Document:

Exhibit 10.26.1

AMENDMENT NO. 1 TO LICENSING AGREEMENT

This Amendment No. 1 (“Amendment No. 1”) to Licensing
Agreement is made as of January 1, 2002 by and between MedQuist Inc. (“MedQuist”),
a New Jersey corporation with its principal place of business at Five Greentree
Centre, Suite 311, Marlton, NJ 08053, acting on its own behalf and on behalf of
its wholly owned subsidiaries (direct and indirect) and Philips Speech
Processing GmbH (“Philips), an Austrian corporation, with its registered place
of business at Computerstrasse 6, 1101 Vienna, Austria (MedQuist and Philips,
each a “Party” and, collectively, the “Parties”).

WITNESSETH

WHEREAS, the Parties entered into a Licensing
Agreement, dated as of May 22, 2000 (the “Original Licensing Agreement”) relating
to the integration and use of certain Philips speech recognition technology
into MedQuist’s business; and

WHEREAS, the Parties desire to amend the Original
Licensing Agreement by modifying the pricing and fees and expanding the license
to include additional applications subject to the terms and conditions of this
Amendment No. 1; and

WHEREAS, simultaneously with, and as a condition to,
entering into this Amendment No. 1, the parties are entering into a Support
Agreement (the “Support Agreement”).

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

1.             Section 1. -
Definitions.

(i)            Unless otherwise
defined in this Amendment No. 1, capitalized terms used in this Amendment No. 1
shall have the meanings given to them in the Original Licensing Agreement.

(ii)           The following
definitions set forth in Section 1 of the Original Agreement are deleted: Level
2 Support and Level 3 Support.

(iii)          The definition of
Licensed Product set forth in Section 1 of the Original Agreement is modified
by deleting “and (ii)” and inserting, “(ii) the correction SDK and (iii)”.

(iv)          The following
definition shall be added to Section 1 of the Original Agreement: “Service
Bureau Services” shall mean the licensing of remote access to Licensee’s
software and hardware dictation and transcription systems (e.g.,
SpeechMachines).

2.             Section 2. - Scope
of License Grant, Ownership and Proprietary Rights.

 

 

(i)            The first paragraph
of Section 2.1 of the Original Licensing Agreement is deleted in its entirety
and replaced with the following:

Subject to the terms and conditions set forth in this
Agreement, Philips grants to MedQuist during the term of this Agreement: (i) a
personal, non-assignable, non-transferable, indivisible, non-exclusive (except
as provided herein) license, without right to sub-license, to use the Licensed
Product in Object Code and Documentation only (except as provided in Section 6)
for MedQuist’s internal use at its sites anywhere in the world, solely in
connection with MedQuist’s network and in connection with providing Services;
and (ii) a personal, non-assignable, non-transferable, indivisible,
non-exclusive (except as provided herein) license, without right to
sub-license, to use the Licensed Product in Object Code and Documentation only
(except as provided in Section 6) for use in connection with providing Service
Bureau Services anywhere in the world.

The words “in the USA” in the first sentence of the
second paragraph of Section 2.1 of the Original Licensing Agreement are hereby
deleted and replaced with “in North America. With respect to the Service Bureau
Services, Philips hereby grants to MedQuist a right of first refusal for any
sales opportunity that Philips has in North America to sell the Licensed
Product to a third party for Service Bureau Services.”

3.             Section 4 -
Pricing.

(i)            The second sentence
of Section 4.1 of the Original Licensing Agreement is hereby deleted in its
entirety and replaced with the following:

From and after January 1, 2002, the license fess for the
Licenses Product payable by MedQuist to Philips are set forth in Schedule D
(the “Fees”). “Fees”) attached to Amendment No. 1. All license fees prior to
January 1, 2002 shall be as set forth in Schedule D attached to the Original
Agreement.

(ii)           Upon execution of
this Agreement, MedQuist shall pay to Philips all amounts due and owing under
the Original License Agreement through December 31, 2001 (i.e., $US 716,000).

(iii)          Section 4.5 of the
Original Licensing Agreement is hereby deleted in its entirety.

4.             Schedule C-
Warranties, Indemnification and Limitation on Liability Provisions. Any
reference to the United States, USA or similar shall be changed to North
America.

5.             Schedule E -
Support. Schedule E (“Support”) of the Original Licensing Agreement is hereby
deleted in its entirety. Simultaneous with the execution of this Amendment No.
1, the Parties shall enter into an SLA Agreement in the form attached to this
Amendment No. 1.

 2
 

 

 

6.             Software Escrow. In
the event that: (i) Philips seeks to sell or transfer the Licensed Products to
a third party that is not a direct or indirect majority owned subsidiary of
Koninklijke Philips Electronics N.V. (an “affiliate”), or (ii) Philips seeks to
sell or otherwise transfer all or substantially all of its business or assets
to a non-affiliate or if beneficial ownership of a controlling interest in its
capital stock is to be sold or otherwise transferred to a non-affiliate, it
shall first give MedQuist at least 60 days prior written notice and the parties
shall enter into a software escrow agreement and place the Licensed Products in
escrow on commercially reasonable terms prior to completing any such sale or
transfer. MedQuist shall be responsible for the fees to the escrow agent.

7.             HIPPA Business
Associate. At the request of MedQuist, Philips shall execute a business
associate, chain of trust and other confidentiality agreement to the extent
reasonably required under the terms of the Health Insurance Portability and
Accountability Act of 1996 (“HIPAA”). Notwithstanding the foregoing, Philips
shall not be responsible for MedQuist’s failure to comply with HIPAA as a
result of the manner in which MedQuist uses the Licensed Product.

8.             Miscellaneous. The
Original Licensing Agreement shall continue in full force and effect, except
for the amendments set forth in this Amendment No. 1.  Reference to the Agreement in the Original
Licensing Agreement shall mean the Original Licensing Agreement as amended
hereby. In the event of any inconsistency or conflict between this Amendment
No. 1 and the Original Agreement, the provisions of this Amendment No. 1 shall
govern and control. This Amendment No. 1 may be executed in several
counterparts, all of which taken together shall constitute one single agreement
between the Parties. The Parties agree to accept facsimile signatures with
originals being exchanged afterwards.

IN WITNESS WHEREOF, the parties have caused this
Amendment No. 1 to be duly executed by their authorized representatives.

	
  PHILIPS SPEECH PROCESSING
  GmbH

  	
   

  	
  MedQuist Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Tom Stock

  	
   

  	
   

  	
  By:

  	
  /s/ David A. Cohen

  	
   

  
	
  Name: Tom Stock

  	
   

  	
  Name: David A. Cohen

  
	
  Title: General
  Manager

  	
   

  	
  Title: Chairman & CEO

  
							

 

 3

 

SCHEDULE “D “

Pricing and Fees

From and after January 1, 2002, License fees shall be
based on a per payroll line basis. A payroll line is 65 black/white characters.
MedQuist shall pay $US .024 per payroll line for the first 500 million payroll
lines per calendar year and $US .01 per payroll line for all lines in excess of
500 million in that calendar year. MedQuist shall only be charged for lines
produced using the Licensed Product that are used to produce a final report
billable by MedQuist to its client (e.g., MedQuist will not be charged for
testing and developing the Licensed Products or adapting a system to a
dictator). If MedQuist sends a report to a Medical Editor along with text
produced by SpeechMagic and the Medical Editor deletes this text before producing
a final report billable by MedQuist, MedQuist must still pay the License fees
to PSP.

MedQuist shall pay a one time licensing fee of $US
150,000 for unlimited seat licenses for its use of the Correction SDK, which
shall be due upon execution of Amendment No. 1. After the termination of the
Agreement: (i) MedQuist and its end users of the software may continue to use
installed copies of the Correction SDK software; (ii) PSP shall no longer be
obligated to support the Correction SDK software unless the parties mutually
agree upon the terms and conditions of a new support agreement and (iii)
MedQuist may not install any new copies of the Correction SDK software unless
the parties mutually agree upon the terms and conditions of a new licensing
agreement for such additional installations.

ALL CHARGES FOR ADDITIONAL SERVICES shall be on
commercial terms and conditions that are reasonably acceptable to both parties.Exhibit 10.26.2

CONFIDENTIAL
PORTIONS OF THIS DOCUMENT 

HAVE BEEN
REDACTED AND FILED SEPARATELY WITH THE

 SECURITIES
AND EXCHANGE COMMISSION

AMENDMENT NO. 2 TO LICENSING AGREEMENT

This Amendment No. 2 (“Amendment No. 2) to Licensing
Agreement is made as of 2002, December 10th by and between MedQuist Inc. (“MedQuist”),
a New Jersey corporation with its principal place of business at Five Greentree
Centre, Suit 311, Marlton, NJ 08053, acting on its own behalf and on behalf of
its wholly owned subsidiaries (direct and indirect) and Philips Speech
Processing GmbH (“Philips”), an Austrian corporation, with its registered place
of business at Computerstrasse 6, 1101 Vienna, Austria (MedQuist and Philips,
each a “Party” and, collectively, the “Parties”).

WITNESSETH

WHEREAS, the Parties entered into a Licensing
Agreement, dated as of May 22, 2000, as amended by Amendment No. 1 of January
2002 (as amended, the “Licensing Agreement”) relating to the integration and
use of certain Philips speech recognition technology into MedQuist business;
and

WHEREAS, the Parties desire to amend the Licensing
Agreement by modifying the pricing and fees and expanding the license to
include additional applications subject to the terms and conditions of this
Amendment No. 2;

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

Section.                                                     Definitions.

(i)                                    Unless
otherwise defined in this Amendment No. 2, capitalized terms used in this
Amendment No. 2 shall have the meanings given to them in the Licensing
Agreement.

The following definitions are added to Section 1 of
the Licensing Agreement:

(ii)                                 Service
Bureau Services as defined in Amendment No. 1 will be further defined as:

“Service Bureau Services including Correction
Services,” where the correction activity is part of the Service and is done by
MedQuist; and “ASP with Speech Recognition,” where MedQuist does not do the
Correction.

(iii)                              “In-house solution” is
the total software solution including Speech Recognition software that helps customers
to increase the efficiency of the document creation process. Currently MedQuist
sells XXXX and YYYYY as the in-house solution for Radiology. As part of this
Amendment No. 2, Philips shall develop an “In-house” solution (iii) that is
functionally equivalent to those products.

 

 

(iv)                             “In
house licenses business” is the business model where MedQuist sells and
implements the in-house solution with the integrated Licensed Product within
the IT environment of Customer.

(v)                                “Transfer
Price” is the price for a product or service to be paid by MedQuist to Philips.

Schedule D - Pricing

The first paragraph of Schedule D to Amendment No. 1
is hereby deleted and replaced with the following:

(i)                                    All
License fees shall be based on a per payroll line basis. A payroll line is
defined as 65 black/white characters. From and after December 1, 2002, the
license fees for the Licensed Product will be as follows:

·                                          Service
Bureau Service including Correction Services:

·                                          For
2002, the lines fee will be free of charge, and Philips acknowledges that it
shall not be entitled to payment for the invoice of $231,000 previously
submitted.

·                                          For
2003, the lines fee will be free of charge under the  express condition that MedQuist, related to
providing  Service Bureau Services with
Correction Services, achieves  its
forecast of lines going through its New Transcription Platform (“NTP”) using
automated speech recognition (“ASR”).

·                                          If
MedQuist does not meet its forecast, then MedQuist will pay $1,056,000. Payment
will be made at end of the year 2003.

·                                          For
2004 the same is valid as in 2003. Therefore, if the forecast amount is not
met, MedQuist will pay Philips at the end of 2004 the amount of $3,600,000.

·                                          If,
in 2003 or in 2004, MedQuist does not meet its forecasted lines, then right of
first refusal as said in section 2 of Amendment No. 1 and related to Service
Bureau Service including Correction Services, will be cancelled.

·                                          For
2005 and thereafter, a line fee of [***] is agreed for all lines.

·                                          The
foregoing is subject to the Licensed Product scaling and functioning as part of
the NTP in a commercially viable manner at the volume levels set forth in the
above contemplated forecasts. If scaling issues inhibit MedQuist’s ability to
achieve the forecasts, the parties will negotiate in good faith to reach a
mutually acceptable compromise.

***  Confidential material which
has been omitted and filed separately with the Securities and Exchange
Commission

 2
 

 

 

·                                          ASP with
Speech Recognition:

·                                          For
2003 and 2004 the line fee will be [***] per line. In 2005, the line fee will
be [***] for all lines.

·                                          MedQuist
has the right to provide promotional pricing to any client for up to 90 days
for ASP with Speech Recognition services. During this time, MedQuist will not
be subject to paying Philips a minimum line rate. Instead, for clients
receiving promotional pricing, MedQuist will pay Philips 50% of the revenues
that it collects as a result of ASP with Speech Recognition. The promotional
period for any specific client should not exceed 90-days without Phillips’
approval.

·                                          “In house
licenses business”:

·                                          Philips
will, in cooperation with MedQuist and Philips Medical Systems, develop a
Philips in-house solution for the Radiology business based on the requirements
and specifications of MedQuist.

·                                          Delivery
of this in-house solution is planned in Q4 2003.  Upon signing of this Agreement, MedQuist and
Philips will work in good faith to establish reasonable terms and conditions of
a development agreement (“Development Agreement”) including milestones,
deliverables and other customary terms and conditions for the in-house
radiology solution and a payment schedule for any amounts due after the signing
of this Agreement.

·                                          MedQuist
will pay Philips $1.2M in 2003 in installments based upon the delivery by
Philips on jointly agreed milestones.

·                                          On
signing of this Agreement, MedQuist will pay Philips 35% of that amount. The
balance shall be payable as agreed upon in the Development Agreement.

·                                          Until
the Philips In-house solution (the replacement for [***]) is available, the
Philips Speech engine will be for free under the express condition that it is
bundled with [***]. (This special arrangement does NOT apply to any other
vendor solutions.). For every user license, MedQuist will pay upfront per
quarter, the Quarterly maintenance of $73.50 per user.

·                                          Upon
delivery of the Philips In-house solution, MedQuist gets exclusivity for
distribution only for this solution in North America for 1 (one) year after the
product is commercially usable. The exclusivity will be reviewed annually based
on business results (meeting the forecast) in that year. If the exclusivity is
cancelled

***  Confidential material which
has been omitted and filed separately with the Securities and Exchange
Commission

 3
 

 

 

within 36 months
after a commercially usable product is delivered, then Philips will pay to
MedQuist (as liquidated damages for loss of exclusivity and not as a penalty)
an early termination fee equal to US $33,333.33 for each month remaining in the
36 month term after the effective date of termination. By way of example, if
Philips terminates the exclusivity at the end of 24 months after delivery, then
Philips will pay a termination fee equal to 12 times US $33,333.33.

·                                          Transfer
Price of the “In-house solution” needs to be agreed, and it is hereby agreed
that this will be lower than the Transfer Price of [***] including a Speech
Recognition engine.

The Fees do not include sales, use, excise and similar
taxes, or the cost of shipping or insurance, for which MedQuist is responsible.

All charges for additional services shall be on
commercial terms and conditions that are reasonably acceptable to both parties.

All dollar amounts specified in this agreement are US
dollars.

 

	
  PHILIPS SPEECH PROCESSING GmbH

  	
   

  	
  MedQuist Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Marcel Wassink

  	
   

  	
  By:

  	
  /s/ Ethan H. Cohen

  
	
  Name: Marcel Wassink

  	
   

  	
  Name: Ethan H. Cohen

  
	
  Title: Managing Director

  	
   

  	
  Title: EVP & CTO

  
	
  PSP SRS

  	
   

  	
   

  
					

 

***  Confidential material which
has been omitted and filed separately with the Securities and Exchange
Commission

 

 4

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"}]]