Document:

Exhibit 10.12

February 9, 2005

Adele T. Barbato

514 Carriage House Lane

Harleysville, PA 19438

Dear Adele:

On behalf of MedQuist Inc. (the “Company”),
this Agreement describes the terms of your new employment as the Company’s
Senior Vice-President Human Resources, which must commence on a date mutually
agreed to in writing by you and the Company (the “Employment Commencement
Date”).  For purposes of this
Agreement, you are referred to as the “Employee.”  Other capitalized terms used in this Agreement
have the meanings defined in Section 7, below.

1.             Term.  The Company shall employ Employee hereunder
for a three (3) year term commencing on the Employment Commencement Date hereof
(the “Term”), which Term will be automatically extended for additional
one (1) year periods beginning on the third anniversary of the Employment
Commencement Date and upon each subsequent anniversary thereof unless either
party provides the other party with at least ninety (90) days’ prior written
notice of its intention not to renew this Agreement unless terminated earlier
pursuant to Sections 3 or 5 of this Agreement.

2.             Consideration.

a.             Compensation.  As consideration for all services rendered by
Employee to the Company and for the Covenants contained herein, Employee will
be entitled to:

(1)           base
salary at an annual rate of $220,000;

(2)           signing
bonus of $70,000 to be paid as follows: $45,000 to be paid within thirty (30)
days of Employment Commencement Date and the remaining $25,000 to be paid on
the twelve (12) month anniversary of the Commencement Date.  In the event that you voluntarily resign from
the Company within your first 12 months of employment, this signing bonus must
be repaid on a pro rata basis;

(3)           participate
in MedQuist’s Management Bonus Plan for 2005. 
Your target bonus in this plan will be 40% of your base salary for 2005
and following years.  The target bonus is
the payment amount that the Employee shall be eligible to receive if the
Company and Employee both attain the pre-established bonus plan target
objectives.  The actual bonus award may
be higher or lower than the target bonus amount based upon achievement of the
objectives by Employee and the Company. 
Management Bonus Plan target objectives shall be developed on or before
February 28th of each year of the Management Bonus Plan;

 

 

(4)           participate
in the same employee benefit plans available generally to other full-time
employees of the Company, subject to the terms of those plans (as the same may
be modified, amended or terminated from time to time); (benefits information
package enclosed);

(5)           if
Employee’s employment is terminated by the Company without Cause the severance
pay and benefits are described below in Section 5.

b.             Long
Term Incentives.  In addition, from
time to time, the Board may review the performance of the Company and Employee
and, in its sole discretion, may grant stock options, shares of restricted
stock or other equity-based incentives to Employee to reward extraordinary
performance and/or to encourage Employee’s future efforts on behalf of the
Company.  The grant of any such equity
incentives will be subject to the terms of the Company’s equity-based plans and
will be evidenced by a separate award agreement by and between the Company and
Employee.

(1)           Upon
joining MedQuist, you will become entitled to a special stock option grant of
10,000 shares of non-qualified stock options (“Special Option Grant”) to
purchase Company common stock, no par value (“Common Stock”), pursuant
to the Company’s Stock Option Plan adopted May 29, 2002 (the “Option Plan”).  The grant date of the Special Option Grant
will not occur until after the Company becomes current in its reporting
obligations under the Securities and Exchange Act of 1934; provided that you
are still an employee on the grant date. 
The option price for the Special Option Grant shall be equal at least to
the fair market value of the Company’s Common Stock as of the grant date.  The Special Option Grant will be subject to
all of the terms and conditions of the Option Plan and the Stock Option Agreement
that will be issued if and when the grant becomes effective.  Your right to exercise the option will vest
in equal 20% installments on each of the first five (5) anniversaries of the
grant date.  In the event of a “Change
of Control” (as defined below) of the Company while you are an employee,
your Special Option Grant may, from and after the date which is six months
after the Change of Control (but not beyond the expiration date of the option),
be exercised for up to 100% of the total number of shares then subject to the
Special Option Grant minus the number of shares previously purchased upon
exercise of such option (as adjusted for any change in the outstanding shares
of the Common Stock of the Company in accordance with the terms of the Option Plan)
and your vesting date will accelerate accordingly.  A “Change of Control” shall be deemed to have
occurred upon the happening of any of the following events:

(i)            A
change within a twelve-month period in the holders of more than 50% of the
outstanding voting stock of the Company; or

(ii)           Any
other event deemed to constitute a “Change of Control” by the Company’s Board
of Directors.

(2)           Contingent
upon Employee’s continued attainment of performance objectives, the Company
agrees to deliver a long term incentive value of $60,000 annually through one
of the following, as determined in the Company’s sole discretion:  (i) a stock option grant pursuant to the
Option Plan, (ii) a restricted stock grant or (iii) a cash-based

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long term incentive
program to be developed.  The long term
incentive value of Company stock will be calculated based on an industry
accepted stock valuation methodology.

(3)           Employment
At-Will.  Nothing contained in this
Agreement is intended to create an employment relationship whereby Employee
will be employed other than as an “at-will” employee.  Employee’s employment by the Company may be
terminated by Employee or the Company at any time; provided, however, that
while employed by the Company, the terms and conditions of Employee’s employment
by the Company will be as herein set forth; and provided further, that Section
4 of this Agreement will survive the termination of Employee’s employment.

3.             Covenants.

a.             Non-Solicitation.  While employed by the Company and for the
eighteen (18) month period following the cessation of that employment for any
reason (and without regard to whether such cessation was initiated by Employee
or the Company), Employee will not do any of the following without the prior
written consent of the Company:

(1)           solicit,
entice or induce, either directly or indirectly, any person, firm or
corporation who or which is a client or customer of the Company or any of its
subsidiaries to become a client or customer of any other person, firm or
corporation;

(2)           influence
or attempt to influence, either directly or indirectly, any customer of the
Company or its subsidiaries to terminate or modify any written or oral
agreement or course of dealing with the Company or its subsidiaries (except in
Employee’s capacity as an employee of the Company); or

(3)           influence
or attempt to influence, either directly or indirectly, any person to terminate
or modify any employment, consulting, agency, distributorship, licensing or
other similar relationship or arrangement with the Company or its subsidiaries
(except in Employee’s capacity as an employee of the Company).

b.             Non-Disclosure.  Employee shall not use for Employee’s
personal benefit, or disclose, communicate or divulge to, or use for the direct
or indirect benefit of any person, firm, association or company other than
Company, any “Confidential Information,” which term shall mean any
information regarding the business methods, business policies, policies,
procedures, techniques, research or development projects or results, historical
or projected financial information, budgets, trade secrets, or other knowledge
or processes of, or developed by, Company or any other confidential information
relating to or dealing with the business operations of Company, made known to
Employee or learned or acquired by Employee while in the employ of Company, but
Confidential Information shall not include information otherwise lawfully known
generally by or readily accessible to the general public.  The foregoing provisions of this subsection
shall apply during and after the period when the Employee is an employee of the
Company and shall be in addition to (and not a limitation of) any legally
applicable protections of Company interest in confidential information, trade
secrets, and the like.  At the termination
of Employee’s employment with Company, Employee shall return to the

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Company all copies of
Confidential Information in any medium, including computer tapes and other
forms of data storage.

c.             Non-Competition.  While employed by the Company and for the
eighteen (18) month period following the cessation of that employment for any
reason (and without regard to whether such cessation was initiated by Employee
or the Company), Employee shall not directly or indirectly engage in (as a
principal, shareholder, partner, director, officer, agent, employee, consultant
or otherwise) or be financially interested in any business which is involved in
business activities which are the same as or in direct competition with
business activities carried on by the Company, or being definitively planned by
the Company at the time of termination of Employee’s employment.  Nothing contained in this subsection shall
prevent Employee from holding for investment up to three percent (3%) of any
class of equity securities of a company whose securities are publicly traded on
a national securities exchange or in a national market system.

d.             Intellectual
Property & Company Creations.

(1)           Ownership.  All right, title and interest in and to any
and all ideas, inventions, designs, technologies, formulas, methods, processes,
development techniques, discoveries, computer programs or instructions (whether
in source code, object code, or any other form), computer hardware, algorithms,
plans, customer lists, memoranda, tests, research, designs, specifications,
models, data, diagrams, flow charts, techniques (whether reduced to written
form or otherwise), patents, patent applications, formats, test results,
marketing and business ideas, trademarks, trade secrets, service marks, trade
dress, logos, trade names, fictitious names, brand names, corporate names,
original works of authorship, copyrights, copyrightable works, mask works,
computer software, all other similar intangible personal property, and all
improvements, derivative works, know-how, data, rights and claims related to
the foregoing that have been or are conceived, developed or created in whole or
in part by the Employee (a) at any time and at any place that relates directly
or indirectly to the business of the Company, as then operated, operated in the
past or under consideration or development or (b) as a result of tasks assigned
to Employee by the Company (collectively, “Company Creations”), shall be and
become and remain the sole and exclusive property of the Company and shall be
considered “works made for hire” as that term is defined pursuant to applicable
statutes and law.

(2)           Assignment.  To the extent that any of the Company
Creations may not by law be considered a work made for hire, or to the extent
that, notwithstanding the foregoing, Employee retains any interest in or to the
Company Creations, Employee hereby irrevocably assigns and transfers to the
Company any and all right, title, or interest that Employee has or may have,
either now or in the future, in and to the Company Creations, and any
derivatives thereof, without the necessity of further consideration.  Employee shall promptly and fully disclose all
Company Creations to the Company and shall have no claim for additional
compensation for Company Creations.  The
Company shall be entitled to obtain and hold in its own name all copyrights,
patents, trade secrets, trademarks, and service marks with respect to such
Company Creations.

(3)           Disclosure
& Cooperation.  Employee shall
keep and maintain adequate and current written records of all Company Creations
and their development

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by Employee (solely or
jointly with others), which records shall be available at all times to and
remain the sole property of the Company. 
Employee shall communicate promptly and disclose to the Company, in such
form as the Company may reasonably request, all information, details and data
pertaining to any Company Creations. 
Employee further agrees to execute and deliver to the Company or its
designee(s) any and all formal transfers and assignments and other documents
and to provide any further cooperation or assistance reasonably required by the
Company to perfect, maintain or otherwise protect its rights in the Company
Creations.  Employee hereby designates and
appoints the Company or its designee as Employee’s agent and attorney-in-fact
to execute on Employee’s behalf any assignments or other documents deemed
necessary by the Company to perfect, maintain or otherwise protect the Company’s
rights in any Company Creations. 

e.             Acknowledgments.  Employee acknowledges that the Covenants are
reasonable and necessary to protect the Company’s legitimate business
interests, its relationships with its customers, its trade secrets and other
confidential or proprietary information. 
Employee further acknowledges that the duration and scope of the
Covenants are reasonable given the nature of this Agreement and the position
Employee holds or will hold within the Company. 
Employee further acknowledges that the Covenants are included herein to
induce the Company to enter into this Agreement and that the Company would not
have entered into this Agreement or otherwise employed or continued to employ
the Employee in the absence of the Covenants. 
Finally, Employee also acknowledges that any breach, willful or
otherwise, of the Covenants will cause continuing and irreparable injury to the
Company for which monetary damages, alone, will not be an adequate remedy.

f.              Enforcement.

(1)           If
any court determines that the Covenants, or any part thereof, is unenforceable
because of the duration or scope of such provision, that court will have the
power to modify such provision and, in its modified form, such provision will
then be enforceable.

(2)           The
parties acknowledge that significant damages will be caused by a breach of any
of the Covenants, but that such damages will be difficult to quantify.  Therefore, the parties agree that if Employee
breaches any of the Covenants, liquidated damages will be paid by Employee in
the following manner:

(i)            any
Company stock options, stock appreciation rights, restricted stock units or
similar equity incentives then held by Employee, whether or not then vested,
will be immediately and automatically forfeited;

(ii)           any
shares of restricted stock issued by the Company, then held by Employee or her
permitted transferee and then subject to forfeiture will be immediately and
automatically forfeited; and

(iii)          any
obligation of the Company to provide severance pay or benefits (whether
pursuant to Section 5 or otherwise) will cease.

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(3)           In
addition to the remedies specified in Section 4(f)(2) and any other
relief awarded by any court, if Employee breaches any of the Covenants:

(i)            Employee
will be required to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits derived or received by
Employee as a result of any such breach; and

(ii)           the
Company will be entitled to injunctive or other equitable relief to prevent
further breaches of the Covenants by Employee.

(4)           If
Employee breaches Section 4, then the duration of the restriction
therein contained will be extended for a period equal to the period that
Employee was in breach of such restriction.

4.             Termination.  Employee’s employment by the Company may be
terminated at any time.  Upon termination,
Employee will be entitled to the payment of accrued and unpaid salary through
the date of such termination.  All
salary, commissions and benefits will cease at the time of such termination,
subject to the terms of any benefit plans then in force or enforceable under
applicable law and applicable to Employee, and the Company will have no further
liability or obligation hereunder by reason of such termination; provided,
however, that subject to Section 4(f)(2)(iii), if Employee’s employment
is terminated by the Company without Cause Employee will be entitled to (a)
continued payment of her base salary (at the rate in effect upon termination)
for a period of 12 months; (b) a payment equal to the average of the last three
bonuses from the MedQuist Management Bonus Plan received by Employee.  In the event that there are not three full
years of employment, then the average of the last two years will apply.  If less than two years, the target bonus will
be paid; and notwithstanding the foregoing, no amount will be paid or benefit
provided under this Section 5 unless and until (x) Employee executes and
delivers a general release of claims against the Company and its subsidiaries
in a form prescribed by the Company, and (y) such release becomes
irrevocable.  Any severance pay or
benefits provided under this Section 5 will be in lieu of, not in
addition to, any other severance arrangement maintained by the Company.

5.             Miscellaneous.

a.             Other
Agreements.  Employee represents and
warrants to the Company that there are no restrictions, agreements or
understandings whatsoever to which she is a party that would prevent or make
unlawful her execution of this Agreement, that would be inconsistent or in
conflict with this Agreement or Employee’s obligations hereunder, or that would
otherwise prevent, limit or impair the performance by Employee of her duties to
the Company.

b.             Entire
Agreement; Amendment.  This Agreement
contains the entire agreement and understanding of the parties hereto relating
to the subject matter hereof, and merges and supersedes all prior and
contemporaneous discussions, agreements and understandings of every nature
relating to the employment of Employee by the Company.  This Agreement may not be changed or modified,
except by an agreement in writing signed by each of the parties hereto.

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c.             Waiver.  Any waiver of any term or condition hereof
will not operate as a waiver of any other term or condition of this
Agreement.  Any failure to enforce any
provision hereof will not operate as a waiver of such provision or of any other
provision of this Agreement.

d.             Governing
Law.  This Agreement shall be
governed by, and enforced in accordance with, the laws of the State of New
Jersey without regard to the application of the principles of conflicts of
laws.

e.             Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or the effectiveness or validity of any provision in any
other jurisdiction, and this Agreement will be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been herein contained.

f.              Wage
Claims.  The parties intend that all
obligations to pay compensation to Employee be obligations solely of the
Company.  Therefore, intending to be
bound by this provision, Employee hereby waives any right to claim payment of
amounts owed to her, now or in the future, from directors or officers of the
Company in the event of the Company’s insolvency.

g.             Successors
and Assigns.  This Agreement is
binding on the Company’s successors and assigns.

h.             Section
Headings.  The section headings in
this Agreement are for convenience only; they form no part of this Agreement
and will not affect its interpretation.

i.              Counterparts.  This Agreement may be executed in multiple
counterparts, each of which will be deemed to be an original and all of which
together will constitute but one and the same instrument.

6.             Definitions.  Capitalized terms used herein will have the
meanings below defined:

a.             “Business”
means electronic transcription services and other health information management
solutions services businesses in which the Company or its subsidiaries are
engaged anywhere within the United States.

b.             “Cause”
means the occurrence of any of the following: (1) Employee’s refusal, willful
failure or inability to perform (other than due to illness or disability) her
employment duties or to follow the lawful directives of her superiors; (2)
misconduct or gross negligence by Employee in the course of employment; (3)
conduct of Employee involving any type of disloyalty to the Company or its
subsidiaries, including, without limitation: fraud, embezzlement, theft or
dishonesty in the course of employment; (4) a conviction of or the entry of a
plea of guilty or nolo contendere to a crime involving moral turpitude or that
otherwise

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could reasonably be
expected to have an adverse effect on the operations, condition or reputation
of the Company, (5) a material breach by Employee of any agreement with or fiduciary
duty owed to the Company; or (6) alcohol abuse or use of controlled drugs other
than in accordance with a physician’s prescription.

c.             “Covenants”
means the covenants set forth in Section 4 of this Agreement.

To acknowledge your agreement to and acceptance of the
terms and conditions of this Agreement, please sign below in the space provided
within five (5) days of the date of this Agreement and return a singed copy to
my attention.  If the Agreement is not
signed and returned within (5) days, the terms and conditions of this Agreement
will be deemed withdrawn.

	
  

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  MEDQUIST INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Howard Hoffmann

  	
   

  
	
   

  	
   

  	
  Howard Hoffmann

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and
  Agreed:

  	
   

  
	
   

  	
   

  
	
  /s/ Adele T.
  Barbato

  	
   

  	
   

  
	
  Adele T. Barbato

  	
   

  
					

 

 8Exhibit 10.13

SEPARATION AGREEMENT AND GENERAL
RELEASE

This Separation Agreement and General Release (“Agreement”)
is hereby entered into by Frank W. Lavelle (“LAVELLE”) and MedQuist Inc.,
together with its parents, subsidiaries, divisions, affiliates, related
companies, predecessors and successors (“MEDQUIST”).

1.             Departure Date. 
LAVELLE’s employment with MEDQUIST ended effective May 14, 2007 (the “Departure
Date”).  As of the Departure Date, all
titles, duties, responsibilities and authority assigned to LAVELLE as an
officer of MEDQUIST ended.

2.             Termination of Employment Agreement/Survival of
Certain Provisions.  As of the
Departure Date, LAVELLE understands and agrees that the February 24, 2005
Employment Agreement between LAVELLE and MEDQUIST, as amended February 12, 2007
(collectively, the “Employment Agreement”), was terminated, except as may
otherwise be provided for in the Employment Agreement or as may be required by
operation of law.  Without limiting the
foregoing, LAVELLE understands and agrees that the covenants and enforcement
provisions of Section 4 of the Employment Agreement shall remain in effect in
accordance with their terms.  Again
without limiting the foregoing, LAVELLE and MEDQUIST additionally agree that
the provisions of Section 6(e) of the Employment Agreement shall remain in
effect in accordance with their terms, and the terms of any applicable
insurance policy.  True and correct
copies of the Employment Agreement documents are attached hereto as Exhibits A
and B.

3.             No Future MedQuist Employment.  LAVELLE understands and agrees that: (a) he
has no intention of applying for and will not apply for or otherwise seek
reemployment or reinstatement with MEDQUIST; and (b) MEDQUIST has no obligation
to reinstate, rehire, reemploy or hire LAVELLE at any time in the future.

4.             Consideration. 
In consideration for LAVELLE entering into this Agreement and fully
abiding by its terms,
and assuming LAVELLE has not revoked the Agreement as described in Paragraph 18
below, MEDQUIST agrees to provide LAVELLE with the following consideration:

(a)           Separation Benefit. 
The separation benefits set forth in Section 5(b)  of the Employment Agreement;

(i)            With
respect to such benefits, the parties agree that for purposes of Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), separation
benefits paid pursuant to Paragraph 4(a) above, (x) to the extent of payments
made from the date of separation of LAVELLE’S employment through March 14th of
the calendar year following such separation, are intended to constitute
separate payments for purposes of Section l.409A-2(b)(2) of the Treasury
Regulations and thus payable pursuant to the “short-term deferral” rule set
forth in Section 1.409A-1(b)(4) of the Treasury Regulations; and (y) to the
extent such payments are made following said March 14th, they are intended to
constitute separate payments for purposes of Section 1.409A-2(b)(2) of the
Treasury Regulations made upon a separation from service and payable pursuant
to Section l.409A—1(b)(9)(iii) of the Treasury Regulations, to the maximum
extent permitted by said provision. The parties agree that

all amounts payable
pursuant to Section 5(b)(l) of the employment
agreement that are to be paid prior to the date which is six months after the date of separation of
LAVELLE’S employment are amounts that meet the requirements of clause (x)
above.  If the parties determine that
payments (other than those described in clause (x) and (y) of the initial
sentence of this Paragraph 4(a)(i)) hereunder fail to satisfy the distribution
requirement of Section 409A(a)(2)(A) of the Code, the payment of such benefit
shall be delayed to the minimum extent necessary so that such payments are not
subject to the provisions of Section 409A(a)(l) of the Code.

(ii)           The parties additionally agree that the reimbursement for
costs incurred in obtaining outplacement services pursuant to Section 5(b)(2)  of the Employment Agreement shall only be for costs
incurred during the limited period described in Section 1.409A-1(b)(9)(v)(E) of
the Treasury Regulations and be paid in accordance with such regulation.

(b)           Response to Inquiries.  MEDQUIST agrees that, in response to any
inquiries regarding LAVELLE’s departure, it will only provide the information
set forth in MEDQUIST’s May 14, 2007 press release regarding LAVELLE’s
departure from MEDQUIST, a true and correct copy of which is attached hereto as
Exhibit C.  LAVELLE shall direct any
inquiries to Donna Jack at (856) 206-4905
or djack@medquist.com.

5.             No Other Compensation or Benefits Owing.  LAVELLE understands and agrees that, except
as otherwise provided for in this Agreement and as may be required by the
Employment Agreement, LAVELLE is not and will not be due any other compensation
or benefits from MEDQUIST.

6.             Release by LAVELLE.  In consideration of the compensation,
benefits and agreements provided for pursuant to this Agreement and the
Employment Agreement, the sufficiency of which is hereby acknowledged, LAVELLE,
for himself and for any person who may claim by or through him, releases and
forever discharges MEDQUIST, and its past, present and future parents,
subsidiaries, divisions, affiliates, related companies, predecessors,
successors, officers, directors, attorneys, agents, and employees (the “Releasees”),
from any and all claims or causes of action that LAVELLE had, has or may have,
relating to LAVELLE’S employment with and/or separation from MEDQUIST, up until
the date of this Agreement, including, but not limited to, any claims arising
under Title VII of the Civil Rights Act of 1964, as amended, Section 1981 of
the Civil Rights Act of 1866, as amended, the Civil Rights Act of 1991, as
amended, the Family and Medical Leave Act, the Age Discrimination in Employment
Act, as amended by the Older Workers Benefit Protection Act of 1990 (“ADEA”),
the Americans with Disabilities Act, the Employee Retirement Income Security
Act (“ERISA); claims under any other federal, state or local statute,
regulation or ordinance; claims for discrimination or harassment of any kind,
breach of contract or public policy, wrongful or retaliatory discharge,
defamation or other personal or business injury of any kind; claims for breach
of any agreement between LAVELLE and MEDQUIST or for any compensation or
benefits provided for pursuant to any such agreement; and any and all other
claims to any form of legal or equitable relief or damages; any other claims
for compensation or benefits; or any claims for attorneys’ fees or costs.

 

7.             Exclusion for Certain Claims.  LAVELLE and MEDQUIST understand and agree
that the release in Paragraph 6 shall not apply to any claims, including any
claims under ADEA, arising after the effective date of this Agreement, nor
shall anything herein prevent any party from instituting any action to enforce
the terms of this Agreement.

8.             Exclusion of Filing EEOC Charges/Waiver of Individual
Recovery.  LAVELLE and MEDQUIST
understand and agree that nothing in this Agreement shall prevent LAVELLE from
filing a charge with the Equal Employment Opportunity Commission (“EEOC”), or
from participating in any EEOC investigation or proceeding; provided, however,
that LAVELLE waives any and all rights to recover any individual
damages or relief in connection with any
EEOC investigation or proceeding.

9.             Disclosure of Any Material Information.  As of the date LAVELLE signs this Agreement,
LAVELLE represents and
warrants that he has disclosed to MEDQUIST any information in his possession concerning any conduct involving MEDQUIST that he
has any reason to believe may be unlawful, violates any MEDQUIST policy or
would otherwise reflect poorly on MEDQUIST in any respect.

10.           Duty
to Cooperate.  LAVELLE understands
and agrees that he shall
cooperate fully with MEDQUIST regarding any matter, including, but not limited
to, any litigation, investigation, governmental proceeding or internal MEDQUIST
review, which relates to any matter in which LAVELLE was involved or concerning
which MEDQUIST reasonably determines LAVELLE may have responsive or relevant
information.  LAVELLE further understands
and agrees that such cooperation includes, but is not limited to, full
disclosure of all relevant information; truthfully testifying and/or answering
questions; and making himself reasonably available for interviews, depositions
or court appearances in connection with any such litigation, investigation,
proceeding or internal MEDQUIST review. 
LAVELLE understands and agrees that he shall render any such cooperation
in a timely manner and at such
times and places as may be
mutually agreeable to LAVELLE and MEDQUIST.  Upon submission of appropriate documentation,
MEDQUIST shall reimburse LAVELLE for reasonable travel, lodging, meals, and telecommunications expenses incurred by LAVELLE in connection with
his compliance with this Paragraph. 
Except as may be prohibited by operation of law, LAVELLE understands and
agrees that he shall immediately
notify MEDQUIST if he is contacted for an interview or receives a subpoena or
request for information in any matter related to or concerning his employment
with MEDQUIST.  LAVELLE further understands and agrees
that he will not initiate any communication or respond to any inquiry
with a member of the press regarding his employment with MEDQUIST, and will
refer any such inquiry to MEDQUIST.

11.           Return of Property.  LAVELLE represents and warrants that as of the date he signs
this Agreement he has returned all property of MEDQUIST, regardless of the type
or medium (i.e., hard or flash drive, computer disk, CD-ROM, DVD-ROM) upon
which it is maintained, including, but not limited to, all customer lists,
vendor lists, business plans and strategies,
financial data or reports, memoranda, correspondence, software, contract terms,
compensation and commission
plans, and any other documents
pertaining to the business of MEDQUIST, or its customers or vendors, as well as
any credit cards, keys,
identification cards, and any other documents, writings and materials that LAVELLE came to possess or
otherwise acquired as a result of and/or in connection with LAVELLE’s
employment with MEDQUIST.

Should LAVELLE later find any MEDQUIST property in LAVELLE’s possession,
LAVELLE agrees to immediately return it. 
LAVELLE further agrees
not to maintain any copies of said property or make any copies of said property available to any
third party.

12.           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 LAVELLE or MEDQUIST; provided,
however, that nothing in this Paragraph shall prohibit LAVELLE from lawfully
responding to any inquiry in connection with a government investigation or
proceeding, or in response to a lawfully-issued subpoena that is served upon
LAVELLE, requiring him to give testimony.

13.           Remedies for Breach.  LAVELLE understands and agrees that a breach
of this Agreement or any provision of the Employment Agreement that survives
its expiration will result in immediate and irreparable injury to MEDQUIST.  LAVELLE, therefore, agrees that, in addition to
any remedy MEDQUIST may have under the Agreement, the Employment Agreement, or
applicable law, MEDQUIST shall be entitled to a forfeiture of any amounts still
due and owing to LAVELLE under the terms of this Agreement or the Employment
Agreement.  Nothing herein shall be
construed as prohibiting MEDQUIST from pursuing any other remedies for any
breach.

14.           Non-Admission by MedQuist.  LAVELLE understands and agrees
that this Agreement shall
not be deemed or construed as an
admission of liability by MEDQUIST for any purpose.  Specifically,
but without limiting the foregoing, LAVELLE understands and agrees that this Agreement shall not constitute an admission that any action by MEDQUIST relating
to LAVELLE was in any way wrongful or unlawful.  LAVELLE further agrees that nothing contained in this Agreement can be used by
LAVELLE, or any other individual in any way
as precedent for future dealings
with MEDQUIST, or any of its officers, directors, attorneys, agents or
employees.

15.           General.

(a)           Severability.  If any provision of this Agreement is found by a court of competent
jurisdiction to be unenforceable, in whole or in part, then that provision will be eliminated, modified or
restricted in whatever manner is necessary to make the remaining provisions
enforceable to the maximum extent allowable by law.

(b)           Successors. 
This Agreement shall be binding upon, enforceable by, and inure to the
benefit of LAVELLE, MEDQUIST and each Releasee, and LAVELLE’s and MEDQUIST’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees, and to any successor or assign of
each Releasee, but neither this Agreement, nor any rights, payments, or
obligations arising hereunder may be assigned, pledged, transferred, or
hypothecated by LAVELLE or MEDQUIST.

(c)           Controlling Law and Venue. 
This Agreement shall be construed and enforced under the laws of and
before the courts of the State of New Jersey.  Any action relating to this Agreement
or the Employment Agreement shall be brought in state court in Burlington
County, New Jersey, or in Federal Court for the District of New Jersey.

 

(d)           Waiver.  No claim or right arising out of a
breach or default under this Agreement can
be discharged by a waiver of that claim or right unless the waiver is in writing signed by the party hereto to be bound by such
waiver.  A waiver by any party hereto of a breach or default by another party of any provision of this Agreement shall not be deemed
a waiver of future compliance therewith and such provision
shall remain in full force and
effect.

(e)           Notices.  All
notices, requests, demands and other communications regarding this Agreement
shall be in writing and delivered in person or sent by Registered or Certified
U.S.  Mail, Postage Prepaid, Return
Receipt Requested, and properly addressed as follows:

	
  

  	
  To MEDQUIST:

  	
   

  	
  MedQuist Inc.

  
	
   

  	
   

  	
   

  	
  1000 Bishops
  Gate Boulevard

  
	
   

  	
   

  	
   

  	
  Suite 300

  
	
   

  	
   

  	
   

  	
  Mt. Laurel, NJ
  08054-4632

  
	
   

  	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To LAVELLE:

  	
   

  	
  Frank W. Lavelle

  
	
   

  	
   

  	
   

  	
  4 Iddings Lane

  
	
   

  	
   

  	
   

  	
  Newtown Square,
  PA 19073

  
	
   

  	
   

  	
   

  	
   

  

16.           Entire Agreement/Amendment.  The parties hereto agree that this Agreement
and those provisions of the Employment Agreement that survive its expiration
constitutes the entire agreement between LAVELLE and MEDQUIST, and that neither
may be modified except by written document, signed by the parties hereto.

17.           Knowing and Voluntary Action.  LAVELLE acknowledges that he received this
Agreement on May 14, 2007 and has consulted an attorney before signing this
Agreement.  LAVELLE further represents
and warrants that he has read this Agreement, has been given a period of at
least twenty one (21) days to consider the Agreement; understands its meaning
and application; and is signing of his own free will with the intent of being
bound by it.  If LAVELLE elects to sign
this Agreement prior to the expiration of twenty one (21) days, he has done so
voluntarily and knowingly.

18.           Revocation of Agreement.  LAVELLE further acknowledges that he may
revoke this Agreement at any time within a period of seven (7) days following
the date he signs the Agreement.  Notice
of revocation shall be made in writing, sent via Registered or Certified
U.S.  Mail, Postage Prepaid, Return
Receipt Requested and properly addressed to MEDQUIST in accordance with
Paragraph 15 above.  Such revocation must
be received by MEDQUIST by the close of business of the first day following the
end of the seven-day revocation period. 
This Agreement shall not become effective until after the time period
for revocation has expired.

THIS SPACE LEFT
INTENTIONALLY BLANK

IN WITNESS WHEREOF, the parties have
executed and agreed to this Agreement consisting of
 six (6)  pages.

	
  

  	
   

  	
  FRANK W. LAVELLE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Frank W.
  Lavelle

  	
   

  
	
   

  	
   

  	
  Date: June 17,
  2007

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEDQUIST INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Howard
  Hoffmann

  	
   

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
  Date: June 28,
  2007

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"}]]