Document:

Exhibit 10.6

MEDQUIST
INC.

1996 EMPLOYEE STOCK PURCHASE PLAN

1.             PURPOSE.

This 1996 Employee Stock Purchase Plan (the “Plan”) is
intended to encourage and facilitate the purchase of the Common Stock of
MedQuist Inc. (the “Company”), by employees of the Company, thereby providing
employees with a personal stake in the Company and a long range inducement to
remain in the employ of the Company. It is the intention of the Company to have
the Plan qualify as an “employee stock purchase plan” within the meaning of
Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).

2.             DEFINITIONS.

2.1.          Board.  The “Board” is the Board of Directors of the
Company.

2.2.          Common
Stock.  The “Common Stock” is MedQuist
Inc. Common Stock, no par value.

2.3.          Eligible
Compensation.  The “Eligible Compensation”
of each Participant is his or her regular rate of base compensation for a Grant
Period determined as of the first day of the Grant Period on which the
Participant is an Eligible Employee. “Eligible Compensation” does not include
management incentives, variable commissions, bonuses, overtime, shift
differentials, COLA adjustments, extended work-week premiums, amounts paid or
accrued with respect to any qualified or nonqualified plan of deferred
compensation or other employee welfare plan, payments for group insurance,
hospitalization and similar benefits, perquisites reported as income,
reimbursement for expenses and other forms of extraordinary pay. An employee’s
base pay shall be calculated by multiplying the employee’s normal rate of pay
as of the first day of the Grant Period on which the employee is an Eligible
Employee by the number of pay periods between said first day and the end of the
Grant Period.

2.4.          Eligible
Employee.  An “Eligible Employee” is an
employee of the Company or of a Designated Subsidiary; provided, however, that
the term “Eligible Employee” shall not include:

2.4.1.       Employees
who are scheduled to work less than twenty (20) hours per week or less than
five (5) months during the Grant Period; or

2.4.2.       Any
employee who, immediately after the close of a Grant Period, owns five percent
(5%) or more of the total combined voting power or value of all classes of
stock of the Company or its subsidiaries as determined pursuant to Section
424(e) and (f) of the Code. For purposes of this Subsection 2.4.2 the
attribution rules of Section 424(d) of the Code shall apply in determining the
stock ownership of an employee, and stock which the employee may purchase under
outstanding options, whether or not granted under this Plan, shall be treated
as stock owned by the employee.

 

2.5.          Exercise
Dates. The “Exercise Dates” are June 30 and December 31 of each year.

2.6.          Fair
Market Value. The “Fair Market Value” per share on any date shall be the last
reported sale price of a Share of Common Stock on such date on the NASDAQ
National Market or other over-the-counter market, the American Stock Exchange,
or any other exchange on which the Common Stock is listed, or if no sale took
place on such day, the last date on which a sale took place or, if none of the
foregoing applies, a price determined by the Board of Directors.

2.7.          Grant
Period. “Grant Periods” shall begin each January 1 and July 1, and shall end on
the next June 30 and December 31, respectively.

2.8.          Participant.
A “Participant” is an Eligible Employee of the Company who elects to
participate in the Plan by filing an enrollment form with the Company as
provided in Section 6.

2.9.          Purchase
Price. The “Purchase Price” of a share of Common Stock shall be determined on
the first and last days of each Grant Period, and shall be such amount as the
Committee may determine from time to time, but in no event less than 85% of
Fair Market Value on such date. Effective on the date of adoption of this Plan,
and until such time that the Committee provides otherwise, the Purchase Price
as of any date shall be 90% of Fair Market Value.

3.             ADMINISTRATION.

3.1.          The
Plan shall be administered by a committee (the “Committee”) selected by the
Board. The Committee shall consist of not less than three (3) members who are
members of the Board of Directors. An individual will not be eligible to serve
on the Committee if the individual is a Participant. Each member of the
Committee shall serve for a term commencing on a date specified by the Board
and continuing until such member dies, resigns, becomes a Participant or is
removed from office by the Board.

3.2.          From
time to time the Committee may adopt such rules and regulations for carrying
out the Plan as it may deem proper and in the best interest of the Company. All
determinations of the Committee shall be made by a majority of its members. The
interpretation of any provision of the Plan by the Committee shall be final and
the Board shall adopt and place into effect the determinations of the
Committee.

4.             STOCK SUBJECT TO THE PLAN.

The stock subject to options under the Plan shall be
authorized but unissued shares of the Company’s Common Stock. The aggregate
amount of stock for which options may be granted under the Plan shall be 250,000
shares, subject to adjustment in accordance with Section 12. In the event that
an option granted under the Plan to any Participant is unexercised at the end
of a Grant Period as to any shares covered thereby, such shares thereafter
shall be available for the granting of options under the Plan.

 2
 

 

5.             GRANT OF OPTION.

Options will be granted on the first and last day of
each Grant Period. All Participants granted options under the Plan shall have
the same rights and privileges. On each such date, each Participant who is an
Eligible Employee on the first day of the Grant Period shall be granted an
option by the Board to purchase whole shares of Common Stock. The maximum
number of shares of Common Stock for which each Participant shall be granted an
option on each date shall equal ten percent (10%) of the Participant’s Eligible
Compensation divided by the Purchase Price on such date. The number of shares
elected to be purchased shall be determined by the amount of compensation
designated by the Participant to be applied to such purchase. In the event that
the maximum number of shares to be granted to all Participants on any date
(determined according to the formula above) exceeds the total number of shares
available for sale under the Plan pursuant to Section 4, the Committee shall
make a pro rata allocation of the available shares among all Participants on
such date based upon a uniform relationship to the Eligible Compensation of all
Participants in effect on the date. The Committee may on the first day of each
Grant Period decrease the percentage of Eligible Compensation set forth above
to calculate the number of shares of Common Stock for which an Eligible
Employee shall be granted options to a minimum of five percent (5%) or increase
it to a maximum of twenty percent (20%). Notwithstanding the foregoing, in the
event options are granted prior to the approval of this Plan by stockholders
owning a majority of the common stock of the Company, such grant is expressly
conditioned on subsequent approval of the Plan by the stockholders.
Furthermore, both the grant and the exercise of any options under this Plan are
expressly conditioned on the effective and continuing registration of this Plan
under the Securities Act of 1933 or an available exemption from registration and
effective registration or available exemption from registration under
applicable state securities laws.

6.             ENROLLMENT, PAYROLL DEDUCTIONS AND CASH PAYMENTS.

6.1.          An
employee who is not a Participant and who will be an Eligible Employee on the
first day of a Grant Period may become a Participant pursuant to such procedure
as the Company shall prescribe.

6.2.          Completion
of an enrollment form in such a manner as the Company prescribes will allow an
Eligible Employee to become a Participant by authorizing a regular payroll
deduction from the Participant’s Eligible Compensation on each pay day during
the Grant Period at a rate which will result in not less than a five dollar
($5.00) deduction per pay day and which will not exceed the percentage of the
Participant’s Eligible Compensation designated by the Committee under Section 5
with respect to which an option to purchase shares has been granted.

6.3.          A
participant’s payroll deductions shall be retained in the Company’s general
corporate account and shall be credited to the Participant’s stock purchase
account under the Plan. No interest shall accrue on the amount credited to a Participant’s
stock purchase account. Except as provided in Section 6.2, a Participant may
not make any separate cash payment into his or her account. A Participant may
change the amount of the payroll deduction and thereby elect to increase or
decrease the number of shares of Common Stock the Participant has an option to
purchase during the Grant Period.

 3
 

 

6.4.          Payroll
deductions for a Participant for each Grant Period shall commence on the first
pay day following the first day of the Grant Period on which the Participant is
an Eligible Employee and shall end on the last pay day prior to the end of the
Grant Period, unless sooner terminated by the Participant as provided in
Section 8.

6.5.          Individual
stock purchase accounts will be maintained for each Participant in the Plan. A
statement shall be provided to each Participant, at such time and in such
manner as the Company shall prescribe, which sets forth the amount of the
Participant’s payroll deductions and any cash payments, the per share Purchase
Price, the number of shares purchased, and the amount of the remaining balance,
if any, credited to the Participant’s stock purchase account.

7.             EXERCISE OF OPTION.

7.1.          On
the Exercise Date in each Grant Period, each Participant shall be deemed to
have exercised an option to purchase such number of whole shares of Common
Stock as the credit to the Participant’s stock purchase account on the Exercise
Date will pay for at the lesser of the Purchase Price as determined as of the
first day of the Grant Period and the Purchase Price as determined as of the
last day of the Grant Period. No fractional shares of Common Stock shall be
purchased. During the Participant’s lifetime, the option to purchase shares of
Common Stock under the Plan is exercisable only by the Participant.

7.2.          Any
amount remaining credited to a Participant’s stock purchase account on an
Exercise Date, after the purchase of shares as provided above, shall continue
to be credited to a Participant’s stock purchase account and shall be available
to be applied to the purchase of Common Stock on the next Exercise Date.

7.3.          No
Participant may be granted an option under the Plan which would permit such
employee’s rights to purchase stock under all such employee stock purchase
plans of the Company or its Subsidiaries to accrue at
a rate which exceeds $25,000 in Fair Market Value of such stock (determined at
the time such option is granted) for each calendar year in which such option is
outstanding at any time.

7.4.          Shares of Common Stock purchased by a Participant under the
Plan will be issued only in the name of the Participant, or if the Participant
so indicates on his or her enrollment form or in writing, in the name of the Participant
and any other person as joint tenants with rights of survivorship.

7.5.          As
promptly as practicable after each Exercise Date of the Grant Period, the
Company shall cause the number of shares purchased by each Participant to be
registered on the stock transfer records of the Company in the name of the
Participant.

8.             WITHDRAWAL.

A Participant, at any time and for any reason, may
terminate participation in the Plan by delivering written notice of withdrawal
to the Participant’s appropriate payroll office. If a Participant withdraws
from the Plan, the Participant shall not be eligible to again participate in
the Plan for six (6) months thereafter, and the balance in the Participant’s
stock purchase account

 4
 

 

will be promptly refunded
after receipt by the Company of the Participant’s notice of withdrawal.

9.             TERMINATION OF EMPLOYMENT OR ELIGIBILITY.

9.1.          If
the employment of a Participant terminates, such Participant’s participation in
the Plan automatically and without any act on his or her part shall terminate
as of the date of the termination of his or her employment. The Company
promptly will pay to the Participant the amount credited to his or her stock
purchase account under the Plan (without interest), and thereupon the
Participant’s interest in the Plan and any options under the Plan shall
terminate.

9.2.          In
the event a Participant fails to meet the requirements of an Eligible Employee
under the Plan on the Exercise Date in the Grant Period, as set forth in Section
2.4, the Participant will be deemed to have withdrawn from the Plan and the
payroll deductions credited to such Participant’s account will be promptly
refunded to the Participant and no option to purchase shares of Common Stock
shall be granted to such Participant.

9.3.          A
Participant’s withdrawal from participation in the Plan during a Grant Period
shall preclude (i) such Participant’s eligibility to participate in the Plan,
and (ii) such Participant’s eligibility to participate in any similar plan which
has been or may be adopted by the Company, for a period of six (6) months
thereafter.

10.           TRANSFERABILITY.

Neither payroll deductions or cash payments credited to a Participant’s
stock purchase account nor any rights with regard to the exercise of an option
or to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way by the Participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect, except
that the Company may treat such act as an election
to withdraw funds in accordance with Section 8.

11.           RIGHTS OF A STOCKHOLDER.

Each Participant shall have the rights or privileges
of a stockholder of the Company with respect to shares purchased under the Plan
when the shares have been registered in the name of the Participant on the
stock transfer records of the Company.

12.           CAPITAL ADJUSTMENT AFFECTING COMMON
STOCK.

In the event of a capital adjustment resulting from a recapitalization,
stock dividend, stock split, reorganization, merger, consolidation or other
change in capitalization affecting the present Common Stock, the Board may, at
its option, terminate the Plan or make appropriate adjustments in the number of
shares which may be issued and sold under the Plan and may make such other
adjustments as it may deem equitable.

 5
 

 

13.           TERMINATION AND AMENDMENTS TO PLAN.

The Board, at any time, may terminate the Plan or from
time to time, may amend the Plan without the approval of the stockholders of
the Company subject to Section 21 hereof; provided, however, that no such
amendment shall be made without the stockholders’ approval which would (i)
cause the Plan to fail to meet the requirements of an “employee stock purchase
plan” as defined in Section 423 of the Code, or (ii) permit a Participant to be
a member of the Committee.

14.           TERMINATION OF THE PLAN.

Upon termination of the Plan, the amount credited to
the stock purchase accounts for all Participants shall be refunded promptly.
The Exercise Dates may be accelerated by the Company in the event of a
termination of the Plan.

15.           NON-GUARANTEE OF EMPLOYMENT.

Nothing in the Plan or in any option granted pursuant
to the Plan shall be construed as a contract of employment between the Company
and its employees, or as a contractual right to continue in the employ of the
Company, or as a limitation of the right of the Company to discharge its
employees at any time.

16.           EXCLUSION FROM RETIREMENT AND FRINGE
BENEFIT COMPUTATION.

No portion of the award of options under this Plan
shall be taken into account as “wages,” “salary” or “compensation” for any
purpose, whether in determining eligibility, benefits or otherwise, under (i)
any pension, retirement, profit sharing or other qualified or non-qualified
plan of deferred compensation, (ii) any employee welfare or fringe benefit plan
including, but not limited to, group insurance, hospitalization, medical, and
disability, or (iii) any form of extraordinary pay including but not limited to
bonuses, sick pay and vacation pay.

17.           LIABILITY LIMITED; INDEMNIFICATION.

17.1.       
To the maximum extent permitted by New Jersey law, neither the Company, Board
or Committee nor any of its members, shall be liable for any action or
determination made with respect to this Plan.

17.2.        In
addition to such other rights of indemnification that they may have, the
members of the Board and Committee shall be indemnified by the Company to the
maximum extent permitted by New Jersey law against any and all liabilities and
expenses incurred in connection with their service in such capacity.

18.           GOVERNMENTAL REGULATIONS.

The Company’s obligation to sell and deliver the
Common Stock under the plan is subject to the approval of any governmental
authority required in connection with the authorization, issuance or sale of
such stock.

 6
 

 

19.           STOCKHOLDER APPROVAL.

The Plan shall be subject to the approval of the
stockholders owning a majority of the outstanding shares of the Common Stock,
which approval must occur within the period beginning twelve (12) months before
and ending twelve (12) months after the date the Plan is adopted by the Board.

20.           OTHER TERMS AND CONDITIONS.

The Committee may impose such other terms and
conditions not inconsistent with the terms of the Plan, as it deems advisable,
including, without limitation, restrictions and requirements relating to (i)
the registration, listing or qualification of the Common Stock, (ii) the grant
or exercise of options, or (iii) the shares of Common Stock acquired under the Plan.
The Committee may require that a Participant notify the Company of any disposition
of shares of Common Stock purchased under the Plan within a period of two (2)
years subsequent to the Grant Date of the options exercised to purchase those
shares.

21.           SECTION 16 COMPLIANCE.

Any person who is an officer or director of the
Company for purposes of Section 16 of the Securities Exchange Act of 1934, as
amended, is required to comply with the requirements of Rule 16b-3 of such act,
as it may be amended from time to time.

22.           MISCELLANEOUS.

22.1.       
The headings in this Plan are for reference purposes only and shall not affect
the meaning or interpretation of the Plan.

22.2.        Any
provision in this Plan which adversely affects the validity or qualification of
this Plan under Section 423 of the Code shall be deemed null and void without
affecting the remaining provisions of this Plan.

22.3.        This
Plan shall be governed by, and construed in accordance with, the laws of New
Jersey, without regard to principles of conflict of laws.

22.4.        All
notices and other communications made or given pursuant to this Plan shall be
in writing and shall be sufficiently made or given if delivered or mailed,
addressed to the employee at the address contained in the records of the
Company or to the Company at the Company’s principal office.

	
  [Corporate Seal]

  	
  MedQuist Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
					

 

 7Exhibit 10.7

MEDQUIST
INC.

EXECUTIVE
DEFERRED COMPENSATION PLAN

Originally Effective January 1, 2001

Amended and Restated
Effective November 15, 2001

ARTICLE 1

PURPOSE

In recognition of the services provided by certain key
employees, the Board of Directors of MedQuist Inc. hereby adopts the MedQuist
Inc. Executive Deferred Compensation Plan to make additional retirement
benefits and increased financial security available on a tax-favored basis to
those individuals.

ARTICLE 2

DEFINITIONS

“Affiliate” means (a) any firm, partnership, or
corporation that directly or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with MedQuist Inc. and
(b) any other organization similarly related to MedQuist Inc. that is
designated as such by the Board.

“Beneficiary” means the person or persons
designated as such in accordance with Section 12.3.

“Board” means the Board of Directors of
MedQuist Inc.

“Code” means the Internal Revenue Code of 1986,
as amended.

“Committee” means the MedQuist Inc.
Compensation Committee.

“Company” means MedQuist Inc. and each such
subsidiary, division or Affiliate identified in Appendix A as may from time to
time participate in the Plan by or pursuant to authorization of the Board and
the board of directors of such subsidiary, division or Affiliate.

“Compensation” means, for any Eligible
Employee, for any Plan Year, the Participant’s total taxable income received
from the Company with respect to such Plan Year, including, but not limited to,
base earnings, regular bonuses, commissions and overtime, plus pre-tax
contributions and elective contributions that are not includible in gross
income under section 125, 402(a)(8) or 402(h) of the Code, and excluding income
recognized in connection with stock-related options and payments,
reimbursements and other expense allowances, fringe benefits (cash and
noncash), moving expenses, deferred compensation and welfare benefits, as
determined pursuant to guidelines established and revised by the Plan
Administrator from time to time and communicated to Eligible Employees.

“Tier 1 Compensation” means the amount of a
Participant’s Compensation to the Social Security Wage Base for the Plan Year
of determination.

“Tier 2 Compensation” means the amount of the
Participant’s Compensation in excess of the Social Security Wage Base and up to
Tier 3 Compensation.

 

 

“Tier 3 Compensation” means the excess of the
Participant’s Compensation over the compensation limit of section 401(a)(17) of
the Code, as in effect from time to time.

“Compensation Deferral” means that portion of
Compensation as to which a Participant has made an annual election to defer
receipt until the date specified under the In-Service Distribution Option or
the Retirement Distribution Option.

“Disability” means a disability of an Employee
which renders such Employee unable to perform the full extent of his duties and
responsibilities by reason of his illness or incapacity which would entitle
that Employee to receive Social Security Disability Income under the Social
Security Act, as amended, and the regulations promulgated thereunder.  “Disabled” means having a
Disability.  The determination of whether
a Participant is Disabled shall be made by the Plan Administrator, whose
determination shall be conclusive; provided  that,

(a)           if
a Participant is bound by the terms of an employment agreement between the
Participant and the Employer, whether the Participant is “Disabled” for
purposes of the Plan shall be determined in accordance with the procedures set
forth in said employment agreement, if such procedures are therein provided;
and

(b)           a
Participant bound by such an employment agreement shall not be determined to be
Disabled under the Plan any earlier than he would be determined to be disabled
under his employment agreement.

“Distribution Option” means the two
distribution options which are available under the Plan, consisting of the
Retirement Distribution Option and the In-Service Distribution Option.

“Distribution Option Account(s)” means, with
respect to a Participant, the Retirement Distribution Account and/or the
In-Service Distribution Account established on the books of account of the
Company, pursuant to Section 5.1, for each Distribution Option Period.

“Distribution Option Period” means, in general,
a period for which an Eligible Employee elects, in the Enrollment Agreement,
the time and manner of payment of amounts credited to the Eligible Employee’s
In-Service Distribution Option Account for such period.  The first Distribution Option Period shall
apply with respect to deferrals of Compensation credited from January 1, 2001
to December 31, 2005.  Thereafter, a new
Distribution Option Period will begin every five years.

“Earnings Crediting Options” means the deemed
investment options selected by the Participant from time to time pursuant to
which deemed earnings are credited to the Participant’s Distribution Option
Accounts.

“Eligible Employee” means an Employee who is a
member of a group of selected management and/or highly compensated Employees of
the Company and who is designated by the Plan Administrator as eligible to
participate in the Plan.

 2
 

 

 

“Employee” means any individual employed by the
Company on a regular, full-time basis (in accordance with the personnel
policies and practices of the Company), including citizens of the United States
employed outside of their home country and resident aliens employed in the
United States; provided, however, that to qualify as an “Employee” for purposes
of the Plan, the individual must be a member of a group of “key management or
other highly compensated employees” within the meaning of Sections 201, 301 and
401 of the Employee Retirement Income Security Act of 1974, as amended;
provided further, that individuals who are not on an employee payroll of the
Company or who have entered into an agreement with the Company which excludes
them from participation in the Plan shall not be eligible to participate in the
Plan.

“Employer” means MedQuist Inc. and its
Affiliates.

“Enrollment Agreement” means the authorization
form which an Eligible Employee files with the Plan Administrator to
participate in the Plan.

“In-Service Distribution Account” means the
Account maintained for a Participant for each Distribution Option Period to
which Compensation Deferrals are credited pursuant to the In-Service
Distribution Option.

“In-Service Distribution Option” means the
Distribution Option pursuant to which benefits are payable in accordance with
Section 7.2.

“Matching Contributions” are contributions
credited to the Participant’s Retirement Distribution Account by the Company
pursuant to Section 4.3.

“Participant” means an Eligible Employee who
has filed a completed and executed Enrollment Agreement with the Plan
Administrator or its designee and is participating in the Plan in accordance
with the provisions of Article 4.  In the
event of the death or incompetency of a Participant, the term shall mean his
personal representative or guardian.  An
individual shall remain a Participant until that individual has received full
distribution of any amount credited to the Participant’s Distribution Option 

Account(s).

“Plan” means the MedQuist Inc. Executive
Deferred Compensation Plan, as amended from time to time.

“Plan
Administrator” means the Committee.

“Plan Year” means the 12-month period beginning
on each January 1 and ending on the following December 31.

“Retirement” means the termination of the
Participant’s Service with the Employer (for reasons other than death) at or
after age 55.

“Retirement Distribution Account” means the
Account maintained for a Participant to which Compensation Deferrals and
Matching Contributions are credited pursuant to the Retirement Distribution
Option.

 3
 

 

 

“Retirement Distribution Option” means the
Distribution Option pursuant to which benefits are payable in accordance with
Section 7.1.

“Service” means the period of time during which
an employment relationship exists between an Employee and the Company,
including any period during which the Employee is on an approved leave of
absence, whether paid or unpaid.  “Service”
also includes employment with an Affiliate if an Employee transfers directly
between the Company and the Affiliate.

“Termination Date” means the date of
termination of a Participant’s Service with the Employer, determined without
reference to any compensation continuing arrangement or severance benefit
arrangement that may be applicable.

ARTICLE 3

ADMINISTRATION OF THE PLAN AND DISCRETION

3.1.          The Committee, as
Plan Administrator, shall have full power and authority to interpret the Plan,
to prescribe, amend and rescind any rules, forms and procedures as it deems
necessary or appropriate for the proper administration of the Plan and to make
any other determinations and to take any other such actions as it deems
necessary or advisable in carrying out its duties under the Plan.  All action taken by the Plan Administrator
arising out of, or in connection with, the administration of the Plan or any
rules adopted thereunder, shall, in each case, lie within its sole discretion,
and shall be final, conclusive and binding upon the Company, the Board, all
Employees, all Beneficiaries of Employees and all persons and entities having
an interest therein.  The Committee, may,
however, delegate to any person or entity any of its powers or duties under the
Plan.  To the extent of any such
delegation, the delegate shall become the Plan Administrator responsible for
administration of the Plan, and references to the Plan Administrator shall
apply instead to the delegate.  Any
action by the Committee assigning any of its responsibilities to specific
persons who are all trustees, officers, or employees of the Company shall not
constitute delegation of the Committee’s responsibility but rather shall be
treated as the manner in which the Committee has determined internally to
discharge such responsibility.

3.2.          The Plan
Administrator shall serve without compensation for its services unless
otherwise determined by the Board.  All
expenses of administering the Plan shall be paid by the Company.

3.3.          The Company shall
indemnify and hold harmless the Plan Administrator from any and all claims,
losses, damages, expenses (including counsel fees) and liability (including any
amounts paid in settlement of any claim or any other matter with the consent of
the Board) arising from any act or omission of such member, except when the
same is due to gross negligence or willful misconduct.

3.4.          Any decisions,
actions or interpretations to be made under the Plan by the Company, the Board
or the Plan Administrator shall be made in its respective sole discretion, not

 4
 

 

 

as a fiduciary
and need not be uniformly applied to similarly situated individuals and shall
be final, binding and conclusive on all persons interested in the Plan.

ARTICLE 4

PARTICIPATION

4.1.          Election to
Participate.

(a)           Timing of
Election to Participate.  Any
Eligible Employee may enroll in the Plan effective as of the first day of a
Plan Year by filing a completed and fully executed Enrollment Agreement with
the Plan Administrator by a date set by the Plan Administrator.

(i)            Base
Salary.  With respect to the deferral
of Compensation that is classified as base salary by the Company, an executed
Enrollment Agreement must be filed by December 31 of the Plan Year preceding
the Plan Year in which such base salary is to be earned, or such earlier time
as may be established by the Plan Administrator.

(ii)           Bonus
— General.  With respect to the
deferral of Compensation that is classified by the Company as bonus, an
executed Enrollment Agreement must be filed by June 30 of the Plan Year in
which such bonus is earned, or such earlier time as may be established by the
Plan Administrator.

(iii)          Bonus
— 2001 Plan Year.  For the Plan Year
commencing on January 1, 2001, an executed Enrollment Agreement must be
submitted by December 31, 2000 and shall be effective for bonuses earned in
2000 and payable in January 2001.

(iv)          Bonus
— 2002 Plan Year.  For the Plan Year
commencing on January 1, 2002, an executed Enrollment Agreement must be
submitted by November 30, 2001 and shall be effective for bonuses earned in
2001 and payable in January 2002.

(v)           Revocation
of Election.  Once each Plan Year, a
Participant may cancel his deferral election with respect to Compensation that
is classified by the Company as base salary, provided that such cancellation is
communicated to the Company in writing and shall be effective for all base
salary earned for the remainder of the Plan Year.  Elections with respect to bonuses are
irrevocable.

(b)           Amount of
Deferral.

(i)            Maximum
Deferral.  Pursuant to said
Enrollment Agreement, the Eligible Employee shall irrevocably elect the
percentages by which (as a result of payroll deduction) an amount equal to any
whole percentage of the Participant’s Compensation, up to 15 percent of base
salary (or such other maximum percentage as may be approved by the Plan
Administrator and communicated to Participants) and 90 percent of bonus (or
such other maximum percentage as may be approved by the Plan Administrator and

 5
 

 

 

communicated to Participants) will be deferred; provided however, that
deferrals will  be made after required
non-deferrable payroll tax deductions and any deductions elected by the
Participant (including, but not limited to, deductions for payment of health
insurance premiums).

(ii)           Minimum
Deferral.  The Plan Administrator may
establish minimum amounts that may be deferred under this Section 4.1 and may
change such standards from time to time. 
Any such limit shall be communicated by the Plan Administrator to the
Participants prior to the commencement of a Plan Year.

(iii)          Deferrals
by Compensation Tier.  Participants
may elect to defer separate percentages of Compensation, based on whether the
Compensation is Tier 1 Compensation, Tier 2 Compensation, or Tier 3
Compensation.

(c)           Accounts to Which
Amounts Credited.  Pursuant to said
Enrollment Agreement, the Eligible Employee shall elect the Distribution Option
Accounts to which such amounts will be credited, and shall provide such other
information as the Plan Administrator shall require.

(d)           Form of
Distribution from Accounts.  The
first Enrollment Agreement filed by an Eligible Employee during any
Distribution Option Period must also set forth the Participant’s election as to
the time and manner of distribution from the Retirement Distribution Account
and the In-Service Distribution Account and of amounts credited for that
Distribution Option Period and related earnings.

4.2.          New Eligible
Employees.  The Plan Administrator may,
in its discretion, permit Employees who first become Eligible Employees after
the beginning of a Plan Year to enroll in the Plan for that Plan Year by filing
a completed and fully executed Enrollment Agreement, in accordance with Section
4.1, as soon as practicable following the date the Employee becomes an Eligible
Employee but, in any event, not later than 30 days after such date.  Notwithstanding the foregoing, however, any
election by an Eligible Employee to defer compensation pursuant to this Section
4.2 shall apply only to such amounts as are earned by the Eligible Employee
after the date on which such Enrollment Agreement is filed.

4.3.          Matching
Contributions.  If the Administrator
so elects, Matching Contributions may be credited to a Participant’s Retirement
Distribution Account in amount equal to a specified percentage of Compensation
that is deferred pursuant to the Plan; provided that Matching Contributions
shall only be credited with respect to Compensation that is classified by the
Company as base salary.  The availability
of Matching Contributions in any Plan Year shall be communicated to
Participants in advance of the Plan Year.

ARTICLE 5

DISTRIBUTION OPTION ACCOUNTS

5.1.          Distribution
Option Accounts.  The Plan
Administrator shall establish and maintain separate Distribution Option
Accounts with respect to a Participant for each Distribution Option
Period.  A Participant’s Distribution
Option Accounts shall consist of the

 6
 

 

 

Retirement
Distribution Account and/or one or more In-Service Distribution Accounts.  The amount of Compensation deferred pursuant
to Section 4.1 or Section 4.2 shall be credited by the Company to the
Participant’s Distribution Option Accounts, in accordance with the Distribution
Option irrevocably elected by the Participant in the Enrollment Agreement, as
soon as reasonably practicable following the close of the payroll period or
bonus payment date for which the deferred Compensation would otherwise be
payable, as determined by the Plan Administrator in its sole discretion.  Any amount once taken into account as
Compensation for purposes of this Plan shall not be taken into account
thereafter.  Matching Contributions, when
credited, as determined by the Plan Administrator in its sole discretion, are
credited only to the Retirement Distribution Account.  The Participant’s Distribution Option
Accounts shall be reduced by the amount of payments made by the Company to the
Participant or the Participant’s Beneficiary pursuant to this Plan.

5.2.          Earnings on
Distribution Option Accounts.

(a)           General.  A Participant’s Distribution Option Accounts
shall be credited with earnings in accordance with the Earnings Crediting
Options elected by the Participant from time to time.  Participants may allocate their Retirement
Distribution Account and/or each of their In-Service Distribution Accounts
among the Earnings Crediting Options available under the Plan only in whole
percentages of not less than five percent.

(b)           Investment
Options.  The deemed rate of return,
positive or negative, credited under each Earnings Crediting Option is based
upon the actual investment performance of (i) the corresponding investment
portfolios of the EQ Advisers Trust, open-end investment management companies
under the Investment Company Act of 1940, as amended from time to time, or (ii)
such other investment fund(s) as the Company may designate from time to time,
and shall equal the total return of such investment fund net of asset based
charges, including, without limitation, money management fees, fund expenses and
mortality and expense risk insurance contract charges.  The Company reserves the right, on a
prospective basis, to add or delete Earnings Crediting Options.

5.3.          Earnings
Crediting Options.  Notwithstanding
that the rates of return credited to Participants’ Distribution Option Accounts
under the Earnings Crediting Options are based upon the actual performance of
the investment options specified in Section 5.2, or such other investment funds
as the Company may designate, the Company shall not be obligated to invest any
Compensation deferred by Participants under this Plan, Matching Contributions,
or any other amounts, in such portfolios or in any other investment funds.

5.4.          Changes in
Earnings Crediting Options.  A
Participant may change the Earnings Crediting Options to which his Distribution
Option Accounts are deemed to be allocated subject to such rules as may be
determined by the Plan Administrator, provided that except as the Plan
Administrator may otherwise determine in light of legal restrictions on
changes, the frequency of permitted changes shall not be less than four times
per Plan Year.  Each such change may
include (a) reallocation of the Participant’s existing Accounts in whole
percentages of not less than five percent, and/or (b) change in investment
allocation of amounts to be credited to the Participant’s Accounts in the
future, as the Participant may elect. 
The effect

 7
 

 

 

of a
Participant’s change in Earnings Crediting Options shall be reflected in the
Participant’s Accounts as soon as reasonably practicable following the Plan
Administrator’s receipt of notice of such change, as determined by the Plan
Administrator in its sole discretion.

5.5.          Valuation of
Accounts.  Except as otherwise
provided in Section 5.7, the value of a Participant’s Distribution Option
Accounts as of any date shall equal the amounts theretofore credited to such
Accounts, including any earnings (positive or negative) deemed to be earned on
such Accounts in accordance with Section 5.2 and Section 5.4 through the day preceding
such date, less the amounts theretofore deducted from such Accounts.

5.6.          Statement of
Accounts.  The Plan Administrator
shall provide to each Participant, not less frequently than quarterly, a
statement in such form as the Plan Administrator deems desirable for setting
forth the balance standing to the credit of each Participant in each of his
Distribution Option Accounts.

5.7.          Distributions
from Accounts.  Any distribution made
to or on behalf of a Participant from one or more of his Distribution Option
Accounts in an amount which is less than the entire balance of any such Account
shall be made pro rata from each of the Earnings Crediting Options to which
such Account is then allocated.  For
purposes of any provision of the Plan relating to distribution of benefits to
Participants or Beneficiaries, the value of a Participant’s Distribution Option
Accounts shall be determined as of a date as soon as reasonably practicable
preceding the distribution date, as determined by the Plan Administrator in its
sole discretion.  In the case of any
benefit payable in the form of a cash lump sum, the value of a Participant’s
Distribution Option Accounts, as determined pursuant to this Section 5.7, shall
be distributed.  In the case of any
benefit payable in the form of annual installments, as of any payment date, the
amount of each installment payment shall be determined as the quotient of (a)
the value of the Participant’s Distribution Option Account subject to
distribution, as determined pursuant to this Section 5.7, divided by (b) the
number of remaining annual installments immediately preceding the payment date.

ARTICLE 6

DISTRIBUTION OPTIONS

6.1.          Election of
Distribution Option.  In the first
completed and fully executed Enrollment Agreement filed with the Plan Administrator
for each Distribution Option Period, an Eligible Employee shall elect the time
and manner of payment pursuant to which the Eligible Employee’s Distribution
Option Accounts for that Distribution Option Period will be distributed.  Annually, the Eligible Employee shall
allocate his or her deferrals between the Distribution Options in increments of
ten percent.

6.2.          Retirement
Distribution Option.  Subject to
Section 7.1, distribution of the Participant’s Retirement Distribution Account,
if any, shall commence upon (a) the Participant’s Retirement or (b) the
Participant’s attainment of age 65, as elected by the Participant in the
Enrollment Agreement pursuant to which such Retirement Distribution Account was
established or otherwise as permitted under Section 7.1(a).

 8
 

 

 

6.3.          In-Service
Distribution Option.  Subject to
Section 7.2, the Participant’s In-Service Distribution Account for any
Distribution Option Period shall be distributed commencing in the year elected
by the Participant in the Enrollment Agreement pursuant to which such
In-Service Distribution Account was established.  Notwithstanding the foregoing, a Participant
shall not be entitled to allocate any deferrals to an In-Service Distribution
Account for the two Plan Years preceding the Plan Year which includes the date
on which such Account is to be distributed and such additional deferrals shall
instead be allocated to the Retirement Distribution Account.

ARTICLE 7

BENEFITS TO PARTICIPANTS

7.1.          Benefits Under
the Retirement Distribution Option. 
Benefits under the Retirement Distribution Option shall be paid to a
Participant as follows:

(a)           Benefits Upon
Retirement.

(i)            General.  In the case of a Participant whose Service
with the Employer terminates on account of his Retirement, the Participant’s
Retirement Distribution Account shall be distributed in one of the following
methods, as elected by the Participant in writing either in the Enrollment
Agreement or in a separate election made prior to the date of the Participant’s
Retirement: (x) in a lump sum; (y) in annual installments over 5, 10, 15 or 20
years; or (z) by any other formula that is mathematically derived and is
acceptable to the Plan Administrator.

(ii)           Payment
of Lump Sums.  Any lump-sum benefit
payable in accordance with this paragraph shall be paid in the Plan Year
following the Plan Year in which the Participant’s Retirement occurs, but not
earlier than six months following such Retirement, or, if later, attainment of
age 65 as elected by the Participant in accordance with this Section 7.1 or
Section 6.2.

(iii)          Payment
of Annual Installments.  Annual
installment payments, if any, shall commence in the Plan Year following the
Plan Year in which the Participant’s Retirement occurs, but not earlier than
six months following such Retirement, or, if later, as soon as reasonably
practicable following the Participant’s attainment of age 65, as elected by the
Participant in accordance with this Section 7.1 or Section 6.2.

(b)           Changes in Forms
of Distribution.  A Participant may
change the election regarding the manner of payment of the Participant’s
Retirement Distribution Account by filing a revised Enrollment Agreement prior
to the Participant’s Retirement.

(c)           Changes in Timing
of Distribution.  A Participant may
change the election regarding the timing of the distribution to defer the date
on which the distribution should commence by filing a revised Enrollment
Agreement prior to the Participant’s Retirement.

(d)           Benefits Upon
Termination of Employment.  In the
case of a Participant whose Service with the Employer terminates prior to the
earliest date on which the

 9
 

 

 

Participant is
eligible for Retirement, other than on account of becoming Disabled or by
reason of death, the Participant’s Retirement Distribution Account shall be
distributed (i) in a lump sum in the Plan Year following the Plan Year that
includes the Participant’s Termination Date, but not earlier than six months
following such termination, or (ii) beginning as soon as reasonably practicable
in the Plan Year following the Participant’s attainment of age 55, but not
earlier than six months following such termination, all as elected by the
Participant in the Enrollment Agreement pursuant to which such Retirement
Distribution Account was established.  A
Participant may file a revised Enrollment Agreement prior to termination on
which such Participant elects that benefits be distributed in accordance with
the preceding subsections (i) or (ii). 
Notwithstanding the preceding provisions of this subsection (d), the
Company may override a Participant’s election and cause a distribution under
clause (i) notwithstanding any other election by the Participant.

(e)           Forfeiture.  If a Participant who became a participant in
the MRC Group, Inc. Profit-Sharing and Savings Plan (the “401(k) Plan”) after
January 1, 1997, terminates Service, other than due to Retirement, Disability
or death, prior to being credited with five (5) years of service, as determined
pursuant to the terms of the 401(k) Plan, all or a portion of the Participant’s
Retirement Distribution Account attributable to Matching Contributions shall be
forfeited, as follows:

	
  Termination Prior to

  	
   

  	
   

  	
   

  
	
  Completion of Year

  	
   

  	
  Portion Forfeited

  	
   

  
	
  3

  	
   

  	
  100

  	
  %

  
	
  4

  	
   

  	
  80

  	
  %

  
	
  5

  	
   

  	
  60

  	
  %

  

 

7.2.          Benefits Under
the In-Service Distribution Option. 
Benefits under the In-Service Distribution Option shall be paid to a
Participant as follows:

(a)           In-Service
Distributions.  In the case of a
Participant who continues in Service with the Employer, the Participant’s
In-Service Distribution Account for any Distribution Option Period shall be
paid to the Participant commencing in, but not later than January 31 of, the
Plan Year irrevocably elected by the Participant in the Enrollment Agreement
pursuant to which such In-Service Distribution Account was established, which
may be no earlier than the third Plan Year following the end of the last Plan
Year in the Distribution Option Period in which deferrals are to be credited to
the In-Service Distribution Account for that Distribution Option Period, in one
lump sum or in annual installments payable over 2, 3, 4, or 5 years.

(i)            Any
lump-sum benefit payable in accordance with this paragraph shall be paid in,
but not later than January 31 of, the Plan Year elected by the Participant in
accordance with Section 6.3.

 10
 

 

 

(ii)           Annual
installment payments, if any, shall commence in, not later than January 31 of,
the Plan Year elected by the Participant in accordance with Section 6.3.

(b)           Benefits Upon
Termination of Employment.  In the
case of a Participant whose Service with the Employer terminates prior to the
date on which the Participant’s In-Service Distribution Account would otherwise
be distributed, other than on account of becoming Disabled or by reason of
death, such In-Service Distribution Account shall be distributed:  (i) in a lump sum in the Plan Year following
the Participant’s Termination Date, (ii) in annual installments commencing on
the date such In-Service Distribution Account would otherwise have been
distributed, or (iii) in a lump sum on the date such In-Service Distribution
Account would otherwise have been distributed, all as elected by the
Participant in the Enrollment Agreement pursuant to which such In-Service
Distribution Account was established; provided, however, that no distribution
shall be made, or commence, earlier than the later of the first day of the Plan
Year following such termination or six months following termination.  A Participant may file a revised Enrollment
Agreement prior to termination on which such Participant elects that benefits
be distributed in accordance with the preceding subsections (i), (ii) or
(iii).  Notwithstanding the preceding
provisions of this subsection (b), the Company may override a Participant’s
election and cause a distribution under clause (i) notwithstanding any other
election by the Participant.

ARTICLE 8

DISABILITY

8.1.          In the event a
Participant becomes Disabled, the Participant’s right to make any further
deferrals under this Plan shall terminate as of the date the Participant
terminates due to Disability.  The
Participant’s Distribution Option Accounts shall continue to be credited with
earnings in accordance with Section 5.2 until such Accounts are fully
distributed.  For purposes of this Plan,
a Disabled Participant will not be treated as having terminated Service.  The Participant’s Retirement Distribution
Account, if any, shall be distributed to the Participant in accordance with
Section 7.1(a), provided, however, that distribution of the Participant’s
Retirement Distribution Accounts, if any, shall commence not later than January
31 of the Plan Year immediately following the later of (a) the Plan Year in
which the Participant first becomes eligible for Retirement, or (b) the Plan
Year in which the Participant first terminated due to Disability.  The Participant’s In-Service Distribution
Accounts, if any, will be distributed to the Participant in accordance with
Section 7.2(a) without regard to the fact that the Participant became Disabled.

ARTICLE 9

SURVIVOR BENEFITS

9.1.          Death of Participant
Prior to the Commencement of Benefits. 
In the event of a Participant’s death prior to the commencement of
benefits in accordance with Article 7, benefits shall be paid to the
Participant’s Beneficiary, as determined under Section 12.3, pursuant to
Section 9.2 or 9.3, whichever is applicable, in lieu of any benefits otherwise
payable under the Plan to or on behalf of such Participant.

 11

9.2.          Survivor Benefits
Under the Retirement Distribution Option. 
In the case of a Participant with respect to whom the Company has
established a Retirement Distribution Account, and who dies prior to the
commencement of benefits under such Retirement Distribution Account pursuant to
Section 7.1, distribution of such Retirement Distribution Account shall be made
in the manner and at such time as elected by the Participant in the Enrollment
Agreement pursuant to which such Retirement Distribution Account was
established or as may have been changed by the Participant.

9.3.          Survivor Benefits
Under the In-Service Distribution Option. 
In the case of a Participant with respect to whom the Company has
established one or more In-Service Distribution Accounts, and who dies prior to
the date on which such In-Service Distribution Accounts are to be paid pursuant
to Section 7.2, distribution of such In-Service Distribution Accounts shall be
made at such time and in such form as irrevocably elected by the Participant in
the Enrollment Agreement pursuant to which such In-Service Distribution
Accounts were established.

9.4.          Death of
Participant After Benefits Have Commenced. 
In the event a Participant who dies after annual installment benefits
payable under Section 7.1 and/or Section 7.2 from the Participant’s Retirement
Distribution Account and/or In-Service Distribution Account has commenced, but
before the entire balance of such Accounts has been paid, any remaining annual
installments shall continue to be paid to the Participant’s Beneficiary,
subject to Section 11.3, at such times and in such amounts as they would have
been paid to the Participant had he survived.

ARTICLE 10

EMERGENCY BENEFIT

10.1.        In the event that the
Plan Administrator, upon written request of a Participant, determines, in its
sole discretion, that the Participant has suffered an unforeseeable financial
emergency, the Company shall pay to the Participant from his Distribution
Option Account, as soon as practicable following such determination, an amount
necessary to meet the emergency, after deduction of any and all taxes as may be
required pursuant to Section 12.9 (the “Emergency Benefit”).  For purposes of this Plan, an unforeseeable
financial emergency is an unexpected need for cash arising from an illness,
casualty loss, sudden financial reversal, or other such unforeseeable
occurrence.  Cash needs arising from
foreseeable events such as the purchase of a house or education expenses for
children shall not be considered to be the result of an unforeseeable financial
emergency.  Emergency Benefits shall be
paid first from the Participant’s In-Service Distribution Accounts, if any, to
the extent the balance of one or more of such InService Distribution Accounts
is sufficient to meet the emergency, in the order in which such Accounts would
otherwise be distributed to the Participant. 
If the distribution exhausts the InService Distribution Accounts, the
Retirement Distribution Account may be accessed.  With respect to that portion of any
Distribution Option Account which is distributed to a Participant as an
Emergency Benefit in accordance with this Article 10, no further benefit shall
be payable to the Participant under this Plan. 
Notwithstanding anything in this Plan to the contrary, a Participant who
receives an Emergency Benefit in any Plan Year shall not be entitled to make
any further deferrals for the remainder of such Plan Year.  It is intended that the Plan

 12
 

 

 

Administrator’s
determination as to whether a Participant has suffered an “unforeseeable financial
emergency” shall be made consistent with the requirements under section 457(d)
of the Code.

ARTICLE 11

ACCELERATED DISTRIBUTION

11.1.        Availability of
Withdrawal Prior to Retirement.  Upon
the Participant’s written election, the Participant may elect to withdraw all
or a portion of the Participant’s Distribution Option Account at any time prior
to the time such Distribution Option Account otherwise becomes payable under
the Plan, provided the conditions specified in Section 11.3,  Section 11.4. and Section 11.5 are satisfied.

11.2.        Acceleration of
Periodic Distributions.  Upon the
Participant’s written election, the Participant or Participant’s Beneficiary
who is receiving annual installment payments under the Plan may elect to have
all or a percentage of the remaining annual installments distributed in the
form of an immediately payable lump sum, provided the condition specified in
Section 11.3 is satisfied.

11.3.        Forfeiture Penalty.  In the event of a withdrawal pursuant to
Section 11.1, or an accelerated distribution pursuant to Section 11.2, the
Participant shall forfeit from his Distribution Option Account from which the
withdrawal is made an amount equal to 10% of the amount of the withdrawal or
accelerated distribution, as the case may be. 
The forfeited amount shall be deducted from the applicable Distribution
Option Account prior to giving effect to the withdrawal or acceleration.  The Participant and the Participant’s
Beneficiary shall not have any right or claim to the forfeited amount and the
Company shall have no obligation whatsoever to the Participant, the Participant’s
Beneficiary or any other person with regard to the forfeited amount.

11.4.        Minimum Withdrawal.  In no event shall the amount withdrawn in
accordance with Section 11.1 be less than 25% of the amount credited to the
Participant’s Distribution Option Account immediately prior to the withdrawal.

11.5.        Suspension from
Deferrals.  In the event of a
withdrawal pursuant to Section 11.1, a Participant who is otherwise eligible to
make deferrals under Article 4 shall be prohibited from making any deferrals
with respect to the Plan Year immediately following the Plan Year during which
the withdrawal was made, and any election previously made by the Participant
with respect to deferrals for the Plan Year of the withdrawal shall be void and
of no effect with respect to subsequent deferrals for such Plan Year.

ARTICLE 12

MISCELLANEOUS

12.1.        Amendment and
Termination.  The Plan may be
amended, suspended, discontinued or terminated at any time by the Plan
Administrator; provided, however, that no such amendment, suspension,
discontinuance or termination shall reduce or in any manner

 13
 

 

 

adversely
affect the rights of any Participant with respect to benefits that are payable
or may become payable under the Plan based upon the balance of the Participant’s
Accounts as of the effective date of such amendment, suspension, discontinuance
or termination.

12.2.        Claims Procedure.

(a)           Claim.  A person who believes that he is being denied
a benefit to which he is entitled under the Plan (hereinafter referred to as a “Claimant”)
may file a written request for such benefit with the Plan Administrator,
setting forth the claim.

(b)           Claim Decision.  Upon receipt of a claim, the Plan
Administrator shall advise the Claimant within ninety (90) days of receipt of
the claim whether the claim is denied. 
If special circumstances require more than ninety (90) days for
processing, the Claimant will be notified in writing within ninety (90) days of
filing the claim that the Plan Administrator requires up to an additional
ninety (90) days to reply.  The notice
will explain what special circumstances make an extension necessary and
indicate the date a final decision is expected to be made.

If the Claimant does not receive a written denial
notice or notice of an extension within ninety (90) days, the Claimant may
consider the claim denied and may then request a review of denial of the claim,
as described below.

If the claim is denied in whole or in part, the
Claimant shall be provided a written opinion, using language calculated to be
understood by the Claimant, setting forth:

(i)            The
specific reason or reasons for such denial;

(ii)           The
specific reference to pertinent provisions of this Plan on which such denial is
based;

(iii)          A
description of any additional material or information necessary for the
Claimant to perfect his claim and an explanation why such material or such
information is necessary;

(iv)          Appropriate
information as to the steps to be taken if the Claimant wishes to submit the
claim for review; and

(v)           The
time limits for requesting a review under subsection (c) and for review under
subsection (d) hereof.

(c)           Request for
Review.  Within sixty (60) days after
the receipt by the Claimant of the written opinion described above, the
Claimant may request in writing that the Plan Administrator review its
determination. The Claimant or his duly authorized representative may, but need
not, review the pertinent documents and submit issues and comments in writing
for consideration by the Plan Administrator. 
If the Claimant does not request a review of the initial determination
within such sixty (60) day period, the Claimant shall be barred and estopped
from challenging the determination.

 14
 

 

 

(d)           Review of
Decision.  Within sixty (60) days
after the Plan Administrator’s receipt of a request for review, it will review
the initial determination.  After
considering all materials presented by the Claimant, the Plan Administrator
will render a written opinion, written in a manner calculated to be understood
by the Claimant, setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on
which the decision is based.  If special
circumstances require that the sixty (60) day time period be extended, the Plan
Administrator will so notify the Claimant and will render the decision as soon
as possible, but no later than one hundred twenty (120) days after receipt of
the request for review.

12.3.        Designation of
Benefit.  Each Participant may
designate a Beneficiary or Beneficiaries (which Beneficiary may be an entity
other than a natural person) to receive any payments which may be made
following the Participant’s death.  Such
designation may be changed or canceled at any time without the consent of any
such Beneficiary.  Any such designation,
change or cancellation must be made in a form approved by the Plan
Administrator and shall not be effective until received by the Plan Administrator,
or its designee.  If no Beneficiary has
been named, or the designated Beneficiary or Beneficiaries shall have
predeceased the Participant, the Beneficiary shall be the Participant’s
estate.  If a Participant designates more
than one Beneficiary, the interests of such Beneficiaries shall be paid in
equal shares, unless the Participant has specifically designated otherwise.

12.4.        Limitation of
Participant’s Right.  Nothing in this
Plan shall be construed as conferring upon any Participant any right to
continue in the employment of the Company, nor shall it interfere with the
rights of the Company to terminate the employment of any Participant and/or to
take any personnel action affecting any Participant without regard to the
effect which such action may have upon such Participant as a recipient or
prospective recipient of benefits under the Plan.  Any amounts payable hereunder shall not be
deemed salary or other compensation to a Participant for the purposes of
computing benefits to which the Participant may be entitled under any other
arrangement established by the Employer for the benefit of its employees.

12.5.        No Limitation on
Company Actions.  Nothing contained
in the Plan shall be construed to prevent the Company from taking any action
which is deemed by it to be appropriate or in its best interest.  No Participant, Beneficiary, or other person
shall have any claim against the Company as a result of such action.

12.6.        Obligations to
Company.  If a Participant becomes
entitled to a distribution of benefits under the Plan, and if at such time the
Participant has outstanding any debt, obligation, or other liability
representing an amount owing to the Employer, then the Employer may offset such
amount owed to it against the amount of benefits otherwise distributable.  Such determination shall be made by the Plan
Administrator.

12.7.        Nonalienation of
Benefits.  Except as expressly
provided herein, no Participant or Beneficiary shall have the power or right to
transfer (otherwise than by will or the laws of descent and distribution),
alienate, or otherwise encumber the Participant’s or Beneficiary’s interest
under the Plan.  The Company’s
obligations under this Plan are not

 15
 

 

 

assignable or
transferable, except to (a) any corporation or partnership which acquires
all or substantially all of the Company’s assets or (b) any corporation or
partnership into which the Company may be merged or consolidated.  A Participant’s or Beneficiary’s interest
under the Plan is not assignable or transferable pursuant to a domestic
relations order.  The provisions of the
Plan shall inure to the benefit of each Participant and the Participant’s
Beneficiaries, heirs, executors, administrators or successors in interest.

12.8.        Protective
Provisions.  Each Participant shall
cooperate with the Company by furnishing any and all information requested by
the Company in order to facilitate the payment of benefits hereunder, taking
such physical examinations as the Company may deem necessary and taking such
other relevant action as may be requested by the Company.  If a Participant refuses to cooperate, the
Company shall have no further obligation to the Participant under the Plan,
other than payment to such Participant of the then current balance of the
Participant’s Distribution Option Accounts in accordance with his prior
elections.

12.9.        Taxes.  The Company may make such provisions and take
such action as it may deem appropriate for the withholding of any taxes which
the Company is required by any law or regulation of any governmental authority,
whether Federal, state or local, to withhold in connection with any benefits
under the Plan, including, but not limited to, the withholding of appropriate
sums from any amount otherwise payable to the Participant (or his
Beneficiary).  Each Participant, however,
shall be responsible for the payment of all individual tax liabilities relating
to any such benefits.

12.10.      Unfunded Status of
Plan. The Plan is an “unfunded” plan for tax and Employee Retirement Income
Security Act purposes.  This means that
the value of a Participant’s Distribution Option Accounts is based on the value
assigned to a hypothetical bookkeeping account, which is invested in
hypothetical shares of investments funds available under the Plan.  As the nature of the investment fund which
forms the “index” or “meter” for the valuation of the bookkeeping account
changes, the valuation of the bookkeeping account changes as well.  The amount owed to a Participant is based on
the value assigned to the bookkeeping account. 
MedQuist Inc. may decide to use a “rabbi trust” to anticipate its
potential Plan liabilities, and it may attempt to have Plan investments mirror
the hypothetical investments deemed credited to the bookkeeping accounts.  However, the liability to pay the benefits is
MedQuist Inc.’s, and the assets of the rabbi trust are potentially available to
satisfy the claims of non-participant creditors of MedQuist Inc.

12.11.      Severability.  If any provision of this Plan is held
unenforceable, the remainder of the Plan shall continue in full force and
effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in the Plan.

12.12.      Governing Law.  The Plan shall be construed in accordance
with and governed by the laws of the State of New Jersey, without reference to
the principles of conflict of laws.

 16
 

 

 

12.13.      Headings.  Headings are inserted in this Plan for
convenience of reference only and are to be ignored in the construction of the
provisions of the Plan.

12.14.      Gender, Singular
and Plural.  All pronouns and any
variations thereof shall be deemed to refer to the masculine, feminine, or
neuter, as the identity of the person or persons may require.  As the context may require, the singular may
read as the plural and the plural as the singular.

12.15.      Notice.  Any notice or filing required or permitted to
be given to the Plan Administrator under the Plan shall be sufficient if in
writing and hand delivered, or sent by registered or certified mail, to
MedQuist Inc., 5 Greentree Centre, Suite 311, Marlton, New Jersey 10853,
Attention: General Counsel, or to such other entity as the Plan Administrator
may designate from time to time.  Such
notice shall be deemed given as to the date of delivery, or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]