Document:

exv10w1

 

Exhibit 10.1

AMENDMENT NO. 1

TO

CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT

     This Amendment No. 1 to Convertible Note and Warrant Purchase Agreement, entered into as of
March 11, 2008 and effective as of February 19, 2008 (this “Amendment”), to the Convertible Note
and Warrant Purchase Agreement (the “Agreement”), dated as of February 18, 2003, by and between
Environmental Tectonics Corporation, a Pennsylvania corporation (“Borrower”), and H.F. Lenfest
(“Purchaser”) is made upon the following terms and conditions. All capitalized terms not otherwise
defined herein shall have the meanings ascribed to such terms in the Agreement.

Background

     WHEREAS, Borrower and Purchaser desire to amend the Agreement as provided herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties hereto amend the
Agreement as follows:

Confirmation of Existing Indebtedness. Borrower hereby unconditionally acknowledges and
confirms that (i) the unpaid principal indebtedness of Borrower to Purchaser evidenced by the Note
is $10,000,000, (ii) interest on the outstanding principal balance of the Note has been paid
through August 23, 2006; and (iii) the foregoing sums, together with continually accruing
interest and any related costs, fees and expenses are, as of the date hereof, unconditionally owing
without claim, counterclaim, right of recoupment, defense or set off of any kind or of any nature
whatsoever.

Ratification of Transaction Documents. Borrower hereby unconditionally ratifies and
confirms and reaffirms in all respect and without condition, all of the terms, covenants and
conditions set forth in the Transaction Documents and agrees that it remains unconditionally liable
to Purchaser

1

 

in accordance with the respective terms, covenants and conditions of such instruments, agreements
and documents, and that all liens and security interests, encumbering any collateral created
pursuant to and/or referred to in the Transaction Documents continue unimpaired and in full force
and effect, and secure and shall continue to secure all of the obligations of Borrower to Purchaser
including, without limitation, the Borrower’s obligations in connection with the Loan and under the
other Transaction Documents.

Definitions. The following defined terms set forth in Section 1.1 of the Agreement shall
be amended as follows:

“Maturity Date” shall mean March 1, 2010, or any other date on which all outstanding principal,
together with accrued and unpaid interest, on the Note shall be due and payable in full.

“Consolidated Tangible Net Worth” shall mean as of any date of determination, (a) the aggregate
amount of all assets of the Borrower and its Subsidiaries on a consolidated basis at such date as
may be properly classified as such in accordance with GAAP, excluding such other assets as are
properly classified as intangible assets under GAAP, minus (b) the aggregate amount of all
liabilities of the Borrower and its Subsidiaries and minority interests in the Borrower or any of
its Subsidiaries on a consolidated basis at such date, as may be properly classified as such in
accordance with GAAP, plus (c) the outstanding principal balance of the Note.

Amendment to Note. Simultaneously with the execution and delivery of this Amendment,
Purchaser and Borrower shall execute and deliver the First Amendment to Senior Subordinated
Convertible Note in the form attached hereto as Exhibit A (the “First Amendment to Note”).
The First Amendment to Note shall be affixed to the Note and constitute a part thereof.

References to Note. All references in the Agreement and in any and all of the other
Transaction Documents to the Note, no matter how denominated, is hereby amended, replaced and
reformed to mean and refer to the Note as amended by the First Amendment to Note.  

Financial Covenants. Section 7.3 of the Agreement is hereby deleted in full and replaced
with the following:

7.3 Financial Covenants. The Borrower covenants that, so long as all
or any part of the principal amount of the Note or any interest thereon
shall remain outstanding, the Borrower will maintain as of the end of each
fiscal quarter a minimum Consolidated Tangible Net Worth of $5,000,000.

Integrated Agreement. This Amendment and all of the instruments, agreements and documents
executed and/or delivered in conjunction with this Amendment shall be effective upon the date of
execution hereof and thereof by all parties hereto and thereto, and shall be deemed incorporated
into and made a part of the Transaction Documents. All such instruments, agreements and documents,
and this Amendment, shall be construed as integrated and complementary of each other, and as
augmenting and not restricting Purchaser’s rights, remedies, benefits and security. If, after
applying the foregoing, an inconsistency still exists, the provisions of this Amendment shall
constitute an amendment thereto and shall govern and control.

Miscellaneous.

2

 

          Validity. In the event that all or any portion of any provision of this Amendment
shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of
the remainder of this Amendment.

          Headings. The section headings in this Amendment are for convenience only, form no
part of this Amendment, and shall not affect its interpretation.

Effectiveness of Agreement. Except as expressly amended hereby, all provisions of the
Agreement shall remain in full force and effect.

[Signature page follows]

3

 

     IN WITNESS WHEREOF, the undersigned have executed and delivered this Amendment No. 1 to
Convertible Note and Warrant Purchase Agreement the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

ENVIRONMENTAL TECTONICS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	PURCHASER:	 	 
	 
	 	 	 	 
	 

	 	 

H.F. Lenfestexv10w2

 

Exhibit 10.2

FIRST AMENDMENT TO

SENIOR SUBORDINATED CONVERTIBLE NOTE

     FIRST AMENDMENT, effective as of February 19, 2008 (this “First Amendment to Note”), to the
Senior Subordinated Convertible Note dated as of February 18, 2003 issued by Environmental
Tectonics Corporation, a Pennsylvania corporation (the “Company”), to H.F. Lenfest (the “Lender”),
in the original principal amount of $10,000,000 (the “Note”).

     WHEREAS, the Company and the Lender are parties to a Convertible Note and Warrant Purchase
Agreement, dated as of February 18, 2003 (as may be amended, restated, supplemented or otherwise
modified and in effect from time to time, the “Agreement”), pursuant to which the Lender made the
Loan to the Company, as evidenced by the Note, under the terms and conditions thereof. Unless
otherwise defined herein, all capitalized terms used in this Amendment shall have the meanings
given to them in the Note.

     WHEREAS, the Company and the Lender are entering into that certain Amendment No. 1 to the
Convertible Note and Warrant Purchase Agreement as of the date hereof pursuant to which the Lender
has agreed, among other things, to extend the Maturity Date of the Loan as set forth herein.

     NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound hereby, the parties agree as follows:

Extension of Maturity Date. For purposes of the Note, the term “Maturity Date” is hereby
amended to mean March 1, 2010.

Outstanding Indebtedness. The Company hereby unconditionally acknowledges that, as of the
date hereof, the outstanding principal balance of the Note is $10,000,000. The Company
acknowledges and agrees that the foregoing balance, together with interest thereon at the rates set
forth in the Note is owing to the Lender without claim, counterclaim, recoupment, defense or setoff
of any kind. This Amendment does not evidence the repayment of the Note.

Counterparts. This Amendment may be executed in counterparts, each of which shall
constitute an original and together shall constitute one and the same documents.

Effectiveness of Note. Except as expressly amended hereby, all provisions of the Note
shall remain in full force and effect. This First Amendment to Note shall be affixed to the Note.

[Signature Pages Follow]

 

 

     IN WITNESS WHEREOF, the undersigned have executed and delivered this First Amendment to Note
the day and year first above written.

	 	 	 	 	 
	 	COMPANY:

ENVIRONMENTAL TECTONICS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	LENDER:	 	 
	 
	 	 	 	 
	 

	 	 

H.F. Lenfestexv10w1

 

Exhibit 10.1

SETTLEMENT TERM SHEET

South Broward Hosp. Dist., et al. v. MedQuist Inc., et al.

Civil Action No.: 05-CV-2206-JBS-AMD

Settling Parties: The SETTLING PARTIES consist of Partners Healthcare System, Northbay
Healthcare Group, Hospital Corporation of America, St. Lukes Regional Medical Center, Palisades
Medical Center, Mt. Sinai Medical Center, Ascension Health Ministry, Bayonne Medical Center, Bon
Secours Health System, Inc., South Broward Memorial Hospital District, and University of Colorado,
and all related or associated facilities.

Settlement Payment: MedQuist shall make a single lump sum payment of $7,537,001.83 (the
“SETTLEMENT PAYMENT”) to resolve all claims (including all AAMT and non-AAMT related claims) of
the SETTLING PARTIES against MedQuist and all individual defendants that were or might have been
raised in the above-referenced action, including all claims relating to any billing issues.

Greenberg Traurig shall have sole discretion to decide how to distribute the SETTLEMENT PAYMENT
among the SETTLING PARTIES. However, MedQuist has not agreed and will not agree to make any payment
in excess of the accommodation offers to the SETTLING PARTIES. In this context, it is understood
and agreed that the $7,537,001.83 SETTLEMENT PAYMENT consists of the total sum of the accommodation
offers to the SETTLING PARTIES, including the value of all credits converted to cash, plus
reasonable legal fees and an additional $550,000 as reimbursement for litigation expense. Other
than as expressly provided herein, all parties shall bear their own expenses and costs of suit.

MedQuist is not waiving, and expressly reserves the right, to seek reimbursement from the SETTLING
PARTIES for all amounts outstanding and unpaid for services rendered (“aged AR”). With respect to
Partners specifically, before any of the SETTLEMENT PAYMENT will be released by the MedQuist,
Partners must bring current its aged AR.

Confidentiality: The individual settlements MedQuist has entered into with other customers
to date have been confidential. Accordingly, while the lump sum SETTLEMENT PAYMENT will need to be
publicly disclosed, the individual amounts distributed to the SETTLING PARTIES shall be
confidential and not revealed to each other or any third party.

Settlement Agreement: The SETTLING PARTIES shall execute a comprehensive settlement
agreement, including mutual general releases of MedQuist Inc. and all individual defendants with
no admissions of any wrongdoing. The settlement agreement will include standard, non-monetary
terms, including but not limited to governing law and choice of forum, the Court’s continuing
jurisdiction over implementation of the settlement, where notices are to be sent, discovery of
additional facts not being a basis to rescind the agreement, opportunity to consult with counsel
and receive independent advice before signing the agreement, representations and warranties and
survival of same, non-disparagement provision, complete agreement of the parties and full
integration, modifications solely in writing, authority to sign on behalf of entity, severability
provision, signatures in counterparts.

 

 

Should Defendant MedQuist Inc. and/or Defendant MedQuist Transcriptions, Ltd. (collectively the
“MedQuist Defendants”) become subject to a case or proceeding under any Chapter of Title 11 of the
United States Code within 90 days of the SETTLEMENT PAYMENT, and if the SETTLEMENT PAYMENT or any
part thereof is rescinded or reduced in amount, restored or otherwise returned, whether as a
voidable preference, fraudulent transfer or otherwise, then unless any such deficiency in the
SETTLEMENT PAYMENT is repaid within 45 days, the SETTLING PARTIES’ claims against all Defendants in
the above-referenced action which were released under this settlement 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.

The SETTLING PARTIES must also covenant not to bring any further individual or class claims in any
proceeding arising out of the allegations in the above-referenced action and cooperate with
MedQuist by advising the Company if they are contacted to discuss or provide testimony in
connection with any proceeding related to the billing issues or receive a document request or
subpoena to produce documents in any such proceeding.

Dismissal with Prejudice: Upon execution of the settlement agreement by all parties,
plaintiffs shall dismiss all individual and class claims in the above-referenced action against
MedQuist and all individual defendants, with prejudice, and the parties shall execute all other
documents necessary to effectuate Court approval of the dismissal of the suit. Upon execution of
the settlement agreement by all parties, plaintiffs shall promptly seek the Court’s approval of
the dismissal of the action.

AGREED TO:

	 	 	 	 	 	 	 	 	 
	On behalf of the SETTLING PARTIES:	 	 	 	On behalf of MedQuist Inc.:
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mark Hogge
	 	 	 	By:
	 	/s/ Neal Marder (SRS)
	 

	 	 
	 	 	 	 	 	 
	 

	 	Mark Hogge
	 	 	 	 	 	Neal Marder
	 

	 	Greenberg Traurig, LLP
	 	 	 	 	 	Winston & Strawn LLP
	 

	 	2101 L Street, NW, Suite 1000
	 	 	 	 	 	333 South Grand Avenue
	 

	 	Washington, D.C. 20037
	 	 	 	 	 	Los Angeles, CA 90071
	 

	 	Tel: 202.530.8591
	 	 	 	 	 	Tel: 213.615.1728
	 

	 	Fax: 202.261.2659
	 	 	 	 	 	Fax: 213.615.1750

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]