Document:

exv10w29

Exhibit 10.29

Portions
of this exhibit were omitted and filed separately with the Secretary
of the Securities and Exchange Commission (the “Commission”) pursuant to an application for confidential
treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. Such portions are marked by a series of asterisks.

LICENSE AGREEMENT

defined hereinafter as “Agreement”

by and between

Nuance Communications, Inc.

One Wayside Road

Burlington, MA 01803

Hereinafter referred to as “Nuance” and / or “Licensor”

and

MedQuist Inc.

1000 Bishops Gate Blvd, #300

Mount Laurel, NJ 08054

Hereinafter referred to as “MedQuist” and / or “Licensee”

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-1-

 

	 	 	 
	Effective Date:

	 	November 10, 2009

Licensor Corporate Name:

Nuance Communications, Inc.

One Wayside Road

Burlington, MA 01803

	 	 	 
	Tel:

	 	(781) 565-5134
	Fax:

	 	+(781) 565-5562

	 	 	 
	Nuance Notices Address:

	 	Nuance Communications, Inc.
	 

	 	One Wayside Road
	 

	 	Burlington, MA 01803
	Attention:

	 	Legal Department
	Phone:

	 	781-565-5000
	Fax:

	 	781-565-5562

Contract Owner: -

Contract Manager (if different):

Licensee Corporate Name:

MedQuist Inc.

1000 Bishops Gate Blvd, #300

Mount Laurel, NJ 08054

	 	 	 
	Tel:

	 	(856) 206-4000
	Fax:

	 	(856) 206-4215

	 	 	 
	Contract Owner:

	 	Emmy Weber

Contract Manager (if different):

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-2-

 

ARTICLE 1: DEFINITIONS

The following terms shall have the meanings ascribed to them herein whenever they are used in this
Agreement, unless clearly indicated otherwise by the context.

	1.1	 	“Affiliates” shall mean any corporation, limited liability company, partnership or other
legal entity, present or future, which is owned or controlled or owns or controls or is under
common control with, directly or indirectly, a Party to this Agreement, as the case may be, as
long as such ownership or control exists and where control means ownership or control of more
than fifty (50) percent of voting stock in the case of a stock issuing entity, or more than
fifty (50) percent of voting control of a non-stock issuing entity.
	 
	1.2	 	“Agreement” shall mean this license agreement, including as an integral part, the Addenda,
all duly initialed, signed or otherwise accepted by the parties, and attached hereto or
included by reference, and any modifications and/or changes made from time to time in
accordance with the provisions hereof.
	 
	1.3	 	“ConText” shall mean a specific speech recognition software module, which can be added to the
Development Software, containing a specialized class of language resources optimized for a
specific user or application group (e.g. radiology)
	 
	1.4	 	“Designated Application” shall mean the applications made by Licensee specified in Addendum
B.
	 
	1.5	 	“Development Software” shall mean the Licensor’s Software Development Kit, specified in
Addendum A, including any ConText as per Addendum A , to be integrated into the Designated
Application in accordance with the Documentation, as provided by Licensor for the “Development
Software”. The items specified in Addendum A (i) and (ii) have been delivered to Licensee as
of the Effective Date. Development Software includes any Updates or Upgrades, including any
Updates and Upgrades to the ConTexts that Licensor makes available to all its customers as
part of its Maintenance services obligations, if applicable, as per Addendum E.
	 
	1.6	 	“Documentation” shall mean those visually readable materials, developed by or for Licensor
and made available to Licensee for use in connection with the Development

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-3-

 

	 	 	Software. Documentation includes operating instructions, input information and format
specifications.
	 
	1.7	 	“Effective Date” shall mean the date noted above in this Agreement.
	 
	1.8	 	“End-User” shall mean any customer of Licensee and/or of Third Parties, who will only be
granted the right to use the Run-Time Software in connection with the Designated Application.
	 
	1.9	 	“Run-Time Software” shall mean an object code / executable copy of software derived from the
Development Software (or any portion thereof) which is integrated into the Designated
Application.
	 
	1.10	 	“MedQuist “ and “Licensee” shall mean MedQuist Inc.
	 
	1.11	 	“Nuance” and “Licensor” shall mean Nuance Communications, Inc.
	 
	1.12	 	“Royalty Report” shall mean the monthly report submitted by Licensee as per Section 3.6.
	 
	1.13	 	“Third Parties” shall mean system houses, value added resellers and other such entities
engaged in doing business with Licensee, and who acquire the Designated Application,
incorporating the Run-Time Software into their applications, for marketing and distribution
purposes to End-Users.
	 
	1.14	 	“Territory” shall mean the country or countries as specified in Addendum C.

ARTICLE 2: GRANT OF SOFTWARE LICENSE

	2.1	 	Subject to the terms and conditions hereof, Licensor hereby grants to Licensee and Licensee
accepts from Licensor, a non-exclusive, non-transferable license for the Territory to:

	 	2.1.1	 	use the Development Software solely in connection with Licensee’s development,
distribution and provision of technical support, for Designated Application
incorporating Run-Time Software;

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-4-

 

	 	2.1.2	 	make Run-Time Software copies based on the Development Software solely for
incorporating into the Designated Application;
	 
	 	2.1.3	 	distribute and sublicense to End-Users directly or through Third Parties, copies
of the Run-Time Software incorporated into the Designated Application, and Documentation
in the Territory as it applies to Run-Time Software with ConText for Radiology and
Run-Time Software with ConText for Multi-Med, as per Addendum C 1 (a) and (b)
respectively, provided, that such sub-licenses to Third Parties shall be in compliance
with the provisions set forth in Section 2.2 hereof.
	 
	 	2.1.4	 	use copies of the Run-Time Software for the sole purposes of promotion,
demonstration, sales, implementation, testing, customer support in a non-production
environment on systems operated by Licensee.

	2.2	 	All licensing and distributions by Third Parties as referred to in Section 2.1.3 shall be
pursuant to written agreements with Licensee that comply with the applicable terms and
conditions hereof, including appropriate methods of calculation, reporting and payment of
applicable royalties.
	 
	2.3	 	Without prejudice to the provisions of this Article 2, it is furthermore expressly agreed
that the only right granted by Licensee to Third Parties is the right to distribute the
Designated Application incorporating the Run-Time Software.
	 
	2.4	 	Licensor’s language models and ConTexts will continue to be exclusively owned by Licensor and
shall be used and distributed by Licensee only with the Run-Time Software based on the
Development Software of Licensor.
	 
	2.5	 	Open Source Software: Licensee shall not perform any actions with regard to the Development
Software or Run-Time Software that would require the Development Software or any derivative
work thereof to be licensed under Open License Terms. These actions include but are not
limited to:
	 
	 	 	(i) combining the Development Software or Run-Time Software or a derivative work thereof with
Open Source Software, by means of incorporation or linking or otherwise; or
	 
	 	 	(ii) using Open Source Software to create a derivative work of the Development Software or
Run-Time Software.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-5-

 

	 	 	“Open Source Software” shall mean any open source software that if linked, combined or used
with the Development Software or Run-Time Software would create a risk, or have the “viral”
effect, of requiring the disclosure or licensure of the Development Software or Run-Time
Software as open source under the GNU General Public License or under the terms of any other
comparable viral open source license.
	 
	2.6	 	Development Software as per Addendum A, has specifications which are unique to Licensee,
which is different from Licensor’s generally commercially available version of SpeechMagic SDK
software. During the Term, Licensee may request Licensor to provide Development and Consulting
Services, to be paid as per the rates in Addendum C and subject to a mutually agreed Statement
of Work (SOW) , to enhance, modify or update the Development Software to match the
specifications of Licensor’s generally commercially available version of SpeechMagic SDK
software.

ARTICLE 3: Minimum Volume and Payment Commitment

	3.1	 	Minimum Volume Commitment: In consideration for the additional rights granted to Licensee
herein, including the additional license grant as per Article 2 for the inclusion of ConText
for Multi-Med into Development Software (as per Addendum A(iii)), and the Term, as per Article
7, Licensee makes the following minimum volume commitments (“MVC”):
	 
	 	 	3.1.1 ******* of all licenses of Front-End Speech Recognition software (such as the
Designated Application or similar) granted by Licensee to all its customers within the
Territory, will incorporate royalty bearing licenses of Run-Time Software as per this
Agreement (“Front-End MVC”).
	 
	 	 	3.1.2 ******* of total Lines (as defined below), generated by Licensee in Licensee’s
business of providing Transcription Services and by Licensee in its business of providing
Service Bureau Services, that utilize any Back-End Speech Recognition software (such as
Licensee’s DocQment Enterprise Platform or similar), will be generated using SpeechMagic,
the software product defined as the “Licensed Product”, as per that certain licensing
agreement (the “DEP Licensing Agreement”) dated May 22, 2000, as amended between MedQuist
Inc. and Philips Speech Recognition Systems Gmbh (“Back-End MVC”).
	 
	3.1.3	 	 The following terms are ascribed the corresponding meaning:

     (a) “Speech Recognition” means conversion of speech to text via a software program.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-6-

 

     (b) “Front-End Speech Recognition” means the Speech Recognition process which takes
place on the client computer rather than the server.

     (c) “Back-End Speech Recognition” means any Speech Recognition process which takes
place on a server rather than on a client computer.

     (d) “Line” means *******.

     (e) “Services Bureau Services” means the licensing of remote access to Licensee’s
software and hardware systems to enable Speech Recognition, with or without manual
transcription or editing services.

     (f) “Transcription Services” are the medical transcription and/or editing services
provided by Licensee to convert Dictation into Transcript. “Dictation” is the dictated audio
by a physician, recorded on digital media as a computer digital audio file for conversion
from voice into text or data and “Transcript” means the document or computer file resulting
from the conversion of Dictation into text or data.

	3.2	 	Minimum Payment:
	 
	3.2.1	 	During the Term, as set forth in Section 4.1.2, Licensee will pay Licensor a minimum amount
equal to ******* .
	 
	3.3	 	Licensee acknowledges that Licensor is entering into
this Agreement and has granted certain additional rights to
Licensee as inducement and in reliance of the MVC and the associated
Minimum Payment by Licensee, and that but for the agreement by Licensee
to the MVC and the associated Minimum Payment obligation pursuant to
Section 3.2, Licensor would not have granted such additional rights and
entered into this Agreement. In the event that Licensee does not meet the
MVC, Licensor’s sole remedy shall be the payment of the Minimum Payment
by Licensee as set forth in Section 3.2. A breach of the Minimum Payment
obligation by Licensee would be a substantial and material breach of this Agreement.
	 
	3.4	 	The parties further agree and clarify that:
	 
	 	 	(a) Back-End MVC and the associated Minimum Payment shall not include Acquired Volume.
“Acquired Volume” means those Lines and associated fees generated by an entity that is
acquired by Licensee after the Effective Date, which entity is engaged in the business of
providing medical transcription and editing services through the utilization of Back-End
Speech Recognition software for customers that such acquired entity has written agreements
with as of the date of its acquisition by Licensee. Acquired Volume shall include any Lines
added subsequent to the acquisition of such entity, for such customers with whom the
acquired entity has written agreements with as of the date of its acquisition by Licensee.
	 
	 	 	(b) Back-End MVC and the associated Minimum Payment shall always include (but not be limited
to) Existing Volume, irrespective of the (i) dictation/transcription platform used by
Licensee (i.e. Licensee’s DocQment Enterprise Platform or any other) to provide its services
or (ii) the Back-End Speech Recognition software utilized by Licensee to provide its
services. “Existing Volume” means the Lines, and the associated fees, generated by Licensee,
in Licensee’s business of providing Transcription Services and by Licensee in its business
of providing Service Bureau Services, that utilize Back-End Speech Recognition software that
are attributable to all Licensee customers as of the Effective Date.
	 
	 	 	(c) Back-End MVC and the associated Minimum Payment shall always include (but not be limited
to) New Volume, irrespective of (i) dictation/transcription platform used by Licensee (i.e.
Licensee’s DocQment Enterprise Platform) to provide its services or

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-7-

 

	 	 	(ii) the Back-End Speech Recognition software utilized by Licensee to provide its services.
“New Volume” means the Lines, and the associated fees, generated by Licensee, in Licensee’s
business of providing Transcription Services and by Licensee in its business of providing
Service Bureau Services, that utilize Back-End Speech Recognition software that are
attributable to all new Licensee customers acquired anytime after the Effective Date, but
not including Acquired Volume.

ARTICLE 4: LICENSE FEES / PAYMENTS

	4.1	 	Fees

     4.1.1 For all licenses of Run-Time Software incorporated in the Designated Application
licensed to End Users, Licensee will pay the license fees and Maintenance Fees as per the rates in
Addendum C of this Agreement.

     4.1.2 Licensee shall only pay the Minimum Payment amount as set forth in Section 3.2 if such
Minimum Payment amount is greater than the sum total of (i) the license fees and Maintenance Fee
due as per Section 4.1.1, and (ii) the fees due under the DEP Licensing Agreement.

4.2 Other Fees: Any support, training or other services other than Maintenance services provided by
Licensor under this Agreement will be invoiced at the end of each month (or, unless otherwise
agreed in an SOW, at the end of each calendar quarter with respect to the Development and
Consulting Services set forth in Section 6.3) in which said services are provided. Unless otherwise
provided in writing, all invoices are payable within ******* of date of invoice. Maintenance
services to be invoiced as per Section 6.5 of this Agreement.

4.3 Licensor is entitled to change the payment conditions to advance payment if Licensor is
reasonably of the opinion that Licensee did not fulfill its payment obligations as set forth in
this Agreement with respect to any undisputed invoiced and did not remedy this situation within
******* days after receipt of a respective reminder.

4.4 Late Payments: If Licensee fails to pay any undisputed invoiced amount due to Licensor within
******* , Licensor is entitled to claim from Licensee interest from maturity date to date of actual
payment of such amount, at the rate of seven and one-half percent (7.5%)

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-8-

 

above the prevailing bank rate as of the date of maturity, on the unpaid balance, together with any
Licensor costs of collection (including reasonable attorney’s fees). If Licensee disputes any of
the amounts payable by Licensee under this Agreement, Licensee shall so notify Licensor in writing
not later than the time at which such fees or other amounts are due, and such notice (a “Dispute
Notice”) shall provide reasonable detail regarding the amount and nature of the dispute. Upon
delivery of such Dispute Notice to Licensor, the parties agree to negotiate in good faith the
resolution of the payment dispute described in the Dispute Notice and resolve such payment dispute
within thirty (30) calendar days of delivery of the Dispute Notice.

4.5 Licensee will provide reports to Licensor, at end of each calendar month, in the form of a
written electronic statement, in connection with Licensee’s grant to its End-Users of licenses for
a Designated Application incorporating the Run-Time Software. The reports will include the relevant
data necessary to calculate the amount of the Licensee fees payable pursuant to this Agreement with
respect to each month, and the corresponding amount of license fees payable to Licensor in
connection therewith, shall be submitted to Licensor not later than the 20th of the
month following the end of each calendar month. Licensee shall submit to Licensor a detailed report
containing information with respect to each End-User as identified by a unique assigned number or
identifier, its state, its city, and the number of licenses delivered during the immediately
preceding calendar month, and the rolling total for the respective calendar year.

4.6 Licensee will provide a letter, at the end of each calendar quarter, signed by an authorized
officer of Licensee, certifying Licensee’s compliance with the terms of this Agreement, in
particular Article 3 of this Agreement.

4.7 In the event, an End-User does not accept a license for Designated Application incorporating
the Run-Time Software, after such license have been delivered to such End-User and reported by
Licensee in a Royalty Report, Licensee may transfer or redeploy such licenses to another End-User,
without incurring additional fees. The Maintenance Term for such redeployed licenses will be the
original delivery date when such licenses were first reported in a Royalty Report. This right to
redeploy licenses does not apply if the licenses are terminated after initial acceptance of the
Designated Application incorporating the Run-Time Software by the End-User. Furthermore, Licensee
cannot return such licenses to Licensor for a refund of

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-9-

 

any fees and Licensee’s payment obligation on these licenses will remain unchanged.

ARTICLE 5: WARRANTY

5.1 Licensor warrants that it has the right to grant the licenses contained in this Agreement.

5.2 Licensor warrants that the Development Software will perform substantially in accordance with
the specifications mentioned in the Documentation. Licensee acknowledges that the Development
Software is of such complexity, that it may have inherent defects. Licensee agrees that, if any
significant deviations from the Documentation exist, as Licensee’s exclusive remedy and Licensor’s
sole responsibility, Licensor shall use its commercially best efforts to eliminate any such
significant deviations reported to it by Licensee in writing. This warranty shall expire three (3)
months after delivery of each new release of the Development Software (the “Warranty Period”).

5.3 The express warranties stipulated in this clause constitute the sole warranty in respect of the
Development Software. Licensor offers no other warranty and therefore excludes all other warranties
of any nature whatsoever regarding the Development Software, whether express or implied, including
without limitation, warranties of merchantability or fitness for a particular purpose. Licensor
does not warrant that performance of the Development Software will be error-free or uninterrupted,
or that the functions contained in the Development Software will be suitable for or meet
Licensee’s, Third Parties’ or End-Users’ requirements. Licensee acknowledges that Licensor has made
no representations regarding warranty or liability other than as stated in this Agreement.

5.4 For the avoidance of doubt, this Agreement does not exclude warranties which cannot be excluded
as a result of applicable law and any liability incurred thereby shall be limited to correction or
replacement of the Development Software, at Licensor’s option.

ARTICLE 6: MAINTENANCE/TRAINING

6.1 Licensee commits to participate in integration training and training for support teams offered
by Licensor and insofar as Third Parties are involved by Licensee will also ensure that these Third
Parties participate. Licensor will provide ample opportunities at the Vienna

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-10-

 

location or at a location chosen by Licensee upon request. Upon passing the above training,
Licensee and / or Third Parties are allowed to provide end-user training and other related
services.

6.2 Unless otherwise agreed, Licensee and Third Parties shall at all times have in their
organization a minimum of two (2) technical support persons that have passed the training for
support teams as specified in Section 6.1. If a new version of the Licensee’s solution is
released, Licensee needs to make sure that its development team has participated in integration
training. When the Software is released, the integration shall be validated by Licensor.

	6.3	 	Licensor may provide Licensee, if mutually agreed in writing, with training services pursuant
to Section 6.1 and 6.2, and Development and Consulting Services related to Development
Software, as per the hourly rates in Addendum C, all of which will be invoiced separately.
	 
	 	 	6.3.1 Licensor will assign a minimum of *******  to provide ongoing Development and
Consulting Services to Licensee, at the hourly rate as per Addendum C. In consideration for
this minimum staffing level, Licensee will pay a minimum amount of ******* , beginning from
the Effective Date (“Development Minimum”). The initial ******* Development Minimum shall be
pro-rated based on the elapsed time of the ******* within which the Effective Date occurs and
the final ******* Development Minimum shall be pro-rated to reflect the termination date of
this Agreement.
	 
	 	 	6.3.2 This Development Minimum may be reduced or modified by Licensee *******. Upon mutual
agreement of a statement of work (SOW) for these Development and Consulting Services Licensor
will use reasonable efforts to hire or assign resources to the agreed upon staffing level as
soon as commercially practical.
	 
	 	 	6.3.3 At all times during the Term of this Agreement, Licensor shall maintain staffing levels
commensurate with the Development Minimum, as agreed upon as of the Effective Date as per
Section 6.3.1, and subsequently adjusted as per Section 6.3.2 of this Agreement, to provide
ongoing Development and Consulting Services to Licensee. In addition, Licensor agrees and
acknowledges that it shall have a sufficient number of appropriately trained back-up FTE’s
available at all times to ensure that the staffing levels associated with the then-current
Development Minimum shall be continuously maintained in the event regular staff assigned to
provide Development and Consulting Services to Licensee (i) terminates his or her employment
with Licensor or (ii) is unavailable because of vacation, illness or other leave.
	 
	 	 	6.3.4 “Development and Consulting Services” means services that are outside the scope of the
Maintenance services such as feature enhancement requests, additional software development,
professional services, etc., related to the Development Software and Designated Application,
as applicable. All Development and Consulting Services are

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-11-

 

	 	 	subject to a written SOW that describes in detail the deliverables and total price based on
number of hours required for these services, agreed in writing and signed by both parties.
	 
	6.4	 	The maintenance and support services are set forth in Addendum E (“Maintenance”). Maintenance
is provided by Licensor subject to Licensee paying the corresponding Maintenance fee as
specified in Addendum C (“Maintenance Fee”).
	 
	 	 	Maintenance services will begin upon delivery of each license of Run-Time Software
incorporated into the Designated Application, to an End-User, for an initial term of *******,
and will be invoiced as further described in Section 6.5 below. Thereafter, Maintenance shall
automatically renew for ******* terms (each, a “Renewal Service Term”) and Licensor will
continue to invoice annually unless (i) canceled in writing by either party at least thirty
(30) days prior to the ******* renewal date or (ii) termination of the entire Agreement.
Maintenance services will be provided as long as Licensee pays the corresponding Maintenance
Fee (“Maintenance Term”). Unless otherwise agreed, Maintenance with respect to End-User
licenses shall be purchased for all copies of the Run-Time Software licensed to such
End-User.
	 
	6.5	 	Maintenance Fees for the initial term of ******* will be invoiced following each *******
Royalty Report of new licenses, as per Addendum C. Nuance will invoice Licensee for
Maintenance Fees in respect of each Renewal Service Term at the percentage rate as per
Addendum C, prior to the first day of such Renewal Service Term. Licensee will pay such
Maintenance Fees within ******* of the invoice date.
	 
	6.6	 	If there is a break between the expiration or termination of Maintenance services and the
reinstatement of Maintenance services specific to an End-User, Licensee shall pay Nuance (i)
the Maintenance Fees that would have accrued during the intervening period between expiration
or termination of the Maintenance and the reinstatement thereof, and (ii) for any professional
services, at Nuance’s then-current rates, for the repairs or modifications necessary to bring
Licensee into compliance with Nuance’s then-current specifications. Such payments shall be
made prior to renewing any Maintenance, which will be renewed at then current Licensor rates.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-12-

 

	6.7	 	The parties acknowledge that, as of the Effective Date, Licensor has ******* employed to
provide Maintenance services provided for in this Agreement based on the amount of Maintenance
Fees paid by Licensee as of the Effective Date (the “Minimum Maintenance Staff”). Licensor
further agrees to adjust the number of Minimum Maintenance Staff FTEs proportionate to the
change in the amount of Maintenance Fees paid by Licensee during the Term. In addition,
Licensor agrees and acknowledges that it shall have a sufficient number of appropriately
trained back-up FTE’s available at all times to ensure that the Minimum Maintenance Staff
levels shall be continuously maintained in the event regular staff assigned to provide
Maintenance services to Licensee (i) terminates his or her employment with Licensor or (ii) is
unavailable because of vacation, illness or other leave.

ARTICLE 7: TERM

7.1 Initial Term and Renewal Terms. This Agreement shall, when signed by duly authorized
representatives of both parties, remain valid as follows:

	 	 	7.1.1 This Agreement shall become effective on the Effective Date and continue until June
30, 2015 (the “Initial Term”).
	 
	 	 	7.1.2 Following the Initial Term, and subject to Section 7.1.3 and 7.1.4, the Agreement may
be renewed, for two (2) successive terms of five (5) years each (each a “Renewal Term”). To
renew the Agreement for each Renewal Term, Licensee at its sole option must indicate its
intent to renew the Agreement by providing a written notice to Licensor, to be provided no
less than six (6) months prior to the end of the then-current Initial Term or Renewal Term
(each a “Notice Period”).
	 
	 	 	7.1.3 The parties agree that the same terms and conditions of this Agreement in effect at
the end of the then-current Initial Term or Renewal Term, will apply upon a renewal of this
Agreement as provided herein, including but not limited to the Minimum Payment as per
Article 3 of this Agreement, except for the pricing, as per Addendum C Section 2, which new
pricing must be determined and agreed to in writing by the

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-13-

 

	 	 	parties, based upon Licensor’s standard market prices for the Development Software and
services, in effect at the end of the then-current Initial Term or Renewal Term.
	 
	  	 	7.1.4 The parties shall negotiate new pricing upon receipt of Licensee’s written notice by
Licensor pursuant to Section 7.1.2. In the event that within thirty (30) days following
MedQuist providing Licensor with written notice of Licensee’s intent to renew pursuant to
Section 7.1.2, (i) Licensor does not respond to such notice from Licensee, or (ii) the
parties are unable to agree in writing to new pricing as per Section 7.1.3 for the proposed
Renewal Term, the Agreement will terminate on the date that is two (2) years from the end of
the then current Initial Term, or Renewal Term (the “Termination Period”). During the
Termination Period, all terms and conditions of this Agreement in effect at the end of the
then-current Initial Term or Renewal Term will apply, except for the Minimum Payment terms
as per Article 3 of this Agreement.

7.2 Notwithstanding Section 7.1 hereof, this Agreement may be terminated at anytime as follows:

	 	 	7.2.1 by Licensor: if Licensee fails to make timely payments or provide royalty reports as
required as per Article 4 of this Agreement, and any such failure is not remedied within
thirty (30) days after receipt by Licensee of Licensor’s written notice;
	 
	 	 	7.2.2 by Licensor: if Licensee expressly repudiates this Agreement by defaulting on or
refusing to observe the restricted use or confidentiality requirements as mentioned in this
Agreement, Licensor may terminate this Agreement immediately by providing written notice to
Licensee stating such breach, and any such breach is not remedied, where remediable, within
thirty (30) days after receipt by Licensee of such notice;
	 
	 	 	7.2.3 by either party: if a party ceases its business activities as a result of bankruptcy,
dissolution, liquidation, or other causes, the other party may immediately terminate this
Agreement by providing written notice to that party;
	 
	 	 	7.2.4 by either party: in case any substantial breach of this Agreement is not remedied by
the party in breach within thirty (30) days after receipt of the other party’s written notice
thereto.

7.3 Any termination of this Agreement shall terminate Licensee’s rights as defined in Article 2,
provided however that such termination does not terminate or affect sublicenses previously and
properly granted to End-Users and Third Parties.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-14-

 

7.4 Furthermore, upon any termination of this Agreement Licensee shall stop using the Development
Software and promptly return all Development Software and Documentation and any copies thereof, or
at Licensor’s request destroy such Development Software and Documentation and certify in writing by
a duly authorized representative that it has destroyed all such Development Software and
Documentation and any copies thereof, within ten (10) days upon Licensor’s first written request
thereto.

7.5 Upon termination of this Agreement neither party hereto shall be liable to the other party for
any damages, loss of profits or prospective profits of any kind or nature sustained, arising out of
or alleged to have arisen out of such termination, nor for any goodwill payments or similar
compensation.

7.6 The termination of this Agreement shall however not relieve or release Licensee from making
payments which are due under the terms hereof, nor shall termination of this Agreement affect any
right, liability or obligation of either party hereunder arising by reason of any event other then
termination. If this Agreement is terminated for cause by Licensor as per Section 7.2, Licensee
shall be obligated to pay Licensor the Minimum Payment and Development Minimum amount payments,
committed by Licensee as per Section 3.2 and 6.3.1 of this Agreement, that would otherwise be due
and payable for the balance of the then-current Initial Term or Renewal Term of this Agreement, and
the remaining term of the DEP Licensing Agreement, even though Licensee’s right to use the
Development Software is terminated upon such termination pursuant to Section 7.4. The termination
of this Agreement as per its terms shall not terminate the DEP Licensing Agreement.

ARTICLE 8: INTELLECTUAL PROPERTY RIGHTS INDEMNIFICATION

8.1 Subject to the provisions set forth herein, Licensor shall, at its own expense, defend any suit
brought against Licensee insofar as such suit is based upon a claim that the Development or
Run-Time Software in the form as delivered by Licensor hereunder and not modified in any way by
Licensee, alone and not in combination with any other product, directly infringes any third party
United States patent, copyright, trade secret or other intellectual property right (“third party IP
Rights”) when used in accordance with the terms of this Agreement, provided

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-15-

 

however that Licensor is notified promptly in writing by Licensee of such claim or suit for
infringement, is given full authority, at Licensor’s option, to settle or conduct the defense
thereof and is provided all information and reasonable assistance by Licensee in connection
therewith. In case these conditions have been met Licensor shall indemnify Licensee against any
final award of damages and costs in such suit. In case a third party refuses to grant a license
with a royalty based on the purchase price of the Development or Run-Time Software, Licensor will
only reimburse Licensee with an equitable percentage of the product price. Licensor shall not
reimburse costs and expenses made by Licensee without Licensor’s prior written consent. In the
event that the use of Development or Run-Time Software is held to constitute an infringement, or in
Licensor’s opinion such claim is likely to succeed, Licensor shall, at its option and at its
expense, either obtain for Licensee the right to continue using the Development Software or
Run-Time Software, substitute other software with equivalent functional capabilities, modify the
Development Software or Run-Time Software so that it is no longer infringing while retaining
equivalent functions or terminate this Agreement and refund the pro-rata royalties paid by Licensee
under Addendum C of this Agreement, in which case the applicable provisions of Sections 7.3 and 7.4
shall apply correspondingly.

8.2 Except as provided above, Licensor shall have no liability to Licensee, Third Parties and/or
End-Users in the event infringement of any third party IP Rights arises from components of a
Designated Application which are not derived directly from the Development Software or Run-Time
Software, operating of the Designated Application, but which are introduced into the Designated
Application by Licensee, or use of the Development or Run-Time Software for purposes for which
these were not intended, or which result from compliance with Licensee’s designs, specifications or
instructions, or from modification of the Development Software by Licensee.

8.3 The foregoing states the entire liability of Licensor in connection with infringement of third
party IPR by the Development Software and/or Run-Time Software supplied by Licensor hereunder and
except as stated in this clause, Licensor shall not be liable for any loss or damage of any kind
whatsoever, including any incidental, indirect, special or consequential damages, loss of
(prospective) profits and turnover, suffered or incurred by Licensee, Third Parties and/or
End-Users in respect of or in connection with the infringement of any third party IP Rights.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-16-

 

8.4 Notwithstanding anything to the contrary elsewhere in this Agreement, purchase or acquisition
of any Development Software or Run-Time Software under this Agreement DOES NOT convey an implied
license under any patent right that may be asserted by Licensor to use or operate the Development
Software or Run-Time Software in conjunction with other software, hardware or systems that may be
used with speech/voice recognition-type applications. In particular, Licensor and/ or respectively
its Affiliates has one or more patents that cover the use and/or operation of speech recognition
technology, as embodied in such Development Software or Run-Time Software, in conjunction with, or
coupled to, other software, hardware or telecommunication systems for which no patent license is
granted herein.

ARTICLE 9: LIABILITY

9.1 LIMITATION ON LIABILITY:

	 	 	9.1.1 EXCEPT FOR BREACH OF ARTICLE 10, IN NO EVENT SHALL LICENSOR BE LIABLE FOR ANY LOSS OF
OR DAMAGE TO REVENUES, PROFITS OR GOODWILL OR OTHER SPECIAL, INCIDENTAL, INDIRECT OR
CONSEQUENTIAL DAMAGES OF ANY KIND, RESULTING FROM ITS PERFORMANCE OR FAILURE TO PERFORM
PURSUANT TO THE TERMS OF THIS AGREEMENT OR RESULTING FROM THE FURNISHING, PERFORMANCE, OR USE
OR LOSS OF USE OF ANY DEVELOPMENT SOFTWARE, RUN-TIME SOFTWARE OR OTHER MATERIALS DELIVERED TO
LICENSEE HEREUNDER, INCLUDING, WITHOUT LIMITATION, ANY INTERRUPTION OF BUSINESS, WHETHER
RESULTING FROM BREACH OF CONTRACT, BREACH OF WARRANTY, OR ANY OTHER CAUSE.
	 
	 	 	9.1.2 EXCEPT FOR A BREACH OF SECTION 2.1 AND ARTICLE 10, IN NO EVENT SHALL LICENSEE BE LIABLE
FOR ANY LOSS OF OR DAMAGE TO REVENUES, PROFITS OR GOODWILL OR OTHER SPECIAL, INCIDENTAL,
INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, RESULTING FROM ITS PERFORMANCE OR FAILURE TO
PERFORM PURSUANT TO THE TERMS OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-17-

 

	 	 	INTERRUPTION OF BUSINESS, WHETHER RESULTING FROM BREACH OF CONTRACT, BREACH OF WARRANTY, OR
ANY OTHER CAUSE.

9.2 MAXIMUM LIABILITY: LICENSOR’S TOTAL LIABILITY TO LICENSEE FROM ANY AND ALL CAUSES SHALL BE
LIMITED TO THE TOTAL AMOUNT OF ALL LICENSEE PAYMENTS ACTUALLY PAID BY LICENSEE TO LICENSOR UNDER
THIS AGREEMENT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE THAT LICENSOR IS
NOTIFIED IN WRITING BY LICENSEE OF A CLAIM UNDER THIS AGREEMENT. THIS LIMITATION OF LIABILITY IS
CUMULATIVE WITH ALL LICENSOR PAYMENTS BEING AGGREGATED TO DETERMINE SATISFACTION OF THE LIMIT. THE
EXISTENCE OF MORE THAN ONE CLAIM SHALL NOT ENLARGE OR EXTEND THE LIMIT.

9.3 ANY CLAIM FOR DAMAGE UNDER THIS AGREEMENT SHALL BE PRESENTED TO THE LICENSOR AS SOON AS
POSSIBLE AFTER OCCURRENCE OF ANY OF SUCH EVENT, ULTIMATELY WITHIN ONE (1) YEAR AFTER THE
OCCURRENCE, WHEREAS ALL REASONABLE EFFORTS SHALL BE MADE TO MITIGATE SUCH DAMAGE.

ARTICLE 10: CONFIDENTIAL INFORMATION

10.1 “Confidential Information” shall mean any information conveyed in written, graphic,
machine-readable or other tangible form, or any information conveyed orally. Notwithstanding the
above, information shall not be deemed Confidential Information to the extent that it (i) was
generally known and available in the public domain at the time it was disclosed or subsequently
becomes generally known and available in the public domain through no fault of the recipient; (ii)
was known to and recorded by the recipient at the time of disclosure; (iii) is disclosed with the
prior written approval of the disclosing party; (iv) can be demonstrated by the recipient to have
been independently developed by it without any use of the disclosing party’s Confidential
Information; or (v) becomes known to the recipient from a source other than the disclosing party
without breach of this Agreement. The obligation not to use or disclose said Confidential
Information will remain in effect until one of these exceptions occurs.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-18-

 

10.2 Both parties agree not to disclose any Confidential Information made available to it by the
other party. Each party shall protect the other party’s Confidential Information from unauthorized
dissemination and use with the same degree of care that such party uses to protect its own like
information. Neither party will use the other party’s Confidential Information for purposes other
than necessary to directly further the purpose of this Agreement and as permitted in Article 2.
Neither party will disclose to third parties the other party’s Confidential Information without the
prior written consent of such other party. Except as expressly provided in this Agreement, no
ownership or license rights are granted in any trade secrets or Confidential Information.

10.3 Both parties agree that the terms and conditions hereof, and this Agreement itself shall be
considered as Confidential Information, except as expressly otherwise stated in this Agreement. Any
press releases concerning this Agreement, must be approved in writing by Licensor prior to release.

ARTICLE 11: RESTRICTED USE

11.1 Licensee shall not use, distribute or have distributed the Development Software as such, nor
shall Licensee use, distribute or have distributed any Run-Time Software in connection with or on
any application other than the Designated Applications.

11.2 Licensee shall pay for the Run-Time Software the license fee(s) in accordance with the model
defined in Addendum C. Licensee will implement the licensing conditions towards its End-customer in
a manner which provides sufficient transparency to Licensor that the obligations of Licensee for
the payment of the fees based on the applicable License models are met.

11.3 Licensee shall not recreate, generate or reverse-engineer any portion or version of the
Development Software or attempt any of the foregoing, or assist, abet or permit others to do so.
Licensee is not allowed to make any derivative works based on or make any modifications to the
Development Software, other than expressly agreed to in this Agreement. Furthermore,

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-19-

 

Licensee undertakes not to change, remove or obscure any labels, plates, (copyright-) notices or
other markings which appear on or are embodied in the said Software.

11.4 Licensee acknowledges that unauthorized reproduction or use of the Development Software and/or
Run-Time Software as provided in this Article 11 is a breach of a material obligation of this
Agreement and is subject to any available remedies for such breach.

ARTICLE 12: TITLE AND RIGHTS TO SOFTWARE AND MODIFICATIONS

12.1 Title, interests and rights in and to the Development Software, the Run-Time Software, in all
language versions, and Documentation is and shall remain with Licensor. The grant of license and
distribution rights by Licensor to Licensee under Article 2 hereof is Licensee’s only right to the
Development Software and the Run-Time Software.

12.2 Title, interests and rights to knowledge bases, localization help files and tutor, created and
compiled by Licensee shall remain with Licensee.

12.3 In order to protect the intellectual property rights of Licensor, the business and product
reputation of Licensor’s software, and the reputation of speech recognition products generally,
Licensor shall have the following rights: (1) to review all versions of the Designated Application,
including executable graphic user interface elements, overview text, “about boxes”, “Read-Me”
files, “splash-screens” and online help; (2) to review hardcopy documentation; (3) to test the
reliability of the Designated Application; (4) to assess the level of Licensee’s customer support;
(5) to review press releases about the Designated Application and sales and marketing materials,
whenever deemed appropriate by both parties; and (6) to require any reasonable changes in any of
the foregoing. Licensor shall have the right to delegate the rights 1 to 6 above to authorized
representatives. Licensee shall have the right to require Licensor to delegate the rights in
Section 12.3 (1), (2), (3) and (4) above to an independent third party, provided the parties share
in half the cost of such review by an independent third party appointed at Licensee’s request.
Licensor’s exercise of its right as per Section 12.3 (1) through (4) is limited to once in every
twelve month period as measured from the Effective Date or each anniversary of the Effective Date.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-20-

 

12.4 Licensee and/or Third Party shall be responsible for the preparation of all
documentation, both in hard copy format and electronic format to be sold with the Designated
Application, subject, however to Licensor’s rights to review the same as defined in Section 12.3.
Licensee and/or Third Parties shall also provide all customer support for the Designated
Application at its / their own expense. Licensor shall have access to Licensee’s facilities in
order to review and audit Licensee’s compliance with the terms and conditions set forth herein.
Such access shall be granted upon two (2) days prior notice from Licensor.

12.5 Upon request of Licensor, Licensee will provide any materials in its possession as may be
reasonably requested by Licensor in order to execute its rights as set forth in 12.3 and 12.4.

ARTICLE 13: TAXES

The Run-Time Software licensed hereunder is intended for use by End-Users and therefore should be
exempt from sales, use, excise and other similar taxes. However, if such tax, or any import duty,
or export duty, should be imposed on Licensor, Licensee shall either bear such tax or duty by a
direct payment to the taxing authority or shall reimburse Licensor for such tax or duty paid by
Licensor.

ARTICLE 14: USE OF LOGO 

Unless otherwise instructed by Licensor in writing at any moment in time Licensee and/or Third
Parties are obliged to use “powered by SpeechMagicTM” logo for all Designated Applications,
packaging, internet, advertising, initial splash screen and related SpeechMagic marketing material
of Licensee’s Designated Applications, or in the accompanying documentation. In addition the
“SpeechMagicTM” word marks can be used provided and as long as Licensee adheres to the Nuance
Corporate Guidelines, set forth by Addendum D to this Agreement.

ARTICLE 15: MISCELLANEOUS

15.1 Governing Law. The parties hereby agree that this Agreement will be governed by and construed
and interpreted in accordance with the laws of the State of New York and the laws of

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-21-

 

the United
States applicable in the State of New York, The parties agree that the U.N. Convention on Contracts
for the International Sale of Goods does not apply to this Agreement.

15.2 The invalidity or un-enforceability of any particular provision of this Agreement shall not
affect the other provisions, and this Agreement shall be construed in all respects as if such
invalid or un-enforceable provisions were omitted.

15.3 The failure of either party to insist in any one or more instances upon the performance of any
of the terms of this Agreement or to exercise any right hereunder, shall not be construed as a
waiver of the future performance of any such term or the future exercise of such right.

15.4 Whenever any occurrence (e.g. an event of “force majeure”) is delaying or threatens to delay
either party’s timely performance under this Agreement, such party will promptly give notice
thereof, including all relevant information with respect thereto, to the other party.

15.5 Any terms of this Agreement that by their nature extend beyond termination or expiration, such
as but not limited to Articles 3, 4, 5, 6, 7, 8, 9, 10 and 11 shall survive and continue and shall
bind the parties, their successors, their assigns and their legal representatives.

15.6 This Agreement sets forth and shall constitute the entire agreement between Licensee and
Licensor with respect to the subject matter thereof, and shall supersede any and all prior
agreements, understandings, promises and representations made by one party to the other, in writing
or orally, concerning the subject matter herein and the terms and conditions applicable thereto.
This Agreement may not be released, discharged, supplemented, interpreted, amended or modified in
any manner except by an instrument in writing signed by a duly authorized representative of each of
the parties hereto.

15.7 In making and performing this Agreement the parties act and shall act at all times as
independent contractors and nothing contained in this Agreement shall be construed or implied
to create the relationship of partner or of employer and employees, between the parties. At no time
shall either party make commitments for or in the name of the other party.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-22-

 

15.8 This Agreement is personal to the Parties, and therefore, it may not be assigned by either
Party whether voluntarily or involuntarily or by operation of law, in whole or in part, to any
party without the prior written consent of the other Party, which consent will not be unreasonably
withheld. No such assignment by either Party, howsoever occurring, will relieve the Parties of
their obligations under this Agreement. Notwithstanding the foregoing, either Party may assign this
Agreement without consent: (a) if this Party undergoes a change of control, whether by means of a
sale or issuance of shares or otherwise; (b) to any of its Affiliates or (c) to any purchaser of
substantially all of the assets or the business of this respective Party.

15.9 All notices under this Agreement shall be sent to the address mentioned above in this
Agreement. All such notices shall be deemed to be received by the other party three (3) days after
the postal date or on the date of signature of the receipt of delivery by a courier mail company.

15.10 The Addenda referenced in this Agreement, and the specifications referenced therein, as well
as other documentation which now or hereafter may become expressly incorporated to this Agreement
form part of this Agreement with the same force and effect as if fully set forth herein. In case of
any inconsistency between the provisions of this Agreement and those set forth in the referenced
Addenda or other referenced specifications or documentation, the terms and conditions of this
Agreement shall prevail, unless expressly set forth otherwise in any Addendum.

[SIGNATURES CONTAINED ON FOLLOWING PAGE]

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-23-

 

Licensee AND Licensor ACKNOWLEDGE THAT THEY HAVE READ AND AGREE TO BE BOUND BY THE ATTACHED TERMS
AND CONDITIONS.

IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN DULY SIGNED AND EXECUTED BY THE AUTHORISED
REPRESENTATIVES OF BOTH PARTIES HERETO, AS OF THE EFFECTIVE DATE.

SO AGREED AND SIGNED:

	 	 	 	 	 	 	 	 	 
	LICENSEE	 	 	 	LICENSOR
	 
	 	 	 	 	 	 	 	 
	MEDQUIST INC.	 	 	 	NUANCE COMMUNICATIONS, INC.
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Peter Masanotti
	 	 	 	By:
	 	/s/ John Shagoury
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Peter Masanotti
	 	 	 	 	 	Name: John Shagoury
	 

	 	Title: President & CEO
	 	 	 	 	 	Title: President, Healthcare
	 
	 

	 	Date: November 10,2009
	 	 	 	 	 	Date: November 10, 2009

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-24-

 

ADDENDUM A

DEVELOPMENT SOFTWARE SPECIFICATION

Development Software:

	A.	 	(i) SpeechMagic Version 5.1(Alderaan) for the client portion of the software, as
customized and delivered to for MedQuist, consisting of the Software Development Kit
including API’s, Active X control interfaces and software building blocks, known as:
SpeechMagic Alderaan.

	 	 	(ii)	 	ConText for Radiology — North American English and United Kingdom English
	 
	 	 	(iii)	 	ConText for Multi-Med — North American English

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-25-

 

ADDENDUM B

DESIGNATED APPLICATION

1. Name of Partner’s application/solution:

(a) SpeechQ for Radiology, and

(b) SpeechQ for General Medicine

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-26-

 

ADDENDUM C

TERRITORY, PRICING and ORDERING

1. Territory:

(a) Territory for Run Time Software with Context for Radiology— North America, Australia and
United Kingdom.

(b) Territory for Run Time Software with ConText for Multi-Med—North America.

“North America” shall specifically include, without limitation: (i) the United States of America;
(ii) the Dominion of Canada; (iii) those islands in the Caribbean Basin beginning with Bermuda to
the north and extending to Grenada and Barbados in the south, as the borders of such countries are
configured as of the Effective Date of this Agreement.

The United States of America shall expressly include: (i) the following dependent areas of the
United States of America: American Samoa, Baker Island, Guam, Howland Island, Jarvis Island,
Johnston Atoll, Kingman Reef, the Midway Islands, Navassa Island, the Northern Mariana Islands,
Palmyra Atoll, Puerto Rico, the U.S. Virgin Islands, and Wake Island; (ii) those areas leased by
the United States from separate sovereign nations, including without limitation Guantanamo Bay,
Cuba;

The Dominion of Canada shall expressly include Hans Island, in the Kennedy Channel between
Ellesmere Island and Greenland, which area is subject to a border dispute between the Dominion of
Canada and the Kingdom of Denmark.

“Australia” shall specifically include, without limitation (i) the Australian continent; (ii)
the major island of Tasmania; (iii) the Australian controlled islands in the Southern, Indian and
Pacific Oceans; and (iv) New Zealand (including the North Island and the South Island and the other
islands controlled by New Zealand, most notably Stewart Island/Rakiura and the Chatham Islands).

“United Kingdom” shall specifically include, without limitation: (i) the United Kingdom of Great
Britain and Northern Ireland (including England, Northern Ireland, Scotland and Wales); (ii) The
Crown Dependencies of the Channel Islands and the Isle of Man; and (iii) the British Overseas
Territories.

2. Pricing licenses , product prices and payment terms

(a)

Run Time Software with ConText for Radiology

	 	 	 	 	 
	 	 	 	 	License Fees payable to
	 	 	SpeechMagic SDK Runtime License Fee items	 	Nuance
	1.1

	 	SpeechMagic per Server License Fee
	 	*******
	 
	 	 	 	 
	1.2

	 	SpeechMagic per Workstation License
Fee*
	 	********
	 
	 	 	 	 
	1.3

	 	SpeechMagic per Concurrent User
License Fee*
	 	********

			
	 
	*	 	For every concurrent user or workstation, a Report Station needs to be purchased.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-27-

 

A concurrent user is a user that is logged into SpeechMagic: For example, if the number of
concurrent users is limited to 10, then the 11th users that wants to log into the system has to
wait until one user logs off. The number of concurrent users must be tracked by the Designated
Application.

The MSRP is subject to change upon notification by Licensor to Licensee; provided that,
notwithstanding such changes to the MSRP from time to time, each of the items in rows 1.2 and 1.3
shall in no event exceed *******.

Maintenance Fee: Run Time Software with ConText for Radiology—******* of license fees payable as
per above table.

(b)

Run Time Software with ConText for Multi-Med

*******

* License fee payable to Licensor by Licensee is based on total number of individual users or
named-user licenses per End-User customer order. Licensee is not entitled to a cumulative
discount, or lower license fee based on multiple unique customer licenses. Licensee shall be
entitled to transfer a named-user license within an End-User, without incurring additional fees,
upon the departure of an individual user associated with the named-user license at the End-User.

Maintenance Fee: Run Time Software with ConText for Multi-Med— ******* of license fees
payable as per above table.

(c) Development and Consulting Services, and Training Fees: ******* . Beginning *******, Licensor
reserves the right to update these fees to *******.

(d) Invoices will be issued in US Dollars

(e) As of the Effective Date of this Agreement, Licensee has pre-paid ******* to be applied towards
hourly fees for Development and Consulting Services and/or training services, to be used anytime
during the Term.

(f) Licensor may at its own expense audit and take copies of Licensee’s books of account relating
to Licensee’s obligations as per this Agreement, at the place where such books are kept, in order
to verify Licensee’s compliance with the payment and other terms of this Agreement. Any such audit
shall be conducted by an independent professional auditor, on then (10) working days prior written
notice and during normal business hours. A copy of the report made by such auditor shall be
provided to both Parties at the same time. If any such audit reveals any underpayment to Nuance,
Licensee shall immediately pay the same together with interest at the rate of 10% per annum
calculated from the date such payment was due until such payment is actually made. If such
underpayment amounts to more than 5% for the sums due to Nuance, Licensee shall, in addition to
correcting such underpayment in accordance with above,
pay, to Nuance, as an additional penalty, an amount twice as high as the underpayment plus the
costs for such audit.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-28-

 

ADDENDUM D

CORPORATE COMPANY IDENTITY GUIDELINES OF LICENSOR

The guidelines below are valid at the time of signature of this License Agreement. It is the
Licensee’s responsibility to ensure that the latest guidelines are used (available from Nuance.

General

These guidelines explain how you, as an authorized partner, should employ the Nuance Corporate
Identity rules to ensure that the Nuance brand and “powered by SpeechMagicTM” stands out
from the brands of our competitors. If you have any questions about any aspect of the addendum,
please contact your Regional Marketing Manager.

Principles

1. powered by SpeechMagicTM

If you provide your own solution integrating or based on SpeechMagic, it is obligatory to use the
“powered by SpeechMagicTM” logo.

This logo has been especially introduced for our partner companies as both a designation and a mark
of excellence:

“powered by SpeechMagicTM” is synonymous with the following ACE values

	 	•	 	Accuracy: the right information, in the right place, at the right moment.
	 
	 	•	 	Convenience: saving time and energy, and cutting down frustration.
	 
	 	•	 	Efficiency: document creation with higher productivity for a shorter
turnaround time.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-29- 

 

“powered by SpeechMagicTM” is a sign that your solution is relying on industrial grade speech
recognition technology with highest accuracy levels for convenient workflow and efficient
information capturing.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-30- 

 

2. SpeechMagicTM

You may also use the SpeechMagic logo on your printed materials, your website and your advertising.
Respect a clear zone equal to the height of the ‘S’ around the wordmark.

Wherever possible the wordmark is to be shown in black on a white background. In situations where
there is a colored or photographic background the word mark can be shown in white.

The logos shown here are the only official SpeechMagic logos. No other logo (e.g. with a version
number) should be used.

The TM sign must be used with the name SpeechMagic in titles but not in continuous text.

3. Press

All press releases, which mention the names Nuance or SpeechMagic, need approval from Nuance
corporate communications department. A minimum of 4 working days is required for the approval of
press releases. As the approval process can take up to 2 weeks, we encourage consulting your
Regional Marketing Manager as early as possible.

4. Standard Texts

You may use the following texts to describe Nuance SpeechMagic. Translations are available on
request.

	 	•	 	develops and markets speech recognition technology
	 
	 	•	 	provides expertise and consultancy services including:

	 	•	 	Integration services
	 
	 	•	 	Deployment services
	 
	 	•	 	Support services
	 
	 	•	 	Productivity services

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-31- 

 

With more than 8,000 installations worldwide, Nuance SpeechMagic has established itself at the
forefront in providing professional solutions integrated into the professional workflow for
document creation, dictation, transcription and information capture.

SpeechMagicTM — Industrial grade speech recognition

SpeechMagic rises to the challenges of a globalized business world. At the same time, it guarantees
maximum flexibility to develop locally adapted solutions which are tailored to the specific needs
of each user.

SpeechMagic includes speech recognition technology for a broad portfolio of languages, expertise,
consulting, integration support and statistical evaluation — the platform for a network-based
solution for distributed installations throughout a hospital or a region.

SpeechMagic ensures

	 	•	 	seamless accessibility of reliable information
	 
	 	•	 	instant availability of information for the successful communication in the electronic
health record
	 
	 	•	 	highest levels of protection to guard against system failures and ensure access to
authorized personnel only
	 
	 	•	 	support of a variety of reporting scenarios enabling the choice of the preferred and
most efficient document creation workflow. (back-end, front-end, mobile reporting, etc.)

powered by SpeechMagicTM in numbers:

	 	•	 	integrated by more than 200 healthcare IT vendors
	 
	 	•	 	more than 8,000 sites installed in 45 countries
	 
	 	•	 	scalability up to 15,000 users
	 
	 	•	 	25 supported languages
	 
	 	•	 	more than 150 specialized ConTexts

Our technology is constantly evolving. Please make sure that the information and texts that you use
are up-to-date. Contact your Regional Marketing Manager.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-32- 

 

ADDENDUM E

MAINTENANCE AND SUPPORT SERVICES

Definitions

“Bug Fixes” shall mean solutions or workarounds to particular problems with the programs as
reported to Nuance via the hotline service (email, fax or telephone).

“Licensee’s Services” shall mean the services provided by Licensee to the End-Users as more
specifically described below.

“First-Level Support” shall mean basic help-desk functions typically including initial call
handling, call logging, assignment of call priority, queue placement, initial problem
diagnostic services for identifying problems and generic application faults, analysis, and
where possible, problem resolution, detailed product problem analysis (including any problem
duplication), detailed problem diagnostic services for identifying complex problems and
application faults, application of any service releases or end-user-specific fixes and
interface.

“Update” means an easy to install service pack, fix pack or service release to update the
Development Software, which includes, bug fixes, workarounds and possibly some new
functionalities, which Update is recommended to be installed at all existing users. An
Update is typically identified by an increase in a release or version number to the right of
the first decimal (for example, an increase from Version 5.1 to 5.2 or from Version 5.1.1 to
5.1.2). “Update” shall not be construed to include Upgrades.

“Upgrade” means a new release of the Development Software which new release may include
service packs, updates and/or new technology that Nuance generally releases to its customers
as part of its Maintenance services which may include some feature enhancements and/or
additional capabilities (functionality) over versions previously supplied to Licensee, and
typically is identified by an increase in the release or version number to the left of the
decimal (for example, an increase from Version 5.2 to Version 6.0). Upgrades do not include
new software and/or products that Nuance, in its sole discretion, designates and markets as
being independent from the Development Software

Licensee Obligations

Licensee shall be responsible for providing First Level Support to the End-Users as follows:

To receive Updates and Bug Fixes as they become available during the Maintenance Term and deploy it
within the Designated Application for its End-Users;

To comply with Nuance’s procedures for problem reporting from time to time;

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-33- 

 

To report the problems that cannot be resolved to Nuance’s local Product Hotline or to the Central
Product Hotline if no local Product Hotline is in place. Licensee shall describe the problem in
detail in the appropriate box of the Case Reporting Form to be provided to Licensee by Nuance.
Licensee must quote the name of the Development Software concerned, its release level, and the
latest date of the Update supplied to it or to the End-User concerned as well as a detailed
description of the problem;

To reproduce the problem also on their own test system in order to identify the problem;
and to provide all reasonably necessary test material and log files to make it possible to
reproduce a Problem on Nuance’s site, such as sound-files and image of the installed software.
Licensee will cooperate with Nuance in order to reproduce (duplicate) the Problem, to report to
Nuance how to reproduce the Problem and to help indicate that the Problem is located in the
Licensed Software.

To test Bug Fixes and, once satisfied, or if alternative solutions or workarounds to the problem
have been identified report that back to Nuance hotline that the problem is really solved

In order to facilitate the above Support, Licensee will be permitted to use Nuance’s hotline
service for problem reporting.

Nuance Obligations

Second Level Support is included in the Maintenance fees. Nuance shall be responsible for Second
Level Support with the following responsibilities:

Technical Support Hours, Monday — Friday, from 9.00 A.M. to 5.00 P.M. CET, excluding public
holidays.

Time and Material “overtime rates” available at the current prevailing hourly billable rates.

Supply to Licensee Second Level Support services during Nuance’s normal business hours which
include correction of errors found by Licensee in a supported release of the Development Software
(a) installed at any End-User’s testing area or at a pilot site or sites; or (b) installed by
End-Users;

Provide access to Bug Fixes on the Remote Access System (ftp server) chosen as appropriate by
Nuance for Bug Fixes or via email. It shall be Licensee’s responsibility to monitor the Remote
Access System to ensure that it becomes aware promptly of Bug Fixes, and to re-test all Bug Fixes
before supplying them to any End-User. It is Licensee’s responsibility to re-test the combination
of original Development Software releases and Updates and Upgrades prior to their installation at
End-User’s Site.

Subject to the nature and extent of the changes in the Development Software made by Nuance from
time to time, to supply to Licensee with either a different edition of the current release, an
Upgrade or Update. Nuance will support the most current version and one previously released version
of the Development Software. Upgrades and Updates, if and when available, will be

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-34- 

 

provided as part of the Maintenance services under the Agreement.

If, Nuance creates an Upgrade of the Development Software and Licensee has questions on such
Upgrade, Nuance, at its discretion, may provide up to 20 hours of remote technical support
services. If the total hourly time spent by Nuance exceeds 20 hours, any additional services are
subject to additional fees, based on standard professional services offering by Nuance.

Exclusions
from Maintenance: Unless otherwise agreed, Nuance shall not be obligated to
provide Maintenance for, or required as result of (i) any modification of Development Software by
anyone other than Nuance; (ii) if Development Software is used for other than its intended purpose;
(iii) if Licensee failed to properly install or maintain the Development Software (including any
associated equipment, software or firmware); (iv) any willful or negligent action or omission of
Licensee, (v) any computer malfunction not attributable to the Development Software; or (vi) damage
to Development Software from any external source, including computer viruses unattributable to
Nuance, computer hackers, or force majeure events.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

-35-exv10w56

Exhibit 10.56

STILWELL VALUE PARTNERS I, L.P.

A Delaware Limited Partnership

 

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

 

October 1, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	TABLE OF CONTENTS	 	 	A-l	 
	 
	 	 	 	 	 	 
	ARTICLE I Definitions	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE II Organization	 	 	9	 
	2.1
	 	Continuation of the Limited Partnership	 	 	9	 
	2.2
	 	Name of Partnership	 	 	9	 
	2.3
	 	Principal Office; Registered Office	 	 	10	 
	2.4
	 	Term of Partnership	 	 	10	 
	2.5
	 	Purposes and Powers of the Partnership	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE III Admission of Partners; Capital	 	 	11	 
	3.1
	 	Admission of Limited Partners	 	 	11	 
	3.2
	 	Capital Contributions	 	 	11	 
	3.3
	 	Withdrawal; Interest	 	 	12	 
	3.4
	 	Capital Accounts	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IV Allocations	 	 	12	 
	4.1
	 	Allocation of Net Profit and Net Loss	 	 	12	 
	4.2
	 	Allocation of Certain Expenditures	 	 	13	 
	4.3
	 	Incentive Allocation	 	 	13	 
	4.4
	 	Allocation to Avoid Capital Account Deficits	 	 	13	 
	4.5
	 	Allocation for Income Tax Purposes	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE V Accounting and Valuations	 	 	14	 
	5.1
	 	Books and Records	 	 	14	 
	5.2
	 	Reports	 	 	15	 
	5.3
	 	Filing of Tax Returns	 	 	15	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	5.4
	 	Valuation of Partnership Investments	 	 	15	 
	5.5
	 	Reserves; Adjustments for Certain Future Events	 	 	16	 
	5.6
	 	Tax Accounting	 	 	16	 
	5.7
	 	Determinations by the General Partner	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI Transfers and Withdrawals	 	 	17	 
	6.1
	 	Transfer of Interests of Limited Partners	 	 	17	 
	6.2
	 	Transfer of the Interest of the General Partner	 	 	19	 
	6.3
	 	Withdrawals	 	 	19	 
	6.4
	 	Withholding or Other Tax Obligations	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VII Management	 	 	22	 
	7.1
	 	Rights, Duties and Powers of the General Partner	 	 	22	 
	7.2
	 	Expenses	 	 	24	 
	7.3
	 	Rights of Limited Partners	 	 	24	 
	7.4
	 	Other Activities of Partners	 	 	25	 
	7.5
	 	Duty of Care; indemnification	 	 	25	 
	7.6
	 	Exculpation	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE VIII Dissolution and Liquidation	 	 	27	 
	8.1
	 	Dissolution of Partnership	 	 	27	 
	8.2
	 	Liquidation of Assets	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE IX Miscellaneous	 	 	28	 
	9.1
	 	Amendments	 	 	28	 
	9.2
	 	Special Power of Attorney	 	 	29	 
	9.3
	 	Notices	 	 	30	 
	9.4
	 	Agreement Binding Upon Successors and Assigns	 	 	30	 
	9.5
	 	Governing Law	 	 	30	 

A-2

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	9.6
	 	Not for Benefit of Creditors	 	 	31	 
	9.7
	 	Consents	 	 	31	 
	9.8
	 	Miscellaneous	 	 	31	 

A-3

 

STILWELL VALUE PARTNERS I, L.P.

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

     THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT of Stilwell Value Partners I, L.P. is
made as of this 1st day of October 2008 (the “Effective
Date”), by and among Stilwell Value LLC., as
General Partner, and such other Person or Persons who execute or consent in writing to be bound by
the terms of and are admitted to the Partnership under this Agreement as Limited Partners.

ARTICLE I

Definitions

     For purposes of this Agreement:

     “Act” means the Delaware Revised Uniform Limited Partnership Act, as amended from time to
time.

     “Affiliate” means with respect to a specified Person (a) any Person that directly or
indirectly through one or more intermediaries controls, is controlled by, or is under common
control with such Person, (b) any Person that is an officer, director, partner, member, or trustee
of, or serves in a similar capacity with respect to, such Person or of which such Person is an
officer, director, partner, member, or trustee, or with respect to which such Person serves in a
similar capacity, (c) any Person that, directly or indirectly, is the beneficial owner of 10% or
more of any class of equity securities of, or otherwise has a substantial beneficial interest in,
the specified Person or of which the specified Person is directly or indirectly the owner of 10%
or more of any class of equity securities or in which the specified Person has a substantial
beneficial interest, or (d) any spouse, child, or parent of the specified Person.

     “Agreement” means this Limited Partnership Agreement, as amended from time to time.

     “Capital Account” means with respect to each Partner the capital account established and
maintained on behalf of such Partner as described in Section 3.4.

     “Capital Contributions” means with respect to any Partner or Assignee as of any date, the
total amount of money and the fair market value of property that has been contributed to the
Partnership by such Partner (or any predecessor in interest) as of such date, as determined by the
General Partner in its sole discretion.

     “Certificate” means the certificate of limited partnership referred to in Section 2.1.

     “Closing Date” means the first date on or as of which a Limited Partner other than the
Initial Limited Partner is admitted to the Partnership.

A-4 

 

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor thereto.

     “Derivative Interest” means any contract or other right or interest of or relating to any
Security Interest, any group of Security Interests, any index or basket of Security Interests or
interest rate or other differential (basis), including, but not limited to, any put or call option
written by the Partnership or another, any swap contract, notional principal contract, cap, collar,
floor agreement, or other similar agreement, or any option to enter into any of the foregoing,
whether or not traded on an exchange.

     “Disability” means, with respect to a Person, a state or condition of incapacitated legal
disability or, through illness, age, or other cause, an inability to give reasoned consideration
to financial matters, which condition or inability is reasonably expected to last more than six
months.

     “Effective Date” shall have the meaning set forth in the Preamble.

     “Fiscal Period” means each period that starts on the Closing Date (in the case of the initial
Fiscal Period) and thereafter on the day immediately following the last day of the preceding
Fiscal Period, and that ends on the earliest of the following dates:

       
             (i) any date as of which any withdrawal or distribution of
capital is made by or to any Partner or as of which this Agreement provides for any amount to be
credited to or debited against the Capital Account of any Partner, other than a withdrawal or
distribution by or to, or an allocation to the Capital Accounts of, all Partners that does not
result in any change of any Partner’s Partnership Percentage;

     
               (ii) the date which immediately precedes any day as of which a contribution to capital is
accepted by the General Partner from any new or existing Partner; or

     
               (iii) any
other date which the General Partner selects in its sole discretion.

     “Fiscal Quarter” means any calendar quarter, unless the General Partner in its sole
discretion shall elect another fiscal quarter.

     “Fiscal Year” means each period commencing on January 1 of each year and ending on December
31 of such year.

     “General Partner” means Stilwell Value LLC, a Delaware limited liability company, any
substitute therefor admitted in accordance with the terms of this Agreement, and any other Person
hereafter admitted as an additional general partner.

     “Incentive Allocation” means, with respect to any Limited Partner for any Performance
Period, twenty percent (20%) of the amount by which (i) such Limited Partner’s Positive
Performance Change for such Performance Period, if any, exceeds (ii) the positive balance in such
Limited Partner’s Loss Account with respect to such Performance Period.

A-5 

 

     “Investment Company Act” means the Investment Company Act of 1940, as amended.

     “Investment” means any Security Interest, or Derivative Interest.

     “Limited Partner” means any person who has been admitted to the Partnership as a Limited
Partner and has not made a withdrawal of his entire Capital Account pursuant to Section 6.3 or
assigned his entire limited partnership interest pursuant to Section 6.1.

     “Loss Account” means a memorandum account for each Limited Partner to be recorded in the books
and records of the Partnership with respect to a Performance Period. The balance of the Loss
Account for the initial Performance Period with respect to a Limited Partner’s Capital Account
shall be zero. The balance of such Loss Account for each subsequent Performance Period shall be
calculated as follows:

       
             (i) The balance of such Loss Account shall equal the balance of such Limited Partner’s Loss
Account for the immediately preceding Performance Period, increased by the Negative Performance
Change or decreased (but not below zero) by the Positive Performance Change for the immediately
preceding Performance Period.

        
            (ii) If such Limited Partner makes a withdrawal as of the close of such prior Performance
Period or during the current Performance Period, any positive balance of the Loss Account shall be
reduced (but not below zero) by an amount determined by multiplying (a) such positive balance by
(b) a fraction, the numerator of which is the amount withdrawn and the denominator of which is the
balance of such Limited Partner’s Capital Account immediately before giving effect to such
withdrawal.

     “Managed Account” means any asset or investment of the General Partner or Affiliate of the
General Partner, or any asset managed by the General Partner or any Affiliate of the General
Partner for the account of any party other than the Partnership, which are invested or available
for investment in investment or trading activities, whether or not of the specific type being
conducted by the Partnership.

     “Net Assets” means, as of any date, the total value of all Investments and other assets of
the Partnership as of such date as determined by the General Partner in accordance with Section
5.4, minus an amount equal to all debts, liabilities and obligations of the Partnership as of such
date (including any reserves for contingencies accrued pursuant to Section 5.5). Except as
otherwise expressly provided herein:

         
           (i) Net Assets as of the first day of any Fiscal Period shall be determined on the basis of
the valuation of assets conducted as of the close of the immediately preceding Fiscal Period
(after giving effect to withdrawals by, or distributions payable to, any Partner which are
effective as of the close of the immediately preceding Fiscal Period), except that Capital
Contributions made by any Partner after the last day of such immediately preceding Fiscal Period
shall be added to such assets; and

      
              (ii) Net Assets as of the last day of any Fiscal Period shall not give effect to any of the
following amounts:

A-6 

 

          (A) withdrawals by or distributions payable to any Partner which are
effective as of the date on which such determination is made; and

          (B) withholding taxes, expenses of processing withdrawals, other payables,
and increases or decreases in any reserves or other amounts recorded pursuant to
Section 5.5 during the Fiscal Period ending as of the date on which such
determination is made, to the extent the General Partner in its sole discretion
determines in accordance with this Agreement that such items are not to be charged
ratably to the Capital Accounts of all Partners on the basis of their respective
Partnership Percentages as of the commencement of the Fiscal Period.

     “Net Loss” means, with respect to any Fiscal Period, any amount by which the Net Assets as of
the first day of the Fiscal Period exceed the Net Assets as of the last day of such Fiscal Period.

     “Net Profit” means, with respect to any Fiscal Period, any amount by which the Net Assets as
of the last day of the Fiscal Period exceed the Net Assets as of the first day of such Fiscal
Period.

     “Offering Costs” means all expenditures classified as “syndication expenses” under Section
1.709-2(b) of the Treasury Regulations promulgated under Section 709 of the Code; provided,
however, that neither placement nor solicitation fees may be considered “Offering Costs” for
purposes of this Agreement.

     “Organizational Costs” means any and all expenses (including, without limitation, travel
expenses, printing costs, legal and accounting fees, and other out-of-pocket expenses) incurred in
connection with the organization of the Partnership.

     “Partner” means the General Partner or any of the Limited Partners, except as otherwise
expressly provided herein, and “Partners” means the General Partner and all of the Limited
Partners.

     “Partnership” means the limited partnership formed pursuant to this Agreement.

     “Partnership Percentage” means, with respect to any Partner for any Fiscal Period, a
percentage determined by dividing the amount of the Partner’s Capital Account as of the beginning
of the Fiscal Period (after crediting to such Capital Account the initial Capital Contribution of
the Partner (in the case of a Partner who is admitted to the Partnership as of such date) by the
sum of the Capital Accounts of all of the Partners as of the beginning of the Fiscal Period
(after crediting all Capital Contributions to the Partnership which are effective as of such
date). The sum of the Partnership Percentages of all Partners for each Fiscal Period shall equal
one hundred percent (100%).

     “Performance Change” means, with respect to each Limited Partner for each Performance
Period, the difference between:

                    (i) the sum of (A) the balance of such Limited Partner’s Capital Account as of the close of
the Performance Period (after giving effect to all allocations to

A-7 

 

be made to such Capital Account as of such date, other than any Incentive Allocation to be
debited against such Limited Partner’s Capital Account), plus (B) any debits to such Limited
Partner’s Capital Account to reflect any actual or deemed distributions or withdrawals from such
Capital Account as of the end of the Performance Period, plus (C) any debits to such Limited
Partner’s Capital Account during the Performance Period to reflect any items allocable to such
Limited Partner’s Capital Account pursuant to Section 4.2 or Section 6.4 hereof; and

                    (ii) the balance of such Limited Partner’s Capital Account as of the beginning of the
Performance Period (after giving effect to Capital Contributions that are effective as of such
date).

     If the amount specified in clause (i) exceeds the amount specified in clause (ii), such
difference shall be a “Positive Performance Change,” and if the amount specified in clause (ii)
exceeds the amount specified in clause (i), such difference shall be a “Negative Performance
Change.” If a Limited Partner receives a distribution or makes a withdrawal of less than all of
its Capital Account (an “Interim Withdrawal”) prior to the last day of a Fiscal Year, a separate
computation of the Performance Change shall be made with respect to the distributed or withdrawn
amount as of the date of such withdrawal or distribution. In that case, (A) the amount distributed
or withdrawn shall be deemed to be the amount specified in clause (i) and (B) an amount equal to
the balance in the Capital Account as of the beginning of the Performance Period (determined as
set forth in clause (ii)), multiplied by the ratio of the amount distributed or withdrawn to the
Capital Account balance as of immediately before such withdrawal or distribution (before taking
into account the amount of such withdrawal or distribution), shall be deemed to be the amount in
clause (ii). In determining the amount of the Performance Change with respect to such Limited
Partner for the Performance Period which includes the date of such Interim Withdrawal, the amount
specified in clause (ii) above shall be determined without regard to the portion of the beginning
Capital Account which was taken into account in determining the Incentive Allocation under the
preceding sentence.

     “Performance Period” means, with respect to each Limited Partner, the period commencing as of
the date on which the General Partner has accepted the Capital Contribution of the Limited Partner
and the Limited Partner has been admitted to the Partnership (in the case of the initial
Performance Period), and thereafter commencing as of the day following the last day of the
preceding Performance Period with respect to such Limited Partner, and ending as of the close of
business on the first to occur of the following after the relevant commencement date:

                    (i) the date the Partnership liquidates a substantial position;

                    (ii) any distribution to or any complete or partial withdrawal by such Limited Partner of his,
her, or its then Capital Account balance (provided that the Performance Period shall end at that
time only with respect to the amount distributed to or withdrawn by the Limited Partner);

                    (iii) the admission as a substitute Limited Partner of a person to whom the entire interest
of such Limited Partner has been Transferred; or

A-8 

 

                    (iv) the final distribution to such Limited Partner following the dissolution of the
Partnership.

     “Person” means any natural person, corporation, firm, joint venture, partnership, trust,
unincorporated organization, government or any department, political subdivision or agency of a
government.

     “Plan Asset Regulations” means the U.S. Department of Labor plan asset regulations (as set
forth in Section 2510.3-101 of the U.S. Department of Labor regulations).

     “Positive Basis” means, with respect to any Partner and as of any time of calculation, the
excess of the amount distributed to such Partner upon complete or partial withdrawal from or
liquidation of the Partnership over such Partner’s “adjusted tax basis” in its Partnership
interest at such time (determined without regard to any adjustments made to such adjusted tax
basis by reason of any transfer or assignment of such interest, including by reason of death).

     “Positive Basis Partner” means any Partner who withdraws some or all of his Capital Account
and who has Positive Basis as of the Withdrawal Date of such withdrawal.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security” means (i) any stock, beneficial interest, partnership interest, investment
contract, cash contract, bond, note, debenture, trust receipt, certificate, loan participation,
investment product, or other security of any kind (including, without limitation, any “security”
as that term is defined in Section 2(a)(1) of the Securities Act, or (ii) any contract for future
or forward delivery of any Security.

     “Transfer” means any sale, exchange, transfer, assignment, pledge, or other disposition by a
Partner of his interest in the Partnership to another party, whether voluntary or involuntary.

     “Withdrawal Date” means the date as of which a withdrawal permitted or required under this
Agreement is effective.

ARTICLE II

Organization

          2.1 Continuation of the Limited Partnership. The parties hereto hereby agree to
continue the Partnership as a limited partnership pursuant to this Agreement and the Act. Any
previous agreement for the governance of the Partnership is hereby superseded in its entirety. The
General Partner has filed the Certificate with the Secretary of State of Delaware and shall do all
other things required to maintain the formation of the Partnership as a limited partnership and to
authorize the conduct of its business in all jurisdictions where the Partnership intends to
conduct business.

          2.2 Name of Partnership. The name of the Partnership shall be “Stilwell Value
Partners I, L.P.” or such other name as the General Partner may hereafter adopt upon (i) filing
an amendment to the Certificate with the Secretary of State of Delaware and (ii) sending

A-9 

 

notice thereof to the Limited Partners. The Partnership shall have the exclusive ownership
and right to use the Partnership name so long as the Partnership continues, but upon the
Partnership’s termination, the Partnership shall assign the name and the goodwill attached
thereto to the General Partner without payment by the General Partner of any consideration
therefor.

          2.3 Principal Office; Registered Office. The Partnership shall have its principal
office at 26 Broadway, 23rd Floor, New York, New York 10004, or at such other location as the
General Partner shall designate from time to time. The Partnership shall have its registered office
in Delaware at 15 East North Street, Dover, Delaware. The Partnership’s registered agent for
service of process in Delaware shall be XL Corporate Services, Inc., 15 East North Street, Dover,
Delaware 19901, unless a different registered office or agent is designated from time to time by
the General Partner.

          2.4 Term of Partnership. The term of the Partnership shall commence on the date on
which the Certificate is filed with the Secretary of State of Delaware and shall continue until
dissolved pursuant to Section 8.1 hereof (unless its term is extended pursuant to Section 8.1).

          2.5 Purposes and Powers of the Partnership. The Partnership is organized for the
purpose of seeking long-term capital appreciation through investing in a few (possibly only one)
undervalued financial institutions. The Partnership shall have the authority to enter into and
perform all contracts and other undertakings, and engage in all other activities and transactions
as the General Partner may deem necessary, advisable, or convenient for carrying out the purposes
of the Partnership, including (but not limited to) the authority to:

               (a) Purchase, hold, sell, exchange, lend, transfer, mortgage, pledge, and otherwise acquire
and dispose of, and exercise all rights, powers, privileges, and other incidents of ownership or
possession with respect to Investments and the proceeds therefrom;

               (b) Purchase and hold for investment Investments which may not be resold in the absence of an
effective registration statement relating thereto under the Securities Act or an exemption from
such registration requirements;

               (c) Organize or participate and invest in one or more joint ventures, partnerships (limited
or general), corporations, limited liability companies, or other entities, whether or not
controlled by the Partnership.

               (d) Borrow or raise moneys and obtain letters of credit, and, from time to time without
limitation as to amount or manner and time of repayment, issue, accept, endorse, and execute
promissory notes, drafts, bills of exchange, bonds, debentures, and other negotiable or
nonnegotiable instruments and evidences of indebtedness, and secure the payment of such or other
obligations of the Partnership by mortgage upon, or hypothecation or pledge of, all or part of the
property of the Partnership whether at the time owned or thereafter acquired;

               (e) Attempt to gain board representation, meet with management of a company to discuss
shareholder concerns, initiate the solicitation of proxies, write to other shareholders about a
company’s inability to achieve shareholder value or to otherwise influence the policies of the
board of a company in which the Partnership invests. The Partnership may

A-10

 

also publicize its dissatisfaction with a company through various media, including submitting
correspondence between the Partnership and other shareholders to the press, making public
statements about the company’s activities or any other actions as deemed appropriate by the General
Partner in order to gain the board’s attention.

ARTICLE III

Admission of Partners; Capital

          3.1 Admission of Limited Partners.

               (a) The General Partner may, on the Closing Date and at such other times as the General
Partner may determine in its sole discretion, and without advance notice to or consent of the
Limited Partners, admit as a Limited Partner any Person who shall execute a counterpart of this
Agreement or otherwise agree in writing to be bound hereby unless the investment by such Person in
the Partnership would have any of the effects described in clauses (i) through (iv) of Section
6.1(c) herein. Any investor subscribing to the Partnership when the Partnership is holding a
substantial investment position, may be required to contribute an additional amount, to be
determined at the sole discretion of the General Partner, to cover such Partner’s portion of any
organizational costs and any increase in value of the partnership’s assets. Except to the extent
provided in this Agreement, the manner of the offering of limited partnership interests, the terms
and conditions under which subscriptions for such limited partnership interests will be accepted,
the manner of and conditions to the sale of limited partnership interests to subscribers therefor,
and the admission of such subscribers as Limited Partners shall be prescribed by the General
Partner in its sole discretion. The General Partner shall have the absolute discretion to reject
subscriptions for limited partnership interests in the Partnership.

          3.2 Capital Contributions.

               (a) Each Limited Partner shall make an initial Capital Contribution to the Partnership in the
minimum amount of $100,000 subject to the right of the General Partner to accept lesser amounts,
in its sole discretion.

               (b) The General Partner may cause the Partnership to accept additional Capital Contributions
at such times and in such minimum amounts as may be determined by the General Partner in its sole
discretion; provided, however, that no Limited Partner shall be obligated to make any additional
Capital Contribution to the Partnership, subject to the provisions of Sections 5.5 and 6.4 and any
contrary provision of the Act.

               (c) The General Partner in its sole discretion shall have the right at any time to make
Capital Contributions to the Partnership as a Limited Partner or General Partner.

               (d) Except as otherwise permitted by the General Partner in its sole discretion, (i) all
initial or additional Capital Contributions shall be payable in immediately available funds and
in one installment, and (ii) initial Capital Contributions shall be due as of the date of
admission of such person as a Limited Partner.

A-11

 

          3.3 Withdrawal; Interest. Except as otherwise provided in this Agreement, no Partner
shall have the right to the return of his Capital Contributions, and no Partner shall be entitled
to receive interest on his Capital Contributions or Capital Account. The General Partner shall not
be liable for the return of any portion of the Capital Contributions of any Partner.

          3.4 Capital Accounts.

               (a) The Partnership shall maintain a separate Capital Account for each Partner in accordance
with the provisions of this Section 3.4.

               (b) Each Partner’s Capital Account shall have an initial balance equal to the Partner’s
initial Capital Contribution to the Partnership.

               (c) Each Partner’s Capital Account shall be increased by the sum of (i) the amount of any Net
Profit allocated to such Partner’s Capital Account pursuant to Sections 4.1 and 4.4, (ii) the
amount of any redemption or transfer charge which is required to be credited to the Capital
Accounts of continuing Partners pursuant to Section 6.1(i) or Section 6.3(f), (iii) any decreases
in any reserves recorded by the Partnership pursuant to Section 5.5(a), and any receipt determined
to be applicable to a prior Fiscal Period pursuant to Section 5.5(b), to the extent that such
receipt is not credited to such Partner’s Capital Account in accordance with such Partner’s then
current Partnership Percentage, and (iv) in the case of the General Partner, the amount of any
Incentive Allocation which is required to be credited in accordance with Section 4.3.

               (d) Each Partner’s Capital Account shall be reduced by the sum of (i) the amount of any cash
and the value of any property withdrawn by or distributed to such Partner pursuant to Section 6.3
or 8.2, including any amount deducted from any such withdrawal or distribution pursuant to Section
6.3(f), (ii) the amount of any Net Loss allocated to such Partner’s Capital Account pursuant to
Sections 4.1 and 4.4, (iii) any withholding taxes or other expense items charged to such Partner’s
Capital Account pursuant to Sections 4.2 and 6.4, (iv) any Incentive Allocation charged to such
Partner’s Capital Account pursuant to Section 4.3, (v) any increase in any reserve recorded by the
Partnership pursuant to Section 5.5(a), and (vi) any payment determined to be applicable to a
prior Fiscal Period pursuant to Section 5.5(b), to the extent that such payment is to be charged
to such Partner’s Capital Account on a basis which is not in accordance with the current
respective Partnership Percentages of all Partners.

               (e) In the event that a Limited Partner makes an additional Capital Contribution pursuant to
Section 3.2(b), then such Partner’s Capital Account shall be increased in the amount of such
additional Capital Contribution in accordance with this Section 3.4.

ARTICLE IV

Allocations

          4.1 Allocation of Net Profit and Net Loss. Subject to the special allocation
provisions of this Article IV, as of the last day of each Fiscal Period, any Net Profit or Net
Loss for the Fiscal Period shall be allocated among and credited to or debited against the Capital
Accounts of the Partners in proportion to their Partnership Percentages for the Fiscal Period.

A-12

 

          4.2 Allocation of Certain Expenditures.

               (a) Except as otherwise provided for in the Agreement, any expenditures payable by
the Partnership, to the extent determined by the General Partner in its sole discretion
to have been paid or withheld on behalf of, or by reason of particular circumstances
applicable to, one or more but fewer than all of the Partners (including, without
limitation, charges imposed on a transferor Partner under Section 6.1(i) and charges
imposed upon a withdrawing Partner under Section 6.3(f)), shall be charged to only those
Partners on whose behalf such payments are made or whose particular circumstances gave
rise to such payments. Such charges shall be charged to the Capital Accounts of such
Partners as of the close of the Fiscal Period during which any such items were accrued
by the Partnership.

               (b) Offering Costs incurred in any Fiscal Year shall be held in suspense until the
Fiscal Period ending on the last day of the Fiscal Year and shall be allocated among the
Limited Partners in accordance with their Partnership Percentages for such Fiscal
Period.

          4.3 Incentive Allocation. As of the close of each Performance Period
(generally, when the Partnership disposes of a substantial investment), the General
Partner’s Capital Account will be credited with an Incentive Allocation with respect to
each Limited Partner, and an Incentive Allocation will be debited from each Limited
Partner’s Capital Account, or, in the case of a complete or partial withdrawal by a
Limited Partner of his, her or its Capital Account balance when the Partnership has not
disposed of a substantial investment, the Incentive Allocation will be debited only from
the Capital Account of such Limited Partner. Once an Incentive Allocation is made, there
is no clawback or reallocation of the amount of the Incentive Allocation in the event of
subsequent losses.

          4.4 Allocation to Avoid Capital Account Deficits. To the extent that any
debits to the Capital Account of any Limited Partner pursuant to any provision of this
Article IV would reduce the balance of the Capital Account of any Limited Partner below
zero, that portion of any such debit shall instead be allocated to the Capital Account
of the General Partner. Any credits in any subsequent Fiscal Period which would
otherwise be allocable pursuant to this Article IV to the Capital Account of any Limited
Partner previously affected by the application of this Section 4.4 shall instead be
allocated to the Capital Account of the General Partner in such amounts as are necessary
to offset all previous debits attributable to such Limited Partner pursuant to this
Section 4.4 not previously recovered.

          4.5 Allocations for Income Tax Purposes.

               (a) Except as otherwise required by section 704(c) of the Code, items of income,
gain, deduction, loss, or credit that are recognized for income tax purposes in each
Fiscal Year shall be allocated among the Partners in such manner as to reflect
equitably amounts credited to or debited against each Partner’s Capital Account,
whether in such Fiscal Year or in prior Fiscal Years. To this end, the Partnership
shall establish and maintain records that shall show the extent to which the Capital
Account of each Partner, as of the last day of each Fiscal Year, includes amounts that
have not been reflected in the taxable income of such Partner. To the extent feasible
and equitable (as determined by the General Partner in its sole discretion), taxable

A-13

 

income and gains in each Fiscal Year shall be allocated among the Partners who have enjoyed the
related credits to their Capital Accounts, and items of deduction, loss and credit in each Fiscal
Year shall be allocated among the Partners who have borne the burden of the related debits to
their Capital Accounts.

               (b) To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to
Code Section 734(b) or Code Section 743(b) is required under Treasury Regulation §
1.704-1(b)(2)(iv)(m) to be taken into account in determining Capital Accounts, the amount of such
adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases
the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss
shall be specially allocated to the Partners in a manner consistent with the manner in which their
Capital Accounts are required to be adjusted pursuant to such provision of the Treasury
Regulations.

               (c) If the Partnership realizes net gains from the sale of Partnership assets for federal
income tax purposes for any Fiscal Year in which one or more Positive Basis Partners withdraws
from the Partnership pursuant to Section 6.3, the General Partner in its sole discretion may
elect: (i) to allocate such net gains among such Positive Basis Partners pro rata
in proportion to the respective Positive Basis of each such Positive Basis Partner, until either
the full amount of such net gains shall have been so allocated or the Positive Basis of each such
Positive Basis Partner shall have been eliminated; and (ii) to allocate any remaining net gains to
the other Partners in accordance with subsection (a); provided, however, that if,
following such Fiscal Year, the Partnership realizes net gains from a sale of a property
investment the proceeds of which are designated on the Partnership’s books and records as being
used to effect payment of all or part of the liquidating share of any Positive Basis Partner, such
net gains shall be allocated to such Positive Basis Partner to the extent of the amount, if any,
by which his or its Positive Basis as of the Withdrawal Date of its withdrawal exceeds the amount
allocated to such Partner pursuant to clause (i) of this sentence.

ARTICLE V

Accounting and Valuations

          5.1 Books and Records.

               (a) The General Partner shall keep books and records pertaining to the Partnership’s affairs
showing all of its assets and liabilities, receipts and disbursements, realized income, gains and
losses, Partners’ Capital Accounts, and all transactions entered into by the Partnership. Such
books and records of the Partnership shall be kept at its principal office.

               (b) The General Partner shall have the right to keep confidential from the Limited Partners,
for such period of time as the General Partner in its sole discretion deems reasonable, (i) any
information which the General Partner in its sole discretion believes to be in the nature of trade
secrets, (ii) any information the disclosure of which the General Partner believes is not in the
best interests of the Partnership or could damage the Partnership or its business, and (iii) any
information which the Partnership is required by law or agreement with a third party to keep
confidential. Except to the extent provided in this Agreement, each Limited

A-14

 

Partner agrees that the General Partner in its sole discretion shall be entitled to preserve the
confidentiality of the information contained in the books and records of the Partnership to the
maximum extent permitted by law, and each Limited Partner waives and covenants not to assert any
claim or entitlement whatsoever to gain access to any such information, including any information
relating to any other Limited Partner or the Partnership’s trading activity.

          5.2 Reports.

               (a) The Limited Partners may be provided audited reports upon request, at the discretion of
the General Partner.

               (b) The General Partner may at any time and from time to time furnish such other reports or
other information to the Limited Partners in such form and having such content as the General
Partner may determine in its sole discretion.

               (c) As soon as practicable after the end of each taxable year, the General Partner shall
furnish to each Limited Partner such information as may be required to enable the Limited Partner
properly to report for federal and state income tax purposes his distributive share of each
Partnership item of income, gain, loss, deduction or credit for such year.

          5.3 Filing of Tax Returns. The General Partner or its designated agent shall prepare
and file, or cause the accountants of the Partnership to prepare and file, a U.S. federal
information tax return in compliance with Section 6031 of the Code, and any required state and
local income tax and information returns for each taxable year of the Partnership.

          5.4 Valuation of Partnership Investments.

               (a) The General Partner shall value the assets of the Partnership using the tax-basis of
accounting (generally, all investments will be valued at cost until such time as the Partnership
disposes of a substantial investment position). In determining the value of the assets of the
Partnership, no value shall be places on the goodwill or name of the Partnership, or the office
records, files, statistical data or any similar intangible assets of the Partnership not normally
reflected in the Partnership’s accounting records. The General Partner, in valuing investments,
may in its sole discretion select such other methods of valuation as it shall deem appropriate
under the circumstances. Without limiting the generality of the foregoing, the General Partner
may, in its sole discretion, adjust valuations to reflect restrictions on marketability,
illiquidity in certain investments, and any commission or other transaction fees.

               (b) Investment and trading transactions shall be accounted for on the trade date. Accounts
shall be maintained in U.S. dollars.

               (c) The value of each Investment and other asset of the Partnership and the net worth of the
Partnership as a whole determined pursuant to this Section 5.4 shall be conclusive and binding on
all of the Partners and all parties claiming through or under them.

A-15

 

          5.5 Reserves; Adjustments for Certain Future Events.

               (a) Appropriate reserves for contingent liabilities may be created, accrued and charged
against Net Assets and proportionately against the Capital Accounts in such amounts as the General
Partner in its sole discretion deems necessary or appropriate. The General Partner may increase or
reduce any such reserve from time to time by such amounts as the General Partner in its sole
discretion deems necessary or appropriate. At the sole discretion of the General Partner, the
amount of any such reserve, or any increase or decrease therein, may be charged or credited, as
appropriate, to the Capital Accounts of those Persons who are Partners at the time when such
reserve is created, increased, or decreased, as the case may be, or alternatively may be charged or
credited to those Persons who were Partners at the time of the act or omission giving rise to the
contingent liability for which the reserve was established.

               (b) If the General Partner in its sole discretion determines that it is equitable to treat an
amount to be paid or received as being applicable to one or more prior periods, then such amount
may be proportionately charged or credited, as appropriate, to those parties who were Partners
during such prior period or periods.

               (c) If any amount is to be charged or credited to a Person who is no longer a Partner, such
amount shall be paid by or to such Person, as the case may be, in cash. In the case of a charge,
the former Partner shall be obligated to pay the amount of the charge, as provided above, to the
Partnership on demand; provided that (i) in no event shall a former Partner be obligated to make a
payment exceeding the amount of its Capital Account at the time to which the charge relates, and
(ii) no such demand shall be made to the extent prohibited by applicable law. To the extent the
Partnership fails to collect, in full, any amount required to be charged to such former Partner
pursuant to paragraph (a) or (b) of this Section 5.5, whether due to the expiration of the
applicable limitation period or for any other reason whatsoever, the deficiency may be charged to
the Capital Accounts of all current Partners who were Partners during such period or periods that
the charge or credit was applicable in accordance with their respective Partnership Percentages
for such period or periods.

          5.6 Tax Accounting. The Partnership may adopt for tax accounting purposes any
accounting method that the General Partner in its sole discretion shall decide is in the best
interests of the Partnership and which is permissible for federal income tax purposes. The
Partnership currently utilizes a tax-basis method of accounting.

          5.7 Determinations by the General Partner.

               (a) All matters concerning the determination and allocation among the Partners of the amounts
to be determined and allocated pursuant to this Agreement, including any taxes thereon and
accounting procedures applicable thereto, shall be determined by the General Partner in its sole
discretion unless specifically and expressly otherwise provided for by the provisions of this
Agreement, and such determinations and allocations shall be final and binding on all the Partners.

               (b) The General Partner in its sole discretion may make such adjustments to the computation
of Net Profit or Net Loss, the Performance Change with respect

A-16

 

to any Limited Partner, or any component items comprising any of the foregoing as it considers
appropriate to reflect fairly and accurately the financial results of the Partnership and the
intended allocation thereof among the Partners.

ARTICLE VI

Transfers and Withdrawals

          6.1 Transfer of Interests of Limited Partners.

               (a) Each Limited Partner hereby agrees that he will not make or attempt to make any Transfer
of his interest in the Partnership that will violate this Section 6.1. In the event of any
attempted Transfer of any Limited Partner’s interest in the Partnership in violation of the
provisions of this Section 6.1, without limiting any other rights of the Partnership, the General
Partner in its sole discretion shall have the right to require the withdrawal of such Limited
Partner from the Partnership as provided by Section 6.3(g).

               (b) No Transfer of any Limited Partner’s interest in the Partnership, whether voluntary or
involuntary, shall be valid or effective, and no transferee shall become a substituted Limited
Partner, unless the prior written consent of the General Partner has been obtained, which consent
may be denied in the General Partner’s sole discretion.

               (c) No Transfer of any Limited Partner’s interest in the Partnership, whether voluntary or
involuntary, shall be valid or effective unless the General Partner in its sole discretion
determines, after consultation with legal counsel acting for the Partnership, that such Transfer
will not:

                    (i) require registration of any interest in the Partnership under any securities laws of the
United States of America, any state thereof, or any other jurisdiction;

                    (ii) subject the Partnership or the General Partner to a requirement to register under any
securities or commodities laws of the United States of America, any state thereof, or any other
jurisdiction;

                    (iii) result in a termination of the Partnership for U.S. federal income tax purposes under
section 708(b)(1)(B) of the Code or cause the Partnership to be treated as a “publicly traded
partnership” for U.S. federal income tax purposes under section 7704(b) of the Code;

                    (iv) violate or be inconsistent with any representation or warranty made by the transferring
Limited Partner at the time the Limited Partner subscribed to purchase an interest in the
Partnership.

               (d) The transferring Limited Partner or his legal representative shall give the General
Partner written notice before making any voluntary Transfer and after any involuntary Transfer
and shall provide sufficient information to allow legal counsel acting for the Partnership to
make the determination that the proposed Transfer will not result in any of the consequences
referred to in clauses (i) through (iv) of Section 6.1(c) above. If an assignment,

A-17

 

transfer or disposition occurs by reason of the death of a Limited Partner or assignee, the notice
may be given by the duly authorized representative of the estate of the Limited Partner or
assignee. The notice must be supported by proof of legal authority and valid assignment acceptable
to the General Partner in its sole discretion.

               (e) In the event any Transfer permitted by this Section 6.1 shall result in multiple ownership
of any Limited Partner’s interest in the Partnership, the General Partner in its sole discretion
may require one or more trustees or nominees to be designated to represent a portion of or the
entire interest transferred for the purpose of receiving all notices which may be given and all
payments which may be made under this Agreement, and for the purpose of exercising the rights which
the transferor as a Limited Partner had pursuant to the provisions of this Agreement.

               (f) Subsequent to receipt of the consent of the General Partner (which consent may be
withheld by the General Partner in its sole discretion), an authorized transferee shall be
entitled to the allocations and distributions attributable to the interest in the Partnership
transferred to such transferee and to transfer such interest in accordance with the terms of this
Agreement; provided, however, that such transferee shall not be entitled to the other rights of a
Limited Partner as a result of such transfer until he becomes a substituted Limited Partner. No
transferee may become a substituted Limited Partner without the consent of the General Partner
(which consent may be withheld by the General Partner in its sole discretion). A transferring
Limited Partner will remain liable to the Partnership as provided under applicable law and this
Agreement regardless of whether his transferee becomes a substituted Limited Partner.
Notwithstanding the above, the Partnership and the General Partner shall incur no liability for
allocations and distributions made to the transferring Limited Partner until a written instrument
of transfer has been received by the Partnership and recorded on its books and the effective date
of the Transfer has passed.

               (g) Any other provision of this Agreement to the contrary notwithstanding, a transferee shall
be bound by the provisions hereof. Prior to recognizing any Transfer in accordance with this
Section 6.1, the General Partner in its sole discretion may require the transferring Limited
Partner to execute and acknowledge an instrument of transfer in form and substance satisfactory to
the General Partner, and may require the transferee to make certain representations and warranties
to the Partnership and Partners and to accept, adopt and approve in writing all of the terms and
provisions of this Agreement. A transferee shall become a substituted Limited Partner and shall
succeed to the portion of the transferor’s Capital Account relating to the interest transferred
effective upon the satisfaction of all of the conditions for such Transfer contained in this
Section 6.1.

               (h) In the event of a Transfer or in the event of a distribution of assets of the Partnership
to any Partner, the Partnership, in the sole discretion of the General Partner, may, but shall not
be required to, file an election under Section 754 of the Code and in accordance with the
applicable U.S. Treasury regulations, to cause the basis of the Partnership’s assets to be
adjusted for federal income tax purposes as provided by Sections 734 or 743 of the Code.

A-18

 

               (i) The General Partner may, in its sole discretion, impose a charge on the transferor of
an interest in the Partnership in an amount equal to the sum of (i) the actual or estimated costs
to the Partnership of processing the Transfer of such interest, plus (ii) in connection with any
Transfer occurring prior to amortization in full of the Partnership’s Organizational Costs, a
ratable portion of the Partnership’s Organizational Costs which have not yet been fully amortized.
The amount of any such charges deducted by the Partnership, net of any actual costs and expenses of
processing the withdrawal, shall be allocated among and credited to the Capital Accounts of the
remaining Partners on the commencement of the Fiscal Period immediately following the effective
date of the Transfer in accordance with their respective Partnership Percentages at such time.

          6.2 Transfer of the Interest of the General Partner. The General Partner may not
Transfer its interest as a General Partner in the Partnership other than (i) pursuant to a
transaction not deemed to involve an assignment of its investment management obligations within
the meaning of the Investment Advisers Act of 1940, as amended, (ii) pursuant to any transaction
involving a Transfer of such interest to an Affiliate of the General Partner, or (iii) with the
approval of Limited Partners whose Partnership Percentages represent more than fifty percent (50%)
of the aggregate Partnership Percentages of all Limited Partners. By executing this Agreement,
each Limited Partner shall be deemed to have consented to any such Transfer permitted by the
preceding sentence. Any successor to the General Partner shall succeed to the portion of the
General Partner’s Capital Account relating to the interest transferred.

          6.3 Withdrawals.

               (a) Except as provided in this Section 6.3, a Limited Partner may not withdraw all or any
portion of its Capital Account prior to the Partnership’s dissolution.

               (b) Except as otherwise provided in this Agreement, Limited Partners will not be permitted to
withdraw any investment until the expiration of the second anniversary of the date such investment
was accepted into the Partnership. After the expiration of the two year lock-up, a Limited Partner
will be permitted to make a complete or partial withdrawal of its investment whenever the
Partnership disposes of a substantial investment position, or if no such disposition has been
made, a Limited Partner may be permitted to make a complete or partial withdrawal of its
investment if the General Partner consents, which consent may be given or withheld, and made
subject to such terms and conditions as may be imposed, in the sole discretion of the General
Partner.

               (c) In making a decision whether to consent to a withdrawal by a Limited Partner in the
absence of a disposition of a substantial investment position, the General Partner will consider
whether the withdrawal would impose any additional tax or regulatory requirements on the
Partnership, the General Partner or the other Limited Partners. In the event the General Partner
permits a Limited Partner to make a complete or partial withdrawal from the Partnership at a time
other than when the Partnership disposes of a substantial investment position, the General Partner
may impose such discount or “haircut” as the General Partner deems appropriate from the estimated
current fair market value of the amount being withdrawn by the Limited Partner.

A-19

 

               (d) The General Partner may voluntarily withdraw any portion of its respective Capital Account
at any time without giving notice to the Limited Partners.

               (e) Except as provided in Section 6.3(f) payment of at least eighty-five percent (85%) of the
amount due to a withdrawing Partner shall be made within thirty (30) days after the Withdrawal Date
(or such earlier date as the General Partner may agree with a Limited Partner), with the remainder
of the proceeds to be sent upon completion of the Partnership’s audit. Any amount so withheld shall
be paid to the withdrawing Limited Partner without interest. The General Partner may, in its sole
discretion, elect to pay withdrawals in cash or in securities or other assets.

               (f) The General Partner may, in its sole discretion, deduct from any withdrawal payments or
otherwise charge to the withdrawing Limited Partner a redemption charge reflecting (i) actual or
estimated costs to the Partnership of complying with and processing such withdrawal plus (ii) in
connection with any withdrawal occurring prior to amortization in full of the Partnership’s
Organizational Costs, a ratable portion of the Partnership’s Organizational Costs which have not
yet been fully amortized, plus (iii) the amount of any discount or “haircut” imposed by the General
Partner pursuant to Section 6.3(c).

               (g) The General Partner in its sole discretion may at any time, for any reason, or no reason
at all, require a Limited Partner to withdraw all or any portion of his Capital Account pursuant
to this Section 6.3, effective on any date designated by the General Partner in its sole
discretion. In addition, the General Partner may, in its sole discretion, without notice and
retroactively to the date appropriate to avoid the event described in (i), (ii) or (iii) below,
require a Limited Partner to withdraw all or any portion of its Capital Account in the event that
the General Partner has reason to believe that (i) if such Limited Partner is an Employee Benefit
Plan, such withdrawal is necessary in order to avoid having the assets of the Partnership being
treated as “plan assets” within the meaning of the Plan Asset Regulations; (ii) such Limited
Partner made a misrepresentation to the General Partner in connection with its purchase of an
interest in the Partnership; or (iii) such Limited Partner’s ownership of an Interest would result
in the violation of any applicable law or regulation by the Partnership or a Partner. Such Limited
Partner shall be treated as withdrawn from the Partnership or as having made a partial withdrawal
from its Capital Account, as the case may be, without further action on the part of the Limited
Partner. The amount due to any such Partner required to withdraw from the Partnership shall be
equal to the value of such Partner’s Capital Account as of the Withdrawal Date of the withdrawal,
net of any charges imposed pursuant to Section 6.3(f) hereof.

               (h) The right of any Partner to make a withdrawal from his, her, or its Capital Account
pursuant to the provisions of this Section 6.3 is subject to the provision by the General Partner
for all Partnership liabilities and for reserves for contingencies provided for in Section 5.5
herein.

               (i) The right of any Partner to withdraw from his, her, or its Capital Account pursuant to
this Section 6.3 may be suspended or restricted:

                    (i) during any period when any securities exchange or
organized interdealer market on which a significant portion of the Partnership’s portfolio

A-20

 

securities is regularly traded or quoted is closed (otherwise than for holidays) or trading
thereon has been restricted or suspended;

                    (ii) whenever the General Partner in its sole discretion
determines that disposal of any assets of the Partnership or other transactions involving the sale,
transfer or delivery of funds, Investments, or other assets in the ordinary course of the
Partnership’s business are not reasonably practicable without being detrimental to the interests of
the withdrawing or remaining Partners;

                    (iii) when, for any reason, it is not reasonably practicable to make an accurate and timely
determination of the net value of the Partnership’s assets; or

                    (iv) if any event has occurred which calls for termination of the Partnership.

               (j) The General Partner will promptly notify each Limited Partner who has submitted a
withdrawal request and to whom payment in full of the amount being withdrawn has not yet been
remitted of any suspension of withdrawal or distribution rights pursuant to Section 6.3(i). The
General Partner in its sole discretion may allow any such Partners to rescind their withdrawal
request to the extent of any portion thereof for which withdrawal proceeds have not yet been
remitted. The General Partner in its sole discretion may complete any withdrawals or distributions
as of a date after the cause of any such suspension has ceased to exist and may specify such date
as the Withdrawal Date thereof for all purposes of this Section 6.3.

               (k) A withdrawing Partner shall not share in the income, gains and losses of the Partnership
or have any other rights as a Partner after the Withdrawal Date of the withdrawal except as
provided in Section 5.5(c) herein.

               (l) Upon the death or incapacity of any Limited Partner, the General Partner may in its sole
discretion completely withdraw the Limited Partner from the Partnership, or may allow the
Partnership Interest to be transferred to such Limited Partner’s estate.

          6.4 Withholding or Other Tax Obligations. If the Partnership incurs a withholding tax
or other tax obligation with respect to the share of Partnership income allocable to any Partner,
then the General Partner, without limitation of any other rights of the Partnership or the General
Partner, shall cause the amount of such obligation to be charged against the Capital Account of
such Partner as of the close of the Fiscal Period during which the Partnership pays such
obligation. If the amount of such taxes is greater than such Capital Account balance, then such
Partner and any successor to such Partner’s interest shall pay to the Partnership as a Capital
Contribution, within 5 business days after notification and demand by the General Partner, the
amount of such excess. The General Partner shall not be obligated to apply for or obtain a
reduction of or exemption from withholding tax on behalf of any Partner that may be eligible for
such reduction or exemption.

A-21

 

ARTICLE VII

Management

          7.1 Rights, Duties and Powers of the General Partner.

               (a) Subject to the terms and conditions of this Agreement, the General Partner shall have
complete and exclusive responsibility (i) for all investment and investment management decisions
to be undertaken on behalf of the Partnership and (ii) for managing and administering the affairs
of the Partnership and shall have the power and authority to do all things necessary or proper to
carry out its duties hereunder.

               (b) Without limiting the generality of the General Partner’s duties and obligations
hereunder, the General Partner in its sole discretion shall have full power and authority:

                    (i) to purchase, sell, exchange, trade and otherwise deal in and
with Investments and other property of the Partnership;

                    (ii) to make all decisions relating to the manner, method and timing of investment and
trading transactions, to select brokers, dealers or other financial intermediaries for the
execution, clearance and settlement of any transactions on such terms as the General Partner
considers appropriate, and to grant limited discretionary authorization to such persons with
respect to price, time and other terms of investment and trading transactions;

                    (iii) to trade on margin, to borrow from banks or other financial institutions, and to pledge
Partnership assets as collateral therefor;

                    (iv) to arrange for the custody of portfolio securities and other assets acquired or held on
behalf of the Partnership, to direct custodians to deliver funds or securities for the purpose of
effecting transactions, and to instruct custodians to exercise or abstain from exercising any right
or privilege attaching to assets;

                    (v) to solicit investments in the Partnership;

                    (vi) to receive from Partners contributions to the capital of the Partnership;

                    (vii) to conduct meetings of the Partners at the Partnership’s principal office or elsewhere;

                    (viii) to open, maintain and close bank accounts and custodial accounts for the Partnership
and draw checks and other orders for the payment of money;

                    (ix) to disburse payments to Partners in connection with withdrawals from the Partnership;

                    (x) to disburse payments as provided for in this Agreement;

A-22 

 

                    (xi) to pay all Organizational Costs and Offering Costs;

                    (xii) to engage such attorneys, accountants and other professional advisers and consultants as
the General Partner may deem necessary or advisable for the affairs of the Partnership;

                    (xiii) to furnish Partners with the reports described in Section 5.2;

                    (xiv) to furnish Partners with copies of all amendments to this Agreement;

                    (xv) to issue to any Partner, in such form and on such terms as the General Partner may
consider appropriate, an instrument certifying that such Partner is the owner of an interest in
the Partnership;

                    (xvi) to prepare and file, on behalf of the Partnership, any required tax returns and all
other documents relating to the Partnership and to make any elections (required or otherwise) in
connection therewith;

                    (xvii) to commence or defend litigation that pertains to the Partnership or any Partnership
assets;

                    (xviii) to provide office space, office and executive staff and office supplies and equipment
for the Partnership’s principal office;

                    (xix) to cause the Partnership, if and to the extent the General Partner deems such insurance
advisable, to purchase or bear the cost of (A) any insurance covering the potential liabilities of
the Partnership, the General Partner and their officers, members, employees and agents and (B)
fidelity or other insurance relating to the performance by the General Partner of its duties to the
Partnership;

                    (xx) in the normal course of the Partnership’s business and for any Partnership purpose,
including without limitation payment of the Partnership’s operating expenses and the Incentive
Allocation, to cause the Partnership to borrow money and make, issue, accept, endorse and execute
promissory notes, drafts, bills of exchange, guarantees and other instruments and evidences of
indebtedness, and secure the payment thereof by mortgage, pledge or assignment of or security
interest in all or any part of the Investments and other property then owned or thereafter
acquired by the Partnership;

                    (xxi) generally to provide all other executive and administrative undertakings for and on
behalf of the Partnership; and

                    (xxii) subject to the other terms and provisions of this Agreement, to execute, deliver and
perform such contracts, agreements and other undertakings, and to engage in all activities and
transactions, as it may deem necessary or advisable for, or as may be incidental to, the conduct
of the business contemplated by Section 2.5, including, without in any manner limiting the
generality of the foregoing, contracts, agreements, undertakings and

A-23 

 

transactions with any Partner or with any other person, firm or corporation having any
business, financial or other relationship with any Partner or Partners.

               (c) The General Partner shall be the tax matters partner for purposes of section 6231(a)(7) of
the Code and the corresponding provisions of any state or local statute. As such, the General
Partner shall have the exclusive authority and discretion to take such actions as a tax matters
partner is authorized to take under the Code, including, but not limited to: (i) make any elections
required or permitted to be made by the Partnership under any provision of the Code or any other
revenue law; (ii) file a petition as contemplated in section 6226(a) or 6228 of the Code; (iii)
file any request contemplated in section 6227(b) of the Code; and (iv) enter into an agreement
extending the statute of limitations as contemplated by section 6229(b)(1)(B) of the Code. The
Partnership shall reimburse the General Partner for any and all out-of-pocket costs and expenses
(including attorneys’ and other professional fees and expenses) incurred by it in its capacity as
tax matters partner. Each Partner who elects to participate in Partnership administrative tax
proceedings shall be responsible for its own expenses incurred in connection with such
participation. In addition, the cost of any adjustments to a Partner and the cost of any resulting
audits or adjustments of a Partner’s tax return will be borne solely by the affected Partner. The
tax matters partner shall be entitled to rely on the advice of legal counsel as to the nature and
scope of its responsibilities and authority as tax matters partner and positions taken by the
Partnership on its tax return and in audit proceedings, and any act or omission of the tax matters
partner (i) in reliance upon the advice of legal counsel, accounting professionals or other
professionals or experts or (ii) which did not constitute gross negligence or willful misconduct on
the part of the tax matters partner, shall not in any event subject the tax matters partner to
liability to the Partnership or any Limited Partner.

          7.2 Expenses.

               (a) The Partnership will pay to the General Partner or an affiliate designated by the General
Partner no more than 1% per annum of the total capital of the Partnership at the beginning of each
year to cover overhead expenses.

               (b) In addition to the 1% overhead payment to the General Partner, the Partnership will also
be responsible for and will pay for expenses related directly to maximizing the Partnership’s
investments. These expenses include (but are not limited to): legal expenses (which are likely to
be substantial); accounting expenses; organizational expenses; investment expenses such as
commissions, research fees; travel and due diligence expenses related to the analysis, purchase or
sale of investments, whether or not a particular investment is consummated; interest on margin
accounts and other indebtedness; custodial fees; consulting fees; and any other expenses related
to the purchase, sale or transmittal of Partnership assets, including nominee fees and other
expenses incurred in connection with the General Partner’s attempt to influence the policies of
companies in which the Partnership invests.

          7.3 Rights of Limited Partners. The Limited Partners shall not participate in the
management, control, or operation of the Partnership’s business, and shall have no right or
authority to act for the Partnership or to vote on matters other than the matters set forth in
this Agreement or as required by applicable law. Except as otherwise required by law, a Limited
Partner shall have no liability for the debts or obligations of the Partnership.

A-24 

 

          7.4 Other Activities of Partners.

               (a) Neither the General Partner, any of its Affiliates, nor any of its employees shall be
required to devote its full time to the affairs of the Partnership, but shall devote such of its
time to the business and affairs of the Partnership as it shall determine, in its discretion, to
be necessary to conduct the affairs of the Partnership for the benefit of the Partnership and the
Partners.

               (b) Each Partner agrees that any other Partner and any partner, director, officer,
shareholder, Affiliate, member, or employee of any other Partner, may engage in or possess an
interest in other business ventures or commercial dealings of every kind and description,
independently or with others, including, but not limited to, management of other accounts,
investment in, or financing, acquisition and disposition of, securities, investment and management
counseling, brokerage services, serving as directors, officers, advisers or agents of other
companies, partners of any partnership, or trustee of any trust, or entering into any other
commercial arrangements, whether or not any such activities may conflict with any interest of the
parties with respect to the Partnership. Without in any way limiting the foregoing, each Partner
hereby acknowledges that (i) none of the Limited Partners or their respective partners, directors,
officers, shareholders, Affiliates or employees shall have any obligation or responsibility to
disclose or refer any of the investment or other opportunities obtained through activities
contemplated by this subsection (b) to the General Partner or the Limited Partners, but may refer
the same to any other party or keep such opportunities for their own benefit; and (ii) the Limited
Partners and the General Partner and their respective partners, directors, officers, shareholders,
Affiliates and employees are hereby authorized to engage in activities contemplated by this
subsection (b) with, or to purchase, sell or otherwise deal or invest in Securities issued by,
companies in which the General Partner might from time to time invest or be able to invest or
otherwise have any interest on behalf of the Partnership, without the consent or approval of the
Partnership or any other Partner.

               (c) When the General Partner in its sole discretion determines that it would be appropriate
for the Partnership and any Managed Account to participate in an investment opportunity, the
General Partner will seek to execute orders on a basis which is fair, reasonable and equitable to
the Partnership and each such Managed Account. In such situations, the General Partner may place
orders for the Partnership and each such Managed Account simultaneously and if all such orders are
not filled at the same price, the General Partner may cause the Partnership and each such Managed
Account to pay or receive the average of the prices at which the orders were filled for the
Partnership and each such Managed Account. If all such orders cannot be fully executed under
prevailing market conditions, the General Partner in its sole discretion may allocate the
Investments or other assets traded among the Partnership and any Managed Account on a basis which
it considers equitable, taking into account the size of the order placed for the Partnership and
each such Managed Account as well as any other factors which the General Partner in its sole
discretion deems relevant.

          7.5 Duty of Care; Indemnification.

               (a) The General Partner (which terms shall include for this purpose each member, director,
manager, officer, employee or agent of, or any person who controls, the

A-25 

 

General Partner, and their respective executors, heirs, assigns, successors or other legal
representatives) shall not be liable to the Partnership or to any of its Limited Partners for any
loss or damage occasioned by any acts or omissions in the performance of its services under this
Agreement, unless such loss or damage is due to the gross negligence, willful misconduct, or bad
faith of such General Partner, or as otherwise required by law.

               (b) The General Partner (which terms shall include each member, director, manager, officer,
employee or agent of, or any person who controls, the General Partner, and their respective
executors, heirs, assigns, successors or other legal representatives) shall be indemnified to the
fullest extent permitted by law by the Partnership (but not the Partners individually) against any
cost, expense (including attorneys’ fees and expenses), judgment, or liability incurred by or
imposed upon it in connection with any action, suit or proceeding (including any proceeding before
any judicial, administrative or legislative body or agency) to which it may be made a party or
otherwise be involved or with which it shall be threatened by reason of being or having been
General Partner; provided, however, that no General Partner shall be so indemnified to the extent
such cost, expense, judgment or liability shall have been finally determined in a decision on the
merits in any such action, suit or proceeding to have been incurred or suffered by the General
Partner by reason of gross negligence, willful misconduct or bad faith of the General Partner. The
right to indemnification granted by this Section 7.6 shall be in addition to any rights to which
the General Partner may otherwise be entitled and shall inure to the benefit of the successors or
assigns of such General Partner. The Partnership shall pay the expenses incurred by the General
Partner in defending a civil or criminal action, suit or proceeding in advance of the final
disposition of such action, suit or proceeding, upon receipt of an undertaking by such General
Partner to repay such payment if there shall be an adjudication or determination that it is not
entitled to indemnification as provided herein. It shall be a defense that (i) in any suit brought
by the General Partner to enforce a right to indemnification hereunder, and (ii) in any suit in the
name of the Partnership to recover expenses advanced pursuant to the terms of an undertaking, the
Partnership shall be entitled to recover such expenses upon a final adjudication that, the General
Partner or other person claiming a right to indemnification hereunder has not met the applicable
standard of conduct set forth in Section 7.6(a). No General Partner may satisfy any right of
indemnity or reimbursement granted in this Section 7.6 or to which it may be otherwise entitled
except out of the assets of the Partnership, and no Partner shall be personally liable with respect
to any such claim for indemnity or reimbursement. The General Partner in its sole discretion may
obtain appropriate insurance on behalf of the Partnership to secure the Partnership’s obligations
hereunder.

          7.6 Exculpation.

               (a) Neither the General Partner nor any Affiliate of the General Partner shall be liable to
any Partner or to the Partnership for any mistakes of judgment or for any acts or omissions
arising out of or in connection with the Partnership, any investment made or held by the
Partnership, or this Agreement unless such mistake, action or omission was performed or omitted
fraudulently or in bad faith or constituted willful misconduct or gross negligence, or for losses
due to such mistakes of judgment or such actions or omissions or to the negligence, dishonesty,
fraud, or bad faith of any broker or agent of the Partnership, provided that such broker or agent
was selected, engaged or retained for the Partnership by the General

A-26 

 

Partner or any Affiliate of the General Partner in accordance with the standard of care set
forth above. The General Partner and any Affiliate may consult with counsel and accountants in
respect of the Partnership’s affairs and will be fully protected and justified in any action that
is taken or omitted in accordance with the advice or opinion of such counsel and/or accountants,
provided that they were selected with reasonable care.

               (b) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 7.6
shall not be construed so as to provide for the exculpation of any person for any liability
(including liability under Federal securities laws which, under certain circumstances, impose
liability even on persons that act in good faith) to the extent (but only to the extent) that such
exculpation would be in violation of applicable law, but shall be construed so as to effectuate
the provisions of this Section 7.6 to the fullest extent permitted by law.

ARTICLE VIII

Dissolution and Liquidation

          8.1 Dissolution of Partnership.

               (a) The Partnership shall be dissolved upon the first to occur of the following dates:

                    (i) the decision of the General Partner to dissolve the
Partnership and the giving of written notice of such decision by the General Partner to all
Limited Partners; or

                    (ii) the occurrence of any event of withdrawal, under Section 17-402 of the Act, unless
within 90 days thereafter, all the remaining Partners agree in writing to continue the business of
the Partnership and to the appointment of one or more general partners.

                    (iii) the date on which (A) the General Partner is declared bankrupt by a court with
appropriate jurisdiction, (B) the General Partner files a petition commencing a voluntary case
under any bankruptcy law, (C) the General Partner makes an assignment for the benefit of
creditors, (D) a receiver for the property or affairs of the General Partner is appointed, (E) the
General Partner is dissolved and a winding up thereof commenced, unless (x) at the time there is
at least one other General Partner and that General Partner agrees to continue the Partnership, or
(y) within ninety (90) days after any such event all of the remaining Partners shall agree in
writing to continue the Partnership and shall elect one or more replacement general partners.

               (b) Upon the occurrence of an event of withdrawal under Section 17-402 of the Act with
respect to the General Partner, all remaining Partners are authorized to carry on the business of
the Partnership as permitted by Section 17-801(3) of the Act and to the extent permitted by this
Agreement. Except as provided in Section 8.1(a) or in the Act, the death, mental illness,
dissolution, termination, liquidation, bankruptcy, reorganization, merger, sale of substantially
all of the stock or assets of or other change in the ownership or nature of a Partner, the
admission to the Partnership of a new General or Limited Partner, the withdrawal of a Partner

A-27 

 

from the Partnership, or the transfer by a Partner of his interest in the Partnership to a
third party shall not cause the Partnership to dissolve.

          8.2 Liquidation of Assets.

               (a) Upon dissolution of the Partnership, the General Partner shall promptly liquidate the
business and administrative affairs of the Partnership, or shall appoint a liquidator to do so
however, if the General Partner is unable to liquidate the Partnership, or appoint a liquidator, a
Person appointed by the holders of more than 50% of the aggregate Partnership Percentages of all
Limited Partners shall liquidate the business and administrative affairs of the Partnership. Net
Profit and Net Loss during the Fiscal Periods, which include the period of liquidation, shall be
allocated pursuant to Article IV. The proceeds from liquidation shall be divided in the following
manner.

                    (i) the debts, liabilities and obligations of the Partnership, other than debts to the
Partners as Partners, and the expenses of liquidation (including legal and accounting expenses
incurred in connection therewith), up to and including the date that distribution of the
Partnership’s assets to the Partners has been completed, shall first be paid;

                    (ii) such debts as are owing to the Partners as Partners shall next be paid; and

                    (iii) the Partners shall next be paid liquidating distributions (in cash or in securities or
other assets, whether or not readily marketable) pro rata in accordance with, and up to the
positive balances of their respective Capital Accounts, as adjusted pursuant to Article IV to
reflect allocations for the Fiscal Period ending on the date of the distributions under this
Section 8.2(a)(iii).

               (b) Anything in this Section 8.2 to the contrary notwithstanding, the General Partner or
liquidator in its sole discretion may distribute ratably in-kind rather than in cash, upon
dissolution, any assets of the Partnership; provided, however, that if any in-kind distribution is
to be made, (i) the assets distributed in kind shall be valued pursuant to Section 5.4 as of the
actual date of their distribution, and charged as so valued and distributed against amounts to be
paid under Section 8.2(a) above and (ii) any gain or loss (as computed for book purposes)
attributable to property distributed in-kind shall be included in the Net Profit or Net Loss for
the Fiscal Period ending on the date of such distribution.

ARTICLE IX

Miscellaneous

          9.1 Amendments.

               (a) The Partnership Agreement may be amended by the General Partner in its sole discretion
without notification to, or the consent of the Limited Partners, at any time and without any
limitation, so long as such amendment is not materially adverse to the Limited Partners’
interests.

A-28

 

               (b) Notwithstanding subsection (a), any amendment which would (i) increase the obligation of
any Partner to make any Capital Contribution to the Partnership, (ii) reduce the Capital Account of
any Partner other than in accordance with Section 3.4(d), or (iii) alter any Partner’s rights with
respect to allocation of Net Profit or Net Loss or with respect to distributions and withdrawals
may only be made if the prior written consent of each Partner adversely affected thereby is
obtained.

               (c) The General Partner in its sole discretion may at any time without the consent of the
other Partners (i) add to the representations, duties or obligations of the General Partner or
surrender any right or power granted to the General Partner under this Agreement, for the benefit
of the Limited Partners; (ii) cure any ambiguity or correct or supplement any conflicting
provisions of this Agreement; (iii) make any changes required by any governmental body or agency
which is deemed to be for the benefit or protection of the Limited Partners; provided, that no
such amendment referred to in clause (ii) or (iii) may be made unless it is for the benefit of, or
not adverse to, the interests of the Limited Partners, such change does not affect the right of
the General Partner to manage and control the Partnership’s business, does not affect the
allocation of Net Profits or Net Losses among the Partners and does not affect the limited
liability of the Limited Partners; (iv) amend this Agreement to reflect a change in the identity
of the General Partner following a transfer of the General Partner’s partnership interest in
accordance with the terms of this Agreement; (v) amend this Agreement (other than with respect to
the matters set forth in Section 9.1(b)) to effect compliance with any applicable laws or
regulations (including the Investment Advisers Act of 1940, as amended, in the event that the
General Partner in its sole discretion determines to become a registered investment adviser in the
future); and (vi) restate this Agreement together with any amendments hereto which have been duly
adopted in accordance herewith to incorporate such amendments in a single, integrated document.

          9.2 Special Power of Attorney.

               (a) Each Partner hereby irrevocably makes, constitutes and appoints the General Partner (and
each of their successors and permitted assigns), with full power of substitution, the true and
lawful representative and attorney-in-fact of, and in the name, place and stead of, such Partner
with the power from time to time to make, execute, sign, acknowledge, swear to, verify, deliver,
record, file and/or publish:

                    (i) an amendment to this Agreement which complies with the
provisions of this Agreement (including the provisions of Section 9.1);

                    (ii) the Certificate and any amendment thereof required because this Agreement is amended;
and

                    (iii) all such other instruments, documents and certificates which, in the opinion of legal
counsel to the Partnership, may from time to time be required by the laws of the United States of
America, the States of Delaware, New York, or any other jurisdiction in which the Partnership
shall determine to do business, or any political subdivision or agency thereof, or which such
legal counsel may deem necessary or appropriate to effectuate,

A-29

 

implement and continue the valid and subsisting existence and business of the Partnership as a
limited partnership or to effect the dissolution or termination of the Partnership.

               (b) Each Limited Partner is aware that the terms of this Agreement permit certain amendments
to this Agreement to be effected and certain other actions to be taken or omitted by or with
respect to the Partnership without his consent. If an amendment of the Certificate or this
Agreement or any action by or with respect to the Partnership is taken by the General Partner in
the manner contemplated by this Agreement, each Limited Partner agrees that, notwithstanding any
objection which such Limited Partner may assert with respect to such amendment or action, the
General Partner in its sole discretion is authorized and empowered, with full power of
substitution, to exercise the authority granted above in any manner which may be necessary or
appropriate to permit such amendment to be made or action lawfully taken or omitted. Each Partner
is fully aware that each other Partner will rely on the effectiveness of this special
power-of-attorney with a view to the orderly administration of the affairs of the Partnership. This
power-of-attorney is a special power-of-attorney and is coupled with an interest in favor of the
General Partner and as such:

                    (i) shall be irrevocable and continue in full force and effect
notwithstanding the subsequent death or incapacity of any party granting this power-of-attorney,
regardless of whether the Partnership or the General Partner shall have had notice thereof; and

                    (ii) shall survive the delivery of an assignment by a Limited Partner of the whole or any
portion of his interest in the Partnership, except that where the assignee thereof has been
approved by the General Partner for admission to the Partnership as a substituted Limited Partner,
this power-of-attorney given by the assignor shall survive the delivery of such assignment for the
sole purpose of enabling the General Partner to execute, acknowledge and file any instrument
necessary to effect such substitution.

          9.3 Notices. Notices which may or are required to be given under this Agreement by
any party to another shall be given by hand delivery, transmitted by telecopier facsimile or by
registered or certified mail, return receipt requested, and shall be addressed to the respective
parties hereto at their addresses as set forth on the register of Partners maintained by the
General Partner or to such other addresses or facsimile numbers as may be designated by any party
hereto by notice addressed to (i) the General Partner, in the case of notice given by any Limited
Partner, and (ii) each of the Limited Partners, in the case of notice given by the General
Partner. Notices shall be deemed to have been given when delivered by hand or transmitted by
telecopier facsimile or on the date indicated as the date of receipt on the return receipt.

          9.4 Agreement Binding Upon Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors, but the
rights and obligations of the Partners hereunder shall not be assignable, transferable, or
delegable except as provided in Sections 6.1 and 6.2, and any attempted assignment, transfer or
delegation thereof which is not made pursuant to the terms of such sections shall be void.

          9.5 Governing Law. This Agreement, and the rights of the Partners hereunder, shall be
governed by and construed in accordance with the laws of the State of Delaware, without regard to
the conflict of laws rule thereof. The parties hereby consent to

A-30

 

exclusive jurisdiction and venue for any action arising out of this Agreement in the Delaware
Court of Chancery. Each Partner consents to service of process in any action or proceeding
involving the Partnership by the mailing thereof by registered or certified mail, postage prepaid,
to such Partner’s mailing address set forth in the register of Partners maintained by the General
Partner.

          9.6 Not for Benefit of Creditors. The provisions of this Agreement are intended only
for the regulation of relations among Partners and between Partners and former or prospective
Partners and the Partnership. This Agreement is not intended for the benefit of non-Partner
creditors and no rights are granted to non-Partner creditors under this Agreement.

          9.7 Consents. Any and all consents, agreements or approvals provided for or permitted
by this Agreement shall be in writing and a signed copy thereof shall be filed and kept with the
books of the Partnership.

          9.8 Miscellaneous.

               (a) The captions and titles preceding the text of each Section hereof shall be disregarded in
the construction of this Agreement.

               (b) This Agreement may be executed in counterparts, each of which shall be deemed to be an
original hereof.

A-31

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	GENERAL PARTNER:

STILWELL VALUE LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Joseph Stilwell
 	 
	 	 	Managing Member 	 
	 	 	 	 

A-32

 

SIGNATURE PAGE

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

OF

STILWELL VALUE PARTNERS I, L.P.

Dated as of October 1, 2008

American Physicians Assurance Corporation 

Name of Limited Partner (typed or printed)

/s/ R. Kevin Clinton 

Signature of, or on behalf of, Limited Partner

President and CEO 

Title

1301 N Hagadorn Road 

East Lansing, MI 48823 

Principal Place of Business Address for Limited Partner

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]