Document:

f8k121710ex10ii_amersurg.htm

Exhibit 10.2

THREE RIVERS PROVIDER NETWORK

AGREEMENT WITH

______________________________

This Agreement is made this _____ day of ____________ 2010, by and between Three Rivers Provider Network, Inc., a Nevada Corporation (“TRPN”) and Sugar Land SA Services a Provider Group of health care services.  TRPN contracts with hospitals, physicians, ancillaries and entities hereinafter referred to as “Provider” rendering medical and health care services at pre-determined rates as follows.

1.  Clients. Covered Services, Contract Rates: TRPN contracts with insurance companies, third party administrators, health plans, individuals and entities hereinafter referred to as “Clients” that directly or indirectly access TRPN contracted providers for covered services.  Covered Services shall include all services that are medically necessary including health, workers’ compensation, automobile and general liability.  The rate used in conjunction with this Agreement will be a * discount off of Provider’s usual charge for covered services, less any applicable co-payments, co-insurance or deductibles.  Clients are obligated to make payment directly to provider only at the contracted rate as payment in full.  Provider shall not balance bill the patient upon receipt of payment in full at the contracted rate.  TRPN has no responsibility to make payments on behalf of Clients.  Payments shall be made within thirty (30) calendar days of receipt of clean claim.  Where a state mandated fee schedule exists, provider agrees to accept a * discount below the state schedule.  Payments made and cashed by the provider shall be accepted as payment in full and fulfillment of all terms of the agreement, providing the total payment including the member’s portion is not less than the contracted rate.

2.  Licenses, Standards of Care:  Provider agrees to deliver health care services that meet all legal standards of care complying with applicable Federal, State and Local laws and maintains the standards of NCQA and/or JCAHO.  The provider is delegated by TRPN to carry out and/or assign credentialing responsibilities.  Evidence of such licenses, certificates and standards shall be made available to TRPN upon request.

3.  Term and Termination:  This Agreement shall continue in effect for a period of two (2) years with automatic successive one (1) year terms.  This Agreement may be terminated by either party without cause with a ninety (90) day prior written notice to the other party at the mailing addresses listed under the signatures.  This Agreement may be immediately terminated with cause by TRPN should Provider lose applicable licenses, malpractice coverage, fail to honor the applicable contracted rates pursuant to this Agreement, or if any information provided in Attachment A is illegible, incomplete, or invalid.

4.  Dispute Resolution:  This Agreement shall be construed and interpreted in accordance with the laws of the State of Nevada.  Provider agrees to meet and confer in good faith to resolve any disputes that may arise under this Agreement. If a dispute between TRPN and Provider arises out of this Agreement and is not resolved, either party may submit the dispute to arbitration which shall be commenced and conducted in accordance with the Rules of Practice and Procedures of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”) as in effect at the time (“JAMS Rules”).

5.  Attachment A:  All information provided in Attachment A of this Agreement is complete and accurate to the best of Provider’s knowledge and Provider shall immediately notify TRPN of any changes thereto.  Provider agrees to mark “N/A” next to any blank that is not applicable to Provider’s business.

6.  Faxed Signatures:  The parties agree that facsimile signatures of authorized representatives of the parties shall legally bind the parties to the terms and conditions of this Agreement as if the signatures were original and shall be considered evidence of a fully executed Agreement.

 

7.  Final Agreement:  All terms and conditions agreed upon by the parties are contained in this Agreement.  All prior negotiations, promises, agreements and representations, either spoke or written concerning the subject matter of this Agreement that are not set forth herein are null and void and have no bearing on this Agreement.

 

	
*

	
Portions of this document omitted pursuant to an application for an order for confidential treatment pursuant to Rule 24b-2 under the Exchange Act.  Confidential portions of this document have been filed separately with the Securities and Exchange Commission.

 

 

  

  

  

 

IN WITNESS WHEREOF, the authorized parties hereto have executed this Agreement and intend to be bound thereby.

 

 

	PROVIDER GROUP NAME (Please Print):  	 	 	ATTENTION:LANI HAZELTON	 
	 	 	 	TRPN CONTRACTING SPECIALIST	 
	 	 	 	 	 
	SUGAR LAND SA SERVICES 	 	 	THREE RIVERS PROVIDER NETWORK	 

 

	 	 	 	 	 	 
	Signature: 	
 /s/ Jaime Olmo    

	 	Signature:	
/s/ Todd Breeden   

	 
	Title: 	
Chief Operating Officer     

	 	Name: 	
Todd Breeden, C.O.O.

	 
	Date: 	
12/2/2010   

	 	Mailing Address:	
910 Hale Place, Suite 101

	 
	 	 	 	 	Chula Vista, CA  91914   	 
	 	 	 	 	
Phone:  (619) 600-4832

Date:  12/8/2010

	 

 

 

ATTACHMENT A: PROVIDER INFORMATION

(Please attach a roster of all Providers that will be participating under this Agreement, use Addendum A)

 

 

	Last Name:	 	 	Group/Practice Name:	Sugar Land  SA Services
	 	 	 	 	 
	First Name: 	 	 	Primary Address:	P.O. Box 481,
	 	 	 	 	Alief, TX  77411
	Tax ID:	35-2318357	 	 	 
	 	 	 	County:	Harris
	National Provider Identifier (NPI):	 	Phone:	(713) 779-9800  Fax:  (713) 779-9862
	 	 	 	 	 
	1295989218 	 	Email:  jaimeolmo@me.com	 
	(If there is more than one NPI Number, please attach a listing.)	 	 	 
	 	 	 	Other Practice and/or Billing Address:  Yes □  /  No □
	Specialty:  	LSA, CSA, SA-C, CST/CFA, CRNFA, RN, CNOR	 	If “yes”, attach page with additional information
	 	 	 	 	 
	Subspecialty: 	Surgical Assistant	 	

Hospital Affiliations (list name, date and type):

	 	First Assistant	 	 
	 	 	 	 
	 	 	 	 

 

Provider agrees to mark “N/A” next to any blank that is not applicable to Provider’s business.

 

  

  

  

 

 

ADDENDUM A:

PROVIDER LISTING & FACILITY LOCATIONS

_______________________________

	
  

	
i.

	
The attached roster of providers and or locations will be participating under this Agreement between Sugar Land SA Services and Three Rivers Provider Network and shall include Tax Identification Numbers, NPI Numbers, Address(s), Phone and Fax Numbers.

  

  

  

 

Provider List

12/2/2010

	Name 	Credentials  	License Number
	      National Provider Identifier	 	 
	 	 	 
	
CANTU, AIMEE A

	
CSA

	
3554

 

 

	
CALLEGARI, ANDRES A

	
LSA

	
SA00108

 

 

	
DARWISHS-SALAMA, ALFREDO

	
LSA

	
SA00315

 

 

	
GARCIA, ABEL

	
LSA

	
SA00073

 

 

	
LARA, ATAHUALPA

	
SA-C

	
09-129

 

 

	
PARMAR, ABRAHAM

	
LSA

	
SA00020

 

 

	
ABORDO, BELTRAN

	
LSA

	
SA00024

 

 

	
CHAMBERLAIN, BLAND

	
LSA

	
SA00237

 

 

	
EATON, BRENT

	
NP-C

	
F0510035

 

 

	
ZHONG, BING TANG

	
LSA

	
SA00158

 

 

	
BENITEZ, CARLOS

	
LSA

	
SA00163

 

 

	
CAMPOS, CRISTINA

	
SA-C

	
09-165

 

 

	
FONTENOT, CHRISTINE

	
CSA

	
S169

 

 

	
GARCIA-MAYORCA, CARLOS

	
LSA

	
SA00313

 

 

	
NINA-WOSU, CHI

	
LSA

	
SA00085

 

 

	
PITTY, CATALINO

 

	
LSA

	
SA00279

 

 

 

  

1

  

 

Provider List

12/2/2010

	Name	Credentials	License Number
	    National Provider Identifier	 	 
	 	 	 
	
SEAMANS, CINDY R

	
SA-C

	
06-177

 

 

	
ARCEO, DIANA

	
SA-C

	
10-147

 

 

	
DUNLAP, DWAYNE

	
LSA

	
SA00388

 

 

	
GRIFFITH, DAWN

 

 

	
CSA

	
07336

	
BESSON, DORKA G

	
LSA

	
SA00291

 

 

	
MURANOVIC, DUBRAVKA

	
LSA

	
SA00084

 

 

	
FLORES, ELEAZAR

 

 

	
CST/CFA

	
88303

	
GLORIA, EDUARDO

	
LSA

	
SA00270

 

 

	
RODRIGUEZ, EDUARDO

	
LSA

	
SA00091

 

 

	
CHAFI, FARIBORZ

 

 

	
CST/CFA

	
119805

	
MEDINA, FELIPE

	
LSA

	
SA00335

 

 

	
AGUILAR, HUGO

 

	
LSA

	
SA00289

 

 

	
THEIS, HELEN K

	
RN

	
081124

 

 

	
AUTREY, HEATHER N

	
CST,CFA

	
114315

 

 

	
PANAGUA, HENRY

	
CSA

	
08-207

 

 

	
ROA, HERNAN

	
LSA

	
SA00276

 

 

 

  

2

  

 

Provider List

12/2/2010

	Name	Credentials	License Number
	     National Provider Identifier	 	 
	 	 	 
	
AYUB, ILIA

	
LSA

	
SA00329

 

 

	
VELEZ-VEGA, IVELISSE

	
LSA

	
SA00191

 

 

	
ASPORT, JORGE

	
LSA

	
SA00304

 

 

	
CHAPA, JOSE

	
LSA

	
SA00255

 

 

	
CONSECO, JOSE

	
LSA

	
SA00110

 

 

	
DELEON, JUAN CARLOS

	
SA-C

	
09136

 

 

	
LORES, JULIO

	
LSA

	
SA00324

 

 

	
OLMO, JAIME A

	
LSA

	
SA00184

 

 

	
MACHADO, JANETSY

	
LSA

	
SA00322

 

 

	
RUSSELL, JAMES

	
CST/CFA

	
111677

 

 

	
SKORUPPA, JACOB

	
CST/CFA

	
109194

 

 

	
PITA, KLEBER

	
LSA

	
SA00274

 

 

	
PATEL, KIRAN

	
CSA

	
05-217

 

 

	
PERALTA, LEOPOLDO

	
LSA

	
SA00327

 

 

	
PATRONE, LOUIS

	
LSA

	
SA00138

 

 

	
WU, LARRY

	
LSA

	
SA00336

 

 

  

3

  

 

Provider List

12/2/2010

 

	Name	Credentials	License Number
	     National Provider Identifier	 	 
	 	 	 
	
ALALAM, MOHD

	
LSA

	
SA00309

 

 

	
ATHANS, MARK

	
LSA

	
SA00029

 

 

	
CHAUDHRY, MUBASHIR

	
LSA

	
SA00277

 

 

	
COLELLO, MARY

	
SA-C

	
07272

 

 

	
EMAN, MAGDY

	
LSA

	
SA00119

 

 

	
GOEN, MARIA E

	
CSA

	
08-223

 

 

	
FARAG, MAURICE

	
LSA

	
SA00038

 

 

	
LEON, MARITZA

	
LSA

	
SA00346

 

 

	
MAYOR, MASOUDA

	
LSA

	
SA00298

 

 

	
RODRIGUEZ, MANUEL

	
CSA

	
3114

 

 

	
SHOKRALLA, MAHER

	
LSA

	
SA00269

 

 

	
NASGAR, NAYEF

	
LSA

	
SA00135

 

 

	
AKUPUE, OKECHUKWU

	
LSA

	
SA00307

 

 

	
MARTINEZ, OMAR

	
LSA

	
SA00286

 

 

	
PERERA, PRIYANTHA

	
SAC

	
10-138

 

 

	
SLAVCHEV, PLAMEN

	
LSA

	
SA00316

 

 

 

  

4

  

 

Provider List

12/2/2010

 

	Name 	Credentials	License Number
	     National Provider Identifier	 	 
	 	 	 
	
TROMBLEY, PATRICIA

	
LSA

	
SA00156

 

 

	
TAMARGO, PEDRO

	
CSA

	
08120

 

 

	
BABURI, OASIM

	
LSA

	
SA00160

 

 

	
ARAGON, RECTO

	
LSA

	
SA00954

 

 

	
FOGLE, ROSA

	
LSA

	
SA00170

 

 

	
FRAZIER, ROBERT

	
CSA

	
3457

 

 

	
MACHADO, RAUL

	
LSA

	
SA00129

 

 

	
RODELA, ROBERT

	
SA-C

	
07252

 

 

	
VILLARREAL, ROSENDO

	
LSA

	
SA00249

 

 

	
ZAMARRON, ROGER

	
LSA

	
SA00056

 

 

	
ADIL, SAYED

	
LSA

	
SA00289

 

 

	
DEVI, SAVITRI

	
SA-C

	
09-230

 

 

	
KHAN, SOSON

	
LSA

	
SA00272

 

 

	
KAZEMI, SHAMILA

	
SA-C

	
09-285

 

 

	
MAMLOUK, SAMUEL

	
LSA

	
SA00263

 

 

	
ROBIN, SCOTT

	
LSA

	
SA00090

 

 

 

  

5

  

 

Provider List

12/2/2010

	Name 	Credentials	License Number
	     National Provider Identifier	 	 
	 	 	 
	
MARTINEZ, THERESA

	
SA-C

	
08-316

 

 

	
BATTAD, VENERANDO

	
LSA

	
SA00290

 

 

	
BARCES, VICENTE

	
LSA

	
SA00161

 

 

	
CRUZ, VIRGINIA

	
LSA

	
SA00325

 

 

	
ARANZA, WALTER

	
LSA

	
SA00330

 

 

	
BERRY, WILLIAM

	
CST/CFA

	
109540

 

 

	
ELGAMAL, ZAK

	
LSA

	
SA00011

 

 

6EX-10.1

SETTLEMENT AGREEMENT 

This Settlement Agreement and Claim Release (“Agreement”) is made and entered into this 15th
day of December 2010 between XL Specialty Insurance Company (“XL”), Arch Insurance Company (“Arch”)
and U.S. Specialty Insurance Company (“USSIC”) (collectively, the “QSPs”), Loral Space &
Communications Inc. (“Loral”), Mark H. Rachesky, Hal Goldstein and Sai S. Devabhaktuni (the “
Director Defendants”), and (for purposes of paragraphs 6 and 7 and 9 through 20 only)
MHR1 (collectively the “Parties”).

WHEREAS, the QSPs issued to Loral policies of insurance under which each of the QSPs issued a
shared percentage of a primary $40 million Limit of Liability as follows: XL, 50% or $20 million,
Policy No. ELU 90609-05 (the “XL Policy”); USSIC 25% or $10 million (policy binder with Policy No.
24-MGU-05-A11375); and Arch, 25% or $10 million (policy binder with Policy No. DOX0011443-00). The
XL Policy and the Arch and USSIC binders are referred to collectively as the “Policy;”

WHEREAS, three lawsuits were filed against Loral and Loral’s Directors, and captioned Babus v.
Targoff, et al., No. 06-603842 (N.Y. Sup. Ct. filed Nov. 2, 2006) (the “Babus Action”), Highland
Crusader Offshore Partners, L.P. v. Rachesky, et al., C.A. No. 2819-VCS (Del. Chanc. filed Mar. 21,
2007) (the “Highland Crusader Action”), and BlackRock Corporate High Yield Fund, Inc., et al. v.
Rachesky, et al., C.A. No. 2808-CC (Del Chanc. filed Mar. 20, 2007) (the “BlackRock Action”). The
Highland Crusader Action and the BlackRock Action were consolidated under the caption, In re Loral
Space & Communications, Inc., C.A. No. 2808-VCS (Del. Chanc. filed May 9, 2007) (the “Delaware
Action”) (the Babus and Delaware Actions are referred to collectively herein as the “Actions”);

WHEREAS, the QSPs advanced to Loral Defense Expenses2 totaling $10,963,288.46 for
amounts incurred in the defense of Loral and Loral Directors John D. Harkey, Jr., Arthur L. Simon,
Michael B. Targoff, John P. Stenbit and Dean A. Olmstead in the Actions, part of which was done
pursuant to a prior partial settlement agreement, which fully and finally resolved all issues
related to the aforementioned Loral Directors (the prior agreement remains in full effect as to its
subject matter);

WHEREAS, the QSPs declined to provide coverage for the amount that the court in the Delaware
Action ordered Loral to pay as a Plaintiffs’ fee award (the “Delaware Plaintiffs’ Fee Award”);

WHEREAS, on December 19, 2008, the QSPs commenced an action captioned XL Specialty Insurance
Company, et al. v. Loral Space & Communications Inc., Case No. 650529/2008 (N.Y. Sup. Ct. filed
Dec. 19, 2008) (the “Coverage Action”) seeking a declaration that the QSPs are not obligated under
the terms of the Policy to provide any coverage for the Delaware Plaintiffs’ Fee Award (the “Fee
Award Issue”);

WHEREAS, by Decision and Order entered February 11, 2010 (the “Summary Judgment Decision”),
Loral’s Motion for Summary Judgment on the Fee Award Issue was granted, and the QSPs’ Motion for
Summary Judgment on the Fee Award Issue was denied, and the QSPs subsequently appealed the
decisions;

WHEREAS, the appeal of the Summary Judgment Decision on the Fee Award Issue is currently
pending in the New York State Supreme Court Appellate Division, First Department (the “First
Department”);

WHEREAS, on April 30, 2010, Loral filed an amended counterclaim in the Coverage Action
alleging that the QSPs wrongfully refused to provide coverage for the costs of defense of the
Director Defendants, who at relevant times served as directors of Loral and principals of MHR Fund
Management LLC, and demanded $13,500,000.00 (thirteen million five hundred thousand dollars and no
cents) for costs of defense of the Director Defendants in the Actions (the “Director Defendants
Issue”);

WHEREAS, the Fee Award Issue and the Director Defendants Issue are the only two issues that
remain in dispute in the Coverage Action; and

WHEREAS, the QSPs and Loral have negotiated through their respective attorneys in order to
resolve the Fee Award Issue and the Director Defendants Issue in the Coverage Action.

NOW, THEREFORE, in consideration of the Parties’ promises contained herein, the Parties hereby
agree as follows:

1. The QSPs will severally and not jointly pay Loral, no later than thirty days from the full
and complete execution of this Settlement Agreement, the sum of $7,500,000.00 (seven million five
hundred thousand dollars and no cents), with XL contributing $3,750,000.00 (three million seven
hundred fifty thousand dollars and no cents) and Arch and USSIC contributing $1,875,000.00 (one
million eight hundred seventy-five thousand dollars and no cents) each, for settlement of the
Director Defendants Issue (the “Director Defendants Settlement Payment”).

2. The QSPs will severally and not jointly pay Loral, no later than thirty days from the full
and complete execution of this Settlement Agreement, the sum of $5,000,000.00 (five million dollars
and no cents), with XL contributing $2,500,000.00 (two million five hundred thousand dollars and no
cents) and Arch and USSIC contributing $1,250,000.00 (one million two hundred fifty thousand
dollars and no cents) each, towards a settlement of the Fee Award Issue (the “Initial Plaintiffs’
Fee Payment”).

3. (a) The QSPs will severally and not jointly pay (i) an additional $11,500,00.00 (eleven
million five hundred thousand dollars and no cents), with XL contributing $5,750,00.00 (five
million seven hundred fifty thousand dollars and no cents) and Arch and USSIC contributing
$2,875,000.00 (two million eight hundred seventy-five thousand dollars and no cents) each, towards
a settlement of the Fee Award Issue if a final judgment, after all appeals, is entered in favor of
Loral declaring that the Policy covers at least $16,500,000.00 of the Delaware Plaintiffs’ Fee
Award; (ii) no additional amount if a final judgment, after all appeals, is entered in favor of
QSPs declaring that the Policy covers no more than $5,000,000.00 of the Delaware Plaintiffs’ Fee
Award; or (iii) if a final judgment, after all appeals, is entered declaring that the Policy covers
a portion of the Delaware Plaintiffs’ Fee Award (the “Covered Portion”) that is more than
$5,000,000.00 but less than $16,500,000.00, an additional amount equal to the Covered Portion minus
$5,000,000.00 (the “Net Covered Portion”).

(b) The amounts payable under clauses (a)(i) or (a)(iii) of this paragraph (the “Conditional
Plaintiffs’ Fee Payment”) shall be payable within 30 days of entry of the final judgment containing
the declaration of coverage, provided, however, that in the event that a ruling by the First
Department (or on subsequent appeal, the New York Court of Appeals) specifies the Covered Portion
(without remanding to the trial court for further adjudication), then the QSPs shall advance their
respective shares of the Net Covered Portion within 30 days of the entry of such a ruling (an
“Allocation Payment Advance”), notwithstanding and without prejudice to the parties’ rights to
further appeal; and further provided that if an appellate ruling remands to the trial court for a
determination of the amount of the Covered Portion, then the Insurers shall advance to Loral,
within 30 days of the entry of such a remand ruling, the amount (not greater than $11,500,000.00)
that Loral advises in writing is its good faith estimate of the appropriate amount of the Net
Covered Amount, provided that the QSPs may make an additional payment above Loral’s estimate that
the QSPs reasonably and in good faith estimate are the Net Covered Amount (each of the advances
referred to in the foregoing provisos referred to herein as the “Allocation Payment Advance”).
Neither the fact of the QSPs payment, nor the amount of an Allocation Payment Advance, shall be
admissible or relevant in any further trial court proceedings.

4. (a) Notwithstanding anything herein to the contrary, under no circumstances, including
without limitation the outcome of any further litigation concerning the Fee Award Issue, shall
Loral be required to repay or return any portion of the Director Defendants Settlement Payment and
the Initial Plaintiffs’ Fee Payment;

(b) The payment amounts set out in paragraphs 2 and 3(a) above (the “Plaintiffs’ Fee
Payments”) are inclusive of all amounts associated with the Fee Award Issue, including any claims
Loral or any other party hereto may have for interest and/or attorneys’ fees, both through the date
of this agreement and hereafter incurred with respect to any further appeal or remand of the Fee
Issue. Notwithstanding the foregoing, however, in the event of a Conditional Plaintiffs’ Fee
Payment under clause (a)(iii) of paragraph 3, the QSPs shall pay, in addition to the Net Covered
Portion, (x) interest at the New York Legal Rate (as specified in N.Y. CPLR § 5004) on the amount
of the Covered Portion (or portions thereof) that is outstanding from January 7, 2009 to and
including the dates of actual tender of payments (including any Allocation Payment Advances), and
(y) the aggregate amount of attorneys’ fees and expenses incurred by Loral in respect of the Fee
Award Issue in the Coverage Action including the fees and expenses incurred prior to this
settlement in the stipulated sum of $625,000.00 (six hundred and twenty-five dollars and no cents)
plus the reasonable fees incurred subsequent to this settlement; provided that the interest and
fees payable pursuant to this subparagraph 4(b) shall be payable only to the extent that such
interest and fees, together with the amount of the Covered Portion, do not exceed $16,500,000.

(c) If, pursuant to a final and no longer appealable ruling determining the amount of the
Covered Portion, the Net Covered Portion (plus interest and fees as provided in paragraph 4(b)
above) is an amount greater or lesser than the amount of an Allocation Payment Advance, then within
30 days of such ruling, Loral (where the Net Covered Portion is less than the Allocation Payment
Advance) or the Insurers (where the Net Covered Portion is more than the Allocation Payment
Advance), as the case may be, shall pay the other the amount of such difference, together with
interest at the 30-day LIBOR rate +3% (but in no event greater than 6%) calculated from the date
the Allocation Payment Advance was made to the date of such payment.

(d) Notwithstanding anything in paragraphs 3 and 4(a)-(c) to the contrary, the Insurers shall
in no event be obligated to pay Loral under said paragraphs more than $11,500,000.00 in the
aggregate, including any and all interest and attorneys’ fees and expenses.

5. Release by the Insureds and MHR. Upon the payments by the QSPs as set forth
hereinabove, and subject to the limitations set forth in paragraph 6, the Director Defendants, and
their assigns, attorneys, heir, agents, and representatives, and Loral, on behalf of itself and its
respective directors, officers, employees, and principals, other than the Director Defendants but
including John D. Harkey, Jr., Arthur L. Simon, Michael B. Targoff, John P. Stenbit and Dean A.
Olmstead, and its affiliates, subsidiaries, parent entities, predecessors, successors in interest,
assigns, attorneys, heirs, agents, and representatives, and MHR, on behalf of itself and its
respective directors, officers, employees, and principals, and its affiliates, subsidiaries, parent
entities, predecessors, successors in interest, assigns, attorneys, heirs, agents, and
representatives, hereby unconditionally, irrevocably, and absolutely release and discharge the QSPs
and each of their respective assigns, predecessors, successors, affiliates, parent entities,
related entities, subsidiaries, officers, directors, partners, employees, principals, agents,
representatives, reinsurers, and attorneys at law (collectively, the “QSP Indemnified Persons”),
whether past or present, of and from all manner of claims, actions, causes of action, suits, debts,
liabilities, accounts, losses, indemnities, obligations, claims for sums of money, controversies,
settlement costs, attorney fees, court costs and expenses, damages, judgments and demands, of every
kind and nature whatsoever, whether known or unknown, suspected or unsuspected, fixed or contingent
(collectively, “Claims”), in connection with: (a) the Actions and the Coverage Action; (b) the
Policy, including but without limitation any and all claims that have been, could have been or may
be reported to the Insurer under the Policy; and (c) the investigation and settlement by the QSPs
of Loral’s claims for coverage under the Policy, including without limitation all claims for breach
of the covenant of good faith and fair dealing, “bad faith” or unfair claims handling practices,
provided however that they do not release or discharge any claims and obligations arising out of or
related to this Agreement.

6. MHR and Loral, on behalf of themselves and their respective directors, officers, employees,
and principals, and their affiliates, subsidiaries, parent entities, predecessors, successors in
interest, assigns, attorneys, heirs, agents, and representatives, including the Director
Defendants, do not release the QSPs or the QSP Indemnified Persons in respect of any Claims arising
under or related to any policy of insurance issued by one or more of the QSPs or any QSP
Indemnified Person to MHR or any of its affiliates, other than the Policy.

7. Release by the Insurers. The QSPs and each of their respective assigns,
predecessors, successors, affiliates, parent entities, related entities, subsidiaries, officers,
directors, partners, employees, principals, agents, representatives, reinsurers, and attorneys at
law, whether past or present, hereby unconditionally, irrevocably, and absolutely release and
discharge the Director Defendants and their assigns, attorneys, heirs, agents, and representatives,
and Loral on behalf of itself and its respective directors, officers, employees, principals,
affiliates, subsidiaries, parent entities, predecessors, successors in interest, assigns,
attorneys, heirs, agents, and representatives, whether past or present , and MHR, on behalf of
itself and its respective directors, officers, employees, and principals, and its affiliates,
subsidiaries, parent entities, predecessors, successors in interest, assigns, attorneys, heirs,
agents, and representatives, whether past or present, of and from all manner of claims, actions,
causes of action, suits, debts, liabilities, accounts, losses, indemnities, obligations, claims for
sums of money, controversies, settlement costs, attorney fees, court costs and expenses, damages,
judgments and demands, of every kind and nature whatsoever, whether known or unknown, suspected or
unsuspected, fixed or contingent, in connection with: (a) the Actions, including without limitation
the Director Defendants Settlement Payment and the Plaintiffs’ Fee Payments, and the Coverage
Action; (b) the Policy, including but without limitation any and all claims that the QSPs or any
QSP Indemnified Person may now or hereafter have for subrogation, co-indemnification or
contribution; and (c) the investigation and settlement by Loral, the Director Defendants and MHR of
any claim for indemnification, provided however that they do not release or discharge any claims
and obligations arising out of or related to this Agreement.

8. The parties shall file the stipulation of dismissal attached hereto as Exhibit A in order
to dismiss the entirety of the Coverage Action with prejudice, other than the Plaintiffs’ Fee Issue
currently on appeal, subject to the terms set forth in paragraphs 3, 4, and 5 above. The parties
also recognize and agree that in the event the First Department enters a ruling not containing a
remand for further findings, with respect to which an aggrieved party wishes to pursue further
appellate remedies, the other party agrees to execute such stipulations or consents as may
reasonably be necessary to assure that the adjudication is sufficiently final to allow for such
further ruling.

9. Conditions Precedent. It is an express condition precedent to the effectiveness of
this Agreement that this Agreement shall have been executed by the authorized signatories for each
Party as set forth below. This Agreement shall become effective on the date on which it has been
signed by all of the Parties and their undersigned counsel.

10. No Admission. This Agreement is the result of a compromise such that it does not
constitute and shall not be construed as an admission by any Party of any liability, coverage,
wrongdoing, or responsibility on the part of either Party or of any persons or entities relating in
any way thereto. It is understood and agreed that each Party expressly denies any such liability,
wrongdoing or responsibility.

11. Neutral Interpretation. No Party shall be entitled to the benefit of any rule of
interpretation favoring any Party, including interpretation against a Party as drafter, as each
Party has had ample opportunity to contribute to this document, has been fully and independently
advised by their own counsel, and denies any reliance upon any act, omission, representation, or
statement by the other as any inducement to execute this Agreement.

12. Authority. Each Party to this Agreement warrants and represents that the person
signing this Agreement on its behalf is duly authorized to enter into this Agreement on behalf of
such Party.

13. No Assignment. The Parties represent and warrant that they have not assigned to
any other person or entity any claims released pursuant to this Agreement.

14. Amendment. The terms of this Agreement are contractual and may not be changed,
modified, altered, or supplemented, nor may any covenant, representation, warranty or other
provision hereof be waived, except by agreement in writing signed by the Party against whom
enforcement of the change, modification, alteration, interlineations, supplementation or waiver is
sought.

15. Entire Agreement. The foregoing constitutes the entire Agreement between the
Parties with respect to the subject matter hereof and supersede any prior agreement or
negotiations.

16. Severability. The Parties agree that the provisions of this Agreement, and each
portion of each provision, are severable, and that all provisions are valid and enforceable. If,
however, for any reason, any portion of this Agreement is held to be void or invalid, any remaining
provisions shall continue in full force and effect and, to the extent reasonably possible, be
interpreted to achieve the substantive intent of the parties.

17. Choice of Law. This Agreement shall in all respects be interpreted, enforced,
governed and construed by and under the laws of the state of New York.

18. Interpretation and Dispute Resolution. The Parties agree that any action by any
party concerning disputes relating to this Agreement, including as to its interpretation, may be
brought only in the Supreme Court of the State of New York, New York County, and may be brought
only after the parties have attempted in good faith to resolve such disputes through mediation
before Jonathan Marks (if available).

19. Divisions and Headings. The division of this Agreement into sections and
subsections and the use of captions and headings in connection therewith are solely for convenience
and shall have no legal effect in construing the provisions of this Agreement.

20. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same Agreement.
Copies of signatures to this agreement that are transmitted by email, facsimile, overnight delivery
service, or U.S. mail shall be presumed valid.

WHEREFORE, XL, Arch, USSIC, the Director Defendants and Loral duly execute this Settlement
Agreement as follows:

	 	 	 
	Loral Space & Communications Inc.	 	 
	By: /s/ Michael B. Targoff

Title: CEO and President

Date: 8 December 2010

	 	Attest: /s/ Avi Katz

By: Senior VP, General Counsel and Secretary

	Sai S. Devabhaktuni

	 	

	By: /s/ Sai S. Devabhaktuni

Date:       

	 	Attest:      

By:      
	Hal Goldstein

By: /s/ Hal Goldstein

Date:       

	 	

Attest:      

By:      
	Mark H. Rachesky

	 	

	By: /s/ Mark H. Rachesky

Date: 12/15/10

	 	Attest:      

By:      
	Arch Insurance Company

	 	

	By: /s/ Christine Cirillo

Title: Vice President

Date: 12/7/10

	 	Attest:      

By:      

	U.S. Specialty Insurance Company

By: /s/ Richard Ruffee

Title: Sr. Vice President

Date: 12/7/10

	 	

Attest: /s/ Amanda Music

By: Amanda Music

	XL Specialty Insurance Company

By: Rebecca Pidlak, Esq.

Title: Assistant Vice President

	 	

Attest:      

By:      

Date: 12/6/10

For Purposes of Paragraphs 5, 6 ,7 and 9 through 20 only:

MHR Fund Management LLC (and affiliates)

By: Hal Goldstein

Title: Managing Principal

Date:       

4848-3324-3912, v. 2

	1	 	For purposes of this Agreement, “MHR” means MHR
Fund Management LLC, MHR Capital Partners Master Account LP, MHR Capital
	 
	 	 	Partners (100) LP, MHR Institutional Partners LP, MHRA LP, MHRM LP, MHR
Institutional Partners II LP, MHR Institutional Partners II A LP, MHR
Institutional Partners III LP, MHR Advisors LLC, MHR Institutional Advisors
LLC, MHR Institutional Advisors II LLC, and MHR Institutional Advisors III LLC.

	2	 	All capitalized terms have the same
meaning in this Settlement Agreement as they do in the XL Policy unless stated
otherwise.

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