Document:

exv10w4

Exhibit 10.4

THE ISSUANCE AND SALE OF THIS SUBORDINATED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND MAY
NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN
EXEMPTION FROM REGISTRATION, UNDER THE SECURITIES ACT OF 1933.

THIS SUBORDINATED PROMISSORY NOTE AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE
IN THE MANNER AND TO THE EXTENT SET FORTH IN SECTION 9 BELOW, AND EACH HOLDER OF THIS SUBORDINATED
PROMISSORY NOTE, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS
CONTAINED IN SECTION 9 BELOW.

SUBORDINATED PROMISSORY NOTE

MEDQUIST TRANSCRIPTIONS, LTD.

			
	$17,500,000.00
	 	New York, New York

April 22, 2010

          FOR VALUE RECEIVED, the undersigned MEDQUIST TRANSCRIPTIONS, LTD., a New Jersey corporation
(the “Maker”), promises to pay to the order of Spheris Inc. (“Spheris”), a Delaware
corporation (together with its successors and assigns, transferees and any permitted holder of this
Note from time to time, or any portion hereof, hereinafter, the “Holder”), or to such other
account pursuant to such other wiring instruction as the Holder may from time to time designate in
writing, the original principal amount of SEVENTEEN MILLION FIVE HUNDRED THOUSAND AND 00/100
DOLLARS ($17,500,000.00) (the “Original Principal Amount”), together with interest thereon
and all other amounts payable to the Holder under this note (this “Note”), pursuant to the
terms and conditions herein. This Note has been executed and delivered pursuant to and in
accordance with the terms and conditions of the Stock and Asset Purchase Agreement, dated as of
April 15, 2010 (the “Purchase Agreement”), by and among Spheris Holding II, Inc., Spheris
Inc., Spheris Operations LLC, Vianeta Communications, Spheris Leasing LLC, Spheris Canada Inc.,
CBay Inc. and MedQuist Inc. The Maker’s payment and other obligations under this Note are
guaranteed (each, a “Guarantee”) by MedQuist Inc., a Delaware corporation
(“Holdings”), and the other guarantors (the “Subsidiary Guarantors,” and, together
with Holdings, the “Guarantors”) as provided in Appendix 1 hereto.

     1. Definitions. Capitalized terms used here and not otherwise defined in this Note
shall have the meanings ascribed to them in the Purchase Agreement. In addition, the following
terms, as used herein, have the following meanings:

          (a) “Agent” shall have the meaning ascribed to it in the Senior Secured Credit
Agreement.

 

 

          (b) “Applicable Law” means the law in effect, from time to time, applicable to the
transaction evidenced by this Note which lawfully permits the receipt, contracting for, charging
and collection of the highest permissible lawful, non-usurious rate of interest on this Note and
the transactions evidenced hereby, and arising in connection herewith, including laws of the State
of New York and, to the extent controlling, the federal laws of the United States of America.

          (c) “Applicable Rate” shall mean the following: from Closing through six months
following Closing, 8.00% per annum. From six months following Closing through nine months
following Closing, 9.00% per annum. From nine months following Closing through the rest of the
Term, 12.50% per annum (up to 2.5% of which may be paid by increasing the Principal Amount in
accordance with Section 2 hereof).

          (d) “Business Day” shall mean any day other than Saturday, Sunday or other day on
which commercial banks in the State of New York are authorized or required by law or execute order
to remain closed.

          (e) “Capitalized Lease Obligations” means, as to any Person, the obligations of such
Person under a lease that are required to be classified and accounted for as capital lease
obligations under GAAP and, for purposes of this definition, the amount of such obligations at any
date shall be the capitalized amount of such obligations at such date, determined in accordance
with GAAP.

          (f) “Capital Stock” means (i) with respect to any Person that is a corporation, any
and all shares, interests, participations or other equivalents (however designated and whether or
not voting) of corporate stock, including each class of Common Stock and Preferred Stock, of such
Person and (ii) with respect to any Person that is not a corporation, any and all partnership or
other equity interests of such Person.

          (g) “Common Stock” of any Person means any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or non-voting) of
such Person’s common stock, whether outstanding on the date of this Note or issued after date of
this Note, and includes, without limitation, all series and classes of such common stock.

          (h) “Consolidated EBITDA” shall have the meaning provided in the Senior Secured Credit
Agreement in effect on the date of this Note. 

          (i) “Currency Agreement” means any foreign exchange contract, currency swap agreement,
futures contract, option contract or other similar agreement or arrangement designed to protect
Holdings, the Maker and their subsidiaries against fluctuations in currency values.

          (j) “Disqualified Capital Stock” means with respect to any Person, any Capital Stock
which by its terms (or by the terms of any security into which it is convertible or for which it is
exchangeable at the option of the holder) or upon the happening of any event: (i) matures or is
mandatorily redeemable (other than redeemable only for Capital Stock of such Person which is not
itself Disqualified Capital Stock) pursuant to a sinking fund obligation or

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otherwise; (ii) is convertible or exchangeable at the option of the holder for Indebtedness or
Disqualified Capital Stock (excluding Capital Stock which is convertible or exchangeable solely at
the option of Holdings, the Maker or their subsidiaries); or (iii) is mandatorily redeemable or
must be purchased upon the occurrence of certain events or otherwise, in whole or in part; in each
case on or prior to (a) the final maturity date of this Note or (b) the date on which there is no
Note outstanding.

          (k) “GAAP” means generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States of America, as in effect as of date of this Note. All
ratios and computations based on GAAP contained in this Note will be computed in conformity with
GAAP, except as expressly provided in this Note.

          (l) “Indebtedness” means with respect to any Person, without duplication: (i) all
Obligations of such Person for borrowed money; (ii) all Obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments; (iii) all Capitalized Lease Obligations of
such Person; (iv) all Obligations of such Person issued or assumed as the deferred and unpaid
purchase price of property, all conditional sale obligations and all Obligations under any title
retention agreement (but excluding trade accounts payable and other accrued liabilities arising in
the ordinary course of business); (v) all Obligations for the reimbursement of any obligor on any
letter of credit, banker’s acceptance or similar credit transaction (including reimbursement
obligations with respect thereto except to the extent such reimbursement obligation relates to a
trade payable and such obligation is satisfied within 30 days of incurrence); (vi) guarantees and
other contingent obligations in respect of Indebtedness of other Persons referred to in clauses
(i) through (v) above and clause (viii) below; (vii) all Obligations of any other Person of the
type referred to in clauses (i) through (vi) which are secured by any Lien on any property or asset
of such Person whether or not such Indebtedness is assumed by such Person, the amount of such
Obligation being deemed to be the lesser of the fair market value of such property or asset at such
date of determination and the amount of the Obligation so secured; (viii) all Obligations under
Currency Agreements and Interest Swap Obligations of such Person (the amount of any such
obligations to be equal at any time to the termination value, as determined in good faith by the
Company’s Board of Directors, which determination will be conclusive, of such agreement or
arrangement giving rise to such obligation that would be payable by such Person at such time); and
(ix) all Disqualified Capital Stock issued by such Person with the amount of Indebtedness
represented by such Disqualified Capital Stock being equal to the greater of its voluntary or
involuntary liquidation preference and its maximum fixed repurchase price or, with respect to any
subsidiary of Holdings or the Maker that is not a Guarantor of this Note, any Preferred Stock (but
excluding, in each case, accrued dividends, if any).

          (m) “Interest Swap Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person, whereby directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a floating or a fixed
rate of interest on a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same notional

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amount and shall include, without limitation, interest rate swaps, caps, floors, collars and
similar agreements.

          (n) “Lenders” shall have the meaning ascribed to it in the Senior Secured Credit
Agreement.

          (o) “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge
or encumbrance of any kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof and any agreement to give any security interest).

          (p) “Maximum Rate” means, on any day, the maximum lawful non-usurious rate of interest
(if any) which, under Applicable Law, the Holder is permitted or authorized to contract for,
charge, collect, receive, reserve or take from or of the Maker on the indebtedness evidenced by
this Note from time to time in effect, including changes in such Maximum Rate attributable to
changes under Applicable Law which permit a greater rate of interest to be contracted for, charged,
collected, received, reserved or taken as of the effective dates of the respective changes.

          (q) “Obligations” means all obligations for principal, premium, interest, penalties,
fees, indemnifications, reimbursements, damages and other liabilities payable under the
documentation governing any Indebtedness.

          (r) “Paid in Full” means the full irrevocable and indefeasible payment in cash, in
immediately available funds, of all the Senior Debt (whether or not any of the Senior Debt shall
have been voided, disallowed or subordinated pursuant to any provision of the Bankruptcy Code, any
applicable state fraudulent conveyance law, any other law in connection with an insolvency
proceeding or otherwise) and the termination of all commitments of the Lenders to make loans and
other extensions of credit to or for the benefit of the Borrowers pursuant to the terms of the
Senior Secured Credit Agreement. The expressions “prior payment in full”, “payment in full”, “paid
or satisfied in full” and “paid in full” (whether or not such expressions are capitalized) and
other similar phrases shall have correlative meanings.

          (s) “Person” means an individual, partnership, corporation, limited liability company,
unincorporated organization, trust or joint venture, or a governmental agency or political
subdivision thereof.

          (t) “Preferred Stock” of any Person means any Capital Stock of such Person that has
preferential rights to any other Capital Stock of such Person with respect to dividends or
redemptions or upon liquidation or dissolution of such Person, over shares of Capital Stock of any
other class of such Person.

          (u) “Principal Amount” shall mean the Original Principal Amount (i) as decreased from
time to time by the amount of any prepayments, if any, pursuant to Section 5, to the extent applied
to principal and (ii) as increased from time to time by any Additional Principal Amounts pursuant
to Section 2.

          (v) “Securities Act” means the Securities Act of 1933, as amended.

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          (w) “Senior Debt” means the Obligations (as such term is defined in the Senior Secured
Credit Agreement) and all other Indebtedness, obligations and other liabilities of the Maker or its
affiliates now or hereafter existing in favor of the Lenders, the L/C Issuers (as defined in the
Senior Secured Credit Agreement) and Agent under the Senior Secured Credit Agreement (in each case,
as amended, restated, supplemented or otherwise modified from time to time), whether for principal
(including, without limitation, protective advances and overadvances), interest (including interest
accruing subsequent to the filing of any petition initiating any insolvency proceeding, whether or
not a claim for such interest is allowed in any such proceeding), premiums, indemnities, fees,
costs, expenses (including, without limitation, auditor, legal and other professional fees, costs
and expenses, and including, without limitation, fees, costs and expenses accruing subsequent to
the filing of any petition initiating insolvency proceeding, whether or not a claim for such fees,
costs and expenses is allowed in any such proceeding), or otherwise, in each case whether now
existing or hereafter arising, direct or indirect, absolute or contingent, joint or several,
secured or unsecured, matured or unmatured, monetary or nonmonetary, liquidated or unliquidated,
acquired outright, conditionally or as collateral security from another, and all extensions,
renewals, refundings, replacements and modifications of any of the foregoing; provided, however,
that the aggregate principal amount of all Senior Debt shall not exceed $115,000,000 at any one
time outstanding.

          (x) “Senior Default” means any “Event of Default” as defined in the Senior Secured
Credit Agreement.

          (y) “Senior Secured Credit Agreement” means that certain Credit Agreement, entered
into by and among the Maker, MedQuist Inc., the Lenders, the L/C Issuers (as defined in that
agreement), and General Electric Capital Corporation as administrative agent and collateral agent,
dated as of April 22, 2010, as amended, restated, supplemented, amended and restated, refinanced or
otherwise modified from time to time.

          (z) “Significant Subsidiary,” with respect to any Person, means any subsidiary of such
Person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1-02(w) of
Regulation S-X under the Securities Act.

          (aa) “Subordinated Debt” means all Obligations arising with respect to this Note and
all guarantees of such Obligations.

     2. Payments. Payments of interest on this Note shall be made semi-annually, on each
six-month anniversary following the date of the closing of the acquisition of substantially all of
the assets of Spheris by the Maker (the “Closing”) as contemplated in the Purchase
Agreement. Interest shall accrue on the Principal Amount at the Applicable Rate, payable in cash
semi-annually in arrears on each six month anniversary of the Closing Date or, if such day is not a
Business Day, on the next succeeding Business Day (the “Interest Payment Date”). All
payments of interest hereunder shall be computed on the basis of a 360-day year and the number of
days elapsed (including the first day but excluding the last day). Notwithstanding anything herein
to the contrary, from and after the nine month anniversary of the Closing Date, at the option of
the Maker, in lieu of being paid in cash, an amount of interest representing 2.5% per annum applied
to the Principal Amount may be added to the outstanding principal amount (such additional principal
amount from time to time being the “Additional Principal Amount”) and, in

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such event, shall be deemed to have been paid in the form of Additional Principal Amounts, and
the cash payment of interest for such period shall be correspondingly reduced. Any Additional
Principal Amount shall accrue interest from the Interest Payment Date on which such Additional
Principal Amount was issued. The Maker shall pay interest on overdue principal and interest at the
Applicable Rate plus 1.00% per annum, which interest shall be paid by adding Additional Principal
Amount.

     3. Future Guarantors. Promptly after a subsidiary of the Maker guarantees the Senior
Secured Credit Agreement, the Maker shall cause such subsidiary also to guarantee this Note on the
same basis as the other Guarantors.

     4. Term. This Note shall mature on the date that is 5 years (the “Term”) from
the date of the Closing, or the next succeeding Business Day if such day is not a Business Day.

     5. Prepayment. This Note shall be prepayable at the option of the Maker. Such
prepayments shall be applied first, to accrued and unpaid interest, and second, to remaining
payments of the Principal Amount. To prepay this Note, the Maker shall pay to the Holder an amount
equal to the outstanding Principal Amount at such time, multiplied by the percentage rate (the
“Applicable Percentage”) from the table below corresponding to the date of such payoff,
plus accrued and unpaid interest. In each case, the dates set forth below shall be either such
date, or the next succeeding Business Day if such date is not a Business Day.

	 	 	 	 	 
	 	 	Applicable	 
	Date of Payoff	 	Percentage	 
	The date of Closing through and including the date that is 6
months following Closing
	 	 	77.5	%
	Following the date that is 6 months following Closing through
and including the date that is 9 months following Closing
	 	 	87.5	%
	Following the date that is 9 months following Closing through
and including the date that is one year following Closing
	 	 	97.5	%
	Following the date that is one year following Closing through
and including the date that is two years following Closing
	 	 	102.0	%
	Following the date that is two years following Closing through
and including the date that is three years following Closing
	 	 	101.0	%
	Following the date that is three years following Closing and
thereafter
	 	 	100.0	%

     6. Security. This Note shall be an unsecured obligation of the Maker, and the
Guarantees shall be unsecured obligations of the Guarantors.

     7. Covenants. (i) Each of Holdings and the Maker covenants and agrees that, until all
obligations evidenced by, and provided for in, this Note are fully, finally and indefeasibly paid:

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     (a) Payment of Notes. The Maker shall pay or cause to be paid the principal
amount and interest on this Note on the dates and in the manner provided herein.

     (b) Compliance Certificate. Holdings and the Maker shall each deliver to the
Holder an officers’ certificate within 90 days after the end of each fiscal year
stating that a review of the activities of Holdings, the Maker and their
subsidiaries during the preceding fiscal year has been made under the supervision of
the signing officers with a view to determining whether Holdings and the Maker have
kept, observed, performed and fulfilled its obligations under this Note, and further
stating that, as to each such officer signing such certificate, that to the best of
his or her knowledge Holdings and the Maker have kept, observed, performed and
fulfilled each and every covenant contained in this Note and are not in default in
the performance or observance of any of the terms, provisions and conditions of this
Note (or, if a default or Event of Default shall have occurred, describing all such
defaults or Events of Default of which he or she may have knowledge and what action
the Maker is taking or proposes to take with respect thereto) and that to the best
of his or her knowledge no event has occurred and remains in existence by reason of
which payments on account of the principal of or interest, if any, on this Note is
prohibited or if such event has occurred, a description of the event and what action
Holdings or the Maker is taking or proposes to take with respect thereto. For
purposes of this paragraph, such compliance shall be determined without regard to
any period of grace or requirement of notice provided under this Note.

     (c) Total Leverage Ratio. As of the end of each Fiscal Quarter, Holdings
shall not have a ratio of (x) Consolidated Total Debt (as defined in the Senior
Secured Credit Agreement in effect on the date of this Note) to (y) Consolidated
EBITDA for the last period of four consecutive Fiscal Quarters ending on or before
such date that is greater than 2:00:1.00 for any Fiscal Quarter ending after the
date hereof.

     (d) Conduct of Business. Holdings and the Maker shall not, and shall not
permit any of their subsidiaries to, engage in any material line of businesses a
majority of whose revenues are not derived from businesses that are the same or
reasonably similar, complementary, ancillary or related to, or a reasonable
extension, development or expansion of, the businesses in which Holdings, the Maker
and their subsidiaries are engaged on the date hereof except as otherwise permitted
under the Senior Secured Credit Agreement.

     (e) Corporate Existence. Holdings and the Maker shall preserve and maintain
(i) their corporate existence, and the corporate, partnership or other existence of
each of their subsidiaries, in accordance with the respective organizational
documents of Holdings, the Maker and their subsidiaries, and (ii) the rights
(charter and statutory), licenses and franchises of Holdings, the Maker and their
subsidiaries, in each case, except as otherwise permitted under the Senior Secured
Credit Facility.

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(f) No Senior Subordinated Debt. Each of Holdings, the Maker and the
Guarantors shall not incur or suffer to exist Indebtedness that is senior in right
of payment to this Note or such Person’s Guarantee, as the case may be, and
subordinate in right of payment to any other Indebtedness such Person; provided that
the foregoing does not prohibit subordination of Liens among holders of Senior Debt.

(ii) Each of Holdings and the Maker covenants and agrees that:

(a) Exchange Notes. Subject to the execution of the indenture as described
in Section 7(ii)(b), the Maker shall exchange this Note for one or more notes (the
“Exchange Notes”), of like principal amount (in the aggregate) to this Note,
to be governed by the indenture described in Section 7(ii)(b).

(b) Indenture. The Maker and Holder shall negotiate in good faith and use
all commercially reasonable efforts to enter into, and Maker shall, and shall cause
each of the Guarantors to, enter into, within 30 days of the Closing, an indenture
(the “New Indenture”), in form and substance reasonably satisfactory to the
Maker and the Holder, governing the Exchange Notes, with Wells Fargo Bank, N.A., as
trustee, or such other trustee acceptable to the Maker and the Holder, which shall
contain, among other things, the (A) covenants listed on Annex A hereto (the
“Listed Covenants”) (applicable to Holdings (as the “Company” for such
purposes), the Maker and the Guarantors); provided that (1) the Listed
Covenants shall have terms that are customary and no more restrictive than those
contained in either (a) the Indenture (the “Spheris Indenture”), dated as of
December 22, 2004, by and among Spheris Inc., the guarantors party thereto and The
Bank of New York, as trustee, governing the 11% Senior Subordinated Notes due 2012
of Spheris Inc. or (b) the Senior Secured Credit Agreement and (2) the Total
Leverage Ratio shall be the only financial maintenance covenant, (B) events of
default and other provisions that are customary and no more restrictive than those
contained in either the Spheris Indenture or the Senior Secured Credit Agreement and
(C) guarantees of the Exchange Notes on the terms described herein under
“Guarantee”.

The Maker and Holder agree that the covenant to act in good faith and use
commercially reasonable efforts shall not require that Maker agree to any provision
that is prohibited by the definition of “Permitted Junior Capital” (as defined in
the Senior Secured Credit Agreement (as in effect on the date hereof)).

     8. Events of Default; Acceleration. If any one or more of the following events (each
an “Event of Default”) shall occur for any reason whatsoever (and whether such occurrence
shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to
or in compliance with any judgment, decree or order of any court or any order, rule or regulation
of any Governmental Authority):

          (a) if default shall be made in the due and punctual payment of the principal of or premium
on, if any, interest on or other amounts payable on account of this Note, when and

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as the same shall become due and payable, whether at maturity or by acceleration or
declaration or otherwise, and, in the case of interest, such failure continues for ten (10)
Business Days (it being agreed that interest shall continue to accrue on all such unpaid amounts
until such payment is made);

          (b) if default shall be made in the performance or observance in any other covenant, agreement
or provision contained in this Note and such default shall continue for 30 Business Days after
written notice thereof is provided to the Maker;

          (c) the failure to pay at final stated maturity (giving effect to any applicable grace periods
and any extensions thereof) the principal amount of any Indebtedness of Holdings, the Maker or any
Significant Subsidiary of Holdings, or the acceleration of the final stated maturity of any such
Indebtedness, if the aggregate principal amount of such Indebtedness, together with the principal
amount of any other such Indebtedness, whether such Indebtedness now exists, or is created after
the date of this Note, in default for failure to pay principal at final maturity or which has been
accelerated, aggregates $5.0 million or more at any time;

          (d) one or more judgments in an aggregate amount in excess of $5.0 million (excluding amounts
adequately covered by insurance payable to Holdings or any of its subsidiaries, to the extent the
relevant insurer has not denied coverage therefor) shall have been rendered against Holdings, the
Maker or any of Holdings’ Significant Subsidiaries or group of Holdings’ subsidiaries that, taken
together (as of the latest audited consolidated financial statements for Holdings, the Maker and
the subsidiaries), would constitute a Significant Subsidiary, and such judgments remain
undischarged, unpaid or unstayed for a period of 60 days after such judgment or judgments become
final and non-appealable;

          (e) if Holdings, the Maker or any of Holdings’ Significant Subsidiaries or a group of
Holdings’ subsidiaries that, taken together (as of the latest audited consolidated financial
statements for Holdings, the Company and their subsidiaries) would constitute a Significant
Subsidiary, shall file a petition or seek relief under or take advantage of any insolvency law;
make an assignment for the benefit of its creditors; commence a proceeding for the appointment of a
receiver, trustee, liquidator, custodian or conservator of itself or of the whole or substantially
all of its property; file a petition or an answer to a petition under any chapter of the Bankruptcy
Code or file a petition or seek relief under or take advantage of any other similar law or statute
of the United States of America, any state thereof or any foreign country; or

          (f) if a court of competent jurisdiction shall enter an order, judgment or decree appointing
or authorizing a receiver, trustee, liquidator, custodian or conservator of Holdings, the Maker or
any of Holdings’ Significant Subsidiaries or a group of Holdings’ subsidiaries that, taken together
(as of the latest audited consolidated financial statements for Holdings, the Maker and their
subsidiaries) would constitute a Significant Subsidiary, or of the whole or substantially all of
any of their property, or enter an order for relief against Holdings, the Maker or any of Holdings’
Significant Subsidiaries or a group of Holdings’ subsidiaries that, taken together (as of the
latest audited consolidated financial statements for Holdings, the Maker and their subsidiaries)
would constitute a Significant Subsidiary, in any case commenced under any chapter of the
Bankruptcy Code or grant relief under any other similar law or statute of the

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United States of America, any state thereof or any foreign country; or if, under the
provisions of any law for the relief or aid of debtors, a court of competent jurisdiction or a
receiver, trustee, liquidator, custodian or conservator shall assume custody or control or take
possession of Holdings, the Maker or any of Holdings’ Significant Subsidiaries or a group of
Holdings’ subsidiaries that, taken together (as of the latest audited consolidated financial
statements for Holdings, the Maker and their subsidiaries) would constitute a Significant
Subsidiary, or of the whole or substantially all of their property; or if there is commenced
against Holdings, the Maker or any of Holdings’ Significant Subsidiaries or a group of Holdings’
subsidiaries that, taken together (as of the latest audited consolidated financial statements for
Holdings, the Maker and their subsidiaries) would constitute a Significant Subsidiary, any
proceeding for any of the foregoing relief or if a petition is filed against Holdings, the Maker or
any of Holdings’ Significant Subsidiaries or a group of Holdings’ subsidiaries that, taken together
(as of the latest audited consolidated financial statements for Holdings, the Maker and their
subsidiaries) would constitute a Significant Subsidiary, under any chapter of the Bankruptcy Code
or under any other similar law or statute of the United States of America or any state thereof or
any foreign country and such proceeding or petition remains undismissed for a period of sixty (60)
days; or if Holdings, the Maker or any Significant Subsidiary consents to, approves of or
acquiesces in any such proceeding or petition;

then, upon the occurrence of any Event of Default, the unpaid Principal Amount of, and
accrued and unpaid interest on, this Note shall automatically become immediately due and payable,
together with all other amounts payable under this Note, without presentment, demand, protest,
notice of intent to accelerate, notice of acceleration or further notice of any kind, all of which
are hereby expressly waived by the Maker.

     9. Subordination. Notwithstanding anything to the contrary set forth in this Note,
this Note is subordinated to Senior Debt to the extent and in the manner set forth in this Section
9. For the avoidance of doubt, this Note is not subordinated to any instrument or Indebtedness
other than Senior Debt.

     (a) No payment or distribution of any kind, whether direct or indirect (by set-off, recoupment
or otherwise) and whether in cash, securities or other property, shall be made on account of any
Subordinated Debt, or in respect of any redemption, retirement, purchase or other acquisition of
any Subordinated Debt, by or for the account of Maker or any guarantor, at any time during which
any Senior Debt shall be outstanding or any commitment to extend Senior Debt exists, other than (a)
any increases to the principal amount owing under this Note resulting from the compounding of
interest or the payment of interest in kind rather than in cash, (b) to the extent no Senior
Default has occurred and is continuing, regularly scheduled payments of interest at a rate not to
exceed 10% per annum; provided, however, with respect to clauses (a) and (b), the total interest
rate per annum on this Note does not exceed 12.5% per annum, (c) prepayments of principal of this
Note to the extent permitted pursuant to and made in accordance with clause (ii) of Section 8.6 of
the Senior Secured Credit Agreement and (d) payment of principal on this Note at its stated
maturity date so long as no Senior Default has occurred and is continuing or the maturity date of
the Senior Debt was extended beyond the maturity date of this Note.

     (b) In the event of any payment or distribution of assets of the Maker of any kind or
character, whether in cash, property, or securities, upon the dissolution, winding up, or total or

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partial liquidation or reorganization, readjustment, arrangement, or similar proceeding relating to
such Maker or its property, whether voluntary or involuntary, or in bankruptcy, insolvency,
receivership, arrangement or similar proceedings or upon an assignment for the benefit of
creditors, or upon any other marshaling or composition of the assets and liabilities of such Maker
(each, a “Proceeding”), or event described in 8(d) or 8(e) of this Note or otherwise: (x) all
amounts owing on account of the Senior Debt shall first be Paid in Full before any payment of the
Subordinated Debt is made and (y) any payment to which the Holder would be entitled (but for the
provisions hereof) shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for
the benefit of creditors, or other liquidating agent making such payment or distribution to the
Agent directly, for application to the payment of the Senior Debt until all Senior Debt shall have
been Paid in Full.

     (c) If any proceeding referred to in clause (b) is commenced by or against the Maker,

          (i) the Agent is hereby irrevocably authorized and empowered (in its own name or in the name
of the Maker, the Holder or otherwise), but shall have not obligation, to demand, sue for, collect
and receive every payment or distribution referred to in clause (b) and give acquaintance therefore
and to file claims and proofs of claim and take such other action as it may deem necessary or
advisable for the exercise or enforcement of any of the rights or interests of holders of Senior
Debt; and

          (ii) Holder shall duly and promptly take any or all of the following actions as the Agent may
request: (A) to collect the Subordinated Debt for the account of the holders of the Senior Debt and
to file appropriate claims or proofs of claim in respect of the Subordinated Debt, (B) to execute
and deliver to such Agent such powers of attorney, assignments, or other instruments as such Agent
may request in order to enable Agent to enforce any and all claims with respect to, and any
security interests and other liens securing payment of, the Subordinated Debt, or (C) to collect
and receive any and all payments or distributions which may be payable or deliverable upon or with
respect to the Subordinated Debt.

     (d) Until all the Senior Debt shall have been Paid in Full, no Holder shall:

     (i) accelerate, make demand, or otherwise make due and payable prior to the original
due date thereof any Note or bring suit or institute any other actions or proceeding to
enforce its rights or interest in respect of the obligations of the Maker or the Guarantors;

     (ii) exercise any rights to set-offs and counterclaims in respect of any indebtedness,
liabilities or obligations of the Maker or the Guarantors, or

     (iii) commence, or cause to be commenced, or join with any creditor in commencing any
insolvency proceeding against the Maker or the Guarantors; or

     (iv) exercise any other rights or remedies against the Maker or the Guarantors;

provided, however, that the Holder may accelerate and make demand against
all obligations of, or enforce or exercise any or all rights and remedies, or commence or

- 11 -

 

petition for any such action or proceedings, against, the Maker after a period of 180 days
has elapsed since the date on which the Holder has delivered to the Agent written notice of
an Event of Default (the “Standstill Period”); provided, further,
however, that the Holder may (A) upon any acceleration of any Senior Debt,
accelerate and make demand against all obligations of any entity against whom such Senior
Debt has been accelerated during the Standstill Period and (B) after the stated maturity of
this Note, make demand against all obligations of, or enforce or exercise any or all rights
and remedies, or commence or petition for any such action or proceedings, against, the
Maker. Notwithstanding the foregoing, the Holder may file a proof of claim against the
Maker or any of the Guarantors in connection with an insolvency proceeding of the Maker or
any Guarantor.

     (e) In the event that, notwithstanding the foregoing, any payment or distribution of assets of
Maker or any guarantor of any kind or character, whether direct or indirect (by set-off, recoupment
or otherwise) and whether in cash, property or securities, shall be received by the Holder on
account of the Subordinated Debt in violation of the provisions of this Note and before all Senior
Debt is paid in full in cash, such payment or distribution shall be received and held in trust by
the Holder for the benefit of the holders of Senior Debt, or their designated representative,
ratably according to the respective amounts of Senior Debt held or represented by each, to the
extent necessary to cause all such Senior Debt to be Paid in Full.

     (f) If at any time hereafter, the Holder obtains any judgment against Maker in respect of any
Subordinated Debt, such judgment shall be subject to the subordination provisions of this Note and
the rights of the holders of Senior Debt to the same extent as such rights apply to Subordinated
Debt under this Note.

     (g) The provisions of this Section 9 shall continue to be effective or be reinstated, as the
case may be, if at any time any payment in respect of any Senior Debt is rescinded or must
otherwise be returned by any holders of Senior Debt (including, without limitation, in the event of
a Proceeding), all as though such payment had not been made. Without limitation to the foregoing,
in the event that any Senior Debt is avoided, disallowed or subordinated pursuant to Section 548 of
the U.S. Bankruptcy Code or any applicable state fraudulent conveyance laws, whether asserted
directly or under Section 544 of the U.S. Bankruptcy Code, the provisions of this Section 9 shall
continue to be effective or be reinstated, as the case may be.

     (h) Agent is hereby authorized to demand specific performance of the subordination provisions
contained herein, whether or not Maker shall have complied with any of the provisions hereof
applicable to it, at any time when Holder shall have failed to comply with any of the provisions of
this Agreement applicable to it. Holder hereby irrevocably waives any defense based on the
adequacy of a remedy at law, which might be asserted as a bar to such remedy of specific
performance.

     (i) All rights and interests of the holders of Senior Debt hereunder, and all agreements and
obligations of the Holder, or Maker hereunder, shall remain in full force and effect irrespective
of:

- 12 -

 

     (i) any lack of validity or enforceability of the Senior Secured Credit Agreement, this
Note (as defined in the Senior Secured Credit Agreement) or any other Loan Document (as
defined in the Senior Secured Credit Agreement);

     (ii) any change in the time, manner or place of payment of, or in any other term of,
all or any of the Senior Debt, or any other amendment or waiver of or any consent to any
departure from the Senior Secured Credit Agreement or any other Loan Document (as defined in
the Senior Secured Credit Agreement), including, without limitation, any increase in the
Senior Debt resulting from the extension of additional credit to Maker or otherwise:

     (iii) any taking, exchange, release or non-perfection of any collateral, or any taking,
release or amendment or waiver of or consent to departure from any guaranty, for all or any
part of the Senior Debt;

     (iv) any manner of application of collateral, or proceeds thereof, to all or any of the
Senior Debt, or any manner of sale or other disposition of any collateral for all or any of
the Senior Debt or any other assets of any Borrower;

     (v) the grant of any adjustment, indulgence or forbearance, or compromise with, Maker
with respect to the Senior Debt;

     (vi) any change, restructuring or termination of the structure or existence of the
Maker; or

     (vii) any other circumstance which might otherwise constitute a defense available to,
or a discharge of, the Maker or any Holder.

     (j) Each of Maker and Holder hereby waives promptness, diligence, notice of acceptance and any
other notice with respect to any of the Senior Debt and this clause 9 and any requirement that
Agent or any Lender protect, secure, perfect or insure any security interest or lien on the any
property subject thereto or exhaust any right to taken any action against Maker or any other person
or entity or any collateral.

     (k) This Note and all other instruments (and all replacements thereof) evidencing the
Subordinated Debt or any part thereof shall be inscribed with a legend conspicuously indicating
that the payment thereof is subordinated to the payment of Senior Debt pursuant to the provisions
of this Section 9.

     (l) This Section 9 shall constitute a continuing offer to all Persons who become holders of,
or continue to hold, Senior Debt; and such holders are made obligees hereunder and any one or more
of them, or their designated representative, may enforce such provisions, and all such holders
shall be deemed to have relied thereon. The subordination effected by this Section 9 is a
continuing subordination, and the Holder unconditionally waives notice of the incurring of any
Senior Debt or any part thereof and reliance by any holders of Senior Debt upon the subordination
contained herein. The Holder acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement to and a consideration of the holders of Senior Debt,
whether such Senior Debt was created or acquired before or after the

- 13 -

 

incurrence or creation of any Subordinated Debt and whether such holders of Senior Debt are now
known or hereafter become known, and each holder of Senior Debt shall be deemed conclusively to
have relied upon such subordination provisions in acquiring and holding, or in continuing to hold,
such Senior Debt and shall be entitled to enforce the provisions of this Section 9 directly as if
it were a party to this Note. No right of any present or future holders of Senior Debt to enforce
subordination provisions contained in this Section 9 shall at any time be prejudiced or impaired by
any act or failure to act on the part of Maker or by any noncompliance by Maker with the terms of
this Note.

     10. Notices. Any notice or communication must be given in writing or delivered in
person, or by overnight courier, or by facsimile addressed as follows:

	 	 	 	 	 

	Holder:	 	Spheris Inc.
	 	 	9009 Carothers Parkway, Suite C-3
	 	 	Franklin, Tennessee 37067
	 

	 	Attention:
	 	Chief Executive Officer and
	 

	 	 	 	General Counsel
	 

	 	Facsimile:
	 	(615) 261-1792
	 
	 	 	 	 
	With a copy to:	 	Willkie Farr & Gallagher LLP
	 	 	787 Seventh Avenue
	 	 	New York, New York 10019
	 

	 	Attention:
	 	Michael J. Kelly, Esq.
	 

	 	 	 	Mark A. Cognetti, Esq.
	 
	 	 	 	 
	Maker:	 	MedQuist Transcriptions, Ltd.
	 	 	1000 Bishops Gate Boulevard, Suite 300
	 	 	Mount Laurel, New Jersey 08054
	 

	 	Attention:
	 	Mark Sullivan, General Counsel
	 

	 	Facsimile:
	 	(856) 206-4211
	 
	 	 	 	 
	With a copy to:	 	Wachtell, Lipton, Rosen & Katz
	 	 	51 West 52nd Street
	 	 	New York, New York 10019
	 

	 	Attention:
	 	Richard G. Mason, Esq.
	 

	 	 	 	Andrew J. Nussbaum, Esq.
	 

	 	 	 	Gordon S. Moodie, Esq.
	 

	 	Facsimile:
	 	(212) 403-2000

Any such notice or communication is effective (x) when received, if delivered in person or by
facsimile or (y) on the next Business Day, if delivered by overnight courier.

     11. No Waiver. The Holder shall not by any act, delay, omission or otherwise be
deemed to have amended, modified, supplemented, waived, extended, discharged or terminated any of
its rights or remedies, except by an amendment, modification, supplement, waiver, extension,
discharge or termination in writing and signed by the appropriate parties, as

- 14 -

 

may be applicable. All rights and remedies of the Holder under the terms of this Note and
applicable statutes or rules of law shall be cumulative, and may be exercised successively or
concurrently. The Maker agrees that there are no defenses, equities or setoffs with respect to the
obligations set forth herein.

     12. Compliance With Applicable Law. It is the intent of Holder and Maker in the
execution and performance of this Note to remain in strict compliance with Applicable Law from time
to time in effect. In furtherance thereof, the Holder and the Maker stipulate and agree that none
of the terms and provisions contained in this Note shall ever be construed to create a contract to
pay for the use, forbearance or detention of money with interest at a rate or in an amount in
excess of the Maximum Rate or maximum amount of interest permitted or allowed to be contracted for,
charged, received, taken or reserved under Applicable Law. For purposes of this Note, “interest”
shall include the aggregate of all amounts which constitute or are deemed to constitute interest
under Applicable Law which are contracted for, taken, charged, reserved, received or paid under
this Note. The Maker shall never be required to pay unearned interest and shall never be required
to pay interest at a rate or in an amount in excess of the Maximum Rate or maximum amount of
interest that may be lawfully contracted for, charged, received, taken or reserved under Applicable
Law, and the provisions of this paragraph shall control over all other provisions of this Note,
which may be in actual or apparent conflict herewith. If the maturity of this Note is accelerated
for any reason, or if under any other contingency the interest effective rate or amount of interest
which would otherwise be payable under this Note would exceed the Maximum Rate or maximum amount of
interest Holder is permitted or allowed by Applicable Law to charge, contract for, take, reserve or
receive, or in the event Holder shall charge, contract for, take, reserve or receive monies that
are deemed to constitute interest which would, in the absence of this provision, increase the
effective interest rate or amount of interest payable under this Note to a rate or amount in excess
of that permitted or allowed to be charged, contracted for, taken, reserved or received under
Applicable Law then in effect, then the principal amount of this Note or the amount of interest
which would otherwise be payable under this Note, or both, shall be reduced to the amount allowed
under Applicable Law as now or hereinafter construed by the courts having jurisdiction, and all
such monies so charged, contracted for, taken, reserved or received that are deemed to constitute
interest in excess of the Maximum Rate or maximum amount of interest permitted by Applicable Law
shall immediately be returned to or credited to the account of the Maker upon such determination.
The Holder and the Maker further stipulate and agree that, without limitation of the foregoing, all
calculations of the rate or amount of interest contracted for, charged, taken, reserved or received
under this Note which are made for the purpose of determining whether such rate or amount exceeds
the Maximum Rate, shall be made to the extent not prohibited by Applicable Law, by amortizing,
prorating, allocating and spreading during the period of the full stated term of this Note, all
interest hereon at any time contracted for, charged, taken, reserved or received from the Maker or
otherwise by the Holder.

     13. General. This Note was negotiated in New York, and made by the Maker and
accepted by the Holder in the State of New York, and the proceeds of this Note were disbursed from
New York, which State the parties agree has a substantial relationship to the parties and to the
underlying transaction embodied hereby, and in all respects (including, without limitation, matters
of construction, validity and performance), this Note and the obligations arising hereunder shall
be governed by, and construed in accordance with, the laws of the State of New

- 15 -

 

York applicable to contracts made and performed in such State and any applicable law of the
United States of America.

          ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST THE HOLDER OR THE MAKER ARISING OUT OF OR
RELATING TO THIS NOTE SHALL BE INSTITUTED IN (A) WITH RESPECT TO A SUIT, ACTION OR PROCEEDING
INITIATED IN CONNECTION WITH SECTION 7(ii) OF THIS NOTE PRIOR TO THE EXECUTION OF THE INDENTURE,
THE U.S. BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE AND (B) WITH RESPECT TO ALL OTHER MATTERS,
ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK. HOLDINGS AND THE MAKER, AND BY ACCEPTANCE OF
THIS NOTE, THE HOLDER, HEREBY (i) IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH
A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, AND (ii) IRREVOCABLY SUBMITS TO THE JURISDICTION
OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.

          THE MAKER AND, BY ACCEPTANCE HEREOF, THE HOLDER, TO THE FULLEST EXTENT THAT EACH MAY LAWFULLY
DO SO, WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING, WITHOUT LIMITATION, ANY TORT
ACTION), BROUGHT BY EITHER PARTY HERETO WITH RESPECT TO THIS NOTE.

          14. Subject to applicable law, Spheris may transfer this Note (or portions thereof) to any
holders of Spheris claims pursuant to a plan (the “Spheris Plan”) of reorganization or
liquidation under Chapter 11 of Title 11 of the United States Code. In case this Note or any
portion thereof is to be transferred to any such parties, Holdings and the Maker agree to use all
commercially reasonable efforts to facilitate such transfer, so long as such transfer does not
require registration under the Securities Act.

[Signature page follows]

- 16 -

 

     IN WITNESS WHEREOF, the Maker, Holdings and the Guarantors have caused this Note to be
executed as of the day and year first above written.

	 	 	 	 	 	 	 	 

	 	 	MAKER:	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	MEDQUIST TRANSCRIPTIONS, LTD.	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	By:
	 	/s/ Mark R. Sullivan	 	 
	 

	 	 	Name:
	 	 

Mark R. Sullivan
	 	 
	 

	 	 	Title:
	 	General Counsel	 	 
	 
	 	 	 	 	 	 	 
	 	 	HOLDINGS:	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	MEDQUIST INC.	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	By:
	 	/s/ Mark R. Sullivan	 	 
	 

	 	 	Name:
	 	 

Mark R. Sullivan
	 	 
	 

	 	 	Title:
	 	General Counsel	 	 
	 
	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	MEDQUIST IP LLC	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	By:
	 	/s/ Mark R. Sullivan	 	 
	 

	 	 	Name:
	 	 

Mark R. Sullivan
	 	 
	 

	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	MEDQUIST CM LLC	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	By:
	 	/s/ Mark R. Sullivan	 	 
	 

	 	 	Name:
	 	 

Mark R. Sullivan
	 	 
	 

	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 
	 	 	 	MEDQUIST OF DELAWARE, INC.	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	By:
	 	/s/ Mark R. Sullivan	 	 
	 

	 	 	Name:
	 	 

Mark R. Sullivan
	 	 
	 

	 	 	Title:
	 	Secretary	 	 

 

 

	 	 	 	 	 	 	 

	Agreed and Accepted:	 	 
	 
	 	 	 	 	 	 
	SPHERIS, INC.	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Robert L. Butler	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Robert L. Butler	 	 
	 

	 	Title:
	 	Chief Restructuring Officer	 	 

 

 

GUARANTEE

     1. Each of Guarantors hereby unconditionally and irrevocably guarantees, jointly and
severally, to each Holder and its successors and assigns (a) the full and punctual payment of
principal of and premium, if any, and interest, on the attached Subordinated Promissory Note of
MedQuist Transcriptions, Ltd. (the “Maker”), dated April 22, 2010 (the “Note”) when
due, whether at maturity, by acceleration, by redemption or otherwise and (b) the full and punctual
payment and performance within applicable grace periods of all other Obligations of the Maker under
the Note whether for fees, expenses, indemnification or otherwise under the Note (all the foregoing
being hereinafter collectively called the “Guaranteed Obligations”). Capitalized terms
used but not otherwise defined in this Guarantee shall have the meanings given them in the Note.

     2. Each Guarantor further agrees that the Guaranteed Obligations may be extended or renewed,
in whole or in part, without notice or further assent from each such Guarantor and that such
Guarantor will remain bound under this Guarantee notwithstanding any extension or renewal of any
Guaranteed Obligation.

     3. Each Guarantor waives presentation to, demand of, payment from and protest to the Maker of
any of the Guaranteed Obligations and also waives notice of protest for nonpayment. Each Guarantor
waives notice of any default under the Notes or the Guaranteed Obligations. The obligations of
each Guarantor hereunder shall not be affected by (a) the failure of any Holder to assert any claim
or demand or to enforce any right or remedy against the Maker or any other Person under the Note or
any other agreement or otherwise; (b) any extension or renewal of the Note or any other agreement;
(c) any rescission, waiver, amendment or modification of any of the terms or provisions of the Note
or any other agreement; (d) the release of any security held by any Holder for the Guaranteed
Obligations or any Guarantor; (e) the failure of any Holder to exercise any right or remedy against
any other guarantor of the Guaranteed Obligations; or (f) any change in the ownership of such
Guarantor.

     4. Each Guarantor hereby waives any right to which it may be entitled to have its obligations
hereunder divided among the Guarantors, such that such Guarantor’s obligations would be less than
the full amount claimed. Each Guarantor hereby waives any right to which it may be entitled to
have the assets of the Maker first be used and depleted as payment of the Maker’s or such
Guarantor’s obligations hereunder prior to any amounts being claimed from or paid by such Guarantor
hereunder. Each Guarantor hereby waives any right to which it may be entitled to require that the
Maker be sued prior to an action being initiated against such Guarantor.

     5. Each Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder to any security held for payment of the Guaranteed
Obligations.

     6. Each Guarantee is, to the extent and in the manner set forth in Section 9 of the Note,
subordinated and subject in right of payment to the prior payment in full of the principal of

- 1 -

 

and premium, if any, and interest and other Senior Debt of the Guarantor giving such Guarantee; and
each Guarantee is made subject to such provisions of the Note.

     7. Except as expressly set forth in Section 11 of this Guarantee, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever
or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure of any Holder to
assert any claim or demand or to enforce any remedy under the Note or any other agreement, by any
waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in
the performance of the obligations, or by any other act or thing or omission or delay to do any
other act or thing which may or might in any manner or to any extent vary the risk of such
Guarantor or would otherwise operate as a discharge of such Guarantor as a matter of law or equity.

     8. Each Guarantor further agrees that its Guarantee herein shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or
interest on any Guaranteed Obligation is rescinded or must otherwise be restored by any Holder upon
the bankruptcy or reorganization of the Maker or otherwise.

     9. In furtherance of the foregoing and not in limitation of any other right which any Holder
has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Maker to
pay the principal of or interest on any Guaranteed Obligation when and as the same shall become
due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with
any other Guaranteed Obligation, each Guarantor hereby promises to and shall, upon receipt of
written demand by the Holder, forthwith pay, or cause to be paid, in cash, to the Holder an amount
equal to the sum of (1) the unpaid principal amount of such Guaranteed Obligations and (2) accrued
and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by
applicable law).

     10. Each Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holder in respect of any Guaranteed Obligations guaranteed hereby until payment in
full in cash of all Guaranteed Obligations and all obligations to which the Guaranteed Obligations
are subordinated as provided in Section 9 of the Note. Each Guarantor further agrees that, as
between it, on the one hand, and the Holder, on the other hand, (x) the maturity of the Guaranteed
Obligations may be accelerated as provided in the Note for the purposes of such Guarantor’s
Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (y) in the event of
any declaration of acceleration of such Guaranteed Obligations as provided in Section 8 of the
Note, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and
payable by such Guarantor for the purposes of this Guarantee. Each Guarantor also agrees to pay
any and all costs and expenses (including reasonable attorneys’ fees and expenses) incurred by any
Holder in enforcing any rights under this Guarantee.

- 2 -

 

     11. Any term or provision of the Note to the contrary notwithstanding, the maximum aggregate
amount of the Guaranteed Obligations guaranteed hereunder by any Guarantor shall not exceed the
maximum amount that can be hereby guaranteed without rendering the Note and the Guarantee, as it
relates to such Guarantor, void or voidable under applicable law relating to solvency, fraudulent
conveyance or fraudulent transfer, prohibited distributions to shareholders or similar laws
affecting the rights of creditors generally.

     12. Each Guarantor that makes a payment under its Guarantee shall be entitled upon payment in
full in cash of all Guaranteed Obligations to a contribution from each other Guarantor in an amount
equal to such other Guarantor’s pro rata portion of such payment based on the respective net assets
of all the Guarantors at the time of such payment determined in accordance with GAAP.

- 3 -

 

Annex A

The following are the Listed Covenants:

	 	•	 	Offer to Purchase by Application of Net Proceeds Offer Amount;
	 
	 	•	 	Payment of Notes;
	 
	 	•	 	Maintenance of Office or Agency;
	 
	 	•	 	Reports (to be satisfied with current public reporting of Holdings if the Notes are
guaranteed by Holdings in accordance with Rule 3-10(d) of Regulation S-X);
	 
	 	•	 	Compliance Certificate;
	 
	 	•	 	Stay, Extension and Usury Laws;
	 
	 	•	 	Restricted Payments;
	 
	 	•	 	Dividend and Other Payment Restrictions Affecting Subsidiaries;
	 
	 	•	 	Incurrence of Indebtedness (to permit Senior Debt of up to $115 million);
	 
	 	•	 	Asset Sales;
	 
	 	•	 	Transactions with Affiliates;
	 
	 	•	 	Liens (to permit liens to secure the Senior Debt up to $115 million);
	 
	 	•	 	Conduct of Business;
	 
	 	•	 	Corporate Existence;
	 
	 	•	 	Offer to Repurchase upon Change of Control;
	 
	 	•	 	No Senior Subordinated Debt;
	 
	 	•	 	Future Guarantees by Domestic Subsidiaries;
	 
	 	•	 	Limitation on Preferred Stock of Restricted Subsidiaries;
	 
	 	•	 	Consolidated Leverage Ratio (as set forth in Section 7(i)(c) of the Note); and
	 
	 	•	 	Merger, Consolidation or Sale of Assets.

- 4 -exv10w5

Exhibit 10.5

Portions of this exhibit were omitted and filed separately with the Secretary of the
Securities and Exchange Commission (the “Commission”) pursuant to an application for confidential
treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934. Such portions are marked by a series of asterisks.

SALES AND SERVICES AGREEMENT

          This Sales and Services Agreement (the “Agreement”) dated as of March 09, 2010 is by
and between MedQuist Transcriptions, Ltd., a New Jersey corporation (together with its successors,
“MedQuist” or the “Company”), and CBay Systems & Services Inc., a Delaware
corporation (“CBay”).

RECITALS

          WHEREAS, CBay, the Company and their Affiliates have entered into several intercompany
agreements relating to sales and operational support, including (i) the Transcription Services
Agreement, dated as of April 3, 2009, by and between the Company and CBay, pursuant to which the
Company outsources certain medical transcription services to CBay (such agreement, as amended from
time to time prior to the date hereof, the “TSA”), (ii) the Subcontracting Agreement, dated
as of March 31, 2009, by and between MedQuist and CBay, pursuant to which CBay subcontracts certain
medical transcription, editing and related services to MedQuist (as such agreement may be amended
from time to time, the “Subcontracting Agreement”), and (iii) the CBayScribe Marketing
Agreement, dated as of October 1, 2009, by and between MedQuist and CBay, pursuant to which the
Company markets CBay’s CBayScribe products and services (as such agreement may be amended from time
to time, the “CBayScribe Marketing Agreement”);

          WHEREAS, CBay and the Company recognize that the success of their relationship will depend
upon the mutual commitment and cooperation of both parties; and

          WHEREAS, CBay and the Company desire to terminate the TSA and enter into a more comprehensive
intercompany agreement whereby (i) CBay would discontinue its New Customer marketing efforts for
Transcription Services to Hospitals in North America and (ii) CBay would become the exclusive
supplier to the Company of Indian or Asian based transcription production services (either directly
or through a network of third party suppliers (“ILPs”)).

          NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and for
other good and valuable consideration, and upon the terms and conditions contained herein, the
parties agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Definitions. In this Agreement, and in the Schedules attached to this Agreement,
the following terms, whether used in the singular or plural, shall have the respective meanings set
forth below:

     (a) “Administrative Safeguards” shall mean administrative actions, policies and
procedures to manage the selection, development, implementation and maintenance

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

2

of security measures to protect EPHI and to manage the conduct of CBay’s workforce in relation to
the production of that information as defined in 45 CFR §164.304.

     (b) “Affiliate” shall mean any individual or entity directly or indirectly
controlling, controlled by or under common control with, a party to this Agreement. For
purposes of this Agreement, (i) the direct or indirect ownership of over fifty percent (50%)
of the outstanding voting securities of an entity, or the right to receive over fifty
percent (50%) of the profits or earnings of an entity, or (ii) the power to direct or cause
the direction of the management or policies of a Person, whether through the ownership of
voting securities, by contract or otherwise, shall be deemed to constitute control. For
purposes of this definition, S.A.C. Private Capital Group, LLC shall not be deemed to be an
Affiliate of CBay or the Company.

     (c) “Client Ready Services” shall mean Transcription Services for which the
Threshold QA Volume shall be 0%.

     (d) “Confidential Information” shall mean all non-public information of a
confidential or proprietary nature (whether or not specifically labeled or identified as
“confidential”), in any form or medium, that relates to the business, products, financial
condition, services or research or development of either of the parties under this Agreement
and each of its Affiliates, suppliers, distributors, customers, independent contractors or
other business relations, including all trade secrets, know-how, compilations of data and
analyses, techniques, systems, formulae, recipes, research, records, reports, manuals,
documentation, models, data and data bases relating thereto; inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports and all similar or
related information.

     (e) “Contribution Margin” shall mean Revenues less the sum of Direct Production
Costs and Indirect Production Costs.

     (f) “Contribution Ratio” shall mean 20% of Revenues.

     (g) “Dictation” shall mean the audio dictated by a physician and recorded on
digital media as a computer digital audio file for conversion from voice into text or data.

     (h) “Direct Production Costs” shall mean the sum of (i) direct personnel costs
(i.e., wages, bonuses, fringe benefits and other employee related costs) for employees
directly involved in the provision of Transcription Services to MedQuist pursuant to this
Agreement (i.e., transcriptionists and first level quality assurance personnel), (ii)
production related telecommunication costs and other direct production expenses (i.e., third
party production fees, royalty or license fees and other expenses incurred directly as a
result of Transcription Services related production activities on behalf of MedQuist
pursuant to this Agreement), and (iii) any costs incurred by CBay under Section 3.4(e). For
purposes hereof, Direct Production Costs shall mean solely those costs included in the
general ledger accounts listed on Schedule H hereto.

 

			
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     (i) “Effective Date” shall mean the date this Agreement is executed by the
parties below following approval by the respective boards of directors (or any committee of
the board charged with such approval) of the parties.

     (j) “EPHI” shall mean Electronic Protected Health Information as that term is
defined by 45 CFR §164.513.

     (k) “HIPAA” shall mean the Health Insurance Portability and Accountability Act
of 1996.

     (l) “Hospital” shall mean a hospital, clinic or other institution that provides
inpatient or outpatient medical, surgical, or psychiatric care and treatment for the sick or
the injured which either (i) has inpatient beds or (ii) is directly related to or connected
to a hospital, clinic or other institution that has inpatient beds.

     (m) “Implementation Period” shall mean the 60 day period beginning the first
day that CBay transcribes or edits a live dictated report of a new client or new client work
type.

     (n) “Indirect Production Costs” shall mean the total of all allocations of
Indirect Production Costs for each production facility and support function involved in the
provision of Transcription Services to MedQuist. The allocation of said costs shall be
determined for each facility in India at which transcription services are performed by CBay
for MedQuist by multiplying (i) the sum of (x) indirect personnel costs (i.e., wages,
bonuses, fringe benefits and other employee related costs) for employees indirectly involved
in the provision of Transcription Services to MedQuist pursuant to this Agreement (i.e.,
second level quality assurance, supervisory, management and other production related
personnel) at such facility, and (y) other indirect production expenses (i.e., rental
expenses, utility expenses, customer penalties and other expenses incurred indirectly as a
result of and related to the provision of Transcription Services to MedQuist pursuant to
this Agreement) at such facility by (ii) a ratio, the numerator of which is the Volume of
Transcription Services performed for MedQuist hereunder at such facility and the denominator
of which is CBay’s total volume of Transcription Services performed at such facility. The
allocation of Indirect Production Costs other than those at the production facility shall be
based upon a ratio of the Volume of Transcription Services performed for MedQuist hereunder
to the total volume of all Transcription Services (or such other volume as may be
appropriate for that specific support function). For purposes hereof, Indirect Production
Costs shall mean solely those costs expended in India and included in the general ledger
accounts listed on Schedule H hereto.

     (o) “Laws” shall mean all applicable federal, municipal, state, local or
foreign statutes or laws, and shall be deemed also to refer to all rules and regulations
promulgated thereunder, by any applicable regulatory authority or otherwise, unless context
requires otherwise. Any reference to a particular law or regulation will be interpreted to
include any revision of or successor to such statute, law, rule or regulation regardless of
how it is numbered or classified.

 

			
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     (p) “Line” shall mean
*******

     (q) “MedQuist Audit Committee” shall mean the Audit Committee of the Board of
Directors of MedQuist Inc.

     (r) “New Customer” shall mean a customer or prospective customer that is not a
Current Customer.

     (s) “Non-Client Ready Services” shall mean Transcription Services for which the
Threshold QA Volume is *******.

     (t) “PHI” shall mean Protected Health Information as defined in 45 CFR
§164.501.

     (u) “Physician Practice” shall mean a medical practice comprised of one or more
physicians organized to provide patient care services, but which practice is not part of a
Hospital.

     (v) “Profit Sharing Amount” shall mean the excess of the Contribution Margin
over the Contribution Ratio.

     (w) “Revenue Cycle Management” shall mean the activities of Mirrus Systems, AMS
Plus, and other operations responsible for billing, coding, or collections.

     (x) “Revenues” shall mean the gross revenues received by CBay from MedQuist for
the provision of Transcription Services hereunder.

     (y) “Rupee Exchange Rate” shall mean the number of Indian Rupees that can be
purchased for one U.S. Dollar, as reported by The Wall Street Journal on the date in
question.

     (z) “Technical Safeguards” shall mean the technology and the policy and
procedures for its use that protect EPHI and control access to it as defined in 45 CFR
§164.304.

     (aa) “Term” shall mean the period of time commencing on the Effective Date and
ending on the Expiration Date.

     (bb) “Transcript” shall mean the document or computer file resulting from the
conversion of Dictation into text or data.

 

			
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     (cc) “Transcription Services” shall mean the transcription and/or editing
services that result in the conversion of physician Dictation into Transcript.

     (dd) “Volume” shall mean the volume of Transcription Services provided to
MedQuist hereunder.

ARTICLE II

COORDINATED SALES AND MARKETING EFFORTS

     2.1 CBay Discontinues Certain Marketing Efforts. From and after the Effective Date
until the Expiration Date, except as otherwise agreed upon in writing by MedQuist (following
approval by the MedQuist Audit Committee) and CBay on a case-by-case basis, CBay will cease any New
Customer sales efforts for Transcription Services to Hospitals in North America. For the avoidance
of doubt, the limitation in the previous sentence will not restrict CBay from the following
activities:

     (a) Current Customer Relationships with Hospitals. Maintaining, developing and
growing its relationships with current Hospital customers set forth on Schedule A (the
“Current Customers Schedule”), including their Affiliates and existing, new, or
subsequently acquired facilities of such persons (collectively, “Current Customers”)
and servicing and providing additional work types/services for such Current Customers,
including the Company’s products and services set forth on Schedule B (the “Current
Products and Services Schedule”).

     (b) Other Market Segments. Prospecting for New Customers in any other market
segment, including, but not limited to, the Physician Practice market segment.

     (c) Other Product/Service Categories. Selling any product/service, other than
Transcription Services, to any Hospital, including but not limited to, Revenue Cycle
Management products/services.

     (d) Current Pipeline. Servicing and continuing its sales efforts to the
Hospitals actively being pursued as of the date of this Agreement (“Current Pipeline
Customers”), set forth on Schedule C (the “Current Pipeline Customers
Schedule”), for twelve (12) months after the Effective Date. Unless the parties
mutually agree to extend this twelve (12) month period (which agreement in the case of
MedQuist will require the approval of the MedQuist Audit Committee), CBay will discontinue
its sales efforts to any Hospitals that have not become customers as of twelve (12) months
after the Effective Date.

     2.2 Marketing of Transcription Services. During the Term of this Agreement, the
Company will use its commercially reasonable efforts to sell and market Transcription Services to
Hospitals in North America other than Current Customers and Current Pipeline Customers. With
CBay’s express written consent, the Company may sell and market Transcription Services to any
Current Customer, Current Pipeline Customer or facilities acquired by either Current

 

			
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Customers or Current Pipeline Customers. CBay will provide the Company with such marketing
assistance, technical information and other cooperation as is reasonably requested by the Company
in connection with its marketing efforts.

     2.3 General Exceptions. Notwithstanding anything contained in this Agreement, neither
CBay nor MedQuist or their Affiliates shall be prohibited or restricted from acquiring, holding or
investing in, directly or indirectly through any of its Affiliates, securities of an entity engaged
in any business after the Effective Date, including the medical transcription business, the
Hospital sector, and/or the Physician Practice market. The provisions of this Agreement will apply
to any entity acquired after the Effective Date of this Agreement, unless the parties mutually
agree otherwise (which agreement in the case of MedQuist will require the approval of the MedQuist
Audit Committee).

     2.4 Group Purchasing Order Contracts. During the Term of this Agreement, CBay will
cooperate with the Company to transfer, to the fullest extent permissible, the rights and benefits
under CBay’s Group Purchasing Order (“GPO”) contracts set forth on Schedule D (the “GPO
Contracts Schedule”) to the Company in order to allow MedQuist to market its products and
services solely to New Customers that are Hospitals covered by such GPO contracts. If any such GPO
contract cannot be transferred, CBay shall provide or cause to be provided all commercially
reasonable assistance to the Company (not including the payment of any consideration) reasonably
requested by the Company to secure any lawful and commercially reasonable arrangement reasonably
proposed by the Company under which the Company shall obtain (without infringing upon the legal
rights of any third party) the economic claims, rights and benefits under such GPO contract and
shall assume any related economic burden with respect to such GPO contract. If any such GPO
contract cannot be transferred, and CBay cannot facilitate MedQuist’s beneficial use of any such
GPO contract pursuant to the previous sentence, then CBay shall contract for sales under such GPO
contract and engage the Company to provide Transcription Services thereunder pursuant to the
Subcontracting Agreement.

ARTICLE III

OFFSHORE TRANSCRIPTION SERVICES

     3.1 Termination of the TSA. The TSA is hereby terminated and superseded in its
entirety by this Agreement, other than with respect to the payment of any fees or penalties for
services provided under the TSA through the date of termination and Section 5.5 and Article VIII
thereof, which provisions shall survive such termination and not be superseded solely with respect
to services provided under the TSA through the date of termination.

     3.2 Exclusive Vendor Relationship. As of the Effective Date, until the Agreement is
terminated or this provision ceases to be applicable in accordance with Sections 5.5 or 7.5 hereof,
CBay shall be the Company’s exclusive provider of Indian or Asian Transcription Services, except as
otherwise agreed upon in writing by MedQuist and CBay on a case-by-case basis, MedQuist will cease
to directly or indirectly (except through CBay) purchase Indian or Asian Transcription Services
from any person or entity other than CBay or perform Indian or Asian Transcription Services itself
except pursuant to the Company’s International Labor Partner (“MQ ILP”) Vendor Contracts
for Indian or Asian Transcription Services set forth on Schedule E

 

			
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(“ILP Contracts”) prior to their assignment to CBay pursuant to Section 3.3. CBay
shall provide the Indian or Asian Transcription Services at substantially the same level of quality
as CBay provides similar services to its other clients, but in no event less than the standards
customary in the industry.

     3.3 MedQuist’s Current International Labor Partner Vendor Contracts. As of the
Effective Date the Company will take commercially reasonable measures to obtain consent, if
required, for the assignment of the ILP Contracts from each MQ ILP. The Company will assign to
CBay, and CBay will assume, each of the Company’s ILP Contracts in order to allow CBay to perform
initially the necessary Indian or Asian Transcription Services for the Company promptly following
its receipt of the consent of the MQ ILP party to such ILP Contract of such assignment. For
purposes of clarity, following such assignment, CBay shall be solely responsible to MedQuist for
the performance of all Indian and Asian Transcription Services and all other obligations under such
ILP Contract and such services shall be deemed to be performed by or on behalf of CBay. Following
the assignment of an ILP Contract, CBay shall have the right to amend, modify, terminate and
replace ILP Contracts and vendors in its discretion, and MedQuist will not be entitled to any
discounts, rebates, reductions in price or penalties under the ILP Contracts (except to the extent
set forth in Section 3.4(h)). If any ILP does not consent to the assignment of its ILP Contract,
the Company shall provide or cause to be provided all commercially reasonable assistance to CBay
(not including the payment of any consideration) reasonably requested by CBay to secure such
consent or cooperate with CBay (at CBay’s expense for any out-of pocket expenses) in any lawful and
commercially reasonable arrangement reasonably proposed by CBay under which CBay shall obtain
(without infringing upon the legal rights of any third party) the economic claims, rights and
benefits under such ILP contract and shall assume any related economic burden with respect to such
ILP contract.

     3.4 Pricing; Profit Sharing.

     (a) ILP Contracts. With respect to any ILP Contract that is assigned to CBay,
following such assignment, for Non-Client Ready Services performed under such ILP Contracts,
CBay will bill the Company, and the Company agrees to pay CBay, the amount required to be
paid for services under the ILP Contract at the rates in effect as of the Effective Date as
set forth in Schedule E, regardless of the date of actual transfer of the ILP Contract or
the date CBay begins or ceases to provide services under such contract (the “ILP
Contract Rate”). For Client Ready Services performed under such ILP Contracts, CBay
will bill the Company, and the Company agrees to pay CBay, the ILP Contract Rate plus
*******. Upon termination of an ILP Contract in accordance with its terms, CBay
will be paid the Services Fee under clause (b).

     (b) Services Fee. For Indian or Asian Transcription Services provided by CBay
other than through the ILP Contracts assigned to CBay, CBay will be paid at the rates set
forth in Schedule F (the “Services Fee Schedule”) (subject to changes for currency
fluctuation as described below) (the “Services Fee”). Notwithstanding anything
herein to the contrary, in no event shall the Services Fee net of impact of amounts received
by the Company pursuant to the Profit Sharing pursuant to Section 3.4(i) be greater than the
fee charged by CBay to any other customer to whom it is providing substantially similar
Transcription Services.

 

			
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          (i) Invoicing. An invoice for Service Fees will be generated by CBay twice
each month and payment is due within thirty (30) calendar days after the Company’s receipt
of the invoice and any other contractual reporting obligations of CBay due during the
applicable billing period.

     (c) Currency Fluctuation. If the average Rupee Exchange Rate during any three
month period following the Effective Date (such rate, the “Adjusted Rupee Exchange
Rate”) is 5% higher or lower than the average Rupee Exchange Rate during the twelve (12)
month period immediately preceding the Effective Date (such rate, the “Baseline Rupee
Exchange Rate”), the prices charged by CBay for its Indian or Asian Transcription
Services under this Agreement shall be adjusted upwards or downwards, as the case may be, by
a factor equivalent to the ratio of the Baseline Rupee Exchange Rate to the Adjusted Rupee
Exchange Rate. The most recent date on which such a modification occurs shall be deemed the
“Exchange Rate Price Modification Date.” Once the prices have been modified
pursuant to this paragraph, the first sentence of this paragraph shall be applied by
replacing the words “Effective Date” with the words “Exchange Rate Price Modification Date”
and adjustments may be made thereafter as set forth above.

     (d) Additional Costs. If the Company requests a material change in the scope
of the Transcription Services provided by CBay (including without limitation accelerated TAT
times (2 hours instead of 12 hours) or significantly more nighttime work), and CBay informs
the Company that such changes would increase CBay’s production costs over the costs that
would be incurred if there were no material change in the scope of Transcription Services
provided by CBay, then, in any such case, the expected additional costs, as specified in a
new increased cost per line rate, shall have to be identified and agreed to by the Company
before CBay begins performance of the Transcription Services incorporating the requested
changes. If the Company agrees to the additional production costs resulting from the
changes requested by the Company, as specified in a new increased cost per line rate, the
Company shall thereafter pay CBay the increased per line rate. If the Company does not
agree to the additional production costs resulting from the changes requested by the
Company, as reflected in a specified increased cost per line rate, CBay will not perform the
requested changes and the per line rate will remain constant. The parties shall work in
good faith to minimize the amount of any cost increases resulting from material changes in
the scope of the Transcription Services requested by the Company.

     (e) CBay assumes all Taxes, Duties, Delivery and Installation Fees. CBay
assumes responsibility for all excise, sales, use and similar taxes, export or import duties
and shipment, and delivery or installation fees.

     (f) Uncollected Services Fee. To the extent the Company cannot pay, or cause
to be paid, the Services Fee for any reason, including by reason of any prohibition on such
payment pursuant to any applicable law or the terms of any debt financing of the Company or
its subsidiaries, the payment by the Company or any of its subsidiaries to CBay of the
Services Fee will be payable immediately on the earlier of (i) the first date on which the
payment of such deferred Services Fee is no longer prohibited by law or

 

			
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under any contract applicable to the Company and the Company is otherwise able to make
such payment or cause such payment to be made, and (ii) total or partial liquidation,
dissolution or winding up of the Company. Notwithstanding anything to the contrary herein,
under any applicable law or under any contract applicable to the Company or its
subsidiaries, any forbearance of collection of the Services Fee by CBay shall not be deemed
to be a subordination of such payments to any other person, entity or creditor of the
Company or its subsidiaries. Any installment of the Services Fee not paid on the scheduled
due date will bear interest at an annual rate of six percent (6%), compounded quarterly,
from the date due until paid.

     (g) Disputed Services Fee. In the event that any invoiced amount is disputed
by the Company, the Company shall deliver written notice of such disputed amount to CBay
within thirty (30) calendar days after the date the invoice is due. Upon receipt of written
notice of a billing dispute, CBay and Company shall promptly exchange any backup or other
information reasonably necessary to support the correctness of any disputed amount. The
parties shall thereafter have thirty (30) calendar days (“Invoice Review Period”) in
which to examine such information, and to the extent such information substantiates payment,
reductions or credits in the applicable invoice, such will be applied promptly. Thereafter,
if CBay and the Company are unable to reach an agreement as to any remaining disputed
amount, CBay and the Company shall immediately enter into good faith negotiations to resolve
any remaining dispute, provided that in the case of MedQuist any resolution shall require
the approval of the MedQuist Audit Committee. In the event the parties are unable to resolve
such dispute within fifteen (15) calendar days after the end of the Invoice Review Period,
the dispute shall be settled pursuant to the provisions of Section 11.12 of this Agreement.

     (h) Penalties. The Company shall receive from CBay reimbursement for any
actual penalties paid (whether in cash or by credit against future services) by the Company
to its customers for Transcription Services performed either directly or indirectly (through
an ILP Contract) by CBay which due to CBay’s action or inaction fail to meet the Quality
Assurance or Turnaround Time performance requirements (as those terms are defined in the
underlying contracts with the Company’s customers) under the contracts with such customers.

     (i) On a monthly basis, the Company shall submit to CBay any and all invoices,
if any, for penalties paid by the Company to a customer due to CBay’s action or
inaction as explained above.

     (ii) CBay shall have 20 days to object to the Company’s conclusion that CBay’s
action or inaction caused the Company to incur a penalty to its customer. If CBay
objects, the parties will discuss the objection and try to resolve any disagreement
in good faith (provided that in the case of MedQuist any resolution shall require
the approval of the MedQuist Audit Committee), failing which the matter shall be
submitted to binding arbitration in accordance with Section 11.12. If CBay does not
object or the objection is resolved, then within 10 days thereafter CBay shall pay
to the Company an amount in cash equal to the sum of the penalties paid by the
Customer and submitted as invoices to CBay

 

			
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under paragraph (i) above; provided that if CBay does not object to the full
amount of the penalty, then CBay shall within 10 days of receipt of the invoice pay
to the Company an amount in cash equal to the portion of the penalties as to which
CBay is not objecting. Any penalties not paid on the due date set forth in this
paragraph (ii) will bear interest at an annual rate of six percent (6%), compounded
quarterly, from the date due until paid.

     (i) Profit Sharing. The Company shall be entitled to 50% of CBay’s Profit
Sharing Amount (the “Company’s Share”) in each Fiscal Year of CBay. Within 60 days
after the close of each Fiscal Year of CBay, the calculation of the Company’s Share will be
reviewed as part of the annual audit and CBay shall prepare and submit to the Company a
certificate, signed by CBay’s chief financial officer, specifying in reasonable detail the
relevant calculation of the Revenues, Direct Production Costs, Indirect Production Costs and
Profit Sharing Amount related to CBay’s Indian or Asian Transcription Services performed for
the Company; and the results of its operations and cash flow for the relevant transactions,
together with payment of the Company’s Share as set forth in the certificate. The Company
shall have 21 days to object to the calculation set forth in the certificate. If the
Company objects, the parties will discuss the objection and try to resolve any disagreement
in good faith (which resolution in the case of MedQuist will require the approval of the
MedQuist Audit Committee), failing which the matter shall be submitted to binding
arbitration in accordance with Section 11.12. If the Company has objected to the
calculation, then within 10 days following resolution of the objection, CBay shall pay to
the Company (or the Company shall pay to CBay, as the case may be) an amount in cash equal
to the difference, if any, between the Company’s Share as finally resolved and the Company’s
Share as set forth in the certificate and previously paid.

     (i) Example. By way of example only, if CBay earns $10 million in
Revenue from Transcription Services sold to the Company, and $3 million in
Contribution Margin on such services, the Company would be entitled to a payment of
$500,000 according to the following calculations. Contribution Margin in excess of
the Contribution Ratio would equal $3 million less $2 million (20% Contribution
Ratio on $10 million in Transcription Services Revenues), or $1 million of which
50%, or $500,000, would be paid to the Company.

     3.5 Excess Quality Assurance Expense. The Company shall have the right to charge, and
CBay shall pay, an amount equal to the Excess Quality Assurance Expense as explained in Schedule F.

     3.6 Books of Account. Appropriate records and books of account of CBay’s transactions
with, and the provision of services to, the Company under this Agreement shall be maintained by
CBay in accordance with GAAP consistently applied. Such records and books of account shall at all
times be maintained at such place of business of CBay as shall have been notified to the Company.
The books of account and the records of CBay shall be audited as of the end of each Fiscal Year by
its independent auditors. All such records shall be maintained during the Term of this Agreement,
or such longer period as may be required by relevant Law.

 

			
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     3.7 Inspection Rights of the Company. The Company, and any accountants, attorneys,
financial advisers and other representatives of the Company, may, from time to time at the
Company’s sole expense, visit and inspect the properties of CBay, examine (and make copies and
extracts of) CBay’s books, records and documents solely for purposes of confirming the calculation
of Revenues, Direct Production Costs, Indirect Production Costs, Contribution Margin, the Profit
Sharing Amount and the Company’s Share related to the Indian or Asian Transcription Services
provided by CBay to the Company under this Agreement, and may discuss those transactions with its
officers, employees and independent accountants, all at such reasonable times as the Company may
request on reasonable notice.

     3.8 Other Information. Upon the reasonable request of the Company, CBay shall, to the
extent reasonably practicable without interfering unduly with the ongoing operation and management
of CBay’s business and without imposing any significant expense or cost on CBay, prepare and
furnish, or cause to be prepared and furnished, to the Company, as soon as practicable following
such request, any additional financial or operating information or reports as are so reasonably
requested by the Company, related to determining Revenues, Direct Production Costs, Indirect
Production Costs, Contribution Margin, the Profit Sharing Amount and the Company’s Share.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

     4.1 CBay represents and warrants that it is fully authorized to enter into this Agreement and
that its entry into this Agreement does not violate any contractual obligation it owes to a third
party.

     4.2 CBay shall provide any operational, technical, production and quality assurance support to
reasonably meet the sales and operations requirements of the Company. However, should any such
request on the part of the Company require travel by individuals or entities who assist CBay in
fulfilling its obligations under this Agreement from their home station, the Company shall be
responsible for all such travel, lodging and related expenses of these individuals or entities to
the extent such expenses are submitted and approved by the Company prior to the expense being
incurred by CBay.

     4.3 The Company and CBay agree that they shall designate operational, sales, and
administrative personnel as points of contact, and each party shall maintain appropriate levels of
communication as required to fulfill their obligations under this Agreement.

     4.4 CBay represents and warrants that no individuals or entities shall assist CBay in
fulfilling CBay’s obligations and duties under this Agreement unless those individuals or entities:
(a) are employees of CBay, its Affiliates and other entities (“Covered Entities”) set forth
in Schedule G attached hereto, as modified pursuant to the mutual written consent of MedQuist and
CBay (the “Covered Entities Schedule”), or employees of Covered Entities; (b) if located
outside of the United States, perform all services in connection with this Agreement in a secure
site and shall not at any time perform Transcription Services remotely or outside of CBay’s
premises or the Covered Entities’ premises designated for performance of Transcription

 

			
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Services; (c) will in all cases have executed and as such present to the Company upon the
Company’s reasonable request such business agreements, HIPAA confidentiality agreements, employee
verifications and other similar documentation as may be required by the Company; and (d) perform
all services pursuant to this Agreement in full compliance with the terms of the Company’s
“International Labor Vendor Standards and Safeguards for HIPAA Compliance” (as more fully defined
and expressly limited in Section 5.5 herein) and any written modifications of such presented to
CBay during the Term of this Agreement. CBay further represents and warrants that it shall not
subcontract or assign any Transcription Services, duties or obligations under this Agreement in the
absence of the prior written authorization from the Company.

ARTICLE V

HIPAA COMPLIANCE

     5.1 CBay, for itself and on behalf of the Covered Entities, will:

     (a) Not use or further disclose any PHI other than as permitted or required by this
Agreement or as required by law;

     (b) Report to the Company’s Corporate Director of Information Privacy and Security any
use or disclosure of the PHI not provided for by this Agreement within forty-eight (48)
hours of becoming aware of the unauthorized use or disclosure;

     (c) Have procedures in place for mitigating, to the maximum extent practicable, any
deleterious effects from the use or disclosure of PHI in a manner contrary to this
Agreement;

     (d) Ensure that any individuals or entities who assist CBay in fulfilling its
obligations under this Agreement agree, in writing, to substantially the same restrictions
and conditions that apply to CBay with respect to such PHI. CBay shall obtain reasonable
assurances from any such individuals or entities that: (i) the information being disclosed
will be held confidentially and used or further disclosed only as required by law, (ii) the
individuals or entities will use the appropriate Administrative and Technical Safeguards to
prevent the unauthorized use or disclosure of the PHI and EPHI; and (iii) the individuals or
entities will immediately notify CBay of any instance of a breach of any of the PHI terms
set forth herein;

     (e) Ensure that all individuals and entities who assist CBay in fulfilling its
obligations under the Agreement are or shall be appropriately informed of the terms of this
Agreement and are under a legal obligation, by contract or otherwise, sufficient to enable
each individual and entity to fully comply with all provisions of this Agreement. CBay will
ensure that all individuals and entities who assist CBay in fulfilling its obligations under
this Agreement are educated on the Company’s privacy and security policies (as further
defined in Section 5.5 herein) and that sanctions are imposed for non-compliance with those
policies and procedures. CBay will also ensure that all individuals and entities who assist
CBay in fulfilling its obligations under the Agreement have signed Protected Health
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     (f) Make available to the Company such information as the Company may require to
fulfill the Company’s obligations to provide access to, provide a copy of, and account for
disclosures with respect to PHI pursuant to HIPAA and the HIPAA Regulations, including, but
not limited to, 45 CFR §164.524 and §164.528;

     (g) Make the Company’s PHI available as the Company may require to fulfill the
Company’s obligations to amend PHI pursuant to HIPAA and the HIPAA Regulations, including
but not limited to 45 CFR §164.526. CBay shall, as directed by the Company, incorporate any
amendments to the Company’s PHI into copies of such PHI maintained by CBay;

     (h) Make available the information required to provide an accounting of disclosures in
accordance with 45 CFR §164.528;

     (i) Make its internal practices, books, and records relating to the use and disclosure
of PHI received from, or created or received by CBay on behalf of, the Company available to
the Secretary of the U.S. Department of Health and Human Services for purposes of
determining the Company’s or a Company customer’s compliance with HIPAA;

     (j) Upon termination or expiration of the Agreement, or any time during the Term of
this Agreement, with respect to PHI that CBay maintains in any form, recorded on any medium
or stored in any storage system, including PHI retained or stored by individuals and
entities who assist CBay in fulfilling its obligations under the Agreement, at the Company’s
direction and if feasible, return to the Company or destroy all such PHI. A senior officer
of CBay shall certify in writing to the Company, within thirty (30) days after termination
or other expiration of the Agreement, that all PHI has been returned or disposed of as
provided above and that CBay no longer retains any such Protected Health Information in any
form;

     (k) If return or destruction of PHI is infeasible, notify the Company in writing within
thirty (30) days after termination or other expiration of the Agreement. Such notification
shall include: (i) a statement that CBay has determined that it is infeasible to return or
destroy the PHI in its possession; and (ii) the specific reasons for such determination. In
addition to providing such notification, CBay shall certify within such thirty (30) day
period that it will, and will require individuals and entities who assist CBay in fulfilling
its obligations under the Agreement to, extend any and all protections, limitations and
restrictions contained in this Agreement to any PHI retained after termination of the
Agreement and to limit any further uses and/or disclosures to those purposes that make the
return or destruction of the PHI infeasible;

     (l) Implement Administrative and Technical Safeguards that reasonably and appropriately
protect the confidentiality, integrity and availability of EPHI that CBay creates, receives,
maintains or transmits on behalf of the Company;

 

			
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     (m) Report to the Company’s Director of Information Privacy and Security within forty
eight (48) hours any “security incident” of which it becomes aware, as such term is defined
in the HIPAA Security Rule;

     (n) Ensure that any individuals and entities who assist CBay in fulfilling its
obligations under the Agreement to whom CBay provides EPHI agree in writing, to implement
reasonable and appropriate safeguards to protect EPHI as required herein; and

     (o) Upon request, provide to the Company a list of names of any individuals or entities
used to outsource the Company’s transcription and evidence of written assurances from those
individuals or entities (as required in 5.1 (d)) that they will agree to substantially the
same restrictions and conditions that apply to CBay with respect to such PHI.

     5.2 CBay, in its capacity as Business Associate (as that term is defined in the HIPAA
Regulations) to the Company, shall be permitted to use and disclose PHI in a manner that would not
violate the requirements of the HIPAA Regulations as follows: (a) for the proper management and
administration of CBay; (b) to carry out the legal responsibilities of CBay and to fulfill CBay’s
duties and responsibilities under this Agreement including in part disclosure to individuals and
entities who assist CBay in fulfilling its obligations under the Agreement; and (c) to provide data
aggregation services relating to the health care operations of the Company.

     5.3 CBay acknowledges that the Company is not conveying any right or title in the PHI to CBay.

     5.4 Notwithstanding anything to the contrary set forth herein, CBay shall indemnify, defend
and hold harmless the Company and any of the Company’s directors, officers, employees and agents
from and against any claim, liability, or expense (including reasonable attorneys’ fees), arising
out of or relating to any non-permitted use or disclosure of PHI or EPHI or other breach of this
Article V by CBay or any individuals and entities who assist CBay in fulfilling CBay’s obligations
under the Agreement.

     5.5 Following the execution of this Agreement, CBay shall at all times comply in all material
respects with the terms of the Company’s International Labor Vendor Standard and Safeguards for
HIPAA Compliance and any written modifications of such presented to CBay during the Term of this
Agreement (the “Company HIPAA Compliance Standards”). The Company shall give CBay five (5)
business days to consider and accept any modifications to the Company HIPAA Compliance Standards,
and if CBay does not object to such modifications within the aforementioned time period, then such
modifications shall be considered accepted by CBay and incorporated by reference. To the extent
that CBay objects to any modification of the Company HIPAA Compliance Standards, the parties will
discuss in good faith the negotiation of mutually acceptable terms. However, should the parties not
be able to reach agreement of the modifications within ten (10) days, the Company shall have the
right to, at its option, (i) submit such disagreement to binding arbitration in accordance with
Section 11.12, or (ii) terminate this Agreement. Subject to the provisions of Section 7.6, such
termination shall be effective immediately or at such other date as specified in the notice of
termination. The Company HIPAA Compliance Standards shall be hereby incorporated by reference into
this Agreement

 

			
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and the most current version has been supplied by the Company along with the fully executed
Agreement. The Company shall be permitted at any time, at the Company’s sole cost and expense,
reasonable access to and the ability to examine all information, in any form, which is necessary or
appropriate (as determined by the Company in its sole discretion) to review CBay’s compliance with
the Company HIPAA Compliance Standards (an “HIPAA Audit”). In the event that the Company in
its sole discretion determines as a result of an HIPAA Audit that CBay is not in material
compliance with the Company HIPAA Compliance Standards (a “Negative Finding”), and
notwithstanding anything herein to the contrary, (a) CBay shall promptly pay to the Company, as
liquidated damages and not as a penalty, (i) all costs and expenses associated with the HIPAA
Audit, and (ii) all costs and expenses incurred by the Company in connection with any liability,
loss, damage (including, without limitation, special, exemplary, punitive, consequential or
incidental damages), penalty, claim or cause of action relating directly or indirectly to the
Negative Finding including, without limitation, reasonable attorney’s fees; and (b) subject to the
provisions of Section 7.6, the Agreement shall be terminated effective immediately upon written
notice from the Company to CBay and, upon such termination, CBay shall immediately return to the
Company all Confidential Information (including, without limitation, all PHI) in its possession or
in the possession of any individuals and entities who assist CBay in fulfilling its obligations
under the Agreement.

ARTICLE VI

INTELLECTUAL PROPERTY MATTERS

     6.1 Any and all designs, artwork, logos, graphics, video, text, data code and other
proprietary or confidential materials supplied by the Company to CBay in connection with this
Agreement (the “Company Content”) shall remain the sole and exclusive property of the
Company. No copyrights, patents, trademarks or other Intellectual Property rights shall be
transferred from the Company to CBay with respect to any of the Company Content. However, the
Company hereby grants to CBay a worldwide, non-exclusive, unlimited fully paid-up license to use,
copy, modify, enhance, create derivative works of and otherwise use the Company Content in any
manner reasonably necessary in connection with the performance of the Transcription Services
hereunder (the “Company Content License”).

     6.2 Nothing in this Agreement shall be construed to grant to CBay any right to or interest in
any trademark, trade name, trade dress, service mark, copyright, patent, trade secret or know-how
(“Intellectual Property”) owned or asserted to be owned by the Company. CBay’s use of the
Intellectual Property shall be limited to the performance of the Transcription Services as
contemplated hereby. Any other use of the Intellectual Property shall constitute an infringement
thereof and/or a violation of the Company’s rights resulting in irreparable injury to the Company
and entitling the Company to immediate injunctive relief and to any other remedies at law or
equity.

     6.3 Any and all designs, artwork, logos, graphics, video, text, data code and other
proprietary or confidential materials supplied by CBay to the Company in connection with this
Agreement (the “CBay Content”) shall remain the sole and exclusive property of CBay. No
copyrights, patents, trademarks or other Intellectual Property rights shall be transferred from
CBay to the Company with respect to any of the CBay Content. However, CBay hereby grants to

 

			
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the Company a worldwide, non-exclusive, unlimited fully paid-up license to use, copy, modify,
enhance, create derivative works of and otherwise use the CBay Content in any manner reasonably
necessary in connection with the performance of the Transcription Services hereunder (the “CBay
Content License”).

     6.4 Nothing in this Agreement shall be construed to grant to the Company any right to or
interest in any Intellectual Property owned or asserted to be owned by CBay. Any use of such
Intellectual Property shall constitute an infringement thereof and/or a violation of CBay’s rights
resulting in irreparable injury to CBay and entitling CBay to immediate injunctive relief and to
any other remedies at law or equity.

     6.5 Application Service Provider License.

     (a) Through the use of software applications (the “Applications”) hosted on the
DEP and made available by means of the Internet, CBay shall have the ability to
access the DEP for the purpose of providing the Transcription Services described herein.
Subject to the terms and conditions set forth herein, the Company hereby grants to CBay for
the Term of this Agreement a non-transferable, non-exclusive limited right of access to, and
use of, the Applications solely for the purposes of performing the Transcription Services
hereunder. From time to time, the Company may require the agreement to and acknowledgement
of an end-user license, terms and conditions and/or other agreements prior to CBay accessing
the Applications.

     (b) With respect to its use of the Applications, CBay, at its own cost and expense,
shall: (i) not permit any individual or entity, other than authorized individuals and
entities under this Agreement, to use or gain access to the Applications; (ii) provide
reasonable security devices to protect against unauthorized usage; (iii) not adapt the
Applications in any way or use it to create a derivative work (other than reports that are
transcribed or edited using the Applications); and (iv) not remove, obscure, hinder or alter
the Company’s (or any other third party’s) proprietary notices, trademarks, or other
proprietary rights notices affixed to or contained in the Applications.

     (c) The Applications are the exclusive property of the Company and/or the Company’s
licensors, which shall retain all right, title and interest in and to the Applications,
including, without limitation, the Intellectual Property rights and any other rights under
United States and international copyright, patent, trademark, trade secret or other law.
CBay may not use the Applications for the benefit of any third parties or allow access to
the Applications by any third party, except as otherwise explicitly authorized hereunder.

     (d) CBay has developed and may continue to develop proprietary software tools (the
“Tools”) to enhance the productivity of its workforce, and/or better meet HIPAA
compliance requirements. CBay may at its sole discretion share these Tools with the Company.
Should the Company use these Tools, either with or without compensation to CBay, the Company
warrants it will not share these Tools with any third party without the specific written
permission of CBay.

 

			
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ARTICLE VII

TERM

     7.1 Term. This Agreement shall be effective on the Effective Date and continue until
the fifth anniversary of the Effective Date (the “Expiration Date”), unless sooner
terminated by the parties in accordance with Section 5.5 or this Article VII.

     7.2 Termination for Material Breach. Either party may terminate this Agreement or the
provision of any Service if the other party materially breaches any term of this Agreement
immediately after providing written notice of termination to the other party and, in the event of
termination due to a material breach that is curable, after providing not less than 20 days to cure
such breach as specified in such notice.

     7.3 Termination Upon Change of Control. In the event CBay and its Affiliates (other
than the Company and its subsidiaries) cease to control, directly or indirectly, the power to vote
at least thirty percent (30%) of the issued and outstanding common equity of the Company, the
Company or CBay may elect to terminate this Agreement.

     7.4 Renewal. After the initial Term of this Agreement, the Term of this Agreement
shall automatically renew for two additional five year terms, unless, not earlier than 12 months
nor less than six months prior thereto, either party provides the other with written notice of its
election to terminate this Agreement on the next Expiration Date.

     7.5 Selective Termination by Either Party. Notwithstanding the foregoing, (i) CBay
may, in its sole discretion, terminate Section 3.2 of this Agreement and allow the Company to
contract with CBay on a non-exclusive basis, and seek new providers of Indian or Asian
Transcription Services, and (ii) the Company may, in its sole discretion (following approval by the
MedQuist Audit Committee), terminate Section 2.1 of this Agreement and allow CBay to market to New
Customer Hospitals.

     7.6 Post-Termination Transcription Services. In the event either CBay or the Company
elects to terminate this Agreement pursuant to Sections 5.5, 7.2 or 7.3 as the case may be, or in
the event either the Company or CBay elects not to renew this Agreement pursuant to Section 7.4
hereof, then CBay shall continue to perform Transcription Services hereunder for a period of up to
one year to allow the Company to transition the Transcription Services being provided hereunder to
other providers, and the Company shall use commercially reasonable efforts to transition such
services as promptly as reasonably practicable.

ARTICLE VIII

INDEMNIFICATION AND INSURANCE

     8.1 Indemnification Obligations.

     (a) CBay hereby indemnifies and holds the Company harmless from and against any and all
liability, loss, damage, claim or cause of action, and expenses connected therewith,
including, without limitation, reasonable attorney’s fees and

 

			
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expenses, to the extent such damage (i) is caused directly or indirectly by CBay, its
employees or agents in the performance of CBay’s obligations hereunder and (ii) results in
costs incurred or liability by the Company to any of its customers.

     (b) The Company hereby indemnifies and holds CBay harmless from and against any and all
liability, loss, damage, claim or cause of action, and expenses connected therewith,
including, without limitation, reasonable attorney’s fees and expenses, to the extent such
damage (i) is caused directly or indirectly by the Company, its employees or agents in the
performance of the Company’s obligations hereunder and (ii) results in costs incurred or
liability by CBay to any of its customers (other than the Company).

     8.2 Insurance. CBay represents and warrants that during the Term of this Agreement, it
shall maintain the types and amounts of insurance set forth below:

     (a) General liability insurance, including contractual liability coverage of all of
CBay’s obligations under this Agreement and products liability/completed operations coverage
in such amounts and covering such risks and liabilities as are in accordance with normal
industry practice.

     (b) Such insurance shall be evidenced by a certificate of insurance which shall provide
that the Company shall receive thirty (30) days’ prior written notice of cancellation or
material change of such policy.

ARTICLE IX

CONFIDENTIALITY

     9.1 Confidentiality. CBay and the Company acknowledge that Confidential Information is
to be considered highly confidential. Each party shall use Confidential Information disclosed to it
by or on behalf of the other party only for the purposes contemplated by this Agreement and shall
not disclose such Confidential Information to any third party without the prior written consent of
the disclosing party. The foregoing obligations shall survive the expiration or termination of this
Agreement for a period of five (5) years. These obligations shall not apply to Confidential
Information that:

     (a) Is known by the receiving party in connection with providing services under this
Agreement at the time of its receipt, and not through a prior disclosure by the disclosing
party, as documented by business records;

     (b) Is published at the time of disclosure, or thereafter becomes published or
otherwise part of the public domain without breach of this Agreement by the receiving party;

     (c) Is subsequently disclosed to the receiving party by a third party who has the right
to make such disclosure;

 

			
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     (d) Is developed by the receiving party independently of Confidential Information or
other information received from the disclosing party and such independent development is
properly documented by the receiving party; or

     (e) Is required to be disclosed by law or court order, provided that notice is promptly
delivered to the other party in order to provide an opportunity to seek a protective order
or other similar order with respect to such Confidential Information and thereafter
discloses only the minimum information required to be disclosed in order to comply with the
request, whether or not a protective order or other similar order is obtained by the other
party.

Nothing herein shall be interpreted to prohibit the Company from publishing the results of its
studies in accordance with industry practices.

ARTICLE X

MUTUAL COMMITMENTS

     10.1 Executive Committee Formation. Both parties commit to the formation of an
Executive Committee that is responsible for the effective coordination of the coordinated sales and
marketing efforts, offshore Transcription Services activities and for the making of any decisions
under or related to this Agreement. The Executive Committee shall consist of equal numbers of
members appointed by CBay and by MedQuist, provided that the persons appointed by MedQuist shall
have no position with CBay or any of its Affiliates (other than the Company). The Executive
Committee shall meet at least once a month by telephone or in person. CBay and the Company shall
deliver to the Executive Committee such financial and other information regarding the delivery of
Transcription Services hereunder as the Executive Committee or any of its members may request.

     10.2 CBay’s Reduction of Costs. CBay commits to use its best efforts to reduce its
Direct Production Costs and Indirect Production Costs through improved productivity, better use of
technology, and other methods as it, in it sole discretion but in consultation with the Executive
Committee, deems appropriate so as to strive to optimize its Contribution Margin and as such to
maximize the profit sharing payments to MedQuist under Section 3.4(i).

     10.3 CBay’s Reporting of Financial and Operational Data. CBay commits to use its best
efforts to provide complete financial and operational data about the Transcription Services
provided to the Company, including but not limited to, monthly financial statements showing
Revenues, Direct Production Costs, Indirect Production Costs, Contribution Margin, other expenses
and productivity. CBay shall use reasonable efforts to inform the Executive Committee prior to
switching any MedQuist customer from an ILP currently performing Transcription Services for such
customer, it being acknowledged and agreed that any such determination shall be made by CBay in its
sole discretion.

     10.4 MedQuist’s Maintenance and Enhancement of Systems. MedQuist commits to use its
best efforts to maintain and enhance its system platforms and technology (including but not

 

			
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limited to DEP) to support continuing improvement in operational performance and reduction in
Direct Production Costs and Indirect Production Costs of CBay.

     10.5 MedQuist’s Option to Determine Volume. MedQuist shall have the sole right to
determine the volume of Transcription Services performed in India and Asia (subject to the
limitations of this Agreement) and to withdraw Indian and Asian Transcription Services volume as it
determines in its sole discretion necessary to address quality or performance issues.

ARTICLE XI

GENERAL PROVISIONS

     11.1 Notices. Wherever provision is made in this Agreement for the giving of any
notice, such notice shall be in writing and shall be deemed to have been duly given if mailed by
first class United States mail, postage prepaid, addressed to the party entitled to receive the
same or delivered personally to such party at the address specified below, or if delivered
personally, sent by facsimile transmission or sent by overnight courier. All notices shall be
given,

     if to CBay, to:

2661 Riva Rd Building 800

Annapolis, MD 21401

Attention: President

Facsimile: 410-266-9409

     with a copy (which shall not constitute notice) to:

Simpson Thacher & Bartlett LLP

1999 Avenue of the Stars, 29th Floor

Los Angeles, California 90067

Attention: Daniel Clivner

Facsimile: (310) 407-7502

     if to the Company, to:

1000 Bishops Gate Boulevard, Suite 300

Mt. Laurel, NJ 08054

Attention: Chief Executive Officer

Facsimile: (856) 206-4215

     with copies which shall not constitute notice to:

General Counsel

MedQuist Inc.

1000 Bishops Gate Boulevard, Suite 300

Mt. Laurel, NJ 08054

 

			
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Facsimile: (856) 206-4215

Chairman of the Audit Committee

MedQuist Inc.

1000 Bishops Gate Boulevard, Suite 300

Mt. Laurel, NJ 08054

Facsimile: (856) 206-4215

and

Fulbright & Jaworski L.L.P.

666 Fifth Avenue

New York, New York 10103

Attention: Paul Jacobs

Facsimile: (212) 318-3400

or to such other address, in any such case, as any party hereto shall have last designated by
notice to the other parties. Notice shall be deemed to have been given on the day that it is so
delivered personally or sent by facsimile transmission and the appropriate confirmation received
or, if sent by overnight courier, shall be deemed to have been given one day after delivery to the
courier company, or if mailed, three days following the date on which such notice was so mailed.

     11.2 Assignment. This Agreement and the rights and duties hereunder shall be binding
upon and inure to the benefit of the successors and assigns of each of the parties hereto, but
shall not be assignable or delegable by any party without the prior written consent of the other
party.

     11.3 Waivers. Any waiver by CBay or the Company of any breach of or failure to comply
with any provision of this Agreement by the other party shall be in writing and shall not be
construed as, or constitute, a continuing waiver of such provision, or a waiver of any other breach
of, or failure to comply with, any other provision of this Agreement.

     11.4 Compliance with Laws. The parties agree to comply with all Laws applicable to
the performance of their obligations hereunder.

     11.5 Governing Law. This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the State of New Jersey without giving effect to any
conflicts of law principles.

     11.6 Third Parties. Nothing herein is intended or shall be construed to confer upon
or give to any person other than the parties hereto, any rights or remedies under or by reason of
this Agreement.

     11.7 Entire Agreement; Amendment. This Agreement sets forth the entire agreement of
the parties with respect to the subject matter hereof and supersedes any prior oral agreement with
respect thereto. This Agreement may not be amended orally but only by an instrument in writing
duly executed by the parties. Nothing in this Agreement is intended to amend or modify

 

			
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the
Subcontracting Agreement or the CBayScribe Marketing Agreement, each of which shall remain in
effect in accordance with its respective terms.

     11.8 Headings. The headings of the Articles and Sections of this Agreement are
inserted for convenience of reference only and shall not be deemed to constitute a part hereof.

     11.9 Counterparts. This Agreement may be executed in any number of counterparts, all
of which taken together constitute one and the same instrument, and any of the parties hereto may
execute this Agreement by signing any such counterpart.

     11.10 Force Majeure. Neither party shall be liable for any failure of, or delay in
the performance of, its obligations hereunder for the period that such failure or delay is due to
earthquake, flood, fire or similar acts of God, terrorism, public enemy, civil unrest, riots,
strikes or general labor disputes, or any other cause beyond such party’s reasonable control.

     11.11 Severability. If any provision of this Agreement is declared invalid or
unenforceable by a court of competent jurisdiction, the validity or enforceability of any other
provision of this Agreement shall not be affected.

     11.12 Injunctive Relief and Resolution of Disputes.

     (a) Injunctive Relief. The parties to this Agreement acknowledge and agree that
remedies at law are inadequate in the event of any breach or threatened breach by any party
of its agreements and obligations as set forth in this Agreement. Notwithstanding Sections
11.12(b) — (d), in addition to any other remedy which may be available, the non-breaching
party shall be entitled to petition for injunctive and/or other equitable relief restraining
the breach or threatened breach of the provisions and/or obligations in this Agreement.

     (b) If any dispute or controversy shall arise between the parties as to any matter
arising out of or in connection with this Agreement or the transactions
contemplated hereby, the parties shall attempt in good faith to resolve such dispute or
controversy by mutual agreement. If such dispute or controversy cannot be so resolved, it
shall be resolved solely by binding arbitration in accordance with the provisions of Section
11.12(c).

     (c) In the event that any such dispute or controversy cannot be resolved in accordance
with the provisions of the first sentence of Section 11.12(b), such dispute or controversy
shall be finally settled by binding arbitration in New Jersey under the Commercial Rules of
the American Arbitration Association then in effect by one or more arbitrators appointed in
accordance with such rules. The decision of such arbitrator(s) shall be final and binding,
and shall not be subject to appeal. Each party shall bear its own fees and expenses
incurred in connection with the arbitration, and shall share equally the costs of the
arbitrator(s), provided that the arbitrator may in its discretion require that the
non-prevailing party pay all or a portion of the fees and expenses of the prevailing party.

 

			
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     (d) Each of the parties hereto hereby irrevocably and unconditionally: (i) submits for
itself and its property in any legal action or proceeding seeking injunctive relief,
enforcing the arbitration provision set forth in Section 11.12(c), or for recognition and
enforcement of any judgment in respect thereof or any arbitral award rendered with respect
hereto in accordance with Section 11.12(c), to the non-exclusive general jurisdiction of the
courts of the State of New Jersey and of the United States of America sitting in the
District of the State of New Jersey; (ii) consents that any such action or proceeding may be
brought in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same; (iii) agrees
that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to its address set forth in Section 11.1 hereof; and (iv) agrees that nothing
herein shall affect the right to effect service of process in any other manner permitted by
law.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 

	MEDQUIST TRANSCRIPTIONS, LTD.	 	 	 	CBAY SYSTEMS & SERVICES INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

Name:
	 	 
	 	 	 	 

Name:
	 	 
	 

	 	Title:
	 	 	 	 	 	Title:	 	 

 

			
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SCHEDULE A

CBay Current Customers Schedule

*******

 

			
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*******

 

			
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SCHEDULE B

Current MedQuist Products and Services

	•	 	DocQment Enterprise Platform (“DEP”): MedQuist’s web based dictation and
transcription management system. Within DEP are the following applications:

	 	o	 	DocQmanageTM: Included application which enables customer to manage authorized
users, set-up business processes and report on Client data derived as a result of using the
DEP.
	 
	 	o	 	DocQscribeTM: Included application that provides an Internet-based,
password-controlled typing and editing user interface which will allow authorized users to
listen to Voice Files through streaming audio delivered to their desktops, transcribe or
edit reports from Voice Files, and return completed reports to Vendor for
post-transcription processing through DocQmanageTM and onward distribution to customer.
	 
	 	o	 	File Storage: Included application that allows for the accessing of reports
via DocQmanageTM for up to three hundred sixty-five (365) days following completed
transcription. Voice Files can be accessed via DocQmanageTM for up to thirty (30) days
following dictation. Admission, Discharge and Transfer (“ADT”) can be accessed via
DocQscribeTM for up to ninety (90) days following the date the ADT message was received into
the DocQmanageTM database.
	 
	 	o	 	DocQspeechTM: Optional application pursuant to which MedQuist can provide
Automated Speech Recognition to customer. DocQspeechTM is a speech recognition process
based on the integration of the SpeechMagicTM engine with the DEP and provides
speech recognized reports and associated Voice Files to a medical editor for correction.
	 
	 	o	 	DocQsignTM: Optional application pursuant to which MedQuist can provide
electronic signature services to the customer. DocQsignTM is the physician
approval and signature application within the DEP.
	 
	 	o	 	VoiceQTM: Optional application pursuant to which MedQuist can provide a
recording system for use over telephone lines. MedQuist will publish domestic, toll-free
U.S. telephone numbers assigned to customer. MedQuist and Customer will agree on greetings
and voice server configurations to be used by authorized Customer dictators

	•	 	DocQvoiceTM - captures voice through a variety of devices: toll-free 800 number for call-in
dictation, handhelds and premise-based dictation systems,
	 
	•	 	DocQrouteTM: distribution engine that facilitates complex printing rules, faxing and
uploading to HIS systems,
	 
	•	 	CodeRunner w/ CAC: packages a third-party computer-assisted coding program (CAC) with our
CodeRunner coding workflow software to deliver a Web-based product to manage the coding
enterprise
	 
	•	 	Coding Services
	 
	•	 	MedQuist Performance Monitor (MPM): Reporting tool that provides detailed reports and
business analytics, reports, graphs, to monitor and optimize the clinical documentation
process.
	 
	•	 	DEP on an Application Services basis
	 
	•	 	SpeechQTM for Radiology
	 
	•	 	SpeechQTM for General Medicine

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

28

SCHEDULE C

Current Pipeline Customers Schedule

*******

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

29

Note: To the extent that (i) a CBay Pipeline Customer listed above is, as of the Effective Date,

 currently serviced by MedQuist or in the MedQuist sales pipeline, (ii) a portion of any of a CBay
Pipeline Customer listed above is not serviced by CBay as of the Effective Date, or (iii) a CBay
Pipeline Customer listed above has sent out, or sends out, an RFP (Request for Proposal), MedQuist,
without the prior written consent of CBay, may pursue a sales opportunity or retention efforts for
any such CBay Pipeline Customer currently serviced by MedQuist or in MedQuist’s pipeline, portions
of such CBay Pipeline Customer not serviced by CBay or CBay Pipeline Customer that has sent out or
sends out an RFP

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

30

SCHEDULE D

GPO Contracts Schedule

*******

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

31

SCHEDULE E

ILP Contracts Schedule

	1.	 	Accentia Technologies, Ltd. Agreement by and between MedQuist Transcriptions,
Ltd. and Accentia Technologies, Ltd. effective March 24, 2009, as amended by Amendment No.1
effective July 2, 2009.
	 
	2.	 	Decipher Intime Transcriptions Private Limited. Agreement by and between
MedQuist Transcriptions, Ltd. and Decipher Intime Transcriptions Private Limited effective
March 23, 2009.
	 
	3.	 	Gemini Bay Consulting Ltd. Agreement by and between MedQuist Transcriptions,
Ltd. and Gemini Bay Consulting Ltd. effective March 23, 2009

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

32

SCHEDULE F

Services Fee Schedule

	 	 	 	 	 	 	 
	 	 	 	 	Price	 	 
	Type of	 	 	 	Non-Client	 	Price
	Service	 	Service Descriptions	 	Ready	 	Client Ready
	A

	 	Transcription performed
by CBay’s
transcriptionists for
Company Customers
located in the United
States of America
	 	*******
	 	*******
	B

	 	Transcription performed
using the Company’s
Automated Speech
Recognition application
(with editing performed
by CBay) for Company
Customers located in
the United States of
America
	 	*******
	 	*******

CBay shall identify to the Company, the specific Company customers for whom CBay is able to supply
Client Ready Transcription Services. The Company shall designate to CBay in writing which of the
Company customers identified by CBay that the Company wishes CBay to provide Client Ready
Transcription Services. CBay shall be paid at the rates set forth above for Client and Non-Client
Ready Services.

The Threshold QA Volume for Client Ready Services shall be *******. The Threshold QA Volume for
Non-Client Ready Services shall be *******.

During the Implementation Period, CBay shall have the right to route up to ******* of the Transcribed
lines to the Company’s quality assurance without incurring a charge back for quality assurance
services; provided, however, that there shall be no Implementation Period with respect to any
MedQuist customer that CBay elects to switch from an ILP currently performing Transcription
Services for such customer to CBay.

After the Implementation Period, in the event that CBay routes transcription volume during any
billing period in excess of the applicable QA Threshold, the Company shall apply a charge back at
the actual domestic quality assurance cost per line for all lines in every report routed to Company
quality assurance resources above the QA Threshold (the “QA Credit”). This domestic quality
assurance cost per line will initially be set at ******* and shall be adjusted annually to
reflect the Company’s average domestic quality assurance cost per line during the prior calendar
year.

The Company shall invoice CBay monthly for the applicable QA Credit, and shall have the right to
offset the amount of a QA Credit, if any, against invoices due by MedQuist to CBay under this
Agreement.

If MedQuist, in its reasonable judgment, determines in accordance with existing custom and practice
and after notification to the Executive Committee, that the performance by CBay of Transcription
Services for a MedQuist customer is not meeting the quality standards necessary for the customer’s
satisfaction or specified in MedQuist’s contract with such customer, MedQuist

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

33

shall have the right, at its sole option, to elect to perform some or all of the quality assurance
work for such customer while MedQuist and the Executive Committee work to address and remedy the
performance issues. If MedQuist elects to perform any portion of such quality assurance work, (A)
MedQuist shall notify CBay and shall be entitled to the QA Credit for such work as set forth on
this Schedule F and (B) an issues resolution committee reporting to the Executive Committee with
representatives from MedQuist and CBay will be immediately convened, with an objective of resolving
the quality assurance performance issues as soon as possible. The issues resolution committee
shall report to the Executive Committee in no less than 30 day intervals following MedQuist’s
election to perform such quality assurance work.

The parties hereto shall negotiate in good faith a resolution to any issues that may arise in the
future under the Internal Revenue Code and applicable state tax laws in respect of this Agreement.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

34

SCHEDULE G

The Covered Entities Schedule

Shaster

Technology Center,S-3,

Technocrats Industrial Estate,

Balanagar, Hyderabad — 500 037

DHS

102, Jivan Silkmill Compound,

Opp Sakinaka Telephone Exchange ,

Sakinaka, Mumbai 400072

Saral

22 New York Tower A,

Sarkhej-Gandhinagar Highway,

Thaltej, Ahmedabad, PIN code number 380054

Insignia

10, Sir Theagaraya Road,

T.Nagar, Chennai, India.600 017

Rtec

A-53, T.T.C. Industrial Area,

M.I.D.C. Near. Nelco Bus Stand,

Mahape, Navi Mumbai India – 400705

Gokul

2nd Floor, Panchvati Plaza,

Deshmukh Road,

Tilakwadi, Belgaum-590006

Lake

159 Sarjapura Road,

1st Block

Koramangala, Bangalore, Karnataka – 560034

Sharp Info Solutions Pvt. Ltd.

SF. No. 3300/2(B)2

Sitra Road, Sharp Nager

Kalappatti, Coimbatore – 641 035

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

35

SCHEDULE H

General Ledger Accounts

	 	 	 	 	 

	Direct Costs

	 	G/L Accounts
	 	Allocation to MQ
	Direct Personnel Costs including
Transcription Labor and 1st Level QA
Labor (wages, bonuses, incentives,
fringe benefits etc)

	 	 4310001 to 4340001,4110001& 4110002
	 	Direct or allocated based

upon production volume
	Direct Cost of Non-Captive
production (P Center Cost)

	 	 41200045	 	 
	Telecommunication costs

	 	 4510001 to 4510004	 	 
	Royalty License, Taxes and Other Fees

	 	 4660001 to 4660002,4632001 to 4632002	 	 
	Indirect Costs

	 	G/L Accounts
	 	Allocation to MQ
	Indirect Personnel Costs for
Indirect Labor within the Production
Facilities as well as Corporate QA
and Audit Labor, Production
Management, Production Supervision,
and Scheduling and Purchasing Labor
(wages, bonuses, incentives, fringe
benefits etc)

	 	 4310001 to 4340001
	 	 
	 
	Rental and Utility expenses within
Production Facilities

	 	 4631001,4631002,4520001 to
4520008,4631003	 	 
	 
	Travel, Transportation,
Entertainment and Meal Expenses

	 	 4710001 to 4730003	 	Allocated based on
production volume except
for costs where a
different allocation
method is more
appropriate — for
example some allocations
are based on MQ seats to
total seats at
production centers.
	Customer Penalties (as incurred and
charged by MQ)

	 	 41200001	 
	Professional and Other Fees of
Production Facilities

	 	 4610001 to 4610003 ,4640001
to 4640004	 
	Maintenance and Repairs

	 	4650001 to 4650003	 
	Other Indirect costs

	 	 4100001 to 4100004,4510001 to
4510004,4530001 to 4530005 and
4620001 to 4620003	 

 

			
	Notes
	 
	a.	 	MQ production is currently carried out at all captive production facilities. Of these CTU4,CTU5,CTU7,CKAR-DSK and CTS are fully dedicated
to MQ production.
	 
	b.	 	MQ work is carried out in a secured, enclosed environment with access controls and restrictions. G&A costs are therefore allocated on seat basis
	 
	c.	 	The current account codes, groups etc could change in the event of software upgradation, integration, account code streamlining etc. These are
ongoing activities.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

36

Example of Direct Labor Cost Allocation:

The transcriptionist labor costs (wages, bonuses, fringe benefits, and incentives) for individuals or facilities that are identifiable and
dedicated to production work for MedQuist would be charged to MedQuist production volumes. However, such costs for individuals or facilities that
are performing transcription for both MedQuist and other customers, will be allocated between MedQuist and the other customers based upon the most
direct method possible or based upon a ratio of MedQuist volume to total production volume. An example follows:

	 	•	 	If labor costs at the CTU4 facility was $500,000 and all production volume from CTU4 is for MQ, the labor cost pool charged to MQ
would be $500,000
	 
	 	•	 	If labor costs at Ckar was $400,000 and it could not be allocated more directly (either by individual or work group) and MQ
accounted for 60% of the total production at Ckar, then 60% of the cost or $240,000 would be allocated to MQ.

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

 

37

EXHIBIT 1

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

	EXHIBIT 1

	DecHexCharDecHexCharDecHexCharDecHexChar
——  ——  ——  —

	0 00 Null 32 20 Space 64 40 @ 96 60 -

	1 01 Start of heading 33 21  65 41 A 97 61 a

	2 02 Start of text 34 22 “ 66 42 B 98 62 ta

	3 03 End of text 35 23 # 67 43 C 99 63 c

	4 04 End of transmit 36 24 S 68 44 D 100 64 d

	5 05 Enquiry 37 25% 69 45 E 101 65 e

	6 06 Acknowledge 38 26 £ 70 46 F 102 66 f

	7 07 Audible bell 39 27 ‘ 71 47 G 103 67 g

	8 08 Backspace 40 28 (72 48 H 104 68 h

	9 09 Horizontal tab 41 29) 73 49 I 105 69 i

	10 OALinefeed 42 2A * 74 4AJ 106 6Aj

	11 OBVertical tab 43 2B + 75 4EK 107 6Bk

	12 OCFormfeed 44 2C, 76 4CL 108 6C 1

	13 ODCarriage return 45 2D •- 77 4DH 109 6Dm

	14 OEShift out 46 2E . 78 4EN 110 6En

	15 OFShift in 47 2F / 79 4F 0 111 6Fo

	16 10 Data link escape 48 30 0 80 50 P 112 70 p

	17 11 Device contrail 49 31 1 81 51 Q 113 71 q

	18 12 Device control 2 50 32 2 82 52 R 114 72 r

	19 13 Device control 3 51 33 3 83 53 S 115 73 s

	20 14 Device control 4 52 34 4 84 54 T 116 74 t

	21 15 Neg. acknowledge 53 35 5 85 55 U 117 75 u

	22 16 Synchronous idle 54 36 6 86 56 V 118 76 v

	23 17 End trans, block 55 37 7 87 57 W 119 77 w

	24 18 Cancel 56 38 8 88 58 X 120 78 x

	25 19 End of medium 57 39 9 89 59 Y 121 79 y

	26 1ASubstitution 58 3A : 90 5AZ 122 7Az

	27 IBEscape 59 3B ; 91 SB [ 123 7B {

	28 1CFile separator 60 3C < 92 5C \ 124 7C |

	29 IDGroup separator 61 3D = 93 5D ] 125 7D }

	30 IERecord separator 62 3E > 94 5E A 126 7E ~

	31 IFUnit separator 63 3F 7 95 5F 127 7F

	*******  — Material has been omitted and filed separately with the
Commission.

 

38

 

			
	*******	 	- Material has been omitted and filed separately with the Commission.

	DecHexCharDecHexCharDecHexCharDecHexChar
——  ——  ——  —

	128 80 C, 160 AOa 192 CO L 224 EOa

	129 81 u 161 Ali 193 Cl -1- 225 ElB

	130 82 e 162 A2 6 194 C2 T 226 E2 T

	131 83 a 163 A3 u 195 C3 |- 227 E3 n

	132 84 a 164 A4 n 196 C4  —  228 E4 Z

	133 85 a 165 ASN 197 C5 -f 229 E5 a

	134 86 a 166 A6 a
198 C6 |= 230 E6 y.

	135 87 c 167 A7 ° 199 C7 |f- 231 E7 T

	136 88 e 168 A8 c 200 C8 It 232 E8 *

	137 89 e 169 A9 r- 201 C9 |j= 233 E9 (»>

	138 8Ae 170 AA -, 202 CA =t 234 EA Q

	139 SBl 171 AEH 203 CB =n= 235 EB 5

	140 8Cl 172 ACli 204 CC ||= 236 EC «

	141 8Di 173 ADi 205 CD = 237 ED 0

	142 8EA 174 AE « 206 CE | 238 EE n

	143 8FA 175 AF » 207 CF === 239 EFn

	144 90 E 176 bo ; 208 DO -
240 FO =

	145 91 £ 177 Bl  209 Dl =p 241 Fl ±

	146 92 8. 178 B2 B 210 D2 T 242 F2 2

	147 93 6 179 B3 | 211 D3 IL 243 F3 ^

	148 94 o 180 B4 -| 212 D4 1= 244 F4 [

	149 95 6 181 B5 =| 213 D5 p 245 F5 J

	150 96 u 182 B6 | 214 D6 ,,- 246 F6 t

	151 97 u 183 B7 -n 215 D7 f 247 F7 *

	152 98 y 184 B8 =] 216 D8 =)= 248 F8

	153 99 6 185 B9 =|| 217 D9 J 249 F9 •

	154 9AU 186 BA || 218 DA r 250 FA •

	155 9B * 187 BB =n 219 DB | 251 FBV

	156 9C £ 188 BC =J 220 DC H 252 FC *

	157 9D ¥ 189 BD •” 221 DD | 253 FD *

	158 9E £ 190 BEJ 222 DE | 254 FE •

	159 9F f 191 BF -, 223 DF • 255 FF

	*******  — Material has been omitted and filed separately with the
Commission.

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