Document:

Exhibit

Exhibit 10.16
NUANCE COMMUNICATIONS, INC.
CHANGE OF CONTROL AND SEVERANCE AGREEMENT
This Change of Control and Severance Agreement (the “Agreement”) is made and entered into by and between Daniel Tempesta (“Executive”) and Nuance Communications, Inc., a Delaware corporation (the “Company”), effective as of the later date on the signature page of this Agreement (the “Effective Date”).
RECITALS
1.    The Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat, or occurrence of a Change of Control.
2.    The Committee believes that it is imperative to provide Executive with severance benefits upon Executive’s termination of employment under certain circumstances to provide Executive with enhanced financial security, incentive and encouragement to remain with the Company.
3.    Certain capitalized terms used in the Agreement are defined in Section 7 below.
AGREEMENT
NOW, THEREFORE, in consideration of Executive’s continued employment and the mutual covenants contained herein, the parties hereto agree as follows:
1.Term of Agreement.  This Agreement will have an initial term commencing on the Effective Date and ending September 30, 2021 (the “Initial Term”).  At the end of the Initial Term, this Agreement will renew automatically for additional three (3) year terms (each an “Additional Term”), unless either party provides the other party with written notice of non-renewal at least sixty (60) days prior to the date of automatic renewal. Notwithstanding the foregoing provisions of this paragraph, if a Change of Control occurs when there are fewer than twelve (12) months remaining during the Initial Term or an Additional Term, the term of this Agreement will extend automatically through the date that is twelve (12) months following the effective date of the Change of Control.  If Executive becomes entitled to benefits under Section 3 during the term of this Agreement, the Agreement will not terminate until all of the obligations of the parties hereto with respect to this Agreement have been satisfied.  For avoidance of doubt, Executive will not be entitled to severance benefits under Section 3 due solely to notice of non-renewal or termination of the Agreement due to non-renewal.  
2.    At-Will Employment.  The Company and Executive acknowledge that Executive’s employment is and will continue to be at-will, as defined under applicable law, except as otherwise 

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specifically provided under the terms of a written employment agreement between the Company and Executive.  
3.    Severance Benefits.
(a)    Termination Other than During Change of Control Period. If Executive’s employment with the Company and its subsidiaries is terminated (i) by the Company other than for Cause and for a reason other than Death or Disability, (ii) as a result of Executive’s resignation for Good Reason and such termination occurs outside the Change of Control Period, then, subject to Section 4 and the other provisions of this Agreement, Executive will receive from the Company:
(i)    Base Salary Severance.  A lump sum severance payment equal to one hundred percent (100%) of Executive’s annual base salary as in effect immediately prior to the termination date.
(ii)    Target Bonus Severance.  A lump sum severance payment equal to a prorated percentage of Executive’s target bonus as in effect for the fiscal year that includes the termination date.  The prorated percentage will be determined by dividing the number of days during the fiscal year for which Executive remained an employee of the Company, by 365.  If Executive’s target bonus for the fiscal year including the termination date has not been set as of the termination date, Executive instead will receive a prorated percentage of the target bonus for the immediately preceding fiscal year. 
(iii)    Equity Awards.  
(1)    Termination on or Before December 31, 2019.  Executive’s outstanding and unvested time-vesting equity awards covering shares of the Company’s common stock that were scheduled to vest on or before December 31, 2019 will become vested in full as of the date of termination, and Executive’s outstanding and unvested equity awards covering shares of the Company’s common stock the vesting of which was subject to performance goals to be measured at any time on or before December 31, 2019 will become vested in full as of the date of termination as if the performance goals had been achieved at 100% of targeted performance.  
(2)    Termination on or after January 1, 2020.  Vesting of a prorated percentage of each (if any) of Executive’s outstanding and unvested time-vesting equity awards (excluding any awards vesting based on performance) covering shares of the Company’s common stock that are scheduled to vest in the year that includes the termination date.  The prorated percentage will be determined by on a grant-by-grant basis by dividing (A) the number of days during the fiscal year for which Executive remained an employee of the Company, by (B) the number of days from the first day of the fiscal year through the scheduled vesting date during the year of termination.  The number of shares vesting (if any) will be rounded to the nearest whole share.  As an example only, if Executive remains an employee for the first 30 days of the year that includes the termination date, and 100 shares of a time-based RSU were scheduled to vest on the 90th day of that fiscal year, Executive would receive vesting of thirty-three of the shares that were scheduled to vest on the 90th day.  For the avoidance of doubt, the vesting provided in this Section 3(a)(iii)(2) applies only to the portion of an award that is scheduled to vest in the year of termination.  No vesting will be provided under 

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this Section 3(a)(iii)(2) with respect to any shares that are scheduled to vest after the year of Executive’s termination.
(iv)    Continued Employee Benefits.  Continuation coverage under the terms of the Company medical benefit plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for Executive and/or Executive’s eligible dependents, subject to Executive timely electing COBRA coverage.  For one year from the date of Executive’s termination the Company will pay directly on Executive’s behalf the COBRA premiums (at the coverage levels in effect immediately prior to Executive’s termination).  Notwithstanding the preceding sentence, if the Company determines in its sole discretion that it cannot provide the foregoing benefit without potentially violating, or being subject to an excise tax under, applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a taxable lump sum cash payment in an amount equal to the product of (x) twelve (12), multiplied by (y) the monthly COBRA premium that Executive otherwise would be required to pay to continue the group health coverage for Executive and Executive’s eligible dependents, as applicable, as in effect on the date of Executive’s termination of employment (which amount will be based on the premium for the first month of COBRA coverage), which payment will be made regardless of whether Executive elects COBRA continuation coverage.  For the avoidance of doubt, the taxable payment in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings.
(b)    Termination Following a Change of Control.  If during the Change of Control Period (i) Executive’s employment with the Company and its subsidiaries is terminated by the Company other than for Cause and for a reason other than death or Disability or (ii) Executive resigns for Good Reason, then, subject to Section 4 and the other provisions of this Agreement, Executive will receive from the Company:
(i)    Severance.  A lump sum severance payment equal to one hundred percent (100%) of Executive’s annual base salary as in effect immediately prior to the termination date (or, if greater, as in effect immediately prior to the Change of Control).
(ii)    Target Bonus.  A lump sum severance payment equal to one hundred percent (100%) of the greater of (1) Executive’s target bonus for the year in which Executive’s termination occurs, or (2) Executive’s target bonus in effect immediately prior to the Change of Control. 
(iii)    Continued Employee Benefits.  Continuation coverage under the terms of the Company medical benefit plan pursuant to COBRA for Executive and/or Executive’s eligible dependents, subject to Executive timely electing COBRA coverage.  For one year from the date of Executive’s termination the Company will pay directly on Executive’s behalf the COBRA premiums (at the coverage levels in effect immediately prior to Executive’s termination).  Notwithstanding the preceding sentence, if the Company determines in its sole discretion that it cannot provide the foregoing benefit without potentially violating, or being subject to an excise tax under, applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a taxable lump sum cash payment in an amount equal to 

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the product of (x) twelve (12), multiplied by (y) the monthly COBRA premium that Executive otherwise would be required to pay to continue the group health coverage for Executive and Executive’s eligible dependents, as applicable, as in effect on the date of Executive’s termination of employment (which amount will be based on the premium for the first month of COBRA coverage), which payment will be made regardless of whether Executive elects COBRA continuation coverage.  For the avoidance of doubt, the taxable payment in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings.
(iv)    Vesting of Time-Based Equity Awards.  One hundred percent (100%) of Executive’s outstanding and unvested time-vesting equity awards (excluding any awards vesting based on performance) covering shares of the Company’s common stock will become vested in full.
(c)    Vesting of Performance-Based Equity Awards.  
(i)    Upon a Change of Control, a number of Executive’s then-outstanding performance-based restricted stock units granted under the Company’s 2000 Stock Plan or any successor thereto (the “Plan”) that are subject to performance goals for the fiscal year in which the Change of Control occurs will become eligible for time-based vesting as if the performance goals had been achieved at 100% of targeted performance (the “Eligible Shares”).  Following the Change of Control, the original time-based vesting schedule for the Eligible Shares will cease to apply and the Eligible Shares will instead vest on the last day of the performance period in which the Change of Control occurs, subject to Executive’s remaining a Service Provider (as defined in the Plan) through such date, or, if earlier, upon Executive’s termination by the Company or its successor other than for Cause or upon Executive’s resignation for Good Reason.  Upon a Change of Control, Executive’s then-outstanding performance-based restricted stock units granted under the Plan that are subject to performance goals for fiscal years after the fiscal year in which the Change of Control occurs will remain subject to the terms of the Plan and the applicable award agreement except that, if during the Change of Control Period, Executive’s employment is terminated by the Company or its successor other than for Cause or by Executive for Good Reason, 50% of the performance-based restricted stock units that would have vested at 100% of targeted performance will vest.  
(ii)    Upon a Change of Control, Executive’s then-outstanding performance-based restricted stock units granted under the Plan (or any successor thereto) that are subject to relative total shareholder return performance goals will become eligible for time-based vesting based on the number of shares that would vest based on actual performance determined as of the Change of Control (the “Eligible TSR Shares”).  Following the Change of Control, the Eligible TSR Shares shall vest on the last day of the performance period, subject to Executive’s remaining a Service Provider (as defined in the Plan) through such date, or, if earlier, upon Executive’s termination by the Company or its successor other than for Cause or upon Executive’s resignation for Good Reason. 
(iii)    Except as provided in this Section 3(c), all performance-based restricted stock units described in this Section 3(c) remain subject to the terms of the Plan and the applicable award agreement.

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(d)    Voluntary Resignation; Termination for Cause. If Executive’s employment with the Company and its subsidiaries terminates in a voluntary resignation (other than for Good Reason during the Change of Control Period), or if the Executive is terminated for Cause, then Executive shall not be entitled to receive severance or other benefits except as otherwise provided by applicable law or those (if any) as may be available under the Company’s severance and benefit plans and policies in effect at the time of such termination.  
(e)    Termination for Death or Disability.   If Executive’s employment with the Company and its subsidiaries terminates on account of Executive’s death or absence from work due to a disability for a period in excess of ninety (90) days in any twelve-month period that qualifies for benefits under the Company’s long-term disability program (“Disability”), Executive will receive from the Company: 
(i)    Continuation coverage under the terms of the Company medical benefit plan pursuant to COBRA for Executive and/or Executive’s eligible dependents, subject to Executive or his dependents timely electing COBRA coverage.  For one year from the date of Executive’s termination the Company will pay directly on Executive’s behalf the COBRA premiums (at the coverage levels in effect immediately prior to Executive’s termination).  Notwithstanding the preceding sentence, if the Company determines in its sole discretion that it cannot provide the foregoing benefit without potentially violating, or being subject to an excise tax under, applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a taxable lump sum cash payment in an amount equal to the product of (x) twelve (12), multiplied by (y) the monthly COBRA premium that Executive otherwise would be required to pay to continue the group health coverage for Executive and Executive’s eligible dependents, as applicable, as in effect on the date of Executive’s termination of employment (which amount will be based on the premium for the first month of COBRA coverage), which payment will be made regardless of whether Executive elects COBRA continuation coverage.  For the avoidance of doubt, the taxable payment in lieu of COBRA reimbursements may be used for any purpose, including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings.
(ii)    One hundred percent (100%) of Executive’s outstanding and unvested time-vesting equity awards (excluding any awards vesting based on performance) covering shares of the Company’s common stock will become vested.  In the case of a termination for Disability, vesting under this Section 3(e) will be subject to Executive’s compliance with Section 4 and the other provisions of this Agreement.  
(f)    Accrued Amounts.  Without regard to the reason for, or the timing of, Executive’s termination of employment, the Company shall pay Executive: (i) any unpaid base salary due for periods prior to the date of termination, (ii) accrued and unused vacation, as required under the applicable Company policy; and (iii) all expenses incurred by Executive in connection with the business of the Company prior to the date of termination in accordance with the Company’s business expense reimbursement policy.  These payments shall be made promptly upon termination and within the period of time mandated by law.

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(g)    Exclusive Remedy.  In the event of termination of Executive’s employment as set forth in Section 3 of this Agreement, the provisions of Section 3 are intended to be and are exclusive and in lieu of any other rights or remedies to which Executive or the Company may otherwise be entitled, whether at law, tort or contract, in equity, or under this Agreement (other than the payment of accrued but unpaid wages, as required by law, or any unreimbursed reimbursable expenses).  During the term of this Agreement, Executive will be entitled to no benefits, compensation or other payments or rights upon termination of employment, including under any offer letter or other agreement with the Company, other than those benefits expressly set forth in Section 3 of this Agreement.
(h)    Transfer between Company and any Subsidiary.  For purposes of this Section 3, if Executive’s employment relationship with the Company or any parent or subsidiary of the Company ceases, Executive will not, solely by virtue thereof, be determined to have been terminated without Cause for purposes of this Agreement if Executive continues to remain employed by the Company or any subsidiary of the Company immediately thereafter (e.g., upon transfer of Executive’s employment from the Company to a Company subsidiary).
4.    Conditions to Receipt of Severance
(a)    Release of Claims Agreement.  The receipt of any severance payments or benefits in Section 3 pursuant to this Agreement is subject to Executive signing and not revoking a separation agreement and release of claims in substantially the form attached to this Agreement as Exhibit A (the “Release”), which must become effective and irrevocable no later than the sixtieth (60th) day following Executive’s termination of employment (the “Release Deadline”).  If the Release does not become effective and irrevocable by the Release Deadline, Executive will forfeit any right to severance payments or benefits under this Agreement.  Any severance payments or benefits otherwise payable to Executive between the termination date and the Release Deadline will be paid on or within fifteen (15) days following the Release Deadline, or, if later, such time as required by Section 5(a), except that acceleration of vesting of equity awards not subject to Section 409A will become effective on the date the Release becomes effective. In no event will severance payments or benefits be paid or provided until the Release actually becomes effective and irrevocable.
(b)    Proprietary Information and Non-Competition Agreement.  Executive’s receipt of any severance payments or benefits under Section 3 will be subject to Executive continuing to comply with the terms of any agreements between Executive and the Company concerning inventions, confidentiality, or restrictive covenants (the “Confidentiality Agreement”). 
5.    Section 409A.
(a)    Notwithstanding anything to the contrary in this Agreement, no Deferred Payments will be paid or otherwise provided until Executive has a “separation from service” within the meaning of Section 409A.  Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A‐1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A.  In addition, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s separation from service (other than due to death), then 

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the Deferred Payments, if any, that are payable within the first six (6) months following Executive’s separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service, but before the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute a separate payment under Section 1.409A-2(b)(2) of the Treasury Regulations.
(b)    Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of this Agreement.
(c)    Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes of this Agreement. 
(d)    The foregoing provisions are intended to comply with, or be exempt from, the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to so comply.  Specifically, the payments hereunder are intended to be exempt from the Requirements of Section 409A under the “short-term” deferral rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition before actual payment to Executive under Section 409A.  In no event will the Company reimburse Executive for any taxes or other costs that may be imposed on Executive as a result of Section 409A or any other law.
6.    Limitation on Payments.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then Executive’s benefits under this Agreement shall be either:
(a)    delivered in full, or
(b)    delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax,
whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the 

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greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction will occur in the following order: (1) reduction of cash payments, (2) cancellation of equity awards granted within the twelve-month period prior to a “change of control” (as determined under Code Section 280G) that are deemed to have been granted contingent upon the change of control (as determined under Code Section 280G), (3) cancellation of accelerated vesting of equity awards and (4) reduction of continued employee benefits.  In the event that accelerated vesting of equity awards is to be cancelled, such vesting acceleration will be cancelled in the reverse chronological order of the award grant dates.  
Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code.  The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.
7.    Definition of Terms.  The following terms referred to in this Agreement will have the following meanings:
(a)    Cause.  “Cause” will mean (i) any act of dishonesty or fraud taken by Executive in connection with his or her responsibilities as an employee other than immaterial, inadvertent acts that are promptly remedied by Executive following notice by the Company, (ii) Executive’s breach of the fiduciary duty or duty of loyalty owed to the Company, or material breach of the duty to protect the Company’s confidential and proprietary information, (iii) Executive’s conviction or plea of nolo contendere to a felony or to a crime involving fraud, embezzlement, misappropriation of funds or any other act of moral turpitude, (iv) Executive’s gross negligence or willful misconduct in the performance of his or her duties, (v) Executive’s material breach of this Agreement or a written policy of the Company; (vi) Executive’s engagement in conduct or activities that result, or are reasonably likely to result, in negative publicity or public disrespect, contempt or ridicule of the Company; (vii) Executive’s failure to abide by the lawful and reasonable directives of the Company; or (viii) Executive’s repeated failure to materially perform the primary duties of Executive’s position provided, however, that: a termination of the Executive’s employment pursuant to clause (vii) or clause (viii) of this Section shall not be deemed a termination for “Cause” unless the Company notifies Executive in writing of the alleged failure or breach that the Company claims constitutes Cause, and Executive fails to substantially cure such failure or breach within thirty (30) days of such notice; and provided further, however, that clauses (vii) and (viii) of this Section shall not apply during the pendency of a Change of Control Period and therefore no termination for Cause may be made under such clauses during any such period. 

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(b)    Change of Control.  “Change of Control” will mean the occurrence of any of the following events:
(i)    any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company's then outstanding voting securities; 
(ii)    the consummation by the Company of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation (in substantially the same proportions relative to each other as immediately prior to the transaction); or 
(iii)    the consummation of the sale or disposition by the Company of all or substantially all of the Company's assets (it being understood that the sale or spinoff of one or more (but not all material) divisions of the Company shall not constitute the sale or disposition of all or substantially all of the Company’s assets). 
Further and for the avoidance of doubt, a transaction will not constitute a Change of Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
(c)     Change of Control Period.  “Change of Control Period” means the period beginning on a Change of Control and ending on the one-year anniversary of the Change of Control. 
(d)    Code.  “Code” means the Internal Revenue Code of 1986, as amended.
(e)    Deferred Payments.  “Deferred Payments” means any severance pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, in each case, are or when considered together with any other severance payments or separation benefits are, considered deferred compensation under Section 409A.
(f)    Exchange Act.  “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(g)    Good Reason.  “Good Reason” means Executive’s termination of employment within thirty (30) days following the expiration of any cure period (discussed below) following the occurrence of one or more of the following, without Executive’s express written consent: (i) a material reduction in Executive’s duties, authority or responsibilities; (ii) a material reduction by the Company in the annual base compensation or target bonus opportunity (as a percentage of base salary) of the Executive as in effect immediately prior to such reduction provided, however, that 

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one or more reductions in base compensation or target bonus opportunity applicable to all executives generally that, cumulatively, total ten percent (10%) or less in base compensation and/or ten (10) percentage points or less in target bonus opportunity will not constitute a material reduction for purposes of this clause (ii); (iii) the relocation of the Executive to a facility or a location more than fifty (50) miles from the Executive’s then present location; (iv) the failure of the Company to obtain the assumption of this agreement by any successors contemplated in Section 8 below; or (v) a material breach by the Company of this Agreement or any equity award agreement between Company and the Executive.  In order for an event to qualify as Good Reason, Executive must not terminate employment with the Company without first providing the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and the Company shall have failed to cure during a period of thirty (30) days following the date of such notice.
(h)    Section 409A.  “Section 409A” means Section 409A of the Code and the final Treasury Regulations and any official Internal Revenue Service guidance promulgated thereunder.
(i)    Section 409A Limit.  “Section 409A Limit” means two (2) times the lesser of: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year preceding the Executive’s taxable year of Executive’s termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.
8.    Successors.
(a)    The Company’s Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 8(a) or which becomes bound by the terms of this Agreement by operation of law.
(b)    Executive’s Successors.  The terms of this Agreement and all rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
9.    Notice.
(a)    General.  Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered, when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid, or when 

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delivered by private courier service such as UPS or Federal Express that has tracking capability.  In the case of Executive, mailed notices will be addressed to him or her at the home address which he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices will be addressed to its corporate headquarters, and all notices will be directed to the Chief Executive Officer and General Counsel of the Company.
(b)    Notice of Termination.  Any termination by the Company for Cause or by Executive for Good Reason will be communicated by a notice of termination to the other party hereto given in accordance with Section 9(a) of this Agreement.  Such notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and will specify the termination date (which will be not more than thirty (30) days after the giving of such notice or any shorter period required herein).  
10.    Resignation.  Upon the termination of Executive’s employment for any reason, Executive will be deemed to have resigned from all officer and/or director positions held at the Company and its affiliates voluntarily, without any further required action by Executive, as of the end of Executive’s employment and Executive, at the Board’s request, will execute any documents reasonably necessary to reflect Executive’s resignation.
11.    Miscellaneous Provisions.
(a)    No Duty to Mitigate.  Executive will not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that Executive may receive from any other source.
(b)    Waiver.  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)    Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
(d)    Entire Agreement.  This Agreement and the Confidentiality Agreement constitute the entire agreement of the parties hereto with respect to the subject matter hereof and thereof.  This Agreement supersedes, replaces in their entirety and terminates any prior representations, understandings, undertakings or agreements between the Company and the Executive, whether written or oral and whether expressed or implied, that provided any benefits to Executive upon termination of Executive’s employment for any reason. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto and which specifically mention this Agreement.  For the avoidance of doubt, it is the intention of the parties that the provisions of this Agreement providing for acceleration or other modification of the vesting provisions of equity awards are intended to supersede the vesting provisions of any equity awards that may outstanding during the term of this Agreement.

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(e)    Governing Law.  If Executive is resident in California, this Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of California, and the Company and the Executive each consent to personal and exclusive jurisdiction and venue in the State of California.  If Executive is resident in any state or other jurisdiction other than California, this Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the Commonwealth of Massachusetts, and the Company and the Executive each consent to personal and exclusive jurisdiction and venue in the Commonwealth of Massachusetts.
(f)    Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect.
(g)    Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable income, employment and other taxes.
(h)    Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
IN WITNESS WHEREOF, each of the parties has executed this Change of Control and Severance Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.
COMPANY    NUANCE COMMUNICATIONS, INC.
By:                            
Title:                            
Date:                            

EXECUTIVE                                 
Daniel Tempesta
Date:                            

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EXHIBIT A
FORM OF SEPARATION & RELEASE AGREEMENT
This Separation & Release Agreement (the “Agreement”) is made by and between Nuance Communications, Inc., a Delaware corporation (the “Company”) and _______________ (“Executive”).  The Company and Executive are sometimes referred to collectively as the “Parties” and individually as a “Party.”
WHEREAS, Executive has agreed to enter this Agreement whereby Executive will release any and all claims Executive may have against the Company and other released parties upon certain events specified in the Change of Control and Severance Agreement by and between Company and Executive (the “Severance Agreement”).
NOW THEREFORE, in consideration of the mutual promises made herein, the Parties hereby agree as follows:
1.Termination.  Executive’s employment from the Company terminated on ________________ (the “Termination Date”).
2.    Confidential Information.  Subject to Section 13, Executive shall continue to maintain the confidentiality of all confidential and proprietary information of the Company and shall continue to comply with the terms and conditions of the Proprietary Information, Inventions and Non-Competition Agreement (the “Confidentiality Agreement”) between Executive and the Company.  Executive agrees that the above reaffirmation and agreement with the Confidentiality Agreement shall constitute a new and separately enforceable agreement to abide by the terms of the Confidentiality Agreement, entered and effective as of the Effective Date.  Executive specifically acknowledges and agrees that any violation of the restrictive covenants in the Confidentiality Agreement shall constitute a material breach of this Agreement. Executive shall return all the Company property and confidential and proprietary information in Executive’s possession to the Company on the Effective Date of this Agreement.  
3.    Payment of Salary and Receipt of All Benefits.  Executive acknowledges and represents that, other than the severance and benefits to be paid as set forth in the Severance Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation, premiums, leaves, relocation costs, interest, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Executive.
4.    Non-Solicitation.  In exchange for the severance pay and other consideration under the Severance Agreement to which Executive would not otherwise be entitled, Executive agrees that for a period of one (1) year after the Termination Date, Executive will not, without the express written consent of the Company, in its sole discretion, [(a) solicit any business that is competitive with the Company’s business from any client or customer of the Company or (b) either in Executive’s individual capacity or on behalf of or through any other entity, either directly or indirectly, hire, engage, recruit or participate in any way in the hiring, engagement or recruitment of, or participate in any effort to hire or solicit, any current or future employees of the Company or any subsidiary thereof.]  [Delete bracketed text for employees in California and substitute the following: “directly 

or indirectly solicit any of the employees of the Company or any subsidiary thereof to leave their employment with the Company or any subsidiary thereof.”]
5.    Non-disparagement.  In exchange for the severance pay and other consideration under the Severance Agreement to which Executive would not otherwise be entitled, Executive agrees not to disparage the Company, the Company’s officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or the Company’s business, business reputation or personal reputation. Nothing in this Agreement shall prevent either Executive or the Company employees who are aware of the existence of this Agreement from responding accurately and fully to any question, inquiry or request for information when required by legal process, nor prevent Executive from engaging in Protected Activities (as defined below).  
6.    [Non-Compete.  In exchange for the severance pay and other consideration under the Severance Agreement to which Executive would not otherwise be entitled, Executive agrees that for a period of one (1) year after the Termination Date, Executive will not, without the express written consent of the Company, in its sole discretion, enter, engage in, participate in, or assist, either as an individual on your own or as a partner, joint venturer, employee, agent, consultant, officer, trustee, director, owner, part-owner, shareholder, or in any other capacity, in the United States of America, directly or indirectly, any other business organization whose activities or products are competitive with the activities or products of the Company then existing or under development. Nothing in this Agreement shall prohibit Executive from working for an employer that is engaged in activities or offers products that are competitive with the activities and products of the Company so long as Executive does not work for or with the department, division, or group in that employer’s organization that is engaging in such activities or developing such products.  Executive recognizes that these restrictions on competition are reasonable because of the Company’s investment in goodwill, its customer lists, and other proprietary information and Executive’s knowledge of the Company’s business and business plans. If any period of time or geographical area should be judged unreasonable in any judicial proceeding, then the period of time or geographical area shall be reduced to such extent as may be deemed required so as to be reasonable and enforceable. Nothing in this Agreement shall preclude Executive from making passive investments of not more than two percent (2%) of a class of securities of any business enterprise registered under the Securities Exchange Act of 1934, as amended.][Delete paragraph for employees located in California.]
7.    Release of Claims.  Executive agrees that the consideration to be paid in accordance with the terms of the Severance Agreement represents settlement in full of all outstanding obligations owed to Executive by the Company.  Executive, on behalf of himself, and his respective heirs, family members, executors and assigns, hereby fully and forever releases the Company and its past, present and future officers, agents, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, parents, predecessor and successor corporations, and assigns, from, and agrees not to sue or otherwise institute or cause to be instituted any legal or administrative proceedings concerning any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess arising from any omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation,

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(a)    any and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship; 
(b)    any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 
(c)    any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; and conversion;
(d)    any and all claims for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, The Worker Adjustment and Retraining Notification Act, the California Family Rights Act; the California Labor Code, the California Workers’ Compensation Act, the California Fair Employment and Housing Act, Massachusetts Law Prohibiting Unlawful Discrimination, as amended, Mass. Gen. Laws ch. 151B, § 1 et seq., Massachusetts Discriminatory Wage Rates Penalized Law (Massachusetts Equal Pay Law), as amended, Mass. Gen. Laws ch. 149, § 105A et seq., Massachusetts Right to be Free from Sexual Harassment Law, Mass. Gen. Laws ch. 214, § 1C, Massachusetts Discrimination Against Certain Persons on Account of Age Law, Mass. Gen. Laws ch. 149, § 24A et seq., Massachusetts Equal Rights Law, Mass. Gen. Laws ch. 93, § 102 et seq., Massachusetts Violation of Constitutional Rights Law, Mass. Gen. Laws ch. 12, § 11I, Massachusetts Family and Medical Leave Law, Mass. Gen. Laws ch. 149, § 52D; and the Massachusetts Wage Act,  Mass. Gen. Laws ch. 149, § 148, et seq.;
(e)    any and all claims for violation of the federal, or any state, constitution; 
(f)    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; and
(g)    any and all claims for attorneys’ fees and costs.
Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not extend to any severance obligations due Executive under the Severance Agreement and does not release claims that cannot be released as a matter of law.  Nothing in this Agreement waives Executive’s rights to indemnification or any payments under any insurance policy, if any, provided by any act or agreement of the Company, state or federal law or policy of insurance.

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8.    Acknowledgment of Waiver of Claims under ADEA.  Executive acknowledges that Executive is waiving and releasing any rights he or she may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary.  Executive and the Company agree that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Executive acknowledges that the consideration given for this waiver and release Agreement is in addition to anything of value to which Executive was already entitled.  Executive further acknowledges that Executive has been advised by this writing that (a) Executive should consult with an attorney prior to executing this Agreement; (b) Executive has at least twenty-one (21) days within which to consider this Agreement; (c) Executive has seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; (d) this Agreement shall not be effective until the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law.  Any revocation should be in writing and delivered to the General Counsel at the Company by close of business on the seventh day from the date that Executive signs this Agreement.  In the event Executive signs this Agreement and returns it to the Company in less than the 21-day period identified above, Executive hereby acknowledges that he/she has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  The parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.
9.    California Civil Code Section 1542.  Executive acknowledges that Executive has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
Executive, being aware of said code section, agrees to expressly waive any rights Executive may have thereunder, as well as under any other statute or common law principles of similar effect. 
10.    No Pending or Future Lawsuits.  Executive represents that he or she has no lawsuits, claims, or actions pending in her name, or on behalf of any other person or entity, against the Company or any other person or entity referred to herein.  Executive also represents that Executive does not intend to bring any claims on his/her own behalf or on behalf of any other person or entity against the Company or any other person or entity referred to herein.
11.    No Cooperation.  Subject to Section 13, Executive agrees that he or she will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company and/or any officer, director, employee, agent, representative, shareholder or attorney of the Company, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement.  

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12.    No Admission of Liability.  Executive understands and acknowledges that this Agreement constitutes a compromise and settlement of disputed claims.  No action taken by the Company, either previously or in connection with this Agreement shall be deemed or construed to be (a) an admission of the truth or falsity of any claims heretofore made or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to the Executive or to any third party.
13.    Protected Activity.  Executive understands that nothing in this Agreement or in the Confidentiality Agreement shall in any way limit or prohibit Executive from engaging for a lawful purpose in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint or report with, or otherwise communicating with, cooperating with or participating in any investigation or proceeding that may be conducted by any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Executive understands that in connection with such Protected Activity, Executive is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company Proprietary Information under this Agreement or the Confidentiality Agreement to any parties other than the relevant Government Agencies. Executive further understands that Protected Activity does not include the disclosure of any Company attorney-client privileged communications
14.    Miscellaneous.
(a)    Costs.  The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this Agreement.
(b)    Authority.  Executive represents and warrants that Executive has the capacity to act on his or her own behalf and on behalf of all who might claim through Executive to bind them to the terms and conditions of this Agreement.
(c)    No Representations.  Executive represents that Executive has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Neither Party has relied upon any representations or statements made by the other Party hereto which are not specifically set forth in this Agreement.
(d)    Severability.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.
(e)    Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

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(f)    Entire Agreement.  This Agreement, along with the Severance Agreement and the Confidentiality Agreement, represents the entire agreement and understanding between the Company and Executive concerning Executive’s separation from the Company.
(g)    No Oral Modification.  This Agreement may only be amended in writing signed by Executive and the Chief Executive Officer of the Company.
(h)    Governing Law.  [FOR MA RESIDENTS:] [This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the Commonwealth of Massachusetts, and the Company and the Executive each consent to personal and exclusive jurisdiction and venue in the Commonwealth of Massachusetts.] [FOR CA RESIDENTS:]  [This Agreement shall be governed by the internal substantive laws, but not the choice of law rules, of the State of California, and the Company and the Executive each consent to personal and exclusive jurisdiction and venue in the State of California.]  
(i)    Effective Date.  This Agreement is effective eight (8) days after it has been signed by both Executive, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).
(j)    Counterparts.  This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.
(k)    Voluntary Execution of Agreement.  Executive understands and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Executive’s claims against the Company and other persons referenced herein.  Executive acknowledge that:
(i)    Executive has read this Agreement;
(ii)    Executive has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Executive’s own choice or has voluntarily declined to seek such counsel;
(iii)    Executive understand the terms and consequences of this Agreement and of the releases it contains; and 
(iv)    Executive is fully aware of the legal and binding effect of this Agreement.
Signature Page Follows

IN WITNESS WHEREOF, the Parties have executed this Separation & Release Agreement on the respective dates set forth below.

COMPANY:    NUANCE COMMUNICATIONS, INC.
By:                            
Title:                            
Date:                            

EXECUTIVE:                                  
Date:                            

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                     LIMITED WAIVER TO CREDIT AGREEMENT         LIMITED WAIVER TO CREDIT AGREEMENT (this “Agreement”), dated effective as of  November 15, 2018, among NORTHSTAR HEALTHCARE ACQUISITIONS, L.L.C., a Delaware  limited liability company (the “Borrower”), NOBILIS HEALTH CORP., a British Columbia  corporation (the “Parent”), NORTHSTAR HEALTHCARE HOLDINGS, INC., a Delaware  corporation (“Holdings”), the other Loan Parties (as defined in the Credit Agreement (defined below))  party hereto, COMPASS BANK (in its individual capacity, “Compass Bank”) in its capacity as  Swingline Lender, LC Issuing Lender and administrative agent (the “Administrative Agent”) and the  Lenders (defined below) party hereto. Unless otherwise indicated, all capitalized terms used herein and  not otherwise defined herein shall have the respective meanings provided to such terms in the Credit  Agreement referred to below.                                      W I T N E S S E T H:          WHEREAS, the Borrower, the Parent, Holdings, the other Loan Parties party thereto, the lenders  party thereto (the “Lenders”), the Administrative Agent and the other parties thereto have entered into that  certain Credit Agreement, dated as of October 28, 2016 (as previously amended and as from time to time  hereafter amended, supplemented or otherwise modified, the “Credit Agreement”).         WHEREAS, certain Events of Default have occurred and are continuing under Section 8.1(b) of  the Credit Agreement due to the Borrower’s failure to comply with (a) the financial covenants in Section  7.11(a) and Section 7.11(b) of the Credit Agreement as of the last day of the fiscal quarter of the  Borrower ended September 30, 2018 and (b) the restrictions on Restricted Payment contained in Section  7.6 of the Credit Agreement (collectively, the “Specified Defaults”).         WHEREAS, as a result of the Specified Defaults, the Administrative Agent has the right to  exercise all rights and remedies available to it under the Credit Agreement, the other Loan Documents  and applicable law.         WHEREAS, the Borrower has requested, and subject to the terms and conditions set forth herein,  the Administrative Agent and the Lenders party hereto (the “Consenting Lenders”) have agreed, subject  to the terms and conditions set forth herein, to waive certain provisions of the Credit Agreement as  specifically set forth herein.          NOW, THEREFORE, in consideration of the foregoing and for other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to  the above Recitals and as follows:          SECTION 1.   Limited Waiver.  Pursuant to Section 10.1 of the Credit Agreement, and upon the  occurrence of the Waiver Effective Date (as defined in Section 4 below), each Lender hereby temporarily  waives each Specified Default during the period (the “Waiver Period”) commencing on the Waiver  Effective Date and ending on the earlier to occur of (a) an Event of Default other than the Specified  Defaults and (b) the date that is 45 days after the Waiver Effective Date, after the earlier of which such  Specified Defaults shall spring back into existence.          SECTION 2.   Other Covenants and Agreements.  Each Loan Party hereby agrees as follows:         (a)    Administrative Agent Consultant.  Without limiting the obligations of the Borrower  under the Credit Agreement, expressly (i) consents to retention by counsel to the Administrative Agent of  one or more consultants, advisors and/or other professionals in connection with the Credit Agreement and    501951041 v5 1205867.00001  

 

the other Loan Documents, in each case, as permitted under such Loan Documents (including, but not  limited to Section 10.4(a) of the Credit Agreement), but subject to the limitations and restrictions thereof,  including for the purpose of analyzing the sales, collections, cash flow and similar operations of the  Parent and its subsidiaries (each a “Consultant”), (ii) agrees to pay the reasonable fees and out-of-pocket  expenses (including payment of the amount of any reasonable retainer) of such Consultants promptly  upon demand from time to time by the Administrative Agent and (iii) agrees to provide the  Administrative Agent and such Consultants with such information and direct access to the books, records  and management of Parent, Holdings, the Borrower and the other Loan Parties during reasonable business  hours as reasonably requested by the Administrative Agent or any such Consultant.           (b)   Borrower Consultant.  Within five (5) Business Days following the Waiver Effective  Date, the Loan Parties shall, at their sole cost and expense, retain Morris Anderson (the “Borrower  Consultant”), which consultant was selected by the Loan Parties and is acceptable to the Administrative  Agent, to assist management with the review, evaluation and improvement of their operations and  financial performance, on terms and conditions reasonably acceptable to the Administrative Agent, which  shall include (i) direct access by the Borrower Consultant to the Parent, Holdings and the Borrower  during reasonable business hours, (ii) the ability to take on the role of chief restructuring officer upon the  occurrence of certain subsequently determined retention trigger events as reasonably and mutually agreed  by the Loan Parties and the Administrative Agent in their respective sole discretion and (iii) the  Administrative Agent and the Consultant having direct and unrestricted access to the Borrower  Consultant and direct communications with such Borrower Consultant, either with the Borrower, Parent  or Holdings or their counsel present or without the presence of Borrower, Parent or Holdings or their  counsel.  Within thirty (30) Business Days following the Waiver Effective Date, the Loan Parties shall  deliver to the Administrative Agent a business plan (approved by the Borrower’s board of directors)  together with supporting financial projections and other information in support thereof in form and with  detail reasonably acceptable to the Administrative Agent, which shall include an assessment of strategic  alternatives available to the Loan Parties and provide for a permanent resolution of the Specified Defaults  and other identified issues to be mutually agreed, including but not limited to liquidity matters.          (c)   Cash Flow Reports.  Provide the following cash flow reports, in each case, for the  Borrower and its Subsidiaries on a consolidated basis and otherwise, in form and substance reasonably  satisfactory to the Administrative Agent: (a) on or prior to the Waiver Effective Date, the Borrower shall  prepare and deliver to the Administrative Agent a rolling cash flow forecast for the 13-week period  commencing as of such date (the “Initial Cash Flow Forecast”) and (b) thereafter, on each subsequent  Wednesday (or such later date as may be agreed to by the Administrative Agent in its reasonable  discretion), an updated Cash Flow Forecast for the succeeding 13 weeks (the “Updated Cash Flow  Forecast” and, together with the Initial Cash Flow Forecast, the “Cash Flow Forecasts”), each along with  a certificate of the chief financial officer of the Borrower to the effect that such Cash Flow Forecast  reflects the Borrower’s good faith projection of such weekly cash receipts and disbursements and ending  balance of available cash (as of the last Business Day of each week) for the Borrower and its Subsidiaries  on a consolidated basis. To the extent that any Updated Cash Flow Forecast line item includes a variance  of more than 10% from the prior projected amount for such line item, the Updated Cash Flow Forecast  shall include an explanation of the reason for such variance. Additionally, on each Wednesday, the  Borrower shall provide with respect to itself, its and its Subsidiaries, on a consolidated basis, a report for  the week ending the previous Friday, in form and substance reasonably satisfactory to the Administrative  Agent, specifying (A) the cash on hand in deposit accounts at the beginning of such week, (B) cash  receipts received during such week, with a schedule detailing daily collections, (C) cash disbursed during  such week in payment of expenses, (D) the cash on hand in deposit accounts at the end of such week and  (E) a comparison of such amounts to the comparable amounts in the Cash Flow Forecast for such week  and in the aggregate for the applicable Cash Flow Forecast period.  Further, commencing on December                                              2  501951041 v5 1205867.00001  

 

15, 2018 and on or before the 15th calendar day of each subsequent month, the Borrower shall provide the  Administrative Agent with an accounts receivable aging report with respect to itself and its Subsidiaries.          (d)   Collateral Perfection Certificate.  No less than 30 calendar days after the date of this  Agreement, the Loan Parties shall complete, certify as to the completeness and accuracy, in all material  respects, of the information contained therein and deliver to the Administrative Agent a collateral  perfection certificate in form and substance reasonably acceptable to the Administrative Agent with  respect to the assets of the Borrower and its Subsidiaries.          (e)   Additional Information.  The Loan Parties shall provide such other information regarding  the business, financial, legal or corporate affairs of any Loan Party or any Subsidiary thereof, or  compliance with the terms of the Loan Documents, as the Administrative Agent may from time to time  reasonably request.          The failure by the Loan Parties to comply with any of the requirements set forth in Section 2 shall  constitute an Event of Default under Article VIII of the Credit Agreement; provided, however, if such  non-compliance is with respect to Section 2(c) or Section 2(e) hereof, such failure thereunder shall  become an Event of Default under Article VIII of the Credit Agreement only if such failure continues  unremedied for a period of three (3) Business Days after delivery by the Administrative Agent to the  Borrower of notice of such non-compliance.          SECTION 3.   Acknowledgement and Confirmation.  Each of the Loan Parties party hereto  hereby agrees and acknowledges that with respect to each Loan Document to which it is a party, after  giving effect to this Agreement and the transactions contemplated hereunder:          (a)    as of November 14, 2018, subject to additions and other adjustments as permitted under  the Loan Documents, the aggregate balance of the outstanding Obligations under the Credit Agreement is  equal to $127,289,308.54, and that the respective balances of the various Loans and the LC Obligations as  of such date were equal to the following:                Term A Loans     $47,862,500.00               Term B Loans                            $48,125,000.00               Revolving Loans (excluding LC Obligations)  $28,500,000.00               LC Obligations     $1,500,000.00               Interest and LC Fees and Unused Fees    $1,301,808.54                              TOTAL     $127,289,308.54                       The foregoing amounts do not include interest accruing after November 14, 2018, additional fees,  expenses and other amounts that are chargeable or otherwise reimbursable under the Credit Agreement  and the other Loan Documents.  Further, each of the Loan Parties acknowledges and agrees that the above  described amounts are not subject to any offset, reduction, counterclaim or defense by the Loan Parties.         (b)    all of its obligations, liabilities and indebtedness under such Loan Document, including  guarantee obligations, shall, except as expressly set forth herein or in the Credit Agreement, remain in full  force and effect on a continuous basis; and         (c)    all of the Liens and security interests created and arising under such Loan Document  remain in full force and effect on a continuous basis, and the perfected status and priority to the extent  provided for in the Loan Documents of each such Lien and security interest continues in full force and                                              3  501951041 v5 1205867.00001  

 

effect on a continuous basis, unimpaired, uninterrupted and undischarged as Collateral for the  Obligations, to the extent provided in such Loan Documents.          SECTION 4.   Conditions of Effectiveness of this Agreement.  This Agreement shall become  effective on the date when the following conditions shall have been satisfied or waived (such date, the  “Waiver Effective Date”):          (a)    Counterparts of this Agreement.  The Administrative Agent’s receipt, which shall be  originals or electronic copies (including “.pdf” or similar format and, to the extent required by the  Administrative Agent followed promptly by originals) unless otherwise specified or otherwise not  applicable, of this Agreement, duly executed by (i) a Senior Officer of each of Holdings, the Parent, the  Borrower, and each other Loan Party existing as of the Waiver Effective Date, (ii) the Administrative  Agent, and (iii) the Consenting Lenders constituting Required Lenders.          (b)   Initial Cash Flow Forecast.  The Administrative Agent shall have received the Initial  Cash Flow Forecast along with supporting certification as specified in Section 2(c) of this Agreement.         (c)    Expenses. The Borrower shall have paid all reasonable and documented expenses of the  Administrative Agent and Compass Bank in its capacity as Lender incurred or accrued through the  Waiver Effective Date, including the reasonable and documented legal fees and expenses of (i)  McGuireWoods LLP, as prior legal counsel for the Administrative Agent and (ii) K&L Gates LLP,  existing counsel for the Administrative Agent, for which summary invoices have been delivered to the  Borrower (without waiver of any privilege or confidentiality).   Without limiting the generality of the provisions of Section 9.3(c) of the Credit Agreement, for purposes  of determining compliance with the conditions specified in this Section 4, each Lender that has signed  this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each  document or other matter required thereunder to be consented to or approved by or acceptable or  satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender  prior to the proposed Waiver Effective Date specifying its objection thereto.         SECTION 5.    Costs and Expenses. The Loan Parties hereby reconfirm their obligations under  the Loan Documents, including Section 10.4 of the Credit Agreement, to make payments and  reimbursements in accordance with the terms thereof (including with respect to this Agreement).          SECTION 6.   Representations and Warranties. To induce the Administrative Agent and the  other Lenders to enter into this Agreement, each Loan Party represents and warrants to the Administrative  Agent and the other Lenders on and as of the Waiver Effective Date (and, in each case, after giving effect  to the limited waiver contained in Section 1 of this Agreement) that, in each case:         (a)    the representations and warranties of the Loan Parties contained in Article V of the Credit  Agreement and in each other Loan Document are true and correct in all material respects (or, in the case  of any such representation and warranty that is subject to materiality or Material Adverse Effect  qualifications, in all respects) on and as of the Waiver Effective Date, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they shall be true and  correct in all material respects (or, in the case of any such representation and warranty that is subject to  materiality or Material Adverse Effect qualifications, in all respects as of such earlier date);           (b)   no Default or Event of Default exists and is continuing immediately prior to or after  giving effect to this Agreement, in each case, other than as expressly waived hereunder;                                               4  501951041 v5 1205867.00001  

 

      (c)    the execution, delivery and performance by such Loan Party of this Agreement have been  duly authorized by all necessary corporate and other organizational action and do not and will not require  any approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any  Governmental Authority or any other Person other than the authorizations, approvals, actions, notices and  filings listed on Schedule 5.3 of the Disclosure Schedules, all of which have been duly obtained, taken,  given or made and are in full force and effect on the Waiver Effective Date; and          (d)   this Agreement has been duly executed and delivered by each Loan Party that is a party  hereto and constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such  Loan Party in accordance with its terms; provided that the enforceability hereof is subject to general  principles of equity, principles of good faith and fair dealing and to bankruptcy, insolvency and similar  Laws affecting the enforcement of creditors’ rights generally.          SECTION 7.   Reference to and Effect on the Credit Agreement and the Loan Documents.          (a)    On and after the Waiver Effective Date, each reference in the Credit Agreement to “this  Agreement,” “herein,” “hereto”, “hereof” and “hereunder” or words of like import referring to the Credit  Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit  Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement,  shall  mean and be a reference to the Credit Agreement, as modified by this Agreement.          (b)   The Credit Agreement and each of the other Loan Documents, as specifically modified  by this Agreement, are and shall continue to be in full force and effect and are hereby in all respects  ratified and confirmed.           (c)   The execution, delivery and effectiveness of this Agreement shall not, except as expressly  provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative  Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan  Documents.  Without limiting the generality of the foregoing, the Collateral Documents in effect  immediately prior to the date hereof and all of the Collateral described therein in existence immediately  prior to the date hereof do and shall continue to secure the payment of all Obligations of the Loan Parties  under the Loan Documents, in each case, as modified by this Agreement.           SECTION 8.   Governing Law. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY,  DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE)  BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE  TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED  IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.          SECTION 9.   Counterparts. This Agreement may be executed in any number of counterparts  and by the different parties hereto on separate counterparts, each of which counterparts when executed  and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this  Agreement shall be effective as delivery of an original executed counterpart of this Agreement.          SECTION 10.  Release. Each of the Parent, Holdings, the Borrower and each other Loan Party,  on behalf of itself and its Subsidiaries, successors, assigns and other legal representatives, hereby releases,  waives, and forever relinquishes all claims, demands, obligations, liabilities and causes of action of  whatever kind or nature (collectively, the “Claims”), whether known or unknown, which any of them  have, may have, or might assert at the time of the execution of this Agreement or in the future against the  Administrative Agent, the Lenders and/or their respective present and former parents, affiliates,                                              5  501951041 v5 1205867.00001  

 

participants, officers, directors, employees, agents, attorneys, accountants, consultants, successors and  assigns (each a “Releasee”), directly or indirectly, which occurred, existed, were taken, permitted or  begun from the beginning of time through the date hereof, arising out of, based upon, or in any manner  connected with (a) the Loan Documents and/or the administration thereof or the Obligations created  thereby, (b) any discussions, commitments, negotiations, conversations or communications with respect  to the refinancing, restructuring or collection of any of the Obligations, or (c) any matter related to the  foregoing; provided that (i) the foregoing shall not release Claims arising following the date hereof, and  (ii) such release shall not be available to any Releasee with respect to a Claim to the extent that such  Claim is determined by a court of competent jurisdiction by final and non-appealable judgment to have  resulted from the gross negligence or willful misconduct of such Releasee.          SECTION 11.  Acknowledgments; Reservation of Rights.          (a)    The Loan Parties hereby acknowledge and agree that the Specified Defaults constitute  Events of Default under the Credit Agreement and, in the absence of the limited waiver set forth in  Section 1 of this Agreement, permits the Administrative Agent and the Lenders to, among other things,   take any enforcement action or otherwise exercise any or all rights and remedies provided for under the  Loan Documents or applicable law including, without limitation, those described in Section 11 of this  Agreement.          (b)   The Loan Parties hereby acknowledge and agree that each of the Administrative Agent  and the Lenders expressly reserves all of its rights, powers, privileges and remedies under the Credit  Agreement, other Loan Documents and/or applicable law, including, without limitation, its right at any  time from and after termination or expiration of the Waiver Period, (i) to determine not to make further  Loans or issue Letters of Credit under the Credit Agreement as a result of the Specified Defaults and/or to  terminate their Commitments to make Loans and issue Letters of Credit, (ii) to accelerate the Obligations,  (iii) to charge the default rate of interest in respect of the Obligations (as of any date from and after the  date on which the Specified Defaults first occurred) and to enforce the prohibition against incurring,  continuing or converting any Loan as or into a Eurodollar Rate Loan, (iv) to commence any legal or other  action to collect any or all of the Obligations from any or all of the Loan Parties, and any other person  liable therefor and/or any collateral, (v) to foreclose or otherwise realize on any or all of the collateral  and/or as appropriate, set-off or apply to the payment of any or all of the Obligations, any or all of the  collateral, (vi) to take any other enforcement action or otherwise exercise any or all rights and remedies  provided for by any or all of the Credit Agreement, other Loan Documents or applicable law, and (vii) to  reject any forbearance, financial restructuring or other proposal made by or on behalf of Borrower, any  other Loan Party or any creditor or equity holder.  Each of the Administrative Agent and the Lenders may  exercise their respective rights, powers, privileges and remedies, including those set forth in (i) through  (vii) above at any time after the termination or expiration of the Waiver Period in its sole and absolute  discretion without further notice.  No oral representations or course of dealing on the part of the  Administrative Agent, any Lender or any of its officers, employees or agents, and no failure or delay by  the Administrative Agent or any Lender with respect to the exercise of any right, power, privilege or  remedy under any of the Credit Agreement, other Loan Documents or applicable law shall operate as a  waiver thereof, and the single or partial exercise of any such right, power, privilege or remedy shall not  preclude any later exercise of any other right, power, privilege or remedy.          (c)   The Loan Parties, the Administrative Agent and the Lenders party hereto hereby  acknowledge and agree that to date, Administrative Agent and the Lenders have not elected to exercise  any such rights and remedies available to them.                        [The remainder of this page is intentionally left blank.]                                               6  501951041 v5 1205867.00001  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                      FRANKLIN SYNERGY BANK, as Lender                       By:                Name:              Title:                                     Northstar Healthcare Acquisitions, L.L.C.   Limited Waiver to Credit Agreement           Signature Pages  

 

                      BOKF, NA dba BANK OF TEXAS, as Lender                     By:                Name:              Title:                                    Northstar Healthcare Acquisitions, L.L.C.   Limited Waiver to Credit Agreement           Signature Pages  

 

                      FIRST TENNESSEE BANK, as Lender                       By:                Name:              Title:                                                                                                                                                                                                                                                                                                                                                                                                    Northstar Healthcare Acquisitions, L.L.C.   Limited Waiver to Credit Agreement           Signature Pages

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