Document:

Agreement and Plan of Merger

  
 Exhibit 10.1

 AGREEMENT AND PLAN OF MERGER 
 BY AND AMONG 
 SPRYANCE, INC. 

THE PRINCIPAL STOCKHOLDERS LISTED ON THE SIGNATURE PAGES 
 HERETO, 
 THE STOCKHOLDERS’ REPRESENTATIVE, 

TRANSCEND SERVICES, INC. 
 AND 
 TRANSCEND ACQUISITION CORPORATION 

OCTOBER 21, 2010 

  
 TABLE OF CONTENTS

  

							
	 	 	 	  	Page	 
		
	 Article I DEFINITIONS
	  	 	1	  
		
	Article II THE MERGER	  	 	12	  
	 2.1
	 	 The Merger
	  	 	12	  
	 2.2
	 	 Certificate of Merger
	  	 	12	  
	 2.3
	 	 Certificate of Incorporation; Bylaws
	  	 	13	  
	 2.4
	 	 Directors and Officers
	  	 	13	  
	 2.5
	 	 Merger Consideration; Effect on Stock
	  	 	13	  
	 2.6
	 	 Effect on Restricted Stock, Options and Warrants
	  	 	14	  
	 2.7
	 	 Dissenting Shares
	  	 	15	  
	 2.8
	 	 The Closing Date
	  	 	15	  
	 2.9
	 	 The Closing
	  	 	15	  
	 2.10
	 	 Payments
	  	 	16	  
		
	 Article III CONDITIONS TO CLOSING
	  	 	18	  
	 3.1
	 	 Conditions to the Obligations of the Buyer and Merger Sub
	  	 	18	  
	 3.2
	 	 Conditions to the Obligations of the Company and Principal Stockholders
	  	 	20	  
		
	 Article IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	 	22	  
	 4.1
	 	 Organization and Corporate Power
	  	 	22	  
	 4.2
	 	 Authorization of Transaction
	  	 	22	  
	 4.3
	 	 Capitalization
	  	 	23	  
	 4.4
	 	 Subsidiaries; Investments
	  	 	23	  
	 4.5
	 	 Absence of Conflicts
	  	 	23	  
	 4.6
	 	 Financial Statements
	  	 	24	  
	 4.7
	 	 Absence of Undisclosed Liabilities
	  	 	24	  
	 4.8
	 	 Absence of Certain Developments
	  	 	25	  
	 4.9
	 	 Title to Assets
	  	 	26	  
	 4.10
	 	 Taxes
	  	 	27	  
	 4.11
	 	 Contracts and Commitments
	  	 	29	  
	 4.12
	 	 Intellectual Property
	  	 	31	  
	 4.13
	 	 Brokerage
	  	 	36	  
	 4.14
	 	 Governmental Licenses and Permits
	  	 	36	  
	 4.15
	 	 Employment and Labor Matters
	  	 	37	  
	 4.16
	 	 Insurance
	  	 	40	  
	 4.17
	 	 Affiliate Transactions
	  	 	40	  
	 4.18
	 	 Environmental Matters
	  	 	40	  
	 4.19
	 	 Safety Matters
	  	 	41	  
	 4.20
	 	 Privacy; Data Protection
	  	 	41	  
	 4.21
	 	 International Transactions
	  	 	42	  
	 4.22
	 	 Litigation and Compliance with Law
	  	 	43	  
	 4.23
	 	 Books and Records
	  	 	43	  

  
 i 

  

							
	 4.24
	 	 Bank Accounts, Letters of Credit and Powers of Attorney
	  	 	43	  
	 4.25
	 	 Customers and Suppliers
	  	 	44	  
	 4.26
	 	 Warranties to Customers
	  	 	44	  
	 4.27
	 	 Internal Controls
	  	 	45	  
	 4.28
	 	 Accounts Receivable
	  	 	45	  
	 4.29
	 	 Accuracy of Information Furnished by the Company
	  	 	45	  
		
	 Article V REPRESENTATIONS AND WARRANTIES OF THE PRINCIPAL STOCKHOLDERS
	  	 	46	  
	 5.1
	 	 Organization and Power
	  	 	46	  
	 5.2
	 	 Authorization
	  	 	46	  
	 5.3
	 	 Absence of Conflicts
	  	 	46	  
	 5.4
	 	 Title
	  	 	47	  
	 5.5
	 	 Litigation
	  	 	47	  
		
	 Article VI REPRESENTATIONS AND WARRANTIES OF THE BUYER AND MERGER SUB
	  	 	47	  
	 6.1
	 	 Organization and Power
	  	 	47	  
	 6.2
	 	 Authorization of Transaction
	  	 	47	  
	 6.3
	 	 Absence of Conflicts
	  	 	48	  
	 6.4
	 	 Litigation
	  	 	48	  
	 6.5
	 	 Brokers’ Fees
	  	 	48	  
		
	 Article VII COVENANTS OF THE PARTIES
	  	 	48	  
	 7.1
	 	 Access and Investigation
	  	 	48	  
	 7.2
	 	 Operation of the Company’s Business
	  	 	48	  
	 7.3
	 	 Required Approvals.
	  	 	50	  
	 7.4
	 	 Notification
	  	 	50	  
	 7.5
	 	 No Negotiation
	  	 	51	  
	 7.6
	 	 Release of Liens
	  	 	51	  
	 7.7
	 	 Intentionally omitted
	  	 	51	  
	 7.8
	 	 Stockholder Approval
	  	 	51	  
	 7.9
	 	 Certain Tax Matters
	  	 	52	  
	 7.10
	 	 New Employment Arrangements
	  	 	56	  
	 7.11
	 	 Payment of Personnel Transaction Costs
	  	 	56	  
		
	 Article VIII TERMINATION
	  	 	57	  
	 8.1
	 	 Termination Events
	  	 	57	  
	 8.2
	 	 Effect of Termination
	  	 	57	  
		
	 Article IX SURVIVAL, INDEMNIFICATION AND RELATED MATTERS
	  	 	57	  
	 9.1
	 	 Survival
	  	 	57	  
	 9.2
	 	 Indemnification
	  	 	58	  
	 9.3
	 	 Manner of Payment
	  	 	64	  
		
	 Article X ADDITIONAL AGREEMENTS
	  	 	64	  
	 10.1
	 	 Press Releases and Announcements
	  	 	64	  

  
 ii 

  

							
	 10.2
	 	 Further Assurances
	  	 	64	  
	 10.3
	 	 Expenses
	  	 	64	  
	 10.4
	 	 Stockholders’ Representative
	  	 	64	  
		
	Article XI MISCELLANEOUS	  	 	65	  
	 11.1
	 	 Amendment
	  	 	65	  
	 11.2
	 	 Waiver
	  	 	65	  
	 11.3
	 	 Notices
	  	 	66	  
	 11.4
	 	 Binding Agreement; Assignment
	  	 	66	  
	 11.5
	 	 Severability
	  	 	66	  
	 11.6
	 	 No Strict Construction
	  	 	66	  
	 11.7
	 	 Captions
	  	 	67	  
	 11.8
	 	 Entire Agreement
	  	 	67	  
	 11.9
	 	 Counterparts
	  	 	67	  
	 11.10
	 	 Governing Law; Venue
	  	 	67	  
	 11.11
	 	 Waiver of Jury Trial
	  	 	67	  
	 11.12
	 	 Parties in Interest
	  	 	67	  
	 11.13
	 	 Exhibits and Schedules
	  	 	68	  
	 11.14
	 	 Certain Interpretive Matters and Definitions
	  	 	68	  

  

			
	LIST OF EXHIBITS	  	
		
	Exhibit A	  	Form of Escrow Agreement
	Exhibit B	  	Form of Payment Agent Agreement
	Exhibit C	  	Form of Transmittal Letter
	Exhibit D	  	Form of Noncompetition Agreement
	Exhibit E	  	Form of Legal Opinion

  
 iii

  
 AGREEMENT AND
PLAN OF MERGER 
 This AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made as of
October 21, 2010, by and among Spryance, Inc., a Delaware corporation (the “Company”); the stockholders of the Company listed on the signatures pages hereto (the “Principal Stockholders”); Beecken
Petty O’Keefe & Company, LLC, a Delaware limited liability company, as the Stockholders’ Representative; Transcend Services, Inc., a Delaware corporation (the “Buyer”); and Transcend Acquisition
Corporation, a Delaware corporation (the “Merger Sub”). The Company, the Principal Stockholders, the Stockholders’ Representative, the Buyer and the Merger Sub are each referred to herein as a
“Party” and collectively as the “Parties.” 
 STATEMENT OF PURPOSE

 A. The Buyer, the Merger Sub and the Company wish to effect a business combination through a merger of the Merger Sub
with and into the Company on the terms and conditions set forth in this Agreement and in accordance with the Delaware General Corporation Law (the “DGCL”). 

B. The respective Boards of Directors of each of the Buyer, the Merger Sub and the Company have (i) unanimously approved this
Agreement, the Merger and the other transactions contemplated by this Agreement and (ii) determined that this Agreement, the Merger and the other transactions contemplated by this Agreement are advisable and in the best interest of their
corporation and their corporation’s stockholders. 
 C. The requisite Stockholders of the Company have duly approved and
adopted this Agreement, the Merger and the Transaction in accordance with the DGCL. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the mutual promises made herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 
 ARTICLE I

 DEFINITIONS 
 “Action” means any claims, charges, arbitrations, grievances, actions, suits, proceedings or investigations. 

“Affidavit” has the meaning set forth in Section 2.10(c). 

“Affiliate” means and includes, with respect to a specified Person, any other Person that directly or indirectly
controls, is controlled by or is under common control with such specified Person, where “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such specified
Person, whether through the ownership of voting securities, contract or otherwise. 

  
 “Affiliated
Group” means an affiliated group as defined in Section 1504 of the Code (or any similar combined, consolidated or unitary group defined under any state, local or foreign income Tax law). 

“Aggregate Exercise Price” means the aggregate of (i) the exercise price of the Options issued and
outstanding immediately prior to the cancellation of such Options pursuant to Section 2.6 hereof; and (ii) the exercise price of the Warrants issued and outstanding immediately prior to the the cancellation of such Warrants pursuant to
Section 2.6 hereof; 
 “Agreement” has the meaning set forth in the introductory paragraph hereof.

 “Ancillary Agreements” means the other agreements attached (or forms of which are attached) as
exhibits to this Agreement, and any document, certificate or instrument delivered pursuant hereto or thereto. 

“Basket” has the meaning set forth in Section 9.2(e)(iii). 

“Business Day” means any day other than Saturday, Sunday or any other day on which banks in Atlanta, Georgia or
New York, New York are closed. 
 “Buyer” has the meaning set forth in the introductory paragraph
hereof. 
 “Buyer Indemnitees” has the meaning set forth in Section 9.2(a)(iii). 

“Cap Amount” means an amount equal to $1,000,000. For the avoidance of doubt, the Cap Amount
shall be reduced on a dollar for dollar basis by the amount of any disbursements from the Escrow Fund to the Company and any other Buyer Indemnitees, including, without limitation, any Losses paid under Section 7.9(b) (but not under 7.9(a)) and
any Losses paid under Section 9.2(a)(i)(G). 
 “Capitalized Lease Indebtedness” means the
Indebtedness of the Company and its Subsidiaries as of the Effective Time which constitutes capitalized leases as defined by GAAP. 
 “Cash” means the amount of cash and cash equivalents (determined in accordance with GAAP). 
 “Certificate of Incorporation” means the Company’s Fourth Amended and Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on
November 8, 2006, as amended on November 29, 2007. 
 “Certificate of Merger” has the meaning
set forth in Section 2.2. 
 “Certificates” means, collectively, the Common Certificates and the
Preferred Certificates. 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. § 9601, et seq.), as amended, and all rules, regulations and standards issued thereunder. 

  
 2 

  

“Closing” has the meaning set forth in Section 2.8. 

“Closing Date” has the meaning set forth in Section 2.8. 

“Closing Deadline” has the meaning set forth in Section 8.1(a). 

“COBRA” has the meaning set forth in Section 4.15(j). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Common Certificate” shall mean a stock certificate which immediately prior to the Effective Time represented any
shares of Common Stock. 
 “Company Intellectual Property” means any and all Technology and any and all
Intellectual Property Rights associated therewith, including Company Registered Intellectual Property Rights, that is or are owned (in whole or in part) by, purported to be owned by, exclusively licensed to or otherwise exclusively controlled by, or
purported to be exclusively licensed to or otherwise exclusively controlled by, the Company and/or its Subsidiaries. 

“Company Registered Intellectual Property Rights” means all of the Registered Intellectual Property owned by,
filed in the name of, or applied for the Company and its Subsidiaries. 
 “Company Software” has the
meaning set forth in Section 4.12(u) of this Agreement. 
 “Common Stock” means the shares of the
Company’s Common Stock, par value $0.01 per share. For the avoidance of doubt, “Common Stock” includes Restricted Stock. 
 “Company” has the meaning set forth in the introductory paragraph hereof. 
 “Company Bylaws” means the Second Amended and Restated Bylaws of the Company, effective as of March 11, 2005. 

“Company Stock” means Common Stock and Preferred Stock. 

“Confidential Information” means any confidential information with respect to the Company’s business,
including methods of operation, pending or completed acquisitions of any company, division or other business unit, prices, fees, costs, plans, designs, technology, inventions, trade secrets, know-how, software, marketing methods, policies, plans,
personnel, customers, suppliers, competitors, markets or other specialized information or proprietary matters. 

“Confidentiality Agreement” means that certain confidentiality agreement between the Buyer and the Company, dated
June 22, 2010. 
 “contract” means any contract, lease, license, indenture, agreement, commitment
or other legally binding arrangement, whether written or oral. 

  
 3 

  

“Copyrights” has the meaning set forth within the definition of Intellectual Property Right(s) herein. 

“Customer Loss Liquidated Damages” means an amount equal to 25% of the annualized revenue for a Terminated
Customer calculated as the total revenue for the three months prior to the date of the termination notice. 

“Designated Representations” has the meaning set forth in Section 9.1. 

“DGCL” has the meaning set forth in the Statement of Purpose. 

“Dispute Period” means the period ending thirty (30) days following receipt by an Indemnifying Party of a
notice from an Indemnified Party pursuant to Section 9.2(c)(i). 
 “Dissenting Shares” has the
meaning set forth in Section 2.7. 
 “Domain Names” has the meaning set forth within the definition
of Intellectual Property Right(s) herein. 
 “Effective Time” has the meaning set forth in
Section 2.2. 
 “Environmental Liabilities” means any obligations or liabilities that are
(a) related to environmental issues, or (b) based upon or related to Pollutants or any provision of Environmental Requirements. The term “Environmental Liabilities” includes: (A) fines, penalties, judgments, awards,
settlements, losses, damages, costs, fees (including reasonable attorneys’ and consultants’ fees), expenses and disbursements; (B) defense and other responses to any administrative or judicial Proceeding (including notices, claims,
complaints, Orders, suits and other assertions of liability); and (C) financial responsibility for cleanup costs and injunctive relief, including any corrective or remedial actions, and natural resource damages or remedial measures. 

“Environmental Requirements” means all Legal Requirements concerning pollution or protection of the environment,
including all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, distribution, labeling, testing, processing, Release, threatened Release, control, or cleanup of any Pollutants, as such of the
foregoing are in effect, prior to or on the Closing Date. 
 “ERISA” has the meaning set forth in
Section 4.15(f). 
 “Escrow Agent” means JPMorgan Chase Bank, National Association. 

“Escrow Agreement” means the Escrow Agreement dated as of the Closing Date by and among the Buyer, the Escrow
Agent and the Stockholders’ Representative, in substantially the form of Exhibit A attached hereto. 

“Escrow Amount” means $1,000,000.00. 
 “Escrow Fund” has the meaning set forth in Section 2.10(b)(i). 

  
 4 

  

“Executives” means each of Vince Estrada, Dennis Paulik, Singh Rawat, and S. Prasanna. 

“Existing Debt” means all Indebtedness of the Company and its Subsidiaries. 

“Existing Debt Payoff Amount” means the amount necessary to fully discharge the Existing Debt outstanding as of
the Effective Time, other than the Existing Debt identified on Schedule 3.1(f)(vii), including any fees and expenses due in connection with such discharge. 
 “Financial Statements” has the meaning set forth in Section 4.6. 
 “Foreign Subsidiary Cash” means the amount of cash and cash equivalents (determined in accordance with GAAP) held by the Company’s non-U.S. Subsidiaries. 

“GAAP” means United States generally accepted accounting principles, consistently applied. 

“Governmental Authority” means any domestic or foreign government, including any federal, provincial, state,
territorial or municipal government, and any government agency, court, tribunal, commission or other instrumentality or authority exercising or purporting to exercise executive, legislative, judicial, regulatory or administrative functions of, or
pertaining to, government, and any official of any of the foregoing. 
 “HIPAA” means the Health
Insurance Portability and Accountability Act of 1996, as amended, and the rules and regulations thereunder. 

“HITECH” means the Health Information Technology for Economic and Clinical Health Act, enacted as part of the
American Recovery and Reinvestment Act of 2009, as amended, and the rules and regulations thereunder. 

“Holder” means a holder of Company Stock, Options or Warrants. 

“Indebtedness” means, with respect to the Company and its Subsidiaries, without duplication,
(i) any indebtedness for borrowed money, whether short term or long term, or for the deferred purchase price of property or services, (ii) any Capitalized Lease Indebtedness or other indebtedness arising under conditional sales contracts
and other similar title retention instruments, (iii) all liability in respect of outstanding letters of credit, acceptances and similar obligations, (iv) all interest, fees, prepayment premiums, penalties, breakage costs and other expenses
owed with respect to indebtedness described in the foregoing clauses (i) through (iv), and (v) all indebtedness referred to in the foregoing clauses (i) through (iv) of any Person other than the Company that is directly or
indirectly guaranteed by the Company or any of its Subsidiaries. 
 “Indemnified Party” has the meaning
set forth in Section 9.2(c)(i). 
 “Indemnifying Party” has the meaning set forth in
Section 9.2(c)(i). 

  
 5 

  

“Intellectual Property Right(s)” means any or all of the following and all rights in, arising out of, or
associated therewith: (i) all United States and foreign patents and utility models, including utility patents, design patents, and all registrations and applications therefore and all reissues, divisionals, re-examinations, corrections,
renewals, extensions, provisionals, continuations and continuations in-part thereof, and other derivatives and certificates associated therewith, and equivalent or similar rights anywhere in the world in inventions and discoveries, including,
without limitation, invention disclosures (“Patents”); (ii) all trade secrets, research records, processes, procedures, manufacturing formulae, technical know-how, technology, blue prints, designs, plans, inventions and
confidential or proprietary information throughout the world (“Trade Secrets”); (iii) all copyrights, copyright registrations and applications therefore and all other rights corresponding thereto throughout the world
(“Copyrights”); (iv) all mask works, mask work registrations and applications therefore, and any equivalent or similar rights (“Mask Works”); (v) all industrial designs and any registrations and
applications therefore throughout the world; (vi) all rights in domain names and applications and registrations therefore (“Domain Names”); (vii) all trade names, trade dress, logos or other corporate designations, common
law trademarks and service marks, trademark and service mark registrations and applications therefore and all goodwill associated therewith throughout the world (“Trademarks”); and (viii) any similar, corresponding or
equivalent rights to any of the foregoing anywhere in the world, including, without limitation, moral rights and publicity rights. 
 “IRS” has the meaning set forth in Section 4.15(g). 

“Knowledge” means with respect to an individual, that such individual will be deemed to have knowledge of a
particular fact or other matter if that individual is actually aware of that fact or matter, following reasonable inquiry. As applied to the Company and its Subsidiaries in this Agreement, “Knowledge” means that any of the Executives is
actually aware of a particular fact or other matter, following reasonable inquiry. As applied to the Buyer or the Merger Sub in this Agreement, “Knowledge” means that Lance Cornell is actually aware of a particular fact or other matter,
following reasonable inquiry. 
 “Law” means any statute, law (including common law), constitution,
treaty, ordinance, code, order, decree, judgment, rule, regulation and any other binding requirement or determination of any Governmental Authority. 
 “Leased Premises” means all leasehold or subleasehold estates and other rights to use or occupy any land, buildings, structures, improvements, fixtures or other interest in real
property held by the Company or any Subsidiary. 
 “Leases” means all leases, subleases, or other
contracts pursuant to which the Company or any of its Subsidiaries holds any Leased Premises. 
 “Legal
Requirement” means and includes any federal, state, provincial, local, municipal, foreign, international, multinational, judicial Orders and determinations or other administrative Orders and determinations, constitution, law, ordinance,
regulation or similar provision having the force or effect of law, rule or principle of common law, regulation, statute, or treaty, as the same are in effect or enacted on or prior to the Closing Date. 

  
 6 

  
 “Letter of
Transmittal” means a letter of transmittal in the form attached hereto as Exhibit C. 

“Liabilities” means liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted,
known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise. 

“Licenses” has the meaning set forth in Section 4.14(a). 

“Lien” means any security interest, pledge, bailment (in the nature of a pledge or for purposes of security),
mortgage, deed of trust, the grant of a power to confess judgment, conditional sales and title retention agreement (including any lease in the nature thereof), charge, encumbrance or other similar arrangement or interest in real or personal
property. 
 “Loss” has the meaning set forth in Section 9.2(a)(i). 

“Mask Works” has the meaning set forth within the definition of Intellectual Property Right(s) herein.

 “Material Adverse Change” means, any effect or change that would be (or could reasonably be expected
to be) materially adverse to the business, assets, condition (financial or otherwise), operating results or operations of the Company and its Subsidiaries, taken as a whole, or to the ability of the Company to consummate timely the transactions
contemplated hereby (regardless of whether or not such adverse effect or change can be or has been cured at any time or whether Buyer has knowledge of such effect or change on the date hereof), excluding, however, any events or circumstances
affecting the medical transcription industry generally. 
 “Material Contract” has the meaning set forth
in Section 4.11(a). 
 “Merger” has the meaning set forth in Section 2.1. 

“Merger Consideration” has the meaning set forth in Section 2.5(a). 

“Merger Sub” has the meaning set forth in the introductory paragraph hereof. 

“Ordinary Course of Business” means the ordinary course of business consistent with past custom and practice
(including with respect to nature, scope, magnitude, quantity and frequency) that does not require any board of director or shareholder approval or any other separate or special authorization of any nature and similar in nature, scope and magnitude
to actions customarily taken in the ordinary course of the normal day-to-day operations of other Persons that are in the same line of business. 
 “Option” means an option to purchase Common Stock or Preferred Stock that has been granted by the Company. 
 “Option Consideration” means: (i) with respect to any Option exercisable for Common Stock, an amount equal to the share of the Merger Consideration as set forth on Schedule
2.5 hereof allocated to the Optionholder with respect to its Common Stock (less the aggregate 

  
 7 

 
exercise price for said Common Stock pursuant to the applicable Option); and (ii) with respect to any Option exercisable for Preferred Stock, an amount equal to the share of the Merger
Consideration as set forth on Schedule 2.5 hereof allocated to the Optionholder with respect to its shares of Preferred Stock (less the aggregate exercise price for said Preferred Stock pursuant to the applicable Option). 

“Optionholder” means a holder of an Option. 

“Order” means any order, injunction, judgment, decree, ruling, writ, arbitration decision, award or assessment of
a Governmental Authority. 
 “Party” and “Parties” has the meaning set forth in
the introductory paragraph hereof. 
 “Patents” has the meaning set forth in the definition of
Intellectual Property Rights herein. 
 “Payment Agent” has the meaning set forth in
Section 2.10(a). 
 “Payment Agent Agreement” means the Payment Agent Agreement dated as of the
Closing Date by and among the Buyer, the Company, the Stockholders’ Representative and the Payment Agent in substantially the form of Exhibit B attached hereto. 
 “Payment Fund” has the meaning set forth in Section 2.10(a). 
 “Payment Fund Amount” means the sum of the Merger Consideration minus the Escrow Amount. 
 “PBGC” has the meaning set forth in Section 4.15(h). 

“Pension Plan” has the meaning set forth in Section 4.15(j). 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization or a Governmental Authority. 
 “Personnel
Transaction Costs” means $1,400,000.00. 
 “Plan” has the meaning set forth in
Section 4.15(f). 
 “Pollutant” includes any “hazardous substance” and any
“pollutant or contaminant” as those terms are defined in CERCLA; any “hazardous waste” as that term is defined in RCRA; and any “hazardous material” as that term is defined in the Hazardous Materials Transportation Act
(49 U.S.C. § 1801 et seq.), as amended; and including any petroleum product or byproduct, solvent, flammable or explosive material, radioactive material, asbestos, polychlorinated biphenyls (PCBs), toxic chemical, dioxins,
dibenzofurans, contaminant, heavy metals (to the extent they do not occur naturally), radon gas, mold, mold spores and mycotoxins and radiation; and including any other substance, waste or material that is reasonably determined to present a threat,
hazard or risk to human health or the environment or is regulated by, or for which standards of conduct are imposed under, any Environmental Requirement. 

  
 8 

  

“Pre-Closing Tax Period” has the meaning set forth in Section 7.9(a). 

“Preferred Certificate” shall mean a stock certificate which immediately prior to the Effective Time represented
any shares of Preferred Stock. 
 “Preferred Stock” means the shares of the Company’s Series B-1,
B-2, B-3, C, D and E Preferred Stock, par value $0.01 per share. 
 “Principal Stockholders” has the
meaning set forth in the introductory paragraph hereof. 
 “Principal Stockholder Pro Rata Percentage”
means with respect to each Principal Stockholder, a percentage equal to the pro rata share of the Merger Consideration payable to the Principal Stockholder in accordance with the Certificate of Incorporation as set forth on Schedule 2.5
attached hereto. The Principal Stockholder Pro Rata Percentage of each Principal Stockholder is set forth on Schedule 2.5 hereof. 
 “Prior Year Financial Statements” has the meaning set forth in Section 4.6. 
 “Proceeding” means any action, arbitration, audit, demand, examination, hearing, claim, complaint, charge, investigation, litigation, proceeding or suit (whether civil, criminal,
administrative, judicial or investigative, whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Authority or arbitrator. 

“Pro Rata Percentage” means with respect to each Holder, a percentage equal to the pro rata share of the Merger
Consideration payable to the Holder in accordance with the Certificate of Incorporation as set forth on Schedule 2.5 attached hereto. 
 “PTO” has the meaning set forth in Section 4.12(a). 

“Public Software” has the meaning set forth in Section 4.12(u). 

“RCRA” means the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as
amended, and all rules, regulations and standards issued thereunder. 
 “Registered Intellectual Property
Right(s)” means any and all United States, foreign, national and international: (i) Patents; (ii) registered Trademarks, applications to register Trademarks, including intent to use applications, or other registrations or
applications related to Trademarks; (iii) Copyrights registrations and applications to register Copyrights; (iv) Mask Work registrations and applications to register Mask Works; (v) Domain Name registrations; and (vi) any other
Intellectual Property Rights related thereto that are the subject of an application, certificate, filing, registration or other document issued by, filed with, or recorded by, any state, government or other public or private legal authority at any
time. 

  
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“Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, placing, discarding, abandonment, or disposing into the environment (including the placing, discarding or abandonment of any barrel, container or other receptacle containing any Pollutant). 

“Representative” means, with respect to a particular Person, any director, officer, manager, member, partner,
stockholder, employee, agent, consultant, advisor, accountant, financial advisor, legal counsel or other representative of that Person. 
 “Restricted Stock” means the restricted Common Stock (whether or not vested) that has been granted by the Company. 

“Restricted Stock Consideration” means, with respect to each share of Restricted Stock, an amount equal to the
share of the Merger Consideration as set forth on Schedule 2.5 hereof minus the Restricted Stock Debt Amount. 

“Restricted Stock Debt Amount” means, with respect to each share of Restricted Stock, an amount equal to the debt
owed by the holder thereof to the Company in respect of such share. 
 “Reviewed Financial Statements”
has the meaning set forth in Section 4.6. 
 “Safety Requirements” means all Legal Requirements
concerning public health and safety, product safety, product liability, worker health and safety, including the Occupational Safety and Health Act, as enacted or in effect, on or prior to the Closing Date. 

“Stock Option Plans” means the Spryance, Inc. 2000 Stock Option Plan. 

“Stockholder” means a holder of Company Stock. 

“Stockholder Indemnitees” has the meaning set forth in Section 9.2(b). 

“Stockholders’ Representative” has the meaning set forth in Section 10.4. 

“Stockholders’ Transaction Expenses” means, to the extent payable by the Company and its Subsidiaries (and
not paid by the Company and its Subsidiaries or the Holders before the Closing), all costs and expenses incurred by or on behalf of the Company, its Subsidiaries and the Holders in connection with the preparation, execution and performance of this
Agreement (including the reasonable costs of preparing and mailing the notices provided for in Section 7.8(b) hereof) and the Ancillary Agreements, including all fees and out of pocket expenses due all attorneys, accountants and financial
advisors of the Company, its Subsidiaries and the Holders (including, the Tax Return preparation relating to the period ending on or before the Closing Date, but excluding, for the avoidance of doubt, any income Taxes imposed on the Holders as a
result of the Transaction). 
 “Straddle Period” has the meaning set forth in Section 7.9(b).

 “Subsidiary” “Subsidiaries” means, as of the relevant date of determination, with
respect to any Person, a corporation or other Person of which 50% or more of the voting power of the 

  
 10 

 
outstanding voting equity securities or 50% or more of the outstanding economic equity interest is held, directly or indirectly, by such Person. Unless otherwise qualified, or the context
otherwise requires, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of Seller and its Subsidiaries. 

“Sufficient Stockholder Vote” has the meaning set forth in Section 4.2. 

“Surviving Corporation” has the meaning set forth in Section 2.1. 

“Tangible Personal Property” means all machinery, equipment, tools, furniture, office equipment, computer
hardware, supplies, materials, vehicles and other items of tangible personal property owned or leased by the Company. 

“Tax” or “Taxes” means (i) any federal, state, local or foreign income, gross
receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property,
personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in
respect of the foregoing, (ii) any liability for or in respect of the payment of any amount of a type described in clause (i) of this definition as a result of being or having been a member of an Affiliated Group, or (iii) any
liability for or in respect of the payment of any amount described in clauses (i) or (ii) of this definition as a transferee or successor, by contract or otherwise. 
 “Tax Contest” means any audit, claim, dispute or controversy relating to Taxes, including any Proceeding, assessment or adjustment. 

“Tax Effective Time” has the meaning set forth in Section 7.9(b). 

“Tax Returns” means returns, declarations, reports, claims for refund, information returns or other documents
(including any related, supporting, supplemental, or amending schedules, statements or information) filed or required to be filed in connection with the determination, assessment or collection of Taxes of any party or the administration of any laws,
regulations or administrative requirements relating to any Taxes. 
 “Technology” means any or all of
the following: (i) products of the Company or any of its Subsidiaries and any works of authorship including, without limitation, computer programs, source code and executable code, whether embodied in software, firmware or otherwise,
documentation, designs, files, net lists, formulas, records, data and mask works; (ii) inventions (whether or not patentable), ideas, improvements, discoveries, developments, designs and techniques, information regarding plans for research, and
technology; (iii) proprietary and confidential information, including technical data and customer and supplier lists and information related thereto, financial analysis, marketing and selling plans, business plans, budgets and unpublished
financial statements, licenses, prices and costs, general intangibles, trade secrets and know how; (iv) databases, data compilations and collections and technical data; (v) logos, trade names, trade dress, Trademarks, service marks;
(vi) domain names and websites; (vii) tools, services, methods and processes; and (viii) all instantiations of the foregoing in any form and embodied in any media. 

  
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 “Terminated
Customer” means a customer of the Company or a Subsidiary of the Company that gives written notice of termination between October 18, 2010 and 90 days after the Closing Date. 

“Third Party Proceeding” has the meaning set forth in Section 9.2(c)(i). 

“Trademarks” has the meaning set forth within the definition of Intellectual Property Right(s) herein.

 “Trade Secrets” has the meaning set forth within the definition of Intellectual Property Right(s)
herein. 
 “Transaction” means the transactions contemplated by this Agreement and the Ancillary
Agreements. 
 “Treasury Regulation” means any Treasury Regulations (including temporary regulations)
promulgated by the United States Department of the Treasury with respect to the Code, as amended. 
 “Unaudited
Financial Statements” has the meaning set forth in Section 4.6. 
 “Warrants” means,
collectively, the warrants described on Schedule 4.3. 
 “Warrant Consideration” means, with
respect to any Warrant, a cash amount equal to the portion of the Merger Consideration allocated to each Warrantholders as set forth on Schedule 2.5 hereof (less the aggregate exercise price for the Company Stock pursuant to the applicable
Warrant). 
 “Warrantholder” means a holder of a Warrant. 

ARTICLE II 

THE MERGER 

2.1 The Merger. Upon the terms and subject to the conditions of this Agreement, at the Effective Time, the Merger Sub shall,
pursuant to the provisions of the DGCL, be merged with and into the Company (the “Merger”), and the separate corporate existence of the Merger Sub shall thereupon cease in accordance with the provisions of the DGCL. The
Company shall be the surviving corporation in the Merger and shall continue to exist as the surviving corporation pursuant to the provisions of the DGCL. The separate corporate existence of the Company with all its rights, privileges, powers and
franchises shall continue unaffected by the Merger. The Merger shall have the effects specified in the DGCL. From and after the Effective Time, the Company is sometimes referred to herein as the “Surviving Corporation.”

 2.2 Certificate of Merger. On the Closing Date and subject to the terms and conditions of this Agreement, the parties
hereto shall cause the Merger to be consummated by filing the certificate of merger (the “Certificate of Merger”) with the Secretary of State of the State of Delaware and by making all other filings or recordings required
under the DGCL in connection with the Merger, in such form as is required by, and executed in accordance with, the 

  
 12 

 
relevant provisions of the DGCL. The Merger shall be effective at the time and on the date of the filing of the Certificate of Merger in accordance with the DGCL, which filing shall occur on the
Closing Date (the “Effective Time”). 
 2.3 Certificate of Incorporation; Bylaws. At the
Effective Time, the Certificate of Incorporation of the Company shall be amended so as to read in its entirety as set forth in Exhibit A to the Certificate of Merger and as so amended shall be the Certificate of Incorporation of the Surviving
Corporation until thereafter amended as provided by the DGCL and such Certificate of Incorporation. The bylaws of the Merger Sub in effect immediately prior to the Effective Time shall be the bylaws of the Surviving Corporation until amended in
accordance with applicable law. 
 2.4 Directors and Officers. From and after the Effective Time, until the earlier of
their resignation or removal or until their respective successors are duly elected or appointed and qualified in accordance with applicable law, (i) the directors of the Surviving Corporation shall be those persons who were the directors of the
Merger Sub immediately prior to the Effective Time, and (ii) the officers of the Surviving Corporation shall be those persons who were the officers of the Merger Sub immediately prior to the Effective Time. 

2.5 Merger Consideration; Effect on Stock. 
 (a) Merger Consideration. The aggregate merger consideration due with respect to the securities of the Company shall consist of an amount of cash equal to the sum of (i) $7,500,000.00,
minus (ii) the Personnel Transaction Costs, minus (iii) the Existing Debt Payoff Amount, minus (iv) the Stockholders’ Transaction Expenses as set forth on Schedule 2.5, as such amounts may be adjusted after the
Closing pursuant to Article IX, plus (v) the Cash of the Company and HCR Information Corporation which the Company has determined is $553,945.00 (the “Merger Consideration”). The Merger Consideration shall be allocated
and paid in accordance with Schedule 2.5 attached hereto. The Company and the Principal Stockholders warrant that the payment of the Merger Consideration in accordance with Schedule 2.5 hereof is true and correct and otherwise in
accordance with the Certificate of Incorporation (and all other applicable charter documents of the Company and contracts relating to rights to Company Stock), and no Person has any other rights to any portion of the Merger Consideration except as
set forth in Schedule 2.5 hereof. 
 (b) Effect on Company Stock. 

(i) As of the Effective Time, by virtue of the Merger and without any action on the part of any holder thereof or any
party hereto, each share of Preferred Stock issued and outstanding immediately prior to the Effective Time (except for shares held in the Company’s treasury) shall be cancelled and converted into the right to receive said holder’s portion
of the Merger Consideration in accordance with Schedule 2.5 hereof, if any, without interest. 
 (ii) As
of the Effective Time, by virtue of the Merger and without any action on the part of any holder thereof or any party hereto, each share of Common Stock issued and outstanding immediately prior to the Effective Time (except for shares held in the

  
 13 

 
Company’s treasury) shall be cancelled and converted into the right to receive said holder’s portion of the Merger Consideration in accordance with Schedule 2.5 hereof, if any,
without interest. 
 (iii) Shares of Common Stock in the Company’s treasury shall be cancelled and retired
and shall cease to exist, and no payment shall be made in respect thereof. 
 (iv) From and after the Effective
Time, the holders of Company Stock shall cease to have any rights with respect to such Company Stock, except the right to receive the applicable portion of the Merger Consideration in accordance with Schedule 2.5 hereof. After the Effective
Time, there shall be no transfers on the stock transfer books of the Surviving Corporation of the shares of Company Stock that were outstanding immediately prior to the Effective Time. If, after the Effective Time, Certificates or Affidavits, as the
case may be, are presented to the Surviving Corporation, they shall be cancelled and exchanged for the Merger Consideration as provided for, and in accordance with, the provisions of Section 2.10. 

(c) Effect on Capital Stock of Merger Sub. As of the Effective Time, each share of capital stock of the Merger Sub issued and
outstanding immediately prior to the Effective Time shall, without any action on the part of Merger Sub, be converted on a one-for-one basis into shares of the corresponding class of capital stock of the Surviving Corporation. 

2.6 Effect on Restricted Stock, Options and Warrants. 
 (a) Restricted Stock. Immediately prior to the Effective Time, in connection with the Merger, the Company shall cause all restrictions on each share of Restricted Stock to lapse in accordance with
the terms of such share of Restricted Stock’s award agreement. At the Effective Time, each share of Restricted Stock shall be automatically converted into and represent only the right to receive an amount equal to the Restricted Stock
Consideration, if any, with respect to such Restricted Stock (subject to any adjustments specified herein and subject to any applicable withholding Tax as specified in Section 2.10(e)(iii)). Each holder of Restricted Stock shall be deemed to
have received holder’s full share of the Merger Consideration as set forth on Schedule 2.5 hereof with respect to each share of Restricted Stock and to have repaid the Restricted Stock Debt Amount associated with such share of Restricted
Stock. 
 (b) Options. Immediately prior to the Effective Time, in connection with the Merger, the Company shall cause
all restrictions on each Option to lapse. At the Effective Time, all Options then outstanding that have not been exercised will be cancelled in exchange for a right to receive a cash payment in the amount of the Option Consideration, if any, with
respect to such Options (subject to any adjustments specified herein and any applicable withholding Tax as specified in Section 2.10(e)(iii), and without interest). Thereafter, such Options thereupon shall no longer represent the right to
purchase Common Stock, Preferred Stock or any other equity security of the Company, the Buyer, the Merger Sub or any other Person or the right to receive any other consideration. The Company shall take all necessary steps as may be required to
effect the provisions of Section 2.6(a) and (b). 

  
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 (c) Warrants.
At the Effective Time, all Warrants then outstanding that have not been exercised will be cancelled in exchange for a right to receive a cash payment in the amount of the Warrant Consideration, if any, with respect to such Warrants (subject to any
adjustments specified herein and without interest). Thereafter, such Warrants shall no longer represent the right to purchase Common Stock, Preferred Stock or any other equity security of the Company, the Buyer, the Merger Sub or any other Person or
the right to receive any other consideration. 
 (d) Waivers. Prior to the Closing, the Company shall use its
commercially reasonable efforts to obtain any necessary waivers, consents or releases, in form and substance reasonably satisfactory to the Buyer, from the holders of Restricted Stock, Options and Warrants required to give effect to the transactions
contemplated by this Section 2.6. 
 2.7 Dissenting Shares. Each share of Company Stock issued and outstanding
immediately prior to the Effective Time held by stockholders who shall have properly exercised their appraisal rights with respect thereto under the DGCL (such shares of capital stock, collectively, the “Dissenting Shares”)
shall be cancelled as of the Effective Time. Notwithstanding Section 2.5 and Section 2.10 hereof, each Dissenting Share shall not be converted into the right to receive the Merger Consideration pursuant to the Merger, but in lieu thereof,
the holders of such Dissenting Shares shall be entitled to receive payment of the fair value of such shares in accordance with the provisions of Section 262 of the DGCL; provided, that each Dissenting Share held by a stockholder who
either (i) shall thereafter withdraw his, her or its demand for payment of fair value with the consent of the Buyer or (ii) shall fail to perfect his, her or its right to such payment as provided in the DGCL, shall be deemed to be
converted as of the Effective Time into the right to receive the Merger Consideration, in the form such holder otherwise would have been entitled to receive as a result of the Merger. 

2.8 The Closing Date. The closing of the Transaction (the “Closing”) shall take place at the offices of
Womble Carlyle Sandridge & Rice, PLLC in Atlanta, Georgia, at 3:00 p.m. local time on October 21, 2010, or at such other place or on such other date as is mutually acceptable to the Parties. The date of the Closing is referred to
herein as the “Closing Date. 
 2.9 The Closing. Subject to the conditions set forth in this
Agreement, the Parties agree that the following transfers shall occur at the Closing: 
 (a) the Buyer shall deliver the
Payment Fund Amount to the Payment Agent in accordance with Section 2.10(a); 
 (b) the Buyer shall deliver the Escrow
Amount in cash to the Escrow Agent in accordance with Section 2.10(b); 
 (c) the Buyer shall deliver the amount of any
Existing Debt Payoff Amount and Stockholders’ Transaction Expenses that were deducted in calculating the Merger Consideration to the applicable Persons to whom such amounts are owed; and 

(d) the Buyer, Merger Sub, the Stockholders and the Company, as applicable, shall deliver the certificates and other agreements,
documents and instruments required to be delivered by or on behalf of such Party pursuant to Article III below. 

  
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 2.10 Payments.

 (a) Payment Fund. JPMorgan Chase Bank, National Association shall act as payment agent for the Buyer (the
“Payment Agent”) in the Merger in accordance with the Payment Agent Agreement. At the Closing, the Buyer shall deposit the Payment Fund Amount with the Payment Agent, for the benefit of the Holders, for payment through the
Payment Agent in accordance with this Section 2.10. The Payment Agent shall hold the Payment Fund Amount in a separate account (the “Payment Fund”) in accordance with the Payment Agent Agreement. Promptly following the
Effective Time, the Payment Agent shall, subject to the terms and conditions set forth herein and in the Payment Agent Agreement, make the payments provided for in Sections 2.5 and 2.6 from the Payment Fund. The Payment Fund shall not be used for
any other purpose. The Buyer shall cause the Payment Agent to invest any cash included in the Payment Fund as directed by the Buyer in a cash compensation account of the Payment Agent. Any interest and other income resulting from such investments
shall be the property of, and will be promptly paid to, the Buyer. If for any reason (including losses) the cash in the Payment Fund shall be insufficient to fully satisfy all the payment obligations required to be made by the Payment Agent
hereunder, the Buyer shall promptly deposit cash into the Payment Fund in the amount required to fully satisfy such payment obligations. 
 (b) Escrow Fund. At the Effective Time, the Buyer shall cause to be delivered to the Escrow Agent an amount of cash equal to the Escrow Amount. The Escrow Amount shall be held by the Escrow Agent
in a separate account (the “Escrow Fund”) solely for purposes of the payment to the Buyer or the Company, as the case may be, of indemnification claims of Buyer Indemnitees required by Article IX. The Escrow Fund shall be
governed by the terms of the Escrow Agreement. 
 (c) Required Holder Deliverables. As a condition to receiving payments
hereunder in respect of Company Stock, Restricted Stock, Options or Warrants, each Holder shall deliver to the Payment Agent: (i) such holder’s Certificate(s) or Affidavit and (ii) a fully-completed and executed Letter of Transmittal,
together with the attachments thereto (including a duly completed and executed IRS Form W-9 and, when required, W-8). Until surrendered in accordance with the provisions of this Section 2.10, each Certificate, Option or Warrant, as the case may
be, shall represent for all purposes only the right to receive the Merger Consideration in the form provided for by this Agreement, without interest. In the event that any Certificate, Option or Warrant shall have been lost, stolen or destroyed,
upon the making of an affidavit of that fact and providing for indemnification by the registered holder of such lost, stolen or destroyed Certificate, Option or Warrant, in each case, in form and substance reasonably acceptable to the Buyer (the
“Affidavit”), the Payment Agent will pay in exchange for such lost, stolen or destroyed Certificate the Merger Consideration in respect thereof in the manner set forth in this Section 2.10. 

(d) Payments to Holders. Upon delivery by any Holder of the deliverables described in Section 2.10(c) above to the Payment
Agent: 
 (i) with respect to each share of Preferred Stock represented thereby, such Holder shall receive from
the Payment Agent in exchange therefor the amount designated in Schedule 2.5 attached hereto for such Holder, if any, in the form of a wire transfer, without interest, in immediately available U.S. funds; 

  
 16 

  
 (ii)
with respect to each share of Common Stock (other than Restricted Stock) represented thereby, such Holder shall receive from the Payment Agent in exchange therefor the amount designated in Schedule 2.5 attached hereto for such Holder, if any,
in the form of a wire transfer, without interest, in immediately available U.S. funds; 
 (iii) with respect to
each share of Restricted Stock represented thereby, such Holder shall receive from the Payment Agent in exchange therefor the applicable Restricted Stock Consideration, if any, in the form of a wire transfer, without interest, in immediately
available U.S. funds; 
 (iv) with respect to each Option represented thereby, such Holder shall receive from the
Payment Agent in exchange therefor the applicable Option Consideration, if any, in the form of a wire transfer, without interest, in immediately available U.S. funds; 

(v) with respect to each Warrant represented thereby, such Holder shall receive from the Payment Agent in exchange
therefor the applicable Warrant Consideration, if any, in the form of a wire transfer, without interest, in immediately available U.S. funds; and 
 (vi) the balance of the Merger Consideration, if and when payable in accordance with the Escrow Agreement, shall be paid in accordance with the terms thereof. 

(e) Mechanics. 
 (i) If payment is to be made to a Person other than the Person in whose name the Certificate is registered, it shall be a condition of payment that the Certificate so surrendered shall be properly
endorsed or otherwise in proper form for transfer and delivered to the Buyer or the Payment Agent, as applicable, with all documents required to evidence and effect such transfer and that the Person requesting such payment pay any transfer or other
Taxes required by reason of the payment to a Person other than the registered holder of the Certificate surrendered or establish to the satisfaction of the Surviving Corporation that such Tax has been paid or is not applicable. 

(ii) To the extent permitted by applicable Law, none of the Buyer, the Merger Sub, the Company, the Stockholders’
Representative or the Payment Agent shall be liable to any Person in respect of any portion of the Merger Consideration from the Payment Fund properly delivered to a public official pursuant to any applicable abandoned property, escheat or similar
law. 
 (iii) Each of the Payment Agent, the Surviving Corporation and the Buyer shall be entitled to deduct and
withhold from the portion of the Merger Consideration attributable to any Company Stock, any Options, any Warrants or amounts otherwise payable pursuant to this Agreement, such amounts as are required to be withheld with respect to the making of
such payment under the Code, and the rules and regulations 

  
 17 

 
promulgated thereunder, or any provision of United States federal, state or local Tax laws. To the extent that amounts are so withheld, such withheld amounts shall be paid to the applicable
Governmental Authority and treated for all purposes of this Agreement as having been paid to the holder thereof in respect of which such deduction and withholding was made. 

(iv) Promptly following the date that is nine (9) months after the Effective Time, the Buyer shall cause the Payment
Agent to deliver to the Surviving Corporation all cash, Certificates and other documents in its possession relating to the Merger, and the Payment Agent’s duties shall terminate. Any Holders who have not complied with Section 2.10(c) prior
to the end of such nine (9) month period shall thereafter look only to the Surviving Corporation (subject to abandoned property, escheat or other similar laws) for payment of their claim for right to receive the Merger Consideration.

 ARTICLE III 
 CONDITIONS TO CLOSING 
 3.1 Conditions to the Obligations of the Buyer
and Merger Sub. The obligation of the Buyer and the Merger Sub to consummate the Transaction is subject to the satisfaction or written waiver by the Buyer and the Merger Sub of the following conditions at or before the Closing: 

(a) Accuracy of Representations. Each of the representations and warranties set forth in Article IV and Article V hereof shall be
true and correct in all material respects (except for any such representations and warranties which are qualified by their terms by a reference to materiality or Material Adverse Change, which representation as so qualified shall be true and correct
in all respects) as of the date of this Agreement and as of the Closing Date as though made on and as of each such date (except for those representations and warranties that address matters only as of a particular date, which representations and
warranties shall be true and correct only as of such date). 
 (b) Covenants. Each of the Principal Stockholders and the
Company shall have performed and complied with, in all material respects, all the covenants, agreements and obligations required to be performed or to be complied with by it pursuant to this Agreement at or prior to the Closing. 

(c) No Litigation. No Proceeding by or before any Governmental Authority shall be pending or threatened that seeks to restrain,
enjoin, prevent or prohibit the consummation of any part of the Transaction. No Legal Requirement shall have been enacted or promulgated by any Governmental Authority, and no Order shall be in effect, in either case which temporarily or permanently
restrains, enjoins, prevents or prohibits the consummation of any part of the Transaction. 
 (d) No Material Adverse
Change. No change shall have occurred since the date of this Agreement that, individually or in the aggregate, has resulted in a Material Adverse Change of the Company. 

  
 18 

  
 (e) Required
Actions. All corporate and other proceedings to be taken by the Principal Stockholders and the Company in connection with the consummation of the Transaction and all certificates, opinions, instruments and other documents required to be
delivered by the Principal Stockholders or the Company to effect the Transaction reasonably requested by the Buyer, will be reasonably satisfactory in form and substance to the Buyer. 

(f) Closing Documents. On or prior to the Closing Date, the Principal Stockholders shall have delivered to the Buyer (or caused
the Company to deliver to the Buyer) each of the following, each of which will be in form and substance reasonably satisfactory to the Buyer: 
 (i) Good Standing Certificates. A certificate from the Secretary of State (or other applicable Governmental Authority) of the Company’s and HCR Information Corporation’s jurisdiction of
organization; 
 (ii) Secretary’s Certificate. A certificate executed by the Secretary of the Company
certifying as true, correct and complete: (i) copies of the certificate of incorporation and bylaws (or comparable organizational documents) of the Company and each of its Subsidiaries, certified by the Secretary of the Company as the true,
correct and complete copies thereof as of the Closing Date; and (ii) copies of the resolutions of the board of directors and Principal Stockholders of the Company evidencing the approval of this Agreement and the Ancillary Agreements to which
it is a party and the consummation of the Transaction; 
 (iii) Officer’s Certificate. A certificate
executed by the President and Chief Executive Officer of the Company, dated as of the Closing Date, stating that the conditions specified in Sections 3.1(a), 3.1(b) and 3.1(d) have been satisfied with respect to the Company; 

(iv) Third Party Consents. The consents or waivers required from third parties that are listed on Schedule
3.1(f)(iv), if any; 
 (v) Governmental Consents. The authorizations, Licenses, consents, Orders or
approvals of, or declarations or filings with, or expiration or termination of waiting periods imposed by, any Governmental Authority necessary for the consummation of the Transaction that are listed on Schedule 3.1(f)(v) shall have been
filed, occurred or been obtained; 
 (vi) Escrow Agreement; Payment Agent Agreement. The Company, the
Stockholders’ Representative and the Escrow Agent shall have entered into the Escrow Agreement, which shall be in full force and effect as of the Closing. The Company, the Stockholders’ Representative and the Payment Agent shall have
entered into the Payment Agent Agreement, which shall be in full force and effect as of the Closing; 
 (vii)
Payoff Letters; Releases. The Company shall have received or obtained (i) payoff letters relating to all Indebtedness of the Company and its Subsidiaries set forth on Schedule 3.1(f)(vii) attached hereto and identified
thereon as requiring a payoff letter and (ii) releases from third parties of any and all Liens relating to property of the 

  
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Company and its Subsidiaries, all on terms reasonably satisfactory to the Buyer. Schedule 3.1(f)(vii) shall also set forth the Indebtedness and Liens of the Company and its Subsidiaries
that will not be satisfied in full prior to the Closing, thereby continuing with the Company and its Subsidiaries post-Closing. 
 (viii) FIRPTA Certificates. A certificate in accordance with Treasury Regulation Section 1.1445-2(c)(3) certifying as of the Closing Date that neither the Company nor any of its Subsidiaries
is a United States real property holding corporation within the meaning of Code Section 897(c)(2), together with evidence reasonably satisfactory to the Buyer that the Company and each United States Subsidiary of the Company has provided notice
to the IRS in accordance with the provisions of Treasury Regulation Section 1.897-2(h)(2); 
 (ix)
Noncompetition Agreement. Beecken Petty O’Keefe & Company, LLC shall have delivered to the Buyer duly a executed noncompetition agreement, substantially in the form of Exhibit D hereto (the “Noncompetition
Agreement”); 
 (x) Opinion of Counsel. The Buyer shall have received an opinion of the
Company’s legal counsel, dated the Closing Date, substantially in the form attached hereto as Exhibit E; and 
 (xi) Other. Such other documents or instruments as the Buyer may reasonably request in connection with this Agreement to effect the Transaction. 

(g) Severance Notification. The Buyer shall have received satisfactory evidence that severance terms have been communicated to
employees of the Company and its Subsidiaries (in the manner agreed to by the Buyer) who shall be terminated immediately prior to the Closing. The Company will not be liable for any Losses arising from said terminations, except as it relates to the
Personnel Transaction Costs in connection with said employees or breach of a representation and warranty hereunder unrelated to said terminations. 
 3.2 Conditions to the Obligations of the Company and Principal Stockholders. The obligations of the Company and Principal Stockholders to consummate the Transaction are subject to the satisfaction
or written waiver by the Company or the Principal Stockholders, as applicable, of the following conditions at or before the Closing: 
 (a) Accuracy of Representations. Each of the representations and warranties set forth in Article VI hereof shall be true and correct (without regard to any “material,”
“materially,” “Material Adverse Change,” “Knowledge” or other similar qualifier) as of the date of this Agreement and as of the Closing Date as though made as of each such date (except for those representations and
warranties that address matters only as of a particular date, which representations and warranties shall be true and correct only as of such date). 
 (b) Covenants. The Buyer and the Merger Sub shall have performed and complied with, in all material respects, all the covenants, agreements and obligations required to be performed or to be
complied with by it pursuant to this Agreement at or prior to the Closing. 

  
 20 

  
 (c) No
Litigation. No Proceeding by or before any Governmental Authority shall be pending or threatened that seeks to restrain, enjoin, prevent or prohibit the consummation of any part of the Transaction. No Legal Requirement shall have been enacted or
promulgated by any Governmental Authority, and no Order shall be in effect, in either case which temporarily or permanently restrains, enjoins, prevents or prohibits the consummation of any part of the Transaction. 

(d) Required Actions. All corporate and other proceedings to be taken by the Buyer and the Merger Sub in connection with the
consummation of the Transaction and all certificates, instruments and other documents required to be delivered by the Buyer or the Merger Sub to effect the Transaction reasonably requested by the Company or the Principal Stockholders shall be
reasonably satisfactory in form and substance to the Stockholders’ Representative. 
 (e) Closing Documents. On or
prior to the Closing Date, the Buyer and the Merger Sub shall have delivered to the Company each of the following, each of which will be in form and substance reasonably satisfactory to the Company: 

(i) Secretary’s Certificate. A certificate executed by an officer the Buyer certifying as true, correct and
complete: (i) copies of the certificate of incorporation and bylaws (or comparable organizational documents) of the Buyer and the Merger Sub, certified by such officer of the Buyer as the true, correct and complete copies thereof as of the
Closing Date; and (ii) copies of the resolutions of the board of directors of the Buyer and the Merger Sub evidencing the approval of this Agreement and the Ancillary Agreements to which each is a party and the consummation of the Transaction;

 (ii) Officer’s Certificate. A certificate executed by an officer of each of the Buyer and Merger
Sub, dated as of the Closing Date, stating that the conditions specified in Sections 3.2(a) and 3.2(b) have been satisfied; 
 (iii) Governmental Consents. The authorizations, Licenses, consents, Orders or approvals of, or declarations or filings with, or expiration or termination of waiting periods imposed by, any
Governmental Authority necessary for the consummation of the Transaction that are listed on Schedule 3.1(f)(v) shall have been filed, occurred or been obtained; 

(iv) Escrow Agreement; Payment Agent Agreement. The Buyer shall have entered into the Escrow Agreement and the
Payment Agent Agreement, which shall be in full force and effect as of the Closing; and 
 (v) Other. Such
other documents or instruments as the Company may reasonably request in connection with this Agreement to effect the Transaction. 

  
 21 

  
 ARTICLE IV

 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

As a material inducement to the Buyer and the Merger Sub to enter into this Agreement, the Company hereby represents and warrants to the
Buyer and the Merger Sub that, as of the date hereof and as of the Closing Date: 
 4.1 Organization and
Corporate Power. The Company is a corporation, duly organized, validly existing and in good standing under the Legal Requirements of the State of Delaware. The Company is duly qualified to do business and, to the extent such concept or a similar
concept exists in the relevant jurisdiction, is in good standing in every jurisdiction in which the nature of its business or its ownership or leasing of property or assets requires it to be so qualified. All such jurisdictions in which the Company
is so qualified are set forth on Schedule 4.1. The Company has the full corporate power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted and presently proposed to be conducted.
The Company furnished to the Buyer complete and correct copies of its Certificate of Incorporation and Company Bylaws, each as in effect as of the date hereof. 
 4.2 Authorization of Transaction. 
 (a) The Company has full power and
authority to execute and deliver this Agreement and the Ancillary Agreements to which the Company is a party and to consummate the Transaction. The execution, delivery and performance by the Company of this Agreement and the Ancillary Agreements to
which the Company is a party and the consummation of the Transaction have been duly and validly authorized and approved by all requisite action on the part of the Company, including all action required to be taken by the Stockholders, and no other
approval or other proceedings (corporate or otherwise) on the part of the Company are necessary to approve and authorize the execution, delivery or performance of this Agreement and the Ancillary Agreements to which the Company is a party and the
consummation of the Transaction. This Agreement has been duly executed and delivered by the Company, and constitutes a legal, valid and binding obligation of the Company enforceable against it in accordance with its terms, except as enforceability
hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Legal Requirements affecting creditors’ rights generally and limitations on the availability of equitable remedies. As of the Closing, the Ancillary
Agreements to which the Company is a party will have been duly executed and delivered by the Company, and each such Ancillary Agreement will constitute a legal, valid and binding agreement of the Company enforceable against it in accordance with its
terms, except as enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Legal Requirements affecting creditors’ rights generally and limitations on the availability of equitable remedies.

 (b) The Board of Directors of the Company, by unanimous written consent, has (i) determined that this Agreement and the
Transaction (including the Merger) are advisable, fair to and in the best interests of the Company and the Stockholders, (ii) approved and adopted this Agreement and the Transaction (including the Merger), (iii) recommended the approval
and adoption of this Agreement by the Stockholders, and (iv) directed that this Agreement be submitted to the Stockholders for approval. The vote required to approve this Agreement by the Stockholders is set forth in Schedule 4.2 (the
“Sufficient Stockholder Vote”). 

  
 22 

  
 4.3
Capitalization. The authorized, issued and outstanding shares of capital stock of the Company are set forth on Schedule 4.3. All the issued and outstanding shares of capital stock of the Company are duly authorized, validly issued,
fully paid, nonassessable and are free of preemptive right, and all shares of capital stock of the Company reserved for issuance upon exercise or vesting of outstanding Options or Warrants will be, upon issuance, duly authorized, validly issued,
fully paid, nonassessable and free of preemptive rights. Except as set forth on Schedule 4.3, (a) there are no outstanding or authorized options, warrants, rights, contracts, calls, puts, rights to subscribe, conversion rights or
other agreements or commitments to which the Company is a party or which are binding upon the Company, providing for the issuance, disposition or acquisition of any of the Company’s capital stock (other than this Agreement); (b) there are
no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to the Company; (c) there are no voting trusts, proxies or any other agreements or understandings with respect to the voting of the capital stock of
the Company; and (d) the Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any of shares of its capital stock. 

4.4 Subsidiaries; Investments. Except as set forth on Schedule 4.4, neither the Company nor any of its
Subsidiaries owns or holds the right to acquire any stock, partnership interest, joint venture interest or other equity ownership interest in any other Person. Schedule 4.4 sets forth a complete and correct list of all of the Subsidiaries of
the Company, including each such Subsidiary’s jurisdiction of formation or organization and jurisdictions where qualified to do business, the equity interests of such Subsidiary and the owner(s) or record of such equity interests. Each of the
Company’s Subsidiaries is validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, has all requisite corporate power and authority and all authorizations, licenses and permits necessary to own
its properties and to carry on its businesses as now conducted and is qualified to do business in every jurisdiction in which its ownership of property or the conduct of businesses as now conducted requires it to qualify. Schedule 4.4 lists
the current directors and officers of each Subsidiary of the Company as of the Effective Time. Except as set forth on Schedule 4.4, all of the capital stock of each of the Subsidiaries is owned by the Company free and clear of all Liens. All
the issued and outstanding shares of capital stock of each of the Company’s Subsidiaries are duly authorized, validly issued, fully paid, nonassessable and are free of preemptive right. There are no outstanding or authorized options, warrants,
rights, contracts, calls, puts, rights to subscribe, conversion rights or other agreements or commitments providing for the issuance, disposition, acquisition or voting of any shares of stock of any of the Company’s Subsidiaries. 

4.5 Absence of Conflicts. Except as set forth on Schedule 4.5, neither the execution and delivery by the Company of this
Agreement and the Ancillary Agreements to which the Company is a party nor the consummation or performance of the Transaction in accordance with the terms of this Agreement and the Ancillary Agreements will (with or without notice or lapse of time,
or both): (a) contravene, conflict with, or result in a violation of any provision of the Certificate of Incorporation, the Company Bylaws or the comparable organizational documents of any of the Company’s Subsidiaries;
(b) contravene, conflict with, or result in a violation of, or give any Governmental Authority or other Person the right to challenge the Transaction under, any Legal Requirement to which the Company or any of its Subsidiaries or any of their
respective businesses, properties or assets may be subject; (c) contravene, conflict with, or result in a violation or breach of any of the terms or requirements of, 

  
 23 

 
or give any Governmental Authority the right to revoke, withdraw, suspend, cancel, terminate or modify, any License that is held by the Company or any of its Subsidiaries; (d) contravene,
conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, or give rise
to a purchase or comparable right under, or result in the loss of any benefit or right under, any contract (including any Lease) to which the Company or any of its Subsidiaries is a party or by which any of their respective properties or assets is
bound; or (e) result in the imposition or creation of any Lien upon or with respect to any of the properties or assets owned or used by the Company or any of its Subsidiaries. 

4.6 Financial Statements. Prior to the Closing, the Company has delivered to the Buyer the audited financial statements of the
Company and its Subsidiaries (audited balance sheet and statements of operations, cash flow and stockholders’ equity) for the fiscal year ended December 31, 2007 and draft audited financial statements of the Company and its Subsidiaries
(draft audited balance sheet and statements of operations, cash flow and stockholders’ equity) for the fiscal years ended December 31, 2008 and December 31, 2009 (the “Prior Year Financial Statements”) and
current year management prepared unaudited financial statements of the Company and its Subsidiaries (balance sheet and statement of operations) through August 31, 2010 (the “Unaudited Financial Statements”, together with
the Prior Year Financial Statements, the “Financial Statements”). The Financial Statements are complete and correct in all material respects and have been prepared on a consistent basis throughout the periods indicated and
with each other. The Unaudited Financial Statements shall reflect the Company’s reasonable good faith estimate of the Tax assessments relating to transfer pricing issues, as reserved for therein (the “Transfer Pricing Liability
Estimate”). The Financial Statements fairly present the financial condition and operating results of the Company as of the respective dates and for the respective periods indicated, and are consistent with the method in which they are
presented, all in accordance with GAAP. The Financial Statements have been and will be prepared from and are in accordance with the accounting records of the Company and its Subsidiaries. The Company also has delivered to the Buyer copies of all
letters from the Company’s and its Subsidiaries’ auditors to their respective boards of directors or the audit committees thereof during the thirty-six (36) months preceding the execution of this Agreement, together with copies of all
responses thereto. 
 4.7 Absence of Undisclosed Liabilities. 

(a) Except as set forth on Schedule 4.7, neither the Company nor any Subsidiary has any liabilities or obligations arising out of
transactions entered into prior to the Effective Time of the nature required to be disclosed in the liabilities column of a balance sheet prepared in accordance with GAAP, except: (i) liabilities stated in the Unaudited Financial Statements,
and (iii) liabilities that have arisen after the date of the Unaudited Financial Statements in the Ordinary Course of Business. 
 (b) Without limiting the generality of the foregoing, except as set forth on Schedule 4.7, the Company and its Subsidiaries have complied in all material respects with all applicable Legal
Requirements, and none of the Company nor any of its Subsidiaries has received notice or other written communication alleging a violation of any applicable Legal Requirement. 

  
 24 

  
 4.8 Absence of
Certain Developments. Since August 31, 2010 through the date hereof, there has occurred no change which, individually or in the aggregate, has resulted in a Material Adverse Change of the Company. Except as set forth on
Schedule 4.8 and except as expressly required by this Agreement, since January 1, 2010, (x) the Company and its Subsidiaries have operated the business in all material respects in the Ordinary Course of Business and
(y) neither the Company nor any of its Subsidiaries has: 
 (a) made any loans or advances to, or guarantees for the
benefit of, any Person in excess of $10,000; 
 (b) incurred any Indebtedness; 

(c) mortgaged, pledged or subjected, or allowed or suffered to become subject, to any Lien, any material portion of its properties or
assets; 
 (d) entered into, amended (including through waivers or other modifications) or terminated, any Lease or contract
(other than in the Ordinary Course of Business) in excess of $10,000; 
 (e) made or granted any bonus or any wage, salary or
compensation increase (including with respect to any severance or change in control payment) in excess of $10,000 to any current or former director, officer, employee or consultant or made or granted any increase in any employee benefit plan or
arrangement, or amended or terminated any existing employee benefit plan or arrangement or adopted any new employee benefit plan or arrangement; 
 (f) made any capital expenditure or commitments for capital expenditures or any investment in any other Person, or entered into any Lease or lease of capital equipment in excess of $10,000; 

(g) changed or authorized any change in the Certificate of Incorporation, the Company Bylaws or any of the comparable organizational
documents of any of the Company’s Subsidiaries; 
 (h) declared, set aside or paid any dividends or made any other
distributions with respect to, or purchased, redeemed or otherwise acquired or agreed to acquire, any shares of capital stock or other securities of the Company or any of its Subsidiaries (including any warrants, options or other rights to acquire
capital stock or other equity securities; 
 (i) changed or authorized any change in its accounting practices or policies or
method of accounting for any items in the preparation of the financial statements of the Company and its Subsidiaries; 
 (j)
incurred any physical damage, destruction or other casualty loss, whether or not covered by insurance, affecting any of its real or personal property in excess of $10,000; 

  
 25 

  
 (k) entered into any
settlement, conciliation or similar contract involving claims, or paid, discharged, settled, waived or satisfied any material liabilities or rights of the Company or any of its Subsidiaries; 

(l) any waiver of any material rights or claims of the Company or any of its Subsidiaries; 

(m) any work interruptions, labor grievances or claims filed, or any proposed law, regulation or event or condition of any character
materially adversely affecting the business of the Company or any of its Subsidiaries; 
 (n) any cancellation, or agreement to
cancel, any Indebtedness or other obligation owing to the Company or any Subsidiary of the Company; 
 (o) any sale or
transfer, or any agreement to sell or transfer, any material assets, properties or rights of the Company or its Subsidiaries; 

(p) entered into or approved any contract, arrangement or understanding to do, engage in or cause or having the effects of, any of the
foregoing. 
 4.9 Title to Assets. 
 (a) Neither the Company nor any of its Subsidiaries owns any land or other interest in real property. 
 (b) Schedule 4.9(b) sets forth the address of all Leased Premises and a true and complete list of all Leases for each of the Leased Premises. The Company has delivered to the Buyer a complete and
correct copy of each such Lease. The Leased Premises constitute all of the real property used, occupied or held for use by the Company and its Subsidiaries. With respect to each Lease: 

(i) except as set forth on Schedule 4.9(b), each Lease is legal, valid, binding and enforceable against the Company
or its Subsidiary party thereto and, to the Knowledge of the Company, each other party thereto, and is in full force and effect, and the Company or such Subsidiary holds a valid and existing leasehold interest under each Lease, in each case, free
and clear of all Liens; 
 (ii) except as set forth on Schedule 4.9(b), neither the Company nor any of its
Subsidiaries that is party thereto, nor to the Knowledge of the Company, any other party to such Lease, is in breach in any material respect or default under such Lease, and no event has occurred which (with or without notice or lapse of time, or
both) would constitute a breach or default by the Company or any of its Subsidiaries, or to the Knowledge of the Company, any other party thereto, or would permit termination, modification or acceleration thereunder by any party thereto, except for
such breaches, defaults or claims that, individually or in the aggregate, have not resulted in, and would not reasonably be expected to result in, a Material Adverse Change of the Company; and neither the Company nor any of its Subsidiaries has
received written notice of the intention of any party to terminate such Lease, and to the Knowledge of the Company, there is no basis therefor; and 

  
 26 

  
 (iii)
there are no pending or, to the Knowledge of the Company, threatened Proceedings or other disputes relating to any Leased Premises or any other matter materially and adversely affecting the current use or occupancy of the Leased Premises by the
Company or any of its Subsidiaries, or to the Knowledge of the Company, any other party to such Lease. 
 (c) All of the
buildings, machinery, equipment and other tangible assets included as part of the Tangible Personal Property, whether owned or leased, are in good working order and have been maintained in accordance with standard practice of the Company and its
Subsidiaries (taking into account ordinary wear and tear and the need for ordinary, routine maintenance and repairs). 
 (d)
Except as set forth on Schedule 4.9(d), the Company and its Subsidiaries have good and marketable title to (or in the case of assets identified as leased in the books and records of the Company and its Subsidiaries, a valid leasehold interest
in) the Tangible Personal Property that is shown on the Unaudited Financial Statements or acquired thereafter, free and clear of all Liens. 
 4.10 Taxes. 
 (a) Each of the Company and its Subsidiaries has filed all
Tax Returns that it was required to file for all applicable Taxes, for all years and periods, and portions thereof for which the due date (with extension) falls on or before the Closing Date, and none of the Company or any of its Subsidiaries has
waived any statute of limitations or is currently the beneficiary of any extension of time within which to file any Tax Return. All such Tax Returns are complete and correct in all material respects, and proper records have been maintain to
substantiate the accuracy and correctness of all such Tax Returns. All Taxes payable or required to be paid and all assessments for Taxes of the Company and its Subsidiaries have been paid when due. There are no liens for Taxes (other than for Taxes
not yet due and payable) upon any of the assets of the Company or any of its Subsidiaries. Except as otherwise reflected on the Unaudited Financial Statements, any and all transactions among and between the Company and any of its Subsidiaries and
transactions among and between the Company’s Subsidiaries themselves for all years and periods, and portions thereof for which the due date (with extension) falls on or before the Closing Date, were and have been priced in compliance with
Section 482 of the Code and, when applicable, Article 9 of Convention Between the Government of the United States of America and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion
With Respect to Taxes on Income as in effect on the Closing Date. The Company confirms, represents and warrants that none of the Company or any of its Subsidiaries, whether directly, indirectly or through one or more intermediaries has ever, through
and including the Closing Date, participated in or cooperated with an unsanctioned international boycott within the meaning of Section 999 of the Code. Except as set forth on Schedule 4.10, with respect to Taxes of the Company or
any of its Subsidiaries, there are no Tax Contests or investigations by any Governmental Authority pending or ongoing, no written notice 

  
 27 

 
that a Tax Contest or investigation is pending or proposed has been received from any Governmental Authority, and, to the Knowledge of the Company, no Tax Contest or investigation has been
threatened. No claim has ever been made by an authority in a jurisdiction where the Company or any of its Subsidiaries does not file Tax Returns that the Company or any of its Subsidiaries is or may be subject to taxation by that jurisdiction. The
Company and its Subsidiaries have timely withheld and paid over to the appropriate Governmental Authority all Taxes required to have been withheld and paid in connection with amounts paid or owing to any Person, including any employee, equityholder
or creditor, and the Company and its Subsidiaries have properly completed and timely filed all IRS Forms W-2, 1042 and 1099 (and similar forms) required with respect thereto. Subject to the approval by the requisite Holders pursuant to
Section 280G(b)(5) of the Code, the Company and its Subsidiaries have not made, and are not and will not become obligated to make, any payments that will be nondeductible under Section 280G of the Code as a result of the transactions
contemplated herein. None of the Company or any of its Subsidiaries has any obligation to indemnify any Person for, or is or, to the Knowledge of the Company, would reasonably be expected to be liable for, any damages for breach of contract with
respect to any Taxes imposed under Section 409A or Section 4999 of the Code. Under all contracts with customers, such customers are liable for any and all sales or use Taxes imposed by virtue of or with respect to such sales or licenses.
Except as set forth on Schedule 4.10, (i) neither the Company nor any of its Subsidiaries is a party to or bound to any Tax allocation, sharing or similar agreement or has any current or potential contractual obligation to indemnify any
other Person with respect to Taxes and (ii) neither the Company nor any of its Subsidiaries (A) has any liability for Taxes arising as a result of the Company or any of its Subsidiaries at any time being a member of an Affiliated Group, or
(B) is liable for the Taxes of any other Person (other than any member of an Affiliated Group the common parent of which is the Company) under Treasury Regulations Section 1.1502-6 or as a transferee or successor, by contract or otherwise.
There are no unpaid Taxes of the Company or any of its Subsidiaries relating to or arising out of any period (or partial period) ending on or prior to the Closing Date, except to the extent that such Taxes, being current Taxes not yet due and
payable, are properly accrued by the Company on the Unaudited Financial Statements or have been properly accrued since the date of the Unaudited Financial Statements in the Ordinary Course of Business, and since the date of the Unaudited Financial
Statements neither the Company nor any of its Subsidiaries has incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the Ordinary Course of Business. Except as set forth in
Schedule 4.10, there are no outstanding agreements or waivers extending the statutory period of limitations applicable to any Tax Returns required to be filed by the Company or any of its Subsidiaries, or that include or are treated as
including, the Company or any of its Subsidiaries or with respect to any Tax assessment or deficiency or Tax Contest affecting the Company or any of its Subsidiaries. 
 (b) Neither the Company nor any of its Subsidiaries: 
 (i) Since
January 1, 2007, has distributed equity of another Person, or has had its equity distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Sections 355 or 361 of the Code; 

(ii) is or has been a party to any “reportable transaction,” as defined in Section 6707A(c)(1) of the Code
and Treasury Regulation Section 1.6011-4(b); 

  
 28 

  
 (iii)
will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (A) change in method of accounting for a
taxable period ending on or prior to the Closing Date; (B) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local, or non-United States income Tax law) executed on
or prior to the Closing Date; (C) intercompany transactions or any excess loss account described in Treasury Regulations under Section 1502 of the Code (or any corresponding or similar provision of state, local, or non-United States income
Tax law); (D) installment sale or open transaction disposition made on or prior to the Closing Date; (E) prepaid amount received on or prior to the Closing Date; or (F) or election by the Company or any Subsidiary under
Section 108(i) of the Code; 
 (iv) has been a United States real property holding corporation within the
meaning of Section 897(c)(2) of the Code during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code; 
 (v) is a party to any “long term contract” within the meaning of Section 460 of the Code; 
 (vi) has any “non-recaptured net Section 1231 losses” within the meaning of Section 1231(c)(2) of the Code; 

(vii) has conducted or is conducting an active trade or business, or has a permanent establishment, in any jurisdiction
other than in the jurisdiction in which it was incorporated; or 
 (viii) owns any assets that constitute tax
exempt bond financing property or tax exempt use property, within the meaning of Section 168 of the Code. 
 (c) All
registrations, filings and compliances as required under the Export Oriented Unit (“EOU”) Scheme, if applicable, and the applicable regulations pertaining thereto have been obtained and complied with by any of the
Subsidiaries formed, located or operating in India (the “Indian Subsidiaries”). Further, the Indian Subsidiaries have not received any notices/ orders and have not been subject to penalties for non-compliance with said
applicable regulations and the EOU Scheme. The Indian Subsidiaries have complied with all said applicable regulations, including the EOU Scheme, and have not acted in any manner which will adversely affect (i) any benefits of the tax holiday
available to them until their scheduled expiration date, and (ii) any other benefits available under the EOU Scheme. 

4.11 Contracts and Commitments. 
 (a) Schedule 4.11(a) sets forth with respect to each of the Company and its Subsidiaries any contract (or group of related contracts) (all such contracts, the “Material
Contracts”): 
 (i) relating to the incurrence of Indebtedness or to the mortgaging, pledging or
otherwise placing a Lien (other than a Permitted Lien) on any properties or assets of the Company or any of its Subsidiaries; 

  
 29 

  
 (ii)
with respect to the lending or investing of funds; 
 (iii) with respect to Intellectual Property Rights (other
than customer agreements or other agreements pursuant to which the Company or any of its Subsidiaries has licensed off-the-shelf commercial software), including any rights, license, royalty or other similar contract; 

(iv) under which it is a lessee of, or holds or operates, any Tangible Personal Property owned by any other Person calling
for aggregate payments in excess of $10,000 annually; 
 (v) each customer contract that the Company reasonably
expects to generate annual recurring revenue of $10,000 or more; 
 (vi) calling for payments in calendar year
2010 in excess of $10,000 annually pursuant to which the Company and its Subsidiaries subcontracts work to third parties; 
 (vii) calling for aggregate payments by the Company or any of its Subsidiaries in excess of $10,000 (unless terminable by the Company or its Subsidiaries without payment or penalty upon no more than sixty
(60) days’ notice); 
 (viii) imposing any confidentiality or secrecy obligation on the Company or any
of its Subsidiaries, excluding standard confidentiality or secrecy provisions contained in agreements with customer, vendors or prospective customers or vendors entered into in the Ordinary Course of Business and consistent with past practice and
excluding confidentiality agreements entered into in connection with the Transaction; 
 (ix) involving a
commitment to make any capital expenditure in excess of $10,000 in the aggregate; 
 (x) constituting an
outstanding powers of attorney (or comparable arrangement) executed by or on behalf of the Company or any of its Subsidiaries; or 
 (xi) containing a covenant restricting the Company or any of its Subsidiaries from competing in any business in any geographical area or using any Company Intellectual Property. 

(b) Each of the Material Contracts is a legal, valid and binding obligation of the Company or its applicable Subsidiary, is in full
force and effect and is enforceable by the Company or such Subsidiary in accordance with its terms. Each of the Material Contracts have been entered into in the Ordinary Course of Business in all material respects, except as set forth in
Schedule 4.11(b). Neither the Company nor any of its Subsidiaries is (with or without the lapse of time or the giving of notice, or both) in breach in any material respect under any contract listed on Schedule 4.11(a),
Schedule 4.15(d) or Schedule 4.16, 

  
 30 

 
except for such breaches, defaults or claims that, individually or in the aggregate, have not resulted in, and would not reasonably be expected to result in, a Material Adverse Change of the
Company. Except as disclosed on Schedule 4.11(a), Schedule 4.15(d) or Schedule 4.16, as applicable, to the Knowledge of the Company, none of the other parties to any Material Contract is (with or without the lapse of
time or the giving of notice, or both) in breach in any material respect thereunder nor has any event occurred that with notice or lapse of time would constitute a material breach or permit termination or acceleration thereof, except for such
breaches, defaults or claims that, individually or in the aggregate, have not resulted in, and would not reasonably be expected to result in, a Material Adverse Change of the Company. Except as disclosed on Schedule 4.11(a), Schedule
4.15(d) or Schedule 4.16, as applicable, neither the Company nor any Subsidiary has received any written notice of the intention of any party to terminate any Material Contract and, there is no basis therefor. The Company has delivered or
made available to the Buyer a true and complete copy of each Material Contract as in effect on the date of this Agreement. 

(c) Except as set forth on Schedule 4.11(c), all of the Material Contracts may be assigned to the Buyer free of cost or expense
without obtaining the consent or approval of any other Person or do not require any cost or expense or the consent or approval of any other Person in connection with the transactions contemplated hereby. Neither the Company nor any Subsidiary of the
Company is a party to any contract providing for any payments to any Person resulting from the consummation of the transactions contemplated hereby, except as set forth on Schedule 4.11(c). To the Knowledge of the Company, no event has
occurred or circumstance exists under or by virtue of any Material Contract that (with or without notice or lapse of time) would cause the creation of any Lien affecting any of the assets of the Company or any Subsidiary of the Company. Neither the
Company nor any Subsidiary of the Company has given to or received from any other Person, at any time since January 1, 2010, any written (or to the Knowledge of the Company, oral) notice or other communication regarding any actual, alleged,
possible or potential violation or breach of, or default under, any Material Contract. There are no renegotiations of, attempts to renegotiate or outstanding rights to renegotiate any amounts paid or payable to the Company or any Subsidiary of the
Company under current or completed Material Contracts with any Person having the contractual or statutory right to demand or require such renegotiation and no such Person has made written demand for such renegotiation. Except to the extent set forth
on Schedule 4.11(c), no customer or other party to any of the Material Contracts has given written (or to the Knowledge of the Company, oral) notice to the Company of any plan or intention to terminate, to cancel or otherwise materially and
adversely modify its relationship with the Company or any of its Subsidiaries or to decrease materially its usage, purchase or distribution of the services or products of the Company or any of its Subsidiaries. 

4.12 Intellectual Property. 
 (a) Schedule 4.12 is a complete and accurate list of (i) all the Company Registered Intellectual Property Rights, (ii) all unregistered copyrights in computer software that are included
in the Company Intellectual Property, and (iii) all unregistered Trademarks included within the Company Intellectual Property. For each of the foregoing, the listing shall include (w) the respective application or serial number (if
applicable), (x) the date of any such application and registration, the jurisdiction(s) in which each such right either exists or, for registrations and 

  
 31 

 
applications thereto, has been registered or applied for, (y) an identification of whether the right is solely owned by, jointly owned by, or exclusively licensed, and (z) a brief
summary of any proceedings or actions before any court, tribunal (including the United States Patent and Trademark Office (the “PTO”) or equivalent authority anywhere in the world) related thereto. 

(b) Each item of the Company Registered Intellectual Property Rights is valid and subsisting, and all necessary fees, including without
limitation all registration, maintenance, issuance and renewal fees, in connection with such the Company Registered Intellectual Property Rights have been paid and all necessary documents and certificates in connection with such the Company
Registered Intellectual Property Rights have been filed with the relevant patent, copyright, trademark or other authorities in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining such Registered
Intellectual Property Rights. There are no actions that must be taken by the Company or any Subsidiary of the Company within one hundred twenty (120) days of the Closing Date, including the payment of any registration, maintenance or renewal
fees or the filing of any responses to office actions, documents, applications or certificates for the purposes of obtaining, maintaining, perfecting or preserving or renewing any Registered Intellectual Property Rights. Without limiting the
foregoing, neither the Company nor any Subsidiary of the Company has taken any action or allowed any event to occur, and the Company is not aware of any event or circumstances, which would set a United States patent bar date within one hundred
twenty (120) days of the Closing Date. A United States patent bar date includes any date by which the Company or any Subsidiary of the Company must file a patent application in order to preserve the Company’s or its Subsidiary’s right
and ability to seek patent protection for an invention in the United States. To the Company’s Knowledge, no third party is in breach of any non-disclosure agreement signed with the Company or any Subsidiary of the Company or of any
confidentiality terms of any agreement signed with the Company or any Subsidiary of the Company. In each case in which the Company or a Subsidiary of the Company has acquired (excluding for the purpose of this sentence, any non-exclusive license)
any Technology or Intellectual Property Right from any Person, the Company or a Subsidiary of the Company, as the case may be, has obtained a valid and enforceable assignment sufficient to irrevocably transfer the Technology and all rights in such
Technology including all associated Intellectual Property Rights (including the right to seek past and future damages with respect thereto) to the Company or its Subsidiary, as the case may be. To the maximum extent provided for by, and in
accordance with, Legal Requirements, the Company and its Subsidiaries have recorded each such assignment of a Registered Intellectual Property Right assigned to the Company or any Subsidiary of the Company with the relevant Governmental Authority,
including the PTO, the U.S. Copyright Office, or their respective equivalents in any relevant foreign jurisdiction, as the case may be. Neither the Company nor any Subsidiary of the Company has claimed a particular status, including “Small
Business Status,” in the application for any Intellectual Property Rights, which claim of status was not at the time made, or which has since become, inaccurate or false or that will no longer be true and accurate as a result of the Closing.

 (c) The Company has no Knowledge of any facts or circumstances that would render any the Company Intellectual Property
invalid or unenforceable. The Company has no Knowledge of any information, materials, facts, or circumstances, including any information or fact that would constitute prior art, that would render any of the Company Registered Intellectual Property
Rights invalid or unenforceable, or would adversely effect any pending application for 

  
 32 

 
any the Company Registered Intellectual Property Right, and the Company has not misrepresented, or failed to disclose, and has no Knowledge of any misrepresentation or failure to disclose, any
fact or circumstance in any application for any the Company Registered Intellectual Property Right that would constitute fraud or a misrepresentation with respect to such application or that would otherwise affect the validity or enforceability of
any the Company Registered Intellectual Property Right. The Company has not undertaken any prior art searches, or any freedom to operate searches or evaluations. 
 (d) Each item of the Company Intellectual Property is free and clear of any Liens. 

(e) Except as disclosed in Schedule 4.12(e), all the Company Intellectual Property will be fully transferable, alienable or
licensable by the Company without restriction and without payment of any kind to any third party. 
 (f) To the extent that any
Technology which is owned, possessed, used or controlled by the Company or any Subsidiary of the Company has been developed or created by a third party, the Company or its Subsidiary has a written agreement with such third party with respect thereto
and the Company and its Subsidiaries thereby either (i) have obtained ownership of, and is the exclusive owner of, or (ii) have obtained a license in good standing (sufficient for the conduct of the business of the Company and its
Subsidiaries as currently conducted) to utilize all such third party’s Intellectual Property Rights in such Technology by operation of law or by valid assignment or license, to the fullest extent it is legally possible to do so. The Company and
its Subsidiaries has paid all license fees as they have become due and are in compliance therewith in all material respects for the use of all inbound “shrink wrap” and similar publicly available commercial binary code end user licenses
and outbound “shrink wrap” in the conduct of the business of the Company and its Subsidiaries as currently conducted. 

(g) All Company Intellectual Property used in or necessary to the conduct of the business of the Company and its Subsidiaries as
presently conducted was written and created solely by either (i) employees of the Company or a Subsidiary of the Company acting within the scope of their employment or (ii) by third parties who have validly and irrevocably assigned all of
their rights, including Intellectual Property Rights therein, to the Company or a Subsidiary of the Company, and no third party owns or has any rights to any of the Company Intellectual Property. 

(h) The Company and its Subsidiaries have followed and enforced a policy prohibiting, and have not allowed, any employee, consultant, or
contractor to have access to the software codes of the Company’s or its Subsidiaries’ software, and to the Company’s Knowledge, no such employee, consultant or contractor has breached said policy. 

(i) The Company and its Subsidiaries have taken all commercially reasonable steps required to protect their respective rights in their
Confidential Information and Trade Secrets or Confidential Information and Trade Secrets provided by any other Person to the Company or its Subsidiaries. 

  
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 (j) Except as
disclosed in Schedule 4.12(k), no Person who has licensed Technology or Intellectual Property Rights to the Company or any of its Subsidiaries has ownership rights or license rights to improvements made by the Company or its Subsidiaries in
such Technology or Intellectual Property Rights. 
 (k) Except as disclosed in Schedule 4.12(k), neither the Company nor
any of its Subsidiaries has transferred ownership of, or granted any exclusive license of or right to use, or authorized the retention of any exclusive rights to use or joint ownership of, any Technology or Intellectual Property Right that is or was
the Company Intellectual Property, to any other Person. 
 (l) Other than inbound “shrink wrap” and similar publicly
available commercial binary code end user licenses and outbound “shrink wrap” licenses, the contracts listed in Schedule 4.11(a) lists all contracts to which the Company or a Subsidiary of the Company is a party with respect to any
Technology or Intellectual Property Rights. Neither the Company nor any Subsidiary of the Company is in breach of nor has the Company or a Subsidiary of the Company failed to perform under any of the foregoing contracts and, to the Company’s
Knowledge, no other party to any such contract is in breach thereof or has failed to perform thereunder, except for such breaches, defaults or claims that, individually or in the aggregate, have not resulted in, and would not reasonably be expected
to result in, a Material Adverse Change of the Company. 
 (m) Schedule 4.12(m) lists all contracts between the Company
and/or its Subsidiaries on the one hand and any other Person on the other hand wherein or whereby the Company or a Subsidiary of the Company has agreed to, or assumed, any obligation or duty to warrant, indemnify, reimburse, hold harmless, guaranty
or otherwise assume or incur any Liability or provide a right of rescission with respect to the infringement or misappropriation of the Intellectual Property Rights of any Person. 

(n) To the Knowledge of the Company, there are no contracts between the Company or any of its Subsidiaries on the one hand and any other
Person on the other hand with respect to the Company Intellectual Property under which there is any dispute regarding the scope of such agreement, or performance under such agreement, including with respect to any payments to be made or received by
the Company or a Subsidiary of the Company thereunder. 
 (o) Assuming that the consents identified in Schedule 4.11(c)
are obtained in full force and effect at all relevant times, the operation of the business of the Company and its Subsidiaries as it currently is conducted, including but not limited to the design, development, use, disclosure, import, branding,
advertising, promotion, marketing, license, manufacture, sale, license and distribution of the products, or services or other Technology of the Company or any Subsidiary of the Company (including such Technology currently under development) does not
and will not when conducted by the Buyer in substantially the same manner following the Closing to the Company’s Knowledge infringe or misappropriate any Intellectual Property Right of any Person, violate any right of any Person (including any
right to privacy or publicity) or constitute unfair competition or trade practices under the laws of any jurisdiction, and neither the Company nor any Subsidiary of the Company has received written (or to the Knowledge of the Company, oral) notice
from any Person claiming that such operation or any act, product, or 

  
 34 

 
service or other Technology of the Company or a Subsidiary of the Company (including such Technology currently under development) infringes or misappropriates any Intellectual Property Right of
any Person or constitutes unfair competition or trade practices under the Laws of any jurisdiction, nor does the Company have Knowledge of any basis therefore. 
 (p) To the Company’s Knowledge, no Person is infringing or misappropriating any Company Intellectual Property Right. 
 (q) To the Company’s Knowledge, no Company Intellectual Property or Technology is subject to any Action that restricts in any manner the use, transfer or licensing thereof by the Company and/or its
Subsidiaries or may affect the validity, use or enforceability of such the Company Intellectual Property or Technology. 
 (r)
No (i) product, technology, service or publication of the Company or any Subsidiary of the Company, (ii) material published or distributed by the Company or a Subsidiary or the Company or (iii) conduct or statement of the Company or a
Subsidiary of the Company constitutes obscene material, a defamatory statement or material, false advertising or otherwise violates in any Legal Requirement. 
 (s) The Company Intellectual Property, together with any rights under the applicable Material Contracts, constitutes all the Technology and Intellectual Property Rights used in and/or necessary to the
conduct of the business of the Company and its Subsidiaries as it currently is conducted, including, without limitation, the design, development, manufacture, use, disclosure, import, branding, advertising, promotion, marketing, sale, license and
distribution of products or other Technology of the Company, including performance of services (including such Technology currently under development). 
 (t) Except as disclosed in Schedule 4.12(t), neither this Agreement nor the transactions contemplated by this Agreement, including the assignment to the Buyer, by operation of law or otherwise, of
any contracts to which the Company or a Subsidiary of the Company is a party, will result in (i) any third party being granted rights or access to, or the placement in or release from escrow, of any the Company Intellectual Property,
(ii) the Buyer granting to any third party any right, title or interest to or with respect to any Intellectual Property Rights owned by, or licensed to, the Buyer pursuant to any contract to which the Company or a Subsidiary of the Company is a
party or by which it is bound, (iii) the Buyer being bound by, or subject to, any non compete or other restriction on the operation or scope of the business of the Company and its Subsidiaries, (iv) any restriction on the ability of the
Buyer to share information relating to its ongoing business or operations, or (v) the Buyer being obligated to pay any royalties, fees, honoraria or other amounts to any third party in excess of those payable by the Company or a Subsidiary of
the Company prior to the Closing Date pursuant to contracts to which the Company or a Subsidiary of the Company is a party or by which it is bound. 
 (u) Schedule 4.12(u) contains a true and complete list of all of the software programs included in or developed for inclusion in the Company’s or its Subsidiaries’ products (including,
without limitation, the GEMSTAR software platform) or any third party (including all software programs embedded or incorporated in the Company’s or its Subsidiaries’ products) 

  
 35 

 
(the “Company Software”). Except as listed in Schedule 4.12(u), the Company Software does not contain any third party software or Public Software. The list in
Schedule 4.12(u) shall contain (i) the name of the Public Software, (ii) the license name and version pursuant to which the Company has received a license to such Public Software, and (iii) a short statement regarding how
the Public Software is being used by the Company and its Subsidiaries. “Public Software” means any software that contains, includes, incorporates, or has instantiated therein, or is derived in any manner (in whole or in part)
from, any software that is distributed as free software, open source software (e.g., Linux) or similar licensing or distribution models, including software licensed or distributed under any of the following licenses or distribution models, or
licenses or distribution models similar to any of the following: (1) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL); (2) the Artistic License (e.g., PERL); (3) the Mozilla Public License; (4) the
Netscape Public License; (5) the Sun Community Source License (SCSL); (6) the Sun Industry Standards License (SISL); (7) the BSD License; and (8) the Apache License. 

(v) The Company and each Subsidiary of the Company employs commercially reasonable measures to ensure that the Company Software do not
contain any viruses. For the purposes of this Agreement, “virus” means any computer code intentionally designed to disrupt, disable, or harm in any manner the operation of any software or hardware or to allow a third party to have
access to the user’s computer or network without such user’s authority. 
 (w) The Company Software: 

(i) Performs in all material respects accordance with all published specifications for such software; 

(ii) Complies in all material respects with all other published documentation, descriptions and literature with respect to such
software; and 
 (iii) Complies in all material respects with all representations, warranties and other requirements specified
in all of the Company’s and its Subsidiaries’ customer contracts. 
 (x) Except as set forth on Schedule
4.12(x), the Stockholders of the Company or any Subsidiary of the Company (other than the Company) do not have an ownership right or other interest in any Intellectual Property related to the business of the Company and its Subsidiaries.

 4.13 Brokerage. No broker, finder or investment banker acting on behalf of the Stockholders or the Company or any of
its Subsidiaries is entitled to any fee, commission or other payment from the Stockholders or the Company or any of its Subsidiaries in connection with this Agreement or the Transaction. 

4.14 Governmental Licenses and Permits. Schedule 4.14 contains a complete and correct listing of all permits, licenses,
franchises, certificates, approvals, registrations, accreditations and other authorizations of Governmental Authorities (including all licenses, permits and other authorizations that are required pursuant to any Environmental Requirements for the
occupancy of its properties or facilities, or the operation of its businesses) (collectively, 

  
 36 

 
the “Licenses”) owned or possessed by the Company and its Subsidiaries, and to the Company’s Knowledge, no other Licenses are required in the conduct of the business
of the Company and its Subsidiaries as currently conducted or as proposed to be conducted. Except as set forth on Schedule 4.14, all Licenses are in full force and effect and the Company and each of its Subsidiaries is operating and has
operated in compliance with all such Licenses as well as the applicable orders, approvals and variances related thereto, and are not in violation of any of the foregoing. Except as specifically provided on Schedule 4.14, the transactions
contemplated by this Agreement will not result in a default under or a breach or violation of, or adversely affect the rights and benefits afforded to the Company or its Subsidiaries by, any such Licenses. 

4.15 Employment and Labor Matters. 
 (a) List; Unpaid Compensation. Schedule 4.15(a) lists: (a) all present employees (including title and position), contractors and consultants of the Company and each Subsidiary of the
Company, (b) their current fixed and variable rate of compensation and benefits, and (c) their accrued vacation, if applicable, (d) and for non-U.S. employees, provident fund benefits, gratuities, life insurance and other benefits.
Schedule 4.15(a) also indicates any of such parties who is absent from work due to a work related injury, is receiving workers’ compensation or is receiving disability compensation. With respect to the business conducted by the Company
and its Subsidiaries, there are no unpaid wages, bonuses or commissions (other than those not yet due) nor does the Company or any Subsidiary of the Company owe any Tax, penalty, assessment or forfeiture for failure to comply with any of the
foregoing. Except as provided on Schedule 4.15(a), the employment of all employees, contractors and consultants listed on Schedule 4.15(a) may be terminated at any time with or without cause and without any severance or other Liability
to the Company or any Subsidiary of the Company. The Company and its Subsidiaries have paid or properly accrued and set forth on the face of the Financial Statements in the Ordinary Course of Business all wages and compensation due to any employee
of the Company or any Subsidiary of the Company, including all vacations or vacation pay, holidays or holiday pay, sick days or sick pay, and bonuses. 
 (b) Certain Information. Except as listed in Schedule 4.15(b), the Company and its Subsidiaries: (a) since January 1, 2008, have not experienced, and there are not pending
or, to the Knowledge of the Company, threatened, any labor disputes, organized slowdown, pickets, work slow-downs due to labor disagreements, organized work interruption, strike or work stoppage by employees of the Company or any Subsidiary of the
Company or any actions or arbitrations that involve employees of the Company or any Subsidiary of the Company; (b) are not a party to, nor are they obligated by, any oral or written agreement, labor union or collective bargaining or otherwise,
regarding the rates of pay or working conditions of any of the employees of the Company or any Subsidiary of the Company; and (c) are not obligated under any agreement to recognize or bargain with any labor organization or union on behalf of
the employees of the Company or any Subsidiary of the Company. No event has occurred or circumstance exists that may provide the basis of any work stoppage or other labor dispute in connection with the business of the Company and its Subsidiaries.

 (c) Labor Claims. Except as listed in Schedule 4.15(c): (a) neither the Company nor any Subsidiary of the
Company, nor any of their respective officers, directors, or employees has been charged or, to Knowledge of the Company, threatened with the charge of 

  
 37 

 
any unfair labor practice, charge or complaint pending, unresolved, or, to the Knowledge of the Company, threatened; (b) the Company and its Subsidiaries are in material compliance with, and
are not in violation of any, Legal Requirements concerning the employer-employee relationship and anti-discrimination and equal employment opportunities; and (c) there are, and have been, no violations of any other Law respecting the hiring,
hours, wages, occupational safety and health, employment, promotion, termination or benefits of any employee of the Company or any Subsidiary of the Company. The Company and its Subsidiaries have filed all reports, information and notices required
under any Law respecting the hiring, hours, wages, occupational safety and health, employment, promotion, termination or benefits of any employee of the Company or any Subsidiary of the Company, and will timely file prior to Closing all such
reports, information and notices required by any Law to be given prior to Closing. 
 (d) Employment Agreements. Except
as listed in Schedule 4.15(d): (a) all officers, employees, and agents of the Company and its Subsidiaries are employees at-will and for indefinite terms, and (b) there are no outstanding agreements or arrangements with respect to
severance payments. 
 (e) The Company and its Subsidiaries have complied and are in compliance with the requirements of the
Immigration Reform and Control Act of 1986. Schedule 4.15(e) sets forth a true and complete list of all employees of the Company and its Subsidiaries working in the United States who are not U.S. citizens and a description of the legal status
under which each such individual is permitted to work in the United States. All employees of the Company and its Subsidiaries or other Person who are performing services for the Company and its Subsidiaries are legally able to work in the countries
where they are working and will be able to continue to work in the business of the Company and its Subsidiaries where they are currently working following the consummation of the transactions contemplated by this Agreement. 

(f) Employee Benefit Plans. Except as set forth on Schedule 4.15(f), neither the Company nor any of its Subsidiaries
maintain, contribute to or have any liability or potential liability with respect to (i) any “employee benefit plan” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), or (ii) any other plan, program, policy, practice, arrangement or contract providing benefits or payments to current or former employees (or to their beneficiaries or dependents) of the Company or its
Subsidiaries or to any other Person, including any bonus plan, plan for deferred compensation, nonqualified retirement plan, severance plan, stock option, phantom stock or stock purchase plan, employee health or other welfare benefit plan or other
arrangement formal or informal (in each case of (i) and (ii), a “Plan”). For purposes of this Section 4.15(f), the “Company” shall be deemed to include any entity required to be aggregated in a controlled
group or affiliated service group with the Company or any of its Subsidiaries for purposes of ERISA or the Code (including under Section 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA), at any relevant time.

 (g) Each Plan that is intended to be qualified within the meaning of Section 401(a) of the Code has received a
determination letter from the Internal Revenue Service (the “IRS”) that such Plan is qualified under Section 401(a) of the Code, or the Company is entitled to rely upon an opinion letter from the IRS with respect to the
qualification of such Plan, and nothing has occurred that could reasonably be expected to adversely affect the qualification of such Plan. 

  
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 (h) Neither the
Company nor any of its Subsidiaries has liability or potential liability with respect to any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA) that is subject to Title IV of ERISA, Section 302 of
ERISA or Section 412 of the Code or any similar federal, state or provincial law, rule or regulation (a “Pension Plan”) or any “multiemployer plan” (as such term is defined in Section 3(37) of ERISA).

 (i) Each Plan and any related trust, insurance contract or fund has been maintained, funded and administered in compliance
in all material respects with its respective terms and with all applicable Legal Requirements. No asset of the Company is subject to any Lien under ERISA or the Code, and neither the Company nor any of its Subsidiaries has incurred any liability
under Title IV of ERISA or any Legal Requirement or to the Pension Benefit Guaranty Corporation (the “PBGC”). There are no pending or, to the Knowledge of the Company, threatened Proceedings with respect to any Plan.

 (j) Each of the Company and its Subsidiaries has complied in all material respects with the health care continuation
requirements of Part 6 of Subtitle B of Title I of ERISA and Section 4980B of the Code or any Legal Requirement (“COBRA”); and neither the Company nor any of its Subsidiaries has obligations under any Plan or otherwise
to provide postemployment health or life insurance benefits to current or former employees of the Company or its Subsidiaries or to any other person, except as required by COBRA. 

(k) Other than as set forth on Schedule 4.15, none of the Plans or any other agreement between the Company or any of its
Subsidiaries and any employees of the Company or any such Subsidiary obligates the Company or any Subsidiary to pay any separation, severance, termination, retention bonus or similar benefit or accelerate any vesting schedule, or alter any benefit
structure as a result of the Transaction (including in connection with the occurrence of subsequent events) or as a result of a change in control or ownership within the meaning of any Plan, agreement or Section 280G of the Code or the
regulations thereunder. 
 (l) Neither the Company nor any of its Subsidiaries nor any other “disqualified person”
(within the meaning of Section 4975 of the Code) or “party in interest” (within the meaning of Section 3(14) of ERISA) has taken any action with respect to any of the Plans which could subject any such Plan (or its related trust)
or the Company or any of its Subsidiaries or any officer, director or employee of any of the foregoing to any penalty or Tax under Section 502(i) of ERISA or Section 4975 of the Code or any or any similar Legal Requirement. There has been
no breach of fiduciary duty (as determined under ERISA) with respect to any Plan. 
 (m) With respect to each Plan, the Company
has provided the Buyer with true, complete and correct copies of (to the extent applicable) (i) all documents pursuant to which the Plan is maintained, funded and administered, (ii) the annual report (Form 5500 series) filed with the IRS
(including all applicable attachments) for the most recent three years, (iii) the most recent financial statements, (iv) the most recent actuarial valuation of benefit obligations, (v) the most recent summary plan description provided
to participants, and (vi) the most recent determination letter received from the IRS. 

  
 39 

  
 (n) With respect each
Plan, all required payments, premiums, contributions, reimbursements or accruals for all periods (or partial periods) ending prior to or as of the Unaudited Financial Statements shall have been made or properly accrued on the Unaudited Financial
Statements. None of the Plans has any unfunded liabilities which are not reflected on the Unaudited Financial Statements. 

(o) With respect to each non-U.S. Plan, the Plan has been established, maintained and administered by the Company or any of its
Subsidiaries in material compliance with all applicable Legal Requirements of any controlling governmental authority or instrumentality, and all required contributions have been made or accrued to the extent required in accordance with applicable
Legal Requirements. 
 4.16 Insurance. Schedule 4.16 lists each insurance policy maintained by or for the benefit
of the Company or any of its Subsidiaries with respect to the Company’s and its Subsidiaries’ assets, properties or businesses (including the name of the insurer, the policy number, and the period, amount and scope of coverage). Such
policies are in amounts and have coverages as required by any contract to which the Company or any of its Subsidiaries is a party or by which any of its assets or properties is bound. All such insurance policies are in full force and effect. Neither
the Company nor any of its Subsidiaries is in default with respect to its obligations under any such insurance policy or has received written notice of cancellation or termination in respect of any such policy, and, to the Knowledge of the Company,
no cancellation or termination of any such policy is pending or threatened by the current insurers of the Company or any of its Subsidiaries. 
 4.17 Affiliate Transactions. To the Knowledge of the Company, except as disclosed on Schedule 4.17, neither (a) any current or former officer, director, manager, stockholder or
unitholder of the Company or any of its Subsidiaries, (b) any individual related by blood, marriage or adoption to any of the foregoing individuals, (c) any trust or comparable entity that is operated for the benefit of any of the
individuals referred to in each of the foregoing clauses, nor (d) any entity in which any Person referred to in each of the foregoing clauses owns any beneficial interest, (i) is a party to any agreement, contract, commitment or
transaction with the Company or any of its Subsidiaries, or (ii) has any interest in any property, real or personal or mixed, tangible or intangible, used in or pertaining to the Company’s business. 

4.18 Environmental Matters. Except as set forth on Schedule 4.18, each of the Company and its Subsidiaries have obtained
and complied in all material respects with all Licenses that may be required pursuant to Environmental Requirements for the occupation of its facilities and the operation of the Company’s and its Subsidiaries’ business. 

(a) Except as set forth on Schedule 4.18(a), the Company and its Subsidiaries are, and at all times during the past thirty-six
(36) months have been, in compliance in all material respects with all Environmental Requirements. 

  
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 (b) To the Knowledge
of the Company, except as set forth on Schedule 4.18(b), neither the Company nor any of its Subsidiaries has received any written notice, report or other information regarding any actual or alleged violation of Environmental Requirements or
any Environmental Liabilities, relating to the Company or its Subsidiaries or any Leased Premises that remains pending or unresolved. 
 (c) Neither the Company nor any of its Subsidiaries nor their predecessors or Affiliates has treated, stored, disposed of, arranged for or permitted the disposal of, transported, exposed any Person to,
handled or Released any Pollutant, or owned or operated any property or facility in a manner that has given or would reasonably be expected to give rise to Environmental Liabilities. Except as set forth on Schedule 4.18(c), the Leased
Premises are not contaminated by any Pollutant. 
 (d) To the Knowledge of the Company, Schedule 4.18(d) lists all:
(i) USTs, (ii) asbestos-containing material, and (iii) materials or equipment containing polychlorinated byphenyls or radioactive substances, in each case that are located on or exist at any property or facility owned or leased by the
Company or any of its Subsidiaries, all of which comply in all material respects with all applicable Environmental Requirements. 
 (e) Since January 1, 2007, except as set forth on Schedule 4.18(e), neither the Company nor any of its Subsidiaries has assumed, undertaken or otherwise become subject to any liability,
including any obligation for corrective or remedial action, of any other Person relating to Environmental Requirements. 
 4.19
Safety Matters. 
 (a) Except as set forth on Schedule 4.19(a), the Company and its Subsidiaries have obtained and
complied in all material respects with all Licenses that may be required pursuant to Safety Requirements for the occupation of its facilities and the operation of the Company’s and its Subsidiaries’ businesses. 

(b) The Company and its Subsidiaries are, and at all times during the past thirty-six (36) months have been, in compliance in all
material respects with all Safety Requirements. 
 (c) Except as set forth on Schedule 4.19(c), neither the Company nor
any of its Subsidiaries has received any written notice, report or other written information any actual or alleged violation of Safety Requirements relating to the Company or any of its Subsidiaries that remains pending or unresolved. 

4.20 Privacy; Data Protection. The Company and its Subsidiaries have not collected any personally identifiable information
concerning users of its products, services and websites from any third parties. The Company, its Subsidiaries and their respective subcontractors have complied in all material respects with all Legal Requirements and their privacy policies relating
to the privacy of users of the Company’s and its Subsidiaries’ products, services and websites, including without limitation with respect to the use, collection, storage, disclosure and transfer of any data and personally identifiable
information collected by the Company and its Subsidiaries or by third parties having authorized access to the records of the 

  
 41 

 
Company and its Subsidiaries. The Company and its Subsidiaries and their respective subcontractors have complied in all material respects with all Legal Requirements and their privacy policies
relating to the collection, use, storage, transfer, and disclosure of any data and personally identifiable information of any employees, contractors or consultants, both in the United States and internationally. Neither the Company nor any
Subsidiary of the Company has received a complaint regarding their respective collection, use or disclosure of data, including but not limited to personally identifiable information. The execution, delivery and performance of this Agreement complies
with all Legal Requirements relating to privacy and does not violate the Company’s or its Subsidiaries’ privacy policies. True and correct copies of all such privacy policies are attached to Schedule 4.20, and the Company and its
Subsidiaries and their respective subcontractors have at all times made all privacy policy disclosures to such users or customers as required by Legal Requirements. None of such disclosures made or contained in any such privacy policy has been
inaccurate, misleading or deceptive or in violation of any Legal Requirements. The Company and its Subsidiaries have implemented and maintains a comprehensive plan, or plans, which (i) identifies internal and external risks to the security of
data and Confidential Information, including personally identifiable information; (ii) implements, monitors and improves adequate and effective administrative, electronic and physical safeguards to control those risks; (iii) maintains
notification procedures in compliance with all Legal Requirements and privacy or other policies in the case of any breach of security compromising data, including unencrypted data containing personally identifiable information; and
(iv) adequately provides for the prevention of data loss. Neither the Company nor any Subsidiary of the Company has experienced any data loss, breach of security or otherwise unauthorized access by third parties to Confidential Information,
including personally identifiable information, in the Company’s or its Subsidiaries’ possession, custody or control. 

4.21 International Transactions. The Company confirms, represents and warrants that none of the Company or any of its
Subsidiaries, whether directly, indirectly or through one or more intermediaries has ever, through and including the date of Closing: 
 (a) Made any corrupt payment to a foreign official within the meaning of (i) the Foreign Corrupt Practices Act (15 U.S.C. §§78dd-1 et seq.), (ii) the United States
(“U.S.”) mail and wire fraud statutes (18 U.S.C. §§1341 through 1343), (iii) the Travel Act (18 U.S.C. §1952), (iv) any similar or successor statutes, or (v) any regulations promulgated under the
foregoing statutes; 
 (b) Engaged in any transaction, investment, undertaking or activity with any country, person,
organization, authority or entity in violation of any of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Arms Export Control Act, the National Emergencies Act, the Immigration and Nationality Act, the
Antiterrorism and Effective Death Penalty Act, the United Nations Participation Act, the Clean Diamond Trade Act, and the Syria Accountability and Lebanese Sovereignty Act, all as amended, any similar or successor statute, any of the U.S. Commerce
Department’s Export Administration Regulations (15 C.F.R. Part 730 et seq.), any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or
executive order relating thereto. For the avoidance of doubt, (i) the regulations governed by the previous sentence include all of the regulations administered by the U.S. Department of the Treasury, Office of Foreign Assets Control
(“OFAC”), including but not limited to the Anti-

  
 42 

 
Terrorism Sanctions program, the Non-Proliferation Sanctions program, the Counter Narcotics Trafficking Sanctions program, the Diamond Trading Sanctions program and the various Country-specific
Sanctions programs, and (ii) the country, person, organization, authority or entity referred to in the previous sentence include but not limited to anyone listed in the Specially Designated Nationals List or the Blocked Persons List both
maintained and updated by OFAC, the Designated Foreign Terrorist Organizations List maintained and updated by the U.S. Department of State, Office of Counterterrorism, or any other list published by any U.S. government agency or department regarding
terrorism or money laundering; or 
 (c) Engage in any transaction, investment, undertaking or activity that conceals the
identity, source or destination of the proceeds from any category of offenses designated by the Financial Action Task Force on Money Laundering’s “The Forty Recommendations” of June 20, 2003, in violation of the laws or
regulations of the United States, including but not limited to Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, Public Law 107-56, as amended,
the Currency and Foreign Transactions Reporting Act of 1970, as amended, or the Money Laundering Control Act of 1986 as amended, or the anti-money laundering laws of any other jurisdiction in which either the Company or any Subsidiary of the Company
does business. 
 4.22 Litigation and Compliance with Law. Except as set forth on Schedule 4.22, there are
no Proceedings, pending or, to the Company’s Knowledge, threatened against or affecting the Company or any Subsidiary of the Company, at Law or in equity, or before or by any Governmental Authority or instrumentality having jurisdiction over
the Company or any Subsidiary of the Company. No notice of Proceeding, whether pending or threatened, has been received by the Company or any Subsidiary of the Company, and, to the Company’s Knowledge, there is no basis therefor. Except to the
extent set forth on Schedule 4.22, (i) since their inception, the Company and its Subsidiaries have conducted their business in material compliance with all Legal Requirements applicable to the business or the assets of the Company and
its Subsidiaries (including, HIPAA and HITECH), and (ii) the Company and its Subsidiaries currently conduct their business operations in material compliance with all Legal Requirements applicable to their respective businesses and assets.
Neither the Company nor any Subsidiary of the Company (including any employee thereof), has made any payment of funds in connection with the business or its any of its assets prohibited by Law, and no funds have been set aside to be used in
connection with the business of the Company and its Subsidiaries for any payment prohibited by Law. 
 4.23 Books and
Records. The books of account and other financial records to be transferred to the Buyer pursuant hereto are in all material respects complete and correct, are maintained in accordance with all Legal Requirements, and are accurately reflected in
the Financial Statements. The Company has provided to the Buyer and its Representatives true and complete copies of or access to all minute books or corporate records relating to the Company and its Subsidiaries. 

4.24 Bank Accounts, Letters of Credit and Powers of Attorney. Schedule 4.24 lists (a) all bank accounts, lock
boxes and safe deposit boxes relating to the business and operations of the Company and each of its Subsidiaries (including the name of the bank or other institution 

  
 43 

 
where such account or box is located and the name of each authorized signatory thereto), (b) all outstanding letters of credit issued by financial institutions for the account of the Company
and each Company Subsidiary (setting forth, in each case, the financial institution issuing such letter of credit, the maximum amount available under such letter of credit, the terms (including the expiration date) of such letter of credit and the
party or parties in whose favor such letter of credit was issued), and (c) the name and address of each person who has a power of attorney to act on behalf of the Company or any Company Subsidiary. The Company has heretofore delivered to the
Buyer true, correct and complete copies of each letter of credit and each power of attorney described in Schedule 4.24. Since August 31, 2010, no Foreign Subsidiary Cash has been distributed to the Company or HCR Information
Corporation, and the Foreign Subsidiary Cash as of the date hereof is reflected in the bank accounts and in said amounts as more specifically described in Schedule 4.24. 

4.25 Customers and Suppliers. 
 (a) Schedule 4.25(a) sets forth each customer of the Company and each Company Subsidiary who accounted for more than $10,000 of the revenues of the Company or any Company Subsidiary for the fiscal
year ended December 31, 2009, and who is expected to account for more than $10,000 of the revenues of the Company or any Company Subsidiary for the fiscal year ended December 31, 2010 (collectively, the
“Customers”). Except to the extent disclosed in Schedule 4.25(a), since December 31, 2009, no Customer of the Company or any Company Subsidiary has canceled or otherwise terminated its relationship with the
Company or such Company Subsidiary. Except to the extent disclosed in Schedule 4.25(a), no Customer has provided the Company with written notice (or to the Company’s Knowledge, oral notice) of any plan or intention to terminate, to
cancel or otherwise materially and adversely modify its relationship with the Company or any Company Subsidiary or to decrease materially its usage, purchase or distribution of the services or products of the Company or any Company Subsidiary.

 (b) Schedule 4.25(b) sets forth a list of all suppliers to whom the Company or any Company Subsidiary made payments
aggregating $10,000 or more during the fiscal year ended December 31, 2009, or expects to aggregate $10,000 or more during the fiscal year ended December 31, 2010, showing, with respect to each, the name, address and dollar volume
involved. Since December 31, 2009, no supplier has terminated its relationship with the Company. 
 4.26 Warranties to
Customers. Schedule 4.26 includes a copy of the standard terms and conditions of sale, lease or license by the Company and each Company Subsidiary (including applicable warranty and indemnity provisions). Except as disclosed in
Schedule 4.26, no product or service provided by the Company or any Company Subsidiary is subject to any guaranty, warranty, or other indemnity that extends beyond the applicable standard terms and conditions of sale, lease or license. There
is no claim, action, suit, investigation or proceeding pending against the Company or any Company Subsidiary, or to the Company’s Knowledge, threatened, relating to alleged defects in the products or services provided by the Company or any
Company Subsidiary, or the failure of any such product or service to meet agreed upon specifications and, to the Company’s Knowledge, there is no basis for any of the foregoing. 

  
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 4.27 Internal
Controls. The Company and each Company Subsidiary maintain accurate books and records reflecting their assets and liabilities and maintain proper and adequate internal accounting controls which provide reasonable assurance that
(a) transactions are executed with management’s authorization; (b) transactions are recorded as necessary to permit preparation of the consolidated financial statements of the Company in accordance with GAAP and to maintain
accountability for the Company’s consolidated assets; (c) access to the Company’s or any Company Subsidiary’s assets is permitted only in accordance with management’s authorization; (d) the reporting of the
Company’s and any Company Subsidiary’s assets is compared with existing assets as necessary to permit preparation of the consolidated financial statements of the Company in accordance with GAAP and to maintain accountability for the
Company’s consolidated assets; (e) accounts, notes and other receivables and inventory are recorded accurately, and adequate procedures are implemented to effect the collection thereof on a timely basis; and (f) there are adequate
procedures in place regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s or any Company Subsidiary’s assets. As of the date of this Agreement, there has been no fraud, whether or not
material, that involved management or other employees of the Company or any Company Subsidiary who have a significant role in the Company’s or any Company Subsidiary’s internal controls over financial reporting. 

4.28 Accounts Receivable. All accounts receivable that are reflected on the Financial Statements or on the accounting records of
the Company and its Subsidiaries as of the Closing Date represent or will represent valid obligations arising from sales actually made or services actually performed by the Company or a Subsidiary of the Company in the Ordinary Course of Business.
All accounts receivable of the Company and its Subsidiaries are reflected properly on their respective books and records, are valid receivables, and are current except as set forth in Schedule 4.28. The reserve for bad debts set forth on the
face of the Financial Statements (rather than in any notes thereto) represents the Company’s reasonable, good faith assessment of an appropriate bad debt reserve based on the facts and circumstances pertaining to said accounts receivable
calculated consistent with past practice. There is no contest, claim, defense or right of setoff under any contract with any account debtor of an account receivable relating to the amount or validity of such account receivable. Schedule 4.9
contains a complete and accurate list of all accounts receivable of the Company and its Subsidiaries as of the date of the Unaudited Financial Statements, which list sets forth the aging of each such account receivable. 

4.29 Accuracy of Information Furnished by the Company. No written representation, statement or information made or furnished by
the Company to the Buyer, including without limitation, those contained in this Agreement and the various schedules attached hereto and the other information and statements previously furnished by the Company to the Buyer, contains or shall contain
any untrue statement of a material fact or to the Company’s Knowledge, omits or shall omit any material fact necessary to make the information contained therein in light of circumstances in which they were made, not misleading. 

  
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 ARTICLE V

 REPRESENTATIONS AND WARRANTIES OF THE PRINCIPAL STOCKHOLDERS 

As a material inducement to the Buyer and the Merger Sub to enter into this Agreement, each Principal Stockholder, individually with
respect to himself, herself or itself only, hereby represents and warrants to the Buyer and the Merger Sub that, as of the date hereof and as of the Closing Date: 
 5.1 Organization and Power. With respect to each Principal Stockholder that is a legal entity, such Principal Stockholder is duly organized, validly existing and in good standing under the Legal
Requirements of the jurisdiction of its organization or formation, and has full power and authority to execute and deliver this Agreement and the Ancillary Agreements to which such Principal Stockholder is a party and to perform its obligations
hereunder and thereunder and consummate the Transaction. 
 5.2 Authorization. The execution, delivery and performance by
such Principal Stockholder of this Agreement and the Ancillary Agreements to which such Principal Stockholder is a party and the consummation of the Transaction have been duly and validly authorized by all requisite action on the part of such
Principal Stockholder, and no approval or other proceedings on his, her or its part are necessary to authorize the execution, delivery or performance of this Agreement and such Ancillary Agreements. Such Principal Stockholder has the full power to
sell, exchange, assign, transfer and deliver its shares of Company Stock to the Buyer or the Surviving Corporation, as the case may be, free and clear of all Liens. This Agreement has, been duly executed and delivered by such Principal Stockholder,
and constitutes a legal, valid and binding obligation of such Principal Stockholder enforceable against such Principal Stockholder in accordance with its terms, except as enforceability hereof or thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and limitations on the availability of equitable remedies. As of the Closing, the Ancillary Agreements to which such Principal Stockholder is a party will have been
duly executed and delivered by such Principal Stockholder, and will constitute a legal, valid and binding obligation of such Principal Stockholder enforceable against such Principal Stockholder in accordance with its terms, except as enforceability
hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Legal Requirements affecting creditors’ rights generally and limitations on the availability of equitable remedies. 

5.3 Absence of Conflicts. Neither the execution and delivery by such Principal Stockholder of this Agreement and the Ancillary
Agreements to which such Principal Stockholder is a party nor the performance by such Principal Stockholder of its obligations hereunder and thereunder in accordance with the terms of this Agreement and the Ancillary Agreements will not (with or
without the giving of notice or the lapse of time, or both): 
 (a) contravene, conflict with or result in a violation or
breach of any of the terms, conditions or provisions of the charter, bylaws, partnership agreement or similar organizational documents of such Principal Stockholder, if applicable; 

(b) contravene, conflict with or result in a material violation or breach of, or give any Governmental Authority or other Person the
right to challenge the Transaction under, any Legal Requirement applicable to such Principal Stockholder or any of such Principal Stockholder’s assets or properties, or require any consent or approval of or any notice or filing with any
Governmental Authority or other Person; or 

  
 46 

  
 (c) contravene,
conflict with or result in a material breach or default under, or give rise to any right of acceleration or termination of, any of the terms, conditions or provisions of any note, bond, lease, license, contract or other instrument or obligation to
which such Principal Stockholder is a party or by which any of such Principal Stockholder’s assets or properties is bound. 

5.4 Title. Such Principal Stockholder is the sole record and beneficial owner of the Company Stock, Options and Warrants set forth
opposite such Principal Stockholder’s name on Schedule 4.3 hereto. Except as set forth on Schedule 5.4, such Principal Stockholder is not a party to any voting trust, proxy or other contract or understanding between or among any
Persons that affects or relates to the voting or giving of written consent with respect to any outstanding security of the Company. 
 5.5 Litigation. There is no Proceeding at law or in equity pending or, to the Knowledge of such Principal Stockholder, threatened in writing against, and there is no outstanding Order applicable
to, such Principal Stockholder or the Company, or any of its Subsidiaries that seeks to restrain, enjoin, prevent or prohibit the consummation of any part of the Transaction. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES OF THE BUYER AND MERGER SUB

 As a material inducement to the Company and the Principal Stockholders to enter into this Agreement, the Buyer and the
Merger Sub hereby represent and warrant to the Company and the Principal Stockholders that as of the date hereof and as of the Effective Time: 
 6.1 Organization and Power. Each of the Buyer and the Merger Sub is a [corporation] validly existing and in good standing under the laws of the State of Delaware, with full power and authority to
enter into this Agreement and the Ancillary Agreements to which it is a party and to perform its obligations hereunder and thereunder. 
 6.2 Authorization of Transaction. Each of the Buyer and the Merger Sub has full power and authority to execute and deliver this Agreement and the Ancillary Agreements to which it is a party and to
consummate the Transaction. The execution, delivery and performance of this Agreement and the Ancillary Agreements to which the Buyer or the Merger Sub is a party and the consummation of the Transaction have been duly and validly authorized and
approved by all requisite action on the part of the Buyer and the Merger Sub and no other proceedings (corporate or otherwise) on the part of the Buyer or the Merger Sub are necessary to approve and authorize the execution and delivery of this
Agreement and the consummation of the Transaction. This Agreement has been duly executed and delivered by the Buyer and the Merger Sub and constitutes the valid and binding agreement of the Buyer and the Merger Sub enforceable against them in
accordance with its terms, except as enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Legal Requirements affecting creditors’ rights generally and limitations on the availability of
equitable remedies. As of the Closing, the Ancillary Agreements to which the Buyer or the Merger Sub is a party will have been duly executed and delivered by such Person, and will constitute a legal, valid and binding obligation of such Person
enforceable against it in accordance with its terms, 

  
 47 

 
except as enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Legal Requirements affecting creditors’ rights generally and
limitations on the availability of equitable remedies. 
 6.3 Absence of Conflicts. Neither the execution and delivery of
this Agreement nor the consummation or performance of the Transaction, will (with or without notice or lapse of time), (a) contravene, conflict with, or result in a violation of any provision of the certificate of incorporation, bylaws or
comparable organizational documents of the Buyer or the Merger Sub; (b) materially contravene, conflict with, or result in a material violation of, or give any Governmental Authority or other Person the right to challenge the Transaction under,
any Legal Requirement to which the Buyer, the Merger Sub or any of their Subsidiaries may be subject; and (c) materially contravene, conflict with, or result in a material violation of any of the terms or requirements of, or give any
Governmental Authority the right to revoke, withdraw, suspend, cancel, terminate or modify, any License that is held by the Buyer, the Merger Sub or any of their Subsidiaries. 
 6.4 Litigation. As of the date hereof, there are no Proceedings pending or, to the Knowledge of the Buyer, threatened against or affecting the Buyer at law or in equity, or before or by any
Governmental Authority, which would materially affect the performance of the Buyer or the Merger Sub or their obligations under this Agreement or the Ancillary Agreements to which the Buyer or the Merger Sub is a party or the consummation of the
Transaction. 
 6.5 Brokers’ Fees. No agent, broker, finder, investment banker or other Person, acting on behalf of
the Buyer or any of its Affiliates, is or will be entitled to any fee, commission or other payment from the Buyer or any of its Affiliates in connection with this Agreement or the Transaction. 

ARTICLE VII 

COVENANTS OF THE PARTIES 
 7.1 Access and Investigation. Between the date of this Agreement and the Closing Date, and upon reasonable advance notice received from the Buyer, the Company shall (a) afford the Buyer and
its Representatives reasonable access, during regular business hours, to the Company’s and its Subsidiaries’ personnel, properties, customers, contracts, books and records and other documents and data; (b) promptly furnish the Buyer
with copies of all such documents, information and data as the Buyer may reasonably request; (c) promptly furnish the Buyer with such additional financial, operating and other relevant data and information as the Buyer may reasonably request;
and (d) to the extent reasonably requested by the Buyer, cause its directors, officers and key employees to discuss with the Buyer the affairs, finances and accounts of the Company and its Subsidiaries. The Buyer acknowledges that any
information being provided to it or its Representatives by the Company or its Representatives pursuant to or in connection with this Agreement is subject to the terms of the Confidentiality Agreement, the terms of which are incorporated herein by
reference. 

  
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 7.2 Operation of
the Company’s Business. Except as expressly permitted or required by this Agreement, during the period commencing on the date hereof and ending on the earlier of (i) the Closing Date and (ii) the date on which this Agreement is
terminated in accordance with its terms: 
 (a) The Company and each of its Subsidiaries shall conduct its operations in the
Ordinary Course of Business and, to the extent consistent therewith, to use commercially reasonable efforts to preserve intact its business organization, keep available the services of its current senior management as a group and maintain
satisfactory relationships with any Person having business relationships with the Company or any of its Subsidiaries. 
 (b)
Neither the Company nor any of its Subsidiaries shall effect any of the following without the prior written consent of the Buyer: 
 (i) make any change in or amendment to its organizational documents or its by-laws (or comparable governing documents); 

(ii) issue or sell, or authorize to issue or sell, any capital stock or any other ownership interests, or issue or sell,
or authorize to issue or sell, any securities convertible into or exchangeable for, or options, warrants or rights to purchase or subscribe for, or enter into any arrangement or contract with respect to the issuance or sale of, any capital stock or
any other ownership interests; 
 (iii) split, combine, redeem or reclassify, purchase or otherwise acquire, or
declare, pay or set aside any dividend or make any distribution with respect to, any capital stock or its other securities; 
 (iv) make any investment in, acquisition of, or capital contributions to, any Person; 
 (v) sell, lease or otherwise dispose of any of its properties or assets; 
 (vi) amend, supplement, modify, terminate or waive any material rights under any contract or enter into a contract, except in the Ordinary Course of Business; 

(vii) incur any indebtedness for borrowed money or make any loan or advance to any other Person; 

(viii) grant or agree to grant to any officer or employee of the Company or any Subsidiary of the Company any increase in
wages or bonus, severance, profit sharing, retirement, deferred compensation, insurance or other compensation or benefits, establish any new compensation or benefit plans or arrangements or amend or agree to amend any existing Plan, except
(A) as may be required under any Legal Requirements, (B) as specifically required by the provisions of any Plan in effect on the date hereof or (C) in the Ordinary Course of Business; 

(ix) delay or defer the payment of any accounts payable; 

(x) make or authorize capital expenditures; 

  
 49 

  
 (xi)
pay, discharge or satisfy any Liabilities, other than in the Ordinary Course of Business; 
 (xii) grant any
license with respect to the Company Intellectual Property other than in the Ordinary Course of Business; 

(xiii) take any action or omit to take any action that would reasonably be expected to cause any of the Company
Intellectual Property to become invalidated, abandoned or dedicated to the public domain; 
 (xiv) accelerate or
change its policy with respect to the collection of any accounts receivable; 
 (xv) make any intercompany
transfers of Foreign Subsidiary Cash from any non-U.S. Subsidiary; or 
 (xvi) authorize any of, or commit or
agree to take any of, the foregoing actions. 
 7.3 Required Approvals. 

(a) Subject to the terms and conditions of this Agreement, the Ancillary Agreements and applicable Legal Requirements, each Party shall
use all commercially reasonable efforts to fulfill or obtain the fulfillment of the conditions to the Closing and to do or cause to be done all things necessary to cause the Closing to occur and to consummate and make effective the Transaction;
provided, however, that, none of the Parties shall be required to make (and neither the Company nor any other Person on behalf of the Company shall, without the prior written consent of the Buyer, make) any monetary expenditure,
commence or be a plaintiff in any litigation or offer or grant any material accommodation (financial or otherwise) to any third Person. 
 (b) As promptly as practicable after the date of this Agreement, but in any event within two (2) Business Days, the Company shall make all filings required by Legal Requirements to be made by it in
order to consummate the Transaction and shall cooperate with the Buyer and its Representatives with respect to all filings that the Buyer elects to make or, pursuant to Legal Requirements, is required to make in connection with the Transaction
(including providing all information necessary to make any such filing); provided that each of the Buyer and the Company shall have the right to review and provide comments on any such materials prior to their filing. 

7.4 Notification. From the date hereof until the Closing Date, the Company shall disclose to the Buyer, promptly upon discovery
thereof, in writing (in the form of updated schedules), any material variances from the representations and warranties contained in Articles IV and V which, individually or in the aggregate, have resulted in or would reasonably be expected to result
in, any condition to the obligation of any Party to effect the Transaction not being satisfied. Such disclosures shall amend and supplement the appropriate Schedules delivered on the date hereof but, except as set forth below, will not cure any
breach of any representation or warranty made in respect of the matters that are the subject of any such disclosure that would otherwise occur without giving effect to the relevant supplemental

  
 50 

 
information. Notwithstanding the foregoing, if the matter or matters giving rise to such supplement or amendment to the Schedule(s) arise out of changes or events occurring after the date of this
Agreement and not from any failure of a representation or warranty to be true and correct as of the date of this Agreement (“Post-Signing Changes”), such Post-Signing Changes shall not be deemed to result in a breach of any
representation or warranty. If the Post-Signing Changes result in a Material Adverse Change of the Company, then the Buyer and Merger Sub shall have the right to terminate this Agreement in accordance with Section 8.1(d) (without giving effect
to the cure period), in which event neither the Buyer or Merger Sub nor the Holders and the Company shall have any further obligations or liabilities to one another. 
 7.5 No Negotiation. Until such time as this Agreement shall be terminated pursuant to Section 8.1, none of the Principal Stockholders, the Company, any of its Subsidiaries or any of their or
its Representatives or Affiliates shall, and no such Person shall authorize or permit any other Person to, directly or indirectly, enter into any agreement or transaction with any Person (other than the Buyer and the Merger Sub), in each case
relating to any transaction involving the Company or any of its Subsidiaries, any purchase of any of the assets of the Company and its Subsidiaries, or any purchase of any shares of capital stock or other securities of the Company or any of its
Subsidiaries. 
 7.6 Release of Liens. Prior to the Closing Date, and other than Liens related to the
Existing Debt identified on Schedule 3.1(f)(vii), the Company shall cause to be released all Liens in and upon any of the assets of the Company and its Subsidiaries. 

7.7 Intentionally omitted. 
 7.8 Stockholder Approval. 
 (a) As soon as practicable after the date
hereof, the Company shall obtain the Sufficient Stockholder Vote, pursuant to a written stockholder consent, all in accordance with the DGCL and the Certificate of Incorporation and Company Bylaws. 

(b) Promptly following the Effective Time (and otherwise in accordance with DGCL), the Company shall deliver notice of the effectiveness
of the Merger, pursuant to the applicable provisions of the DGCL and the Company’s Bylaws and Certificate of Incorporation (the “Stockholder Notice”), to all Stockholders that did not execute such written consent
informing them that this Agreement and the Merger were adopted and approved by the stockholders of the Company and that appraisal rights are available for their Company Stock pursuant to Section 262 of the DGCL (which notice shall include a
copy of such Section 262), and shall promptly inform Stockholders’ Representative of the date on which the Stockholder Notice was sent. Notwithstanding the foregoing, the Company shall give Stockholders sufficient notice to the effect that
no Stockholder will be able to exercise appraisal rights if such Stockholder has not perfected such appraisal rights in accordance with Section 262 of the DGCL. The contact information for the Company’s shareholders shall be provided to
the Buyer to effectuate the delivery of the Stockholder Notice in compliance with this Section 7.8(b) within 48 hours following the Effective Time. 

  
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 7.9 Certain Tax
Matters. The following provisions shall govern the allocation responsibility as between the Buyer and the Holders for certain Tax matters following the Closing Date. In accordance with Section 9.2(e)(vi), and unless otherwise expressly
stated in this Section 7.9, it is the intention of the parties that the resolution of Tax matters (including the amount and payment of any Loss attributable to Tax) shall exclusively be governed by the provisions of this Section 7.9.
Notwithstanding the foregoing, the survival period for any claim of Losses attributable to Tax for which the Holders may be responsible under this Section 7.9 and Section 9.2(a)(i)(C) shall be governed by the provisions of
Section 9.1, and the aggregate amount attributable to Tax for which the Holders may be responsible under this Section 7.9 and Section 9.2(a)(i)(C) shall be subject to the provisions of Section 9.2(e)(ii). 

(a) Holders Tax Indemnification. Each of the Holders shall, severally and not jointly, based on their respective Pro Rata
Percentages, indemnify and defend the Buyer Indemnitees and hold them harmless from and against (without duplication) any Losses attributable to (i) all Taxes (or the non-payment thereof) of the Company or any of its Subsidiaries for all
Taxable periods ending on or before the Closing Date and the portion through the Tax Effective Time of any Taxable period that includes (but does not end on) the Closing Date (“Pre-Closing Tax Period”), (ii) all Taxes of
any member of an Affiliated Group of which the Company or any of its Subsidiaries (or any predecessor of any of the foregoing) is or was a member on or prior to the Closing Date, including pursuant to Treasury Regulation Section 1.1502-6 or any
analogous or similar state, local, or non-United States law or regulation, and (iii) any and all Taxes of any Person (other than the Company and its Subsidiaries) imposed on the Company or any of its Subsidiaries as a transferee or successor,
by contract or pursuant to any law, rule or regulation, which Taxes relate to an event or transaction occurring on or before the Closing Date. Notwithstanding the foregoing, only in connection with Tax Liability relating solely to any transfer
pricing dispute reflected on the Unaudited Financial Statements, Holders shall only be required to indemnify and to defend the Buyer Indemnitees and hold them harmless from and against Losses only in accordance with Section 7.9(b) below.

 (b) Transfer Pricing Exception. Notwithstanding anything to the contrary in section 7.9(a) herein, and only in
connection with Tax Liability relating solely to any transfer pricing dispute reflected on the Unaudited Financial Statements, if within 18 months following the Closing Date the Company or any of its Subsidiaries is assessed such Tax Liability that
is in excess of 125% of the Transfer Pricing Liability Estimate as reflected on the Unaudited Financial Statements for any one open tax year or a combination of years, Holders shall, severally and not jointly, based on their respective Pro Rata
Percentages, indemnify and defend the Buyer Indemnitees and hold them harmless from and against (without duplication) any Losses attributable to all such Tax Liability that exceeds 125% of the Transfer Pricing Liability Estimate. In no event shall
the Holders aggregate Liabilities under this Section 7.9(b) (or under Article IX relating to said Section 7.9(b)) exceed an amount equal to the Cap Amount. 
 (c) Time for Reimbursement. Except as provided in Section 7.9(f) (with respect to Taxes shown to be due on certain Tax Returns), the Holders shall reimburse the Buyer, the Merger Sub, the
Company or any of its Subsidiaries for any Taxes that are the responsibility of the Holders pursuant to Section 7.9 (other than 7.9(b)) herein within ten (10) Business Days after (x) payment of such Taxes by the Buyer, the Merger Sub,
the Company or any of its Subsidiaries in accordance with Section 7.9(h), and (y) presentation by the Buyer, the 

  
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Merger Sub, the Company or any of its Subsidiaries to the Stockholders’ Representative of a written request for such reimbursement, which request includes evidence of such Tax payment (but
shall be subject to the provisions of Section 9.2(e)(ii)). Reimbursement by the Holders pursuant to this section 7.9(c) shall not be subject to the Cap Amount and shall not be paid out of the Escrow Fund, except that the Buyer, the Merger Sub,
the Company or any of its Subsidiaries shall have the right, but not the obligation, to demand that payment of any reimbursement hereunder shall be made out of the Escrow Fund in the event that the Holders fail to comply with the terms of this
Section 7.9(c), and upon the payment of any such reimbursement out of the Escrow Fund the Holders shall be obligated to immediately deposit with the Escrow Fund an amount that is not less than said reimbursement amount. For the avoidance of
doubt, any claim pursuant to Section 7.9(b) shall not be governed by this Section 7.9(c) but shall be governed by and the process for making payment thereon shall be in accordance with Article IX. 

(d) Closing of Taxable Period. The Holders and the Buyer shall, to the extent permitted by applicable Legal Requirements, elect
with the relevant Governmental Authorities to close the Taxable period of the Company and its Subsidiaries at 11:59 p.m. on the Closing Date. In the case of any Taxable period that includes (but does not end on) the Closing Date (a
“Straddle Period”), the amount of any Taxes based on or measured by income or receipts of the Company or any of its Subsidiaries and the amount of any sales, use, employment or withholding Taxes of the Company
or any of its Subsidiaries shall be determined based on an interim closing of the books as of 11:59 p.m. on the Closing Date (the “Tax Effective Time”) (and for such purpose, the Taxable period of any
partnership or other pass-through entity in which the Company or any of its Subsidiaries holds a beneficial interest shall be deemed to terminate at such time) and the amount of other Taxes of the Company or any of its Subsidiaries for a Straddle
Period that relate to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire Taxable period multiplied by a fraction the numerator of which is the number of days in the Taxable period ending on and including the
Closing Date and the denominator of which is the number of days in such Straddle Period. 
 (e) Buyer and Company
Indemnification. The Buyer and the Company shall indemnify the Holders and hold them harmless from and against any Losses attributable to all Taxes (or the non-payment thereof) of the Company for which the Holders are not required to indemnify
the Company pursuant to Section 7.9(a) or 7.9(b). The Buyer and the Company shall (without duplication) reimburse each Holder for any Taxes that are the responsibility of the Buyer and the Company pursuant to this Section 7.9(e) within ten
(10) Business Days after (x) payment of such Taxes by such Holder and (y) presentation by such Holder to the Company of a written request for such reimbursement, which request includes evidence of such Tax payment. The Buyer shall not
cause or permit the Company to file any amended Tax Return relating to any Pre-Closing Tax Period that could have an adverse effect on the Holders without the prior written consent of the Stockholders’ Representative, such consent not to be
unreasonably withheld, conditioned or delayed. 
 (f) Responsibility for Filing Tax Returns. The Company shall prepare
or cause to be prepared and file or cause to be filed all Tax Returns of the Company that are due after the Closing Date, but that relate exclusively to Taxable periods ending on or before the Closing Date. Any expenses incurred by the Buyer in
preparation of said Tax Returns shall be calculated as part of the Stockholders’ Transaction Expenses. Each such Tax Return shall (i) be 

  
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delivered to the Stockholder Representative no later than ten (10) Business Days prior to filing or the due date of such Tax Return, whichever is sooner, and (ii) not be filed unless it
is approved by the Stockholder Representative prior to filing, such approval not to be unreasonably withheld, conditioned or delayed. The Buyer shall prepare or caused to be prepared and file or cause to be filed all Straddle Period Tax Returns of
the Company. Each such Tax Return shall (i) be delivered to the Stockholders’ Representative no later than ten (10) Business Days prior to filing or the due date of such Tax Return, whichever is sooner, and (ii) not filed unless,
to the extent it relates to any Pre-Closing Tax Period or portion thereof, it is approved by the Stockholders’ Representative prior to filing, such approval not to be unreasonably withheld, conditioned or delayed. The Buyer and the
Stockholders’ Representative shall consult and cooperate as to any elections to be made on Tax Returns of the Company for periods ending on or before 11:59 p.m. on the Closing Date. 

(g) Cooperation on Tax Matters. 
 (i) The Buyer and the Company, on the one hand, and the Holders, on the other hand, shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of
Tax Returns pursuant to this Section 7.9 and any Tax Contest. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information that are reasonably relevant to any such Tax Return or
Tax Contest and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Company and each Holder agree (A) to retain all books and records with respect
to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of the applicable statute of limitations (and, to the extent notified by the Buyer or the Holders, any extensions thereof)
of the respective Taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (B) to give the other Parties reasonable written notice prior to transferring, destroying or discarding any such
books and records and, if the other Party so requests, the Company or such Holder, as the case may be, shall allow the other Party to take possession of such books and records. 

(ii) The Buyer and each Holder further agree, upon request, to use reasonable efforts to obtain any certificate or other
document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the Transaction contemplated by this Agreement).

 (iii) The Buyer and each Holder further agree, upon request, to provide the other Party with all information
that either Party may be required to report pursuant to Section 6043 of the Code, Section 6043A of the Code, and all Treasury Regulations promulgated thereunder. 
 (h) Tax Contests. 
 (i) General Rule. Except as
otherwise provided in this Section 7.9(h), the Party responsible for the Taxes under Sections 7.9(a), 7.9(b), 7.9(c), 7.9(d) and 7.9(e) that 

  
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is the subject of a Tax Contest shall control and bear the cost of the conduct of such Tax Contest, including determining actions taken to pay, dispute, compromise or settle such Taxes (except
with respect to Tax Contests relating to transfer pricing matters, which shall in all cases be controlled by the Buyer and costs borne by the Buyer, subject to indemnification rights pursuant to Section 7.9(b) and Article IX); provided,
however, neither the Holders, on the one hand, nor the Buyer and the Company, on the other hand, may compromise or settle any such Tax Contest in a manner that would reasonably be expected to adversely affect the other Party or Parties with
respect to any Taxable period for which such other Party or Parties are responsible pursuant to this Section 7.9, without the prior written consent of such other Party or Parties (which consent shall not be unreasonably withheld, conditioned or
delayed). In the event a Tax Contest involves multiple Taxable periods, with respect to one or more of which the Buyer is responsible for the Taxes and one or more of which the Holders are responsible for the Taxes, then, except as otherwise
provided in this Section 7.9(h), the control and the cost of the conduct of the Tax Contest shall be shared accordingly and each Party shall cooperate fully, as and to the extent reasonably requested by the other Party, in the conduct of such
Tax Contest. 
 (ii) Straddle Periods. In the case of any Straddle Period, the Buyer shall control the
conduct of such Tax Contest, and the Holders shall have the right to participate in such Tax Contest to the extent the proceedings relate to any matter which may give rise to an indemnification payment by the Holders under this Section 7.9, or
to the extent the proceedings may materially adversely affect the Holders’ liability for Taxes relating to the Company. The Party receiving the notice of such Tax Contest will provide the other Party with notice in writing of such Tax Contest
involving the Company within thirty (30) days (unless action is required sooner, then as soon as possible) of receiving such notice from the Governmental Authority. If the non-notifying Party does not respond within thirty (30) days
(unless action is required sooner, then as soon as possible) of any such notice, such Party will be deemed to have elected not to participate in such Tax Contest. The Buyer shall not settle any such Tax Contest in a manner that would be reasonably
expected to materially adversely affect the Holders, or any of them, without the prior written consent of the Holders (which consent shall not be unreasonably withheld, conditioned or delayed). Any consent required to be given by the Holders may be
given by the Stockholders’ Representative and if given, shall be binding on all the Holders. In any Tax Contest involving a Straddle Period where Holders elect to participate, each Party shall bear its own costs for participating in such Tax
Contest, and both Parties shall cooperate in good faith before any final resolution is reached. Notwithstanding anything else set forth herein to the contrary, the Holders, acting through Stockholders’ Representative, at the Holders’
expense (including, without limitation, reimbursement by Holders of the Buyer’s and the Company’s out-of-pocket expenses incurred in connection with such contest), shall have the right to require the Company to contest any asserted
Straddle Period Tax deficiencies for which Holders would have liability under this Section 7.9. 
 (i) Tax-Sharing
Agreements. All Tax-sharing agreements or similar agreements with respect to or involving Company and its Subsidiaries shall be terminated as of the day before the Closing Date and, from and after the Closing Date, the Company and its
Subsidiaries shall not be bound thereby or have any liability thereunder. 

  
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 (j) Transfer
Taxes. All transfer, documentary, sales, use, stamp, registration and other similar Taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with the consummation
of the Transaction shall be paid one-half by the Buyer and one-half by the Holders (by their inclusion as Stockholders’ Transaction Expenses). 
 (k) For all purposes of this Agreement, and irrespective of their actual timing or treatment for Tax purposes, any deductions resulting from the payment of any amount pursuant to the Personnel Transaction
Costs shall be considered to arise in and to be properly allocable to the Tax period beginning on the day after the Closing Date and shall not be considered to arise in or to be allocable to any Pre-Closing Tax Period. 

7.10 New Employment Arrangements. Buyer will offer substantially all of the United States employees “at-will” employment
by Buyer except the employees set forth on Schedule 7.10, to be effective as of the Closing Date (or as soon as practicable thereafter), upon proof of a legal right to work in the United States. Such “at-will” employment will:
(a) be set forth in offer letters on Buyer’s standard form (each, an “Offer Letter”), (b) be subject to and in compliance with Buyer’s applicable policies and procedures, including, but not
limited to, employment background checks and the execution of an employee proprietary information agreement governing employment conduct and performance, (c) have terms, including the position and salary, which will be determined by Buyer,
(d) include, if applicable, a waiver by the Employee of any future equity-based compensation to which such employee may otherwise have been eligible, (e) supersede any prior express or implied employment agreements, arrangements,
representations, or offer letters in effect prior to the Closing Date, and (f) include agreements providing for non-competition with the business of the Company, each Subsidiary of the Company, Buyer and the Surviving Corporation,
non-solicitation of the customers and employees of the Company, each Subsidiary of the Company, Buyer and the Surviving Corporation following the termination of such employee, arbitration and release of claims. Each employee of the Company or any
Company Subsidiary who remains an employee of Buyer or the Surviving Corporation after the Closing Date shall be referred to hereafter as a “Continuing Employee.” Continuing Employees shall be eligible to receive benefits consistent with
Buyer’s applicable human resources policies. Continuing Employees shall execute the restrictive covenants agreement required to be executed by Buyer’s employees. 
 7.11 Payment of Personnel Transaction Costs. As soon as practicable after the Closing but in no event later than the next regularly scheduled payroll date (except as otherwise set forth in the
applicable employee’s transaction bonus agreement), the Buyer shall pay (i) transaction bonuses in accordance with the applicable agreement granting such bonus (other than with respect to Vincent Estrada only, in accordance with his
agreement as modified), (ii) severance for employees of the Company and its Subsidiaries terminated immediately prior to the Closing (inclusive of any accrued vacation and payroll taxes but exclusive of any sick time or personal time) and
(iii) accrued vacation time in excess of 80 hours to Continuing Employees as specifically provided for in Schedule 7.11. 

  
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 ARTICLE VIII

 TERMINATION 
 8.1 Termination Events. By written notice given prior to or at the Closing, subject to Section 8.2, this Agreement may be terminated as follows: 

(a) Automatically without any further action of any party hereto, if the Transaction has not been consummated on or prior to
October 22, 2010 (the “Closing Deadline”); 
 (b) by the Buyer, in the event of any
change that, individually or in the aggregate, has resulted in a Material Adverse Change of the Company; 
 (c) by the Buyer,
if the Company or any Principal Stockholder shall have breached any of their representations, warranties, covenants or agreements herein such that the condition to Closing set forth in either Section 3.1(a) or 3.1(b), as applicable, would not
be satisfied on the date of such termination and such breach shall not have been cured within five (5) Business Days of receipt of notice of such breach; 
 (d) by the Stockholders’ Representative, if the Buyer or the Merger Sub shall have breached any of their representations, warranties, covenants or agreements herein such that the condition to Closing
set forth in either Section 3.2(a) or 3.2(b), as applicable, would not be satisfied on the date of such termination and such breach shall not have been cured within five (5) Business Days of receipt of notice of such breach; or 

(e) by the mutual written consent of the Buyer and the Stockholders’ Representative. 

8.2 Effect of Termination. In the event of termination by any Party pursuant to Section 8.1, written notice thereof shall
promptly be given to the other Parties and the Transaction shall be terminated, without further action by any Party. If this Agreement is terminated pursuant to Section 8.1, all Liabilities and obligations of the Parties under this Agreement
will terminate, except that the obligations of the Parties in this Section 8.2, the confidentiality provisions in Section 7.1, Section 10.1, Section 10.3 and the provisions of Article IX will survive; provided,
however, that nothing herein shall relieve or release any Party from any liability arising out of fraud or any willful breach by such Party of any of its representations, warranties, covenants or agreements set forth in this Agreement, and
all rights and remedies of the non-breaching Party or Parties under this Agreement, at law or in equity, shall be preserved unimpaired. 
 ARTICLE IX 
 SURVIVAL, INDEMNIFICATION AND RELATED MATTERS 

9.1 Survival. Except as otherwise expressly set forth in this Agreement, the representations, warranties, covenants and agreements
of the Company, the Principal Stockholders, the Holders, the Buyer and the Merger Sub in this Agreement and the Ancillary Agreements, and the rights of the Parties to seek indemnification with respect thereto, shall 

  
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survive the Closing for eighteen (18) months following the Closing Date, except for the representations, warranties and indemnity obligations contained in (i) 4.16 (Employee Benefit
Plans), which shall survive until the earlier of thirty (30) days past the applicable statute of limitations (taking into account any extensions) or 11:59PM (EST) on December 31, 2014, (ii) Sections 4.1 (Organization and Corporate
Power), 4.2 (Authorization of Transaction), 4.3 (Capitalization), 4.9 (Title to Assets), 4.13 (Brokerage), 5.1 (Organization and Power), 5.2 (Authorization) and 5.4 (Title), which shall survive until the earlier of thirty (30) days past the
applicable statute of limitations or 11:59PM (EST) on December 31, 2014, and (iii) Sections 7.9(a) (Holders Tax Indemnification), 7.9(c) (Time for Reimbursement), 7.9(d) (Closing of Taxable Period), 7.9(e) (Buyer and Company Tax
Indemnification), 7.9(f) (responsibility to File Tax Returns), 7.9(g) (Cooperation on Tax Matters) and 7.9(h) (Tax Contests) which shall survive until the earlier of thirty (30) days past the applicable statute of limitations or 11:59PM (EST)
on December 31, 2014; and except as otherwise expressly set forth in this Agreement no claim for any Losses may be brought on account of any of the foregoing beyond the earlier to occur of the applicable survival period or 11:59PM (EST) on
December 31, 2014. The sections enumerated in clauses (i), (ii) and (iii) in this Section 9.1 shall be referred to herein collectively as the “Designated Representations”. Notwithstanding the foregoing,
any representation, warranty, covenant or agreement in respect of which indemnity may be sought under this Agreement, and the indemnity with respect thereto, shall survive the time at which it would otherwise terminate pursuant to this
Section 9.1 if a written notice relating to the event giving rise to such right or potential right of indemnity shall have been given to the party against whom such indemnity may be sought prior to such time. In any such case, such
representation, warranty, covenant or agreement shall survive, only for the purposes of claims for indemnity related to such event and not for the purposes of claims for indemnity related to any other event, until any claim for indemnity related to
such event is resolved. 
 9.2 Indemnification. 
 (a) Indemnity Obligation of the Holders. 
 (i) Subject to
the terms, conditions and limitations contained in this Article IX, each of the Holders, severally and not jointly, based on their respective Pro Rata Percentages, shall indemnify, defend and hold harmless the Company and the other Buyer Indemnitees
from and against, and pay to the Company and, if appropriate, the other Buyer Indemnitees, any loss, deficiency, damage, liability, claim, action, obligation, cost, Tax, expense or other charge (including interest, penalties, reasonable legal,
accounting, consultant and expert fees and expenses) (each, a “Loss”), which the Company or the other Buyer Indemnitees may suffer, sustain or become subject to: 

(A) as a result of the breach by the Company of any representation or warranty made by the Company in this Agreement or
any Ancillary Agreement; 
 (B) as a result of the breach by the Company of any covenant or other agreement made
by the Company in this Agreement or any Ancillary Agreement; 
 (C) in respect of Taxes in accordance with
Section 7.9, whether or not disclosed on any Schedule; 

  
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 (D) as
a result of any Third Party Proceeding arising out of or relating to the acquisition of the capital stock of HCRIC, Inc by the Company from Manor Care, Inc. pursuant to that certain Stock Purchase Agreement, dated November 7, 2006, by and
between the Company and Manor Care, Inc. and any transactions contemplated therein, whether or not disclosed on any Schedule; 
 (E) as a result of any Third Party Proceeding arising out of or relating to any Actions by Stockholders in connection with or arising from the consummation of the transactions contemplated herein,
including the exercise of dissenters rights pursuant to Section 262 of the DGCL; 
 (F) as a result of any
Third Party Proceeding arising out of or relating to any prior discussions, letters of intent or agreements with Medquist Inc. entered into prior to the Closing, whether or not disclosed on any Schedule; 

(G) as a result of the loss of a Terminated Customer, whether or not disclosed on any Schedule; 

(H) relating to any Existing Debt as of the Closing Date that is not paid at Closing, other than as set forth in
Schedule 3.1(f)(vii) relating to the Existing Debt arising from the agreements with RBS Citizens, N.A. referenced therein; 
 (I) arising from or otherwise relating to any Stockholders’ Transaction Expense not deducted from the Merger Consideration as set forth in Schedule 2.5, whenever arising or submitted to the
Company; and 
 (J) relating to any litigation matters disclosed in Schedule 4.22 of the Schedules.

 (ii) Subject to the terms, conditions and limitations contained in this Article IX, and only in the event
that (i) the Escrow Amount is no longer held in escrow pursuant to the terms of the Escrow Agreement or the Escrow Fund has been reduced to zero and (ii) Losses payable pursuant to Section 9.2(a)(i) have not been fully satisfied, each
of the Principal Stockholders, severally and not jointly, based on their respective Principal Stockholder Pro Rata Percentages, shall indemnify, defend and hold harmless the Company and the other Buyer Indemnitees from and against, and pay to the
Company, and, if appropriate, the other Buyer Indemnitees, without duplication of any amounts payable pursuant to Section 9.2(a)(i), any unpaid portion of such Losses. The provisions of this Section 9.2(a)(ii) shall not apply to
Section 9.2(a)(i)(C) and Section 7.9 of this Agreement, other than subsection 7.9(b) (Transfer Pricing Exception) which shall be governed by this Section 9.2(a)(ii). For the avoidance of doubt, the indemnity obligations contained in
Section 9.2(a)(i)(C) and Section 7.9 (other than subsection 7.9(b) which shall be subject to the 18 month survival period set forth in Section 7.9(b)), shall survive until the earlier of thirty (30) days past the applicable
statute of limitations or 11:59PM (EST) on December 31, 2014, shall not be subject to the Cap Amount, and shall not be paid out of the Escrow Amount (except as provided in Section 7.9(c)) but rather shall be paid by the Holders or the
Buyer, as the case may be, in accordance with the terms of Section 7.9 herein. The foregoing indemnity obligations shall, however, be subject to the limitations set forth in Section 9.2(e)(ii) below. 

  
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 (iii)
Subject to the terms and conditions contained in this Article IX, each Principal Stockholder (as to himself, herself or itself only) shall indemnify, defend and hold harmless the Buyer, its Affiliates and their Respective Representatives
(collectively, the “Buyer Indemnitees”) from and against, and pay to the Buyer Indemnitees, any Loss that any Buyer Indemnitee may suffer, sustain or become subject to arising from, relating to or otherwise in respect of any
breach by such Principal Stockholder of: (A) any representation or warranty made by such Principal Stockholder in Article V or any Ancillary Agreement, or (B) the covenants or other agreements made by the Principal Stockholders in this
Agreement or any Ancillary Agreement. 
 (iv) Subject to Section 9.2(a)(vi), with respect to each
indemnification payment required to be made by the Holders pursuant to this Section 9.2 other than Section 9.2(a)(ii) and Section 9.2(a)(iii) (and subject to the limitations and conditions set forth in Sections 9.2(d) and 9.2(e)):

 (A) Each Holder shall be liable for an amount equal to his, her or its Pro Rata Percentage of the amount of
such indemnification payment. 
 (B) Except with respect to the indemnity obligations contained in
Section 7.9(a), Section 7.9(c), Section 7.9(d), Section 7.9(f) and Section 9.2(a)(i)(C), during the period the Escrow Amount is held in escrow pursuant to the terms of the Escrow Agreement, the Company and the other Buyer
Indemnitees shall seek payment first out of the Escrow Amount pursuant to the Escrow Agreement. The provisions of this Section 9.2(a)(iv)(B) shall not apply to Section 9.2(a)(i)(C) and Section 7.9 of this Agreement, other than
subsection 7.9(b) (Transfer Pricing Exception) which shall be governed by Section 9.2(a)(iv)(B)). For the avoidance of doubt, the indemnity obligations contained in Section 9.2(a)(i)(C) and Section 7.9 (other than subsection 7.9(b)
which shall be subject to the 18 month survival period set forth in Section 7.9(b)), shall survive until the earlier of thirty (30) days past the applicable statute of limitations or 11:59PM (EST) on December 31, 2014, shall not be
subject to the Cap Amount, and shall not be paid out of the Escrow Amount (except as provided in subsection 7.9(c)) but rather shall be paid by the Holders or the Buyer, as the case may be, in accordance with the terms of Section 7.9 herein.
The foregoing indemnity obligations shall, however, be subject to the limitations set forth in Section 9.2(e)(ii) below. 
 (v) Subject to Section 9.2(a)(vi), with respect to each indemnification payment required to be made by a Principal Stockholder pursuant to Section 9.2(a)(ii) (subject to the limitations and
conditions set forth in Sections 9.2(d) and 9.2(e)), and except with respect to the indemnity obligations contained in Section 7.9(a), Section 7.9(c), Section 7.9(d), Section 7.9(f) and Section 9.2(a)(i)(C), during the
period the Escrow Amount is held in escrow pursuant to the terms of the Escrow Agreement, the Buyer Indemnitees shall seek payment first out of the Escrow Fund pursuant to the 

  
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Escrow Agreement. If any amounts are paid out of the Escrow Fund pursuant to Section 9.2(a)(ii) or as a result of any breach of a representation contained in a Letter of Transmittal, the
Stockholders’ Representative shall cause the Escrow Agent to reduce the amounts that would otherwise be payable from the Escrow Fund to the Holder whose breach created such indemnification payment (it being the intent of the Parties, as between
the Holders, that such Holder should pay all amounts arising from its breach). 
 (vi) Notwithstanding anything
in this Agreement to the contrary, for so long as the Escrow Amount is held in escrow pursuant to the terms of the Escrow Agreement, (A) the Company and the Buyer Indemnitees shall be entitled to seek payment out of the Escrow Fund for any
Losses that are indemnifiable hereunder (including under subsection 7.9(c) hereof) as if the Holders and Principal Stockholders are jointly and severally liable for all indemnification obligations and (B) references to the Holders or the
Principal Stockholders providing indemnity based on their respective Pro Rata Percentages or Principal Stockholder Pro Rata Percentages shall not be read as imposing any limitation on the amount of Losses that the Company or the Buyer Indemnitees
are entitled out of the Escrow Funds. 
 (b) Buyer’s Indemnity Obligation. Subject to the terms and conditions
contained in this Article IX, the Buyer agrees to indemnify the Holders and their respective members, officers, employees, controlling persons and Affiliates (collectively, the “Stockholder Indemnitees”) and to hold them
harmless from and against any Loss which any Stockholder Indemnitee may suffer, sustain or become subject to, as a result of (i) the breach by the Buyer or the Merger Sub of any representation or warranty made by the Buyer or the Merger Sub in
this Agreement or any Ancillary Agreement, (ii) the breach by the Buyer or the Merger Sub of any covenant or other agreement made by the Buyer or the Merger Sub in this Agreement or any Ancillary Agreement or (iii) Taxes payable by the
Buyer, the Merger Sub or the Company pursuant to Section 7.9. 
 (c) Procedure. 

(i) If any Stockholder Indemnitee or any Buyer Indemnitee seeks indemnification under this Section 9.2, such party
(the “Indemnified Party”) shall give written notice to the party or parties from whom or which such Indemnified Party is seeking indemnification under this Agreement (the “Indemnifying Party”) of the
facts and circumstances giving rise to the claim, which in the case of a Buyer Indemnitee shall mean notice to the Stockholders’ Representative. In that regard, if any Proceeding shall be brought or asserted in writing by any third party
(“Third Party Proceeding”) for which an Indemnified Party may seek indemnification pursuant to this Section 9.2, the Indemnified Party shall promptly notify the Indemnifying Party of the same in writing, specifying in
reasonable detail (if known) the basis of such claim and the facts pertaining thereto, and the Indemnifying Party, if it so elects by written notice to the Indemnified Party prior to the expiration of the Dispute Period, shall assume and control the
defense thereof (and shall consult with the Indemnified Party with respect thereto), including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of expenses. Notwithstanding the foregoing, the failure of an
Indemnified Party to give any notice contemplated by this Section 9.2(c)(i) will not affect the rights or obligations 

  
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of any party hereunder except and only to the extent that, as a result of such failure, the Indemnifying Party’s ability to remedy, contest, defend or settle with respect to such Third Party
Proceeding is actually prejudiced thereby. 
 (ii) If the Indemnifying Party elects to assume and control the
defense, prior to the expiration of the Dispute Period as provided in Section 9.2(c)(i) above, the Indemnified Party shall have the right to employ counsel separate from counsel employed by the Indemnifying Party in any such Proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel employed by the Indemnified Party shall be at the expense of the Indemnified Party, unless (A) the employment thereof has been specifically authorized by the
Indemnifying Party in writing, (B) there exists a conflict of interest between the interests of the Indemnified Party and the Indemnifying Party, or (C) the Indemnifying Party has failed to assume the defense and employ counsel; provided
that the Indemnifying Party shall only be entitled to assume the defense of a Third Party Proceeding if (1) such Indemnified Party agrees in writing to be fully responsible for all Losses relating to such Third Party Proceeding, or
(2) such Third Party Proceeding is not a Proceeding that seeks an injunction or equitable relief against the Indemnified Party (but in that case, only to such extent). Notwithstanding anything to the contrary in the foregoing, in no event shall
the Indemnifying Party be liable for the fees and expenses of more than one counsel (in addition to any local counsel) for all Indemnified Parties in connection with any one Third Party Proceeding or separate but similar or related Third Party
Proceedings in the same jurisdiction arising out of the same general allegations or circumstances. The Indemnifying Party shall not be liable for any settlement of any Third Party Proceeding that is effected without the written consent of the
Indemnifying Party. 
 (iii) If the Indemnifying Party notifies the Indemnified Party that it does not dispute
the claim described in notice contemplated by Section 9.2(c)(i) or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim described in such notice, the Loss in the amount specified in
the notice will be conclusively deemed a liability of the Indemnifying Party under Section 9.2(a) and the Indemnifying Party shall pay the amount of such Loss (subject to the provisions of this Article IX) to the Indemnified Party on demand.

 (d) Calculation of Loss. 
 (i) In calculating the amount of any Loss hereunder, the amount of such Loss shall be reduced by any amounts actually recovered by the Indemnified Party under insurance policies (net of the costs of such
collection). 
 (ii) The Parties will, to the extent permitted by law, treat any payment or receipt of Losses or
indemnification under this Article IX as an adjustment to the Merger Consideration on all Tax Returns. 
 (e)
Limitations. The following provisions shall apply notwithstanding any other provision contained in this Article IX or in Article VII hereof: 
 (i) Except in respect of any Loss in connection with claims arising from fraud or willful misconduct on the part of the Buyer, the Principal Stockholders or the Company in connection with the Transaction
or a breach of a Designated Representation, the aggregate liability for indemnification pursuant to Section 7.9(b), Sections 9.2(a)(i)(A), 9.2(a)(ii) (as it relates to Losses payable pursuant to Section 9.2(a)(i)(A)),
Section 9.2(a)(i)(G), and 9.2(a)(iii) shall not exceed the Cap Amount. 

  
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 (ii) In
no event shall the aggregate of all Losses under this Agreement, including under Article IX or Article VII for which the Holders or the Principal Stockholders may be liable exceed the Merger Consideration, and (y) in no event shall any
particular Holder or Principal Stockholder’s liability for Losses under this Article IX or under Article VII exceed such Person’s Pro Rata Percentage of the Merger Consideration. 

(iii) Except in respect of any Loss in connection with claims arising from fraud or willful misconduct on the part of the
Buyer, the Principal Stockholders or the Company in connection with the Transaction or a breach of a Designated Representation, in no event shall any Party be liable pursuant to Section 9.2(a)(i)(A), 9.2(a)(iii)(A) or 9.2(b) unless and until
the aggregate amount of all such Losses exceeds $50,000 (the “Basket”), after which point the Holders, the Principal Stockholders or the Buyer, as applicable, shall be liable for the amount of all such Losses. 

(iv) Losses shall not include any punitive damages, consequential damages, damages for lost profits or damages for
diminution in value other than with respect to (A) fraud and willful misconduct, or (B) any such damages awarded to a Third Party in connection with a Third Party Proceeding. 

(v) Losses attributable to Section 9.2(a)(i)(G) shall be calculated solely in accordance with the Customer Loss
Liquidated Damages definition. 
 (vi) Losses attributable to Taxes shall be solely resolved in accordance with
Article VII. 
 (f) Materiality. Each of the representations and warranties that contains any “Material Adverse
Effect,” “in all material respects,” or other materiality (or correlative meaning) qualification shall be deemed to have been given as though there were no such qualification for purposes of determining the amount of Losses under this
Article IX, but not for purposes of determining the accuracy of any representation or warranty. 
 (g) Exclusive
Remedies. Except for injunctive action or other equitable remedies, or fraud or willful misconduct, the remedies provided in this Article IX shall be exclusive remedies of the Parties after the Closing in respect of any matter arising out of or
in connection with this Agreement or any Ancillary Agreement. 
 (h) With respect to the exceptions for “fraud” and
“willful misconduct” contained in this Article IX in a cause of action by the Buyer against any Person arising hereunder for “fraud” or “willful misconduct,” in no event shall any Holder be liable for

  
 63 

 
any Losses recoverable from said Person arising from said fraud or willful misconduct. The foregoing shall not otherwise limit the Buyer’s right to recover Losses under this Article IX
which may be the subject of alternative indemnifiable claims hereunder, subject at all times to the limitations applicable to any such claims under this Article IX.
 9.3 Manner of Payment. 
 (a) In the event that the Escrow Amount is no
longer held in escrow pursuant to the terms of Escrow Agreement or the Escrow Fund has been reduced to zero, any indemnification owing to a Buyer Indemnitee by any Holder (including any Principal Stockholder) pursuant to this Article IX shall be
effected within fifteen (15) Business Days after the determination thereof by wire transfer of immediately available funds from such Holder to an account designated in writing by the applicable Buyer Indemnitee. 

(b) Any indemnification owing to a Stockholder Indemnitee by the Buyer pursuant to this Article IX shall be effected within fifteen
(15) Business Days after the determination thereof by wire transfer of immediately available funds from the Buyer to an account designated in writing by the applicable Stockholder Indemnitee. 

ARTICLE X 

ADDITIONAL AGREEMENTS 
 10.1 Press Releases and Announcements. No press releases or other announcements to the employees, customers or suppliers of the Company related to this Agreement, any Ancillary Agreement or the
Transaction shall be issued without the mutual approval of the Buyer and the Stockholders’ Representative; provided, however, that the Buyer shall issue a press release after the stock market closes on October 21, 2010. 

10.2 Further Assurances. The Parties hereto each agree to execute such other documents or agreements or do such other acts as may
be reasonably necessary or desirable for the implementation of this Agreement and the consummation of the Transaction. In addition, the Buyer agrees to cooperate reasonably with the Stockholders’ Representative, at Stockholders’
Representatives expense, to the extent the Stockholders’ Representative requests access to documents, employees or data in the event that the Stockholders become the subject of an audit or investigation by a Governmental Authority. 

10.3 Expenses. Except as otherwise provided herein, the Buyer and the Merger Sub on the one hand and the Company and the Holders
on the other hand will pay all of their own fees, costs and expenses (including fees, costs and expenses of legal counsel, investment bankers, brokers or other representatives and consultants and appraisal fees, costs and expenses) incurred in
connection with the negotiation of this Agreement, the performance of their obligations hereunder and the consummation of the Transaction. 
 10.4 Stockholders’ Representative. Beecken Petty O’Keefe & Company, LLC has been irrevocably constituted and appointed stockholder’s representative (the
“Stockholders’ Representative”) for the Holders listed on Schedule 2.5 hereof (each a “Preferred Holder” and 

  
 64 

 
collectively, the “Preferred Holders”), as such Preferred Holders’ agent and attorney-in-fact, with full power and authority to act, including full power of
substitution, in his, her or its name and on his, her or its behalf with respect to all matters arising from or in any way relating to this Agreement, the Escrow Agreement and any other agreement entered into in connection with this Agreement
(including the Ancillary Agreements) or the Transaction, including to do all things and to perform all acts required or deemed advisable, in its sole discretion, in connection with the Transaction as fully as such Preferred Holder could if then
personally present and acting alone. Without limitation, (i) any communication or other delivery validly delivered to the Stockholders’ Representative shall be deemed to have been validly delivered to each such Preferred Holder,
(ii) any consent given or waiver of any provision of this Agreement, the Escrow Agreement or any other agreement entered into in connection with this Agreement, by the Stockholders’ Representative shall be binding upon each Preferred
Holder, and (iii) except as otherwise provided in Section 11.1, the Stockholders’ Representative is hereby authorized to execute for and on behalf of each Preferred Holder any amendment to this Agreement, the Escrow Agreement or any
other agreement entered into in connection with this Agreement. This appointment of agency and this power of attorney is coupled with an interest and shall be irrevocable and shall not be terminated by any Principal Stockholder or by operation of
law. Neither the Stockholders’ Representative nor any agent employed by it shall incur any liability to any Preferred Holder by virtue of the failure or refusal of the Stockholders’ Representative for any reason to consummate the
Transaction or relating to the performance of its other duties hereunder or any of its omissions or actions with respect thereto. The Preferred Holders, jointly and severally, agree to indemnify the Stockholders’ Representative, his successors,
assigns, agents, attorneys and affiliates (the “Stockholders’ Representative Parties”) and to hold the Stockholders’ Representative Parties harmless against any and all losses, liabilities or expenses incurred without bad faith
on the part of the Stockholders’ Representative and arising out of or in connection with his duties as Stockholders’ Representative, including the reasonable costs and expenses incurred by the Stockholders’ Representative in defending
against any claim or liability in connection herewith or the Escrow Agreement. 
 ARTICLE XI 

MISCELLANEOUS 
 11.1 Amendment. This Agreement may be amended or modified in whole or in part at any time by an agreement in writing among the Company, the Buyer, the Merger Sub and the Stockholders’
Representative; provided, however, that any amendment which adversely and disproportionately affects a particular Principal Stockholder relative to the other Principal Stockholders shall also require the written approval of such
Principal Stockholder. 
 11.2 Waiver. Any term or provision of this Agreement may be waived in writing at any time by
the Buyer, the Company, the Merger Sub and the Stockholders’ Representative; provided, however, that any waiver which adversely and disproportionately affects a particular Principal Stockholder relative to the other Principal
Stockholders, shall also require the written approval of such Principal Stockholder. Any waiver effected pursuant to this Section 11.2 shall be binding. No failure to exercise, and no delay in exercising, any right, power or privilege shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude the exercise of any other right, power or privilege. No waiver of any breach of any covenant or agreement hereunder shall be deemed a
waiver of a preceding or subsequent breach of the same or any other covenant or agreement. 

  
 65 

  
 11.3 Notices.
All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery when personally delivered, (b) one (1) Business Day after being sent by reputable
overnight courier service (charges prepaid), (c) if sent by facsimile, when sent (if received prior to 5:00 PM (local time of the recipient) on a Business Day (or otherwise the next Business Day), or (d) on the date of the next Business
Day following the date indicated on the return receipt if delivered by registered or certified mail (postage prepaid, return receipt requested). Such notices, demands and other communication shall be sent to the to the intended recipient as set
forth on Schedule 11.3, or to such other address or to the attention of such other Person as the recipient Party has specified by prior written notice to the sending Party. All notices, demands and other communications hereunder may be given
by any other means (including electronic mail), but shall not be deemed to have been duly given unless and until it is actually received by the intended recipient. 
 11.4 Binding Agreement; Assignment. This Agreement and all the provisions hereof will be binding upon and inure to the benefit of the Parties and their respective successors, heirs, beneficiaries,
representatives and permitted assigns; provided, however, that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned (i) by the Company without the prior written consent of the Buyer;
(ii) by any Principal Stockholder without the prior written consent of the Company and the Buyer; or (iii) by the Buyer without the prior written consent of the Company, except that upon written notice to the Company and the
Stockholders’ Representative, the Buyer may (A) make a collateral assignment of its rights hereunder to any lender to the Buyer or any of its Affiliates or (B) assign its rights and obligations hereunder to one or more of its
wholly-owned Affiliates so long as the Buyer remains liable for all of its obligations under this Agreement. 
 11.5
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under
applicable law and if the rights or obligations of any Party hereto under this Agreement will not be materially and adversely affected thereby, (a) such provision will be fully severable, (b) this Agreement will be construed and enforced
as if such illegal, invalid or unenforceable provision had never comprised a part hereof, and (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance here from. Upon such determination that any term or provision is illegal, invalid or incapable of being enforced, the Company, the Buyer and the Stockholders’ Representative shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner so that the Transaction may be fulfilled to the extent possible. 

11.6 No Strict Construction. The language used in this Agreement will be deemed to be the language jointly chosen by the Parties
hereto to express their mutual intent, and no rule of strict construction will be applied against any Person. No provision of this Agreement will be interpreted in favor of, or against, either of the parties hereto by reason of the extent to which
either such Party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof. 

  
 66 

  
 11.7 Captions.
The captions used in this Agreement are for convenience of reference only and do not constitute a part of this Agreement and will not be deemed to limit, characterize or in any way affect any provision of this Agreement, and all provisions of this
Agreement will be enforced and construed as if no captions had been used in this Agreement. 
 11.8 Entire Agreement.
This Agreement (including the Ancillary Agreements and the Exhibits and Schedules hereto and thereto) and the Confidentiality Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all
prior agreements and understandings, both oral and written, among the Parties with respect to the subject matter hereof; provided that, this Agreement shall not supersede or in any way modify the terms of the Confidentiality Agreement, which
agreement shall remain in full force and effect. 
 11.9 Counterparts. This Agreement may be executed in one or more
counterparts (including by facsimile), each of which shall be deemed an original but all of which taken together will constitute one and the same instrument. 
 11.10 Governing Law; Venue. 
 (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware. 
 (b) Each of the Parties (i) consents to submit itself to the
exclusive personal jurisdiction of the courts of the State of Delaware, located in the County of New Castle, or the United States District Court for the District of Delaware (and appellate courts from any of the foregoing), in the event any dispute
arises out of this Agreement or the Transaction, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that any action relating to this
Agreement or the Transaction shall be brought exclusively in the courts of the State of Delaware, located in the County of New Castle, or the United States District Court for the District of Delaware (and appellate courts from any of the foregoing).

 11.11 Waiver of Jury Trial. EACH OF THE BUYER, THE PRINCIPAL STOCKHOLDERS, THE STOCKHOLDERS’ REPRESENTATIVE, ON
BEHALF OF THE STOCKHOLDERS, AND THE COMPANY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF
THE BUYER OR THE COMPANY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. 
 11.12 Parties in
Interest. This Agreement is for the sole benefit of the Parties hereto and their permitted assigns and, except as provided under Section 7.9 and Article IX, nothing herein express or implied shall give or be construed to give to any Person,
other than the Parties hereto and such permitted assigns, any legal or equitable rights hereunder. 

  
 67 

  
 11.13 Exhibits and
Schedules. The Exhibits and Schedules constitute a part of this Agreement and are incorporated into this Agreement for all purposes. 
 11.14 Certain Interpretive Matters and Definitions. Unless the context otherwise requires, (i) all references to Sections, Articles or Schedules are to Sections, Articles or Schedules of or to
this Agreement, (ii) each term defined in this Agreement has the meaning assigned to it, (iii) “or” is disjunctive but not necessarily exclusive, (iv) words in the singular include the plural and vice versa, (v) words
of any gender include each other gender; the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (vi) each accounting term
not otherwise defined herein has the meaning assigned to it in accordance with GAAP, (vii) the terms “liabilities” and “obligations” means all such matters of any nature, whether fixed or contingent, known or unknown, or
arising under contract, law, equity or otherwise, and (viii) the word “including” and similar terms following any statement will not be construed to limit the statement to matters listed after such word or term, whether or not a
phrase of nonlimitation such as “without limitation” is used. All references to “$” or dollar amounts will be to lawful currency of the United States of America. Any representation or warranty contained herein as to the
enforceability of a contract shall be subject to the effect of any bankruptcy, insolvency, reorganization, moratorium or other similar Legal Requirement affecting the enforcement of creditors’ rights generally and to general equitable
principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 [Signature
Pages Follow] 

  
 68 

  
 SIGNATURE PAGES
TO THE AGREEMENT AND PLAN OF MERGER 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first above written. 
  

							
	BUYER:	  	COMPANY:
		
	Transcend Services, Inc.	  	Spryance, Inc.
				
	By:	  	/s/ Larry G. Gerdes	  	By:	  	/s/ Vincent Estrada
	Name:	  	Larry G. Gerdes	  	Name:	  	Vincent Estrada
	Title:	  	Chief Executive Officer	  	Title:	  	Chief Executive Officer
		
	MERGER SUB:	  	PRINCIPAL STOCKHOLDERS:
		
	Transcend Acquisition Corporation	  	 Beecken Petty O’Keefe Fund II, L.P. and
 Beecken Petty O’Keefe QP Fund II, L.P., as

	By:	  	/s/ Larry G. Gerdes	  	Tenants in Common
	Name:	  	Larry G. Gerdes	  		  	
	Title:	  	Chief Executive Officer	  	By:	  	 Beecken Petty O’Keefe & Company II,
 LP, their General Partner

				
		  		  	By:	  	 Beecken Petty O’Keefe & Company,
 LLC, its General Partner

				
		  		  	By:	  	/s/ Thomas Schlesinger
		  		  	Name:	  	Thomas Schlesinger
		  		  	Title:	  	Manager and Partner
			
		  		  	STOCKHOLDERS REPRESENTATIVE:
			
		  		  	Beecken Petty O’Keefe & Company, LLC
				
		  		  	By:	  	/s/ Thomas Schlesinger
		  		  	Name:	  	Thomas Schlesinger
		  		  	Title:	  	Manager and Partner

  
 69First Supplemental Indenture

  
 Exhibit 4.1

 EXECUTION VERSION 
  

 
 TEXAS COMPETITIVE ELECTRIC
HOLDINGS COMPANY LLC 
 AND 
 TCEH FINANCE, INC. 
 AND EACH OF THE GUARANTORS PARTY HERETO

  
  

FIRST SUPPLEMENTAL INDENTURE 
 Dated as of October 20, 2010 
 To the Indenture dated as of
October 6, 2010 
  
  

THE BANK OF NEW YORK 
 MELLON TRUST COMPANY, N.A. 
 TRUSTEE 

 
  

  
 First Supplemental
Indenture (this “First Supplemental Indenture”), dated as of October 20, 2010, among Texas Competitive Electric Holdings Company LLC, a Delaware limited liability company, and TCEH Finance, Inc., a Delaware corporation
(collectively, the “Issuer”), the Guarantors party hereto and The Bank of New York Mellon Trust Company, N.A., as Trustee. 
 W I T N E S S E T H 
 WHEREAS, the Issuer, the Guarantors (as defined in the
Existing Indenture referred to below) and the Trustee have entered into an Indenture, dated as of October 6, 2010 (the “Existing Indenture”), providing for the issuance of $335,905,000 aggregate principal amount of 15% Senior
Secured Second Lien Notes due 2021 (the “Initial Second Lien Notes”); 
 WHEREAS, Section 9.01 of the
Existing Indenture provides, among other things, that the Issuer, the Guarantors and the Trustee may amend the Existing Indenture to provide for the issuance of additional series of debt of the Issuer constituting Required Debt in accordance with
the Existing Indenture; and 
 WHEREAS, the Issuer has duly authorized the creation of an issue of $350,000,000 aggregate
principal amount of 15% Senior Secured Second Lien Notes due 2021, Series B (the “Initial Series B Second Lien Notes”); 
 WHEREAS, as disclosed in the Offering Memorandum (defined herein), the Issuer intends to apply $153,978,825 of the net proceeds of the offering of the Initial Series B Second Lien Notes (the
“Concurrent Purchase Proceeds”) to repurchase and retire, on or about the Series B Second Lien Notes Issue Date (defined herein), approximately $226 million principal amount of the Issuer’s existing 10.25% Senior Notes due 2015
and 10.25% Senior Notes due 2015, Series B, acquired by an initial purchaser in connection with the offering of the Initial Series B Second Lien Notes (the “Concurrent Note Purchase”), with the remaining $189,021,175 of the net
proceeds of the offering to be deposited into the Escrow Account (defined herein); 
 WHEREAS, the Issuer and the Guarantors
desire to amend the Existing Indenture to provide for the issuance of the Initial Series B Second Lien Notes and to make certain other changes that provide additional rights or benefits to the holders of the Initial Second Lien Notes; 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of all Persons who are now or hereafter become Holders of Second Lien Notes and Series B Second Lien Notes, hereby enter into this First Supplemental Indenture
and agree as follows: 
 Section 1. DEFINITIONS. 
 1.1 Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Existing Indenture. 

1.2 For all purposes of this First Supplemental Indenture, except as otherwise herein expressly provided or unless the context otherwise
requires: (i) the words “herein,” “hereof” and “hereby” and other words of similar import used in this First Supplemental Indenture refer to this First Supplemental Indenture as a whole and not to any particular
section hereof and (ii) the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Existing Indenture. 

  
 Section 2. CHANGES TO CERTAIN
PROVISIONS 
 2.1 Amendments to Article 1. 
 (a) The following definitions shall be added to Section 1.01 and replace any existing definitions (as applicable) in the Existing Indenture prior to the date hereof: 

“144A Global Note” means a Global Note substantially in the form of Exhibit A-1 (in the case of the Second
Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto, as the case may be, bearing the Global Note Legend, the Private Placement Legend and the Tax Legend (if applicable) and deposited with or on behalf of, and
registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A. 

“Additional Interest” means all additional interest then owing pursuant to the applicable Registration Rights Agreement.

 “Additional Second Lien Notes” means additional Second Lien Notes (other than the Initial Second Lien Notes
and Exchange Notes issued in exchange for such Initial Second Lien Notes) issued from time to time under this Indenture in accordance with Sections 2.01(d), 2.02, 4.09 and 4.12 hereof, as part of the same series as the Initial Second Lien Notes.

 “Additional Notes” means Additional Second Lien Notes and Additional Series B Second Lien Notes. 

“Additional Series B Second Lien Notes” means additional Series B Second Lien Notes (other than the Initial Series B
Second Lien Notes and Exchange Notes issued in exchange for such Initial Series B Second Lien Notes) issued from time to time under this Indenture in accordance with Sections 2.01(d), 2.02, 4.09 and 4.12 hereof, as part of the same series as the
Initial Series B Second Lien Notes; provided, that any Additional Series B Second Lien Notes must either (a) be issued for cash and all of such cash proceeds must be deposited into the Escrow Account or an escrow account that is subject
to the same terms and conditions as those of the Escrow Agreement, including those relating to permitted use of escrowed funds, or (b) following such time as all funds in the Escrow Account or such other escrow account have been finally applied
for the purposes permitted under Section 4.20 hereof and no further funds remain in such accounts, be issued in exchange solely for term loans outstanding under the TCEH Senior Secured Facilities and/or the Issuer’s 10.25% Senior Notes due
2015, 10.25% Senior Notes due 2015, Series B and/or 10.50%/11.25% Senior Toggle Notes due 2016, that are in all cases retired and cancelled concurrently with the issuance of such Additional Series B Second Lien Notes. 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with
Section 2.06 hereof, substantially in the form of Exhibit A-1 or Exhibit A-2 as applicable, hereto, except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the
Global Note” attached thereto. 
 “Exchange Notes” means any notes issued in exchange for the Notes
pursuant to the applicable Registration Rights Agreement or similar agreement. 
 “First Supplemental
Indenture” means the First Supplemental Indenture, dated as of October 20, 2010, among the Issuer, the Guarantors and the Trustee. 

  
 2 

  
 “Global
Notes” means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially in the form of
Exhibit A-1 (in the case of the Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto, as the case may be, and that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto, issued in accordance with Section 2.01, 2.06(a), 2.06(b)(iii), 2.06(b)(iv), 2.06(d)(ii), 2.06(d)(iii) or 2.06(f) hereof. 

“Initial Notes” means the Initial Second Lien Notes and the Initial Series B Second Lien Notes. 

“Initial Second Lien Notes” has the meaning set forth in the recitals hereto. 

“Initial Series B Second Lien Notes” has the meaning set forth in the recitals hereto. 

“Issue Date” means the first date on which any Notes are issued pursuant to this Indenture, which was October 6,
2010. 
 “Notes” means the Initial Second Lien Notes and the Initial Series B Second Lien Notes (including, in
each case, any Exchange Notes issued in exchange therefor), and more particularly means any Note authenticated and delivered under this Indenture. For all purposes of this Indenture, the term “Notes” shall also include any Additional
Second Lien Notes and Additional Series B Second Lien Notes that may be issued under this Indenture. The Second Lien Notes and the Series B Second Lien Notes (including, in each case, any Exchange Notes issued in exchange therefor) are separate
series of Notes, but shall be treated as a single class for all purposes under this Indenture, except as set forth herein. For purposes of this Indenture, all references to Notes to be issued or authenticated upon transfer, replacement or exchange
shall be deemed to refer to Notes of the applicable series. 
 “Offering Memorandum” means the offering
memorandum, dated October 15, 2010, relating to the sale of the Initial Series B Second Lien Notes. 

“Registration Rights Agreement” means, as applicable, (1) the Registration Rights Agreement relating to the Initial
Second Lien Notes, dated as of the Issue Date among the Issuer, the Guarantors and the initial purchasers of the Initial Second Lien Notes, (2) the Registration Rights Agreement relating to the Initial Series B Second Lien Notes, dated as of
the date of the First Supplemental Indenture, among the Issuer, the Guarantors and the initial purchasers of the Initial Series B Second Lien Notes and (3) with respect to any Additional Notes, any registration rights agreement among the Issuer
and the other parties thereto relating to the registration by the Issuer of such Additional Notes under the Securities Act. 

“Regulation S Global Note” means a Global Note in the form of Exhibit A-1 (in the case of the Second
Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto, bearing the Global Note Legend, the Private Placement Legend and the Tax Legend (if applicable) and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Regulation S of the applicable series. 
 “Second Lien Notes” means the Initial Second Lien Notes and any Additional Second Lien Notes. 
 “Series B Second Lien Notes Issue Date” means the first date on which any Series B Second Lien Notes were issued pursuant to the First Supplemental Indenture. 

  
 3 

  
 “Series B
Second Lien Notes” means the Initial Series B Second Lien Notes and any Additional Series B Second Lien Notes. 

“Unrestricted Global Note” means a Global Note, substantially in the form of Exhibit A-1 (in the case of the
Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto, that bears the Global Note Legend and the Tax Legend (if applicable) and that has the “Schedule of Exchanges of Interests in the Global Note”
attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary, representing Global Notes that do not bear and are not required to bear the Private Placement Legend. 

(b) The following definitions shall be added to Section 1.01 and shall be applicable solely with respect to the Series B Second Lien
Notes: 
 “Escrow Account” shall have the meaning ascribed in the Escrow Agreement. 

“Escrow Agent” shall have the meaning ascribed in the Escrow Agreement. 

“Escrow Agreement” means, the Pledge and Escrow Agreement, dated as of October 20, 2010, is by and among TCEH and
TCEH Finance, as pledgors, The Bank of New York Mellon Trust Company, N.A., in its capacity as trustee under the First Supplemental Indenture and any other Eligible Supplemental Indenture (as defined therein) that may be entered into, and The Bank
of New York Mellon Trust Company, N.A., in its capacity as escrow agent (the “Escrow Agent”). 

“Escrow Proceeds Offer” shall have the meaning specified in Section 4.20(d). 

“Excess Escrow Proceeds Use Notice” shall have the meaning ascribed in the Escrow Agreement. 

“Required Debt” means, with respect to any action, on any date, the outstanding principal amount of: 

(1) the Notes (including any Additional Notes); and 

(2) securities that constitute Pari Passu Secured Indebtedness designated as Required Debt in any Officer’s
Certificate delivered to the Trustee 
 at such date, other than, in each case, any such debt beneficially owned by the Issuer or its
Affiliates, voting as a single class, except to the extent prohibited by law; provided that (a) Required Debt shall only include debt described in clause (2) of this definition to the extent such debt would require the consent of
the holders of the debt described in this definition voting as a single class to take such action, except to the extent described below in clauses (b) and (c); (b) if any amendment, waiver or other action would disproportionately affect
the holders of the Second Lien Notes, the Series B Second Lien Notes or any other series of Pari Passu Secured Indebtedness, Required Debt shall mean the Second Lien Notes, the Series B Second Lien Notes or such other series of Pari Passu Secured
Indebtedness, as the case may be, voting as a single class and the debt described in clauses (1) and (2) voting as a single class, and (c) if any amendment, waiver or other action would affect (i) only the Second Lien Notes,
(ii) only the Series B Second Lien Notes or (iii) only any other series of Pari Passu Secured Indebtedness, Required Debt shall mean the Second Lien Notes, the Series B Second Lien Notes or such other series of Pari Passu Secured
Indebtedness, as the case may be, voting as a single class without any other series of debt. 
 Notwithstanding the foregoing,
with respect to the taking of any action with respect to a Default or an Event of Default or the exercise of any rights or remedies with respect to an Event of Default, 

  
 4 

 
Required Debt shall mean the Second Lien Notes, the Series B Second Lien Notes and any other series of Pari Passu Secured Indebtedness described in clause (2) of this definition voting
together, only to the extent such Default or Event of Default applies to each such series of debt in the same manner and only to the extent the holders of each such series of debt have the right to take such action or exercise such rights or
remedies. 
 (c) The following definitions shall be added to the table in Section 1.02: 

 

			
	 Term
	  	Defined in Section
		
	 “Escrow Offer Amount”
	  	4.20(e)(i)
	 “Escrow Offer Period”
	  	4.20(e)(i)
	 “Escrow Offer Purchase Date”
	  	4.20(e)(i)
	 “Escrow Proceeds Offer”
	  	4.20(d)

 2.2 Amendments to Article 2.

  

	 	2.2.1	Paragraph (a) of Section 2.01 shall be deleted and replaced with the following: 

(a) General. The Notes and the Trustee’s certificate of authentication shall be substantially in the form of
Exhibit A-1 (in the case of the Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage. Each
Note shall be dated the date of its authentication. The Notes shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
  

	 	2.2.2	Paragraph (b) of Section 2.01 shall be deleted and replaced with the following: 

(b) Global Notes. Notes issued in global form shall be substantially in the form of Exhibit A-1 (in the case of the
Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto (including, in each case, the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto).
Notes issued in definitive form shall be substantially in the form of Exhibit A-1 (in the case of the Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto (but without, in each case, the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note shall represent such of the outstanding Notes as shall be specified in the “Schedule of Exchanges of Interests
in the Global Note” attached thereto and each shall provide that it shall represent up to the aggregate principal amount of Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as applicable, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. 

 

	 	2.2.3	The fourth paragraph of paragraph (d) of Section 2.01 shall be deleted and replaced with the following: 

Additional Notes of any series ranking pari passu with the Initial Notes of such series may be created and issued from time to
time by the Issuer without notice to or consent of the Holders and shall be consolidated with and form a single class with the Initial Notes of such series and shall have the same terms as to status, redemption or otherwise as the Initial Notes of
such series; provided that the Issuer’s 

  
 5 

 
ability to issue Additional Notes shall be subject, among other things, to the Issuer’s compliance with Sections 4.09 and 4.12 hereof. The Second Lien Notes and the Series B Second Lien
Notes are each a separate series of Notes but shall be treated as a single class of securities under this Indenture, except as otherwise stated herein. As a result, except as otherwise provided for in this Indenture, Holders of each series of Notes
will not have separate rights to, among other things, give notice of Defaults or to direct the Trustee to exercise remedies during an Event of Default or otherwise. Except as otherwise stated herein, the Notes offered by the Issuer and any
Additional Notes subsequently issued under this Indenture shall be treated as a single class for all purposes under this Indenture, including waivers, amendments, redemptions and offers to purchase. Unless the context requires otherwise, references
to “Notes” for all purposes under this Indenture include any Additional Notes that are actually issued. Any Additional Notes shall be issued with the benefit of an indenture supplemental to this Indenture. Each series of Notes are a
separate series of debt, but will be treated as a single class with other series of Required Debt for certain actions and voting as set forth in this Indenture. 
  

	 	2.2.4	Section 2.02 shall be deleted and replaced with the following: 

 At least one Officer shall execute the Notes on behalf of the Issuer by manual or facsimile signature. 
 If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be valid. 

A Note shall not be entitled to any benefit under this Indenture or be valid or obligatory for any purpose until authenticated
substantially in the form of Exhibit A-1 (in the case of the Second Lien Notes) or Exhibit A-2 (in the case of the Series B Second Lien Notes) hereto, as the case may be, by the manual signature of the Trustee. The signature shall
be conclusive evidence that the Note has been duly authenticated and delivered under this Indenture. 
 On the Issue Date, the
Trustee shall, upon receipt of a written order of the Issuer signed by an Officer (an “Issuer Authentication Order”) authenticate and deliver the Initial Second Lien Notes specified in such Issuer Authentication Order. On the date
of this First Supplemental Indenture, the Trustee shall, upon receipt of an Issuer Authentication Order, authenticate and deliver the Initial Series B Second Lien Notes. In addition, at any time, and from time to time, the Trustee shall, upon
receipt of an Issuer Authentication Order, authenticate and deliver any Additional Notes or Exchange Notes, for an aggregate principal amount specified in such Issuer Authentication Order for such Additional Notes or Exchange Notes. 

The Trustee may appoint an authenticating agent acceptable to the Issuer to authenticate Notes. An authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the
Issuer. 
 2.3 Amendments to Article 3. 
  

	 	2.3.1	Section 3.01 shall be deleted and replaced with the following: 

 If the Issuer elects to redeem the Second Lien Notes or the Series B Second Lien Notes, as the case may be, pursuant to Section 3.07 hereof, it shall furnish to the Trustee, at least five Business
Days (or such lesser number of days as shall be acceptable to the Trustee) before notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to Section 3.03 hereof but not more than 60 days before a Redemption
Date, an Officer’s Certificate setting forth (i) the paragraph or subparagraph of such Notes and/or Section of this Indenture pursuant to which the redemption shall occur, (ii) the Redemption Date, (iii) the principal amount
of the series of Notes to be redeemed and (iv) the redemption price. 

  
 6 

  

	 	2.3.2	Paragraph (a) of Section 3.02 shall be deleted and replaced with the following: 

 If less than all of the Second Lien Notes or the Series B Second Lien Notes, as the case may be, are to be redeemed or purchased in an offer to purchase at any time, the Trustee shall select the Notes of
such series to be redeemed or purchased (a) if the series of Notes to be redeemed are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which such series of Notes
are listed, (b) on a pro rata basis to the extent practicable or (c) by lot or such similar method in accordance with the procedures of DTC. 
  

	 	2.3.3	Section 3.06 shall be deleted and replaced with the following: 

 Upon surrender of a Note that is redeemed or purchased in part, the Issuer shall issue and, upon receipt of an Issuer Authentication Order, the Trustee shall authenticate for the Holder at the expense of
the Issuer a new Note of the same series equal in principal amount to the unredeemed or unpurchased portion of the Note surrendered representing the same indebtedness to the extent not redeemed or purchased; provided that each new Second Lien
Note and Series B Second Lien Note shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. It is understood that, notwithstanding anything in this Indenture to the contrary, only an Issuer Authentication Order
and not an Opinion of Counsel or Officer’s Certificate is required for the Trustee to authenticate such new Note. 
  

	 	2.3.4	Section 3.07 shall be deleted and replaced with the following: 

 (a) At any time prior to October 1, 2015, the Issuer may redeem each series of Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the series of Notes to be
redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Additional Interest, if any, to, the applicable date of redemption (the “Redemption Date”), subject to the right of Holders of such series of
Notes of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date. 
 (b) Prior to
October 1, 2013, the Issuer may, at its option, on one or more occasions, redeem up to 35% of the aggregate principal amount of each series of Notes at a redemption price equal to 115.00%, in the case of the Second Lien Notes, or 115.00%, in
the case of the Series B Second Lien Notes, of the aggregate principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the Redemption Date, subject to the right of Holders of the series of Notes to be redeemed of
record on the relevant Record Date to receive interest due on the relevant Interest Payment Date, with the net cash proceeds of one or more Equity Offerings; provided that at least 50% of the sum of the original aggregate principal amount of
such series of Notes issued under this Indenture and any Additional Notes of such series of Notes issued under this Indenture remains outstanding immediately after the occurrence of each such redemption; and provided further that each
such redemption occurs within 90 days of the date of closing of each such Equity Offering. Notice of any redemption upon any Equity Offerings may be given prior to the redemption thereof, and any such redemption or notice may, at the Issuer’s
option and discretion, be subject to one or more conditions precedent, including, but not limited to, completion of the related Equity Offering. 
 (c) Except pursuant to clause (a) and (b) of this Section 3.07, the Notes will not be redeemable at the Issuer’s option prior to October 1, 2015. 

  
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 (d) From and after
October 1, 2015, the Issuer may redeem each series of Notes, in whole or in part at the redemption prices (expressed as percentages of principal amount of the series of Notes to be redeemed) set forth below, plus accrued and unpaid
interest and Additional Interest, if any, to the applicable Redemption Date, subject to the right of Holders of such series of Notes of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date if redeemed
during the twelve-month period beginning on October 1 of each of the years indicated below: 
 Second Lien Notes:

  

					
	Year	  	Percentage	 
	 2015
	  	 	107.50	% 
	 2016
	  	 	105.00	% 
	 2017
	  	 	102.50	% 
	 2018 and thereafter
	  	 	100.00	% 

 Series B Second Lien
Notes: 
  

					
	Year	  	Percentage	 
	 2015
	  	 	107.50	% 
	 2016
	  	 	105.00	% 
	 2017
	  	 	102.50	% 
	 2018 and thereafter
	  	 	100.00	% 

 Notice of
any redemption may be given prior to the redemption thereof, and any such redemption or notice may, at the Issuer’s option and discretion, be subject to one or more conditions precedent. 

(e) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

 2.4 Amendments to Article 4. 
 (a) The following amendments specified in subsections 2.4.1 through 2.4.8 hereof shall be made to Article 4 of the Existing Indenture with respect to the Second Lien Notes and the Series B Second Lien
Notes: 
  

	 	2.4.1	Paragraph (b)(17) of Section 4.07 shall be amended to add the words “outstanding on the Issue Date” after the words “EFH Corp. Notes” in
subclause (A)(x) thereof. 

  

	 	2.4.2	Paragraph (b)(1) of Section 4.09 shall be amended by deleting clauses (a) and (b) thereof and replacing such clauses with the following:

 (a) the Series B Second Lien Notes and, without duplication, the related Subsidiary Guarantees issued on the
Series B Second Lien Notes Issue Date and (b) the Second Lien Notes and, without duplication, the related Subsidiary Guarantees thereof issued on the Issue Date, in each case to the extent not classified as incurred under
Section 4.09(b)(12)(b) hereof) under 

  
 8 

  

	 	2.4.3	Paragraph (b)(2) of Section 4.09 shall be deleted and replaced with the words “Intentionally Omitted.” 

 

	 	2.4.4	Paragraph (b)(3) of Section 4.09 shall be deleted and replaced with the following: 

(3) Indebtedness of TCEH and its Restricted Subsidiaries in existence on the Issue Date (other than Indebtedness described in
clauses (1) and (2) of this Section 4.09(b) and any Indebtedness outstanding under the TCEH Senior Secured Facilities on the Issue Date), including the Existing Notes (including any PIK interest which may be paid with respect thereto
and guarantees thereof); 
  

	 	2.4.5	Paragraph (b)(12) of Section 4.09 shall be amended by deleting the parenthetical contained in clause (b) thereof and replacing it the following:

 (which shall include (x) the Series B Second Lien Notes and, without duplication, the related Subsidiary
Guarantees issued on the Series B Second Lien Notes Issue Date and (y) the Second Lien Notes and, without duplication, the related Subsidiary Guarantees thereof issued on the Issue Date, in each case to the extent not classified as incurred
under Section 4.09(b)(1) hereof) 
  

	 	2.4.6	Paragraph (j) of Section 4.10 shall be deleted and replaced with the following: 

(j) Pending the final application of any Net Proceeds pursuant to this Section 4.10, the holder of such Net Proceeds may apply such
Net Proceeds temporarily to reduce Indebtedness outstanding under a revolving credit facility or otherwise invest such Net Proceeds in any manner not prohibited by this Indenture. 

 

	 	2.4.7	Clauses (a) and (b) of the first paragraph of Section 4.12 shall be deleted and replaced with the following: 

(a) Liens securing the Second Lien Notes and the related subsidiary guarantees thereof issued on the Issue Date, (b) Liens securing
Indebtedness permitted to be incurred under Credit Facilities, including any letter of credit relating thereto and the Series B Second Lien Notes and the Subsidiary Guarantees, that was permitted by the terms of this Indenture to be incurred
pursuant to Section 4.09(b)(1) hereof and 
  

	 	2.4.8	Section 4.19 of the Existing Indenture shall be deleted and replaced with the following: 

The Issuer shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any
cash consideration to or for the benefit of any Holder of Required Debt for any consent, waiver or amendment of any of the terms or provisions of this Indenture, the Notes of any series or the Security Documents unless such consideration is offered
to be paid and is paid to all Holders of Required Debt that are QIBs and that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 

  
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 (b) The
following amendment specified in subsection 2.4.9 hereof shall be made to Article 4 of the Existing Indenture solely with respect to the Series B Second Lien Notes: 
  

	 	2.4.9	The following Section 4.20 shall be added to the Indenture but shall be applicable solely with respect to the Series B Second Lien Notes: 

Section 4.20 Escrow of Proceeds; Escrow Proceeds Offer. 

(a) Immediately upon the issuance of the Initial Series B Second Lien Notes or any Additional Series B Second Lien Notes, the Issuer
shall deposit all cash proceeds from such issuance into the Escrow Account (or, if the Escrow Agreement is no longer in effect, an escrow account that is subject to the same terms and conditions as those of the Escrow Agreement, including those
relating to permitted use of escrowed funds); provided, however, that with respect to the issuance of the Initial Series B Second Lien Notes, the amount of cash proceeds to be deposited into the Escrow Account shall be $189,021,175,
together with any Concurrent Purchase Proceeds that are not applied to a Concurrent Note Purchase within 10 Business Days following the Series B Second Lien Notes Issue Date. 
 (b) All of the 10.25% Senior Notes due 2015 and 10.25% Senior Notes due 2015, Series B that are repurchased by the Issuer on the Series B Second Lien Notes Issue Date or within 10 Business Days thereof in
connection with a Concurrent Note Purchase shall be immediately retired and cancelled, and evidence of such retirement and cancellation shall be provided to the Trustee. 

(c) Prior to March 31, 2013, so long as no Event of Default has occurred and is continuing, the Issuer shall be
permitted to request that funds be released from the Escrow Account and transferred to or at the direction of the Issuer only to fund the payment, repayment or prepayment of term loans outstanding under the TCEH Senior Secured Facilities or to
repurchase principal amounts outstanding under the Issuer’s 10.25% Senior Notes due 2015, 10.25% Senior Notes due 2015, Series B or 10.50%/11.25% Senior Toggle Notes due 2016, and the Issuer shall not request that funds be released from the
Escrow Account and transferred to or at the direction of the Issuer for any other purpose. In the event that any funds released from the Escrow Account at the request of the Issuer are not applied for the purposes set forth in this
Section 4.20(c) within 10 Business Days after such release and transfer, the Issuer shall return such funds to the Escrow Account in accordance with the terms of the Escrow Agreement. Additionally, the Issuer shall cause any Concurrent Purchase
Proceeds that have not been applied to a Concurrent Note Purchase by the 10th Business Day following the Series B Second Lien Notes Issue Date to be deposited into the Escrow Account in accordance with the terms of the Escrow Agreement. 

(d) In the event that on March 31, 2013, any funds in the Escrow Account have not been released in accordance with
Section 4.20(c) hereof, the Issuer shall make an offer (the “Escrow Proceeds Offer”) to purchase the maximum principal amount of Series B Second Lien Notes that may be purchased using such unused escrow funds, at a purchase
price of 100% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the purchase date. The Issuer shall fund the payment of accrued and unpaid interest and Additional Interest, if any, to the
purchase date, with respect to any Series B Second Lien Notes purchased in the Escrow Proceeds Offer, as well as any expenses of the Escrow Proceeds Offer, with funds other than the Escrow Proceeds. 

i. Within five (5) Business Days following March 31, 2013, the Issuer shall send notice of such Escrow Proceeds
Offer, if required, to each Holder of Series B Second Lien Notes in the manner set forth in Section 4.20(e) hereof, with a copy to the Trustee. 
 ii. Upon the expiration of the Offer Period for such Escrow Proceeds Offer, the Issuer shall deliver an Officer’s Certificate to the Trustee, setting forth (1) the aggregate principal amount of
Series B Second Lien Notes tendered in such Escrow Proceeds Offer, (2) the aggregate principal amount of Series B Second Lien Notes to be purchased in such Escrow Proceeds Offer 

  
 10 

 
and the corresponding amount of Escrow Proceeds to be released from the Escrow Account to fund such purchase, (3) the remaining amount of funds in the Escrow Account, if any, and
(4) the Escrow Offer Purchase Date. 
 iii. On the Escrow Offer Purchase Date for the Escrow Proceeds Offer,
the Issuer shall deliver any Series B Second Lien Notes purchased in the Escrow Proceeds Offer to the Trustee for cancellation. Upon such cancellation, the Trustee shall execute and deliver to the Escrow Agent the Excess Escrow Proceeds Use Notice.

 (e) In the event that, pursuant to this Section 4.20, the Issuer shall be required to commence an Escrow Proceeds Offer
with respect to the Series B Second Lien Notes, it shall follow the procedures specified below. 
 i. The Escrow
Proceeds Offer shall remain open for a period of not less than 20 Business Days or greater than 40 Business Days following its commencement, except to the extent that a longer period is required by applicable law (the “Escrow Offer
Period”). No later than five Business Days after the termination of the Escrow Offer Period (the “Escrow Offer Purchase Date”), the Issuer shall apply all Escrow Proceeds (the “Escrow Offer Amount”), to the
purchase of Series B Second Lien Notes tendered in response to the Escrow Proceeds Offer. Payment for any Series B Second Lien Notes so purchased shall be made in the same manner as interest payments are made. 

ii. If the Escrow Offer Purchase Date is on or after a Record Date and on or before the related Interest Payment Date, any
accrued and unpaid interest up to but excluding the Purchase Date, shall be paid to the Person in whose name a Series B Second Lien Note is registered at the close of business on such Record Date, and no additional interest shall be payable to
Holders who tender Series B Second Lien Notes pursuant to the Escrow Proceeds Offer. 
 iii. Upon the
commencement of an Escrow Proceeds Offer, the Issuer shall send, by first-class mail, a notice to each of the Holders, with a copy to the Trustee. The notice shall contain all instructions and materials necessary to enable such Holders to tender
Notes pursuant to such Escrow Proceeds Offer. Any Escrow Proceeds Offer shall be made to all Holders of Series B Second Lien Notes. The notice, which shall govern the terms of the Escrow Proceeds Offer, shall state: 

(A) that the Escrow Proceeds Offer is being made pursuant to this Section 4.20, and the length of time the Escrow
Proceeds Offer shall remain open; 
 (B) the Escrow Offer Amount, the purchase price and the Escrow Offer
Purchase Date; 
 (C) that the Issuer shall fund the payment of accrued and unpaid interest and Additional
Interest, if any, to the Escrow Offer Purchase Date, with respect to any Series B Second Lien Notes purchased in the Escrow Proceeds Offer, as well as any expenses of the Escrow Proceeds Offer, with funds other than the Escrow Proceeds; 

(D) that any Series B Second Lien Note not tendered or accepted for payment shall continue to accrue interest; 

  
 11 

  
 (E)
that, unless the Issuer defaults in making such payment, any Series B Second Lien Note accepted for payment pursuant to the Escrow Proceeds Offer shall cease to accrue interest on and after the Escrow Offer Purchase Date; 

(F) that Holders electing to have a Series B Second Lien Note purchased pursuant to an Escrow Proceeds Offer, as
applicable, may elect to have Series B Second Lien Notes purchased in the minimum amount of $2,000 or an integral multiple of $1,000 in excess thereof; 
 (G) that Holders electing to have a Series B Second Lien Note purchased pursuant to an Escrow Proceeds Offer shall be required to surrender the Series B Second Lien Note, with the form entitled
“Option of Holder to Elect Purchase” attached to the Series B Second Lien Note completed, or transfer by book-entry transfer, to the Issuer, the Depositary, if appointed by the Issuer, or a Paying Agent at the address specified in the
notice at least three days before the Escrow Offer Purchase Date; 
 (H) that Holders shall be entitled to
withdraw their election if the Issuer, the Depositary or the Paying Agent, as the case may be, receives, not later than the expiration of the Escrow Offer Period, a telegram, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Series B Second Lien Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Series B Second Lien Note purchased; 

(I) that if the aggregate principal amount of Series B Second Lien Notes surrendered by the holders thereof exceeds the
Escrow Offer Amount, the Trustee shall select the Series B Second Lien Notes to be purchased on a pro rata basis based on the principal amount of the Series B Second Lien Notes tendered (with such adjustments as may be deemed
appropriate by the Trustee so that only Series B Second Lien Notes in denominations of $2,000, or an integral multiple of $1,000 in excess thereof, shall be purchased); and 

(J) that Holders whose Series B Second Lien Notes were purchased only in part shall be issued new Series B Second Lien
Notes equal in principal amount to the unpurchased portion of the Series B Second Lien Notes surrendered (or transferred by book-entry transfer) representing the same indebtedness to the extent not repurchased. 

iv. On or before the Escrow Offer Purchase Date, the Issuer shall, to the extent lawful, (1) accept for payment, on a
pro rata basis to the extent necessary, the Escrow Offer Amount of Series B Second Lien Notes or portions thereof validly tendered pursuant to the Escrow Proceeds Offer, or if less than the Escrow Offer Amount has been tendered, all
Series B Second Lien Notes tendered and (2) deliver or cause to be delivered to the Trustee the Series B Second Lien Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Series B Second
Lien Notes or portions thereof so tendered. 
 v. The Issuer, the Depositary or the Paying Agent, as the case may
be, shall promptly mail or deliver to each tendering Holder an amount equal to the purchase price of the Series B Second Lien Notes properly tendered by such Holder and accepted by the Issuer for purchase, and the Issuer shall promptly issue a new
Series B Second Lien Note, and the Trustee, upon receipt of a Issuer Authentication Order, shall authenticate and mail or deliver (or cause to be transferred by book-entry) such new Series B Second Lien Note to such Holder (it being understood that,
notwithstanding anything in this Indenture to the contrary, no Opinion of 

  
 12 

 
Counsel or Officer’s Certificate is required for the Trustee to authenticate and mail or deliver such new Series B Second Lien Note) in a principal amount equal to any unpurchased portion of
the Series B Second Lien Note surrendered representing the same indebtedness to the extent not repurchased; provided that each such new Series B Second Lien Note shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess
thereof. Any Series B Second Lien Note not so accepted shall be promptly mailed or delivered by the Issuer to the Holder thereof. The Issuer shall publicly announce the results of the Escrow Proceeds Offer on or as soon as practicable after the
Escrow Offer Purchase Date. 
 Other than as specifically provided in this Section 4.20, any Escrow Proceeds
Offer shall be made pursuant to the applicable provisions of Sections 3.01 through 3.06 hereof. 
 (f) During the period
beginning March 31, 2013 and continuing until the Escrow Agent has received the executed Excess Escrow Proceeds Use Notice, funds held in the Escrow Account may not be transferred to or at the direction of the Issuer and the Issuer shall not
request that any funds held in the Escrow Account be so transferred. Following receipt of the Excess Escrow Proceeds Use Notice by the Escrow Agent, the Issuer may request that any remaining funds held in the Escrow Account be released and
transferred for the purposes set forth in Section 4.20(c); provided, that in the event that any funds released from the Escrow Account at the request of the Issuer are not applied for the purposes set forth in Section 4.20(c) within
10 Business Days after such release and transfer, the Issuer shall return such funds to the Escrow Account in accordance with the terms of the Escrow Agreement. 
 (g) Promptly upon the payment, repayment or prepayment of term loans outstanding under the TCEH Senior Secured Facilities or to repurchase principal amounts outstanding under the Issuer’s 10.25%
Senior Notes due 2015, 10.25% Senior Notes due 2015, Series B or 10.50%/11.25% Senior Toggle Notes due 2016 using funds released from the Escrow Account, the Issuer shall provide the Trustee with evidence reasonably satisfactory to it of such
payment, repayment, prepayment or repurchase. 
 (h) Any indebtedness paid, repaid, prepaid or repurchased using funds held in
the Escrow Account shall be immediately retired or cancelled, and the Issuer shall provide the Trustee with evidence reasonably satisfactory to it of such retirement or cancellation. 

(i) The Trustee may, but is not obligated to, unless acting at the direction of the Holders of at least a majority in principal amount of
the outstanding Series B Second Lien Notes, request that all or a portion of the funds held in the Escrow Account be released and delivered to the Trustee or otherwise as the Trustee shall direct to the Escrow Agent, upon the occurrence of an Event
of Default specified in Section 6.01(a)(3)(b) hereof or if an Event of Default that could result in the acceleration of the payment of principal, interest, premium, if any, of the Series B Second Lien Notes has occurred and is continuing.
During the continuation of such Event of Default, funds held in the Escrow Account may not be transferred to or at the direction of the Issuer and the Issuer shall not request that any funds held in the Escrow Account be so transferred. 

2.5 Amendments to Article 5. 
 The references to “Registration Rights Agreement” contained in Section 5.01(a)(2) and (a)(5) of the Existing Indenture shall be deleted and replaced with “Registration Rights
Agreements.” 

  
 13 

  
 2.6 Amendments to
Article 6. 
 (a) The following amendments specified in subsections 2.6.1 through 2.6.4 hereof shall be made to
Article 6 of the Existing Indenture with respect to the Second Lien Notes and the Series B Second Lien Notes: 
  

	 	2.6.1	The introductory clause of paragraph (a) of Section 6.01 shall be amended by inserting the words “with respect to any series of Notes” after
“wherever used herein.” 

  

	 	2.6.2	Paragraphs (a)(1), (a)(2) and (a)(3) of Section 6.01 shall be amended by inserting the words “of such series” after references to “the Notes”
that appear in such paragraphs. 

  

	 	2.6.3	The first sentence of the first paragraph of Section 6.02 shall be amended by insering inserting the words “of the affected series” after “the then
outstanding Notes.” 

  

	 	2.6.4	Section 6.08 shall be amended by inserting the words “of the applicable series” after “the Notes.” 

(b) The following amendments specified in subsections 2.6.5 and 2.6.6 hereof shall be made to Article 6 of the Existing
Indenture but shall be applicable solely with respect to the Series B Second Lien Notes: 
  

	 	2.6.5	Paragraph (a)(3) of Section 6.01 shall be amended solely with respect to the Series B Second Lien Notes by adding the following clause (b):

 (3) (b) failure by the Issuer to apply any funds released from the Escrow Account in accordance with the Escrow
Agreement (including to consummate an Escrow Proceeds Offer) or to deposit or return such funds to the Escrow Account in accordance with the Escrow Agreement. 
  

	 	2.6.6	Section 6.07 shall be amended solely with respect to the Series B Second Lien Notes by inserting the words “or an Escrow Proceeds Offer” at the end of
the parenthetical clause contained therein. 

 2.7 Amendments to Article 9. 

 

	 	2.7.1	Paragraph (a)(11) of Section 9.01 shall be deleted and replaced with the following: 

(11) to conform the text of this Indenture, the Guarantees, the Notes or any Security Document to any provision of (a) in the case of
the Second Lien Notes, the “Description of the Notes” (in Appendix B to the Exchange Agreement), or (b) in the case of the Series B Second Lien Notes, the “Description of the Notes” section of the Offering Memorandum, in
either case, to the extent that such provision in the applicable “Description of the Notes” was intended to be a verbatim recitation of a provision of this Indenture, the Guarantees, the Notes or any Security Document; 

  
 14 

  

	 	2.7.2	The penultimate paragraph of Section 9.01 shall be deleted and replaced with the following: 

Notwithstanding Section 9.02 of this Indenture, the Issuer, the Guarantors and the Trustee may amend or supplement
this Indenture at any time after the Issue Date, without the consent of any Holder, to provide for the issuance of Additional Notes or additional series of debt of the Issuer constituting Required Debt in accordance with this Indenture;
provided that such Additional Notes or additional series of debt is issued in compliance with the provisions of this Indenture, including those described in Sections 4.09 and 4.12, and such amendments or supplements are limited to changes
necessary or appropriate in order to issue such Additional Notes or debt under this Indenture. 
 2.8 Amendments to Article 10.

  

	 	2.8.1	The first clause of Section 10.06 shall be amended by inserting the words “other than the Parent Guarantor” after “Guarantor”.

 2.9 Amendments to Exhibits. 
  

	 	2.9.1	Exhibit A-2 to this First Supplemental Indenture shall be added to the Existing Indenture. 

 

	 	2.9.2	Exhibits B, C and D to the Existing Indenture shall be deleted and replaced by Exhibits B, C and D to this First Supplemental Indenture. 

2.10 Other Amendments. 
  

	 	2.10.1	References to “Exhibit A” shall be replaced with “Exhibit A-1”. 

 

	Section 3.	RATIFICATION OF EXISTING INDENTURE; FIRST SUPPLEMENTAL INDENTURE PART OF EXISTING INDENTURE. 

Except as expressly amended hereby, the Existing Indenture is in all respects ratified and confirmed and all the terms, conditions and
provisions thereof shall remain in full force and effect. Upon the execution and delivery of this First Supplemental Indenture by the Issuer, the Guarantors and the Trustee, this First Supplemental Indenture shall form a part of the Existing
Indenture for all purposes, and the Issuer, the Guarantors, the Trustee and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. Any and all references to the Existing Indenture, whether within the
Existing Indenture or in any notice, certificate or other instrument or document, shall be deemed to include a reference to this First Supplemental Indenture (whether or not made), unless the context shall otherwise require. 

 

	Section 4.	NO EXCHANGE OF EXISTING NOTES REQUIRED. 

 The execution of this First Supplemental Indenture shall not require the exchange of or modification to the certificates representing Notes existing prior to the date hereof. 

 

	Section 5.	GOVERNING LAW. 

 THIS FIRST
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

  
 15 

  

	Section 6.	COUNTERPARTS. 

 The parties may
sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
  

	Section 7.	EFFECT OF HEADINGS. 

 The
Section headings herein are for convenience only and shall not affect the construction hereof. 
  

	Section 8.	THE TRUSTEE. 

 The Trustee shall
not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this First Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer. 

 

	Section 9.	BENEFITS OF FIRST SUPPLEMENTAL INDENTURE. 

 Nothing in this First Supplemental Indenture, the Existing Indenture or the Notes express or implied, shall give to any Person, other than the parties hereto and thereto and their successors hereunder and
thereunder, any Paying Agent, any Registrar and the Holders any benefit of any legal or equitable right, remedy or claim under the Existing Indenture, this First Supplemental Indenture or the Notes. 

 

	Section 10.	SUCCESSORS. 

 All agreements of
the Issuer in this First Supplemental Indenture shall bind its Successors. All agreements of the Trustee in this First Supplemental Indenture shall bind its successors. 

  
 16 

  
 IN WITNESS WHEREOF,
the parties hereto have caused this First Supplemental Indenture to be duly executed, all as of the date first above written. 
  

			
	TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
		
	By:	 	 /s/ Anthony R. Horton

		 	Name: Anthony R. Horton
		 	Title: Treasurer and Assistant Secretary

SIGNATURE PAGE TO SUPPLEMENTAL INDENTURE 

  

  
 
			
	TCEH FINANCE, INC.
		
	By:	 	 /s/ Anthony R. Horton

		 	Name: Anthony R. Horton
		 	Title: Treasurer

 SIGNATURE PAGE TO
SUPPLEMENTAL INDENTURE 

  

  
 
			
	ENERGY FUTURE COMPETITIVE HOLDINGS COMPANY
		
	By:	 	 /s/ Anthony R. Horton

		 	Name: Anthony R. Horton
		 	Title: Treasurer

 SIGNATURE PAGE TO
SUPPLEMENTAL INDENTURE 

  

  
 
			
	BIG BROWN 3 POWER COMPANY LLC
	BIG BROWN LIGNITE COMPANY LLC
	BIG BROWN POWER COMPANY LLC
	COLLIN POWER COMPANY LLC
	DECORDOVA POWER COMPANY LLC
	GENERATION MT COMPANY LLC
	GENERATION SVC COMPANY
	LAKE CREEK 3 POWER COMPANY LLC
	LUMINANT BIG BROWN MINING COMPANY LLC
	LUMINANT ENERGY COMPANY LLC
	LUMINANT ENERGY SERVICES COMPANY
	LUMINANT ENERGY TRADING CALIFORNIA COMPANY
	LUMINANT ET SERVICES COMPANY
	LUMINANT GENERATION COMPANY LLC
	LUMINANT HOLDING COMPANY LLC
	LUMINANT MINERAL DEVELOPMENT COMPANY LLC
	LUMINANT MINING COMPANY LLC
	LUMINANT MINING SERVICES COMPANY
	LUMINANT POWER SERVICES COMPANY
	LUMINANT RENEWABLES COMPANY LLC
	MARTIN LAKE 4 POWER COMPANY LLC
	MONTICELLO 4 POWER COMPANY LLC
	MORGAN CREEK 7 POWER COMPANY LLC
	NCA RESOURCES DEVELOPMENT COMPANY LLC
	OAK GROVE MANAGEMENT COMPANY LLC
	OAK GROVE MINING COMPANY LLC
	OAK GROVE POWER COMPANY LLC
	SANDOW POWER COMPANY LLC
	TRADINGHOUSE 3 & 4 POWER COMPANY LLC
	TRADINGHOUSE POWER COMPANY LLC
	TXU ENERGY RETAIL COMPANY LLC
	TXU ENERGY SOLUTIONS COMPANY LLC
	TXU RETAIL SERVICES COMPANY
	TXU SEM COMPANY
	TXU SESCO COMPANY LLC
	TXU SESCO ENERGY SERVICES COMPANY
	 VALLEY NG POWER COMPANY LLC
 VALLEY POWER COMPANY LLC

		
	By:	 	 /s/ Anthony R. Horton

		 	Name: Anthony R. Horton
		 	Title: Treasurer

 SIGNATURE PAGE TO
SUPPLEMENTAL INDENTURE 

  

  
 
			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 /s/ Julie Hoffman-Ramos

		 	Name: Julie Hoffman-Ramos
		 	Title: Senior Associate

 SIGNATURE PAGE
TO SUPPLEMENTAL INDENTURE 

  

  
 EXHIBIT A-2 

[Face of Series B Second Lien Note] 
 [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture] 

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 

[Insert the Tax Legend, if applicable pursuant to the provisions of the Indenture] 

CUSIP [            ] 

ISIN [            ]1 

[RULE 144A] [REGULATION S] GLOBAL NOTE 
 15% Senior Secured Second Lien Notes due 2021, Series B 
  

			
	No.        	  	[$                    ]

TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC 
 TCEH FINANCE, INC. 
 promise to pay to CEDE & CO. or registered assigns, the
principal sum [set forth on the Schedule of Exchanges of Interests in the Global Note attached hereto] [of
                                        
United States Dollars ($[            ] on April 1, 2021. 
 Interest
Payment Dates: January 1, April 1, July 1 and October 1, commencing January 1, 2011 
 Record Dates:
December 15, March 15, June 15 and September 15 
 [SIGNATURE PAGE FOLLOWS] 

 
  

	1	 Rule 144A Note CUSIP:882330 ACK9 

 Rule 144A Note ISIN:US882330AK99 
 Regulation S Note CUSIP:U88235 AF0 

Regulation S Note ISIN:USU88235AF08 

  
 A-2-1

  
 IN WITNESS HEREOF, the
Issuer has caused this instrument to be duly executed. 
 Dated:
                    , 20     

 

			
	 TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC

		
	By:	 	  

		 	Name:
		 	Title:
	
	TCEH FINANCE, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 SIGNATURE PAGE TO GLOBAL [144A]
[REGULATION S] SERIES B SECOND LIEN NOTE 

  

  
 This is one of the Series B Second
Lien Notes referred to in the within-mentioned Indenture: 
  

			
	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY, N.A., as Trustee

		
	By:	 	  

		 	Authorized Signatory

 SIGNATURE PAGE TO GLOBAL
[144A] [REGULATION S] SERIES B SECOND LIEN NOTE 

  

  
 [Back of Series B
Second Lien Note] 
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below
unless otherwise indicated. 
 (1) INTEREST. Texas Competitive Electric Holdings Company
LLC, a Delaware limited liability company and TCEH Finance, Inc., a Delaware corporation (collectively, the “Issuer”), promise to pay interest on the principal amount of this Series B Second Lien Note at 15% per
annum from October 20, 2010 until maturity and shall pay Additional Interest, if any, payable pursuant to the Registration Rights Agreement referred to below. The Issuer will pay interest and Additional Interest, if any, quarterly in
arrears on January 1, April 1, July 1 and October 1 of each year, commencing January 1, 2011, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”) without interest accruing on the amount then so payable from such day that is not a Business Day until such Business Day. Interest on the Series B Second Lien Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from October 20, 2010. The Issuer will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at
the interest rate on the Series B Second Lien Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest, if any, (without regard to any
applicable grace periods) from time to time on demand at the interest rate on the Series B Second Lien Notes. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

(2) METHOD OF PAYMENT. The Issuer will pay interest on the Series B
Second Lien Notes and Additional Interest, if any, to the Persons who are registered Holders of Series B Second Lien Notes at the close of business on the December 15, March 15,June 15 and September 15 (whether or not a Business
Day), as the case may be, next preceding the Interest Payment Date, even if such Series B Second Lien Notes are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture
with respect to defaulted interest. Payment of interest and Additional Interest, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest, premium and Additional Interest, if any, on, all Global Notes and all other Series B Second Lien Notes the Holders of which shall have provided wire transfer instructions to
the Issuer or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

(3) PAYING AGENT AND REGISTRAR. Initially, The Bank of
New York Mellon Trust Company, N.A., the Trustee under the Indenture, will act as Paying Agent and Registrar. The Issuer may change any Paying Agent or Registrar without notice to the Holders. The Issuer or any of its Subsidiaries may act in any
such capacity. 
 (4) INDENTURE. The Issuer issued the Series B Second Lien Notes under an
Indenture, dated as of October 6, 2010 (the “Existing Indenture”), among the Issuer, the Guarantors named therein and the Trustee, as supplemented by the First Supplemental Indenture, dated as of October 20, 2010, among
the Issuer, the Guarantors named therein and the Trustee (the Existing Indenture as supplemented, the “Indenture”). This Series B Second Lien Note is one of a duly authorized issue of notes of the Issuer designated as its 15% Senior
Secured Second Lien Notes due 2021, Series B. The Issuer shall be entitled to issue Additional Series B Second Lien Notes pursuant to Sections 2.01, 4.09 and 4.12 of the Indenture. The Second Lien Notes (including any Exchange Notes issued in
exchange therefor) and the Series B Second Lien Notes (including any Exchange Notes issued in exchange therefor) (collectively referred to herein as the “Notes”) are separate series of Notes, but shall be treated as a single class
of securities under 

  
 A-2-4

 
the Indenture, unless otherwise specified in the Indenture. In addition, the Notes will be treated along with certain other Pari Passu Secured Indebtedness of the Issuer as a single class for
amendments and waivers and for taking certain other actions. The terms of the Series B Second Lien Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the
“Trust Indenture Act”). The Series B Second Lien Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Series B Second Lien
Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. 

(5) OPTIONAL REDEMPTION. 

(a) Except as set forth below, the Issuer will not be entitled to redeem Series B Second Lien Notes at its option prior to
October 1, 2015. 
 (b) At any time prior to October 1, 2015, the Issuer may redeem the Series B Second Lien Notes, in
whole or in part, upon not less than 30 nor more than 60 days’ prior notice mailed by first class mail to the registered address of each Holder or otherwise delivered in accordance with the procedures of DTC, at a redemption price equal to 100%
of the principal amount of the Series B Second Lien Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Additional Interest, if any, to, the applicable date of redemption (the “Redemption
Date”), subject to the right of Holders of Series B Second Lien Notes of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date. 

(c) From and after October 1, 2015, the Issuer may redeem the Series B Second Lien Notes, in whole or in part, upon not less than 30
nor more than 60 days’ prior notice mailed by first class mail to the registered address of each Holder or otherwise delivered in accordance with the procedures of DTC, at the redemption prices (expressed as percentages of the principal amount
of the Series B Second Lien Notes to be redeemed) set forth below, plus accrued and unpaid interest and Additional Interest, if any, to the applicable Redemption Date, subject to the right of Holders of Series B Second Lien Notes of record on
the relevant Record Date to receive interest due on the relevant Interest Payment Date if redeemed during the twelve-month period beginning on October 1 of each of the years indicated below: 

 

					
	Year	  	Percentage	 
	 2015
	  	 	107.50	% 
	 2016
	  	 	105.00	% 
	 2017
	  	 	102.50	% 
	 2018 and thereafter
	  	 	100.00	% 

 (d) Prior to
October 1, 2013, the Issuer may, at its option, on one or more occasions, redeem up to 35% of the aggregate principal amount of Series B Second Lien Notes at a redemption price equal to 115.00% of the aggregate principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the Redemption Date, subject to the right of Holders of Series B Second Lien Notes of record on the relevant Record Date to receive interest due on the relevant Interest
Payment Date, with the net cash proceeds of one or more Equity Offerings; provided that at least 50% of the sum of the original aggregate principal amount of Initial Series B Second Lien Notes and any Additional Series B Second Lien Notes
issued under the Indenture remains outstanding immediately after the occurrence of each such redemption; and provided further that each such redemption occurs within 90 days of the date of closing of each such Equity Offering. Notice
of any redemption upon any Equity Offerings may be given prior to the redemption thereof, and any such redemption or notice may, at the Issuer’s discretion, be subject to one or more conditions precedent, including, but not limited to,
completion of the related Equity Offering. 

  
 A-2-5

  
 (e) If the Issuer
redeems less than all of the outstanding Series B Second Lien Notes, the Trustee shall select the Series B Second Lien Notes to be redeemed in the manner described under Section 3.02 of the Indenture. 

(f) Any redemption pursuant to this paragraph 5 shall be made pursuant to the provisions of Sections 3.01 through 3.06 of the
Indenture. 
 (6) MANDATORY REDEMPTION. The Issuer shall not be required to
make mandatory redemption or sinking fund payments with respect to the Series B Second Lien Notes. 
 (7)
NOTICE OF REDEMPTION. Subject to Section 3.03 of the Indenture, notice of redemption will be mailed by first-class mail at least 30 days but not more than 60 days before the
Redemption Date (except that redemption notices may be mailed or delivered more than 60 days prior to a Redemption Date if the notice is issued in connection with Article 8 or Article 12 of the Indenture) to each Holder whose Series B
Second Lien Notes are to be redeemed at its registered address or otherwise delivered in accordance with the procedures of DTC. Series B Second Lien Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000 in excess thereof, unless all of the Series B Second Lien Notes held by a Holder are to be redeemed. On and after the Redemption Date interest ceases to accrue on Series B Second Lien Notes or portions thereof called for redemption.

 (8) OFFERS TO REPURCHASE. 

(a) If a Change of Control occurs, the Issuer shall make an offer (a “Change of Control Offer”) to each Holder to
purchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase (the “Change of Control Payment”), subject to the right of Holders of Notes of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date.
The Change of Control Offer shall be made in accordance with Section 4.14 of the Indenture. 
 (b) If TCEH or any of its
Restricted Subsidiaries consummates an Asset Sale, within 10 Business Days of each date that the aggregate amount of Excess Proceeds exceeds $200.0 million, TCEH and/or any of its Restricted Subsidiaries shall make an offer to all Holders of the
Notes, and if required or permitted by the terms of any Senior Indebtedness, to the holders of such Senior Indebtedness (an “Asset Sale Offer”), to purchase the maximum aggregate principal amount of the Notes and such Senior
Indebtedness that is a minimum of $2,000 or an integral multiple of $1,000 in excess thereof that may be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount thereof, plus accrued
and unpaid interest and Additional Interest, if any, to the date fixed for the closing of such offer, in accordance with the procedures set forth in the Indenture. To the extent that the aggregate amount of Notes and such Senior Indebtedness
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, TCEH and/or any of its Restricted Subsidiaries may use any remaining Excess Proceeds to make Restricted Payments to the extent permitted by Section 4.07(b)(16) of the
Indenture. If the aggregate principal amount of Notes or the Senior Indebtedness surrendered by such holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and such Senior Indebtedness to be purchased on a pro rata
basis based on the accreted value or principal amount of the Notes or such Senior Indebtedness tendered. 

  
 A-2-6

  
 (c) TCEH and/or any of
its Restricted Subsidiaries may, at its/their option, make an Asset Sale Offer using proceeds from any Asset Sale at any time after consummation of such Asset Sale; provided that such Asset Sale Offer shall be in an aggregate amount of not
less than $25.0 million. Upon consummation of such Asset Sale Offer, any Net Proceeds not required to be used to purchase Notes shall not be deemed Excess Proceeds. 
 (d) If TCEH or any of its Restricted Subsidiaries consummates a Collateral Asset Sale, within 10 Business Days of each date that the aggregate amount of Collateral Excess Proceeds exceeds $200.0 million,
TCEH and/or any of its Restricted Subsidiaries shall make an offer to all Holders of the Notes, and if required or permitted by the terms of any First Lien Obligations and any Pari Passu Secured Indebtedness, to the holders of such other First Lien
Obligations and such Pari Passu Secured Indebtedness (a “Collateral Asset Sale Offer”), to purchase the maximum aggregate principal amount of the Notes and such First Lien Obligations and Pari Passu Secured Indebtedness that is a
minimum of $2,000 or an integral multiple of $1,000 in excess thereof that may be purchased out of the Collateral Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount thereof, plus accrued and unpaid interest
and Additional Interest, if any, to the date fixed for the closing of such offer, in accordance with the procedures set forth in the Indenture and the other documents governing the applicable First Lien Obligations and Pari Passu Secured
Indebtedness; provided that in any such Collateral Asset Sale Offer, all First Lien Obligations properly tendered for purchase will be purchased before any Notes or Pari Passu Indebtedness is purchased. To the extent that the aggregate amount of
First Lien Obligations, Notes and Pari Passu Secured Indebtedness tendered pursuant to a Collateral Asset Sale Offer is less than the Collateral Excess Proceeds, TCEH and/or any of its Restricted Subsidiaries may use any remaining Collateral Excess
Proceeds for general corporate purposes, subject to other covenants contained in the Indenture. If the aggregate principal amount of First Lien Obligations, Notes and Pari Passu Secured Indebtedness surrendered by such holders thereof exceeds the
amount of Collateral Excess Proceeds, then all First Lien Obligations properly tendered for purchase shall be purchased, and, any remaining Collateral Excess Proceeds shall be applied to purchase the Notes and any other Pari Passu Secured
Indebtedness properly tendered for purchased on a pro rata basis, based on the accreted value or principal amount of the Notes or such other Pari Passu Secured Indebtedness tendered. 

(e) TCEH may, at its option, make a Collateral Asset Sale Offer using proceeds from any Asset Sale of Collateral at any time after
consummation of such Asset Sale; provided that such Collateral Asset Sale Offer shall be in an aggregate amount of not less than $25.0 million. Upon consummation of such Collateral Asset Sale Offer, any Net Proceeds not required to be used to
purchase First Lien Obligations, Notes and Pari Passu Secured Indebtedness shall not be deemed Collateral Excess Proceeds. 

(f) In the event that on March 31, 2013, any funds in the Escrow Account have not been released in accordance with
Section 4.20(c) hereof, the Issuer shall make an offer (the “Escrow Proceeds Offer”) to purchase the maximum principal amount of Series B Second Lien Notes that may be purchased using such unused escrow funds, at a purchase
price of 100% of the principal amount thereof, plus accrued and unpaid interest and Additional Interest, if any, to the purchase date. The Issuer shall fund the payment of accrued and unpaid interest and Additional Interest, if any, to the purchase
date, with respect to any Series B Second Lien Notes purchased in the Escrow Proceeds Offer, as well as any expenses of the Escrow Proceeds Offer, with funds other than the Escrow Proceeds. The Escrow Proceeds Offer shall be made in accordance with
Section 4.20 of the Indenture. 
 (9) ESCROW OF
PROCEEDS. Except as otherwise set forth in Section 4.20 of the Indenture with respect to Series B Second Lien Notes issued on the Series B Second Lien Notes Issue Date, all proceeds from the issuance of any
Series B Second Lien Notes shall be deposited into an Escrow Account pursuant to the terms of the Pledge and Escrow Agreement, dated as of October 20, 2010, by and among 

  
 A-2-7

 
the Issuer, as pledgors, The Bank of New York Mellon Trust Company, N.A., in its capacity as trustee under the First Supplemental Indenture and any other Eligible Supplemental Indenture (as
defined therein) that may be entered into, and The Bank of New York Mellon Trust Company, N.A., in its capacity as escrow agent thereunder. Prior to March 31, 2013, so long as no Event of Default has occurred and is continuing, the Issuer shall
be permitted to request that funds be released from the Escrow Account and transferred to or at the direction of the Issuer only to fund the payment, repayment or prepayment of term loans outstanding under the TCEH Senior Secured Facilities or to
repurchase principal amounts outstanding under the Issuer’s 10.25% Senior Notes due 2015, 10.25% Senior Notes due 2015, Series B or 10.50%/11.25% Senior Toggle Notes due 2016, and the Issuer shall not request that funds be released from the
Escrow Account and transferred to or at the direction of the Issuer for any other purpose. 
 (9)
DENOMINATIONS, TRANSFER, EXCHANGE. The Series B Second Lien Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess
thereof. The transfer of Series B Second Lien Notes may be registered and Series B Second Lien Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Issuer need not exchange or register the transfer of any Series B Second Lien Notes or portion of
Series B Second Lien Notes selected for redemption, except for the unredeemed portion of any Series B Second Lien Notes being redeemed in part. Also, the Issuer need not exchange or register the transfer of any Series B Second Lien Notes for a
period of 15 days before a selection of Series B Second Lien Notes to be redeemed. 
 (10) PERSONS
DEEMED OWNERS. The registered Holder of a Series B Second Lien Note may be treated as its owner for all purposes. 
 (11) AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Guarantees or the Series B Second Lien Notes may be amended or
supplemented as provided in the Indenture. 
 (12) DEFAULTS AND
REMEDIES. The Events of Default relating to the Notes are defined in Section 6.01 of the Indenture. If any Event of Default occurs and is continuing, the Trustee or the Required Holders of at least 30% in
aggregate principal amount of the Required Debt may declare the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Notes of the affected series to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will become due and payable immediately without further action or notice. Holders may not enforce the Indenture, the Notes
or the Guarantees except as provided in the Indenture. Subject to certain limitations, Required Holders of a majority in aggregate principal amount of the Required Debt may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, Additional Interest, if any, or interest) if it determines that withholding notice is in their interest. The
Required Holders of a majority in aggregate principal amount of the Required Debt by notice to the Trustee may on behalf of the Holders of all of the Required Debt waive any existing Default or and its consequences under the Indenture except a
continuing Default in the payment of interest on, premium, if any, or the principal of any Note held by a non-consenting Holder. The Issuer and each Guarantor (to the extent that such Guarantor is so required under the Trust Indenture Act) is
required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Issuer is required within five Business Days after becoming aware of any Default, to deliver to the Trustee a statement specifying such Default
and what action the Issuer proposes to take with respect thereto. 

  
 A-2-8

  
 (13)
AUTHENTICATION. This Series B Second Lien Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose until authenticated by the manual signature of the Trustee.

 (14) ADDITIONAL RIGHTS OF HOLDERS OF
RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of Series B Second
Lien Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes shall have all the rights set forth in the Registration Rights Agreement, dated as of October 20, 2010, among the Issuer, the Guarantors named
therein and the other parties named on the signature pages thereof (the “Registration Rights Agreement”), relating to such Series B Second Lien Notes, including the right to receive Additional Interest, if any (as defined in the
Registration Rights Agreement). 
 (15) GOVERNING LAW. THE INDENTURE, THE SERIES B SECOND LIEN NOTES AND THE GUARANTEES
THEREOF SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 (16) CUSIP/ISIN
NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP/ISIN numbers to be printed on the Series B Second Lien Notes and the
Trustee may use CUSIP/ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Series B Second Lien Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon. 
 The Issuer will furnish to any Holder upon
written request and without charge a copy of the Indenture, the Registration Rights Agreement relating to the Series B Second Lien Notes and/or the Security Documents. Requests may be made to the Issuer at the following address: 

c/o Texas Competitive Electric Holdings Company LLC 
 Energy Plaza 
 1601 Bryan Street 

Dallas, Texas 75201-3411 
 Facsimile No.:  (214) 812-6032 

                       
  (214) 812-4097 
 c/o TCEH Finance, Inc. 
 Energy Plaza 
 1601 Bryan Street 

Dallas, Texas 75201-3411 
 Facsimile No.:  (214) 812-6032 

                       
  (214) 812-4097 

  
 A-2-9

  
 ASSIGNMENT FORM

 To assign this Series B Second Lien Note, fill in the form below: 

 

			
	(I) or (we) assign and transfer this Series B Second Lien Note to:	 	  

		 	(Insert assignee’s legal name)
	  

	(Insert assignee’s Soc. Sec. or tax I.D. no.)
	
	  

	
	  

	
	  

	
	  

	(Print or type assignee’s name, address and zip code)

  

			
		
	and irrevocably appoint 	 	  

	to transfer this Series B Second Lien Note on the books of the Issuer. The agent may substitute another to act for him.

 

					
			
	Date:
                                         
   	 		  	
		 	Your Signature	  	  

		 		  	  (Sign exactly as your name appears on the
		 		  	  face of this Series B Second Lien Note)

  

					
		
	Signature Guarantee*:                                 
                                         
      	 	

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-2-10

  
 OPTION OF HOLDER TO
ELECT PURCHASE 
 If you want to elect to have this Series B Second Lien Note purchased by the Issuer pursuant to
Section 4.10(d), 4.10(h), 4.14 or 4.20 of the Indenture, check the appropriate box below: 
  

							
	 ̈ Section 4.10(d)	  	 ̈ Section 4.10(h)	  	 ̈ Section 4.14	  	 ̈ Section 4.20

 If you want to elect to have only part of this Series B Second Lien Note purchased by the Issuer pursuant to Section 4.10(d), 4.10(h), 4.14 or 4.20 of the Indenture, state the amount you elect to
have purchased: 
  

							
		 	        $                   
 	 	
	Date:
                                        
	 		 		 	
				
		 		 	Your Signature:    	 	                             
                                       

		 		 		 	(Sign exactly as your name appears on the face of
		 		 		 	                  this Series B Second Lien
Note)

							
				
		 		 	        Tax Identification No.: 	 	                             
                               

  

			
	Signature Guarantee*:	 	  

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 A-2-11

  

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1 
 The initial outstanding principal amount of this Global Note is $                     . The
following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global Note, have been made: 

 

									
	 Date of Exchange
	 	 Amount of

decrease in
Principal Amount
	 	 Amount of increase
in Principal

Amount of this

Global Note
	 	
Principal Amount
of this Global Note
following each

decrease or increase
	 	 Signature of
authorized officer
of Trustee or

Custodian

 

	1	 This schedule should be included only if the Series B Second Lien Note is issued in global form. 

  
 A-2-12

  
 EXHIBIT B

 FORM OF CERTIFICATE OF TRANSFER 
  

	
	Texas Competitive Electric Holdings Company LLC
	Energy Plaza
	1601 Bryan Street
	Dallas, Texas 75201-3411
	Facsimile No.:  (214) 812-6032
	                          (214)
812-4097
	
	TCEH Finance, Inc.
	Energy Plaza
	1601 Bryan Street
	Dallas, Texas 75201-3411
	Facsimile No.:  (214) 812-6032
	                          (214)
812-4097

 The Bank of New York Mellon Trust Company, N.A. 
 Corporate Trust Division 
 601 Travis Street – 16th Floor 

Houston, TX 77002 
 Facsimile No.:
(713) 483-6954 
 Attention: TCEH Trustee 
  

			
	Re:	  	 [15% Senior Secured Second Lien Notes due 2021]
 [15% Senior Secured Second Lien Notes due 2021, Series B]

Reference is hereby made to the Indenture, dated as of October 6, 2010, among Texas Competitive Electric Holdings Company LLC and
TCEH Finance, Inc., the Guarantors named therein and the Trustee, as supplemented by the First Supplemental Indenture dated as of October 20, 2010, among the Issuer, the Guarantors named therein and the Trustee (collectively, the
“Indenture”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
                      (the “Transferor”) owns and proposes to transfer the
Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of $                     in such Note[s] or interests
(the “Transfer”), to                      (the “Transferee”), as further specified in Annex A hereto. In
connection with the Transfer, the Transferor hereby certifies that: 
 [CHECK ALL THAT APPLY] 

1.  ̈ Check if Transferee will take delivery of a beneficial interest in the 144A
Global Note or a Definitive Note pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial interest or Definitive Note for its own
account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States. 

  
 B-1

  
 2.  ̈ Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Note or a Definitive Note pursuant to Regulation S. The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the
time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an
Initial Purchaser). Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Indenture and the
Securities Act. 
 3.  ̈ Check and complete if Transferee will take
delivery of a beneficial interest in the Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable
to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one): 
 [    ] such Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities Act; 
 OR 

[    ] such Transfer is being effected to the Issuer or a subsidiary thereof; 

OR 

[    ] such Transfer is being effected pursuant to an effective registration statement under the
Securities Act and in compliance with the prospectus delivery requirements of the Securities Act. 
 4.  ̈ Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note. 

 ̈ Check if Transfer is Pursuant to Rule 144. (i) The
Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive
Notes and in the Indenture. 

  
 B-2

  
 (j)  ̈ Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in
compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture. 

(k)  ̈ Check if Transfer is Pursuant to Other Exemption.
(i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 
 This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer. 

 

			
	[Insert Name of Transferor]
		
	By:	 	  

		 	Name:
		 	Title:

 Dated:
                                        

  
 B-3

  
 ANNEX A TO
CERTIFICATE OF TRANSFER 
  

	1.	The Transferor owns and proposes to transfer the following: 

 [CHECK ONE OF (a) OR (b)] 
  

	(a)	 ̈ a beneficial interest in the: 

 

	 	(i)	 ̈ 144A Global Note (CUSIP [            ]
[            ]), or 

  

	 	(ii)	 ̈ Regulation S Global Note (CUSIP [            ]
[            ]), or 

  

	(b)	 ̈ a Restricted Definitive Note. 

 

	2.	After the Transfer the Transferee will hold: 

 [CHECK ONE] 
  

	(a)	 ̈ a beneficial interest in the: 

 

	 	(i)	 ̈ 144A Global Note (CUSIP [            ]
[            ]), or 

  

	 	(ii)	 ̈ Regulation S Global Note (CUSIP [            ]
[            ]), or 

  

	 	(iii)	 ̈ Unrestricted Global Note (CUSIP [            ]
[            ]); 

 or 

 

	(b)	 ̈ a Restricted Definitive Note; or 

 

	(c)	 ̈ an Unrestricted Definitive Note, in accordance with the terms of the Indenture. 

  
 B-4

  
 EXHIBIT C

 FORM OF CERTIFICATE OF EXCHANGE 
  

	
	Texas Competitive Electric Holdings Company LLC
	Energy Plaza
	1601 Bryan Street
	Dallas, Texas 75201-3411
	Facsimile No.: (214) 812-6032
	                         (214) 812-4097
	
	TCEH Finance, Inc.
	Energy Plaza
	1601 Bryan Street
	Dallas, Texas 75201-3411
	Facsimile No.: (214) 812-6032
	                         (214)
812-4097

 The Bank of New York Mellon Trust Company, N.A. 
 Corporate Trust Division 
 601 Travis Street – 16th Floor 

Houston, TX 77002 
 Facsimile No.:
(713) 483-6954 
 Attention: TCEH Trustee 
  

			
	Re:	  	[15% Senior Secured Second Lien Notes due 2021]
		  	[15% Senior Secured Second Lien Notes due 2021, Series B]

 Reference is hereby made to the Indenture, dated as of October 6, 2010, among Texas Competitive Electric Holdings Company LLC and TCEH Finance, Inc., the Guarantors named therein and the Trustee, as
supplemented by the First Supplemental Indenture dated as of October 20, 2010, among the Issuer, the Guarantors named therein and the Trustee (collectively, the “Indenture”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture. 

                     (the
“Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of $
                     in such Note[s] or interests (the “Exchange”). In connection with the Exchange, the Owner hereby
certifies that: 
 1. Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for
Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note  
 (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial
interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the “Securities
Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted
Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 

  
 C-1

  
 (b)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 

(c)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in
an Unrestricted Global Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States. 
 (d)  ̈ Check if
Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted
Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
 2.
Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes  

(a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to
Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby certifies that the Restricted
Definitive Note is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act. 
 (b)  ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with the Exchange of the
Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE]  ̈ 144A Global Note  ̈ Regulation S Global Note, with an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in 

  
 C-2

 
accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

  
 C-3

  
 EXHIBIT D

 [FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED BY SUBSEQUENT GUARANTORS] 
 Supplemental Indenture (this
“Supplemental Indenture”), dated as of
                                        ,
among
                                        
(the “Guaranteeing Subsidiary”), a subsidiary of Texas Competitive Electric Holdings Company LLC, a Delaware limited liability company (“TCEH”), TCEH Finance, Inc., a Delaware Corporation (together with TCEH, the
“Issuer”), the Guarantors (as defined in the Indenture referred to below) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). 

W I T N E S S E T H 
 WHEREAS, each of the Issuer and the Guarantors has heretofore executed and delivered to the Trustee an Indenture (the “Existing Indenture”), dated as of October 6, 2010, as
supplemented by the First Supplemental Indenture (the Existing Indenture as supplemented, the “Indenture”), dated as of October 20, 2010, providing for the issuance of an unlimited aggregate principal amount of 15% Senior
Secured Second Lien Notes due 2021 and 15% Senior Secured Second Lien Notes due 2021, Series B (together, the “Notes”); 
 WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Issuer’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (the “Guarantee”); and 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
 1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 

2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as follows: 

(a) Along with all Guarantors named in the Indenture, to jointly and severally unconditionally guarantee to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that: 

(i) the principal of, interest, premium and Additional Interest, if any, on the Notes shall be promptly paid in full when
due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Issuer to the Holders or the Trustee hereunder or thereunder
shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and 

  
 D-1

  
 (ii) in
case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity,
by acceleration or otherwise. Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors and the Guaranteeing Subsidiary shall be jointly and severally obligated to pay the same
immediately. This is a guarantee of payment and not a guarantee of collection. 
 (b) The obligations hereunder
shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof
or thereof, the recovery of any judgment against the Issuer, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. 

(c) The following is hereby waived: diligence, presentment, demand of payment, filing of claims with a court in the event
of insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest, notice and all demands whatsoever. 
 (d) Except as set forth in Section 5 hereto, this Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, the Indenture and this Supplemental
Indenture, and the Guaranteeing Subsidiary accepts all obligations of a Guarantor under the Indenture. 
 (e) If
any Holder or the Trustee is required by any court or otherwise to return to the Issuer, the Guarantors (including the Guaranteeing Subsidiary), or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuer
or the Guarantors, any amount paid either to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. 

(f) The Guaranteeing Subsidiary shall not be entitled to any right of subrogation in relation to the Holders in respect of
any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. 
 (g) As between
the Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of this
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in
Article 6 of the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guaranteeing Subsidiary for the purpose of this Guarantee. 

(h) The Guaranteeing Subsidiary shall have the right to seek contribution from any non-paying Guarantor so long as the
exercise of such right does not impair the rights of the Holders under this Guarantee. 
 (i) Pursuant to
Section 10.02 of the Indenture, after giving effect to all other contingent and fixed liabilities that are relevant under any applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of 

  
 D-2

 
such other Guarantor under Article 10 of the Indenture, this new Guarantee shall be limited to the maximum amount permissible such that the obligations of such Guaranteeing Subsidiary under
this Guarantee will not constitute a fraudulent transfer or conveyance. 
 (j) This Guarantee shall remain in
full force and effect and continue to be effective should any petition be filed by or against the Issuer for liquidation, reorganization, should the Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or
trustee be appointed for all or any significant part of the Issuer’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Notes
are, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on the Notes and Guarantee, whether as a “voidable preference”, “fraudulent transfer” or otherwise, all as
though such payment or performance had not been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or returned, the Note shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned. 
 (k) In case any provision of this
Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

(l) This Guarantee shall be a general senior secured obligation of such Guaranteeing Subsidiary, ranking equally in right
of payment with all existing and future Indebtedness of the Guaranteeing Subsidiary, except to the extent such Indebtedness is expressly subordinated to the Obligations arising under a Guarantee, in which case the obligations of a Guaranteeing
Subsidiary under such Guarantee will rank senior in right of payment to such Indebtedness and will be effectively subordinated to all existing and future Indebtedness of the Guarantors that are either (1) secured by a Lien on the Collateral
that is senior or prior to the Second-Priority Liens securing a Guarantee, including first-priority Liens securing Obligations under the TCEH Senior Secured Facilities and any other First Lien Obligations (and any Permitted Liens) or
(2) secured by assets that are not part of the Collateral securing a Guarantee, in each case, to the extent of the value of the assets securing such Indebtedness. The Guarantees will be senior in right of payment to all existing and future
unsecured Indebtedness, to the extent of the value of the Collateral (after taking into consideration all first-priority Liens on the Collateral) of each Guarantor. The Notes will be structurally subordinated to Indebtedness and other liabilities of
Subsidiaries of the Issuer that do not Guarantee the Notes, if any. 
 (m) Each payment to be made by the
Guaranteeing Subsidiary in respect of this Guarantee shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. 
 3. EXECUTION AND DELIVERY. The Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of such Guarantee on the Notes. 

  
 D-3

  
 4. Merger,
Consolidation or Sale of All or Substantially All Assets. 
 (a) Except as otherwise provided in
Section 5.01(c) of the Indenture, the Guaranteeing Subsidiary may not consolidate or merge with or into or wind up into (whether or not the Issuer or Guaranteeing Subsidiary is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or assets, in one or more related transactions, to any Person unless: 
 (i)(A) the Guaranteeing Subsidiary is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Guaranteeing Subsidiary) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made is a corporation, partnership, limited partnership, limited liability partnership, limited liability corporation or trust organized or existing under the laws of the
jurisdiction of organization of the Guaranteeing Subsidiary, as the case may be, or the laws of the United States, any state thereof, the District of Columbia, or any territory thereof (the Guaranteeing Subsidiary or such Person, as the case may be,
being herein called the “Successor Person”); 
 (B) the Successor Person, if other than the
Guaranteeing Subsidiary, expressly assumes all the obligations of the Guaranteeing Subsidiary under the Indenture and the Registration Rights Agreements and the Guaranteeing Subsidiary’s related Guarantee pursuant to supplemental indentures or
other documents or instruments in form reasonably satisfactory to the Trustee; 
 (C) immediately after such
transaction, no Default exists; and 
 (D) the Issuer shall have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indentures, if any, comply with the Indenture; or 

(ii) the transaction is made in compliance with Section 4.10 of the Indenture; 

(b) Subject to certain limitations described in the Indenture, the Successor Person will succeed to, and be substituted
for, the Guaranteeing Subsidiary under the Indenture and the Guaranteeing Subsidiary’s Guarantee. Notwithstanding the foregoing, the Guaranteeing Subsidiary may (i) merge into or transfer all or part of its properties and assets to another
Guarantor or the Issuer, (ii) merge with an Affiliate of the Issuer solely for the purpose of reincorporating the Guaranteeing Subsidiary in the United States, any state thereof, the District of Columbia or any territory thereof or
(iii) convert into a corporation, partnership, limited partnership, limited liability corporation or trust organized or existing under the laws of the jurisdiction of organization of such Guarantor. 

5. RELEASES. The Guarantee of the Guaranteeing Subsidiary shall be automatically and unconditionally released and
discharged, and no further action by the Guaranteeing Subsidiary, the Issuer or the Trustee is required for the release of the Guaranteeing Subsidiary’s Guarantee, upon: 

(1)(A) any sale, exchange or transfer (by merger, wind-up, consolidation or otherwise) of the Capital Stock of the
Guaranteeing Subsidiary (including any sale, exchange or transfer), after which the Guaranteeing Subsidiary is no longer a Restricted Subsidiary or sale of all or substantially all the assets of the Guaranteeing Subsidiary which sale, exchange or
transfer is made in compliance with the applicable provisions of the Indenture; 
 (B) the release or discharge
of the guarantee by the Guaranteeing Subsidiary of the TCEH Senior Secured Facilities or the guarantee which resulted in the creation of the Guarantee, except a discharge or release by or as a result of payment under such guarantee; 

  
 D-4

  
 (C)
the proper designation of the Guaranteeing Subsidiary as an Unrestricted Subsidiary in compliance with Section 4.08 of the Indenture and the definition of “Unrestricted Subsidiary” in the Indenture; or 

(D) the Issuer exercising its Legal Defeasance option or Covenant Defeasance option in accordance with Article 8 of
the Indenture or the Issuer’s obligations under the Indenture being discharged in accordance with the terms of the Indenture; and 
 (2) the Guaranteeing Subsidiary delivering to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for in the Indenture relating to such
transaction have been complied with. 
 6. NO RECOURSE AGAINST
OTHERS. No past, present or future director, officer, employee, incorporator or stockholder of the Guaranteeing Subsidiary shall have any liability for any obligations of the Issuer or the Guarantors (including the Guaranteeing
Subsidiary) under the Notes, any Guarantees, the Indenture, this Supplemental Indenture or any Security Document or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting Notes waives and
releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 
 7.
GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 8. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

 9. EFFECT OF HEADINGS. The Section headings herein are for convenience only
and shall not affect the construction hereof. 
 10. THE TRUSTEE. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary.

 11. SUBROGATION. The Guaranteeing Subsidiary shall be subrogated to all rights of Holders of Notes against the
Issuer in respect of any amounts paid by the Guaranteeing Subsidiary pursuant to the provisions of Section 2 hereof and Section 10.01 of the Indenture; provided that if an Event of Default has occurred and is continuing, the
Guaranteeing Subsidiary shall not be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Issuer under the Indenture or the Notes shall have been paid in
full. 
 12. BENEFITS ACKNOWLEDGED. The Guaranteeing Subsidiary’s Guarantee is subject to the
terms and conditions set forth in the Indenture. The Guaranteeing Subsidiary acknowledges that it shall receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the
guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits. 

  
 D-5

  
 13.
SUCCESSORS. All agreements of the Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in Section 2(k) hereof or elsewhere in this Supplemental Indenture. All agreements
of the Trustee in this Supplemental Indenture shall bind its successors. 

  
 D-6

  
 IN WITNESS WHEREOF,
the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written. 
  

			
	TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
		
	By:	 	  

		 	Name:
		 	Title:
	
	TCEH FINANCE, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	[NAMES OF GUARANTORS]
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	  

		 	Name:
		 	Title:
	
	[GUARANTEEING SUBSIDIARY]
		
	By:	 	  

		 	Name:
		 	Title:

  
 D-7

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