MEDQUIST INC
EX-10.2
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<FILENAME>a06-23030_3ex10d2.htm
<DESCRIPTION>EX-10.2
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<p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">SEPARATION AGREEMENT AND GENERAL RELEASE</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
Separation Agreement and General Release (&#147;Agreement&#148;) is hereby entered into
by Linda Reino (&#147;REINO&#148;) and MedQuist Inc., together with its parents,
subsidiaries, divisions, affiliates, related companies, predecessors and
successors (&#147;MEDQUIST&#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>Departure
Date</u>.&#160; REINO&#146;s employment with
MEDQUIST was terminated effective May 14, 2007 (the &#147;Departure Date&#148;).&#160; As of the Departure Date, REINO was relieved
of all titles, duties, responsibilities and authority as an officer of
MEDQUIST.</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>Termination
of Employment Agreement/Survival of Certain Provisions</u>.&#160; As of the Departure Date, REINO understands
and agrees that the August&nbsp;10, 2006 Employment Agreement between REINO and
MEDQUIST (the &#147;Employment Agreement&#148;), was terminated, except as may otherwise
be provided for in the Employment Agreement or as may be required by operation
of law.&#160; Without limiting the foregoing,
REINO understands and agrees that the covenants and enforcement provisions of
Section 4 of the Employment Agreement shall remain in effect in accordance with
their terms.&#160; A true and correct copy of
the Employment Agreement is attached hereto as Exhibit A.</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>No
Future MedQuist Employment</u>.&#160; REINO
understands and agrees that:&#160;
(a)&nbsp;she has no intention of applying for and will not apply for or
otherwise seek reemployment or reinstatement with MEDQUIST; and
(b)&nbsp;MEDQUIST has no obligation to reinstate, rehire, reemploy or hire
REINO at any time in the future.</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>Consideration</u>.&#160; In consideration for REINO entering into this
Agreement and fully abiding by its terms, and assuming REINO has not revoked
the Agreement as described in 18 below, MEDQUIST agrees to provide REINO with
the following consideration:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Separation
Benefits</u>.&#160; The separation benefits
set forth in Section <i>5 </i>of the
Employment Agreement;</font></h4>

<h4 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Response
to Inquiries</u>.&#160; MEDQUIST agrees that,
in response to any inquiries regarding REINO&#146;s departure, it will only provide
the information set forth in MEDQUIST&#146;s May 14, 2007 press release regarding
REINO&#146;s departure from MEDQUIST, a true and correct copy of which is attached
hereto as Exhibit B, along with only confirming dates of employment and
salary.&#160; REINO shall direct any inquiries
to Donna Jack at (856) 206-4905 or </font>djack@medquist.com.</h4>

<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>No
Other Compensation or Benefits Owing</u>.&#160;
REINO understands and agrees that, except as otherwise provided for in
this Agreement and as may be required by the Employment Agreement, REINO is not
and will not be due any other compensation or benefits from MEDQUIST.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;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;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Release
by REINO</u>.&#160; In consideration of the
compensation, benefits and agreements provided for pursuant to this Agreement
and the Employment Agreement, the sufficiency of which is hereby acknowledged,
REINO, for herself and for any person who may claim by or through her, releases
and forever discharges MEDQUIST, and its pa</font>st, present and future parents,
subsidiaries, divisions, affiliates, related companies, predecessors,
successors, </h3>


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<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;">&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;">officers, directors, attorneys, agents, and employees (the &#147;Releasees&#148;),
from any and all claims or causes of action that REINO had, has or may have,
relating to REINO&#146;S employment with and/or termination from MEDQUIST, up until
the date of this Agreement, including, but not limited to, any claims arising
under Title VII of the Civil Rights Act of 1964, as amended, Section 1981 of
the Civil Rights Act of 1866, as amended, the Civil Rights Act of 1991, as
amended, the Family and Medical Leave Act, the Age Discrimination in Employment
Act, as amended by the Older Workers Benefit Protection Act of 1990 (&#147;ADEA&#148;),
the Americans with Disabilities Act, the Employee Retirement Income Security
Act (&#147;ERISA); claims under any other federal, state or local statute,
regulation or ordinance; claims for discrimination or harassment of any, kind,
breach of contract or public policy, wrongful or retaliatory discharge,
defamation or other personal or business &#145;injury of any kind; claims for breach
of any agreement between REINO and MEDQUIST or for any compensation or benefits
provided for pursuant to any such agreement; and any and all other claims to
any form of legal or equitable relief or damages; any other claims for
compensation or benefits; or any claims for attorneys&#146; fees or costs.</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;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exclusion
for Certain Claims</u>.&#160; REINO and MEDQUIST
understand and agree that the release in Paragraph 6 shall not apply to any
claims, including any claims under ADEA, arising after the effective date of
this Agreement, nor shall anything herein prevent any party from instituting
any action to enforce the terms of this Agreement.</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;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exclusion
of Filing EEOC Charges/Waiver of Individual Recovery</u>.&#160; REINO and MEDQUIST understand and agree that
nothing in this Agreement shall prevent REINO from filing a charge with the
Equal Employment Opportunity Commission (&#147;EEOC&#148;), or from participating in any
EEOC investigation or proceeding; provided, however, that REINO waives any and
all rights to recover any individual damages or relief in connection with any
EEOC investigation or proceeding.</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;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disclosure
of</u>  <u>Any Material Information</u>.&#160;
As of the date REINO signs this Agreement, REINO represents and warrants
that she has disclosed to MEDQUIST any information in her possession concerning
any conduct involving MEDQUIST that she has any reason to believe may be
unlawful, violates any MEDQUIST policy or would otherwise reflect poorly on
MEDQUIST in any respect.</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;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Duty
to Cooperate</u>.&#160; REINO understands and
agrees that she shall cooperate fully with MEDQUIST regarding any matter,
including, but not limited to, any litigation, investigation, governmental
proceeding or internal MEDQUIST review, which relates to any matter in which
REINO was involved or concerning which MEDQUIST reasonably determines REINO may
have responsive or relevant information.&#160;
REINO further understands and agrees that such cooperation includes, but
is not limited to, full disclosure of all relevant information; truthfully
testifying and/or answering questions; and making herself reasonably available
for interviews, depositions or court appearances in connection with any such
litigation, investigation, proceeding or internal MEDQUIST review.&#160; REINO understands and agrees that she shall
render any such cooperation in a timely manner and at such times and places as
may be mutually agreeable to REINO and MEDQUIST.&#160; Upon submission of appropriate documentation,
MEDQUIST shall reimburse REINO for reasonable travel, lodging, meals, and
telecommunications expenses incurred by REINO in connection with her compliance
with this </font></h3>


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<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;">&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;">Paragraph.&#160; Except as may be
prohibited by operation of law, REINO understands and agrees that she shall
immediately notify MEDQUIST if she is contacted for an interview or receives a
subpoena or request for information in any matter related to or concerning her
employment with MEDQUIST.&#160; REINO further
understands and agrees that she will not initiate any communication or respond
to any inquiry with a member of the press regarding MEDQUIST, and will refer
any such inquiry to MEDQUIST, unless REINO is responding to a press release or
other communication issued by MEDQUIST regarding REINO&#146;s employment with
MEDQUIST.</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;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;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Return
of Property</u>.&#160; REINO represents and
warrants that as of the date she signs this Agreement she has returned all
property of MEDQUIST, regardless of the type or medium (i.e., hard or flash
drive, computer disk, CD-ROM, DVD-ROM) upon which it is maintained, including,
but not limited to, all customer lists, vendor lists, business plans and
strategies, financial data or reports, memoranda, correspondence, software,
contract terms, compensation and commission plans, and any other documents
pertaining to the business of MEDQUIST, or its customers or vendors, as well as
any credit cards, keys, identification cards, and any other documents, writings
and materials that REINO came to possess or otherwise acquired as a result of </font>and/or in connection with REINO&#146;s
employment with MEDQUIST.&#160; Should REINO
later find any MEDQUIST property in REINO&#146;s possession, REINO agrees to
immediately return it.&#160; REINO further
agrees not to maintain any copies of said property or make any copies of said
property available to any third-party.</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;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Disparagement</u>.&#160; The parties agree not to engage in any form
of conduct or to make any statements or representations that disparage or
otherwise impair the reputation, goodwill or commercial interests of REINO or
MEDQUIST.</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;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Remedies
for Breach</u>.&#160; REINO understands and
agrees that a breach of this Agreement or any provision of the Employment
Agreement that survives its expiration will result in immediate and irreparable
injury to MEDQUIST. REINO, therefore, agrees that, in addition to any remedy
MEDQUIST may have under the Agreement, the Employment Agreement, or applicable
law, MEDQUIST shall be entitled to a forfeiture of any amounts still due and
owing to REINO under the terms of this Agreement or the Employment
Agreement.&#160; Nothing herein shall be
construed as prohibiting MEDQUIST from pursuing any other remedies for any
breach.</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;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Admission
by MedQuist</u>.&#160; REINO understands and
agrees that this Agreement shall not be deemed or construed as an admission of
liability by MEDQUIST for any purpose.&#160;
Specifically, but without limiting the foregoing, REINO understands and
agrees that this Agreement shall not constitute an admission that any action by
MEDQUIST relating to REINO was in any way wrongful or unlawful.&#160; REINO further agrees that nothing contained
in this Agreement can be used by REINO, or any other individual in any way as
precedent for future dealings with MEDQUIST, or any of its officers, directors,
attorneys, agents or employees.</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;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>General</u>.</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>.&#160; If any provision of this Agreement is found
by a court of competent jurisdiction to be unenforceable, in whole or in part,
then that provision will </font></h4>


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<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 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;">be eliminated, modified or restricted in whatever manner is necessary
to make the remaining provisions enforceable to the maximum extent allowable by
law.</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors</u>.&#160; This Agreement shall be binding upon,
enforceable by, and inure to the benefit of REINO, MEDQUIST and each Releasee,
and REINO&#146;s and MEDQUIST&#146;s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees, and to
any successor or assign of each Releasee, but neither this Agreement, nor any
rights, payments, or obligations arising hereunder may be assigned, pledged,
transferred, or hypothecated by REINO or MEDQUIST.</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Controlling
Law and Venue</u>.&#160; This Agreement shall
be construed and enforced under the laws of and before the courts of the State
of New Jersey.&#160; Any action relating to
this Agreement or the Employment Agreement shall be brought in state court in
Burlington County, New Jersey, or in Federal Court for the District of New
Jersey.</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver</u>.&#160; No claim or right arising out of a breach or
default under this Agreement can be discharged by a waiver of that claim or
right unless the waiver is in writing signed by the party hereto to be bound by
such waiver.&#160; A waiver by any party
hereto of a breach or default by another party of any provision of this
Agreement shall not be deemed a waiver of future compliance therewith and such
provision shall remain in full force and effect.</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notices</u>.&#160; All notices, requests, demands and other
communications regarding this Agreement shall be in writing and delivered in
person or sent by Registered or Certified U.S.&#160;
Mail, Postage Prepaid, Return Receipt Requested, and properly addressed
as follows:</font></h4>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To MEDQUIST:</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
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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>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1000 Bishops
  Gate Boulevard</font></p>
  </td>
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  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suite 300</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mt. Laurel, NJ
  08054-4632</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:
  General Counsel</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To REINO:</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Linda Reino</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1529 Canyon
  Drive</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Downingtown, PA
  19335</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt 252.0pt;text-indent:-144.0pt;"><font size="2" face="Times New Roman">&nbsp;</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;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire
Agreement/Amendment</u>.&#160; The parties
hereto agree that this Agreement and those provisions of the Employment
Agreement that survive its expiration constitutes the entire agreement between
REINO and MEDQUIST, and that neither may be modified except by written
document, signed by 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;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Knowing
and Voluntary Action</u>.&#160; REINO
acknowledges that she received this Agreement on May 15,<i>  </i>2007 and has
consulted an attorney before signing this Agreement.&#160; REINO further represents and warrants that
she has read this Agreement; has been given a period of at least twenty one
(21) days to consider the Agreement; understands its meaning and application;
and is signing of her own free will with the intent of being bound by it.&#160; If REINO elects to sign this Agreement prior
to the expiration of twenty one (21) days, she has done so voluntarily and
knowingly.</font></h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<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;">&nbsp;</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;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Revocation
of Agreement</u>.&#160; REINO further acknowledges
that she may revoke this Agreement at any time within a period of seven (7)
days following the date she signs the Agreement.&#160; Notice of revocation shall be made in
writing, sent via Registered or Certified U.S. Mail, Postage Prepaid, Return
Receipt Requested and properly addressed to MEDQUIST in accordance with
Paragraph 15 above.&#160; Such revocation must
be received by MEDQUIST by the close of business of the first day following the
end of the seven-day revocation period.&#160;
This Agreement shall not become effective until after the time period
for revocation has expired.</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;">IN WITNESS
WHEREOF, the parties have executed and agreed to this Agreement consisting of
five (5)<i>  </i>pages.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableFull --><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->LINDA REINO</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Linda Reino</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June 13,
  2007</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MEDQUIST INC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: Howard
  Hoffmann</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: CEO</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June 28,
  2007</font></p>
  </td>
 </tr>
</table>

<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
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<div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A</font></b></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></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;">August 10, 2006</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Linda Reino<br>
c/o MedQuist Inc.<br>
1000 Bishops Gate Blvd., Suite 300<br>
Mt. Laurel, NJ 08054</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Linda:</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 the terms of your new
employment as the Company&#146;s Chief Operating Officer, which will commence on
October 2, 2006 (the &#147;<u>Employment Commencement Date</u>&#148;). For purposes of
this Agreement, you are referred to as the &#147;<u>Employee</u>.&#148; Other capitalized
terms used in this Agreement have the meanings defined in <u>Section 7</u>,
below.</font></p>

<h1 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;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term</u>.
The Company shall employ Employee hereunder for a three (3) year term
commencing on the Employment Commencement Date hereof (the &#147;<u>Term</u>&#148;),
which Term will be automatically extended for additional one (1) year periods
beginning on the third anniversary of the Employment Commencement Date and upon
each subsequent anniversary thereof unless either party provides the other
party with at least ninety (90) days&#146; prior written notice of its intention not
to renew this Agreement unless terminated earlier pursuant to Sections 3 or 5
of this Agreement.</font></h1>

<h1 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;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Consideration</u>.</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; C<u>ompensation</u>.
As consideration for all services rendered by Employee to the Company and for
the Covenants contained herein, Employee will be entitled to:</font></h2>

<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; base salary at an
annual rate of $310,000;</font></h3>

<h3 style="font-family:Times New Roman;font-size:10.0pt;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; participate in
MedQuist&#146;s Management Bonus Plan, commencing in 2007. Your target bonus in this
plan will be 45% of your base salary for 2007 and following years. The target
bonus is the payment amount that the Employee shall be eligible to receive if
the Company and Employee both attain the pre-established bonus plan target
objectives. The actual bonus award may be higher or lower than the target bonus
amount based upon achievement of the objectives by Employee and the Company.
Management Bonus Plan target objectives shall be developed on or before
February 28</font>th
of each year of the Management Bonus Plan;</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; participate in the
same employee benefit plans available generally to other full-time employees of
the Company, subject to the terms of those plans (as the same may be modified,
amended or terminated from time to time); (benefits information package
previously provided to you);</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; receive relocation
support in accordance with the Company Relocation Policy. This relocation offer
will be in effect for the first twenty-four (24) months of your employment;</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; if Employee&#146;s
employment is terminated by the Company without Cause the severance pay and
benefits are described below in <u>Section 5</u>.</font></h3>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Long Term
Incentives</u>. In addition, from time to time, the Board may review the
performance of the Company and Employee and, in its sole discretion, may grant
stock options, shares of restricted stock or other equity-based incentives to
Employee to reward extraordinary performance and/or to encourage Employee&#146;s
future efforts on behalf of the Company. The grant of any such equity
incentives will be subject to the terms of the Company&#146;s equity-based plans and
will be evidenced by a separate award agreement by and between the Company and
Employee.</font></h2>

<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; Upon joining
MedQuist, you will become entitled to a special stock option grant of 80,000
shares of non-qualified stock options (&#147;Special Option Grant&#148;) to purchase
Company common stock, no par value (&#147;Common Stock&#148;), pursuant to the Company&#146;s
Stock Option Plan adopted May 29, 2002 (the &#147;Option Plan&#148;). The grant date of
the Special Option Grant will occur on the later of (i) the date the Company
becomes current in its reporting obligations under the Securities Exchange Act
of 1934; or (ii) the first date thereafter when the Form S8 Registration
Statement for the Option Plan complies with the requirement of the Securities
Exchange Commission provided that you are still an employee on the grant date.
The option price for the Special Option Grant shall be equal at least to the
fair market value of the Company&#146;s Common Stock as of the grant date. The
Special Option Grant will be subject to all of the terms and conditions of the
Option Plan and the Stock Option Agreement that will be issued if and when the
grant becomes effective. Your right to exercise the option will vest in equal
20% installments on each of the first five (5) anniversaries of the grant date.
In the event of a &#147;Change of Control&#148; (as defined below) of the Company while
you are an employee, your Special Option Grant may, from and after the date
which is six months after the Change of Control (but not beyond the expiration
date of the option), be exercised for up to 100% of the total number of shares
then subject to the Special Option Grant minus the number of shares previously
purchased upon exercise of such option (as adjusted for any change in the
outstanding shares of the Common Stock of the Company in accordance with the
terms of the Option Plan) and your vesting date will accelerate accordingly. A
&#147;Change of Control&#148; shall be deemed to have occurred upon the happening of any
of the following events:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A change within a
twelve-month period in the holders of more than 50% of the outstanding voting
stock of the Company; or</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any other event
deemed to constitute a &#147;Change of Control&#148; by the Company&#146;s Board of Directors.</font></h4>

<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; Contingent upon
Employee&#146;s continued attainment of performance objectives, the Company agrees
to deliver a long term incentive value of $60,000 annually through one of the
following, as determined in the Company&#146;s sole discretion: (i) a stock option
grant pursuant to the Option Plan, (ii) a restricted stock grant or (iii) a
cash-based long term incentive program to be developed. The long term incentive
value of Company stock will be calculated based on an industry accepted stock
valuation methodology.</font></h3>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><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>Employment
At-Will</u>. 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. Employee&#146;s employment by the Company may be terminated by
Employee or the Company at any time; </font><i>provided,
however, </i>that while employed by the Company, the terms and </h1>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">conditions of Employee&#146;s
employment by the Company will be as herein set forth; <i>and provided further,</i> that <u>Section 4</u>
of this Agreement will survive the termination of Employee&#146;s employment.</font></p>

<h1 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;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Covenants</u></font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Solicitation</u>.
While employed by the Company and for the eighteen (18) month period following
the cessation of that employment for any reason (and without regard to whether
such cessation was initiated by Employee or the Company), Employee will not do
any of the following without the prior written consent of the Company:</font></h2>

<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; solicit, entice or
induce, either directly or indirectly, any person, firm or corporation who or
which is a client or customer of the Company or any of its subsidiaries to
become a client or customer of any other person, firm or corporation;</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; influence or attempt
to influence, either directly or indirectly, any customer of the Company or its
subsidiaries to terminate or modify any written or oral agreement or course of
dealing with the Company or its subsidiaries (except in Employee&#146;s capacity as
an employee of the Company); or</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; influence or attempt
to influence, either directly or indirectly, any person to terminate or modify
any employment, consulting, agency, distributorship, licensing or other similar
relationship or arrangement with the Company or its subsidiaries (except in
Employee&#146;s capacity as an employee of the Company).</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Disclosure</u>.
Employee shall not use for Employee&#146;s personal benefit, or disclose,
communicate or divulge to, or use for the direct or indirect benefit of any
person, firm, association or company other than Company, any &#147;Confidential
Information,&#148; which term shall mean any information regarding the Business
methods, Business policies, policies, procedures, techniques, research or
development projects or results, historical or projected financial information,
budgets, trade secrets, or other knowledge or processes of, or developed by,
Company or any other confidential information relating to or dealing with the
Business operations of Company, made known to Employee or learned or acquired
by Employee while in the employ of Company, but Confidential Information shall
not include information otherwise lawfully known generally by or readily
accessible to the general public. The foregoing provisions of this subsection
shall apply during and after the period when the Employee is an employee of the
Company and shall be in addition to (and not a limitation of) any legally
applicable protections of Company interest in confidential information, trade
secrets, and the like. At the termination of Employee&#146;s employment with
Company, Employee shall return to the Company all copies of Confidential
Information in any medium, including computer tapes and other forms of data
storage.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Competition</u>.
While employed by the Company and for the eighteen (18) month period following
the cessation of that employment for any reason (and without regard to whether
such cessation was initiated by Employee or the Company), Employee shall not
directly or indirectly engage in (as a principal, shareholder, partner,
director, officer, agent, employee, consultant or otherwise) or be financially
interested in any business which is involved in business </font></h2>

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<h2 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;">activities
which are the same as or in direct competition with Business activities carried
on by the Company, or being definitively planned by the Company at the time of
termination of Employee&#146;s employment. Nothing contained in this subsection
shall prevent Employee from holding for investment up to three percent (3%) of
any class of equity securities of a company whose securities are publicly
traded on a national securities exchange or in a national market system.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Intellectual
Property &amp; Company Creations.</font></h2>

<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; <u>Ownership</u>.
All right, title and interest in and to any and all ideas, inventions, designs,
technologies, formulas, methods, processes, development techniques,
discoveries, computer programs or instructions (whether in source code, object
code, or any other form), computer hardware, algorithms, plans, customer lists,
memoranda, tests, research, designs, specifications, models, data, diagrams,
flow charts, techniques (whether reduced to written form or otherwise),
patents, patent applications, formats, test results, marketing and business
ideas, trademarks, trade secrets, service marks, trade dress, logos, trade
names, fictitious names, brand names, corporate names, original works of
authorship, copyrights, copyrightable works, mask works, computer software, all
other similar intangible personal property, and all improvements, derivative
works, know-how, data, rights and claims related to the foregoing that have been
or are conceived, developed or created in whole or in part by the Employee (a)
at any time and at any place that relates directly or indirectly to the
Business of the Company, as then operated, operated in the past or under
consideration or development or (b) as a result of tasks assigned to Employee
by the Company (collectively, &#147;Company Creations&#148;), shall be and become and
remain the sole and exclusive property of the Company and shall be considered
&#147;works made for hire&#148; as that term is defined pursuant to applicable statutes
and law.</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; <u>Assignment</u>.
To the extent that any of the Company Creations may not by law be considered a
work made for hire, or to the extent that, notwithstanding the foregoing,
Employee retains any interest in or to the Company Creations, Employee hereby
irrevocably assigns and transfers to the Company any and all right, title, or
interest that Employee has or may have, either now or in the future, in and to
the Company Creations, and any derivatives thereof, without the necessity of
further consideration. Employee shall promptly and fully disclose all Company
Creations to the Company and shall have no claim for additional compensation
for Company Creations. The Company shall be entitled to obtain and hold in its
own name all copyrights, patents, trade secrets, trademarks, and service marks
with respect to such Company Creations.</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; <u>Disclosure &amp;
Cooperation</u>. Employee shall keep and maintain adequate and current written
records of all Company Creations and their development by Employee (solely or
jointly with others), which records shall be available at all times to and
remain the sole property of the Company. Employee shall communicate promptly
and disclose to the Company, in such form as the Company may reasonably
request, all information, details and data pertaining to any Company Creations.
Employee further agrees to execute and deliver to the Company or its
designee(s) any and all formal transfers and assignments and other documents
and to provide any further cooperation or assistance reasonably required by the
Company to perfect, maintain or otherwise protect its rights in the Company
Creations. Employee hereby designates and appoints the Company or its designee
as Employee&#146;s agent and attorney-in-fact to execute on Employee&#146;s </font></h3>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<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;">behalf any
assignments or other documents deemed necessary by the Company to perfect,
maintain or otherwise protect the Company&#146;s rights in any Company Creations.</font></h3>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Acknowledgments</u>.
Employee acknowledges that the Covenants are reasonable and necessary to
protect the Company&#146;s legitimate Business interests, its relationships with its
customers, its trade secrets and other confidential or proprietary information.
Employee further acknowledges that the duration and scope of the Covenants are
reasonable given the nature of this Agreement and the position Employee holds
or will hold within the Company. Employee further acknowledges that the
Covenants are included herein to induce the Company to enter into this
Agreement and that the Company would not have entered into this Agreement or
otherwise employed or continued to employ the Employee in the absence of the
Covenants. Finally, Employee also acknowledges that any breach, willful or
otherwise, of the Covenants will cause continuing and irreparable injury to the
Company for which monetary damages, alone, will not be an adequate remedy.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Enforcement.</font></h2>

<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; If any court
determines that the Covenants, or any part thereof, is unenforceable because of
the duration or scope of such provision, that court will have the power to
modify such provision and, in its modified form, such provision will then be
enforceable.</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; The parties
acknowledge that significant damages will be caused by a breach of any of the
Covenants, but that such damages will be difficult to quantify. Therefore, the
parties agree that if Employee breaches any of the Covenants, liquidated
damages will be paid by Employee in the following manner:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any Company stock
options, stock appreciation rights, restricted stock units or similar equity
incentives then held by Employee, whether or not then vested, will be
immediately and automatically forfeited;</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any shares of
restricted stock issued by the Company, then held by Employee or her permitted
transferee and then subject to forfeiture will be immediately and automatically
forfeited; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any obligation of
the Company to provide severance pay or benefits (whether pursuant to <u>Section
5</u> or otherwise) will cease.</font></h4>

<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; In addition to the
remedies specified in <u>Section 4(f)(2)</u> and any other relief awarded by any
court, if Employee breaches any of the Covenants:</font></h3>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employee will be
required to account for and pay over to the Company all compensation, profits,
monies, accruals, increments or other benefits derived or received by Employee
as a result of any such breach; and</font></h4>

<h4 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the Company will be
entitled to injunctive or other equitable relief to prevent further breaches of
the Covenants by Employee.</font></h4>

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</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;">(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If Employee breaches
<u>Section 4</u>, then the duration of the restriction therein contained will
be extended for a period equal to the period that Employee was in breach of
such restriction.</font></h3>

<h1 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><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>Termination</u>.
Employee&#146;s employment by the Company may be terminated at any time. Upon
termination, Employee will be entitled to the payment of accrued and unpaid
salary through the date of such termination. All salary, commissions and
benefits will cease at the time of such termination, subject to the terms of
any benefit plans then in force or enforceable under applicable law and
applicable to Employee, and the Company will have no further liability or
obligation hereunder by reason of such termination; </font><i>provided, however</i>, that subject to <u>Section 4(f)(2)(iii)</u>,
if Employee&#146;s employment is terminated by the Company without Cause, Employee
will be entitled to (a) continued payment of her base salary (at the rate in
effect upon termination) for a period of 12 months; (b) a payment equal to the
average of the last three bonuses from the MedQuist Management Bonus Plan
received by Employee. In the event that there are not three full years of
employment, then the average of the last two years will apply. If less than two
years, the target bonus will be paid; and notwithstanding the foregoing, no
amount will be paid or benefit provided under this <u>Section 5</u> unless and
until (x) Employee executes and delivers a general release of claims against
the Company and its subsidiaries in a form prescribed by the Company, and (y)
such release becomes irrevocable. Any severance pay or benefits provided under
this <u>Section 5</u> will be in lieu of, not in addition to, any other
severance arrangement maintained by the Company.</h1>

<h1 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;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Miscellaneous.</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other Agreements</u>.
Employee represents and warrants to the Company that there are no restrictions,
agreements or understandings whatsoever to which she is a party that would
prevent or make unlawful her execution of this Agreement, that would be
inconsistent or in conflict with this Agreement or Employee&#146;s obligations
hereunder, or that would otherwise prevent, limit or impair the performance by
Employee of her duties to the Company.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire
Agreement; Amendment</u>. This Agreement contains the entire agreement and
understanding of the parties hereto relating to the subject matter hereof, and
merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the employment of Employee by the
Company. This Agreement may not be changed or modified, except by an agreement
in writing signed by each of the parties hereto.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver</u>. Any
waiver of any term or condition hereof will not operate as a waiver of any
other term or condition of this Agreement. Any failure to enforce any provision
hereof will not operate as a waiver of such provision or of any other provision
of this Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>.
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></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>.
Whenever possible, each provision of this Agreement will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any </font></h2>

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<h2 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;">applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability
will not affect any other provision or the effectiveness or validity of any
provision in any other jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been herein contained.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Wage Claims</u>.
The parties intend that all obligations to pay compensation to Employee be
obligations solely of the Company. Therefore, intending to be bound by this
provision, Employee hereby waives any right to claim payment of amounts owed to
her, now or in the future, from directors or officers of the Company in the
event of the Company&#146;s insolvency.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors and
Assigns</u>. This Agreement is binding on the Company&#146;s successors and assigns.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Section Headings</u>.
The section headings in this Agreement are for convenience only; they form no
part of this Agreement and will not affect its interpretation.</font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.
This Agreement may be executed in multiple counterparts, each of which will be
deemed to be an original and all of which together will constitute but one and
the same instrument.</font></h2>

<h1 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;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Definitions</u>.
Capitalized terms used herein will have the meanings below defined:</font></h1>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Business</u>&#148;
means electronic transcription services and other health information management
solutions services businesses in which the Company or its subsidiaries are
engaged anywhere within the United States.</font></h2>

<h2 style="font-family:Times New Roman;font-size:10.0pt;font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Cause</u>&#148;
means the occurrence of any of the following: (1) Employee&#146;s refusal, willful
failure or inability to perform (other than due to illness or disability) her
employment duties or to follow the lawful directives of her superiors; (2)
misconduct or gross negligence by Employee in the course of employment; (3)
conduct of Employee involving any type of disloyalty to the Company or its subsidiaries,
including, without limitation: fraud, embezzlement, theft or dishonesty in the
course of employment; (4) a conviction of or the entry of a plea of guilty or</font><i> nolo contendere</i> 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.</h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;<u>Covenants</u>&#148;
means the covenants set forth in <u>Section 4</u> of this Agreement.&#160; </font></h2>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><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
five (5) days of the date of this Agreement and return a signed copy to my
attention. If the Agreement is not signed and returned within five (5) days,
the terms and conditions of this Agreement will be deemed withdrawn.</font></h2>

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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Sincerely,</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist, Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="7%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:7.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>

 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="16%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.92%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Frank W. Lavelle</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Frank W. Lavelle</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accepted and
  Agreed:</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="12%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:12.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Linda Reino</font></p>
  </td>
  <td width="37%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:37.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Linda Reino</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.68%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="96" style="border:none;"></td>
  <td width="278" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
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  <td width="3" style="border:none;"></td>
  <td width="99" style="border:none;"></td>
  <td width="221" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>


<p style="margin:0in 0in 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MedQuist Investor Relations</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PRESS
RELEASES</font></b></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist (ticker.&#160;
MEDQ, exchange: Other OTC) News Release &#151; May&nbsp;14, 2007</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist Announces that President, COO Will Be Leaving
the Company</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Howard Hoffmann, CEO, will assume President&#146;s
Responsibilities.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with Other Senior Executives Sharing the COO&#146;S Duties</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MT. LAUREL, N.J.&#151;(BUSINESS WIRE)-.May 14,
2007&#151;MedQuist today announced that Frank Lavelle, its current President. and
Linda Reino, the company&#146;s Chief Operating Officer, will be resigning to pursue
other opportunities.&#160; Howard Hoffmann,
who has served as CEO for nearly three years. will take over the
responsibilities of President.&#160; Mark Ivi</font>e, the company&#146;s Chief Technology Officer, and
Michael Clark.&#160; Senior Vice
President of Operations, will together assume the former Chief Operating
Officer&#146;s responsibilities, which in large measure they had shared prior to the
establishment of the COO position.</p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist CEO Hoffmann stated that, &#147;Frank has served
as President of the company for more than two years. during a period of
extraordinary change within the company and our Industry as a whole.&#160; We&#146;ve responded well to these changes. and
Frank has certainly played an important role in that.&#160; We appreciate all he has done.&#148; In speaking
of Ms. Reino, Hoffmann said, &#147;Linda has also been here during a number of key
recent changes in operations.&#160; We
appreciate her contributions on that front and wish her well.&#148;</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consistent with its ongoing efforts to streamline and
enhance operational performance, the company has no current plans to fill,
either position.</font></p>

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

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist, a member of the Phillips Group of Companies,
is a leading provider of electronic medical transcription, health information
and document management products and services.&#160;
MedQuist provides document workflow management, digital dictation.
speech recognition, mobile dictation devices, Web-based transcription,
electronic signature, medical coding products and outsourcing services.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure Regarding Forward-Looking Statements:</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Some of the statements In this Press Release
constitute &#147;forward-looking statements within the meaning of the US. Private
Securities Litigation Reform Act of 1995.&#160;
These statements are not historical facts but rather are based on the
Company&#146;s current expectations, estimates and projections regarding the Company&#146;s
business, operations and other factors relating thereto.&#160; Words such as &#147;may,&#148; &#147;will,&#148; &#147;could,&#148; &#147;would,&#148;
&#147;should,&#148; &#147;anticipate,&#148; &#147;predict,&#148; &#147;potential,&#148; &#147;continue,&#148; &#147;expects,&#148; &#147;intends,&#148;
&#147;plans,&#148; &#147;projects,&#148; &#147;believes,&#148; &#147;estimates&#148; and similar expressions are used
to identify these forward-looking statements.&#160;
The forward-looking statements contained in this Press Release include,
without limitation, statements about the Company&#146;s results of operations,
financial condition, ongoing legal proceedings and government investigations,
and accommodation programs.&#160; These
Statements are only predictions and as such </font></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.&#160; Forward-looking statements are based upon
assumptions as to future events that may not prove to be accurate.&#160; Actual outcomes and results may differ
materially from what is expressed or forecast in these forward-looking
statements.&#160; As a result, these
statements speak only as of the date they were made, and the Company undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new Information, future events or otherwise.&#160; Actual outcomes and results may differ from
the forward-looking statements for many reasons, including any direct or
indirect Impact of the matters disclosed in the Form 8-K filed by the Company
on May 11.2007 on the Company&#146;s operating results or financial condition; any
continuation of pricing pressures and declining billing rates; difficulties
relating to the Implementation of management changes throughout the Company and
the outcome of pending and future legal and regulatory proceedings and
investigations, including costs and expenses related thereto.</font></p>

<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Web site: http://www.medquist.com</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><!-- SET mrlNoTableShading -->CONTACT:</p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Craig Martin</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Feinstein Kean
  Healthcare</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Phone:
  617.761.6729</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Email:
  craig.martin@fkhealth.com</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="27%" valign="top" style="padding:0in .7pt 0in 0in;width:27.78%;">
  <p style="margin:0in 0in .0001pt 50.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SOURCE:</font></p>
  </td>
  <td width="72%" valign="top" style="padding:0in .7pt 0in 0in;width:72.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MedQuist Inc.</font></p>
  </td>
 </tr>
</table>

<p align="right" style="margin:0in 0in 12.0pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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