Document:

Exhibit 10.37

PRIVILEGED SETTLEMENT COMMUNICATION

Steiner v. MedQuist, Inc.

No. 1:04-CV-05487

United States District Court for the District of New Jersey

MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (“MOU”) outlines the
essential terms of a proposed settlement (the “Settlement”) of the
above-referenced action (“Litigation”) between defendants MedQuist, Inc. (“MedQuist”),
Brian J. Kearns, David A. Cohen, John A. Donohoe, Ethan Cohen, John W.
Quaintance, and Ronald F. Scarpone (collectively “Defendants”) and Lead
Plaintiff Greater Pennsylvania Carpenters Pension Fund (“Lead Plaintiff”) on
behalf of itself and the members of the Settlement Class defined below
(collectively, the “Parties”).  This MOU is intended to be used as a basis
for drafting a Stipulation of Settlement (the “Stipulation”) and accompanying
papers which shall embody the terms set forth herein and such other and
consistent terms as are agreed upon by counsel for the Parties.

1.            
For purposes of this Settlement, the Settlement Class shall be defined as: all
persons who purchased the publicly traded securities of MedQuist between March
29, 2000 to June 14, 2004 (the “Settlement Class Period”).  Excluded from
the Settlement Class are Defendants and their related parties.

2.            
The Settlement Fund will consist of $7,750,000 in cash.  The Settlement
Fund shall be deposited into an interest-bearing account designated by Lead
Counsel and will be deposited within 20 business days of the execution of this
MOU.  If the agreed upon sums are not deposited, such non-deposited sums
will bear interest at 8% per annum from the date due until the date of actual
deposit.  The Individual Defendants will not have any responsibility for
contributing to or funding the settlement.

3.            
This is not a claims-made settlement and, if all conditions under the
Stipulation are satisfied, the Settlement receives final approval, the
Settlement Fund will not be returned to defendants.

4.            
Following execution of this MOU, the Parties and their counsel shall use their
best efforts to finalize and execute the Stipulation and such other
documentation as may be required or appropriate in order to obtain approval by
the Court of the Settlement of the Litigation upon the terms set forth in this
MOU.  Promptly upon execution of the Stipulation, the Parties shall apply
to the Court for preliminary approval of the Settlement and for the scheduling
of a hearing for consideration of final approval of the Settlement and Lead
Counsel’s application for an award of attorneys’ fees and expenses.

5.            
Simultaneously with the of execution of this MOU, counsel for the Parties will
file a stipulation and proposed order giving notice to the Court of the
Settlement and relieving the Individual Defendants from any obligation to file
answers to the Second Amended Complaint.  If the Settlement is not
approved by the Court or is otherwise terminated, the Individual Defendants’
answers will be due, absent an additional written agreement by the Parties
setting a new date, 6 weeks after entry of an order denying final approval by
the Court or after such other termination of the Settlement.

6.            
The Parties intend that this MOU will lead to a final settlement of the
Litigation and shall use their best efforts to negotiate a binding Stipulation
to be submitted to the Court for preliminary and final approval.

7.            
The Stipulation shall provide for the dismissal of the Litigation with
prejudice upon final approval of the Settlement and shall contain the usual
release of claims in this type of action arising out of, relating to, or in
connection with, the purchase of MedQuist publicly traded securities during the
Settlement Class Period, which have been or could have been asserted by any
member of the Settlement Class in the Litigation against the Defendants, but
will specifically exclude the claims presently asserted in South Broward Hospital District v. MedQuist, Inc.,
No. 1:05-CV-02206-JBS-AMD; Myers v. MedQuist,
Civil No. 05-4608(JBS); and Kanter v.
MedQuist, Civil No. 04-5542(JBS).  Defendants shall release the
Lead Plaintiff, the members of the Settlement Class and their counsel from any
claims relating to the institution, prosecution or settlement of the
Litigation.

8.            
The Stipulation shall also provide (among other terms) that:

(a)          
Defendants have denied and continue to deny that they have committed any act or
omission giving rise to any liability and/or violation of law;

(b)          
neither the Settlement nor any of its terms shall constitute an admission or
finding of wrongful conduct, acts or omissions;

(c)          
The Lead Plaintiff, Defendants, and their counsel shall not make any
applications for sanctions, pursuant to Rule 11 of the Federal Rules of Civil
Procedure (“Fed. R. Civ. P.”) or other court rule or statute, with respect to
any claims or defenses in this Litigation.  The Defendants agree that the
Litigation was filed in good faith and in accordance with Fed. R. Civ. P. 11,
and is being settled voluntarily by the Defendants after consultation with
competent legal counsel.

(d)          
the allocation of the Settlement Fund among the members of the Settlement Class
shall be subject to a plan of allocation to be proposed by Lead Counsel and approved
by the Court.  Defendants will take no position with respect to such
proposed plan of allocation or such plan as may be approved by the court, such
plan of allocation is a matter separate and apart from the proposed Settlement
between the Parties and any decision by the court concerning the plan of
allocation shall not affect the validity or finality of the Settlement;

(e)          
Defendants shall take no position with respect to any questions concerning Lead
Counsel’s request or award of attorneys’ fees and reimbursement of expenses,
which fees and expenses shall be paid from the Settlement Fund; and

(f)           
Plaintiff’s Counsel may apply for and receive an award of attorneys’ fees and
reimbursement of expenses from the Settlement Fund in such amounts as may be
approved by the Court and that any amount included in such award shall be paid
to Lead Counsel immediately upon the Court’s approval of the Settlement and
award, subject to each counsel’s obligation to pay back any such amount if, or
to the extent that, the fee award is amended or does not become final.

9.            
All reasonable costs and expenses of class notice and administration of the
Settlement shall be paid from the Settlement Fund when incurred.  The
Settlement Fund, less any amounts incurred for notice, administration, and/or
taxes shall revert to the entities or persons making the deposits if the
Settlement does not become effective.

10.          
Lead Counsel may designate the settlement claims administrator, subject to Court
approval.  MedQuist shall provide or cause to be provided to the
settlement claims administrator its shareholder lists as appropriate for
providing notice to the Settlement Class.

11.          
If the Settlement outlined in this MOU is not approved by the Court or is
terminated:  (a) the Settlement shall be without prejudice, and none of
its terms shall be effective or enforceable, except to the extent costs of
notice and administration have been incurred or expended; (b) the Parties shall
revert to their litigation positions immediately prior to the execution of this
MOU (subject to the terms of Paragraph 5 regarding the timing of the Individual
Defendants’ answers); and (c) the fact and terms of this Settlement shall not
be admissible in any trial of this Litigation.

12.          
This MOU may be executed in counterparts, including by signature transmitted by
facsimile.  Each counterpart when so executed shall be deemed to be an
original, and all such counterparts together shall constitute the same instrument. 
The undersigned signatories represent that they have authority from their
clients to execute this MOU. The terms of this MOU and Settlement shall inure
to and be binding upon the Parties and their successors in interest.

IT IS HEREBY AGREED by the undersigned.

	
  DATED: 3/23/2007

  	
   

  	
  LITE DePALMA GREENBERG

  
	
   

  	
   

  	
             &
  RIVAS, LLC

  
	
   

  	
   

  	
  JOSEPH J. DePALMA

  
	
   

  	
   

  	
  Two Gateway Center, 12th Floor

  Newark, NJ 07102-5003

  Telephone: 973/623-3000

  973/623-0858 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Liaison Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LERACH COUGHLIN STOIA GELLER

  
	
   

  	
   

  	
             RUDMAN
  & ROBBINS LLP

  
	
   

  	
   

  	
  JEFFREY W. LAWRENCE

  
	
   

  	
   

  	
  SHIRLEY H. HUANG

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ JEFFREY W.
  LAWRENCE

  
	
   

  	
   

  	
  JEFFREY W.
  LAWRENCE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  100 Pine Street, Suite 2600

  San Francisco, CA 94111

  Telephone: 415/288-4545

  415/288-4534 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LERACH COUGHLIN STOIA GELLER

  
	
   

  	
   

  	
             RUDMAN
  & ROBBINS LLP

  
	
   

  	
   

  	
  SAMUEL H. RUDMAN

  
	
   

  	
   

  	
  DAVID A. ROSENFELD

  
	
   

  	
   

  	
  58 South Service Road, Suite 200

  Melville, NY 11747

  Telephone: 631/367-7100

  631/367-1173 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Lead Counsel for Plaintiffs

  

 

 

	
  

  	
   

  	
  GREENBAUM ROWE SMITH & DAVID

  LLP

  
	
   

  	
   

  	
  MARC GROSS

  
	
   

  	
   

  	
  6 Becker Farm Road

  Roseland, NJ 07068-1735

  Telephone: 973/535-1600

  975/535-1698 (fax)

  
	
   

  	
   

  	
  Attorneys for Defendant Ronald F. Scarpone,

  MedQuist Inc.

  
	
   

  	
   

  	
   

  
	
  DATED: 3/23/2007

  	
   

  	
  WINSTON & STRAWN LLP

  NEAL MARDER

  GAIL J. STANDISH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ GAIL J.
  STANDISH

  
	
   

  	
   

  	
  GAIL J. STANDISH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  333 South Grand Avenue, 38th Floor

  Los Angeles, CA 90071-1543

  Telephone: 213/615-1700

  213/615-1750 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant Ronald F. Scarpone,

  MedQuist, Inc.

  
	
   

  	
   

  	
   

  
	
  DATED: 3/21/2007

  	
   

  	
  BUCHANAN INGERSOLL & ROONEY PC

  BRIAN J. MCCORMICK, JR.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ BRIAN J.
  MCCORMICK, JR.

  
	
   

  	
   

  	
  BRIAN J.
  MCCORMICK, JR.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1835 Market Street, 14th Floor

  Philadelphia, PA 19103

  Telephone: 215/665-6920

  215/665-8760 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant, John W. Quaintance

  
	
   

  	
   

  	
   

  
	
  DATED: 3/23/2007

  	
   

  	
  LATHAM & WATKINS LLP

  EDWARD J. SHAPIRO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ EDWARD J.
  SHAPIRO

  
	
   

  	
   

  	
  EDWARD J.
  SHAPIRO

  

 

 

	
  

  	
   

  	
  555 11th Street, N.W., Suite 1000

  Washington, D.C. 20004

  Telephone: 202/637-2200

  202/637-2201 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant Brian J. Kearns

  
	
   

  	
   

  	
   

  
	
  DATED: 3/23/2007

  	
   

  	
  MONTGOMERY, MCCRACKEN, WALKER

  & RHOADS, LLP

  JOHN J. LEVY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ JOHN J. LEVY

  
	
   

  	
   

  	
  JOHN J. LEVY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Liberty View

  457 Haddonfield Road, Suite 600

  Cherry Hill, NJ 08002

  Telephone: 856/488-7700

  856/488-7720 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant Ethan Cohen

  
	
   

  	
   

  	
   

  
	
  DATED: 3/23/2007

  	
   

  	
  DECHERT LLP

  DAVID A. KOTLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ DAVID A.
  KOTLER

  
	
   

  	
   

  	
  DAVID A. KOTLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Princeton Pike Corporate Center

  997 Lenox Drive, Suite 210

  Lawrenceville, NJ 08648

  Telephone: 609/620-3200

  609/620-3259 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant David A. Cohen

  
	
   

  	
   

  	
   

  
	
  DATED: 
  3/23/2007

  	
   

  	
  KATTEN MUCHIN ROSENMAN LLP

  SCOTT A. RESNIK

  JOEL W. STERNMAN

  ANTHONY L. PACCINE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ JOEL W.
  STERNMAN

  
	
   

  	
   

  	
  JOEL W. STERNMAN

  
	
   

  	
   

  	
  575 Madison Avenue

  New York, NY 10022

  Telephone: 212/940-8800

  212/940-8776 (fax)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for Defendant John A. DonohoeExhibit 10.38

MEDQUIST
INC.

DIRECTORS’
DEFERRED COMPENSATION PLAN

(as amended, effective October 14, 2004)

On January 1 of each year, the Company shall grant to each non-employee director (“Participant”)
deferred compensation in the form of MedQuist Inc. common stock (“Common Stock”)
having a fair market value of $50,000 on the date of grant.

The Common Stock under this
Plan shall not be issued until a Participant leaves the Board.

A Participant may elect prior to the date of grant not to defer actual receipt of Common
Stock under the Plan, in which case the Common Stock shall be issued on the
date of grant but shall not be transferable until after the Participant leaves
the Board. If a Participant so elects, the Participant shall receive up to
$6,000 in cash and the balance in MedQuist Inc. Common Stock.

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"}]]