Document:

Exhibit 10.3

 

Veritas DGC Inc.

 

 

October 24, 2005

 

Mr. Stephen J. Ludlow

2719 Lakeside Village Drive

Missouri City, Texas 77459

 

Re:                               Amended
and Restated Employment Agreement dated October 22, 2001, by and between
Veritas DGC Inc. and Stephen J. Ludlow, as amended by Amendment No. 1
dated November 14, 2001 (collectively, the “Employment Agreement”)

 

Dear Steve:

 

As we have discussed, the Board of Directors of Veritas DGC Inc. has
deemed it in the best interest of the Company to reduce the number of employee
directors on the board to one.  Owing to
that decision, you have not been nominated for re-election as a director at the
next Annual Stockholders Meeting which is currently scheduled for December 15,
2005.  As a result, effective with the
election of directors to be held at the annual meeting, you will no longer be a
director of the Company nor will you retain the title “vice chairman.”  The Company acknowledges and agrees that the
occurrence of these events would give you the option, should you choose to
exercise it, to terminate your Employment Agreement with Good Reason and
receive the benefits described in Section 6(d) of that
agreement.  (Capitalized terms used in this letter and not
otherwise defined herein will have the meanings given such terms in the
Employment Agreement).

 

I have requested that you remain in our employ beyond the annual
meeting to assist us in an orderly transition of your current duties, primarily
in the area of investor relations, and you have agreed to do so.  We have mutually agreed that your employment
beyond the annual meeting will be on the following terms and conditions and
that the Employment Agreement is modified and amended accordingly:

 

a)              Immediately
following the next election of directors, your title will change to “executive
vice president.”  You will continue to
report to me and you will provide advice, consultation and services to the
Company primarily in the area of investor relations.

 

b)             You will continue to
serve as Executive Vice President and the Employment Agreement, as amended by
this letter agreement, will remain in effect until March 31, 2006 or such

 

 

later date as we mutually agree.  The Company may terminate the Employment
Agreement, as amended by this letter agreement, prior to March 31, 2006
for any or no reason on two weeks’ written notice.  The Employment Agreement, as amended by this
letter agreement, will terminate immediately in the event of your death.  Termination of the Employment Agreement, as
amended by this letter agreement, may only occur as specified in this paragraph
b).  The effective date of any
termination under this paragraph b) will be the “Date of Termination” and will
supersede the definition of that term in the Employment Agreement.

 

c)              Your Base Salary
will remain at $280,000.

 

d)             You will participate
in the Global Management Incentive Plan for fiscal year 2006.  To earn incentive compensation under that
plan, the Company must meet its financial goals and you must meet your business
goal (your business goal in this case is to insure an orderly transition of
your investor relations duties).  Your
incentive compensation, if earned, will be calculated in accordance with the
Global Management Incentive Plan and will be prorated for the time you are
actually employed; provided, however, that if the Company terminates prior to March 31,
2006 or in the event of your death prior to that date, your incentive
compensation will be calculated and paid to you as if you were employed through
March 31, 2006 and met your business goal. 
Incentive payments, if earned, will be paid to you at the time executive
officers of the Company are paid and will be paid to you regardless of whether
you are an employee of the Company at the time.

 

e)              On October 17,
2005, you were granted options in accordance with the Company’s 2006 long term
equity-based incentive plan.  We have
mutually agreed that you will not receive the right to earn restricted shares
under that plan.  In addition, should we
grant additional equity compensation to other officers of the Company prior to
the Date of Termination, you will not be entitled to participate in that grant.

 

f)                On the Date of
Termination, regardless of the reason for such termination, and provided that
no Change in Control has then occurred, the Company will pay or provide to you
those benefits described in Section 6(d) of the Employment Agreement
with the following exceptions:  your
Severance Payment will be paid in a lump sum; and your payment for COBRA
benefits will be paid in a lump sum as a Section 6(d)(4)(ii) Payment.  In addition, those stock options you hold as
of the Date of Termination will continue to vest on the schedule set forth
in the applicable stock grant, will be exercisable for the period specified in
the applicable stock grant agreement, and will otherwise be treated under the
applicable stock grant agreement and plan documents as if you continued to be
an employee of Company after the Date of Termination.  A schedule showing the stock options you
currently hold is attached to this letter. 
In addition to the above payments, if the Company terminates the
Employment Agreement, as modified by this letter agreement, for any reason
prior to March 31, 2006 or in the event of your death prior to March 31,
2006, you will be paid an amount equal to your Base Salary through and
including March 31, 2006, and your incentive compensation (as described in
paragraph d) above) will be calculated and paid to you as if you were employed
through March 31, 2006 and met your business goal.

 

2

 

g)             In the event of a
Change in Control prior to the Date of Termination or if discussions commence
with a third person prior to the Date of Termination that ultimately result in
a Change in Control, you will then be entitled to those benefits described in Section 6(e) of
the Employment Agreement.

 

h)             The “Non-Compete
Period,” as used in the Employment Agreement, will include a period of
twenty-four months following the Date of Termination regardless of the reason
for termination.

 

i)                 This letter
agreement is intended to serve as a written amendment of the terms of the
Employment Agreement and the terms hereof have been approved by the
Compensation Committee of the Board of Directors acting under delegated
authority of the Board of Directors.  In
the event of a conflict between the terms of this letter agreement and the
Employment Agreement, the terms of this letter agreement will prevail.

 

j)                 This letter
agreement is also intended to serve as a written amendment to each of the stock
option grant agreements issued to you to the extent specified in paragraph f)
above.  In the event of a conflict
between the terms of this letter agreement and the terms of any such stock
grant agreement, the terms of this letter agreement will prevail.

 

I believe this letter accurately describes our agreement.  Please confirm your agreement by signing both
copies of this letter in the space indicated below and return one signed
original to me.

 

 

	
  Yours very truly,

  
	
   

  
	
  /s/ THIERRY PILENKO

  	
   

  
	
   

  
	
  Thierry Pilenko

  
	
  Chairman & Chief Executive Officer

  
	
   

  
	
   

  
	
  ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
  /s/ STEPHEN J. LUDLOW

  	
   

  
	
  Stephen J. Ludlow

  
	
   

  
	
  Date:

  	
  October 24, 2005

  	
   

  
	
   

  
			

 

3

 

	
  Grant Detail
  Report

  	
   

  	
  Veritas DGC Inc.

  

 

From        /  /   to   /  /        

As of 10/19/2005

 

Stephen J. Ludlow

2719 Lakeside Village Drive

Missouri City, TX 77459  
US

 

	
  Grant

  	
   

  	
  Expiration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Option

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  	
  Plan ID

  	
   

  	
  Grant Type

  	
   

  	
  Granted

  	
   

  	
  Price

  	
   

  	
  Outstanding

  	
   

  	
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11/11/1992

  	
   

  	
  11/11/2000

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  26,667

  	
   

  	
  $

  	
  13.500000

  	
   

  	
  0

  	
   

  	
  26,667

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Data

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4/1/1998

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,000

  	
   

  	
  $

  	
  50.562500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3/7/2000

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  23,667

  	
   

  	
  $

  	
  24.875000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9/8/1995

  	
   

  	
  9/8/2005

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  16,000

  	
   

  	
  $

  	
  5.250000

  	
   

  	
  0

  	
   

  	
  16,000

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Data

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3/13/1998

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  16,000

  	
   

  	
  $

  	
  42.812500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/11/1997

  	
   

  	
  3/11/2007

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  43,225

  	
   

  	
  $

  	
  19.375000

  	
   

  	
  27,016

  	
   

  	
  43,225

  	
   

  	
  27,016

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Data

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3/23/2000

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  16,209

  	
   

  	
  $

  	
  26.250000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/11/1999

  	
   

  	
  3/11/2009

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  24,743

  	
   

  	
  $

  	
  10.710000

  	
   

  	
  0

  	
   

  	
  24,743

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Data

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3/6/2001

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  12,371

  	
   

  	
  $

  	
  34.355700

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  572

  	
   

  	
  $

  	
  19.830000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  4,800

  	
   

  	
  $

  	
  19.600000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.510000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  200

  	
   

  	
  $

  	
  19.500000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,400

  	
   

  	
  $

  	
  19.440000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.430000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  500

  	
   

  	
  $

  	
  19.400000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,400

  	
   

  	
  $

  	
  19.440000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.390000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.380000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  200

  	
   

  	
  $

  	
  19.380000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.380000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,200

  	
   

  	
  $

  	
  19.370000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.330000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  200

  	
   

  	
  $

  	
  19.330000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,300

  	
   

  	
  $

  	
  19.330000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/13/2000

  	
   

  	
  3/13/2010

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  15,179

  	
   

  	
  $

  	
  26.187500

  	
   

  	
  15,179

  	
   

  	
  15,179

  	
   

  	
  15,179

  	
   

  

 

1

 

	
  Grant Detail
  Report

  	
   

  	
  Veritas DGC Inc.

  

 

From        /  /   to   /  /        

As of 10/19/2005

 

Stephen J. Ludlow

2719 Lakeside Village Drive

Missouri City, TX 77459  
US

 

	
  Grant

  	
   

  	
  Expiration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Option

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  	
  Plan ID

  	
   

  	
  Grant Type

  	
   

  	
  Granted

  	
   

  	
  Price

  	
   

  	
  Outstanding

  	
   

  	
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/6/2001

  	
   

  	
  3/6/2011

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  11,555

  	
   

  	
  $

  	
  34.400000

  	
   

  	
  11,555

  	
   

  	
  11,555

  	
   

  	
  11,555

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8/6/2002

  	
   

  	
  8/6/2007

  	
   

  	
  1992EMP

  	
   

  	
  Non-Qualified

  	
   

  	
  36,271

  	
   

  	
  $

  	
  10.960000

  	
   

  	
  9,068

  	
   

  	
  36,271

  	
   

  	
  9,068

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Data

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/4/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  7,400

  	
   

  	
  $

  	
  19.000000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/4/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  400

  	
   

  	
  $

  	
  19.020000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/4/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  800

  	
   

  	
  $

  	
  19.050000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/4/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  200

  	
   

  	
  $

  	
  19.080000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/4/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,000

  	
   

  	
  $

  	
  19.100000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  735

  	
   

  	
  $

  	
  19.770000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  300

  	
   

  	
  $

  	
  19.750000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.730000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  100

  	
   

  	
  $

  	
  19.680000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  1,200

  	
   

  	
  $

  	
  19.670000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  5,900

  	
   

  	
  $

  	
  19.500000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7/5/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  2,000

  	
   

  	
  $

  	
  28.300000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7/5/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  2,000

  	
   

  	
  $

  	
  28.250000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7/5/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  2,000

  	
   

  	
  $

  	
  28.150000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7/5/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,068

  	
   

  	
  $

  	
  28.500000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3/3/2003

  	
   

  	
  3/3/2008

  	
   

  	
  Omnibus

  	
   

  	
  Non-Qualified

  	
   

  	
  24,700

  	
   

  	
  $

  	
  7.950000

  	
   

  	
  6,175

  	
   

  	
  18,525

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/2/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  350

  	
   

  	
  $

  	
  19.550000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/2/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  400

  	
   

  	
  $

  	
  19.540000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/2/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  300

  	
   

  	
  $

  	
  19.530000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/2/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  10,800

  	
   

  	
  $

  	
  19.500000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/29/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  600

  	
   

  	
  $

  	
  27.250000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/29/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  2,400

  	
   

  	
  $

  	
  27.110000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/29/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,175

  	
   

  	
  $

  	
  27.380000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Options
  Becoming Exercisable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6,176 on 3/3/2006

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																					

 

2

 

	
  Grant Detail
  Report

  	
   

  	
  Veritas DGC Inc.

  

 

From        /  /   to   /  /        

As of 10/19/2005

 

Stephen J. Ludlow

2719 Lakeside Village Drive

Missouri City, TX 77459  
US

 

	
  Grant

  	
   

  	
  Expiration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Option

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  	
  Options

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  	
  Plan ID

  	
   

  	
  Grant Type

  	
   

  	
  Granted

  	
   

  	
  Price

  	
   

  	
  Outstanding

  	
   

  	
  Vested

  	
   

  	
  Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1/6/2004

  	
   

  	
  1/6/2009

  	
   

  	
  Omnibus

  	
   

  	
  Non-Qualified

  	
   

  	
  24,700

  	
   

  	
  $

  	
  11.190000

  	
   

  	
  12,350

  	
   

  	
  12,350

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Type

  	
   

  	
   

  	
   

  	
  Options

  	
   

  	
  Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  275

  	
   

  	
  $

  	
  19.350000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  600

  	
   

  	
  $

  	
  19.330000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  800

  	
   

  	
  $

  	
  19.300000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  800

  	
   

  	
  $

  	
  19.280000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/7/2004

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,700

  	
   

  	
  $

  	
  19.280000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/30/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,175

  	
   

  	
  $

  	
  27.500000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6/30/2005

  	
   

  	
  Exercise

  	
   

  	
   

  	
   

  	
  3,000

  	
   

  	
  $

  	
  27.650000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Options
  Becoming Exercisable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6,175 on 1/6/2006

  	
   

  	
  6,175 on
  1/6/2007

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/17/2006

  	
   

  	
  10/17/2010

  	
   

  	
  Omnibus

  	
   

  	
  Non-Qualified

  	
   

  	
  10,500

  	
   

  	
  $

  	
  31.940000

  	
   

  	
  10,500

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Options
  Becoming Exercisable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3,500 on
  10/17/2006

  	
   

  	
  3,500 on
  10/17/2007

  	
   

  	
  3,500 on
  10/17/2008

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Optionee Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  233,540

  	
   

  	
   

  	
   

  	
  91,843

  	
   

  	
  204,615

  	
   

  	
  62,818

  	
   

  

 

3Exhibit 10.1

SEPARATION
AGREEMENT

 

 

                                                                                                THIS SEPARATION AGREEMENT is hereby made and entered into between James
M. Weiland, Senior Vice President-Sales, a California resident (“Employee”),
and MedQuist Inc. (the “Company”), a New Jersey corporation, having its
principal office at 1000 Bishops Gate Boulevard, Mount Laurel, New Jersey.

 

                                                                                                The Company and the Employee, each acting of their own free will and
intending to be legally and irrevocably bound hereby, mutually agree as
follows:

 

                                                                                                1.                                       For purposes of this Separation Agreement, the following terms shall
have the meanings given to them below:

 

“Employee” shall mean James M. Weiland and his
heirs, personal representatives, successors and assigns.

 

“Company” shall mean the Company, MedQuist
Transcriptions, Ltd., and its and their parent companies, subsidiaries,
affiliates, shareholders, predecessors and assigns, together with each and
every of their officers, directors, shareholders, employees and agents and the
heirs and executors of same (each in their respective capacity as such and
individually).

 

“Claims” shall mean any and all suits, causes of
action, complaints, charges, obligations, demands, or claims of any kind,
whether in law or in equity, direct or indirect, known or unknown, matured or
unmatured, which Employee may now have or ever had against the Company.

 

                                                                                                2.                                       Employee and the Company agree and acknowledge that Employee’s
employment with the Company terminated effective as of the close of business on
October 6, 2005 (the “Separation Date”).

 

                                                                                                3.                                       The Company shall pay Employee accrued but unpaid salary through the
Separation Date and shall pay Employee for unreimbursed expenses incurred
through the Separation Date.

 

                                                                                                4.                                       In accordance with Paragraph 5 of the November 15, 2004 agreement
between Employee and Company (the “Employment Agreement”), and in consideration
of Employee’s execution of this Separation Agreement, the Company shall pay or
provide to the Employee the following amount, and no other amounts or benefits,
as severance, less all applicable taxes and withholdings: continued payment of
Employee’s current base salary (at the base salary rate of $210,000 annually)
for a period of twelve (12) months to be paid in twelve (12) equal monthly
installments on the first of every month commencing on November 1, 2005.  All payments made in accordance with this
paragraph will be mailed to Employee at Employee’s home address of record.

 

 

                                                                                                5.                                       In accordance
with Paragraph 5 of the Employment Agreement, and in consideration of the
Company’s obligations set forth herein, Employee hereby generally releases and
discharges the Company from any and all Claims which Employee ever had or now
has against the Company, including, without limitation, any employment related
Claims. This release specifically includes,
without limitation, any and all Claims for: (i) wages and benefits (including
without limitation salary, stock, stock options, commissions, royalties,
license fees, health and welfare benefits, paid time off, vacation pay,
personal time and bonuses); (ii) wrongful discharge and breach of contract
(whether express or implied), and implied covenants of good faith and fair
dealing; (iii) alleged employment discrimination on the basis of age, race,
color, religion, sex, national origin, veteran status, and/or handicap, in
violation of any federal, state or local statute, ordinance, judicial precedent
or executive order, including but not limited to claims for discrimination
under the following statutes:  Title VII
of the Civil Rights Act of 1964, 42 U.S.C. 2000 et seq., the Civil
Rights Act of 1866, 42 U.S.C. 1981, and any similar act under applicable state
laws; (iv) under any federal or state statute relating to employee benefits or
pensions; (v) in tort (including, but not limited to, any claims for
misrepresentation, defamation, interference with contract or prospective
economic advantage, intentional infliction of emotional distress and
negligence); (vi) attorney’s fees and costs; and (vii) age discrimination or
other claims under the Age Discrimination in Employment Act, as amended, 29
U.S.C. 621 et seq., the Older Workers Benefit Protection Act, the
Rehabilitation Act of 1972, as amended, 29 U.S.C. 701 et seq. or any
similar act under applicable state laws, rules and regulations.

 

                                                                                                6.                                       Employee  agrees and acknowledges
that this Separation Agreement is a full and final general release of all
claims, including, but not limited to unknown, unanticipated, and undisclosed
losses, wrongs, injuries, claims and damages that arise wholly or in part from
any act or omission occurring before this Separation Agreement becomes
effective, and that this constitutes an essential term of this Separation
Agreement.  Therefore, Employee agrees
and acknowledges that this Separation Agreement waives and releases any claims
which would otherwise be preserved by operation of section 1542 of the
California Civil Code, which provides: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his or her favor
at the time of executing the release, which if known to him or her must have
materially affected his or her settlement with the debtor.”

 

                                                                                                7.                                       Employee agrees and acknowledges the significance and consequence of
this Separation Agreement and of each specific release and waiver, and
expressly agrees that this Separation Agreement shall be given full force and
effect according to each and all of its express terms and provisions, including
those relating to unknown and unsuspected claims, demands, obligations, and
causes of action, if any, as well as those relating to any other claims,
demands, obligations or causes of action herein above-specified.

 

                                                                                                8.                                       All remedies at law or in equity shall be available for the enforcement
of this Separation Agreement.  This
Separation Agreement may be pleaded as a full bar to the enforcement of any
claim which Employee may have against the Company.  If Employee violates the release contained
herein, in addition to all other legal and equitable remedies available to the
Company, Employee understands and agrees that any such violation of the terms
of this Separation Agreement shall result in immediate termination of the
Company’s obligation to make further payment(s) under this Separation
Agreement.

 

                                                                                                9.                                       Employee agrees and acknowledges that neither the execution of this
Separation Agreement by the Company, nor the terms hereof constitute an
admission by the Company of liability with respect to any possible Claim which
was or could have been made by Employee.

 

 

                                                                                                10.                                 On or before 5:00 p.m. on October 7, 2005 the Employee shall return to
the Company all property belonging to the Company that has been provided to the
Employee and also all property that is in the Employee’s possession or control,
including, without limitation, laptop computer(s), computers, computer accessories,
cell phones, cell phone accessories, credit cards, and copies or abstracts of
any proprietary or confidential information.

 

                                                                                                11.                                 Employee agrees and acknowledges that Employee shall be considered an
Employee of the Company only through October 6, 2005. Except for the payment
obligations specifically set forth herein, any other rights Employee shall have
as an employee of the Company shall terminate as of October 6, 2005.

 

                                                                                                12.                                 The Employee  agrees and
acknowledges that the Employee has waived any right to reinstatement to
employment with the Company, and the Employee further agrees not to take legal
action of any kind as a result of a refusal by the Company to consider the
Employee for employment after the date of this Separation Agreement.

 

                                                                                                13.                                 The Employee
agrees and acknowledges that, in accordance with the terms of the Employment
Agreement, Paragraph 4 of the Employment Agreement shall survive Employee’s
termination of employment; provided, however, that the Company and Employee
agree that the time period set out in Section 4(c) of the Employment Agreement
is hereby reduced to twelve (12) months. 
The parties further agree and acknowledge that all other terms of the
Employment Agreement shall terminate in accordance with their provisions as of
October 6, 2005.

 

                                                                                                14.                                 In response to
any inquiries from future or prospective employers concerning Employee, it is
agreed that the Company will confirm only dates of employment, title of
position held, and last salary.

 

                                                                                                15.                                 Employee agrees that he will cooperate fully with the
Company and its counsel with respect to any matter, including, but not
limited to, any litigation, investigation, or governmental proceeding or
internal Company review, which relates to matters with which Employee was
involved during the period in which he was employed by the Company, or
concerning which the Company reasonably determines Employee may have responsive
or relevant information. Such cooperation includes, but is not limited to, full
disclosure of all relevant information and truthfully testifying on the Company’s
behalf in connection with any such litigation, proceeding, investigation or
review.  In addition, such cooperation
shall include, but shall not be limited to, Employee’s making himself
reasonably available for interviews by Company or its counsel, depositions
and/or court appearances upon Company’s request.  Employee will render such cooperation in a
timely manner and at such times and places as may be mutually agreeable to the
parties.  Upon submission of appropriate
documentation, Employee shall be reimbursed by the Company for reasonable
travel, lodging, meals, and telecommunications expenses incurred in cooperating
with the Company under the terms of this provision.  Except as required by operation of law,
Employee agrees that he will immediately notify the Company if he is contacted
for an interview or if he receives a subpoena in any matter relating in any way
to his employment with the
Company. Employee further agrees that he will not initiate any communication with
a member of the press regarding his employment with the Company and that if he
is contacted by the press for any such information, he will decline comment and
refer the person seeking information to the Company.

 

 

                                                                                                16.                                 Employee has been advised that he has twenty-one (21) days in which to
consider this Separation Agreement and in which to consult with counsel.
Employee agrees that, in the event Employee elects to revoke the Employee’s
acceptance of this Separation Agreement, Employee will do so within seven (7)
days after executing it, by depositing (either directly or through counsel) a
letter via overnight express mail, addressed to the Company’s counsel:

 

Mark R. Sullivan

Acting General Counsel

MedQuist Inc.

1000 Bishops Gate Blvd., Suite 300

Mt. Laurel, NJ  
08054-4632

 

 

                                                                                                17.                                 a.                                       This Separation Agreement contains the entire agreement of the parties
with respect to the subject matter hereof, and shall be binding upon their
respective parties and their heirs, executors, administrators, successors and assigns.

 

                                                                                                                                                b.                                      If any provision of this Separation Agreement or the application
thereof is adjudicated to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision of this Separation
Agreement which can be given effect without the invalid or unenforceable
provision.

 

                                                                                                                                                c.                                       Neither this Separation Agreement nor any term hereof may be orally
changed, waived, discharged, or terminated, except by a written agreement
between the parties hereto.

 

                                                                                                                                                d.                                      This Separation Agreement shall be governed by the laws of the State of
New Jersey without regard to its conflicts of law principals.  Any action relating to this Separation
Agreement shall be brought in a state court in Burlington County, New Jersey or
in Federal Court for the District of New Jersey.

 

                                                                                                                                                e.                                       The terms of the Separation Agreement contained herein are contractual,
and not a mere recital.

 

                                                                                                18.                                 Employee represents and warrants that he is acting of his own free
will; that he has had the opportunity to seek the advice of counsel with
respect hereto; that he has had adequate time to consider this Separation
Agreement; and that he is entering into this agreement knowingly and
voluntarily.

 

 

                                IN
WITNESS HEREOF, Employee and the Company have caused the execution of this Separation
Agreement as of the day and year indicated below.

 

	
   

  	
   

  	
  MEDQUIST
  INC.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  James
  M. Weiland 

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]