Document:

exv10w1

Exhibit 10.1

August 2, 2011

Robert Aquilina

c/o MedQuist Holdings Inc.

9009 Carothers Parkway, Suite C-2

Franklin, TN 37067

Dear Bob:

This letter (this “Agreement and Release”), upon your signature, confirms the entire
agreement between MedQuist Holdings Inc. (“Holdings”), CBay Inc. (the “Company”),
MedQuist Inc. (“MedQuist” and, together with Holdings and the Company and its and their
subsidiaries and affiliates, the “Company Group”) and you regarding the terms of your
separation from employment with the Company Group.

	1)	 	You and the Company Group hereby agree that your employment as Executive Chairman of Holdings
and any and all appointments you hold with the Company Group as an officer or employee,
terminated as of June 30, 2011 (the “Separation Date”). In addition, you and the
Company Group acknowledge that you served as the non-Executive Chairman of the Board of
Directors of Holdings from July 1, 2011 through July 11, 2011. Effective as of the Separation
Date, you shall have no authority to act as an executive officer on behalf of any member of
the Company Group and shall not hold yourself out as having such authority or otherwise act in
an executive capacity. Regardless of whether you sign this Agreement and Release, the Company
will pay you all earned but unpaid salary, if any, through the Separation Date on the first
payroll period to occur following the Separation Date.
	 
	2)	 	Subject to your execution, delivery and non-revocation of this Agreement and Release
(including with respect to the general release granted herein) within sixty (60) days
following the Separation Date (such 60-day period, the “Release Period”) and subject
to your execution of the Termination of Management Stockholder’s Agreement (the
“Termination Agreement”), attached hereto, as Exhibit A, the continued
effectiveness of this Agreement and Release and your continued performance of your ongoing
obligations to the Company Group under Sections 7 through 9, and in lieu and full satisfaction
of any payments or benefits to which you may otherwise have been entitled pursuant to Section
8(c) of the Employment Agreement, dated August 8, 2008, between you, Holdings and the Company,
as amended by Amendment No. 1 to the Employment Agreement, dated February __, 2011, between
you, Holdings and the Company (the “Employment Agreement”):

	 	a)	 	The Company will pay you severance pay equal to your annual base salary of $500,000,
which amount will be paid to you over twelve (12) months in substantially equal
installments as per the Company’s regularly scheduled payroll cycle, less all applicable
taxes and withholdings; provided, that the first installment shall not be paid
until the first payroll date to occur after the expiration of the six-month period

 

 

Robert Aquilina

August 2, 2011

	 	 	 	commencing on the Separation Date, but shall include all installments that otherwise would
have been paid during such six-month period.
	 
	 	b)	 	The Company will pay you additional severance pay in the gross amount of $475,000,
which amount will be paid to you over twelve (12) months in substantially equal
installments as per the Company’s regularly scheduled payroll cycle, less all applicable
taxes and withholdings; provided, that the first installment shall not be paid
until the first payroll date to occur after the expiration of the six-month period
commencing on the Separation Date, but shall include all installments that otherwise would
have been paid during such six-month period.
	 
	 	c)	 	In the event of your death prior to the receipt of any or all installments under
Sections 2(a) and 2(b) of this Agreement and Release, such installments (or the balance of
any such installments, as applicable) shall be paid to your estate; provided, that
you or your estate, as applicable, have satisfied the conditions set forth in the first
sentence of Section 2 of this Agreement and Release.
	 
	 	d)	 	A schedule of all outstanding stock options granted to you under the CBaySystems
Holdings Limited 2007 Equity Incentive Plan (the “2007 Plan”) and the Share Option
Agreement under the 2007 Plan, dated April 17, 2009 (the “Option Agreement”) is
set forth on Schedule A, attached hereto, which schedule reflects that all options
granted to you under the Option Agreement vested prior to the Separation Date. The Option
Agreement is hereby amended to provide that, notwithstanding anything to the contrary
provided therein, subject to earlier termination in accordance with the Option Agreement,
as amended by this Section 2(d), or Section 8 of this Agreement and Release, all
outstanding options to purchase shares of common stock of Holdings held by you on June 30,
2011 (as set forth on Schedule A), shall remain exercisable by you or in the event
of your death, your estate, until December 30, 2012 and, on or after December 31, 2012,
such options shall terminate automatically and shall not be exercisable.

	 	 	You agree that the payments and benefits provided for in this Section 2 are due solely from the
Company and that Insperity PEO Services, L.P., formerly known as Administaff Companies II, L.P.
(“Insperity”), has no obligation to pay or provide such compensation or benefits, even
though the payments and benefits provided in this Section 2 may be processed or otherwise delivered
through Insperity.
	 
	3)	 	On behalf of yourself, your agents and assigns, in consideration for the Company’s and
Holdings’ obligations under Section 2 of this Agreement and Release, you hereby waive and
release any and all claims, whether known or unknown, that you have against Insperity and its
parent company, subsidiaries and other affiliated companies as well as any of its and their
insurers, directors, officers, agents, and employees, any member of the Company Group and
their respective predecessors, subsidiaries, affiliates and related entities and their
respective officers, directors, shareholders, agents, attorneys, employees, successors, or
assigns (collectively, the “Released Parties”), arising from or out of your employment
with and/or the termination of your employment with the Company Group. These claims include,
but are

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Robert Aquilina

August 2, 2011

	 	 	not limited to, claims arising under: Title VII of the Civil Rights Act of 1964, as amended; The
Employee Retirement Income Security Act of 1974, as amended; The Americans with Disabilities Act of
1990, as amended; The Age Discrimination in Employment Act of 1967, as amended (“ADEA”);
The Workers Adjustment and Retraining Notification Act, as amended; the New Jersey Law Against
Discrimination; the New Jersey Conscientious Employee Protection Act; the New Jersey Family Leave
Act; the New Jersey Civil Rights Act; the New Jersey Equal Pay Act; and any other federal, state or
local discrimination, harassment, civil or human rights law or any other local, state or federal
law, regulation or ordinance; any public policy, contract, tort, or common law; any Company Group
compensation or benefit plan under which you were eligible, except as expressly provided herein;
any stock options granted to you during your employment with the Company Group, except as expressly
provided herein; and any claim for costs, fees, or other expenses including attorneys’ fees
incurred by you in connection with such matters. Nothing herein is intended to release any claim
that is unwaivable by law or governmental regulation, any rights you may have to indemnification
provided under any applicable insurance policy or Holdings’ or the Company’s charter or by-laws, or
any obligation of the Company or Holdings under this Agreement and Release.
	 
	4)	 	You also acknowledge that there may exist claims or facts in addition to or different from
those which are now known or believed by you to exist and agree that it is your intention to
fully settle and release such claims against any of the Released Parties, whether known or
unknown, that may exist as of the time you sign this Agreement and Release. You acknowledge
that you have read this Agreement and Release and understand you may later discover facts
different from or in addition to those known or now believed to be true with respect to the
matters released or described in this Agreement and Release. You agree that the release and
agreements contained in this Agreement and Release shall be and will remain effective in all
respects notwithstanding any later discovery of any such different or additional facts.
	 
	5)	 	You affirm that you have been paid and have received all leave (paid and unpaid),
compensation, salary, wages, bonuses, commissions and/or benefits to which you may be entitled
as an executive officer of the Company Group and that no other leave (paid or unpaid),
compensation, salary, wages, bonuses, commissions and any benefits are due to you, except as
provided in this Agreement and Release. The Company will reimburse you for reasonable and
customary business expenses incurred prior to the Separation Date pursuant to the terms of the
Company’s Business Expense Policy; provided that you submit a completed expense
reimbursement form and supporting documentation no later than fifteen (15) days following the
Separation Date. You further affirm that you have no known workplace injuries or occupational
diseases, other than any injuries or diseases that have been previously reported.
	 
	6)	 	You agree that you will return to the Company Group on or before the Separation Date all
Company Group property within your possession, custody or control, including any equipment
issued to you by Holdings, MedQuist and the Company for your use during employment with the
Company Group and any confidential and proprietary information (including, without limitation,
customer and vendor names and contact information, customer

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Robert Aquilina

August 2, 2011

	 	 	licensing and support information, sales and forecast information, operating plan and budget
information, employee lists and organizational charts, board presentations, etc.), whether in
hardcopy or electronic form; and keys and access badges.
	 
	7)	 	To the fullest extent permitted by law, at no time subsequent to the execution of this
Agreement and Release will you pursue, or cause or knowingly permit the prosecution, in any
state, federal or foreign court, or before any local, state, federal or foreign administrative
agency, or any other tribunal, any charge, claim or action of any kind, nature and character
whatsoever, known or unknown, which you may now have, have ever had, or may in the future have
against any of the Released Parties, which is based in whole or in part on any claim covered
under Section 3 of this Agreement and Release. Nothing in this Section 7 shall preclude you
from (i) enforcing this Agreement and Release or exercising any rights that you may have that
have not been waived under the terms of this Agreement and Release; (ii) initiating or causing
to be initiated on your behalf any complaint, charge, claim or proceeding against any of the
Released Parties before any local, state or federal agency, court or other body challenging
the validity of the waiver of your claims under ADEA contained in Section 3 (but no other
portion of such waiver); or (iii) initiating or participating in (but not benefiting from) an
investigation or proceeding conducted by the Equal Employment Opportunity Commission with
respect to ADEA.
	 
	8)	 	You agree to continue to abide by the terms of Sections 9 (Non-Competition) and 10
(Confidentiality; Intellectual Property) of the Employment Agreement. In the event that the
Board of Directors of Holdings determines, in its reasonable discretion and acting in good
faith that you have breached the terms of Sections 9 or 10 of the Employment Agreement, the
Company (i) shall immediately cease and have no further obligation to make any further
installments of the severance payments set forth in Sections 2(a) and 2(b) of this Agreement
and Release, and (ii) any outstanding and unexercised options held by you under the Option
Agreement shall expire immediately.
	 
	9)	 	You hereby agree not to defame or disparage any member of the Company Group or any executive,
manager, director, or officer of any member of the Company Group in any medium to any person
without limitation in time. The Company Group hereby agrees that members of the Board of
Directors of the Company and Holdings and the executive officers of the Company and Holdings
shall not defame or disparage you in any medium to any person without limitation in time.
Notwithstanding this provision, each of you, Holdings and the Company may confer in confidence
with your or its legal representatives and make truthful statements as required by law.
	 
	10)	 	Each installment of the severance payment set forth in Section 2 is intended to be treated as
a series of separate payments at all times for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended, and Treasury Regulation Section 1.409A-2(b)(2)(iii) (or any
similar or successor provisions).
	 
	11)	 	This Agreement and Release sets forth the entire agreement between the parties hereto related to the termination of your employment, and fully supersedes any prior agreements
or understandings between the parties hereto related to the subject matter hereof, except for
(i)

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Robert Aquilina

August 2, 2011

	 	 	any benefit plans applicable to COBRA continuation, (ii) the Option Agreement, as amended pursuant
to Section 2(d) of this Agreement and Release, and (iii) the Termination Agreement. This Agreement
and Release shall terminate and fully extinguish any and all rights that you may have under the
Employment Agreement. You acknowledge that you have not relied on any representations, promises,
or agreements of any kind made to you by the Company, Holdings or MedQuist in connection with your
decision to accept this Agreement and Release, except for those set forth in this Agreement and
Release.
	 
	12)	 	This Agreement and Release shall be governed and conformed in accordance with the laws of the
State of New York without regard to its conflicts of law provisions.
	 
	13)	 	This Agreement and Release may not be modified, altered or changed except upon express
written consent of each of the Company, Holdings, MedQuist and you wherein specific reference
is made to this Agreement and Release.
	 
	14)	 	Should any of the provisions of this Agreement and Release be determined to be invalid by a
court, arbitrator, or government agency of competent jurisdiction, it is agreed that such
determination shall not affect the enforceability of the other provisions herein.
Specifically, should a court, arbitrator, or agency conclude that a particular claim may not
be released or a restrictive covenant may not be enforced as a matter of law, it is the
intention of the parties that the general release, the waiver of unknown claims, and the
covenant not to sue shall otherwise remain effective to release any and all other claims
covered thereby.
	 
	15)	 	You have up to twenty-one (21) days from the date of your receipt of this letter to accept
the terms of this Agreement and Release, although you may accept it at any time within those
twenty-one (21) days. You are advised to consult an attorney about whether or not to sign
this Agreement and Release.
	 
	16)	 	To accept this Agreement and Release, please sign and date this letter and return it to the
General Counsel of Holdings no later than the twenty-one (21) day period referred to in
Section 15 above. Once you do so, you will have an additional seven (7) days in which to
revoke your acceptance. To revoke, you must deliver to the General Counsel of the Holdings a
written statement of revocation no later than seven (7) days after you execute this Agreement
and Release. If you do not submit your revocation, then the eighth (8th) day after
your execution of this Agreement and Release will be the “Effective Date” of this Agreement
and Release. If the last day of the revocation period is a Saturday, Sunday, or legal holiday
in the state in which you were employed at the time of your last day of employment, then the
revocation period shall not expire until the next following day which is not a Saturday,
Sunday, or legal holiday. If you revoke this Agreement and Release, you will have no right or
entitlement to any of the payments or benefits described in this Agreement and Release (except
as described in Section 1). You will not be entitled to receive any of the payments or
benefits provided in any Section of this Agreement and Release, other than Section 1, until
the occurrence of the Effective Date. You hereby acknowledge and agree that you have been
provided with a copy of this Agreement and Release on or prior to the Separation Date and
understand that this Agreement and Release must become effective prior to the expiration of

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Robert Aquilina

August 2, 2011

	 	 	the Release Period defined in Section 2 in order for you to be entitled to the severance payments
and benefits described in Section 2.
	 
	17)	 	This Agreement and Release may be executed by one or more of the parties hereto on any number
of separate counterparts and all such counterparts shall be deemed to be one and the same
instrument. Each party hereto confirms that any facsimile or PDF copy of such party’s
executed counterpart of this Agreement and Release (or its signature page thereof) shall be
deemed to be an executed original thereof.

[Remainder of Page Intentionally Left Blank]

Page 6 of 8

 

Robert Aquilina

August 2, 2011

I wish you success in your future and professional efforts.

Sincerely,

	 	 	 	 	 	 	 	 	 

	MEDQUIST HOLDINGS INC.

	 	 	 	MEDQUIST INC.
	 
	 	 	 	 	 	 	 	 
	/s/

	 	Mark R. Sullivan
	 	 	 	/s/
	 	Mark R. Sullivan
	 

	 	 
	 	 	 	 
	 	 
	By:

	 	Mark R. Sullivan
	 	 	 	By:
	 	Mark R. Sullivan
	Its:

	 	General Counsel & Chief
	 	 	 	Its:
	 	General Counsel & Chief
	 

	 	Compliance Officer
	 	 	 	 	 	Compliance Officer

	 	 	 	 	 
	CBAY INC.

 	 
	/s/ Kashyap Joshi
 	 
	By: Kashyap Joshi 	 
	Its: Vice President Finance 	 
	 

Acknowledgement and Acceptance:

By signing this Agreement and Release, I acknowledge that I have been advised to review this
Agreement and Release with an attorney before signing it, and have had the opportunity to review
this Agreement and Release with an attorney of my choice, or have done or voluntarily chosen not to
do so; that I have read the and fully understand the terms of the Agreement and Release; and that I
hereby voluntarily agree to them.

	 	 	 	 	 	 	 	 	 

	Dated:

	 	August 2, 2011
	 	 	 	Signed:
	 	/s/ Robert Aquilina
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Robert Aquilina

Effective as of the Separation Date, except for any continued services as a non-employee director
of the Board of Directors of Holdings, I hereby acknowledge and confirm my resignation from all
appointments and positions held by me with any member of the Company Group, whether as an officer,
director, employee, consultant, agent or otherwise.

	 	 	 	 	 	 	 	 	 

	Dated:

	 	August 2, 2011
	 	 	 	Signed:
	 	/s/ Robert Aquilina
	 

	 	 
	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	Robert Aquilina

Page 7 of 8

 

Schedule A

SCHEDULE OF OUTSTANDING STOCK OPTIONS

     The table below sets forth the outstanding options to purchase common stock of MedQuist
Holdings Inc., (“Holdings”) held by Robert Aquilina as of June 30, 2011 (the
“Separation Date”) granted under the CBay Systems Holdings Limited 2007 Equity Incentive
Plan (approved by Holdings on June 12, 2007 and amended by the Board of Directors of Holdings on
September 4, 2008).

Schedule of Outstanding Options to Purchase 

Shares of Common Stock of 

MedQuist Holdings Inc. Held by Robert Aquilina 

as of the Separation Date

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Vested and	 	 	 	 
	 	 	Initial Exercise	 	 	Adjusted Exercise	 	 	Outstanding as of	 	 	Exercisable as of	 	 	 	 
	Grant Date	 	Price	 	 	Price	 	 	the Separation Date	 	 	the Separation Date	 	 	Expiration Date
	August 6, 2008
	 	£3.15 per share	 	$5.01 per share	 	 	484,111	 	 	 	484,111	 	 	December 31, 2012
	 
	 	$5.01 per share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

TERMINATION OF MANAGEMENT STOCKHOLDER’S AGREEMENT

          This Agreement (this “Agreement”) is entered into as of July 28, 2011 among MedQuist
Holdings Inc. (formerly known as CBaySystems Holdings Limited), a Delaware corporation (the
“Company”), S.A.C. PEI CB Investment, L.P., an exempted limited partnership organized under
the laws of the Cayman Islands (“SAC CBI”), and Robert Aquilina (the “Management
Stockholder”) (the Company, SAC CBI and the Management Stockholder being hereinafter
collectively referred to as the “Parties”).

          WHEREAS, on April 17, 2009, the Parties entered into the Management Stockholder’s Agreement
(the “Original Agreement”) in connection with the issuance and prospective issuance to the
Management Stockholder of options (the “Options”) to purchase shares of common stock (of
the Company) pursuant to the terms of the Original Agreement and the terms of the Company’s 2007
Equity Incentive Plan (the “2007 Option Plan”) and the Stock Option Agreement entered into
by and between the Company and the Management Stockholder in respect thereof (the “Option
Agreement”); and

          WHEREAS, the Parties desire and wish to terminate the Original Agreement,

          NOW THEREFORE, to implement the foregoing and in consideration of the mutual agreements
contained herein, the Parties agree as follows:

     1. Termination of Original Agreement. The Parties agree that the Original Agreement
is hereby terminated, subject to the conditions that (a) the shares of the Company’s common stock
issuable to the Management Stockholder under the Option Agreement shall have been registered under
the Securities Act of 1933, as amended, and (b) the Company and the Management Stockholder shall
have entered into a Separation and General Release Agreement relating to the termination of the
Management Stockholder’s employment with the Company.

     2. Covenant Not to Disparage. The Management Stockholder agrees that he shall not, at
any time, disparage SAC CBI or any of its affiliates (as such term is defined in Rule 405 under the
Securities Act of 1933, as amended), or any of the current or former directors, officers, agents,
representatives, partners, members or stockholders of any of the foregoing, either orally or in
writing. This provision shall apply in addition to the provisions of the above-mentioned
Separation and General Release Agreement.

     3. Binding Effect; Assumption. The provisions of this Agreement shall be binding upon
and accrue to the benefit of the parties hereto and their respective heirs, legal representatives,
successors and assigns.

     4. Applicable Law. The laws of the State of New York applicable to contracts executed
and to be performed entirely in such state shall govern the interpretation, validity and
performance of the terms of this Agreement.

     5. Counterparts. This Agreement may be executed by one or more of the Parties hereto
on any number of separate counterparts and all such counterparts shall be deemed to be one and the
same instrument. Each Party hereto confirms that any facsimile or PDF copy of such party’s
executed counterpart of this Agreement (or its signature page thereof) shall be deemed to be an
executed original thereof.

[Signatures on next pages.]

 

 

          IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	MEDQUIST HOLDINGS INC.

 	 
	 	By:  	 
 	 
	 	 	Name:  	Mark R. Sullivan 	 
	 	 	Title:  	General Counsel &

Chief Compliance Officer 	 
	 

[Signature Page to Aquilina — Termination of Management Stockholder’s Agreement]

 

 

	 	 	 	 	 
	 	S.A.C. PEI CB INVESTMENT, L.P., acting by its

general partner,

S.A.C. PEI CB Investment GP, Limited

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Aquilina — Termination of Management Stockholder’s Agreement]

 

 

	 	 	 	 	 
	 	MANAGEMENT STOCKHOLDER:

 	 
	 	Robert Aquilina 	 
	 	 	 
	 	ADDRESS: 	 
	 
	 	 	 
	 	 	 
	 

[Signature Page to Aquilina — Termination of Management Stockholder’s Agreement]exv10w2

Exhibit 10.2

Michael
Seedman

SEPARATION AGREEMENT AND GENERAL RELEASE

     This Separation Agreement and General Release (the “Agreement”) is entered into by and
between MedQuist Holdings Inc., a Delaware corporation (the “Company”) and Michael Seedman
(“Executive”).

     In consideration of the promises set forth in this Agreement, Executive and the Company (the
“Parties”) hereby agree as follows:

1. Entire Agreement.

This Agreement is the entire agreement between the Parties with respect to the subject matter
hereof and contains all agreements, whether written, oral, express or implied, between the Parties
relating thereto and supersedes and extinguishes any other agreement relating thereto, whether
written, oral, express or implied, between the Parties, including, without limitation, the
Employment Agreement by and between the Parties, dated August 8, 2008, as amended as of February
__, 2011 (the “Employment Agreement”); provided, that no rights or obligations
established under any such superseded agreement and specifically preserved by this Agreement are
extinguished. Notwithstanding the foregoing, capitalized terms not otherwise defined herein shall
have the meaning ascribed to them in the Employment Agreement. This Agreement may not be modified
or amended, nor may any rights under it be waived, except in a writing signed and agreed to by the
Parties. Nothing set forth in this Agreement shall be construed or interpreted as restricting,
limiting or otherwise affecting the Executive’s rights or the Company’s obligations under (i) the
Consulting Agreement between Executive and the Company dated April 1, 2011, (ii) the Termination of
Management Stockholder’s Agreement between Executive, the Company and S.A.C. PEI CB Investment,
L.P. dated as of July __, 2011 or (iii) the Share Option Agreement between Executive and the
Company, dated as of April 17, 2009, as amended on April 18, 2011.

2. Termination of Employment.

The Parties hereby agree that Executive’s employment and any and all appointments he holds with the
Company and any of its subsidiaries, affiliates and each of their successors and assigns
(collectively, the “Company Group”), whether as officer, director, employee, consultant,
agent or otherwise, ceased as of April 1, 2011 (the “Termination Date”). Effective as of
the Termination Date, Executive shall have no authority to act on behalf of the Company or any
other member of the Company Group, and shall not hold himself out as having such authority or
otherwise act in an executive or other decision making capacity. Under the terms of the Employment
Agreement, the termination of Executive’s employment was a termination “without cause.”

3. Payments and Benefits.

In consideration for Executive entering into this Agreement and fully abiding by its terms, the
Company agrees to provide Executive with:

 

 

     A. Salary Continuation Payments in the gross amount of $120,000, which constitutes twelve (12)
months of Executive’s base salary, payable over twelve (12) months in installments as per the
Company’s regularly scheduled payroll cycle, less all applicable taxes and withholdings;

     B. additional severance pay in the gross amount of $72,000 payable over twelve (12) months in
installments as per the Company’s regularly scheduled payroll cycle, less all applicable taxes and
withholdings;

     C. reimbursement, within 60 days following submission by Executive to the Company of
appropriate supporting documentation) for any unreimbursed business expenses properly incurred by
Executive in accordance with Company policy on or before the Termination Date; provided claims for
such reimbursement (accompanied by appropriate supporting documentation) are submitted to the
Company within 90 days following the Termination Date.

Each payment set forth in Sections 3(A) and 3(B) is intended to be treated as a series of separate
payments at all times for purposes of Code Section 409A and Treasury Regulation 1.409A-2(b)(2)(iii)
(or any similar or successor provisions).

Executive shall be entitled to the payments and benefits provided for in this Section 3, subject to
Executive’s compliance at all times prior to, and on each applicable payment date, with the
covenants referenced in Sections 9 and 10 of the Employment Agreement; provided,
however, that no Salary Continuation Payments shall be paid if Executive revokes this
Agreement pursuant to Section 6 below.

In addition, all options granted to Executive under the Company’s 2007 Equity Incentive Plan that
are unvested as of the Termination Date will accelerate, vest in full upon the Termination Date and
be exercisable in accordance with the terms of the underlying option agreement, as it may be
amended from time to time (the “Option Agreement”).

Executive agrees that the payments and benefits provided for in this Section 3 are due solely from
the Company and that Insperity PEO Services, L.P., formerly known as Administaff Companies II, L.P.
(“Insperity”), has no obligation to pay the additional compensation, even though the
payments and benefits provided for in this Section 3 may be processed through Insperity.

4. No Other Compensation or Benefits Owing.

Employee understands and agrees that, except as otherwise provided for in this Agreement Executive
is not and will not be due any other compensation or benefits from the Company.

5. Survival of Employment Agreement Provisions.

Sections 9 through 12 inclusive of the Employment Agreement and all related definitions shall
survive the Termination Date and be effective for such respective periods contemplated by the
Employment Agreement.

6. Acknowledgment and Release.

2

 

     A. In consideration of the Company’s execution of this Agreement and the obligations as set
forth herein upon the Company, Executive, for and on behalf of himself and his heirs and assigns,
hereby waives and releases any common law, statutory or other complaints, claims, demands,
expenses, damages, liabilities, charges or causes of action arising out of or relating to
Executive’s employment or termination of employment with, or his serving in any capacity in respect
of, or Executive’s status at any time as a holder of any securities of, any member of the Company
Group, both known and unknown, in law or in equity, which Executive may now have or ever had
against Insperity and its parent company, subsidiaries and other affiliated companies as well as
any of its and their insurers, directors, officers, agents, and employees, any member of the
Company Group, including but not limited CBay Inc., or any shareholder, employee, officer,
director, agent, attorney, representative, insurer, trustee, administrator or fiduciary of any
member of the Company Group, including their successors and assigns (collectively, the
“Releasees”) up to and including the date of Executive’s execution of this Agreement,
including, without limitation, any claim for any severance or other benefits which, but for this
Agreement, might have been due Executive under any previous agreement executed by and between any
member of the Company Group and Executive, and any complaint, charge or cause of action arising out
of his employment with the Company Group under, by way of example and not limitation, the Age
Discrimination in Employment Act of 1967 (“ADEA”, a law which prohibits discrimination on
the basis of age against persons age 40 and older), the National Labor Relations Act, the Civil
Rights Act of 1991, the Americans With Disabilities Act of 1990, Title VII of the Civil Rights Act
of 1964, the Employee Retirement Income Security Act of 1974, the Family Medical Leave Act, the
Equal Pay Act, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification
Act, the Securities Act of 1933, the Securities Exchange Act of 1934, and all other federal, state
and local statutes, ordinances, regulations and the common law. By signing this Agreement,
Executive acknowledges that he intends to waive and release any such rights known or unknown he may
have against the Releasees as of the date of Executive’s execution of this Agreement;
provided, that, Executive does not waive or release (i) claims with respect to the
right to enforce this Agreement, (ii) claims with respect to any vested and accrued right Executive
may have under any employee pension plan or welfare benefit plan of the Company, (iii) claims
pursuant to any Option Agreement under which options are outstanding on the date hereof; (iv) any
rights to indemnification provided under the terms of the Employment Agreement, under any
applicable insurance policy or the Company’s charter or by-laws or under any indemnification
agreement between the Parties, or (v) claims that cannot be legally waived.

     B. Executive acknowledges that he has not filed any complaint, charge, claim or proceeding
against any of the Releasees before any local, state or federal agency, court or other body
relating to his employment or the termination thereof (each individually a “Proceeding”).
Executive represents that he is not aware of any basis on which such a Proceeding could reasonably
be instituted.

     C. Executive acknowledges that he received this Agreement on July 9, 2011. Executive
acknowledges that he has been given twenty-one (21) calendar days from the date of receipt of this
Agreement to consider all of the provisions of this Agreement and he does hereby knowingly and
voluntarily waive some or all of such twenty-one (21) day period. EXECUTIVE FURTHER ACKNOWLEDGES
THAT HE HAS READ THIS AGREEMENT CAREFULLY, HAS BEEN ADVISED BY THE COMPANY TO CONSULT AN

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ATTORNEY AND THAT HE HAS IN FACT BEEN ADVISED BY COUNSEL OF HIS CHOICE AND THAT HE FULLY
UNDERSTANDS THAT BY SIGNING BELOW HE IS GIVING UP CERTAIN RIGHTS WHICH HE MAY HAVE TO SUE OR ASSERT
A CLAIM AGAINST ANY OF THE RELEASEES, AS DESCRIBED IN THIS SECTION 6 AND THE OTHER PROVISIONS
HEREOF. EXECUTIVE ACKNOWLEDGES THAT HE HAS NOT BEEN FORCED OR PRESSURED IN ANY MANNER WHATSOEVER
TO SIGN THIS AGREEMENT AND EXECUTIVE AGREES TO ALL OF ITS TERMS VOLUNTARILY.

     D. Executive shall have seven calendar days from the date of his execution of this Agreement
to revoke this Agreement, including the release given under this Section 6 with respect to all
claims referred to herein (including, without limitation, any and all claims arising under ADEA)
(the “Revocation Period”). Such revocation must be in writing and delivered to the
Company’s General Counsel at the address set forth in Section 10A below prior to the expiration of
the Revocation Period. If Executive revokes this Agreement including, without limitation, the
release given under this Section 6, Executive will be deemed not to have accepted the terms of this
Agreement, and neither Executive nor the Company shall be bound by any Section of this Agreement.

     E. In consideration of the Executive’s execution of this Agreement and the obligations as set
forth herein upon Executive, the Company, for and on behalf of itself and its assigns, hereby
waives and releases any common law, statutory or other complaints, claims, demands, expenses,
damages, liabilities, charges or causes of action arising out of or relating to Executive’s
employment or termination of employment with, or his serving in any capacity in respect of, or
Executive’s status at any time as a holder of any securities of, any member of the Company Group,
both known and unknown, in law or in equity, which the Company may now have or ever had against
Executive, including his successors and assigns up to and including the date of Executive’s
execution of this Agreement,

7. Availability of Relief.

     A. In the event that Executive fails to abide by any of the terms of this Agreement, the
Company may, in addition to any other remedies it may have, immediately cease any benefits or
payments that are subsequently due under this Agreement, without waiving the release granted
herein.

     B. Executive acknowledges and agrees that the remedy at law available to the Company for
breach of his post-termination obligations under Section 6 of this Agreement, as well as the
surviving provisions of the Employment Agreement, would be inadequate and that damages flowing from
such a breach may not readily be susceptible to being measured in monetary terms. Accordingly,
Executive acknowledges, consents and agrees that, in addition to any other rights or remedies which
the Company may have at law, in equity or under this Agreement, upon adequate proof (to the
satisfaction of the arbitrator or court adjudicating such matter) of his violation of any such
provision of this Agreement, the Company shall be entitled to immediate injunctive relief and may
obtain a temporary order restraining any threatened or further breach, without the necessity of
proof of actual damage and without the requirement of posting a bond.

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8. Non-Disparagement.

The parties agree not to engage in any form of conduct or to make any statements or representations
that disparage or otherwise impair the reputation, goodwill or commercial interests of Executive,
the Company or the Company Group.

9. Remedies for Breach.

Executive understands and agrees that a breach of this Agreement or the covenants referenced in
Sections 9 and 10 of the Employment Agreement will result in immediate and irreparable injury to
the Company. Executive, therefore, agrees that, in addition to any remedy Executive may have under
the Agreement, the Employment Agreement, or applicable law, the Company shall be entitled to a
forfeiture of any amounts still due and owing to Executive under the terms of this Agreement or the
Employment Agreement. Nothing herein shall be construed as prohibiting the Company from pursuing
any other remedies for any breach.

10. Miscellaneous.

     A. Notices. All notices required or permitted by this Agreement to be given to any
party shall be in writing and shall be delivered personally, or sent by certified mail, return
receipt requested, or by Federal Express or similar overnight service, prepaid recorded delivery,
addressed as follows:

If to Executive:

Michael Seedman

1436 Waverly Road

Highland Park, IL 60035

If to the Company:

MedQuist Holdings Inc.

9009 Carothers Parkway, Suite C-2

Franklin, TN 37067

Attention: General Counsel

and shall be deemed to have been duly given when so delivered personally or, if mailed or sent by
overnight courier, upon delivery; provided, that, a refusal by a party to accept
delivery shall be deemed to constitute receipt.

     B. Successors. This Agreement shall be binding upon and inure to the benefit of the
Parties, their respective heirs, successors and assigns.

     C. Taxes. Executive shall be responsible for the payment of any and all required
federal, state, local and foreign taxes incurred, or to be incurred, in connection with any amounts
payable, or benefits provided, to Executive under this Agreement. Notwithstanding any other

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provision of this Agreement, the Company may withhold from amounts payable under this
Agreement all federal, state, local and foreign taxes that are required to be withheld by
applicable laws and regulations with respect to any amounts payable, or benefits provided, to
Executive under this Agreement and report on any applicable federal, state, local or foreign tax
reporting form any income to Executive determined by the Company as resulting from such amounts
payable or benefits provided hereunder.

     D. Severability. In the event that any provision of this Agreement is determined to
be invalid or unenforceable, the remaining terms and conditions of this Agreement shall be
unaffected and shall remain in full force and effect. In addition, if any provision is determined
to be invalid or unenforceable due to its duration and/or scope, the duration and/or scope of such
provision, as the case may be, shall be reduced, such reduction shall be to the smallest extent
necessary to comply with applicable law, and such provision shall be enforceable, in its reduced
form, to the fullest extent permitted by applicable law.

     E. Non-Admission. Nothing contained in this Agreement shall be deemed or construed as
an admission of wrongdoing or liability on the part of Executive or on the part of the Company or
any Company Releasee.

     F. Governing Law; Dispute Resolution. This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of New York, without regard to
principles of conflicts of law which could cause the application of the laws of any jurisdiction
other than the State of New York.

     G. Counterparts. This Agreement may be executed by one or more of the Parties hereto
on any number of separate counterparts and all such counterparts shall be deemed to be one and the
same instrument. Each Party hereto confirms that any facsimile or PDF copy of such Party’s
executed counterpart of this Agreement (or its signature page thereof) shall be deemed to be an
executed original thereof.

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IN WITNESS WHEREOF, the parties have executed and agreed to this Agreement as of the dates set
forth below each party’s signature below.

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	  	/s/ Michael Seedman
 	 
	 	 	Michael Seedman 	 
	 
	 	Date: August 2,  2011	 
	 
	 	MEDQUIST HOLDINGS INC.

 	 
	 	By:  	/s/ Mark R. Sullivan
 	 
	 	 	Name:  	Mark R. Sullivan 	 
	 	 	Title:  	General Counsel & Chief Compliance Officer 	 
	 
	 	Date:  August 2, 2011 

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