Document:

exv10w15

Exhibit 10.15

MEDQUIST INC.

2002 STOCK OPTION PLAN

1. Purpose of Plan

          The purpose of this 2002 Stock Option Plan (the “Plan”) is to provide additional incentive to
officers, other key employees, and non-employee directors of MedQuist Inc., a New Jersey
corporation (the “Company”), and each present or future parent or subsidiary corporation, by
encouraging them to invest in shares of the Company’s common stock, no par value (“Common Stock”),
and thereby acquire a proprietary interest in the Company and an increased personal interest in the
Company’s continued success and progress.

2. Aggregate Number of Shares

          1,500,000 shares of the Company’s Common Stock shall be the aggregate number of shares which
may be issued under this Plan. Notwithstanding the foregoing, in the event of any change in the
outstanding shares of the Common Stock of the Company by reason of a stock dividend, stock split,
combination of shares, recapitalization, merger, consolidation, transfer of assets, reorganization,
conversion or what the Committee (defined in Section 4 (a)), deems in its sole discretion to be
similar circumstances,

 

 

the aggregate number and kind of shares which may be issued under this Plan shall be
appropriately adjusted in a manner determined in the sole discretion of the Committee. Reacquired
shares of the Company’s Common Stock, as well as unissued shares, may be used for the purpose of
this Plan. Common Stock of the Company subject to options which have terminated unexercised, either
in whole or in part, shall be available for future options granted under this Plan.

3. Class of Persons Eligible to Receive Options

          All officers and key employees of the Company and of any present or future Company parent or
subsidiary corporation are eligible to receive an option or options under this Plan. All
non-employee directors of the Company and of any present or future Company parent or subsidiary
corporation are also eligible to receive an option or options under this Plan. The individuals who
shall, in fact, receive an option or options shall be selected by the Committee, in its sole
discretion, except as otherwise specified in Section 4 hereof. No individual may receive options
under this Plan for more than 80% of the total number of shares of the Company’s Common Stock
authorized for issuance under this Plan.

          Unless otherwise amended by the Committee, each person who is not an employee of the Company
or any Company subsidiary and who is a director of the Company as of June 1 of each year shall
automatically be granted an option to purchase 3,000 shares of the Common Stock. The foregoing
automatic grant may be modified or eliminated from time to time by vote of a majority of the Board
of Directors who are not eligible to receive options pursuant to the foregoing automatic grant.
Notwithstanding the foregoing, in the event of any change in the capitalization of the Company,
such as by stock dividend, stock split, or what the Committee of

 

 

the Company deems in its sole discretion to be similar circumstances, the number and kind of shares
which may be issued under this Plan shall be automatically adjusted by the Committee of the
Company.

4. Administration of Plan

     a. This Plan shall be administered by the Company’s Board of Directors or by an
Option Committee (“Committee”) appointed by the Company’s Board of Directors. The Committee shall
consist of a minimum of two and a maximum of five members of the Board of Directors, each of whom
shall be a “Non-Employee Director” within the meaning of Rule 16b-3 (b) (3) under the Securities
Exchange Act of 1934, as amended, or any future corresponding rule, except that the failure of the
Committee for any reason to be composed solely of Non-Employee Directors shall not prevent an
option from being considered granted under this Plan. The Committee shall, in addition to its other
authority and subject to the provisions of this Plan, determine which individuals shall in fact be
granted an option or options, whether the option shall be an Incentive Stock Option or a
Non-Qualified Stock Option (as such terms are defined in Section 5(a)), the number of shares to be
subject to each of the options, the time or times at which the options shall be granted, the rate
of option exercisability, and, subject to Section 5 hereof, the price at which each of the options
is exercisable and the duration of the option. The term “Committee”, as used in this Plan and the
options granted hereunder, refers to either the Board of Directors or to the Committee, whichever
is then administering this Plan.

     b. The Committee shall adopt such rules for the conduct of its business and
administration of this Plan as it considers desirable. A majority of the members of the Committee
shall constitute a quorum for all purposes. The vote or written consent of a majority of the
members of the Committee on a particular matter shall constitute the act of the Committee on such
matter. The Committee shall have the right to construe the Plan and the options issued pursuant to
it, to correct defects and omissions and to reconcile inconsistencies to the extent necessary to
effectuate the Plan and the options issued pursuant to it, and such action shall be final, binding
and conclusive upon all parties concerned. No member of the Committee or the Board of Directors
shall be liable for any act or omission (whether or not negligent) taken or omitted in good faith,
or for the exercise of an authority or discretion granted in connection with the Plan to a
Committee or the Board of Directors, or for the acts or omissions of any other members of a
Committee or the Board of Directors. Subject to the numerical limitations on Committee membership
set forth in Section 4(a) hereof, the Board of Directors may at any time appoint additional members
of the Committee and may at any time remove any member of the Committee with or without cause.
Vacancies in the Committee, however caused, may be filled by the Board of Directors, if it so
desires.

5. Incentive Stock Options and Non-Qualified Stock Options

     a. Options issued pursuant to this Plan may be either Incentive Stock Options
granted pursuant to Section 5(b) hereof or Non-Qualified Stock Options granted
pursuant to Section 5(c) hereof, as determined by the Committee. An “Incentive Stock Option”
is an option which satisfies all of the requirements of Section 422(b) of the Internal Revenue Code
of 1986, as amended (the “Code”) and the regulations thereunder, and a “Non-Qualified Stock option”
is an option which either does not satisfy all of those requirements or the terms of the option

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provide that it will not be treated as an Incentive Stock Option. The Committee may grant both an
Incentive Stock Option and a Non-Qualified Stock Option to the same person, or more than one of
each type of option to the same person. The option, price for options issued under this Plan shall
be equal at least to the fair, market value (as defined below) of the Company’s Common Stock on the
date of the grant of the option. The fair market value of the Company’s Common Stock on ally
particular date shall mean the last reported sale price of a share of the Company’s Common Stock on
any stock exchange on which such stock is then listed or admitted to trading, or on the NASDAQ
National Market System or Small Cap NASDAQ, on such date, or if no sale took place on such day, the
last such date on which a sale took place, or if the Common Stock is not then quoted on the NASDAQ
National Market System or Small Cap NASDAQ, or listed or admitted to trading on any stock exchange,
the average of the bid and asked prices in the over-the-counter market on such date, or if none of
the foregoing, a price determined in good faith by the Committee to equal the fair market value per
share of the Common Stock.

     b. Subject to the authority of the Committee set forth in Section 4(a), hereof,
Incentive Stock Options issued pursuant to this Plan shall be issued in such form as the Committee
may determine from time to time, and shall contain substantially the terms and conditions set forth
herein. Incentive Stock Options shall not be exercisable after the expiration of ten years from the
date such. options are granted, unless terminated earlier under the terms of the option, except
that options granted to individuals described in Section 422(b) (6) of the Code shall conform to
the provisions of Section 422(c) (5) of the Code. Each of the options granted pursuant to this
Section 5(b) is intended, if possible, to be an “Incentive Stock Option” as that term is defined in
Section 422(b) of the Code and the regulations thereunder. In the event this Plan or any option
granted pursuant to this Section 5(b) is in any way inconsistent with the applicable legal
requirements of the Code or the regulations thereunder for an Incentive Stock Option, this Plan and
such option shall be deemed automatically amended as of the date hereof to conform to such legal
requirements, if such conformity may be achieved by amendment.

     c. Subject to the authority of the Committee set forth in Section 4(a) hereof,
Non-Qualified Stock Options issued to non-employee directors, officers and other key employees
pursuant to this Plan shall be issued in such form as the Committee may determine from time to
time, and shall contain substantially the terms and conditions set forth herein. Non-Qualified
Stock Options shall expire ten years after the date they are granted, unless terminated earlier
under the option terms.

     d. Neither the Company nor any of its current or future parent, subsidiaries or
affiliates, nor their officers, directors, shareholders, stock option plan committees, employees or
agents shall have any liability to any optionee in the event (i) an option granted pursuant to
Section 5(b) hereof does not qualify as an “Incentive Stock Option” as that term is used in Section
422(b) of the Code and the regulations thereunder; (ii) any optionee does not obtain the tax
treatment pertaining to an Incentive Stock Option; or (iii) any option granted pursuant to Section
5(c) hereof is an “Incentive Stock Option.”

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6. Amendment, Supplement, Suspension and Termination

          Options shall not be granted pursuant to this Plan after the expiration of ten years from the
date the Plan is adopted by the Board of Directors of the Company. The Board of Directors reserves
the right at any time, and from time to time, to amend or supplement this Plan in any way, or to
suspend or terminate it, effective as of such date, which date may be either before or after the
taking of such action, as may be specified by the Board of Directors; provided, however, that such
action shall not, without the consent of the optionee, affect options granted under the Plan prior
to the actual date on which such action occurred. If an amendment or supplement of this Plan is
required by the Code or the regulations thereunder to be approved by the shareholders of the
Company in order to permit the granting of “Incentive Stock Options” (as that term is defined in
Section 422 (b) of the Code and regulations thereunder) pursuant to the amended or supplemented
Plan, such amendment or supplement shall also be approved by the shareholders of the Company in
such manner as is prescribed by the Code and the regulations thereunder. If the Board of Directors
voluntarily submits a proposed amendment, supplement, suspension or termination for shareholder
approval, such submission shall not require any future amendments, supplements, suspensions or
terminations (whether or not relating to the same provision or subject matter) to be similarly
submitted for shareholder approval.

7. Effectiveness of Plan

          This Plan shill become effective on the date of its adoption by the Company’s Board of
Directors, subject however to approval by the holders of the Company’s Common Stock in the manner
as prescribed in the Code and the regulations thereunder. Options may be granted under this Plan
prior to obtaining shareholder approval, provided such options shall not be exercisable until
shareholder approval is obtained.

8. General Conditions

     a. Nothing contained in this Plan or any option granted pursuant to this Plan
shall confer upon any employee the right to continue in the employ of the Company or any affiliated
or subsidiary corporation or interfere in any way with the rights of the Company or any affiliated
or subsidiary corporation to terminate his employment in any way.

     b. Nothing contained in this Plan or any option granted pursuant to this Plan
shall confer upon any director the right to continue as a director of the Company or any affiliated
or subsidiary corporation or interfere in any way with the rights of the Company or any affiliated
or subsidiary corporation, or their respective shareholders, to terminate the directorship of any
such director.

     c. Corporate action constituting an offer of stock for sale to any person under
the terms of the options to be granted hereunder shall be deemed complete as of the
date when the Committee authorizes the grant of the option to the such person, regardless of
when the option is actually delivered to such person or acknowledged or agreed to by him.

     d. The terms “parent corporation” and “subsidiary corporation” as used throughout
this Plan, and the options granted pursuant to this Plan, shall (except as otherwise provided in
the option form) have the meaning that is ascribed to that term when contained in Section 422(b) of

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the Code and the regulations thereunder, and the Company shall be deemed to be the grantor
corporation for purposes of applying such meaning.

     e. References in this Plan to the Code shall be deemed to also refer to the
corresponding provisions of any future United States revenue law.

     f. The use of the masculine pronoun shall include the feminine gender whenever
appropriate.

5exv10w16

Exhibit 10.16

STOCK OPTION AGREEMENT

To:

Grant Date:

          Pursuant to MedQuist’s Stock Option Plan (the “Plan”) adopted May 29, 2002, you are hereby
granted separate options, effective as of the grant date, to purchase that number of shares of
common stock, no par value per share (the “Common Stock”), of Medquist Inc., a New Jersey
corporation (“MedQuist”), set forth on, and at the respective, exercise prices per share indicated
on, the attached Grant Detail Report. Your option price is intended to equal at least the fair
market value of the Common Stock as of the grant date. Your right to exercise this option will
vest in equal 20% installments on each of the first 3 anniversaries of the grant date.

          This option shall terminate and is not exercisable on or after       
       (the
“Scheduled Termination Date”), except if terminated earlier as hereafter provided.

          You may exercise your option by giving written notice to the Secretary of MedQuist on forms
supplied by MedQuist at its then principal executive office, accompanied by payment of the option
price for the total number of shares you specify that you wish to purchase. The payment may be in
cash or any manner permitted under the Plan and by MedQuist.

          Your option will, to the extent not previously exercised by you, terminate ninety (90) days
after the date either (i) you cease to perform services for MedQuist or a subsidiary corporation of
MedQuist, or (ii) MedQuist or a subsidiary corporation of MedQuist delivers or receives notice of
an intention to terminate the employment relationship, regardless of whether or not a different
effective date of termination is provided in such notice, whether such termination is voluntary or
not, but not if your termination is due to disability, as defined in Section 22(e)(3) of the
Internal Revenue Code of 1986, a. amended (the “Code”), or death (but in no event later than the
Scheduled Termination date). After that date your service or employment is terminated, as
aforesaid, you may exercise this option only for the number of shares which you had a right to
purchase and did not purchase on such termination date. If you are employed by a subsidiary
corporation of MedQuist, your employment shall be deemed to have terminated on the date your
employer ceases to be a subsidiary corporation of MedQuist, unless you are on that date transferred
to MedQuist or another subsidiary corporation of MedQuist. Your employment shall not be deemed to
have terminated if you are transferred from MedQuist to a subsidiary corporation of MedQuist, or
vise versa, or from one subsidiary corporation of MedQuist to another subsidiary corporation of
MedQuist.

          If you die while employed by MedQuist or a subsidiary corporation of MedQuist, your
legatee(s), distributee(s), executor or administrator, as the case may be, may, at any time within
one year after the date of your death (but in no event later than the Scheduled Termination Date),
exercise the option as to any shares which you had a right to purchase and did not purchase during
your lifetime. It your employment by MedQuist or a subsidiary corporation of MedQuist is
terminated by reason of your becoming disabled (within the meaning of Section

 

 

22(e)(3) of the Code and the regulations thereunder), you or your legal guardian or custodian may
at any time within one year after the date of such termination (but in no event later than the
Scheduled Terminated Date), exorcise the option as to any shares which you had a right to purchase
and did not purchase prior to such termination. Your executor, administrator, guardian or
custodian must present proof of his authority satisfactory to MedQuist prior to being allowed to
exercise this option.

          In the event of any change in the outstanding shares of the Common Stock by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger, consolidation, transfer of
assets, reorganization, conversion or what the Committee deems in its sole discretion to be similar
circumstances the number and kind of shares subject to this option and the option price of such
shares will be appropriately adjusted in a manner to be determined in the sole discretion of the
Committee or replaced with equal value as determined in the sole discretion of the Committee.

          The option is not transferable otherwise than by will, the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined under the Internal Revenue Code of
1986, as amended, or Title I of the Employee Retirement Income Security Act, or the rules
thereunder , and is exercisable during your lifetime only by you. Until the option price has been
paid in full pursuant to due exercise of this option and the purchased shares are delivered to you,
you do not have any right, as a shareholder of MedQuist. MedQuist reserves the right not to
deliver to you the shares purchased by virtue of the exercise of this option during any period of
time in which MedQuist. deems in its sole discretion, that such delivery would violate a federal,
state, local or securities exchange rule, regulation or law or any terms of this Agreement, a prior
stock option agreement or a restrictive covenant in favor of MedQuist.

          Notwithstanding anything to the contrary contained herein, this option is not exercisable
during any period of time in which MedQuist deems that the exercisability of this option, the offer
to sell the shares options hereunder, or the sale hereof, may violate a federal, state, local or
securities exchange rule, regulation or law, or may cause MedQuist to be legally obligated to issue
or sell more shares than MedQuist is legally entitled to issue or sell.

          At the time of issuance of securities pursuant to this Plan, MedQuist may require such
restrictions, legends or other provisions as it deems necessary to comply with any federal or state
securities law.

          In the event this option is in any way inconsistent with the legal requirements of the Code or
the regulations thereunder for an “incentive stock option,” this option shall be deemed
automatically amended as of the date hereof to conform to such legal requirements, if such
conformity may be achieved by amendment. The attached Grant Detail Report specifies which of your
options are intended to be incentive stock options (if any) and which are intended to be
non-qualified stock options (if any).

          This option shall be subject to the terms of the Plan as in effect on the date this option is
granted, which terms are hereby incorporated herein by reference and made a part thereof. In the
event of any conflict between the terms of this option and the terms of the Plan, the terms of the
Plan shall govern.

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          This option constitutes the entire understanding between MedQuist and you with
respect to the subject matter hereof and no amendment, modification or waiver of this
option, in whole or in part, shall be binding upon MedQuist unless in writing and
signed by a member or designee of the Compensation Committee of MedQuist.

          Your exercise will not be completed until you have paid or made suitable arrangements to pay,
(i) all federal, state and local income tax withholding required to be withheld by the Company in
connection with the option exercise and (ii) the employee’s portion of other federal, state and
local payroll and other taxes due in connection with the option exercise.

          This grant is in partial consideration of your prior execution, delivery and performance of a
Confidentiality and Non-Solicitation Agreement or similar agreement between you and MedQuist or any
of its direct or indirect subsidiaries containing confidentiality, non-solicitation or other
restrictive covenants (a “Noncompetition Agreement”). If you have not previously executed a
Noncompetition Agreement with the Company, you hereby agree to the confidentiality and
noninterference provisions set forth on Attachment A, which shall then be considered the
Noncompetition Agreement for purposes of interpreting this Agreement. If you breach the terms of
your Noncompetition Agreement, all of the options granted hereunder or granted to you previously
shall expire immediately and the grant(s) shall be deemed void. In the event of such a breach, if
you have exercised any such options within 12 months prior to or any time after the breach, you
shall be obligated to refund to MedQuist immediately an amount equal to the fair value of the
Common Stock on the date of such exercise (less the exercise price paid by you) plus subsequent
increase in value of MedQuist stock. The foregoing is separate from and in addition to any other
legal or equitable remedies to which the Company may be entitled as a result of such a breach. If
a court determines that all or a portion of your Noncompetition Agreement is not enforceable, then
this Stock Option Agreement shall be void.

          Validity, interpretation, construction, performance and enforcement of this Agreement shall be
governed by the laws of the State of New Jersey, without regard to its conflict of law principles.
The parties fully agree that the exclusive venue of any action arising out of this Agreement and
any Non-Competition Agreement shall be in the Superior Court of Burlington County, New Jersey, any
other court of the State of New Jersey having jurisdiction and value over an action arising out of
this agreement, or the United States District Court for the District of New Jersey.

          Please sign the copy of this option and return it to MedQuist’s Secretary, thereby indicating
your understanding of and agreement with its terms and conditions.

	 	 	 	 	 
	 	MEDQUIST INC. 

 	 
	(SEAL) 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	(On Behalf of the Compensation Committee)  	 	 

3

 

	 	 	 	 	 

          I hereby acknowledge receipt of a copy of the foregoing stock option and, having read it
hereby signify my understanding of, and my agreement with, its terms and conditions.

	 	 	 

	 

	 	(Date)
	 
	 	 
	 

(Signature)

	 	 

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ATTACHMENT A TO STOCK OPTION AGREEMENT

Confidentiality And Noninterference

     a. You covenant and agree that, in consideration of the grant to you of this stock
option, you will not, during your employment with the Company or at any tine for two (2) years
thereafter (except trade secrets shall be further protected so long as they remain trade secrets),
directly or indirectly, disclose, communicate or divulge to any individual or entity, or use for
the benefit of any individual or entity, any knowledge or information with respect to the conduct
or details of the Company’s business which you, acting reasonably, believe or should believe to be
of a confidential nature and the disclosure of which not to be in the Company’s interest. You
agree that all work performed by you for the Company is the sole property of the Company and the
Company is the sole owner of all the results and proceeds of your services for the Company.
Information of a confidential nature shall specifically include, without limitation, client lists,
pricing information, software, trade secrets, business methods and know how, employee, and
contractor lists and contact information, and information about costs, markets, sales, product and
technical and business processes.

     b. In consideration of the grant to you of this stock option, you will not, during
your employment and for a period of two (2) years thereafter, directly or indirectly, whether as an
employee, owner, partner, consultant, agent, director, officer, shareholder or in any other
capacity, engage in or be employed by any prohibited business in your territory. For purposes of
the foregoing, a prohibited business means the medical transcription processing services and
dictation business and your territory means the geographic territory in which you had business
dealings while employed by the Company. If you are a Georgia resident, the foregoing shall only
apply to the extent you perform duties and activities similar to those you performed for the
company within 100 miles of Atlanta, Georgia.

     c. You covenant and agree that, in consideration of the grant to you of this stock
option, you will not, for a period of two years after your employment with the Company ceases for
any reason whatsoever (whether voluntary or not), except with the express prior written consent of
the Company, directly or indirectly, whether as employee, owner, partner, consultant, agent,
director, officer, shareholder or in any other capacity, for your own account or for the benefit of
any individual or entity, (i) solicit any customer of the Company with whom you had dealing while
employed by the Company for business which would result in such customer terminating their
relationship with the Company, or (ii) hire or engage, or solicit or induce any individual or
entity which is an employee or contractor of the Company with whom you had dealings while employed
by the Company to leave the Company or to otherwise terminate their relationship with the Company.

     d. The parties agree that any breach by you of any of the covenants or agreements
contained in this Attachment A will result in irreparable injury to the Company for which money
damages could not adequately compensate the Company and therefore, in the event of any such breach,
the Company shall be entitled (in addition to any other rights and remedies which it may have at
law or in equity) to have an injunction issued by any competent court enjoining and restraining you
and/or any other individual or entity involved therein from continuing such

5

 

breach. The existence of any claim or cause of action which you may have against the Company or
any other individual or entity shall not constitute a defense or bar to the enforcement of such
covenants. If the Company is obliged to resort to the courts for the enforcement of any of the
covenants or agreement contained in this Attachment A or if such covenant. or agreements are
otherwise the subject of litigation between the parties, and the Company prevails in such
enforcement or litigation, then the term of such covenants and agreements shall be extended for a
period of time equal to the period of such breach, which extension shall commence on the later of
(a) the date on which the original (unextended) term of such covenants and agreements is scheduled
to terminate or (b) the date of the final court order (without further right of appeal) enforcing
such covenant or agreement.

     e. If any portion of the Covenants or agreements contained in this Attachment A,
or the application hereof, is construed to be invalid or unenforceable, the other portions of such
covenant(s) or agreement(s), or the application thereof shall not be affected and shall be given
full force and effect without regard to the invalid or enforceable portions to the fullest extant
possible. If any covenant or agreement in this Attachment A is held unenforceable because of the
area covered, the duration thereof, or the scope thereof, then the court making such determination
shall have the power to reduce the area and/or duration and/or limit the scope thereof, and the
covenant or agreement shall then be enforceable in its reduced form.

     f. For purposes of this Attachment A, the term “the Company” shall include the
Company, any successor to the Company and all present and future direct and indirect subsidiaries
and affiliates of the Company.

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