MEDQUIST INC
EX-10.17
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.17</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">April 21, 2005</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael Clark<br>
42225 N. Olympic<br>
Fields Court<br>
Anthem, AZ 85086</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mike:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of MedQuist Inc. (the &#147;<u>Company</u>&#148;),
this Agreement describes your severance benefits should your employment with
the Company terminate pursuant to the conditions set out below.&#160; For purposes of this Agreement, you are
referred to as the &#147;<u>Employee</u>.&#148;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Employment
At-Will</u>.&#160; Nothing contained in this
Agreement is intended to create an employment relationship whereby Employee
will be employed other than as an &#147;at-will&#148; employee.&#160; Employee&#146;s employment by the Company may be
terminated by Employee or the Company at any time.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severance
Payments</u>.&#160; Employee&#146;s employment by
the Company may be terminated at any time.&#160;
Upon termination, Employee will be entitled to the payment of accrued
and unpaid salary through the date of such termination.&#160; All salary, commissions and benefits will
cease at the time of such termination, subject to the terms of any benefit
plans then in force or enforceable under applicable law and applicable to
Employee, and the Company will have no further liability or obligation
hereunder by reason of such termination; provided, however, that if Employee&#146;s
employment is terminated by the Company without Cause, Employee will be
entitled to continued payment of his base salary (at the rate in effect upon
termination), subject to applicable federal, state, and local income tax
deductions, for a period of 12 months to be paid in accordance with the Company&#146;s
normal payroll process.&#160; Notwithstanding
the foregoing, no amount will be paid or benefit provided under this paragraph
unless and until (x) Employee executes and delivers a general release of claims
against the Company and its subsidiaries in a form prescribed by the Company,
which will include, among other things, non-competition and non-solicitation
obligations for the duration of the severance period, and (y) such release
becomes irrevocable.&#160; Any severance pay
or benefits provided under this paragraph will be in lieu of, not in addition to,
any other severance arrangement maintained by the Company.&#160; No severance benefits will be paid in the
event that Employee resigns his employment with the Company; provided, however,
that Employee will be paid severance benefits if he tenders his written
resignation within 30 days following a substantial and material diminution of
his duties or a reduction in his base salary in excess of ten percent, which
diminution or reduction is not cured by the Company within 10 days of receiving
Employee&#146;s written resignation.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination for
Cause</u>.&#160; For purposes of this
Agreement, &#147;<u>Cause</u>&#148; means the occurrence of any of the following:&#160; (1) Employee&#146;s refusal, willful failure or
inability to perform (other than due to illness or disability) his employment
duties or to follow the lawful</font></h3>


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<h3 style="font-weight:normal;margin:0pt 0pt .0001pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">directives of
his superiors; (2) misconduct or gross negligence by Employee in the course of
employment; (3) conduct of Employee involving any type of disloyalty to the
Company or its subsidiaries, including, without limitation: fraud,
embezzlement, theft or dishonesty in the course of employment; (4) a conviction
of or the entry of a plea of guilty or nolo contendere to a crime involving
moral turpitude or that otherwise could reasonably be expected to have an
adverse effect on the operations, condition or reputation of the Company, (5) a
material breach by Employee of any agreement with or fiduciary duty owed to the
Company; or (6) alcohol abuse or use of controlled drugs other than in
accordance with a physician&#146;s prescription.&#160;
No severance benefits will be paid in the event that the Company
terminates the Employee for Cause.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire
Agreement; Amendment</u>.&#160; This Agreement
contains the entire agreement and understanding of the parties hereto relating
to the subject matter hereof.&#160; This
Agreement may not be changed or modified, except by an agreement in writing
signed by each of the parties hereto.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>.&#160; This Agreement shall be governed by, and
enforced in accordance with, the laws of the State of New Jersey without regard
to the application of the principles of conflicts of laws.</font></h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To acknowledge your agreement to and acceptance of the
terms and conditions of this Agreement, please sign below in the space provided
within 5 days of the date of this Agreement and return a singed copy to my
attention.&#160; If the Agreement is not
signed and returned within 5 days, the terms and conditions of this Agreement
will be deemed withdrawn.</font></p>

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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading -->Sincerely,</p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MEDQUIST
  INC.</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Frank Lavelle</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accepted and Agreed:</font></p>

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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->/s/ Michael Clark</p>
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableLeft --><!-- SET mrlNoTableShading -->Michael Clark</p>
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<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p>
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