Company that have historically been filed on a consolidated or unitary basis with those of other Affiliates of Assignors attributable to each taxable period or portion thereof ending on or prior to the Effective Date or (ii) any other tax returns of the Company attributable to each taxable period or portion thereof ending on or prior to the Effective Date.

 

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(c)           Without the consent of Assignee, Assignors shall not knowingly take any action or make any tax election that would cause, and shall refrain from knowingly taking any action or making any tax election that would avoid, the net operating losses and other tax benefits available to be utilized by the Company in any taxable period or portion thereof beginning on the Effective Date being reduced or available to be utilized by any person other than the Company.  The provisions of this Section 4(c) shall not apply to any actions or tax elections applicable solely to any taxable period or portion thereof ending on or prior to the Effective Date.

 

(d)           Notwithstanding anything to the contrary in the Services Agreement (defined below) as it exists on the date hereof, the parties hereto agree that the Company shall engage a third party to prepare and file all tax returns for the Company for any taxable period beginning after the Effective Date and such third party shall bill the Company directly for such services.  Except as otherwise specifically set forth in this Section 4, neither Assignors nor their Affiliates shall have any liability with respect to tax returns prepared and filed by such third party.

 

5.             Release and Waiver.  Subject to Section 4 and the terms and conditions set forth in that certain Management Services Agreement dated June 16, 2014 by and among HEPI and the Company (as the same has been amended or as the same may be amended, modified or replaced, the “Services Agreement”), each of the parties to this Agreement does hereby irrevocably waive and release all of such party’s rights under the Company Agreement and unconditionally and irrevocably waives any claims that it has or may have in the future against the Company, the other party hereto, or any of their respective Affiliates relating to any period on or prior to the Effective Date and such party releases, on its own behalf and on behalf of its successors and assigns, the Company, the other party hereto, or any of their respective Affiliates, from any and all claims and causes of action (whether at law or in equity) with respect thereto; provided that neither the Assignors nor their Affiliates are released from any claims arising as a result of fraud or any prior material misrepresentation made with respect to the allocation of funds or incurrence of costs of the Company.  Each of the parties to this Agreement hereby waives, releases and agrees not to assert such claim or right regardless of the theory upon which any claim may be based, whether contract, equity, tort, warranty, strict liability or any other theory of liability, except to the extent such claim may be asserted in accordance with the Services Agreement.  EACH OF THE ASSIGNORS AND ASSIGNEE HEREBY WAIVES ALL RIGHTS AFFORDED BY ANY STATUTE WHICH LIMITS THE EFFECT OF THE FOREGOING RELEASE WITH RESPECT TO UNKNOWN CLAIMS.  ASSIGNORS UNDERSTAND THE SIGNIFICANCE OF THE FOREGOING RELEASE OF UNKNOWN CLAIMS AND WAIVER OF STATUTORY PROTECTION AGAINST A RELEASE OF UNKNOWN CLAIMS.  EACH OF THE ASSIGNORS AND ASSIGNEE HEREBY ACKNOWLEDGES AND AGREES THAT THIS WAIVER IS AN ESSENTIAL AND MATERIAL TERM OF THIS ASSIGNMENT. For the purposes of this Agreement, an “Affiliate” of a person means any other person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person. The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

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6.             Further Assurances.             The parties hereto covenant and agree that they will execute, deliver and acknowledge from time to time at the request of the other, and without further consideration, all such further instruments of assignment or assumption of rights and/or obligations as may be required in order to give effect to the transactions described herein.

 

7.             Representations and Warranties.

 

(a)           Each of the parties hereto hereby represents and warrants to the other party as follows:

 

(i)            Formation; Existence.  Each party is duly formed, validly existing and in good standing under the laws of the State of Delaware or the State of Oklahoma, as applicable.

 

(ii)           Power and Authority.  Each party has all requisite power and authority to enter into this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution, delivery and performance of this Agreement and the consummation of the transactions provided for in this Agreement have been duly authorized by all necessary action on the part of each party.  This Agreement has been duly executed and delivered by each party and constitutes the legal, valid and binding obligation, enforceable against each party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights and by general principles of equity (whether applied in a proceeding at law or in equity).

 

(iii)          No Consents.  No consent, license, approval, order, permit or authorization of, or registration, filing or declaration with, any foreign or domestic federal, state, provincial or local government or quasi-governmental authority or any department, agency, commission, subdivision, court, or other tribunal of any of the foregoing (“Governmental Authority”) (that has not already been obtained or will be obtained on or before the Effective Date) is required to be obtained or made in connection with the execution, delivery and performance of this Agreement by either party.

 

(iv)          No Conflicts.  Each party’s execution, delivery and compliance with, and performance of the terms and provisions of, this Agreement will not (a) result in any violation of its organizational documents or any of the organizational documents of such party, (b) result in any violation of any provision of any bond, note or other instrument of indebtedness, contract, indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument, in each case, to which such party is a party, or (c) violate any applicable statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority relating to such party.

 

(b)           Each Assignor hereby represents and warrants to Assignee as follows:

 

(i)            Membership Interests.  Such Assignor, together with the other Assignor, is the sole beneficial and record owner of, and has good and valid title to, the

 

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Membership Interests.  Upon the consummation of the transactions contemplated hereby, Assignee will receive good and valid title to the Membership Interests.  The Membership Interests are not subject to any purchase option, call option, right of first refusal, preemptive right, subscription right, registration right or any similar right under any provision of applicable law, the organizational documents of the Company or any contract to which the Company is or was a party or by which it is or was otherwise bound.  Other than as set forth in the Company’s organizational documents, there are no voting trusts, proxies or other member or similar agreements or understandings with respect to the voting of the Membership Interests.  There are no powers of attorney or other delegated authorities that may be binding on the Company in respect of the Membership Interests.

 

(ii)           Material Contracts.  Schedule 7(b)(ii) hereto sets forth all material agreements and contracts to which the Company is a party or by which the Company or any of the assets of the Company is bound and no material defaults under any such agreements or contracts exist (and no event has occurred that with notice or lapse of time or both would constitute a material default under any such contracts) by the Company or, to such Assignor’s knowledge, by any other person.

 

(iii)          Take-or-pay.  The Company has no obligation to deliver hydrocarbons (or cash in lieu thereof) from its interest in the Company’s assets to other persons as a result of past production by the Company or its predecessors in excess of the share to which they are entitled.

 

(iv)          Current Commitments.  The Company is not obligated to participate or conduct any future drilling obligations with respect to its assets and except with respect to the Creek Cottage West 1H well (API 23-157-22133) for which completion operations are currently on-going, does not have any authorization for expenditure relating to its assets to drill or rework wells or any other capital expenditures for which all activities anticipated in such authorization for expenditures or commitments have not been completed.

 

(v)           Litigation.  No suit, action, claim or proceeding, by any person or governmental authority is pending or, to such Assignor’s knowledge, threatened against the Company or its assets.

 

(vi)          Compliance with Law.  Neither the Company’s ownership of the assets, nor, to such Assignor’s knowledge, the operation of the Company’s assets is in violation of any applicable laws, licenses and permits, including any applicable environmental laws, licenses and permits, in any material respect.

 

(vii)         Labor and Employee Benefit Matters.  The Company has never had, and currently has no, employees.  The Company is not, and has never been, a party to or bound by the terms of any collective bargaining agreement or any other contract with any labor union or similar representative of employees.  The Company does not sponsor, maintain or contribute to and has no liability or obligation with respect to, and has never sponsored, maintained or contributed to or had any liability or obligation with

 

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respect to (1) any “employee benefit plan,” as such term is defined in Section 3(3) of ERISA, (2) any plan that would be an employee benefit plan if it was subject to ERISA, such as foreign plans and plans for directors, (3) any equity bonus, equity ownership, equity option, equity purchase, equity appreciation right, phantom equity or other equity plan (whether qualified or nonqualified), (4) any bonus, deferred compensation or incentive compensation plan, and (5) any personal, vacation, holiday and sick or other leave policy.

 

(viii)        Environmental Matters.  (1) The Company is and has been in compliance with Environmental Laws in all material respects and in possession of and in compliance with all material Environmental Permits, (2) the Company has not released into the environment any Hazardous Materials in violation of Environmental Laws or in a manner that could reasonably be expected to result in any remedial or corrective action obligations; and (3) there are no past or present circumstances, conditions, events or incidents that could reasonably be expected to form the basis of any action, suit, hearing, investigation, litigation, charge, complaint, demand or other proceeding, or arbitration against the Company by or before any Governmental Authority or arbitral body, or any notice of non-compliance or violation, request for information, consent order or consent agreement by any Governmental Authority  or person relating in any way to any Environmental Law or any Environmental Permit.

 

For the purposes of this subsection, “Environmental Laws” means any applicable federal, state or local law, statute, rule, regulation, ordinance or judicial or administrative decision or interpretation in effect as of the Execution Time relating to protection of the environment (including natural resources), occupational health or workplace safety, pollution or other environmental degradation or Hazardous Materials; “Environmental Permit” means any licenses, permits, certificates of authority, authorizations, approvals, registrations, franchises and similar consents required under any Environmental Law, which are granted or issued by any Governmental Authority or person, and are associated with or necessary to operate the Company or its assets; and “Hazardous Materials” means (A) any materials, substances or wastes in any form defined or regulated as a “hazardous waste,” “solid waste,” “toxic substance,” “pollutant” or words of similar import intended to define, list or classify substances by reason of deleterious properties under any Environmental Law, (B) any radioactive materials, asbestos, and polychlorinated biphenyls, or (C) petroleum and petroleum derivatives.

 

(c)           The representations and warranties contained in Section 7(a) and Section 7(b)(i) shall survive indefinitely and all other representation and warranties in this Agreement shall terminate six (6) months after the Effective Date. Upon the termination of a representation or warranty in accordance with the foregoing, such representation or warranty shall have no further force or effect for any purpose under this Agreement; provided that, there shall be no termination of any bona fide claim asserted pursuant to this Agreement with respect to such a representation or warranty prior to its expiration date.

 

8.             Records; Further Assurances.  Assignee agrees and acknowledges that Assignors shall be entitled to keep copies of all financial, tax and accounting records; provided, however, that copies of such records shall be confidential and used solely for Assignors’ internal purposes.

 

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From and after the Effective Date, the parties shall, and shall cause their Affiliates, as applicable to, execute, acknowledge and deliver from time to time all such further documents, and shall take such further actions as any party hereto may reasonably request and as may be necessary or appropriate to accomplish the transactions described in this Agreement.

 

9.             Successors and Assigns; Third Party Beneficiaries.  This Agreement is executed by, and shall be binding upon and inure to the benefit of, the parties hereto and each of their respective successors and assigns.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any other person.

 

10.          Governing Law.  This Agreement shall be construed in accordance with and governed by the internal laws of the State of Texas (without regard to principles of conflicts of laws).

 

11.          Counterparts.  This Agreement may be executed in one or more counterparts by some or all of the parties hereto, and (i) each such counterpart shall be considered an original, and all of which together shall constitute a single Agreement, (ii) the exchange of executed copies of this Agreement by facsimile or Portable Document Format (PDF) transmission shall constitute effective execution and delivery of this Agreement as to the parties for all purposes, and (iii) signatures of the parties transmitted by facsimile or Portable Document Format (PDF) shall be deemed to be their original signatures for all purposes.  The individuals signing this Agreement on behalf of the parties hereto represent and warrant that they are duly authorized to do so.

 

12.          Entire Agreement.  This Assignment and the Services Agreement contain the entire understanding of the Assignors and the Assignee with regard to the subject matter contained herein and supersedes all prior agreements, understandings and letters of intent between or among the Assignors and the Assignee with respect to the subject matter contained herein.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective authorized representatives as of the date above.

 

	
 
    	
ASSIGNORS:
    
	
 
    	
 
    
	
 
    	
HALCÓN   ENERGY PROPERTIES, INC.
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Floyd C. Wilson
    
	
 
    	
Name: 
    	
Floyd C. Wilson
    
	
 
    	
Title:
    	
Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HALCÓN   GULF STATES, LLC
    
	
 
    	
an Oklahoma limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Floyd C. Wilson
    
	
 
    	
Name: 
    	
Floyd C. Wilson
    
	
 
    	
Title:
    	
Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
APOLLO HK TMS INVESTMENT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By: APOLLO HK TMS INVESTMENT
    
	
 
    	
HOLDINGS GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph D. Glatt
    
	
 
    	
Name: 
    	
Joseph D. Glatt
    
	
 
    	
Title:
    	
Vice President and Secretary
    

 

8EXHIBIT
10.1

 

ASSIGNMENT
AGREEMENT

 

THIS
ASSIGNMENT AGREEMENT (this “Agreement”), dated as of October 3, 2016 (the “Closing Date”),
is entered by and among THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as a holder of Notes (“PICA”), PRUDENTIAL
RETIREMENT INSURANCE AND ANNUITY COMPANY, as a holder of Notes (together with PICA, “Sellers”), MTBC
Acquisition, Corp. (“Buyer”), and Medical Transcription Billing,
Corp. (“Parent”). Capitalized terms used but not defined herein shall have the meanings ascribed to
them in the Note Purchase Agreement.

 

WHEREAS,
MediGain, LLC (the “Company”) and the Noteholders are parties to that certain Note Purchase and Revolving Credit
Agreement, dated as of October 3, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Note
Purchase Agreement”);

 

WHEREAS,
pursuant to the Note Purchase Agreement, the Company has issued senior notes to the Sellers in the original principal amount of
$17,250,000 (the “Seller Notes”);

 

WHEREAS,
subject to and conditioned upon the terms of this Agreement, Buyer wishes to purchase from Sellers, and each Seller wishes to
sell, assign and transfer, all of its respective right, title, and interest in and to the Seller Notes and the other Transaction
Documents; and

 

WHEREAS,
concurrently with the execution and delivery of this Agreement, Buyer, the Company and Millennium Practice Management Associates,
LLC, a New Jersey limited liability company (“Millennium”), are entering into a Strict Foreclosure Agreement
(the “Strict Foreclosure Agreement”);

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Note
Sale. Subject to the terms and conditions hereof, Sellers hereby irrevocably sell, transfer and assign to Buyer, without
recourse, representation or warranty of any kind except as set forth herein, and Buyer hereby irrevocably purchases and
assumes from Sellers, all of Sellers’ right, title, obligations and interest in and with respect to the Seller Notes,
the Note Purchase Agreement, the Limited Guaranty Agreement, the Millennium Subordination Agreement and the other Transaction
Documents (including all of Sellers’ rights and remedies under the Transaction Documents) (the “Assigned
Interests”), for $7,000,000 (Seven Million Dollars), which shall be paid as follows: (a) $2,000,000 (Two Million
Dollars) at Closing in immediately available federal funds to an account designated by Sellers (the “Closing Date
Payment”); and (b) the balance of $5,000,000 (Five Million Dollars) shall be paid by Parent and Buyer within 90
days of Closing in immediately available federal funds to an account designated by Sellers (the “Post-Closing
Payment”). Parent and Buyer shall be jointly and severally liable for all obligations set forth herein.

 

2. The
Closing. The execution and delivery of this Agreement by the Buyer, Parent and Sellers, and the closing of the purchase,
assignment and assumption of the Assigned Interests pursuant to this Agreement (the “Closing”), took place
on or about, and effective as of, 12:00 a.m., Central Standard Time on the Closing Date.

 

3. Surviving Rights of Sellers Under Note Purchase Agreement. Notwithstanding anything herein to the contrary, Sellers shall
retain all indemnification rights and indemnification claims they may hold against the Company and/or Millennium under any
Transaction Document.

 

4. Deliveries
at Closing. 

 

a. Deliveries
by Sellers. At the Closing, Sellers shall deliver or cause to be delivered to Buyer:

 

i.
a Collateral Agency Assignment Agreement, in form and substance satisfactory to Buyer and Collateral Agent, duly executed by
the Collateral Agent, Sellers, and Buyer, pursuant to which,
effective as of the Closing, the Collateral Agent shall resign as Collateral Agent and Buyer shall be appointed as successor Collateral
Agent; and

 

    	 

    	 

    

 

ii.
the original of each of the Seller Notes (or an affidavit of lost note in form and substance reasonably satisfactory to
Buyer), duly endorsed without recourse to Sellers, and such other and further instruments of assignment and transfer as may
be required to fully vest in Buyer all of Sellers’ rights and privileges under the Transaction Documents.

 

b. Deliveries
by Buyer. At the Closing, Buyer shall deliver the Closing Date Payment to Sellers pursuant to the terms of Section
1.

 

5.
Assignment and Delegation. Effective as of the Closing: (a) Sellers hereby irrevocably assign and delegate to Buyer all
of their rights, remedies, duties and obligations under the Transaction Documents; and (b) Buyer, by its execution of this
Agreement, hereby purchases, assumes and accepts such assignment and delegation and agrees to be bound by the terms and
conditions of the Note Purchase Agreement and the other Transaction Documents.

 

6. Sellers’
Representations and Warranties. Sellers hereby represent and warrant as of the date hereof and as of the Closing Date as
follows:

 

a.
Neither the Sellers nor anyone acting on their behalf has offered the Seller Notes, the Assigned Interests, or any part
thereof by means of any general solicitation or general advertising and neither the Sellers nor anyone acting on their behalf
has taken any action that would subject the sale of Assigned Interests to Buyer to the registration provisions of Section 5
of the Securities Act of 1933, as amended (the “Act”). The Seller Notes have not been registered under the
Act or the securities or the securities laws of any state or other jurisdiction.

 

b.
As of the date hereof, the principal outstanding under the Seller Notes delivered pursuant to Section 2 above is not less
than $15,325,000 and, as of the date hereof, interest on the Seller Notes has been paid through on or about March 6,
2015.

 

c.
Each Seller has provided Buyer with a true, correct and complete copy of its Seller Notes, Note Purchase Agreement and all
material Transaction Documents.

 

d.
Each Seller is duly organized and validly existing under the laws of the jurisdiction of its respective incorporation and has
full right, power and authority to convey the Assigned Interests to Buyer. The execution, delivery, and performance by
Sellers of this Agreement and the documents to be delivered hereunder and the consummation of the transactions contemplated
hereby have been duly authorized by all requisite corporate action on the part of Sellers. This Agreement and the documents
to be delivered hereunder have been duly executed and delivered by Sellers, and (assuming due authorization, execution, and
delivery by Buyer) this Agreement and the documents to be delivered hereunder constitute legal, valid, and binding
obligations of Sellers, enforceable against Sellers in accordance with their respective terms.

 

e.
Except as provided in that certain Last-Out Participation Agreement dated as of September 29, 2015 by and among the Sellers,
the Collateral Agent, Prudential Capital Partners IV, L.P., Prudential Capital Partners Management Fund IV, L.P. and PCP
Capital Partners (Parallel Fund) IV, L.P., on the Closing Date: (i) Sellers are the sole legal and beneficial owners of the
Assigned Interests and have not assigned, pledged, hypothecated, encumbered, or transferred any of such Assigned Interests,
in whole or in part, except as explicitly disclosed herein; and (ii) Sellers own the Seller Notes free and clear of all
mortgages, liens, loans, and encumbrances, including all encumbrances and liens that arise in the ordinary course of business
that might impair Sellers’ ownership or use of such property or assets.

 

f.
Due to the occurrence and continuation of one or more Events of Default, no Seller is obligated to extend any further credit
to the Company pursuant to the Note Purchase Agreement or the Seller Notes.

 

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g.
No consent, approval, waiver, or authorization is required to be obtained by Sellers from any person or entity (including any
governmental authority) in connection with the execution, delivery, and performance by Sellers of this Agreement and the
consummation of the transactions contemplated hereby.

 

h.
To Sellers’ Knowledge (as defined below), there is no material inaccuracy in the representations made by the Company in
Section 17(b)(ix) and (xviii) of the Strict Foreclosure Agreement. As used herein, the term “Sellers’
Knowledge” means the actual knowledge of Paul Procyk.

 

i.
Sellers represent that no broker, finder, or investment banker is entitled to any brokerage, finder’s or other fee or
commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of
Sellers; provided, however, that out of an abundance of caution, the parties acknowledge that certain fees and
expenses may be payable by the Company to TKO Miller. Sellers hereby agree that in the event any claim is made for a
broker’s commission as a result of a Seller’s breach of the representation contained herein, Sellers shall hold
Buyer and its successors and assigns harmless, and shall indemnify such parties, from and against any and all liabilities
arising out of such claims, including reasonable attorneys’ fees and court costs. This paragraph shall survive the
Closing.

 

7. Buyer
Representations and Warranties. Buyer and Parent hereby represent and warrant to each Seller as follows:

 

a.
Buyer and Parent acknowledge that the Seller Notes have not been registered under the Act or the securities or the securities
laws of any state or other jurisdiction. The Seller Notes may be resold only if registered pursuant to the provisions of the
Act and applicable state securities laws or if an exemption from such registration is available. Neither the Company nor
either of the Sellers is required to register the resale of the Seller Notes by Buyer. Any transfer of the Seller Notes must
comply with the Transaction Documents.

 

b.
Buyer is acquiring the Assigned Interests for its own account, and not with a view to distribution thereof, provided that the
disposition of Buyer’s property shall at all times be and remain within its control. Buyer is not acting as an agent or
broker in purchasing the Assigned Interests from Sellers under this Agreement. Buyer will comply with all applicable federal
and state securities laws in connection with any subsequent resale of the Assigned Interests or transfer of the Seller
Notes.

 

c.
Buyer and Parent are sophisticated investors that are “accredited investors” within the meaning of Rule 501 under
the Act. Buyer is not an affiliate of the Company, as defined in Rule 405 under the Act.

 

d.
Buyer and Parent have conducted, to the extent each of them deemed necessary, an independent investigation of all such
matters, and have had the opportunity to receive such information and documents as, in each of their judgment, are necessary
for it to make an informed investment decision with respect to its purchase of the Assigned Interests. Neither Buyer nor
Parent have relied upon either of the Sellers for any investigation or assessment to evaluate Buyer’s purchase of the
Assigned Interests. Buyer and Parent understand that Sellers have rights to receive and have received information from the
Company and Millennium under the Note Purchase Agreement and, accordingly, Sellers may have material information concerning
the Company and the Assigned Interests that has not been disclosed publicly or to Buyer or Parent (collectively, the
“Excluded Information”). Buyer and Parent are completing the purchase of the Assigned Interests
contemplated by this Agreement with full knowledge that Sellers may be aware of material and non-public information regarding
the Company and Millennium. Each of Buyer and Parent has received all information that it believes is necessary or
appropriate in connection with the sale of the Assigned Interests. Buyer
and Parent are both informed and sophisticated parties regularly involved in the purchase and sale of securities and have engaged,
to the extent they deem appropriate, expert advisors experienced in the evaluation of transactions of the type contemplated hereby.
Buyer and Parent acknowledge that neither Buyer nor Parent have relied upon any express or implied representations or warranties
of any kind and nature whatsoever made by or on behalf of the Company or Sellers, whether or not any such representations, warranties,
or statements were made in writing or orally, except as expressly set forth by Sellers in this Agreement.

 

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e.
Buyer and Parent are duly organized and validly existing under the laws of the jurisdiction of their incorporation and Buyer
has full right, power and authority to purchase the Assigned Interests from Seller. The execution, delivery, and performance
by Buyer and Parent of this Agreement and the documents to be delivered hereunder and the consummation of the transactions
contemplated hereby have been duly authorized by all requisite corporate action on the part of Buyer and Parent. This
Agreement and the documents to be delivered hereunder have been duly executed and delivered by Buyer and Parent, and
(assuming due authorization, execution, and delivery by Sellers) this Agreement and the documents to be delivered hereunder
constitute legal, valid, and binding obligations of Buyer and Parent, enforceable against Buyer and Parent in accordance with
their respective terms.

 

f.
Except as specifically set forth in this Agreement, no Seller has made any representations, warranties or agreements, express
or implied, of any kind with respect to Buyer’s purchase of the Assigned Interests. Other than the obligations that are
specifically set forth in this Agreement, neither Seller has any obligation to Buyer or Parent, express or implied, including
fiduciary obligations.

 

g.
Buyer and Parent have either received from Seller or otherwise obtained copies of the Transaction Documents, have received
all other information, if any, that they have requested from either Seller and have had an ample opportunity to review such
Transaction Documents and other information. Buyer is acquiring the Assigned Interests in accordance and compliance with the
terms of the Transaction Documents. Buyer and Parent understand that the terms of the Note Purchase Agreement and the terms
of each waiver, forbearance, amendment and agreement made by Sellers shall be binding upon Buyer as holder of the Assigned
Interests.

 

h.
Disclosure of any information concerning the Company or the Transaction Documents made by either Seller to Buyer or Parent is
made subject to any confidentiality provisions of the Transaction Documents, and Buyer covenants and agrees to comply with
such confidentiality provisions.

 

i.
Buyer and Parent acknowledge that, except as set forth in Section 6(h) of this Agreement, no Seller makes any
representation or warranty whatsoever concerning the accuracy, adequacy, completeness or truth of the statements made by the
Company or any of the other parties to the Transaction Documents, and that no Seller shall have any liability for any
misstatement of a material fact contained in the Transaction Documents or for the omission therefrom of any material fact
required to be stated therein in order to make the statements therein not misleading.

 

j.
Buyer and Parent represent that no broker, finder, or investment banker is entitled to any brokerage, finder’s or other
fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on
behalf of Buyer or Parent. Buyer and Parent hereby agree that in the event any claim is made for a broker’s commission
as a result of Buyer’s or Parent’s breach of the representation contained herein, Buyer and Parent shall hold
Sellers and their successors and assigns harmless, and shall indemnify such parties, from and against any and all liabilities
arising out of such claims, including reasonable attorneys’ fees. This paragraph shall survive the Closing.

 

k.
Parent represents and acknowledges that if Parent or Buyer fail to pay the full amount of the Post-Closing Payment within 90
days of Closing, for any reason, then information regarding this failure will constitute material information that Parent
will be required to disclose to the public, promptly following
the occurrence of any such failure (and in any event no later than four (4) business days following such failure), and Parent
hereby agrees that it will make such disclosure.

 

8.
Further Assurances. The Sellers, at Buyer’s sole cost and expense, shall execute and deliver all further documents
or instruments reasonably requested by Buyer in order to effect the intent and purposes of this Agreement and obtain the full
benefit of this Agreement.

 

    	4

    	 

    

 

9. Obligations
Absolute. Buyer’s and Parent’s obligation to pay the Post-Closing Payment is absolute, irrevocable, and
unconditional and shall not be subject to any setoff, recoupment, claim, counterclaim or defense. Buyer and Parent hereby
waive any such defenses (including any defenses based upon an alleged breach of this Agreement or misrepresentation by any
Seller). Buyer and Parent acknowledge that Parent, as the sole equity holder of Buyer, will derive substantial benefit from
the transactions contemplated in this Agreement.

 

10. Miscellaneous.

 

a.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but which together
shall constitute one and the same instrument. A signed copy of this Agreement delivered by facsimile, email, or other means
of electronic transmission shall have the same legal effect as an original signed copy of this Agreement.

 

b.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
THE CONFLICTS OF LAWS PROVISIONS THEREOF AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF BUYER, PARENT AND SELLERS AND
THEIR RESPECTIVE SUCCESSORS AND ASSIGNS.

 

c.
THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE SOUTHERN DISTRICT
OF THE STATE OF NEW YORK WILL HAVE SOLE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES, WHETHER IN LAW
OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY THE TRANSACTIONS CONTEMPLATED HEREBY.

 

d.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATED TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

 

e.
This Agreement constitutes the complete agreement of the parties with respect to the subject matter hereof, and supersedes
all prior communications and agreements of the parties with respect thereto, all of which have become merged and integrated
into this Agreement. This Agreement may not be amended, modified or waived, except by a writing executed by each of the
parties hereto.

 

f.
Unless otherwise set forth herein, any notice, request, instruction or other document to be given hereunder by any party to
the other parties shall be in writing and shall be deemed duly given (i) upon delivery, when delivered personally, (ii) one
(1) business day after being sent by overnight courier or when sent by facsimile transmission (with a confirming copy sent by
overnight courier), and (iii) three (3) days after being sent by registered or certified mail, postage prepaid, as
follows:

 

    	5

    	 

    

 

	 	if
    to the Sellers, to:

 

	 	c/o
    The Prudential Insurance Company of America 
	 	Corporate
    Projects and Workouts
	 	Attn:
    Vice President 
	 	655
    Broad Street, 16th Floor 
	 	Newark,
    NJ 07102 

 

	 	with
    a copy (which shall not constitute notice) to

 

	 	King
    & Spalding LLP
	 	Attn:
    Sarah R. Borders
	 	1180
    Peachtree Street NE
	 	Atlanta,
    GA 30309

 

	 	if
    to Buyer or Parent, to:

 

	 	Medical
    Transcription Billing, Corp.
	 	Attn:
    Shruti Patel
	 	7
    Clyde Road
	 	Somerset,
    NJ 08873

 

    	6

    	 

    

 

	 	with
    a copy to (which shall not constitute notice):

 

	 	Bryan
    Cave LLP
	 	JP
    Morgan Chase Tower
	 	2200
    Ross Avenue, Suite 3300
	 	Dallas,
    TX 75201-7965
	 	Attn:
    Keith Aurzada, Esq.

 

g.
Except as otherwise set forth expressly herein, all costs and expenses incurred in connection with this Agreement or the
transactions contemplated herein shall be paid by the party incurring such cost or expense.

 

h.
This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

i.
No party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the written
consent of the other Party.

 

j.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity,
illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation.”

 

k.
In the event a party to this Agreement brings an action or suit against any other party to this Agreement by reason of a
breach of any provision of this Agreement (including any covenant or any inaccuracy in any representation or warranty) on the
part of such other party, the prevailing party in such action or dispute, whether by final judgment or out of court
settlement, shall be entitled to have and recover from the other party all costs and expenses of suit, including reasonable
attorneys’ fees and costs.

 

l.
Neither Buyer, Parent, nor any Seller shall make any public announcement concerning this Agreement or any other matters
relating to the transactions contemplated herein; provided, however, that: (i) Buyer or any Seller may, after
consultation with the other, disclose any information to the extent it is advised by its outside legal counsel that such
disclosure is required under applicable law or by regulatory authority; and (ii) any Seller may disclose this Agreement and
discuss the transactions contemplated hereby with any holder of notes issued by the Company. Except as permitted by the
preceding sentence, under no circumstances will Buyer, Parent, or any Seller (or any of their respective representatives)
discuss or disclose any non-public information regarding the existence or terms of this Agreement with or to any other person
or entity other than their representatives, including Buyer’s affiliates, who have a need to know such information
solely for purposes of assisting such party in regard to the transactions contemplated herein.

 

    	7

    	 

    

 

m.
Notwithstanding anything herein to the contrary, the parties acknowledge and agree that: (i) neither Seller is a party to the
Strict Foreclosure Agreement; (ii) this Agreement and the Strict Foreclosure Agreement shall be deemed to be separate and
distinct agreements, and the transactions contemplated by such agreements shall be deemed to be separate and distinct
transactions; and (iii) if any provision or transaction contemplated by or related to the Strict Foreclosure Agreement is
subsequently invalidated, declared to be fraudulent or preferential, set aside, or modified in any other way, this Agreement
shall remain in full force and effect and the validity and enforceability of the provisions of this Agreement (and the
transactions contemplated hereby) shall not in any way be impaired, invalidated, avoided, set aside, or otherwise
modified

 

n.
Buyer and Parent, on behalf of themselves and each of their subsidiaries and other affiliates and their respective officers,
directors, managers, shareholders, members, partners, successors, and assigns (collectively, “Releasors”),
hereby releases, waives, and forever discharges each of the Sellers and their respective officers, directors, managers,
shareholders, members, and affiliates and their respective heirs, beneficiaries, agents, advisors, representatives,
successors, and assigns (collectively, “Releasees”) of and from any and all actions, causes of action,
suits, losses, liabilities, obligations, costs, expenses, rights, agreements, promises, damages, judgments, claims, and
demands, of every kind and nature whatsoever, whether now known or unknown, foreseen or unforeseen, matured or unmatured,
suspected or unsuspected, in law, admiralty, or equity, which any of such Releasors ever had, now have, or hereafter can,
shall, or may have against any of such Releasees for, upon, or by reason of any matter, cause, or thing whatsoever arising
out of or relating to the failure of any Seller, the Company or Millennium to disclose to Buyer or Parent the Excluded
Information or the Sellers’ sale of the Assigned Interests; provided, however, that the foregoing release shall not
release the Sellers from any obligations, representations, or warranties expressly set forth in this Agreement.

 

[Signature
Pages Follow]

 

    	8

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed as of the date first above written.

 

	 	SELLERS:
	 	 
	 	The
    Prudential Insurance Company of America, as
    a Noteholder
	 	 	 
	 	By:	/s/
    Paul Procyk
	 		Paul
Procyk
	 		Vice
President

 

	 	Prudential
    Retirement Insurance and Annuity Company, as
    a Noteholder
	 	 	 
	 	By:	PGIM,
    Inc., as investment manager
	 	 	 
	 	By:	/s/
    Paul Procyk 
	 		Paul
    Procyk
	 		Vice
President

 

Signature Page to Assignment Agreement

 

    	 

    	 		 

    

 

	 	BUYER:
	 	 	 
	 	MTBC
    Acquisition, Corp.
	 	 	 
	 	By:
    	/s/
    Mahmud U. Haq 
	 	Name:
    	Mahmud
    U. Haq
	 	Title:
    	CEO 
	 	 	 
	 	PARENT:
	 	 	 
	 	MEDICAL
    TRANSCRIPTION BILLING, CORP.
	 	 	 
	 	By:
    	/s/
    Stephen A. Snyder 
	 	Name:
    	Stephen
    A. Snyder
	 	Title:	President

 

Signature Page to Assignment Agreement

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