Document:

exv10w1

Exhibit 10.1

Subordinated Intercompany Note

			
	$19,000,000
	 	New York, New York

Date: August 18, 2011

          FOR VALUE RECEIVED, CBay Inc. (the “Payor”), hereby promises to pay Nineteen Million
Dollars ($19,000,000) to the order of MedQuist Inc. (the “Payee”), on the date two years
after the date hereof, or if such date is not a business day, the next preceding business day (the
“Maturity Date”), in lawful money of the United States of America, in immediately available
funds at such location as the Payee shall designate, and to pay interest on the unpaid principal
amount hereof at the rates and on the dates specified below.

          The Payor further agrees to pay interest to the Payee from the date hereof on the unpaid
principal amount hereof at a rate per annum equal to 15.00% until the Maturity Date, and
thereafter, until payment in full of the principal amount hereof (whether before or after judgment)
at a rate per annum equal to 17.00%. Interest shall be payable on the Maturity Date, on the date
of any prepayment and, after the Maturity Date, on demand.

          The Payor may prepay all or a portion of the principal amount of this Note at any time by
giving one business day’s notice to the Payee; provided that each prepayment shall be in a
minimum amount of $100,000 or a whole multiple thereof and shall be accompanied by payment of
accrued interest to the date of prepayment.

          Reference is made to (i) that certain Credit Agreement, dated as of October 1, 2010, among
CBay Inc., a Delaware corporation, MedQuist Inc., a New Jersey Corporation, MedQuist
Transcriptions, Ltd., a New Jersey corporation, MedQuist Holdings Inc., a Delaware corporation, the
lenders party thereto and General Electric Capital Corporation as administrative agent and
collateral agent (as amended, restated, extended, supplemented or otherwise modified in writing
from time to time, the “Credit Agreement”), (ii) that certain Senior Subordinated Note
Purchase Agreement, dated as of September 30, 2010, among CBay Inc., MedQuist Inc. and MedQuist
Transcriptions, Ltd. as the issuers, MedQuist Holdings Inc., and BlackRock Kelso Capital
Corporation, Pennantpark Investment Corporation, Citibank, N.A. and THL Credit, Inc. as the
purchasers (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Note Purchase Agreement”) and (iii) that certain Subordination and
Intercreditor Agreement, dated as of October 1, 2010, among Blackrock Kelso Capital Corporation,
PennantPark Investment Corporation, Citibank, N.A., THL Credit, Inc., CBay Inc., MedQuist Inc.,
MedQuist Transcriptions, Ltd. and General Electric Capital Corporation as agent for all senior
lenders party to the Credit Agreement (the “Subordination and Intercreditor Agreement”).

          Anything in this Note to the contrary notwithstanding, the indebtedness evidenced by this Note
shall be subordinate and junior in right of payment, to the extent and in the manner hereinafter
set forth, to all obligations of the Payor to pay principal, interest or any other amounts owing
under or in connection with the Credit Agreement and the Note Purchase Agreement until the payment
in full in cash of such obligations of the Payor (such obligations and other indebtedness and
obligations in connection with any renewal, refunding, restructuring or refinancing thereof,
including interest thereon accruing after the commencement of any proceedings referred to in clause
(i) below, whether or not such interest is an allowed claim in such proceeding, being hereinafter
collectively referred to as “Senior Indebtedness”):

 

 

     (i) in the event of any insolvency or bankruptcy proceedings, and any receivership,
liquidation, reorganization or other similar proceedings in connection therewith, relative
to the Payor or to its property, and in the event of any proceedings for voluntary
liquidation, dissolution or other winding up of the Payor, whether or not involving
insolvency or bankruptcy, then, if an Event of Default has occurred and is continuing under
(and as defined in) either the Credit Agreement or the Note Purchase Agreement, (x) the
holders of Senior Indebtedness shall be paid in full in cash in respect of all amounts
constituting Senior Indebtedness before the Payee is entitled to receive (whether directly
or indirectly), or make any demands for, any payment on account of this Note and (y) until
the holders of Senior Indebtedness are paid in full in cash in respect of all amounts
constituting Senior Indebtedness, any payment or distribution to which the Payee would
otherwise be entitled (other than debt securities of the Payor that are subordinated, to at
least the same extent as this Note, to the payment of all Senior Indebtedness then
outstanding (such securities being hereinafter referred to as “Restructured Debt
Securities”)) shall be made to the holders of Senior Indebtedness;

     (ii) if any Event of Default has occurred and is continuing with respect to any Senior
Indebtedness, then no payment or distribution of any kind or character shall be made by or
on behalf of the Payor or any other Person on its behalf with respect to this Note; and

     (iii) if any payment or distribution of any character, whether in cash, securities or
other property (other than Restructured Debt Securities), in respect of this Note shall
(despite these subordination provisions) be received by the Payee in violation of clause
(i) or (ii) before all Senior Indebtedness shall have been paid in full in cash, such
payment or distribution shall be held in trust for the benefit of, and shall be paid over
or delivered to, the holders of Senior Indebtedness (or their representatives), ratably
according to the respective aggregate amounts remaining unpaid thereon, to the extent
necessary to pay all Senior Indebtedness in full in cash.

          To the fullest extent permitted by law, no present or future holder of Senior Indebtedness (or
any of their representatives) shall be prejudiced in its right to enforce the subordination of this
Note by any act or failure to act on the part of the Payor or by any act or failure to act on the
part of such holder or any trustee or agent for such holder. The Payee and the Payor hereby agree
that the subordination of this Note is for the benefit of the Administrative Agent, the Lenders,
the L/C Issuers, any Secured Hedging Counterparty and the Purchasers, and each of the
Administrative Agent, the Lenders, the L/C Issuers, any Secured Hedging Counterparty, and the
Purchasers may proceed to enforce the subordination provisions herein. Anything in this Note to
the contrary notwithstanding, all provisions set forth herein are subject to the terms of the
Subordination and Intercreditor Agreement.

          Nothing contained in the subordination provisions set forth above is intended to or will
impair the obligations of the Payor, which are absolute and unconditional, to pay to the Payee the
principal of and interest on this Note as and when due and payable in accordance with its terms, or
is intended to or will affect the relative rights of the Payee and other creditors of the Payor
other than the holders of Senior Indebtedness.

          The Payee is hereby authorized to record all loans and advances made by it to the Payor (all
of which shall be evidenced by this Note), and all repayments or prepayments thereof, in its books
and records, such books and records constituting prima facie evidence of the accuracy of the
information contained therein.

 

 

          The Payor hereby waives presentment, demand, protest or notice of any kind in connection with
this Note. All payments under this Note shall be made without offset, counterclaim or deduction of
any kind.

          This Note shall be binding upon the Payor and its successors and assigns, and the terms and
provisions of this Note shall inure to the benefit of the Payee and its successors and assigns,
including subsequent holders hereof. The Payor’s obligations under this Note may not be assigned
without the prior written consent of the Payee.

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

[signature pages follow]

 

 

	 	 	 	 	 
	 	CBAY INC.,

as Payor

 	 
	 	By:  	/s/ Kashyap Joshi
 	 
	 	 	Name:  	Kashyap Joshi 	 
	 	 	Title:  	V.P. Finance 	 
	 
	 	MEDQUIST INC.

as Payee

 	 
	 	By:  	/s/ Anthony James
 	 
	 	 	Name:  	Anthony James 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[Subordinated Intercompany Note]exv10w2

Exhibit 10.2

AMENDMENT NO. 1

TO

REGISTRATION RIGHTS AGREEMENT

     This Amendment No. 1 to Registration Rights Agreement (the “Amendment”) made and
entered into as of August 18, 2011, by and among MEDQUIST HOLDINGS INC., a Delaware corporation
(the “Company”), S.A.C. PEI CB Investment L.P., a Cayman Islands limited partnership
(“SAC CBI”), S.A.C. PEI CB Investment II, LLC, a Delaware limited liability company
(“SAC CBI II”) and International Equities (S.A.C. Asia) Limited, a company incorporated
under the Companies Act of 2001 of Mauritius (“SAC Asia” and, collectively with SAC CBI and
SAC CBI II and each of their respective affiliates, the “Stockholders”).

BACKGROUND

     The parties hereto entered into that certain Registration Rights Agreement dated as of
February 4, 2011 (the “Registration Rights Agreement”).

     In connection with the Company granting additional registration rights to certain other
stockholders of the Company pursuant to that certain Stockholders’ Agreement dated the date hereof
by and among the Company and each of the persons set forth on the Schedule of Stockholders attached
thereto (the “Stockholders’ Agreement”), the Stockholders and the Company have agreed to
amend certain provisions of the Registration Rights Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained in this Agreement, the parties hereto, intending to be legally bound, agree as follows:

1. Section 2(a)(iii) of the Registration Rights Agreement is amended in its entirety to read as
follows:

“(iii) If the Company is required to use commercially reasonable efforts to register
Registrable Securities in a registration initiated upon the demand of a Holder or
Holders pursuant to Section 2(a)(i) of this Agreement and the managing underwriters
for such offering advise the Company in writing (with a copy to the Holder(s)
demanding the registration) that the inclusion of all Registrable Securities and
other securities sought to be registered may interfere with an orderly sale and
distribution of or may materially adversely affect the price of such offering, then
the Company will include in such offering

     (A) for the period beginning on the date hereof and ending on February 18, 2012
(the “End Date”), (x) first, the sum of (i) the aggregate number of
Registrable Securities requested to be included in such registration by the
Holder(s) pursuant to this Agreement, whether pursuant to Section 2(a)(i) or
Article 3, and (ii) the number of securities requested to be included in such
registration pursuant to the Stockholders Agreement, which the managing

 

 

underwriters advise will not likely have such effect, allocated pro rata based on
the number of such securities duly requested to be included in such registration,
and (y) second, all other securities requested to be included in such registration;
or

     (B) for the period after the End Date, (x) first, the aggregate number of
Registrable Securities requested to be included by the
Holder(s) pursuant to Section
2(a)(i) which the managing underwriters advise will not likely have such effect,
allocated pro rata based on the number of such Registrable Securities duly requested
to be included in such registration, (y) second, the Registrable Securities sought
to be included in such registration pursuant to Article 3, allocated pro rata based
on the number of such Registrable Securities duly requested to be included in such
registration and (z) third, all other securities requested to be included in such
registration.”

2. Section 3(a)(ii) of the Registration Rights Agreement is amended in its entirety to read as
follows:

“(ii) the Company will not be required to effect any registration of Registrable
Securities pursuant to this Article 3 if the Company shall have been advised in
writing (with a copy to the Holders requesting registration) by a nationally
recognized investment banking firm (which may be the managing underwriter for the
offering) that, in such firm’s opinion, the number of Registrable Securities and
Other Securities proposed to be included exceeds the number which can be sold in the
offering without interfering with an orderly sale and distribution or materially and
adversely affecting the offering price; provided, however, that if an offering of
some but not all of the Registrable Securities and Other Securities requested to be
registered by the Holders and all other Persons having rights to include securities
held by them in such registration would not adversely affect the distribution or
price of the securities to be sold in the offering in the opinion of such firm or
are included in such offering notwithstanding any such opinion, then the Company
will include in such offering:

     (A) for the period beginning on the date hereof and ending on the End Date, (x)
first, any Other Securities to be issued or sold by the Company, (y) second, the sum
of (i) the Registrable Securities requested to be registered pursuant to Article 3,
(ii) the Other Securities requested to be registered by other stockholders having
similar registration rights as of the date of this Agreement and (iii) the
securities requested to be included in such registration pursuant to the
Stockholders Agreement, allocated pro rata based on the relative number of
securities then held by such persons and requested to be included in such
registration; provided, that any such amount thereby allocated to any such persons
that exceeds the request by such persons shall be reallocated among such remaining
requesting persons in like manner and (z) third, all other securities requested to
be included in such registration; or

     (B) for the period after the End Date, (x) first, any Other Securities to be
issued or sold by the Company, (y) second, the Registrable Securities requested to

-2-

 

be registered pursuant to Article 3, on the one hand, and the Other Securities
requested to be registered by other stockholders having similar registration rights
as of the date of this Agreement, on the other hand, allocated pro rata based on the
relative number of Registrable Securities then held by such Holder and Other
Securities then held by such other stockholders eligible to be sold in such
offering; provided, that any such amount thereby allocated to any such Holder or
other stockholder that exceeds the request by such Holder or other stockholder shall
be reallocated among the remaining requesting Holders and other stockholders in like
manner and (z) third, all other securities requested to be included in such
registration;”

3. This Amendment may be executed in two or more counterparts and by facsimile or by pdf, each of
which shall be binding as of the date first written above, and all of which shall constitute one
and the same instrument. Each such copy shall be deemed an original, and it shall not be necessary
in making proof of this Amendment to produce or account for more than one such counterpart.

[the rest of the page left intentionally blank]

-3-

 

     This Amendment has been executed and delivered as of the date first above written.

	 	 	 	 	 
	 	

MEDQUIST HOLDINGS INC.

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan 	 
	 	 	Title:  	General Counsel 	 
	 
	 	

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

 	 
	 	By:  	S.A.C. PEI CB Investment GP, Limited, its general partner
 	 
	 
	 	By:  	
/s/ Peter Nussbaum
 	 
	 	 	Name:  	Peter Nussbaum 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	S.A.C. PEI CB INVESTMENT II, LLC

 	 
	 	By:  	S.A.C. Private Capital Group, LLC, its manager
 	 
	 
	 	By:  	                                          /s/ Peter Nussbaum
 	 
	 	 	Name:  	Peter Nussbaum 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	INTERNATIONAL EQUITIES (S.A.C. ASIA) LIMITED

 	 
	 	By:  	/s/ Peter Nussbaum
 	 
	 	 	Name:  	Peter Nussbaum 	 
	 	 	Title:  	Authorized Signatory 	 
	 

-4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]