Document:

exv10w30

Exhibit 10.30

June 24, 2010

Anthony D. James

c/o MedQuist Inc.

1000 Bishops Gate Blvd., Suite 300

Mount Laurel, NJ 08064

Dear Anthony:

     On behalf of MedQuist Inc. (the “Company”), this Agreement describes the terms of the
change in your employment status with the Company, to be the Company’s Co-Chief Operating Officer,
reporting directly the Company’s CEO and commencing on June 24, 2010 (the “Change in
Employment Status Commencement Date”). In Employee’s role as Co-Chief Operating Officer, among
other things, he shall manage the Company’s global medical transcription and medical editing
operations performed by the Company’s employees and authorized subcontractors. 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 6 , below.

     1.
Term and Location. The Company shall employ Employee hereunder for a three
(3) year term commencing on the Change in Employment Status Commencement Date hereof (the “Term”), which Term will be automatically extended for additional one (1) year periods
beginning on the third anniversary of the Change in Employment Status 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 Section 4 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 $270,000, which base salary will be reviewed
for increase from time to time during the Term at the discretion of the Company, but in no
circumstance will be lowered;

               (2) participate in MedQuist’s Management Incentive Plan for 2010. Your target
incentive in this plan will be 50% of your base salary for 2010 and following years; provided,
however that your incentive for 2010 shall be prorated based upon your date of hiring by the
Company – April 22, 2010. Your target incentive in the MedQuist’s Management Incentive Plan will be
reviewed for increase from time to time during the Term at the discretion of the Company, but in no
circumstance will be lowered. The target incentive is the payment amount that the Employee shall be
eligible to receive if the Company and Employee both attain the pre-established incentive plan
target objectives. The actual incentive award may be higher or lower than the target incentive
amount based upon achievement of the objectives by Employee and the Company. Management Incentive
Plan target objectives shall be developed on or before February 28th of each year of the Management
Incentive Plan;

               (3) 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); and

               (4) if Employee’s employment is terminated by the Company without Cause or by
Employee for Good Reason (as defined in Section 6 ) , the severance pay and benefits
described below in Section 4.

          b.
Long Term Incentives. The Board will provide a long term incentive to
Employee designed to reward extraordinary performance and/or to encourage Employee’s future efforts
on behalf of the Company. The grant of the long term incentive will be subject to the terms of the
Company’s long term incentive plan, and will be evidenced by a separate award agreement by and
between the Company and Employee.

     3.
Covenants.

          a.
Non-Solicitation. While employed by the Company and for the two (2) year
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

 

 

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 one (1) year
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 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 or other long term 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
his permitted transferee and then subject to forfeiture will be immediately and automatically
forfeited;

                    (iii) any obligation of the Company to provide severance pay or benefits (whether
pursuant to Section 4 or otherwise) will cease; and

               (3) In
addition to the remedies specified in Section  3(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 3, 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 3(f)(2) , if Employee’s employment is terminated by the Company without Cause or by
Employee for Good Reason, Employee will be entitled to continued payment of his base salary (at the
rate in effect upon termination) for a period of 12 months; and notwithstanding the foregoing, no
amount will be paid or benefit provided under this Section 4 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 4 will be in lieu of, not in
addition to, any other severance arrangement maintained by the Company. No severance benefits will
be paid to Employee in the event that Employee resigns his employment without Good Reason.

     5.
Miscellaneous.

          a.
Other Agreements. Employee represents and warrants to the Company that
there are no restrictions, agreements or understandings whatsoever to which he is a party that
would prevent or make unlawful his 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 his 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.

          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 him, 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.

          j.
Indemnification. Employee shall be indemnified for acts performed in good
faith as an officer, director or employee of the Company in the manner provided in the Company’s
charter and by-laws, and shall be covered by director and officer liability insurance coverage for
such acts to the same extent that any such coverage is provided to the Company’s executive
officers.

     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) his
employment duties or to follow the lawful directives of his 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 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 3 of this
Agreement.

          d. “Good Reason” shall mean (i) any substantial and sustained diminution of
Employee’s duties, including but not limited to the removal of Employee’s assigned division of the
Company’s operations or (ii) Employee not being assigned direct responsibility for the management
and oversight of the international transcription and editing operations of the Company and its
affiliates in the event that the Company, by acquisition, merger or otherwise, directly acquires
ownership of its international transcription and editing operations; provided that any of the
events described in clauses (i) and (ii) shall constitute Good Reason only if the Company fails to
cure such event within 15 days after receipt from Executive of written notice of the event which
constitutes Good Reason; provided, further, that “Good Reason” shall cease to exist for an event on
the 30th day following the later of its occurrence or Employee’s knowledge thereof, unless Employee
has given the Company written notice thereof prior to such date.

          To acknowledge your agreement to and acceptance of the terms and conditions of this Agreement,
please sign below in the space provided within two (2) days of the date of this Agreement and
return a signed copy to my attention. If the Agreement is not signed and returned within two (2)
days, the terms and conditions of this Agreement will be deemed withdrawn.

					
	 	

Sincerely,

MEDQUIST INC. 

 	 
	 	By:  	/s/ Peter Masanotti
 	 
	 	 	Peter Masanotti      	 
	 	 	President & CEO 	 

 

 

	 	 	 	 	 

					
	 	

Accepted and Agreed:

 	 
	 	/s/ Anthony D. James
 	 
	 	Anthony D. James 	 

Date Accepted: June 24, 2010exv10w31

Exhibit 10.31

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”), dated August 23, 2007, is entered into by and
between MedQuist Inc. (the “Company”), and [see schedule below] of the Company (“Indemnitee”).

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its subsidiaries as directors, officers
and in other capacities;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining
liability insurance for the directors, officers, employees and other agents of the Company, the
significant increases in the cost of such insurance and the general reductions and limitations in
the coverage of such insurance;

     WHEREAS, the Company and the Indemnitee further recognize the substantial increase in
corporate litigation in general, subjecting directors, officers, employees and other agents serving
corporations to expensive litigation risks at the same time as the availability and coverage of
liability insurance has been severely limited;

     WHEREAS, the Company has adopted bylaws (the “Bylaws”) providing for the indemnification of
directors,

 

 

officers, employees and other agents of the Company, including persons serving at the request
of the Company in such capacities with other corporations or enterprises, as authorized by New
Jersey law;

     WHEREAS, the Bylaws and New Jersey law, by their non-exclusive nature, permit agreements
between the Company and its directors, officers, employees and other agents with respect to
indemnification of such persons; and

     WHEREAS, in order to induce Indemnitee to continue to provide services to the Company as a
director, officer or in another capacity or capacities, the Company wishes to provide for the
indemnification of, and the advancement of expenses to, Indemnitee to the maximum extent now or
hereafter permitted by law;

     NOW, THEREFORE, the Company and Indemnitee hereby agree as follows.

1. Indemnification.

     (a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is
or was a party or is threatened to be made a party to any threatened, pending or completed action,
suit, proceeding or any arbitration or other alternative dispute resolution mechanism, whether
civil, criminal, administrative or investigative (other than an action by or in the right of the
Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of
the Company, or any subsidiary of the Company, or by reason of the fact that Indemnitee is or was
serving at the request of the Company as a director, officer, employee

 

 

or agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be unreasonably
withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or
proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that Indemnitee’s conduct was unlawful.

     (b) Proceedings By or in the Right of the Company. The Company shall indemnify
Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Company or any subsidiary of the
Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the Company, or by reason
of the fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, amounts
paid in settlement, actually and reasonably incurred by Indemnitee in connection with the defense
or settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company, except that no
indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall
have been adjudged to be liable to the Company unless and only to the extent that the New Jersey
court or the court in which such action or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee
is fairly and reasonably entitled to indemnity for such expenses which the New Jersey court or such
other court shall deem proper.

     (c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful
on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections
1(a) or (b) hereof, or in defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by
Indemnitee in connection therewith.

2. Advancement of Expenses; Notice; Indemnification Procedure.

     (a) Advancement of Expenses. The Company shall advance all expenses incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or
criminal action, suit or proceeding referenced in Section 1(a) or (b) hereof (but not amounts
actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby undertakes
to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined
that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

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     (b) Notice of Indemnification Claim; Cooperation by Indemnitee. Indemnitee shall, as
a condition precedent to his or her right to be indemnified under this Agreement, give the Company
notice in writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the Company shall be
directed to the General Counsel of the Company at the address indicated on the signature page of
this Agreement (or such other address as the Company shall designate in writing to Indemnitee).
Notice shall be deemed received as provided in Section 13 hereof. Indemnitee also shall provide the
Company such information and cooperation as the Company may reasonably require and as shall be
within Indemnitee’s power.

     (c) Indemnification Procedure. Any indemnification and/or advances provided for in
Sections 1 and 2 hereof shall be made no later than thirty (30) days after receipt of the written
request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision
of the Company’s Certificate of Incorporation or Bylaws providing for indemnification, is not paid
in full by the Company within thirty (30) days after a written request for payment thereof has
first been received by the Company, Indemnitee may at any time thereafter bring an action against
the Company to recover the unpaid amount of the claim. It shall be a defense to any such action
brought by Indemnitee (other than an action brought to enforce a claim for expenses incurred in
connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee
has not met the standards of conduct which make it permissible under applicable law for the Company
to indemnify Indemnitee for the amount claimed. Notwithstanding the foregoing, Indemnitee shall be
entitled to receive advancements of expenses pursuant to Section 2(a) hereof unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. It is the intention of the parties that if the Company contests Indemnitee’s right to
indemnification, the question of Indemnitee’s right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of Directors, any committee or
other subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have
made a determination that indemnification of Indemnitee is proper in the circumstances because
Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual
determination by the Company (including it Board of Directors, any committee or other subgroup of
the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met
such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met
the applicable standard of conduct.

     (d) Notice to Insurers. If, at the time of the receipt of a notice of a claim
pursuant to Section 2(b) hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of the commencement of such proceeding to the insurer
in accordance with the procedures set forth in the applicable policy. The Company shall thereafter
take all action it deems reasonably necessary or advisable to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms
of such policies.

     (e) Selection of Counsel. In the event the Company shall be obligated under Section
2(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company shall be

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entitled to assume the defense of such proceeding, with counsel approved by Indemnitee (such
approval not to be unreasonably withheld), upon the delivery to Indemnitee of written notice of its
election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same
proceeding, provided that Indemnitee shall have the right to employ his or her own counsel in any
such proceeding at Indemnitee’s own expense, and provided further that Indemnitee shall have the
right to employ his or her own counsel in any such proceeding at the Company’s expense if (i)
employment of counsel by Indemnitee has been previously authorized by the Company, (ii) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between the Company and
Indemnitee in the conduct of any such defense, or (iii) the Company shall not, in fact, have
employed counsel to assume the defense of such proceeding.

3. Additional Indemnification Rights; Nonexclusivity.

     (a) Scope of Indemnification Rights. Notwithstanding any other provision of this
Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by
law, notwithstanding that such indemnification is not specifically authorized by the other
provisions of this Agreement, the Company’s Certificate of Incorporation, Bylaws or by statute. In
the event of any change, after the date of this Agreement, in any applicable law, statute, or rule
which expands the right of a New Jersey corporation to indemnify a member of its board of directors
or an officer or other agent, such changes shall be incorporated automatically into Indemnitee’s
rights and the Company’s obligations under this Agreement without further action of the parties. In
the event of any change in any applicable law, statute or rule which narrows the right of a New
Jersey corporation to indemnify a member of its board of directors or an officer or other agent,
such changes, to the extent not otherwise required by such law, statute or rule to be applied to
this Agreement shall have no effect on this Agreement or the rights and obligations of the parties
hereunder.

     (b) Nonexclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate
of Incorporation, Bylaws, any other agreement, any vote or approval of Company stockholders or
disinterested Directors, New Jersey law, or otherwise, both as to action in Indemnitee’s official
capacity and as to action in another capacity while holding such office.

     (c) Continuing Right. All agreements and obligations of the Company included herein
shall continue during the period Indemnitee is a director, officer, employee or other agent of the
Company and shall continue thereafter as long as Indemnitee is subject to any possible claim,
action, suit, proceeding or any arbitration or other alternative dispute resolution mechanism,
whether civil, criminal, administrative or investigative, by reason of the fact that Indemnitee was
serving in the capacity referred to herein. For the avoidance of doubt, such agreements and
obligations shall apply to any period prior to the date of this Agreement on the same basis as to
periods from and after such date.

4. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of the expenses, judgments, fines or

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penalties actually or reasonably incurred by him or her in the investigation, defense, appeal or
settlement of any civil or criminal action, suit or proceeding, but not, however, for the total
amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such
expenses, judgments, fines or penalties to which Indemnitee is entitled.

5. Mutual Acknowledgement. Each of the Company and Indemnitee acknowledges that in certain
instances, Federal law or applicable public policy may prohibit the Company from providing
indemnification under this Agreement or otherwise. In particular, the Company and Indemnitee
acknowledge that the Securities and Exchange Commission believes that indemnification for
liabilities arising under the Federal securities laws is against public policy and, therefore, is
unenforceable. Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the Securities and Exchange Commission to submit the
question of indemnification to a court in certain circumstances for a determination regarding the
Company’s right, in view of such public policy considerations, to indemnify Indemnitee.

6. Officer And Director Liability Insurance. The Company may, from time to time, make a
determination whether or not it is practicable for the Company to obtain and maintain a policy or
policies of insurance with insurance companies providing the directors and officers of the Company
with coverage for losses in connection with acts or omissions by such directors and officers, or to
ensure the Company’s performance of its indemnification obligations under this Agreement. Among
other considerations, the Company may weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. In all policies of director and officer liability
insurance, Indemnitee will be named as an insured in such a manner as to provide Indemnitee the
same rights and benefits as are accorded to the most favorably insured of the Company’s directors,
if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer. Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance.

7. Severability. Nothing in this Agreement is intended to require or shall be construed as
requiring the Company to do or fail to do any act in violation of applicable law. The Company’s
inability, pursuant to court order, to perform its obligations under this Agreement shall not
constitute a breach of this Agreement. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in
accordance with its terms.

8. Exceptions. Notwithstanding any other provision herein to the contrary, the Company
shall not be obligated pursuant to the terms of this Agreement:

     (a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way
of defense, except with respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statute or law or otherwise as required under
14A:3-5 of the New Jersey Business Corporation Act, but such indemnification or advancement

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of expenses may be provided by the Company in specific cases if the Board of Directors has approved
the initiation or bringing of such suit; or

     (b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a court of competent jurisdiction determines that each of the material assertions
made by the Indemnitee in such proceeding was not made in good faith or was frivolous; or

     (c) Duplication of Payments. To indemnify Indemnitee for expenses or liabilities of
any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or
penalties, and amounts paid in settlement) which actually have been paid to Indemnitee under a
valid and collectible insurance policy, a provision of the Company’s Certificate of Incorporation
or Bylaws, or another valid and enforceable indemnity agreement; or

     (d) Claims Under Section 16(b) of 1934 Act. To indemnify Indemnitee for expenses and
an accounting of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any successor
statute.

9. Exceptions Under New Jersey Law. Notwithstanding any other provision of this Agreement,
pursuant to the New Jersey Business Corporation Act, no indemnification shall be made under this
Agreement to or on behalf of the Indemnitee if a judgment or other final adjudication adverse to
the Indemnitee establishes that the Indemnitee’s acts or omissions (a) were in breach of
Indemnitee’s duty of loyalty to the Company or its shareholders (as defined in 14A:2-7(3) of the
New Jersey Business Corporation Act), (b) were not in good faith or involved a knowing violation of
law, or (c) resulted in receipt by the Indemnitee of an improper personal benefit.

10. Construction Of Certain Phrases. For purposes of this Agreement, the following terms
and references shall have the following meanings:

     (a) References to the “Company” shall include, in addition to the resulting corporation in
any consolidation, merger or similar business combination, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger or similar business
combination which, if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, and employees or agents, so that if Indemnitee is or was a
director, officer, employee or agent of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the
same position under the provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent corporation if its separate
existence had continued.

     (b) References to “other enterprises” shall include employee benefit plans;

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     (c) References to “fines” shall include any excise taxes assessed on Indemnitee with respect
to an employee benefit plan;

     (d) References to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee benefit plan, its
participants, or beneficiaries; and

     (e) If Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be
in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall
be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred
to in this Agreement.

11. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall constitute an original.

12. Successors And Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate,
heirs, legal representatives and assigns. The Company shall require and cause any successor
(whether direct or indirect, and whether by purchase, merger, consolidation or otherwise) to agree
in writing to assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place.

13. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this
Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid
all costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with respect
to such action, unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such action were not made in
good faith or were frivolous. In the event of an action instituted by or in the name of the Company
under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee
shall be entitled to be paid all costs and expenses, including reasonable attorneys’ fees, incurred
by Indemnitee in defense of such action (including with respect to Indemnitee’s counterclaims and
cross-claims made in such action), unless as a part of such action the court determines that each of Indemnitee’s material defenses to such action were made in
bad faith or were frivolous.

14. Notice. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed duly given (i) if delivered by hand and receipted for by
the party addressee, on the date of such receipt or (ii) if mailed by domestic certified or
registered mail with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.

15. Consent To Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to
the jurisdiction of the courts of the State of New Jersey for all purposes in connection with any

-7-

 

action or proceeding which arises out of or relates to this Agreement and agree that any action
instituted under this Agreement shall be brought only in the state courts of the State of New
Jersey.

16. Choice Of Law. This Agreement shall be governed by and its provisions construed in
accordance with the laws of the State of New Jersey, as applied to contracts between New Jersey
residents entered into and to be performed entirely within New Jersey without regard to the
conflict of law principles thereof.

17. Period Of Limitations. No legal action shall be brought and no cause of action shall be
asserted by or in the right of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs,
executors or personal or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal action within such
two-year period; provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action, such shorter period shall govern.

18. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

19. Amendment; Termination. No amendment, modification, termination or cancellation of this
Agreement shall be effective unless it is in writing signed by both the parties hereto. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar), nor shall any such waiver constitute a continuing
waiver.

20. No Construction as Employment Agreement. Nothing contained in this Agreement shall be
construed as giving Indemnitee any right to continue in the employment of the Company.

21. Entire Agreement. This Agreement sets forth the entire understanding between the
parties hereto and supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the parties hereto.

[signatures on following page]

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[signature page — Indemnification Agreement]

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

					
	 	

COMPANY:

MEDQUIST INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Address for service:

	 

	MedQuist Inc.

	Attn: General Counsel

	1000 Bishops Gate Blvd., Suite 300

	Mt. Laurel, NJ 08054

					
	 	

AGREED TO AND ACCEPTED:

INDEMNITEE:

[see schedule below]

 	 
	 	 	  	 
	 	 	 	 
	 	Signature 	 	 
	 

Address for service:

	 

	c/o MedQuist Inc.

	1000 Bishops Gate Blvd., Suite 300

	Mt. Laurel, NJ 08054

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Schedule of Differences

Other than the identification of the Indemnitee, each Indemnification Agreement executed with the
executive officers listed below is substantially the same as this form and as each other.

	 	 	 
	Officer	 	Title
	Howard Hoffmann

	 	President and Chief Executive Officer
	Kathy Donovan

	 	Senior Vice President and Chief Financial Officer
	James Brennan

	 	Vice President and Controller
	Mark Sullivan

	 	General Counsel, Chief Compliance Officer & Secretary
	Mark Ivie

	 	Senior Vice President and Chief Technology Officer
	Michael Clark

	 	Senior Vice President of Operations
	Scott Bennett

	 	Senior Vice President of Sales & Marketing

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