Document:

Exhibit 10.22

August 10, 2006

Linda Reino

c/o MedQuist Inc.

1000 Bishops Gate Blvd., Suite 300

Mt. Laurel, NJ 08054

Dear Linda:

On behalf of MedQuist Inc. (the “Company”),
this Agreement describes the terms of your new employment as the Company’s
Chief Operating Officer, which will commence on October 2, 2006 (the “Employment
Commencement Date”). For purposes of this Agreement, you are referred to as
the “Employee.” Other capitalized terms used in this Agreement have the
meanings defined in Section 7, below.

1.             Term.
The Company shall employ Employee hereunder for a three (3) year term
commencing on the Employment Commencement Date hereof (the “Term”),
which Term will be automatically extended for additional one (1) year periods
beginning on the third anniversary of the Employment Commencement Date and upon
each subsequent anniversary thereof unless either party provides the other
party with at least ninety (90) days’ prior written notice of its intention not
to renew this Agreement unless terminated earlier pursuant to Sections 3 or 5
of this Agreement.

2.             Consideration.

a.             Compensation.
As consideration for all services rendered by Employee to the Company and for
the Covenants contained herein, Employee will be entitled to:

(1)           base salary at an
annual rate of $310,000;

(2)           participate in
MedQuist’s Management Bonus Plan, commencing in 2007. Your target bonus in this
plan will be 45% of your base salary for 2007 and following years. The target
bonus is the payment amount that the Employee shall be eligible to receive if
the Company and Employee both attain the pre-established bonus plan target
objectives. The actual bonus award may be higher or lower than the target bonus
amount based upon achievement of the objectives by Employee and the Company.
Management Bonus Plan target objectives shall be developed on or before
February 28th
of each year of the Management Bonus Plan;

(3)           participate in the
same employee benefit plans available generally to other full-time employees of
the Company, subject to the terms of those plans (as the same may be modified,
amended or terminated from time to time); (benefits information package
previously provided to you);

(4)           receive relocation
support in accordance with the Company Relocation Policy. This relocation offer
will be in effect for the first twenty-four (24) months of your employment;

(5)           if Employee’s
employment is terminated by the Company without Cause the severance pay and
benefits are described below in Section 5.

 

 

b.             Long Term
Incentives. In addition, from time to time, the Board may review the
performance of the Company and Employee and, in its sole discretion, may grant
stock options, shares of restricted stock or other equity-based incentives to
Employee to reward extraordinary performance and/or to encourage Employee’s
future efforts on behalf of the Company. The grant of any such equity
incentives will be subject to the terms of the Company’s equity-based plans and
will be evidenced by a separate award agreement by and between the Company and
Employee.

(1)           Upon joining
MedQuist, you will become entitled to a special stock option grant of 80,000
shares of non-qualified stock options (“Special Option Grant”) to purchase
Company common stock, no par value (“Common Stock”), pursuant to the Company’s
Stock Option Plan adopted May 29, 2002 (the “Option Plan”). The grant date of
the Special Option Grant will occur on the later of (i) the date the Company
becomes current in its reporting obligations under the Securities Exchange Act
of 1934; or (ii) the first date thereafter when the Form S8 Registration
Statement for the Option Plan complies with the requirement of the Securities
Exchange Commission provided that you are still an employee on the grant date.
The option price for the Special Option Grant shall be equal at least to the
fair market value of the Company’s Common Stock as of the grant date. The
Special Option Grant will be subject to all of the terms and conditions of the
Option Plan and the Stock Option Agreement that will be issued if and when the
grant becomes effective. Your right to exercise the option will vest in equal
20% installments on each of the first five (5) anniversaries of the grant date.
In the event of a “Change of Control” (as defined below) of the Company while
you are an employee, your Special Option Grant may, from and after the date
which is six months after the Change of Control (but not beyond the expiration
date of the option), be exercised for up to 100% of the total number of shares
then subject to the Special Option Grant minus the number of shares previously
purchased upon exercise of such option (as adjusted for any change in the
outstanding shares of the Common Stock of the Company in accordance with the
terms of the Option Plan) and your vesting date will accelerate accordingly. A “Change
of Control” shall be deemed to have occurred upon the happening of any of the
following events:

a.             A change within a
twelve-month period in the holders of more than 50% of the outstanding voting
stock of the Company; or

b.             Any other event
deemed to constitute a “Change of Control” by the Company’s Board of Directors.

(2)           Contingent upon
Employee’s continued attainment of performance objectives, the Company agrees
to deliver a long term incentive value of $60,000 annually through one of the
following, as determined in the Company’s sole discretion: (i) a stock option
grant pursuant to the Option Plan, (ii) a restricted stock grant or (iii) a
cash-based long term incentive program to be developed. The long term incentive
value of Company stock will be calculated based on an industry accepted stock
valuation methodology.

3.             Employment
At-Will. Nothing contained in this Agreement is intended to create an
employment relationship whereby Employee will be employed other than as an “at-will”
employee. Employee’s employment by the Company may be terminated by Employee or
the Company at any time; provided, however, that
while employed by the Company, the terms and 

 

 

conditions of Employee’s
employment by the Company will be as herein set forth; and provided further, that Section 4
of this Agreement will survive the termination of Employee’s employment.

4.             Covenants

a.             Non-Solicitation.
While employed by the Company and for the eighteen (18) month period following
the cessation of that employment for any reason (and without regard to whether
such cessation was initiated by Employee or the Company), Employee will not do
any of the following without the prior written consent of the Company:

(1)           solicit, entice or
induce, either directly or indirectly, any person, firm or corporation who or
which is a client or customer of the Company or any of its subsidiaries to
become a client or customer of any other person, firm or corporation;

(2)           influence or attempt
to influence, either directly or indirectly, any customer of the Company or its
subsidiaries to terminate or modify any written or oral agreement or course of
dealing with the Company or its subsidiaries (except in Employee’s capacity as
an employee of the Company); or

(3)           influence or attempt
to influence, either directly or indirectly, any person to terminate or modify
any employment, consulting, agency, distributorship, licensing or other similar
relationship or arrangement with the Company or its subsidiaries (except in
Employee’s capacity as an employee of the Company).

b.             Non-Disclosure.
Employee shall not use for Employee’s personal benefit, or disclose,
communicate or divulge to, or use for the direct or indirect benefit of any
person, firm, association or company other than Company, any “Confidential
Information,” which term shall mean any information regarding the Business
methods, Business policies, policies, procedures, techniques, research or
development projects or results, historical or projected financial information,
budgets, trade secrets, or other knowledge or processes of, or developed by,
Company or any other confidential information relating to or dealing with the
Business operations of Company, made known to Employee or learned or acquired
by Employee while in the employ of Company, but Confidential Information shall
not include information otherwise lawfully known generally by or readily
accessible to the general public. The foregoing provisions of this subsection
shall apply during and after the period when the Employee is an employee of the
Company and shall be in addition to (and not a limitation of) any legally
applicable protections of Company interest in confidential information, trade
secrets, and the like. At the termination of Employee’s employment with
Company, Employee shall return to the Company all copies of Confidential
Information in any medium, including computer tapes and other forms of data
storage.

c.             Non-Competition.
While employed by the Company and for the eighteen (18) month period following
the cessation of that employment for any reason (and without regard to whether
such cessation was initiated by Employee or the Company), Employee shall not
directly or indirectly engage in (as a principal, shareholder, partner,
director, officer, agent, employee, consultant or otherwise) or be financially
interested in any business which is involved in business 

 

 

activities
which are the same as or in direct competition with Business activities carried
on by the Company, or being definitively planned by the Company at the time of
termination of Employee’s employment. Nothing contained in this subsection
shall prevent Employee from holding for investment up to three percent (3%) of
any class of equity securities of a company whose securities are publicly
traded on a national securities exchange or in a national market system.

d.             Intellectual
Property & Company Creations.

(1)           Ownership.
All right, title and interest in and to any and all ideas, inventions, designs,
technologies, formulas, methods, processes, development techniques, discoveries,
computer programs or instructions (whether in source code, object code, or any
other form), computer hardware, algorithms, plans, customer lists, memoranda,
tests, research, designs, specifications, models, data, diagrams, flow charts,
techniques (whether reduced to written form or otherwise), patents, patent
applications, formats, test results, marketing and business ideas, trademarks,
trade secrets, service marks, trade dress, logos, trade names, fictitious
names, brand names, corporate names, original works of authorship, copyrights,
copyrightable works, mask works, computer software, all other similar
intangible personal property, and all improvements, derivative works, know-how,
data, rights and claims related to the foregoing that have been or are conceived,
developed or created in whole or in part by the Employee (a) at any time and at
any place that relates directly or indirectly to the Business of the Company,
as then operated, operated in the past or under consideration or development or
(b) as a result of tasks assigned to Employee by the Company (collectively, “Company
Creations”), shall be and become and remain the sole and exclusive property of
the Company and shall be considered “works made for hire” as that term is
defined pursuant to applicable statutes and law.

(2)           Assignment.
To the extent that any of the Company Creations may not by law be considered a
work made for hire, or to the extent that, notwithstanding the foregoing,
Employee retains any interest in or to the Company Creations, Employee hereby
irrevocably assigns and transfers to the Company any and all right, title, or
interest that Employee has or may have, either now or in the future, in and to
the Company Creations, and any derivatives thereof, without the necessity of
further consideration. Employee shall promptly and fully disclose all Company
Creations to the Company and shall have no claim for additional compensation
for Company Creations. The Company shall be entitled to obtain and hold in its
own name all copyrights, patents, trade secrets, trademarks, and service marks
with respect to such Company Creations.

(3)           Disclosure &
Cooperation. Employee shall keep and maintain adequate and current written
records of all Company Creations and their development by Employee (solely or
jointly with others), which records shall be available at all times to and
remain the sole property of the Company. Employee shall communicate promptly
and disclose to the Company, in such form as the Company may reasonably
request, all information, details and data pertaining to any Company Creations.
Employee further agrees to execute and deliver to the Company or its
designee(s) any and all formal transfers and assignments and other documents
and to provide any further cooperation or assistance reasonably required by the
Company to perfect, maintain or otherwise protect its rights in the Company
Creations. Employee hereby designates and appoints the Company or its designee
as Employee’s agent and attorney-in-fact to execute on Employee’s 

 

 

behalf any assignments
or other documents deemed necessary by the Company to perfect, maintain or
otherwise protect the Company’s rights in any Company Creations.

e.             Acknowledgments.
Employee acknowledges that the Covenants are reasonable and necessary to
protect the Company’s legitimate Business interests, its relationships with its
customers, its trade secrets and other confidential or proprietary information.
Employee further acknowledges that the duration and scope of the Covenants are
reasonable given the nature of this Agreement and the position Employee holds
or will hold within the Company. Employee further acknowledges that the
Covenants are included herein to induce the Company to enter into this
Agreement and that the Company would not have entered into this Agreement or
otherwise employed or continued to employ the Employee in the absence of the
Covenants. Finally, Employee also acknowledges that any breach, willful or
otherwise, of the Covenants will cause continuing and irreparable injury to the
Company for which monetary damages, alone, will not be an adequate remedy.

f.              Enforcement.

(1)           If any court
determines that the Covenants, or any part thereof, is unenforceable because of
the duration or scope of such provision, that court will have the power to modify
such provision and, in its modified form, such provision will then be
enforceable.

(2)           The parties
acknowledge that significant damages will be caused by a breach of any of the
Covenants, but that such damages will be difficult to quantify. Therefore, the
parties agree that if Employee breaches any of the Covenants, liquidated
damages will be paid by Employee in the following manner:

a.             any Company stock
options, stock appreciation rights, restricted stock units or similar equity
incentives then held by Employee, whether or not then vested, will be
immediately and automatically forfeited;

b.             any shares of
restricted stock issued by the Company, then held by Employee or her permitted
transferee and then subject to forfeiture will be immediately and automatically
forfeited; and

c.             any obligation of
the Company to provide severance pay or benefits (whether pursuant to Section
5 or otherwise) will cease.

(3)           In addition to the
remedies specified in Section 4(f)(2) and any other relief awarded by
any court, if Employee breaches any of the Covenants:

a.             Employee will be
required to account for and pay over to the Company all compensation, profits,
monies, accruals, increments or other benefits derived or received by Employee
as a result of any such breach; and

b.             the Company will be
entitled to injunctive or other equitable relief to prevent further breaches of
the Covenants by Employee.

 

 

(4)           If Employee breaches
Section 4, then the duration of the restriction therein contained will
be extended for a period equal to the period that Employee was in breach of
such restriction.

5.             Termination.
Employee’s employment by the Company may be terminated at any time. Upon
termination, Employee will be entitled to the payment of accrued and unpaid
salary through the date of such termination. All salary, commissions and
benefits will cease at the time of such termination, subject to the terms of
any benefit plans then in force or enforceable under applicable law and
applicable to Employee, and the Company will have no further liability or
obligation hereunder by reason of such termination; provided, however, that subject to Section 4(f)(2)(iii),
if Employee’s employment is terminated by the Company without Cause, Employee
will be entitled to (a) continued payment of her base salary (at the rate in
effect upon termination) for a period of 12 months; (b) a payment equal to the
average of the last three bonuses from the MedQuist Management Bonus Plan
received by Employee. In the event that there are not three full years of
employment, then the average of the last two years will apply. If less than two
years, the target bonus will be paid; and notwithstanding the foregoing, no
amount will be paid or benefit provided under this Section 5 unless and
until (x) Employee executes and delivers a general release of claims against
the Company and its subsidiaries in a form prescribed by the Company, and (y)
such release becomes irrevocable. Any severance pay or benefits provided under
this Section 5 will be in lieu of, not in addition to, any other
severance arrangement maintained by the Company.

6.             Miscellaneous.

a.             Other Agreements.
Employee represents and warrants to the Company that there are no restrictions,
agreements or understandings whatsoever to which she is a party that would
prevent or make unlawful her execution of this Agreement, that would be
inconsistent or in conflict with this Agreement or Employee’s obligations
hereunder, or that would otherwise prevent, limit or impair the performance by
Employee of her duties to the Company.

b.             Entire
Agreement; Amendment. This Agreement contains the entire agreement and
understanding of the parties hereto relating to the subject matter hereof, and
merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the employment of Employee by the
Company. This Agreement may not be changed or modified, except by an agreement
in writing signed by each of the parties hereto.

c.             Waiver. Any
waiver of any term or condition hereof will not operate as a waiver of any
other term or condition of this Agreement. Any failure to enforce any provision
hereof will not operate as a waiver of such provision or of any other provision
of this Agreement.

d.             Governing Law.
This Agreement shall be governed by, and enforced in accordance with, the laws
of the State of New Jersey without regard to the application of the principles
of conflicts of laws.

e.             Severability.
Whenever possible, each provision of this Agreement will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any 

 

 

applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability
will not affect any other provision or the effectiveness or validity of any
provision in any other jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been herein contained.

f.              Wage Claims.
The parties intend that all obligations to pay compensation to Employee be
obligations solely of the Company. Therefore, intending to be bound by this
provision, Employee hereby waives any right to claim payment of amounts owed to
her, now or in the future, from directors or officers of the Company in the
event of the Company’s insolvency.

g.             Successors and
Assigns. This Agreement is binding on the Company’s successors and assigns.

h.             Section Headings.
The section headings in this Agreement are for convenience only; they form no
part of this Agreement and will not affect its interpretation.

i.              Counterparts.
This Agreement may be executed in multiple counterparts, each of which will be
deemed to be an original and all of which together will constitute but one and
the same instrument.

7.             Definitions.
Capitalized terms used herein will have the meanings below defined:

a.             “Business”
means electronic transcription services and other health information management
solutions services businesses in which the Company or its subsidiaries are
engaged anywhere within the United States.

b.             “Cause”
means the occurrence of any of the following: (1) Employee’s refusal, willful
failure or inability to perform (other than due to illness or disability) her
employment duties or to follow the lawful directives of her superiors; (2)
misconduct or gross negligence by Employee in the course of employment; (3)
conduct of Employee involving any type of disloyalty to the Company or its
subsidiaries, including, without limitation: fraud, embezzlement, theft or
dishonesty in the course of employment; (4) a conviction of or the entry of a
plea of guilty or nolo contendere
to a crime involving moral turpitude or that otherwise could reasonably be
expected to have an adverse effect on the operations, condition or reputation
of the Company, (5) a material breach by Employee of any agreement with or
fiduciary duty owed to the Company; or (6) alcohol abuse or use of controlled
drugs other than in accordance with a physician’s prescription.

c.             “Covenants”
means the covenants set forth in Section 4 of this Agreement.  To acknowledge your agreement to and
acceptance of the terms and conditions of this Agreement, please sign below in
the space provided within five (5) days of the date of this Agreement and
return a signed copy to my attention. If the Agreement is not signed and
returned within five (5) days, the terms and conditions of this Agreement will
be deemed withdrawn.

 

 

	
  

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  MedQuist, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank W. Lavelle

  	
   

  
	
   

  	
   

  	
  Frank W. Lavelle

  
	
   

  	
   

  	
  President

  
	
  Accepted and
  Agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Linda Reino

  	
   

  	
   

  	
   

  
	
  Linda ReinoExhibit 10.23

CONFIDENTIAL

REVISED
— Hand Delivered

November 8, 2006

Mr. James Brennan

c/o MedQuist Inc.

1000 Bishops Gate Blvd.

Mount Laurel, NJ 08054

Dear Jim:

I am pleased to
offer you the position of Principal Accounting Officer, Controller and Vice
President with MedQuist Inc. (the “Company”) reporting to Kathleen Donovan,
Chief Financial Officer.  We would like
your employment start date to be on November 14, 2006 under the following
general terms and conditions of our offer.

COMPENSATION

Your base salary will be $8,958.33 paid semi-monthly, which is
equivalent to an annual amount of $215,000.00, earned on an annualized basis
and will be subject to all applicable withholdings.  Payroll is processed on or about the 10th and
25th of each month, for time worked from the 1st through the 15th of the month,
and the 16th through the last day of the month.

In addition, you will be eligible to receive a hiring bonus in the
amount of $40,000.00, which will be paid within 30 days of your start date.
This payment is subject to all applicable withholdings. This hiring bonus shall
be reimbursed to MedQuist, within 30 calendar days, if you should voluntarily
leave the company within 12 months of your hire date.

In this position, you are eligible to participate in the Company’s 2007
Management Incentive Plan and your target incentive under this Plan is 30% of
your base salary.  You will be provided
with a copy of this Plan once it is developed and approved.

When the Company creates a new Long-term Incentive Plan, your
eligibility will be considered in accordance with your position.

 

If your employment is terminated by the Company without cause, you will
be eligible for continued payment of your base salary (at the rate in effect at
the time of termination) for a period of 12 months contingent upon the
execution and delivery of a General Release of claims against the Company.
However, if Philips employs you at any time as an employee or a contractor
during the 12-month severance period, the severance payments will end.

“Cause” means the
occurrence of any of the following: (1) Employee’s refusal, willful failure or
inability to perform (other than due to illness or disability) his/her
employment duties or to follow the lawful directives of his/her superiors; (2)
misconduct or gross negligence by Employee in the course of employment; (3)
conduct of Employee involving any type of disloyalty to the Company or its
subsidiaries, including, without limitation: fraud, embezzlement, theft or
dishonesty in the course of employment: (4) a conviction of or the entry of a
plea of guilty or nolo contendere to a crime involving moral turpitude or that
otherwise could reasonably be expected to have an adverse effect on the
operations, condition or reputation of the Company, (5) a material breach by
Employee of any agreement with or fiduciary duty owed to the Company; or (6)
alcohol abuse or use of controlled drugs other than in accordance with a
physician’s prescription.

BENEFITS

You
and your qualified dependents will be eligible on the first day of employment
for coverage under the Company’s group insurance benefits. The Human Resources
department will provide information and enrollment forms for these benefits
upon your eligibility.  These benefits
have been enhanced to include the following:

1)
Company-paid Life Insurance - 2x your base salary;

2)
Short-term Disability - 6 months/100% salary continuation; and

3)
Long-term Disability - 70% base salary replacement (maximum $15,000.00 per
month).

After
one year of service, you will also be eligible to enroll in the Company’s
401(k) retirement plan and an enrollment package will be provided to you at
that time.

AT-WILL EMPLOYMENT

Your
employment with the Company is “at-will.” 
Accordingly, if you accept this offer, you may voluntarily leave the
Company at any time, or be terminated at any time, with or without reason.  This letter merely memorializes the terms of
your employment and does not create an employment agreement or contract.

RETURN OF MATERIALS

Upon
termination of your employment with the Company for any reason, you must
immediately return to the Company all documents, property, software, materials,
information and other records of the Company, and all copies thereof, within
your possession, custody or control, including but not limited to any materials
containing trade secrets or confidential information of MedQuist.

 2
 

GENERAL

Enclosed
you will find a New Hire Kit with required payroll and employment process
forms; a Confidentiality and Non-Solicitation Agreement that you must sign and
date as a requirement for employment; and a copy of the MedQuist Employee
Handbook for your use while employed with MedQuist.  Please complete and sign the forms in the New
Hire Kit, sign and date the Confidentiality and Non-Solicitation Agreement,
sign the Employee Handbook Acknowledgement form and return all of these
completed forms to our Human Resources office on or before your first day of
employment.

On
your first day of work, you will also be required to present proof of
employment eligibility and a picture ID, as explained on the Employment
Eligibility Verification form provided in your New Hire Kit.

This offer is valid until
Friday, November 10, 2006. Please sign and return one copy of this offer letter
in the envelope provided no later than Friday, November 10, 2006.  Should you have any questions about this
letter, please feel free to contact me at 856-206-4905.

Jim, we sincerely look
forward to you officially joining the MedQuist team and the continued
contributions that you will make to our organization.

Sincerely,

	
  /s/ 

  	
  Donna M. Jack

  	
   

  	
   

  
	
  Donna M. Jack 

  	
   

  	
   

  
	
  Vice President, Human Resources

  	
   

  

 

The provisions of this offer of employment have been read, are
understood, and the offer is accepted by the undersigned.

 

	
  Signature:

  	
  /s/ James
  Brennan

  	
   

  
	
   

  	
  James Brennan

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  11/10/06

  	
   

  

 

 

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]