Document:

Exhibit 10.40

 

AMENDMENT NO. 3, dated as of May
12, 2006 (this “Amendment”), to the STOCKHOLDERS’ AGREEMENT,
dated as of August 15, 2002, as amended by Amendment No. 1, dated as of April
28, 2005 and Amendment No. 2, dated as of October 24, 2005 (as so amended, the “Existing
Agreement”), among MQ ASSOCIATES, INC.,
a Delaware corporation (the “Company”), and the stockholders of the
company party thereto.

 

By executing and delivering this Amendment,
the undersigned hereby agree as set forth below. Capitalized terms used but not
defined herein shall have the respective meanings given to them in the Existing
Agreement.

 

Section 1.              Amendments.

 

Section 3.1(a) of the Existing Agreement
shall be amended and restated in its entirety to read as set forth below.

 

“3.1        Election
of Directors, Voting.

 

(a)           Each holder of Stockholder Shares
hereby covenants and agrees to vote all of his, her or its Stockholder Shares
(i) to cause the number of directors constituting the Board to be seven (7) and
(ii) to cause the Company to comply with all obligations under the Documents. At
each annual meeting of the holders of any class of Stockholder Shares, and at
each special meeting of the holders of any class of Stockholder Shares called
for the purpose of electing directors of the Company, and at any time at which
holders of any class of Stockholder Shares shall have the right to, or shall,
vote for or consent in writing to the election of directors of the Company,
then, and in each such event, the holders of Stockholder Shares shall vote all
of the Stockholder Shares owned by them for, or consent in writing with respect
to such shares in favor of, the election of a Board constituted as follows:

 

(i)            three (3) representatives designated
by the Requisite Investor Holders, two of which designees shall initially be
Benjamin B. Edmands and Stephen Murray;

 

(ii)           one (1) representative designated by
JPMP Global Investors, which designee shall initially be Nancy-Ann DeParle;

 

(iii)          two (2) representatives designated by
the Requisite Holders (which, for purposes of this paragraph (iii) only, shall
not include Daniel Schaefer and Michael Villa), which representatives shall be
knowledgeable in the Company’s industry and shall not be employees of the Company
or any of its Subsidiaries; and

 

(iv)          one representative who shall be the
Chief Executive Officer of the

 

 

Company (the “CEO Director”) for such period as he or she shall
hold such office; the CEO Director shall initially be C. Christian Winkle.”

 

Section 2.              No other Amendments or Waivers.

 

Except as modified by this
Amendment, the Existing Agreement shall remain in full force and effect,
enforceable in accordance with its terms. This Amendment is not a consent to
any waiver or modification of any other terms or conditions of the Existing Agreement
or any of the instruments or documents referred to in the Existing Agreement
and shall not prejudice any right or rights which the parties thereto may now
or hereafter have under or in connection with the Existing Agreement or any of
the instruments or documents referred to therein.

 

Section 3.              Effectiveness; Counterparts

 

This Amendment may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by the
Company and the Requisite Holders (by facsimile or otherwise) to the other
party, it being understood that all parties need not sign the same counterpart.
Any counterpart or other signature to this Amendment that is delivered by
facsimile shall be deemed for all purposes as constituting good and valid
execution and delivery by such party of this Amendment.

 

Section 4.              Governing Law.

 

This Amendment shall be governed by and
construed and enforced in accordance with the laws of the State of New York
without giving effect to any choice or conflict of law provision or rule
(whether in the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New
York.

 

*******

 

 

IN WITNESS WHEREOF,
the parties have duly executed this Amendment No. 3 to the Existing Agreement
as of the date first above written.

 

	
   

  	
  MQ ASSOCIATES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Christian Winkle

  	
   

  
	
   

  	
   

  	
  Name: C. Christian Winkle

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MQ INVESTMENT HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  J.P. Morgan Partners (BHCA), L.P.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  JPMP Master Fund Manager, L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  JPMP Capital Corp.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen Murray

  	
   

  
	
   

  	
   

  	
  Name: Stephen Murray

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MQ INVESTMENT HOLDINGS II, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin B. Edmands

  	
   

  
	
   

  	
   

  	
  Name: Benjamin B. Edmands

  
	
   

  	
   

  	
  Title:

  

 

[Signature Page to
Stockholders’ Agreement, Amendment No. 3]

 

 

	
   

  	
  FOR PURPOSES OF SECTION 6.1(b)(iii) OF

  THE EXISTING AGREEMENT ONLY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  J.P. MORGAN PARTNERS GLOBAL 

  INVESTORS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  JPMP Global Investors, L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  JPMP Capital Corp.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen Murray

  	
   

  
	
   

  	
   

  	
  Name: Stephen Murray

  
	
   

  	
   

  	
  Title:

  

 

[Signature Page to
Stockholders’ Agreement, Amendment No. 3]EXHIBIT 10.1

NONQUALIFIED
DEFERRED COMPENSATION PROGRAM

FOR THE DIRECTORS OF THE

FEDERAL HOME LOAN BANK OF BOSTON

I.              PARTICIPATION

(a)                                  Under
this Nonqualified Deferred Compensation Program (the “Program”), the Directors
of the Federal Home Loan Bank of Boston may postpone receipt and resulting
taxation of all or a portion of their periodic meeting fees earned (hereinafter
referred to as the “Directors’ Fees”) in any calendar year by filing with the
Bank on or before December 31st of the preceding year an irrevocable
deferral election as shown in the form attached hereto.

(b)                                 An
individual who becomes a Director during a calendar year may file an
irrevocable deferral agreement with the Bank within 30 days after the date he
becomes a Director, in such manner as the Bank may prescribe. The deferral
election for that calendar year shall apply to that portion of Directors’ Fees
earned after the end of the month in which the agreement is filed. If such
Director fails to file a deferral election with the Bank within the 30-day
election period following the date s/he becomes a Director, s/he may thereafter
file a deferral election on or before any subsequent December 31st to be
effective for Directors’ Fees earned in the following calendar year.

II.                                     DEEMED
INVESTMENT OPTIONS

(a)                                  All
Directors’ fees will be credited to a separate memorandum account (“Deferred
Compensation Account”) maintained by the Bank for the Director. The deferred
Directors’ Fees shall be credited to such Account on the first business day
following the earning of such Directors’ Fees. Payment will be made from the
Bank’s overall general fund.

 

(b)                                 Prior
to January 1, 1998, amounts in the Deferred Compensation Accounts will
earn interest at the rate equivalent to the yield on the Bank’s average earning
assets (the “Bank’s Average Rate”), compounded and credited monthly.

(c)                                  Effective
January 1, 1998 in addition to the Bank’s Average Rate, which shall be
compounded and credited quarterly, the Bank shall make available additional
deemed investment options (the Bank’s Average Rate and such other investment
options collectively referred to as “Deemed Investment Options”) as a
performance measure under the Program and the following provisions shall apply:

(i)                                     A
Director shall be entitled to designate the proportions in which his/her
Deferred Compensation Account shall be treated as if it had been allocated
among the available Deemed Investment Options for periods on and after January 1,
1998 by filing the appropriate form with the Bank. A Director shall be entitled
to make separate investment elections with respect to his/her current Deferred
Compensation Account balance and the future credits to his/her Account. If a
Director fails to make an election under this paragraph with respect to any
amount, then such amount will earn interest at the Bank’s Average Rate
compounded and credited quarterly.

The Bank may from time to time make additional Deemed
Investment Options available as a performance measure under this Program and
may determine that any Deemed Investment Option that it has previously
established may be terminated as a performance measure under this Program.

(ii)                                  A
Director may elect to change his/her mix of Deemed Investment Options for
future deferrals by filing the appropriate form with the Bank. 

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This change in allocations among the Deemed Investment
Options for future credits to a Director’s Deferred Compensation Account will
be effective as of the first day of the calendar quarter following the Bank’s
receipt of such change form.

(iii)                               With
regard to a Director’s existing Deferred Compensation Account balance, a
Director may elect to transfer balances among the available Deemed Investment
Options once each calendar quarter by filing with the Bank the appropriate form
designated by the Bank. The election shall be effective as of the first
business day of the calendar quarter following the Bank’s receipt of the change
form.

(iv)                              Notwithstanding
the foregoing, a Director who has more than one distribution date and/or form
of payment applicable to his/her Deferred Compensation Account will be deemed
to have elected the Bank’s Average Rate as the performance measure of his/her
Deferred Compensation Account balance as of December 31, 1997 and shall be
ineligible to select any other Deemed Investment Option now or in the future as
a measurement of the performance of his/her Deferred Compensation Account
balance as of December 31, 1997.

(v)                       The
Deferred Compensation Accounts shall be valued as of the last day of each
calendar quarter. As of each valuation date, the Deferred Compensation Account
of each Director shall be credited or debited on the books of the Bank with the
earnings, gains, or losses that would have been generated if assets equal to
each Director’s Deferred Compensation 

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Account had been allocated to the Deemed Investment
Options selected by the Director under this Article H.

(vi)                              The
Bank may impose such additional rules and limitations upon transfers
between Deemed Investment Options as the Bank may consider necessary or
appropriate.

III.           VESTING

Directors shall be vested with 100% of all amounts,
including earnings, credited to their Deferred Compensation Account, but shall
have no interest in any assets of the Bank other than as an unsecured creditor.

IV.                                 DISTRIBUTION

(a)                        Except as
otherwise provided in this Plan, the distribution of the Director’s Deferred
Compensation Account shall commence as soon as practicable after the last day
of the calendar quarter coincident with or next following the occurrence of
(i), (ii), (iii), (iv) or (v) below, as elected by the Director on
his/her initial deferral agreement:

(i)                                     the
Director’s retirement as a Director of the Bank,

(ii)                                  any
stated date, as long as, on that date, the Director has attained age 55 but not
age 701⁄2,

(iii)                      the earlier of (i) or (ii) above,

(iv)                     the
later of (i) or (ii) above, or

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(v)                        the
5th, 10th, 15th or 20th anniversary of his/her participation in the Plan, as
specified by the Director.

In the event a Director elects either clause (ii) or
(iii) above, s/he may not elect a date less than three (3) years
subsequent to the date s/he makes the election. in the event a Director fails
to make an election under this Article IV, s/he shall be deemed to have
elected to have payment made in accordance with clause (i) above.

(b)                       In addition
to the above, a Director may elect on his/her initial deferral agreement that
payment of his/her Deferred Compensation Account commence as soon as
practicable following the January 1 coincident with or next following the
date the Director incurs the distributable event elected by the Director above.

(c)                        A Director
may change his/her designation of the event which entitles him/her to a
distribution of his/her Deferred Compensation Account provided that such
election applies to all credits to his/her Deferred Compensation Account and
shall not be effective until the January 1 of the second calendar year
following the calendar year in which such election is received by the Bank.

V.                                     FORM OF
PAYMENT

(a)                        A Director’s
Deferred Compensation Account shall be distributed to him/her in a cash single
sum payment. Notwithstanding the foregoing, a Director may elect to receive
distribution of his/her Deferred Compensation Account in annual or semi-annual
installments over a period not to exceed twenty (20) years. Installments shall
be payable as of January 1 and, if applicable, July 1, and the amount
of each installment shall equal the balance in the Director’s Deferred 

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Compensation Account as of the valuation date of
determination, divided by the number of remaining installments (including the
installment being determined).

The election of the installment form of payment shall
be made on the Director’s initial deferral agreement, shall apply to all
credits to his/her Deferred Compensation Account and shall be irrevocable except
as provided below.

(b)                       Notwithstanding
the above, a Director may prior to the commencement of his/her Deferred
Compensation Account, change the form in which his/her Deferred Compensation
Account is distributed, no more than once in any calendar year, by filing with
the Bank an amendment to his/her deferral agreement. The change shall be
limited to those forms of distribution described above, shall be subject to
approval of the Bank and shall be effective as of the January 1 of the
second calendar year following the calendar year in which such election is
received by the Bank.

VI.                                 SPECIAL
PROVISIONS FOR PARTICIPATING DIRECTORS ON DECEMBER 31, 1997

With respect to Directors who have a Deferred
Compensation Account under the Program on December 31, 1997, the following
provisions shall apply:

(a)                                  The
provisions of Paragraphs IV and V shall apply to any deferrals and earnings
thereon credited to a Director’s Deferred Compensation Account on and after January 1,
1998.

(b)                                 With
respect to existing Deferred Compensation Account balances as of December 31,
1997, and any subsequent earnings on that amount, a Director’s election as to
the form and timing of distribution of his/her Deferred 

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Compensation Account in effect on December 31,
1997 shall continue to govern the distribution of those amounts unless the
Director files a change of election form with the Bank in accordance with the
provisions of Paragraphs IV and V above. Such election shall apply to his/her
entire Deferred Compensation Account balance as of December 31, 1997, and
shall become effective as of the January 1 of the second calendar year
following the calendar year in which such election is received by the Bank.

VII.                             DISABILITY

If a Director becomes permanently and totally disabled
as determined by the Bank, the Bank may in its uncontrolled discretion permit
him/her to withdraw the entire balance of his/her Deferred Compensation Account
in a lump sum. Upon such withdrawal, the Director shall be permanently barred
from further participation in the Program.

VIII.        DEATH BENEFITS

Upon the death of a Director prior to the full payment
of amounts credited to his/her Deferred Compensation Account, the balance shall
be paid to the Director’s beneficiary in such form as shall be designated by
the Director. In the absence of an election as to the form of payment, the
unpaid amount shall be paid as soon as practicable in a single sum cash payment
to the beneficiary. The beneficiary designation may be changed by a Director at
any time by delivering to the Bank in writing a new beneficiary designation. Payment
shall be made in a single sum cash payment to the estate of the Director if no
beneficiary has been selected or survives the Director.

IX.           TAX WITHHOLDING

Distribution of any deferral amounts will be reduced
by the amount required to be withheld pursuant to any law or regulation with
respect to income taxes, social security or other tax.

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X.            NON-TRANSFERABILITY AND NON-ALIENATION

In no event shall the Bank make any payment under this
Program to any assignee or creditor of a Director or of a beneficiary, except
as otherwise required by law. Prior to the time of a payment hereunder, a
Director or a beneficiary shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Program,
nor shall rights be assigned or transferred by operation of law.

No benefits payable under the Program shall be subject
to alienation, sale, transfer, assignment, pledge, attachment, garnishment,
lien, levy, or like encumbrance. No benefit under the Program shall in any
manner be liable for or subject to the debts or liabilities of any person
entitled to benefits under the Program.

XI.                                UNSECURED
INTEREST

The Bank’s obligations are contractual only. The
withdrawal rights of a Director will be no greater than those of an unsecured
general creditor.

XII.                            AMENDMENT
OF TERMINATION

The Bank may in its discretion amend or terminate this
Program at any time by giving written notice of the amendment or termination to
all Directors participating in the Program. In the event of termination, the
Bank shall continue to maintain the Directors’ Deferred Compensation Accounts
until distributed in accordance with the Directors’ elections in effect on the
date of termination and the Directors shall remain 100% vested in all amounts
credited to their Deferred Compensation Account.

XIII.        CLAIM DISPUTES

Any dispute regarding the Program whatsoever,
including but not limited to disputes relating to the interpretation, validity
or performance of this Program, which cannot be resolved by the parties to such
dispute upon thirty (30) days’ written notice by either 

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party shall be settled upon application of any such
party by arbitration in the City of Boston, Massachusetts in accordance with
the rules then prevailing of the American Arbitration Association, and
judgment upon the award rendered by the arbitrators may be entered in any court
of competent jurisdiction. It is the purpose of this Program, and the intent of
the parties hereto, to make the submission to arbitration of any dispute or
controversy arising out of this Program an express condition precedent to any
legal or equitable action or proceeding of any nature whatsoever. The cost of
any arbitration proceedings under this Article XIII shall be shared equally
by the parties to such a dispute.

XIV.        APPLICABLE LAW AND CONSTRUCTION

This Program shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts.

The terms, provisions, and conditions of this Program
shall be binding upon and inure to the benefit of the Bank and the Director and
their respective heirs, executors, administrators and assigns.

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