Document:

ex10_2.htm

    Arthur
Kaplan Cosmetics, Inc.

    

    Non-Competition and
Non-Solicitation Agreement

    

    March
31, 2009

    

    This
Non-Competition and Non-Solicitation Agreement (this “Agreement”) is entered
into as of the date set forth above by and between Arthur Kaplan Cosmetics,
Inc., a Nevada corporation (the “Company”), and the undersigned individual (the
“Employee”).

    

    In
consideration of the Company and its subsidiary, Plantation Acquisition, Inc.
(the “Merger Sub”), concurrently herewith entering into an Agreement and Plan of
Merger (the “Merger Agreement”) with the above-mentioned Plantation Exploration,
Inc. (“PEI”) and its sole shareholder for the acquisition of PEI through a
merger of the Merger Sub with and into PEI (the “Merger”) and consummation of
the Merger, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Employee
hereby agree as follows:

    

    1.           By
virtue of the Employee’s experience with PEI, the Employee’s involvement with a
Person conducting or conducting on the Employee’s own activities similar to
those of the Company would represent a substantial competitive harm to the
Company and its activities, and the use of the Employee’s skills, knowledge and
information about the Company’s strategies, plans, services and other activities
can and would constitute a valuable competitive advantage over the
Company.  In view of the foregoing, the Employee agrees and covenants
that, during the Restricted Period (as hereinafter defined), the Employee shall
not directly or indirectly, whether as an employee, agent, consultant, director,
officer, investor, partner, member, shareholder, proprietor, lender or
otherwise, engage, or be associated in any way with any entity which engages,
anywhere in the Restricted Territory (as hereinafter defined), in any business
which is a Competitive Business (as hereinafter defined), provided that the
foregoing shall not prohibit the Employee from being a passive owner of not more
than five percent (5%) of the outstanding stock of a corporation subject to the
reporting requirements of the Securities Exchange Act of 1934, as
amended.

    

    2.           During
the Restricted Period, the Employee shall not, without the consent of the
Company (by action of the Board), directly or indirectly, for the Employee’s
benefit or the benefit of any other Person, (a) induce or attempt to induce any
employee or consultant of the Company or any of its Affiliates to leave the
employ of the Company or such Affiliate, (b) solicit from any customer of the
Company or any of its Affiliates, or any Person who was such a customer within
the two (2) year period prior to the start of the Restricted Period, business of
the same or of a similar nature to the business of the Company or such Affiliate
with such customer, (c) solicit from any potential customer of the Company or
any of its Affiliates who is known to the Employee business of the same or of a
similar nature to that which has been the subject of a written or oral bid,
offer, proposal or solicitation by the Company or any of its Affiliates, or of
substantial preparation with a view to making such a bid, proposal, offer or
solicitation, or (d) otherwise knowingly interfere with the relationship between
the Company or any of its Affiliates and any employee or consultant
thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.           For
purposes of this Agreement:  (a) “Affiliate” of a Person means any
other Person directly or indirectly controlling or controlled by such Person, or
under direct or indirect common control with such Person, or any other Person of
which such Person is a member, Employee, general partner, trustee, director,
manager, officer or employee,  (b) “Board” means the Board of
Directors of the Company, (c) “Competitive Business means any business that
competes or that may reasonably be construed to compete with the Company or any
of its Affiliates, including without limitation any business that itself or
through an Affiliate produces, markets, or sells products, renders services or
engages in business activities that are the same as, similar to or otherwise
competitive with those of or under development or research by the Company or any
of its Affiliates, (d) “Person” means any individual, partnership, limited
liability company, corporation (for profit or non-profit), trust, association or
unincorporated organization or governmental authority or other entity, (e)
“Restricted Period” means the two (2) year period commencing as of the date
hereof and (f) “Restricted Territory” means the United States of
America.

    

    4.           The
Employee acknowledges that any failure to carry out any obligation under this
Agreement, or a breach by the Employee of any provision hereof, will cause
immediate and irreparable damage to the Company, which damage cannot be fully
and adequately compensated at law or through an action for money
damages.  In the event of any failure to comply with this Agreement,
the Company shall be entitled to recover damages, losses, costs and liabilities
(including attorneys’ fees) resulting from the failure to comply and will also
be entitled, without the requirement of posting a bond or other security, to
equitable relief, including injunctive relief and specific
performance.  Such remedies will not be the exclusive remedies for any
breach of this Agreement, but will be in addition to all other remedies
available at law or in equity to the Company.

    

    5.           This
Agreement shall inure to the benefit of the Company, its successors and assigns,
and is binding upon the assigns, executors and administrators and other legal
representatives of the Employee.

    

    6.           This
Agreement shall be construed in accordance with and governed for all purposes by
the law of the State of Nevada, without giving effect to its conflicts of laws
principles.  In case any one or more of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Agreement, but this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.  If, moreover, any one or more of the
provisions contained in this Agreement shall for any reason be held to be
excessively broad as to time, duration, geographical scope, activity or subject,
it shall be construed by limiting and reducing it so as to be enforceable to the
extent compatible with the then applicable law.

    

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    IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first set forth above.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Company: 

                                        	Employee:
	 
      	 
	
                                          ARTHUR
      KAPLAN COSMETICS, INC.

                                        	 
	 
      	 
	
                                          By: /s/ Arthur
Kaplan

                                        	/s/
      Art Bertagnolli
	
                                          Name:
      Arthur Kaplan

                                        	Name:
      Art Bertagnolli
	
                                          Title:
      CEOEX-10.1

TRANSCRIPTION SERVICES SUBCONTRACTING AGREEMENT

THIS TRANSCRIPTION SERVICES SUBCONTRACTING AGREEMENT (this “Agreement”) dated March 31, 2009
is entered into by and between CBAY SYSTEMS & SERVICES, INC. (“CBay”) and MEDQUIST TRANSCRIPTIONS,
LTD. (“MedQuist”) and. This Agreement shall be effective upon the date of mutual execution by the
parties below (the “Effective Date”).

BACKGROUND

WHEREAS, MedQuist provides medical transcription and editing services, and CBay wishes to
obtain medical transcription and editing services from MedQuist, through MedQuist’s use of medical
transcription and editing labor located within the United States, on the terms set forth herein in
order to meet obligations to CBay’s customers pursuant to agreements between CBay and such
customers.

NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained and intending to be legally bound hereby, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1. Definitions. In this Agreement, and in the Exhibits to this Agreement,
the following terms, whether used in the singular or plural, shall have the respective meanings set
forth below:

“Customer Contractual Service Level Agreement” means the Turn Around Time,
Quality Assurance levels, customer profile requirements, service level definitions, and any
other service commitments CBay has contracted to provide to Client Facilities.

“Client Facility” means the departments and facilities of the CBay customer on
MedQuist’s DocQment Enterprise Platform (the “DEP’) that originates dictation and work types
pursuant to an agreement between the CBay customer and CBay.

“Confidential Information” means all non-public information of a confidential
or proprietary nature (whether or not specifically labeled or identified as “confidential”),
in any form or medium, that relates to the business, products, financial condition, services
or research or development of either of the parties to this Agreement and each of its
suppliers, distributors, customers, independent contractors or other business relations,
including all trade secrets, know-how, compilations of data and analyses, techniques,
systems, formulae, recipes, research, records, reports, manuals, documentation, models, data
and data bases relating thereto; inventions, innovations, improvements, developments,
methods, designs, analyses, drawings, reports and all similar or related information.
Notwithstanding the foregoing, Confidential Information does not include any information
that: (i) is or becomes generally available to the public other than as a result of an
unauthorized disclosure by one of the parties hereto; or (ii) was within the receiving
party’s possession or becomes available to the receiving party, in either case, on a
non-confidential basis from a source other than the furnishing party, provided that such
source is not bound by a confidentiality agreement with the furnishing party or otherwise
prohibited from transmitting the information to the receiving party. Confidential
Information shall include, without limitation, the parties content (as defined in Section
5.1 herein).

“EPHI” means “Electronic Protected Health Information” as that term is defined
by 45 CFR §164.513.

“Force Majeure Event” means any cause beyond the reasonable control of the
non-performing party to this Agreement including, without limitation, acts of God or public
enemy, fires, floods, storms, tornadoes, earthquakes, riots, strikes, blackouts, telephone
outage, acts of terrorism, war or war operations, restraints of government, delays by
suppliers and/or manufacturers, governmental acts, staff unavailability due to illness or
airline flight delay or other causes which cannot with reasonable diligence be controlled or
prevented by the non-performing party.

“HIPAA” means the Health Insurance Portability and Accountability Act of 1996.

“PHI” means Protected Health Information as defined in 45 CFR §164.501.

ARTICLE II

SERVICES

Section 2.1 Services. MedQuist shall provide medical transcription, editing and
related services to CBay, through MedQuist’s use of medical transcription and editing labor located
within the United States, as set forth in this Agreement (the “Services”). For the purpose of
providing the Services, voice and/or data files will be securely imported into MedQuist’s DocQment
Enterprise Platform (“DEP”) for processing by MedQuist. MedQuist shall comply with each Customer
Contractual Service Level Agreement specific to a Client Facility covered under this Agreement. In
those circumstances under this Agreement where CBay fully subcontracts all of CBay’s operational
performance obligations pursuant to a Customer Contractual Service Level Agreement, MedQuist shall
assume full responsibility for the account management, customer service, implementation services
and technical support. Notwithstanding the foregoing, CBay agrees and acknowledges that, with
respect to any Client Facility that MedQuist refers to CBay for the provision of Services under
this Agreement, MedQuist shall have the right to end the provision of Services for such Client
Facility under this Agreement and enter into a separate, direct agreement between such Client
Facility and MedQuist.

Section 2.2 Order Form. Commencement of Services for any Client Facility in
accordance with a Customer Contractual Service Level Agreement shall be accomplished by mutual
execution of an Order Form in the form attached hereto as Exhibit 1.

ARTICLE III

FEES

Section 3.1 CBay shall pay MedQuist the following fees for the Services provided by MedQuist
hereunder: ninety-eight percent (98%) of the net monthly fees invoiced by CBay to a Client
Facility pursuant to a Customer Contractual Service Level Agreement for Services provided by
MedQuist. The calculation shall be based on the gross amount due to CBay after subtraction of (a)
CBay’s payment or credit of any group purchasing organization fees or administrative fees, and (b)
contractual service-related penalties required under an applicable Customer Contractual Service
Level Agreement. 

MedQuist shall provide CBay with the billing data necessary for CBay to generate an
invoice for the work performed by MedQuist to a Client Facility under this Agreement. CBay will in
turn generate an invoice to the Client Facility consistent with the billing data from MedQuist
within three (3) calendar days of receipt of the billing data from MedQuist. A Client Facility’s
payment to CBay for an applicable invoice is a condition precedent to CBay’s payment obligation to
MedQuist for the work performed by MedQuist to such Client Facility as covered by the applicable
invoice. CBay will make payment to MedQuist within fifteen (15) days of receipt of payment by the
Client Facility.

Section 3.2 In those circumstances under this Agreement where CBay fully subcontracts all of
CBay’s operational performance obligations pursuant to a Customer Contractual Service Level
Agreement, CBay shall be responsible for invoicing, collections and dispute resolution with respect
to a Client Facility. MedQuist agrees that it shall provide CBay with reasonable assistance and
cooperation with such invoicing, collections and dispute resolution efforts.

ARTICLE IV

HIPAA COMPLIANCE

Section 4.1 MedQuist will:

a) Not use or further disclose any PHI other than as permitted or required by this
Agreement, an applicable Customer Contractual Service Level Agreement or as required by law;

b) Report to CBay’s Corporate Director of Information Privacy and Security any use or
disclosure of the PHI not provided for by this Agreement within forty-eight (48) hours of
becoming aware of the unauthorized use or disclosure;

c) Have procedures in place for mitigating, to the maximum extent practicable, any
deleterious effects from the use or disclosure of PHI in a manner contrary to this
Agreement;

d) Ensure that any individuals or entities who assist MedQuist in fulfilling its
obligations under this Agreement agree, in writing, to substantially the same restrictions
and conditions that apply to MedQuist with respect to such PHI. MedQuist shall obtain
reasonable assurances from any such individuals or entities that: (i) the information being
disclosed will be held confidentially and used or further disclosed only as required by law,
(ii) the individuals or entities will use the appropriate Administrative, Physical and
Technical Safeguards to prevent the unauthorized use or disclosure of the PHI and EPHI; and
(iii) the individuals or entities will immediately notify MedQuist of any instance of a
breach of any of the PHI terms set forth herein;

e) Ensure that all individuals and entities who assist MedQuist in fulfilling its
obligations under this Agreement are or shall be appropriately informed of the terms of this
Agreement and are under a legal obligation, by contract or otherwise, sufficient to enable
each individual and entity to fully comply with all provisions of this Agreement. MedQuist
will also ensure that all individuals and entities who assist MedQuist in fulfilling its
obligations under this Agreement have signed Protected Health Information Confidentiality
Agreements;

f) Make available to CBay such information as CBay may require to fulfill CBay’s
obligations to provide access to, provide a copy of, and account for disclosures with
respect to PHI pursuant to HIPAA and the HIPAA Regulations, including, but not limited to,
45 CFR §164.524 and §164.528;

g) Make CBay’s PHI available as CBay may require to fulfill CBay’s obligations to amend
PHI pursuant to HIPAA and the HIPAA Regulations, including but not limited to 45 CFR
§164.526. MedQuist shall, as directed by CBay, incorporate any amendments to CBay’s PHI
into copies of such PHI maintained by MedQuist;

h) Make available the information required to provide an accounting of disclosures in
accordance with 45 CFR §164.528;

i) Make its internal practices, books, and records relating to the use and disclosure
of PHI received from, or created or received by MedQuist on behalf of, CBay available to the
Secretary of the U.S. Department of Health and Human Services for purposes of determining
CBay’s or a CBay customer’s compliance with HIPAA;

j) Upon termination or expiration of this Agreement, or any time during the Term of
this Agreement, with respect to PHI that MedQuist maintains in any form, recorded on any
medium or stored in any storage system, including PHI retained or stored by individuals and
entities who assist MedQuist in fulfilling its obligations under this Agreement, at CBay’s
direction and if feasible, return to CBay or destroy all such PHI. A senior officer of
MedQuist shall certify in writing to CBay, within thirty (30) days after termination or
other expiration of this Agreement, that all PHI has been returned or disposed of as
provided above and that MedQuist no longer retains any such PHI in any form;

k) If return or destruction of PHI is infeasible, notify CBay in writing within thirty
(30) days after termination or other expiration of this Agreement. Such notification shall
include: (i) a statement that MedQuist has determined that it is infeasible to return or
destroy the PHI in its possession; and (ii) the specific reasons for such determination. In
addition to providing such notification, MedQuist shall certify within such thirty (30) day
period that it will, and will require individuals and entities who assist MedQuist in
fulfilling its obligations under this Agreement to, extend any and all protections,
limitations and restrictions contained in this Agreement to any PHI retained after
termination of this Agreement and to limit any further uses and/or disclosures to those
purposes that make the return or destruction of the PHI infeasible;

l) Implement administrative, physical and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity and availability of EPHI that MedQuist
creates, receives, maintains or transmits on behalf of the CBay;

m) Report to CBay’s Director of Information Privacy and Security within forty-eight
(48) hours, any “security incident” of which it becomes aware, as such term is defined in
the HIPAA Security Rule;

n) Ensure that any individuals and entities who assist MedQuist in fulfilling its
obligations under this Agreement to whom MedQuist provides EPHI agree in writing, to
implement reasonable and appropriate safeguards to protect EPHI as required herein; and

o) Upon request, provide to CBay a list of names of any individuals or entities used to
outsource CBay’s transcription and evidence of written assurances from those individuals or
entities (as required in 4.1 (d)) that they will agree to substantially the same
restrictions and conditions that apply to MedQuist with respect to such PHI.

Section 4.2 MedQuist, in its capacity as Business Associate (as that term is defined in the
HIPAA Regulations) to CBay, shall be permitted to use and disclose PHI in a manner that would not
violate the requirements of the HIPAA Regulations as follows: (a) for the proper management and
administration of MedQuist; (b) to carry out the legal responsibilities of MedQuist and to fulfill
MedQuist’s duties and responsibilities under this Agreement including, in part, disclosure to
individuals and entities who assist MedQuist in fulfilling its obligations under this Agreement;
and (c) to provide data aggregation services relating to the health care operations of CBay.

Section 4.3 Notwithstanding anything to the contrary set forth herein, CBay may immediately
terminate this Agreement if MedQuist has breached a material term of this Article IV. CBay may
exercise said right to terminate this Agreement by providing MedQuist with written notice of its
intent to terminate, specifying the material breach of this Agreement that provides the basis for
termination. Such termination shall be effective immediately or at such date as specified in the
notice.

Section 4.4 MedQuist acknowledges that CBay is not conveying any right or title in the PHI to
MedQuist.

ARTICLE V

TERM AND TERMINATION

Section 5.1 Term. This Agreement shall be effective on the Effective Date and
terminate three (3) years from the Effective Date (the “Expiration Date”), unless sooner terminated
by the parties in accordance with this Article V.

Section 5.2 Termination for Convenience. Both CBay and MedQuist shall have the right
to terminate this Agreement with or without cause at any time upon six (6) months’ prior written
notice to the other party to this Agreement.

Section 5.3 Termination for Material Default.

a) CBay may terminate this Agreement effective immediately upon written notice if
MedQuist: (i) breaches any material obligation under this Agreement and fails to cure such
breach within thirty (30) days written notice to MedQuist specifying in reasonable detail
the nature of the breach; or (ii) (a) files a voluntary petition for bankruptcy, (b) is
adjudicated bankrupt, (c) has a court assume jurisdiction of its assets under a federal
reorganization act, (d) becomes insolvent or suspends business, or (e) makes an assignment
of its assets for the benefit of its creditors.

b) MedQuist may terminate this Agreement effective immediately upon written notice if
CBay: (i) breaches any material obligation under this Agreement and fails to cure such
breach within thirty (30) days written notice to CBay specifying in reasonable detail the
nature of the breach; or (ii) (a) files a voluntary petition for bankruptcy, (b) is
adjudicated bankrupt, (c) has a court assume jurisdiction of its assets under a federal
reorganization act, (d) becomes insolvent or suspends business, or (e) makes an assignment
of its assets for the benefit of its creditors.

Section 5.4 Effect of Termination. Termination of this Agreement shall not relieve
the parties of any obligation accruing prior to such termination, and the provisions of this
Section 5.4 and Articles IV, V, VI, VII, VIII and IX hereof shall survive the termination of this
Agreement. Any termination of this Agreement shall be without prejudice to the rights of either
party against the other accrued or accruing under this Agreement prior to termination.

ARTICLE VI

INDEMNIFICATION AND LIMITATION OF LIABILITY

Section 6.1 Indemnification Obligations; Limitation of Liability.

a) MedQuist hereby indemnifies and holds the CBay harmless from and against any and all
liability, loss, damage, claim or cause of action, and expenses connected therewith,
including, without limitation, reasonable attorney’s fees and expenses, for bodily injury or
damage to real or tangible personal property, to the extent caused directly or indirectly by
the MedQuist, its employees or agents.

b) CBay hereby indemnifies and holds the MedQuist harmless from and against any and all
liability, loss, damage, claim or cause of action, and expenses connected therewith,
including, without limitation, reasonable attorney’s fees and expenses, for bodily injury or
damage to real or tangible personal property, to the extent caused directly or indirectly by
the CBay, its employees or agents.

c) EXCEPT FOR: (A) INDEMNIFICATION OBLIGATIONS SPECIFIED UNDER THIS AGREEMENT OR (B)
BREACHES OF CONFIDENTIALITY UNDER ARTICLE VII, IN NO EVENT SHALL MEDQUIST BE LIABLE TO CBAY
FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOST
PROFITS OR LOSS OF DATA) IN ANY WAY ARISING OUT OF THIS AGREEMENT OR ANY ATTACHMENT, OR
PERFORMANCE THEREUNDER, HOWEVER CAUSED, UNDER A CLAIM OF ANY TYPE OR NATURE, BASED ON ANY
THEORY OF LIABILITY (INCLUDING CONTRACT, TORT OR STRICT LIABILITY) EVEN IF ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR (A) INDEMNIFICATION OBLIGATIONS SPECIFIED UNDER
THIS AGREEMENT OR (B) BREACHES OF CONFIDENTIALITY UNDER ARTICLE VII, IN NO EVENT SHALL
MEDQUIST’S LIABILITY FOR DAMAGES TO CBAY EXCEED THE FEES PAID FOR THE SERVICES INVOLVED IN
THE DAMAGE.

Section 6.2 The obligations to indemnify, defend and hold harmless set forth above in this
Article VI will not apply to the extent the indemnified party was responsible for giving rise to
the matter upon which the claim for indemnification is based and will not apply unless the
indemnified party (i) promptly notifies the indemnifying party of any matters in respect of which
the indemnity may apply and of which the indemnified party has knowledge; (ii) gives the
indemnifying party full opportunity to control the response thereto and the defense thereof,
including any agreement relating to the settlement thereof, provided that the indemnifying party
shall not settle any such claim or action without the prior written consent of the indemnified
party (which shall not be unreasonably withheld or delayed); and (iii) cooperates with the
indemnifying party, at the indemnifying party’s cost and expense in the defense or settlement
thereof. The indemnified party may participate, at its own expense, in such defense and in any
settlement discussions directly or through counsel of its choice on a monitoring, non-controlling
basis.

ARTICLE VII

CONFIDENTIALITY AND NONSOLICITATION

Section 7.1 Confidentiality. MedQuist and CBay acknowledge that Confidential
Information is to be considered highly confidential. Each party shall use Confidential Information
disclosed to it by or on behalf of the other party only for the purposes contemplated by this
Agreement and shall not disclose such Confidential Information to any third party without the prior
written consent of the disclosing party. The foregoing obligations shall survive the expiration or
termination of this Agreement. These obligations shall not apply to Confidential Information that:

a) Is known by the receiving party at the time of its receipt, and not through a prior
disclosure by the disclosing party, as documented by business records;

b) Is published at the time of disclosure, or thereafter becomes published or otherwise
part of the public domain without breach of this Agreement by the receiving party;

c) Is subsequently disclosed to the receiving party by a third party who has the right
to make such disclosure;

d) Is developed by the receiving party independently of Confidential Information or
other information received from the disclosing party and such independent development is
properly documented by the receiving party; or

e) Is required to be disclosed by law or court order, provided that notice is promptly
delivered to the other party in order to provide an opportunity to seek a protective order
or other similar order with respect to such Confidential Information and thereafter
discloses only the minimum information required to be disclosed in order to comply with the
request, whether or not a protective order or other similar order is obtained by the other
party.

Section 7.2 Non-Solicitation. So long as this Agreement is in effect and for a period
of twelve (12) months thereafter, MedQuist and CBay shall not — without the prior written consent
of the other party — solicit, hire or engage any person who during the Term of this Agreement is or
has been an employee, consultant, or transcriptionist of the other party.

ARTICLE VIII

RECORDS

Section 8.1 MedQuist shall maintain records with respect to the performance of its obligations
under this Agreement. All such records shall be available for inspection, audit and copying by
CBay and its representatives and agents, including CBay’s auditors, at CBay’s cost and expense upon
reasonable request during normal business hours. All such records shall be maintained during the
Term of this Agreement, or such longer period as may be required by relevant Law.

ARTICLE IX

MISCELLANEOUS

Section 9.1 Assignment, Subcontracting. Notwithstanding anything to the contrary
contained herein, neither this Agreement nor any or all of the rights and obligations of a party
hereunder shall be assigned, delegated, sold, transferred, sublicensed, subcontracted (except as
otherwise provided herein) or otherwise disposed of, by operation of law or otherwise, to any third
party without the prior written consent of the other party, and any attempted assignment,
delegation, sale, transfer, sublicense, subcontract or other disposition, by operation of law or
otherwise, of this Agreement or of any rights or obligations hereunder contrary to this section
shall be a material breach of this Agreement by the attempting party, and shall be void and without
force or effect; provided, however, that CBay may, without such consent, assign this Agreement and
its rights and obligations hereunder: (a) in connection with the transfer or sale of all or
substantially all of its assets related to, or (b) in the event of its merger or consolidation or
change in control or similar transaction.

Section 9.2 Force Majeure. The parties shall be excused from performing hereunder in
the event of any Force Majeure Event, provided that the non-performing party cannot reasonably
circumvent the delay through the use of commercially reasonable alternate sources, workaround plans
or other means. In such event the non-performing party shall be excused from further performance or
observance of the obligation(s) so affected for as long as such circumstances prevail and such
party continues to use commercially reasonable efforts to recommence performance or observance
whenever and to whatever extent possible without delay. Any party so prevented, hindered or delayed
in its performance shall immediately notify the party to whom performance is due by telephone (to
be confirmed in writing within five (5) days of the inception of such delay) and reasonably
describe the circumstances of the Force Majeure Event.

Section 9.3 Injunctive Relief; Arbitration; and Governing Law.

a) Injunctive Relief. The parties to this Agreement acknowledge and agree that
remedies at law are inadequate in the event of any breach or threatened breach by any party
of its agreements and obligations as set forth in Article VII of this Agreement.
Notwithstanding Section 9.3(b), in addition to any other remedy which may be available, the
non-breaching party shall be entitled to petition for injunctive and/or other equitable
relief restraining the breach or threatened breach of the provisions and/or obligations in
Article VII of this Agreement.

b) Arbitration; Governing Law. Except as set forth in Section 9.3(a), any
controversy or claim arising out of or relating to this Agreement, or the breach thereof,
shall be settled by arbitration administered by the American Arbitration Association in
accordance with its Commercial Arbitration Rules, and judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. This Agreement shall
be governed by and construed, and the legal relations between the parties shall be
determined in accordance with the laws of the State of New Jersey, excluding application of
any conflict of laws principles, and the parties irrevocably waive all rights to trial by
jury for any litigation between them related to this Agreement. Client hereby consents to
the jurisdiction of any state or federal court of competent jurisdiction in the State of New
Jersey for any litigation between the parties related to this Agreement.

Section 9.4 Waiver. Any delay or failure in enforcing a party’s rights under this
Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of
such party’s rights to the future enforcement of its rights under this Agreement, nor operate to
bar the exercise or enforcement thereof at any time or times thereafter, excepting only as to an
express written and signed waiver as to a particular matter for a particular period of time.

Section 9.5 Independent Relationship. The relationship established between CBay and
MedQuist under this Agreement is that of independent contractors and nothing contained in this
Agreement will be deemed to establish or otherwise create a relationship of principal and agent,
franchisor and franchisee, joint venturers or partnership between them. MedQuist’s employees are
not and shall not be deemed to be employees of CBay. MedQuist shall be solely responsible for the
payment of all compensation to its employees, including provisions for employment taxes, workmen’s
compensation and any similar taxes associated with employment of MedQuist’s personnel. Neither
party nor any of its agents or employees will have any right or authority to assume or create any
obligations of any kind, whether express or implied, on behalf of the other party. All financial
obligations associated with each respective party’s business are the sole responsibility of such
party.

Section 9.6 Entire Agreement; Amendment. This Agreement including any Exhibits and
Schedules hereto, sets forth the complete and final agreement and all the covenants, promises,
agreements, warranties, representations, conditions and understandings between the parties hereto
and supersedes and terminates all prior agreements, writings and understandings between the parties
with respect to the subject matter hereof. The parties agree that there are no covenants,
promises, agreements, warranties, representations, conditions or understandings, either oral or
written, between the parties other than as are set forth herein and therein. No subsequent
alteration, amendment, change or addition to this Agreement shall be binding upon the parties
unless reduced to writing and signed by an authorized officer of each party.

Section 9.7 Notices. Each notice required or permitted to be given or sent under this
Agreement shall be given by facsimile transmission (with confirmation copy by registered
first-class mail), by registered or overnight courier (return receipt requested), or by electronic
mail (with confirmation of receipt) to the parties at the contact information indicated below.

	 
	If to CBay:

	CBay Systems & Services, Inc
2661 Riva Road, Bldg 800
Annapolis, MD 21401
Attention: Managing Director

	with a copy to:

	If to MedQuist:

	MedQuist Transcriptions, Ltd.
1000 Bishops Gate Boulevard, Suite 300
Mt. Laurel, NJ 08054-4632
Facsimile No.: 856.206.4215
Attention: President

	with a copy to:

	MedQuist Transcriptions, Ltd.
1000 Bishops Gate Boulevard, Suite 300
Mt. Laurel, NJ 08054-4632
Facsimile No.: 856.206.4215
Attention: Chief Legal Officer

Any such notice shall be deemed to have been received on the earlier of the date actually received
or the date five (5) days after the same was posted or sent. Either party may change its address
or its facsimile number by giving the other party written notice, delivered in accordance with this
section.

Section 9.8 Severability. If any provision of this Agreement is declared invalid or
unenforceable by a court having competent jurisdiction, it is mutually agreed that this Agreement
shall continue in effect except for the part declared invalid or unenforceable by order of such
court. The parties shall consult and use their best efforts to agree upon a valid and enforceable
provision which shall be a reasonable substitute for such invalid or unenforceable provision in
light of the intent of this Agreement.

Section 9.9 Counterparts. This Agreement shall become binding when any one or more
counterparts hereof, individually or taken together, have been executed on behalf of each of the
parties hereto. This Agreement may be executed in any number of counterparts and by facsimile,
each of which shall be an original as against any party whose signature appears thereon, but all of
which taken together shall constitute but one and the same instrument.

1

IN WITNESS WHEREOF, CBay and MedQuist have caused this Agreement to be executed by their duly
authorized officers as of the day and year first above written.

	 	 	 
	CBAY SYSTEMS & SERVICES, INC.	 	MEDQUIST TRANSCRIPTIONS, LTD.
	By: /s/ Jason Kolinoski

	 	By: /s/ Peter Masanotti
	 

	 	 
	Name: Jason Kolinoski

Title: Chief Operating Officer

Date: March 31, 2009

	 	Name: Peter Masanotti

Title: President & CEO

Date: March 31, 2009

[Signature page to Services Agreement by and between MedQuist Transcriptions, Ltd. and MedQuist]

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

EXHIBIT 1

ORDER FORM

The following Order Form is issued pursuant to the terms of Section 2.2 in the Transcription
Services Subcontracting Agreement (the “Agreement”) executed by and between CBAY SYSTEMS &
SERVICES, INC. (“CBay”) and MEDQUIST TRANSCRIPTIONS, LTD. (“MedQuist”). The effective date of this
Order Form shall be the date of mutual execution by the parties below. All terms and conditions of
the Agreement shall apply to this Order Form unless expressly stated otherwise. Capitalized terms
not otherwise defined in this Order Form shall have the meanings given to them in the Agreement.

Customer Account Name:

Physical Address:

Billing Address:

Contact Person:

Phone Number:

Fax Number:

Commencement Date: The date that is the earlier of the first of the month or the sixteenth of the
month following the date on which this Order Form is fully executed by the parties. MedQuist shall
not be obligated to commence or continue services hereunder until this fully executed Order Form is
received by MedQuist.

Term: The term of this Order Form shall begin on the Commencement Date and continue until the
termination or expiration of the contractual relationship between CBay and customer, unless earlier
terminated in accordance with the Transcription Services Subcontracting Agreement.

Services Description and Customer Fees: As described in the attached Customer Contractual Service
Level Agreement, contract, agreement, or additional documents between CBay and customer.

	 	 	 
	CBAY SYSTEMS & SERVICES, INC.	 	MEDQUIST TRANSCRIPTIONS, LTD.
	By:

	 	By:
	 

	 	 
	Name:

	 	Name:
	 

	 	 
	Title:

	 	Title:
	 

	 	 
	Date:

	 	Date:
	 

	 	 

2

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