Document:

Exhibit 4.4

 

CARDINAL FINANCIAL CORPORATION

 

2002 EQUITY COMPENSATION PLAN

 

(as
amended and restated effective April 21, 2006)

 

 

CARDINAL FINANCIAL
CORPORATION

2002 Equity Compensation
Plan

As Amended and Restated
Effective April 21, 2006

 

Table of Contents

 

	
  ARTICLE I DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.01.

  	
  Administrator

  	
  1

  
	
  1.02.

  	
  Agreement

  	
  1

  
	
  1.03.

  	
  Award

  	
  1

  
	
  1.04.

  	
  Board

  	
  1

  
	
  1.05.

  	
  Change in
  Control

  	
  1

  
	
  1.06.

  	
  Change in
  Control Price

  	
  1

  
	
  1.07.

  	
  Code

  	
  2

  
	
  1.08.

  	
  Committee

  	
  2

  
	
  1.09.

  	
  Common Stock

  	
  2

  
	
  1.10.

  	
  Control
  Change Date

  	
  2

  
	
  1.11.

  	
  Corporation

  	
  2

  
	
  1.12.

  	
  Corresponding
  SAR

  	
  2

  
	
  1.13.

  	
  Exchange Act

  	
  2

  
	
  1.14.

  	
  Fair Market
  Value

  	
  2

  
	
  1.15.

  	
  Incentive
  Stock Option

  	
  2

  
	
  1.16.

  	
  Initial
  Value

  	
  3

  
	
  1.17.

  	
  Non-Qualified
  Stock Option

  	
  3

  
	
  1.18.

  	
  Option

  	
  3

  
	
  1.19.

  	
  Participant

  	
  3

  
	
  1.20.

  	
  Performance
  Shares

  	
  3

  
	
  1.21.

  	
  Plan

  	
  3

  
	
  1.22.

  	
  SAR

  	
  3

  
	
  1.23.

  	
  Stock Award

  	
  3

  
	
  1.24.

  	
  Stock Unit

  	
  4

  
	
  1.25.

  	
  Subsidiary

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II PURPOSES

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE III ADMINISTRATION

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV ELIGIBILITY

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE V STOCK SUBJECT TO PLAN

  	
  8

  
	
   

  	
   

  	
   

  
	
  5.01.

  	
  Shares
  Issued

  	
  8

  
	
  5.02.

  	
  Aggregate
  Limit

  	
  8

  
	
  5.03.

  	
  Reallocation
  of Shares

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI OPTIONS

  	
  9

  
	
   

  	
   

  	
   

  
	
  6.01.

  	
  Award

  	
  9

  

 

i

 

 

	
  6.02.

  	
  Option Price

  	
  9

  
	
  6.03.

  	
  Maximum
  Option Period

  	
  9

  
	
  6.04.

  	
  Nontransferability

  	
  9

  
	
  6.05.

  	
  Transferable
  Options

  	
  9

  
	
  6.06.

  	
  Employee
  Status

  	
  10

  
	
  6.07.

  	
  Exercise

  	
  10

  
	
  6.08.

  	
  Payment

  	
  10

  
	
  6.09.

  	
  Change in
  Control

  	
  10

  
	
  6.10.

  	
  Shareholder
  Rights

  	
  11

  
	
  6.11.

  	
  Disposition
  of Stock

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII SARS

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.01.

  	
  Award

  	
  12

  
	
  7.02.

  	
  Maximum SAR
  Period

  	
  12

  
	
  7.03.

  	
  Nontransferability

  	
  12

  
	
  7.04.

  	
  Transferable
  SARs

  	
  12

  
	
  7.05.

  	
  Exercise

  	
  13

  
	
  7.06.

  	
  Change in
  Control

  	
  13

  
	
  7.07.

  	
  Employee
  Status

  	
  13

  
	
  7.08.

  	
  Settlement

  	
  13

  
	
  7.09.

  	
  Shareholder
  Rights

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII STOCK AWARDS

  	
  15

  
	
   

  	
   

  	
   

  
	
  8.01.

  	
  Award

  	
  15

  
	
  8.02.

  	
  Vesting

  	
  15

  
	
  8.03.

  	
  Employee
  Status

  	
  15

  
	
  8.04.

  	
  Change in
  Control

  	
  15

  
	
  8.05.

  	
  Shareholder
  Rights

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX PERFORMANCE SHARE AWARDS

  	
  17

  
	
   

  	
   

  	
   

  
	
  9.01.

  	
  Award

  	
  17

  
	
  9.02.

  	
  Earning the
  Award

  	
  17

  
	
  9.03.

  	
  Payment

  	
  17

  
	
  9.04.

  	
  Shareholder
  Rights

  	
  17

  
	
  9.05.

  	
  Nontransferability

  	
  17

  
	
  9.06.

  	
  Transferable
  Performance Shares

  	
  18

  
	
  9.07.

  	
  Employee
  Status

  	
  18

  
	
  9.08.

  	
  Change in
  Control

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE X STOCK UNITS

  	
  19

  
	
   

  	
   

  	
   

  
	
  10.01.

  	
  Award

  	
  19

  

 

ii

 

 

	
  10.02.

  	
  Earning the
  Award

  	
  19

  
	
  10.03.

  	
  Payment

  	
  19

  
	
  10.04.

  	
  Nontransferability

  	
  19

  
	
  10.05.

  	
  Shareholder
  Rights

  	
  19

  
	
  10.06.

  	
  Change in
  Control

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI ADJUSTMENT UPON CHANGE IN COMMON STOCK

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII GENERAL PROVISIONS

  	
  23

  
	
   

  	
   

  	
   

  
	
  13.01.

  	
  Effect on
  Employment and Service

  	
  23

  
	
  13.02.

  	
  Unfunded
  Plan

  	
  23

  
	
  13.03.

  	
  Rules of
  Construction

  	
  23

  
	
  13.04.

  	
  Tax
  Withholding

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV AMENDMENT

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV DURATION OF PLAN

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI EFFECTIVE DATE OF PLAN

  	
  26

  

 

iii

 

 

ARTICLE I

DEFINITIONS

 

1.01.                     Administrator

 

Administrator
means the Committee and any delegate of the Committee that is appointed in
accordance with Article III. 
Notwithstanding the preceding sentence, “Administrator” means the Board
on any date on which there is not a Committee.

 

1.02.                     Agreement

 

Agreement
means a written agreement (including any amendment or supplement thereto)
between the Corporation and a Participant specifying the terms and conditions
of an Award granted to such Participant.

 

1.03.                     Award

 

Award means an
award of Performance Shares, a Stock Award, Stock Unit, Option or SAR granted
to a Participant.

 

1.04.                     Board

 

Board means
the Board of Directors of the Corporation.

 

1.05.                     Change in
Control

 

Change in
Control means a change in control of the Corporation of a nature that would be
required to be reported (assuming such event has not been previously reported)
in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under
the Exchange Act (or a successor provision thereto), provided
that, without limitation, a Change in Control shall be deemed to have occurred
at such time after May 29, 2002 as (i) any “person”, within the meaning of
Section 14(d) of the Exchange Act, becomes the beneficial owner, directly or
indirectly, of securities of the Corporation representing 50% or more of the
combined voting power of the Corporation’s then outstanding securities, or (ii)
during any period of two consecutive years, individuals who at the beginning of
such period constitute the Board of Directors cease for any reason to
constitute at least a majority thereof unless the election or the nomination
for election, by the Corporation’s shareholders, of each new director was
approved by a vote of at least two-thirds of the directors then still in office
who were directors at the beginning of the period.

 

1.06.                     Change in
Control Price

 

Change in
Control Price means the higher of (i) the mean of the high and low trading
prices for the Corporation’s Common Stock on the Stock Exchange on the date of
determination of the Change in Control or (ii) the higher price per share
actually paid for the Common Stock in connection with the Change in Control of
the Corporation.

 

1

 

 

1.07.                     Code

 

Code means the
Internal Revenue Code of 1986, and any amendments thereto.

 

1.08.                     Committee

 

Committee
means the Compensation Committee of the Board.

 

1.09.                     Common
Stock

 

Common Stock
means the common stock of the Corporation.

 

1.10.                     Control
Change Date

 

Control Change
Date means the date on which a Change in Control occurs.  If a Change in Control occurs on account of a
series of transactions, the Control Change Date is the date of the last of such
transactions.

 

1.11.                     Corporation

 

Corporation
means Cardinal Financial Corporation.

 

1.12.                     Corresponding
SAR

 

Corresponding
SAR means an SAR that is granted in relation to a particular Option and that
can be exercised only upon the surrender to the Corporation, unexercised, of
that portion of the Option to which the SAR relates.

 

1.13.                     Exchange
Act

 

Exchange Act
means the Securities Exchange Act of 1934, as amended from time to time.

 

1.14.                     Fair
Market Value

 

Fair Market Value
means, on any given date, the reported “closing” price of a share of Common
Stock on the NASDAQ National Market System or the Principal Stock Exchange on
which the Common Stock is traded, or if the Common Stock was not so traded on
such day, then on the next preceding day that the Common Stock was so traded.

 

1.15.                     Incentive
Stock Option

 

Incentive
Stock Option means an Option which qualifies and is intended to qualify as an
Incentive Stock Option under Section 422 of the Code.

 

2

 

 

1.16.                     Initial
Value

 

Initial Value
means, with respect to a Corresponding SAR, the Option price per share of the
related Option and, with respect to an SAR granted independently of an Option,
the price per share of Common Stock as determined by the Administrator on the
date of the grant; provided, however, that the price per share of Common Stock
encompassed by the grant of an SAR shall not be less than the Fair Market Value
on the date of grant.

 

1.17.                     Non-Qualified
Stock Option

 

Non-Qualified
Stock Option means an Option other than an Incentive Stock Option.

 

1.18.                     Option

 

Option means a
stock option that entitles the holder to purchase from the Corporation a stated
number of shares of Common Stock at the price set forth in an Agreement.

 

1.19.                     Participant

 

Participant means a key employee of the Corporation or a
Subsidiary or a member of the Board or the board of directors of a Subsidiary
or a consultant to the Corporation or a Subsidiary who satisfies the
requirements of Article IV and is selected by the Administrator to receive an
Award.

 

1.20.                     Performance
Shares

 

Performance
Shares means an Award, in the amount determined by the Administrator and
specified in an Agreement, stated with reference to a specified number of
shares of Common Stock, that entitles the holder to receive a payment for each
specified share equal to the Fair Market Value of Common Stock on the date of
payment.

 

1.21.                     Plan

 

Plan means the
Cardinal Financial Corporation 2002 Equity Compensation Plan.

 

1.22.                     SAR

 

SAR means a
stock appreciation right that entitles the holder to receive, with respect to
each share of Common Stock encompassed by the exercise of such SAR, the excess,
if any, of the Fair Market Value at the time of exercise over the Initial
Value.  References to “SARs” include both
Corresponding SARs and SARs granted independently of Options, unless the
context requires otherwise.

 

1.23.                     Stock
Award

 

Stock Award
means Common Stock awarded to a Participant under Article VIII.

 

3

 

 

1.24.                     Stock Unit

 

Stock Unit
means an Award, in an amount determined by the Administrator and specified in
an Agreement, stated with reference to a specified number of shares of Common
Stock, that entitled the holder to receive a payment for each Stock Unit equal
to the Fair Market Value of a share of Common Stock on the date of payment.

 

1.25.                     Subsidiary

 

Subsidiary
means a Corporation or other business entity that the Corporation directly or
indirectly, through one or more intermediaries, controls fifty percent (50%) or
more of the voting equity of such corporation.

 

4

 

 

ARTICLE II

PURPOSES

 

The Plan is
intended to assist the Corporation and Subsidiaries in recruiting and retaining
individuals with ability and initiative by enabling such persons to participate
in the future success of the Corporation and its Subsidiaries and to associate
their interests with those of the Corporation and its shareholders.  The Plan is intended to permit the grant of
Incentive Stock Options and Non-Qualified Stock Options, and the grant of SARs,
Stock Awards, Stock Units and Performance Shares.  No Option that is intended to be an Incentive
Stock Option shall be invalid for failure to qualify as an Incentive Stock
Option.  The proceeds received by the
Corporation from the sale of Common Stock pursuant to this Plan shall be used
for general corporate purposes.

 

5

 

 

ARTICLE III

ADMINISTRATION

 

The Plan shall
be administered by the Administrator. 
The Administrator shall have authority to grant Awards upon such terms
(not inconsistent with the provisions of this Plan), as the Administrator may
consider appropriate.  Such terms may
include conditions (in addition to those contained in this Plan) on the
exercisability of all or any part of an Option or SAR or on the transferability
or forfeitability of a Stock Award or an award of Performance Shares or Stock
Units, including by way of example and not of limitation, requirements that the
Participant complete a specified period of employment or service with the
Corporation or a Subsidiary, requirements that the Corporation achieve a
specified level of financial performance or that the Corporation achieve a
specified level of financial return. 
Notwithstanding any such conditions, the Administrator may, in its
discretion, accelerate the time at which any Option or SAR may be exercised, or
the time at which a Stock Award may become transferable or nonforfeitable or
both, or the time at which an award of Performance Shares or Stock Units may be
settled.  In addition, the Administrator
shall have complete authority to interpret all provisions of this Plan; to
prescribe the form of Agreements; to adopt, amend, and rescind rules and
regulations pertaining to the administration of the Plan; and to make all other
determinations necessary or advisable for the administration of this Plan.  The express grant in the Plan of any specific
power to the Administrator shall not be construed as limiting any power or
authority of the Administrator.  Any
decision made, or action taken, by the Administrator in connection with the
administration of this Plan shall be final and conclusive.  Neither the Administrator nor any member of
the Committee shall be liable for any act done in good faith with respect to
this Plan or any Agreement or Award.  All
expenses of administering this Plan shall be borne by the Corporation, a
Subsidiary or a combination thereof.

 

The Committee,
in its discretion, may delegate to one or more officers of the Corporation all
or part of the Committee’s authority and duties with respect to grants and awards
to individuals who are not subject to the reporting and other provisions of
Section 16 of the Exchange Act.  The
Committee may revoke or amend the terms of a delegation at any time but such
action shall not invalidate any prior actions of the Committee’s delegate or
delegates that were consistent with the terms of the Plan.

 

6

 

 

ARTICLE IV

ELIGIBILITY

 

Any key
employee of the Corporation, any member of the Board, any employee or director
of a Subsidiary (including a corporation that becomes a Subsidiary after the
adoption of this Plan), or any consultant or advisor to the Company or a
Subsidiary is eligible to participate in this Plan if the Administrator, in its
sole discretion, determines that such person has contributed or can be expected
to contribute to the profits or growth of the Corporation or a Subsidiary.

 

7

 

 

ARTICLE V

STOCK SUBJECT TO PLAN

 

5.01.                     Shares
Issued

 

Upon the award
of shares of Common Stock pursuant to a Stock Award or in settlement of an
award of Stock Units or Performance Shares, the Corporation may issue shares of
Common Stock from its authorized but unissued Common Stock.  Upon the exercise of any Option or SAR the
Corporation may deliver to the Participant (or the Participant’s broker if the
Participant so directs), shares of Common Stock from its authorized but
unissued Common Stock.

 

5.02.                     Aggregate
Limit

 

The maximum
aggregate number of shares of Common Stock that may be issued under this Plan,
pursuant to the exercise of SARs and Options, the grant of Stock Awards and the
settlement of Performance Shares or Stock Units is 2,420,000 shares.  The maximum aggregate number of Shares that
may be issued under this Plan as Options is 2,420,000.  The maximum
aggregate number of shares that may be issued under this Plan and the maximum
number of shares that may be issued pursuant to the exercise of Options shall
be subject to adjustment as provided in Article XI.

 

5.03.                     Reallocation
of Shares

 

If an Option
is terminated, in whole or in part, for any reason other than its exercise or
the exercise of a Corresponding SAR, the number of shares of Common Stock
allocated to the Option or portion thereof may be reallocated to other Awards
to be granted under this Plan.  If an SAR
is terminated, in whole or in part, for any reason other than its exercise or
the exercise of a related Option, the number of shares of Common Stock
allocated to the SAR or portion thereof may be reallocated to other Awards to
be granted under this Plan.  If Stock
Unit or an award of Performance Shares is terminated, in whole or in part, the
number of shares of Common Stock allocated to the Stock Unit or Performance
Shares, or portion thereof, may be reallocated to other Awards to be granted
under this Plan.  If a Stock Award is
forfeited or terminated, in whole or in part, for any reason, the number of
shares of Common Stock allocated to the Stock Award or portion thereof may be
reallocated to other Awards to be granted under this Plan.  If shares of Common Stock are surrendered or
withheld in satisfaction of tax withholding requirements the number of shares
surrendered or withheld may be reallocated to other Awards to be granted under
this Plan.

 

8

 

 

ARTICLE VI

OPTIONS

 

6.01.                     Award

 

In accordance
with the provisions of Article IV, the Administrator will designate each
individual to whom an Option is to be granted and will specify the number of
shares of Common Stock covered by each such award.

 

6.02.                     Option
Price

 

The price per
share for Common Stock purchased on the exercise of an Option shall be
determined by the Administrator on the date of grant, but shall not be less
than the Fair Market Value on the date the Option is granted.  Except for an adjustment authorized under
Article XII, the Option price may not be reduced (by amendment or cancellation
of the Option or otherwise) after the date of grant.

 

6.03.                     Maximum
Option Period

 

The maximum
period in which an Option may be exercised shall be ten years from the date
such Option was granted.  The terms of
any Option may provide that it has a term that is less than such maximum
period.

 

6.04.                     Nontransferability

 

Except as
provided in Section 6.05, each Option granted under this Plan shall be
nontransferable except by will or by the laws of descent and distribution.  In the event of any transfer of an Option (by
the Participant or his transferee), the Option and any Corresponding SAR that
relates to such Option must be transferred to the same person or persons or
entity or entities.  Except as provided
in Section 6.05, during the lifetime of the Participant to whom the Option is
granted, the Option may be exercised only by the Participant.  No right or interest of a Participant in any
Option shall be liable for, or subject to, any lien, obligation, or liability
of such Participant.

 

6.05.                     Transferable
Options

 

Section 6.04 to the contrary notwithstanding, and if the Agreement
provides, a Non-Qualified Stock Option may be transferred by a Participant to
the Participant’s children, grandchildren, spouse, one or more trusts for the
benefit of such family members or a partnership in which such family members
are the only partners, on such terms and conditions as may be permitted under
Securities Exchange Commission Rule 16b-3 as in effect from time to time.  The holder of an Option transferred pursuant
to this section shall be bound by the same terms and conditions that governed
the Option during the period that it was held by the Participant; provided,
however, that such transferee may not transfer the Option except by will or the
laws of descent and distribution.  In the
event of any transfer of an Option (by the Participant or his

 

9

 

 

transferee),
the Option and any Corresponding SAR that relates to such Option must be
transferred to the same person or persons or entity or entities.

 

6.06.                     Employee
Status

 

For purposes
of determining the applicability of Section 422 of the Code (relating to
Incentive Stock Options), or in the event that the terms of any Option provide
that it may be exercised only during employment or continued service or within
a specified period of time after termination of employment or service, the
Administrator may decide to what extent leaves of absence for governmental or
military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of continuous employment or service.

 

6.07.                     Exercise

 

Subject to the
provisions of this Plan and the applicable Agreement, an Option may be
exercised in whole at any time or in part from time to time at such times and
in compliance with such requirements as the Administrator shall determine;
provided, however, that Incentive Stock Options (granted under the Plan and all
plans of the Corporation and its Related Entities) may not be first exercisable
in a calendar year for stock having a Fair Market Value (determined as of the
date an Option is granted) exceeding the limit prescribed by Section 422(d) of
the Code.  An Option granted under this
Plan may be exercised with respect to any number of whole shares less than the
full number for which the Option could be exercised.  A partial exercise of an Option shall not
affect the right to exercise the Option from time to time in accordance with
this Plan and the applicable Agreement with respect to the remaining shares
subject to the Option.  The exercise of
an Option shall result in the termination of any Corresponding SAR to the
extent of the number of shares with respect to which the Option is exercised.

 

6.08.                     Payment

 

Unless
otherwise provided by the Agreement, payment of the Option price shall be made
in cash or a cash equivalent acceptable to the Administrator.  Subject to rules established by the
Administrator, payment of all or part of the Option price may be made with
shares of Common Stock which have been owned by the Participant for at least
six months and which have not been used for another Option exercise during the
prior six months.  If Common Stock is
used to pay all or part of the Option price, the sum of the cash and cash
equivalent and the Fair Market Value (determined as of the day preceding the
date of exercise) of the shares surrendered must not be less than the Option
price of the shares for which the Option is being exercised.

 

6.09.                     Change in
Control

 

Section 6.07 to the contrary notwithstanding, each outstanding Option
shall be fully exercisable (in whole or in part at the discretion of the
holder) upon a Change in Control and in the discretion of the Committee, (i)
the Options shall be assumed, or an equivalent option substituted, by any
successor corporation to the Corporation, or (ii) the Corporation shall make
provisions for the Participant to exercise the Options for a minimum of ten (10)
days prior to the

 

10

 

 

Change in Control as to all shares subject to the Options.  An Option that becomes exercisable pursuant
to this Section 6.09 shall remain exercisable thereafter in accordance with the
terms of the Agreement.

 

6.10.                     Shareholder
Rights

 

No Participant shall have any rights as a shareholder with
respect to shares subject to his Option until the date of exercise of such
Option.

 

6.11.                     Disposition
of Stock

 

A Participant shall notify the Corporation of any sale or
other disposition of Common Stock acquired pursuant to an Option that was an
Incentive Stock Option if such sale or disposition occurs (i) within two
years of the grant of an Option or (ii) within one year of the issuance of
the Common Stock to the Participant. 
Such notice shall be in writing and directed to the Secretary of the
Corporation.

 

11

 

 

ARTICLE VII

SARS

 

7.01.                     Award

 

In accordance
with the provisions of Article IV, the Administrator will designate each
individual to whom SARs are to be granted and will specify the number of shares
covered by each such award.  No
Participant may be granted Corresponding SARs (under all Incentive Stock Option
plans of the Corporation and its Affiliates) that are related to Incentive
Stock Options which are first exercisable in any calendar year for stock having
an aggregate Fair Market Value (determined as of the date the related Option is
granted) that exceeds the limit prescribed by Section 422(d) of the Code.

 

7.02.                     Maximum
SAR Period

 

The maximum
period in which an SAR may be exercised shall be ten years from the date such
SAR was granted.  The terms of any SAR
may provide that it has a term that is less than such maximum period.

 

7.03.                     Nontransferability

 

Except as
provided in Section 7.04, each SAR granted under this Plan shall be
nontransferable except by will or by the laws of descent and distribution.  In the event of any such transfer, a
Corresponding SAR and the related Option must be transferred to the same person
or persons or entity or entities.  Except
as provided in Section 7.04, during the lifetime of the Participant to whom the
SAR is granted, the SAR may be exercised only by the Participant.  No right or interest of a Participant in any
SAR shall be liable for, or subject to, any lien, obligation, or liability of
such Participant.

 

7.04.                     Transferable
SARs

 

Section 7.03 to the contrary notwithstanding, if the Agreement
provides, an SAR, other than a Corresponding SAR that is related to an
Incentive Stock Option, may be transferred by a Participant to the
Participant’s children, grandchildren, spouse, one or more trusts for the
benefit of such family members or a partnership in which such family members
are the only partners, on such terms and conditions as may be permitted under
Securities Exchange Commission Rule 16b-3 as in effect from time to time.  The holder of an SAR transferred pursuant to
this section shall be bound by the same terms and conditions that governed the
SAR during the period that it was held by the Participant; provided, however,
that such transferee may not transfer the SAR except by will or the laws of
descent and distribution.  In the event
of any transfer of a Corresponding SAR (by the Participant or his transferee),
the Corresponding SAR and the related Option must be transferred to the same
person or person or entity or entities.

 

12

 

 

7.05.                     Exercise

 

Subject to the
provisions of this Plan and the applicable Agreement, an SAR may be exercised
in whole at any time or in part from time to time at such times and in
compliance with such requirements as the Administrator shall determine;
provided, however, that a Corresponding SAR that is related to an Incentive
Stock Option may be exercised only to the extent that the related Option is
exercisable and only when the Fair Market Value exceeds the option price of the
related Option.  An SAR granted under
this Plan may be exercised with respect to any number of whole shares less than
the full number for which the SAR could be exercised.  A partial exercise of an SAR shall not affect
the right to exercise the SAR from time to time in accordance with this Plan
and the applicable Agreement with respect to the remaining shares subject to
the SAR.  The exercise of a Corresponding
SAR shall result in the termination of the related Option to the extent of the
number of shares with respect to which the SAR is exercised.

 

7.06.                     Change in
Control

 

Section 7.05
to the contrary notwithstanding, each outstanding SAR shall be fully
exercisable (in whole or in part at the discretion of the holder) upon a Change
in Control and (i) the Corporation shall make payment to Participants with
respect to SARs in cash in an amount equal to the appreciation in value of the
SAR from the Initial Value to the price as of the date of the Change in
Control; (ii) such cash payments to Participants shall be due and payable, and
shall be paid by the Corporation, immediately upon the occurrence of such
Change in Control; and (iii) after the payment provided for in (ii) above,
Participants shall have no further rights under SARs outstanding at the time of
such Change in Control.

 

7.07.                     Employee
Status

 

If the terms
of any SAR provide that it may be exercised only during employment or continued
service or within a specified period of time after termination of employment or
service, the Administrator may decide to what extent leaves of absence for
governmental or military service, illness, temporary disability or other
reasons shall not be deemed interruptions of continuous employment or service.

 

7.08.                     Settlement

 

At the
Administrator’s discretion, the amount payable as a result of the exercise of
an SAR may be settled in cash, Common Stock, or a combination of cash and
Common Stock.  No fractional share will
be deliverable upon the exercise of an SAR but a cash payment will be made in
lieu thereof.

 

13

 

 

7.09.                     Shareholder
Rights

 

No Participant shall, as a result of receiving an SAR, have
any rights as a shareholder of the Corporation until the date that the SAR is
exercised and then only to the extent that the SAR is settled by the issuance
of Common Stock.

 

14

 

 

ARTICLE VIII

STOCK AWARDS

 

8.01.                     Award

 

In accordance
with the provisions of Article IV, the Administrator will designate each
individual to whom a Stock Award is to be made and will specify the number of
shares of Common Stock covered by each such award.

 

8.02.                     Vesting

 

The
Administrator, on the date of the award, may prescribe that a Participant’s
rights in a Stock Award shall be forfeitable or otherwise restricted for a
period of time or subject to such conditions as may be set forth in the
Agreement.  By way of example and not of
limitation, the restrictions may postpone transferability of the shares or may
provide that the shares will be forfeited if the Participant separates from the
service of the Corporation and its Subsidiaries before the expiration of a stated
period or if the Corporation, a Subsidiary, the Corporation and its
Subsidiaries or the Participant fails to achieve stated performance
objectives.  The Administrator, in its
discretion, may waive the requirements for vesting or transferability for all
or part of the shares subject to a Stock Award in connection with a
Participant’s termination of employment or service.

 

8.03.                     Employee
Status

 

In the event
that the terms of any Stock Award provide that shares may become transferable
and nonforfeitable thereunder only after completion of a specified period of
employment or service, the Administrator may decide in each case to what extent
leaves of absence for governmental or military service, illness, temporary
disability, or other reasons shall not be deemed interruptions of continuous
employment or service.

 

8.04.                     Change in
Control

 

Sections 8.02 and 8.03 to the contrary notwithstanding, each
outstanding Stock Award shall be transferable and nonforfeitable upon a Change
in Control, except that if, upon the advice of counsel to the Corporation,
shares of Common Stock cannot lawfully be issued without restriction, then the
Corporation shall make payment to Participants in cash in an amount equal to
the Change in Control Price of the Common Stock that otherwise would have been
issued; and (i) such cash payments to Participants shall be due and payable,
and shall be paid by the Corporation, immediately upon the occurrence of such
Change in Control; and (ii) after the payment provided for in (i) above,
Participants shall have no further rights under Stock Awards outstanding at the
time of such Change in Control of the Corporation.

 

15

 

 

8.05.                     Shareholder
Rights

 

Prior to their
forfeiture (in accordance with the applicable Agreement and while the shares of
Common Stock granted pursuant to the Stock Award may be forfeited or are
nontransferable), and if the Agreement so provides, a Participant will have all
the rights of a shareholder with respect to a Stock Award, including the right
to receive dividends and vote the shares; provided, however, that during such
period (i) a Participant may not sell, transfer, pledge, exchange, hypothecate,
or otherwise dispose of shares of Common Stock granted pursuant to a Stock
Award, (ii) the Corporation shall retain custody of the certificates evidencing
shares of Common Stock granted pursuant to a Stock Award, and (iii) the
Participant will deliver to the Corporation a stock power, endorsed in blank,
with respect to each Stock Award.  The
limitations set forth in the preceding sentence shall not apply after the
shares of Common Stock granted under the Stock Award are transferable and are
no longer forfeitable.

 

16

 

 

ARTICLE IX

PERFORMANCE SHARE AWARDS

 

9.01.                     Award

 

In accordance
with the provisions of IV, the Administrator will designate each individual to
whom an Award of Performance Shares is to be made and will specify the number
of shares of Common Stock covered by each such Award.

 

9.02.                     Earning
the Award

 

The
Administrator, on the date of the grant of an Award, shall prescribe that the
Performance Shares, or a portion thereof, will be earned, and the Participant
will be entitled to receive payment pursuant to the Award of Performance Shares,
only upon the satisfaction of performance objectives or such other criteria as
may be prescribed by the Administrator and set forth in the Agreement. By way
of example and not of limitation, the performance objectives or other criteria
may provide that the Performance Shares will be earned only if the Participant
remains in the employ or service of the Corporation or a Subsidiary for a
stated period or that the Corporation, a Subsidiary, the Corporation and its
Subsidiaries or the Participant achieve stated objectives.  Notwithstanding the preceding sentences of
this Section 9.02, the Administrator, in its discretion, may reduce the
duration of the performance period and may adjust the performance objectives
for outstanding Performance Shares in connection with a Participant’s
termination of employment or service.

 

9.03.                     Payment

 

In the
discretion of the Administrator, the amount payable when an Award of
Performance Shares is earned may be settled in cash, by the issuance of Common
Stock or a combination of cash and Common Stock.  A fractional share shall not be deliverable
when an Award of Performance Shares is earned, but a cash payment will be made
in lieu thereof.

 

9.04.                     Shareholder
Rights

 

No Participant shall, as a result of receiving an Award of Performance
Shares, have any rights as a shareholder until and to the extent that the Award
of Performance Shares is earned and settled by the issuance of Common
Stock.  After an Award of Performance
Shares is earned, if settled completely or partially in Common Stock, a
Participant will have all the rights of a shareholder with respect to such
Common Stock.

 

9.05.                     Nontransferability

 

Except as
provided in Section 9.06, Performance Shares granted under this Plan shall be
nontransferable except by will or by the laws of descent and distribution.  No right or interest of a Participant in any
Performance Shares shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

 

17

 

 

9.06.                     Transferable
Performance Shares

 

Section 9.05 to the contrary notwithstanding, if the Agreement
provides, an Award of Performance Shares may be transferred by a Participant to
the Participant’s children, grandchildren, spouse, one or more trusts for the
benefit of such family members or a partnership in which such family members
are the only partners, on such terms and conditions as may be permitted under
Securities Exchange Commission Rule 16b-3 as in effect from time to time.  The holder of Performance Shares transferred
pursuant to this section shall be bound by the same terms and conditions that
governed the Performance Shares during the period that they were held by the
Participant; provided, however that such transferee may not transfer
Performance Shares except by will or the laws of descent and distribution.

 

9.07.                     Employee
Status

 

In the event
that the terms of any Performance Share Award provide that no payment will be
made unless the Participant completes a stated period of employment or service,
the Administrator may decide to what extent leaves of absence for government or
military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of continuous employment or service.

 

9.08.                     Change in
Control

 

Section 9.02
to the contrary notwithstanding, each outstanding Performance Share Award shall
be earned upon a Change in Control and Participants shall be entitled to a
pro-rata portion of their Performance Share Award, calculated by multiplying
the total Award by a fraction, the numerator of which is the number of months
elapsed in the performance period (as defined in the Agreement) and the
denominator of which is the total length of the performance period defined in
the Agreement.  The amount payable for
Performance Shares that are earned pursuant to this Section 9.08 shall be
settled in cash or Common Stock or a combination of cash and Common Stock as
determined by the Administrator in its discretion as soon as practicable after
the Change in Control Date.

 

18

 

 

ARTICLE X

STOCK UNITS

 

10.01.              Award

 

In accordance
with the provisions of Article IV, the Administrator will designate individual
to whom an Award of Stock Units is to be made and will specify the number of
Stock Units covered by such Awards.

 

10.02.              Earning the Award

 

The
Administrator, on the date of grant of the Award, may prescribe that the Stock
Units or a portion thereof, will be earned only upon, and the Participant will
be entitled to receive a payment pursuant to the Award of Stock Units, only
upon the satisfaction of performance objectives or such other criteria as may
be prescribed by the Administrator and set forth in the Agreement.  By way of example and not of limitation, the
performance objectives or other criteria may provide that the Stock Units will
be earned only if the Participant remains in the employ or service of the
Corporation or a Subsidiary for a stated period or that the Corporation, a
Subsidiary, the Corporation and its Subsidiaries or the Participant achieve
stated objectives.  Notwithstanding the
preceding sentences of this Section 10.02, the Administrator, in its
discretion, may reduce the duration of the performance period and may adjust
the performance objectives for outstanding Stock Units in connection with a
Participant’s termination of employment or service.

 

10.03.              Payment

 

In accordance
with the Agreement, the amount payable when an award of Stock Units is earned
may be settled in cash, Common Stock or a combination of cash and Common
Stock.  A fractional share shall not be
deliverable when an Award of Stock Units is earned, but a cash payment will be
made in lieu thereof.

 

10.04.              Nontransferability

 

A Participant
may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of
a Stock Unit Award other than by will or the laws of descent and
distribution.  The limitations set forth
in the preceding sentence shall not apply to Common Stock issued as payment
pursuant to a Stock Unit Award.

 

10.05.              Shareholder
Rights

 

No Participant
shall, as a result of receiving a Stock Unit Award, have any rights as a
shareholder of the Company or Subsidiary until and to the extent that the Stock
Units are earned and settled in shares of Common Stock.  After Stock Units are earned and settled in
shares of Common Stock, a Participant will have all the rights of a shareholder
with respect to such shares.

 

19

 

 

10.06.              Change in Control

 

Section 10.02
to the contrary notwithstanding, each Stock Unit shall be earned in its
entirety as of a Control Change Date without regard to whether any condition to
which the award is subject have been met.

 

20

 

 

ARTICLE XI

ADJUSTMENT UPON CHANGE IN COMMON STOCK

 

The maximum
number of shares as to which Awards may be granted under this Plan; and the
terms of outstanding Awards; and the per individual limitations on the number
of shares of Common Stock for which Awards may be granted shall be adjusted as
the Committee shall determine to be equitably required in the event that (a)
the Corporation (i) effects one or more stock dividends, stock split-ups,
subdivisions or consolidations of shares or (ii) engages in a transaction to
which Section 424 of the Code applies, (b) there occurs any other event
which, in the judgment of the Committee necessitates such action or (c) there
is a Change in Control.  Any
determination made under this Article XI by the Committee shall be final
and conclusive.

 

The issuance
by the Corporation of shares of stock of any class, or securities convertible
into shares of stock of any class, for cash or property, or for labor or
services, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefore, or upon conversion of shares or obligations of the
Corporation convertible into such shares or other securities, shall not affect,
and no adjustment by reason thereof shall be made with respect to, the maximum
number of shares as to which Awards may be granted, the per individual
limitations on the number of shares of Common Stock for which Awards may be
granted or the terms of outstanding Awards.

 

The Committee
may make Awards in substitution for performance shares, phantom shares, stock
awards, stock options, stock appreciation rights, or similar awards held by an
individual who becomes an employee of the Corporation or a Subsidiary in
connection with a transaction or event described in the first paragraph of this
Article XI.  Notwithstanding any
provision of the Plan (other than the limitation of Section 5.02), the terms of
such substituted Awards shall be as the Committee, in its discretion,
determines is appropriate.

 

21

 

 

ARTICLE XII

COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES

 

No Option or
SAR shall be exercisable, no Common Stock shall be issued, no certificates for
shares of Common Stock shall be delivered, and no payment shall be made under
this Plan except in compliance with all applicable federal and state laws and
regulations (including, without limitation, withholding tax requirements), any
listing agreement to which the Corporation is a party, and the rules of all
domestic stock exchanges on which the Corporation’s shares may be listed.  The Corporation shall have the right to rely
on an opinion of its counsel as to such compliance.  Any share certificate issued to evidence
Common Stock when a Stock Award is granted, a Performance Share or Stock Unit
is settled or for which an Option or SAR is exercised may bear such legends and
statements as the Administrator may deem advisable to assure compliance with
federal and state laws and regulations. 
No Option or SAR shall be exercisable, no Stock Award, Stock Unit or
Performance Share shall be granted, no Common Stock shall be issued, no
certificate for shares shall be delivered, and no payment shall be made under
this Plan until the Corporation has obtained such consent or approval as the
Administrator may deem advisable from regulatory bodies having jurisdiction over
such matters.

 

22

 

 

ARTICLE XIII

GENERAL PROVISIONS

 

13.01.              Effect on
Employment and Service

 

Neither the
adoption of this Plan, its operation, nor any documents describing or referring
to this Plan (or any part thereof), shall confer upon any individual any right
to continue in the employ or service of the Corporation or a Subsidiary or in
any way affect any right or power of the Corporation or a Subsidiary to
terminate the employment or service of any individual at any time with or
without assigning a reason therefore.

 

13.02.              Unfunded Plan

 

The Plan,
insofar as it provides for grants, shall be unfunded, and the Corporation shall
not be required to segregate any assets that may at any time be represented by
grants under this Plan.  Any liability of
the Corporation to any person with respect to any grant under this Plan shall
be based solely upon any contractual obligations that may be created pursuant
to this Plan.  No such obligation of the
Corporation shall be deemed to be secured by any pledge of, or other
encumbrance on, any property of the Corporation.

 

13.03.              Rules of
Construction

 

Headings are
given to the articles and sections of this Plan solely as a convenience to
facilitate reference.  The reference to
any statute, regulation, or other provision of law shall be construed to refer
to any amendment to or successor of such provision of law.

 

13.04.              Tax Withholding

 

Each
Participant shall be responsible for satisfying any income and employment tax
withholding obligation attributable to participation in this Plan.  In accordance with procedures established by
the Administrator, a Participant may surrender shares of Common Stock, or
receive fewer shares of Common Stock than otherwise would be issuable, in satisfaction
of all or part of that obligation.

 

23

 

 

ARTICLE XIV

AMENDMENT

 

The Board may
amend or terminate this Plan from time to time; provided, however, that no
amendment may become effective until shareholder approval is obtained if
(i) the amendment increases the aggregate number of shares of Common Stock
that may be issued under the Plan (other than an adjustment pursuant to Article
XI) or (ii) the amendment changes the class of individuals eligible to become
Participants.  No amendment shall,
without a Participant’s consent, adversely affect any rights of such
Participant under any Award outstanding at the time such amendment is made.

 

24

 

 

ARTICLE XV

DURATION OF PLAN

 

No Awards may
be granted under this Plan more than ten years after the earlier of the date
the Plan is adopted by the Board or the date that the Plan is approved in
accordance with Article XVI.  Awards
granted before that date shall remain valid in accordance with their terms.

 

25

 

 

 

ARTICLE XVI

EFFECTIVE DATE OF PLAN

 

Options, SARs,
Stock Units and Performance Shares may be granted under this Plan upon its
adoption by the Board, provided that no Option, SAR, Stock Units or Performance
Shares shall be effective or exercisable unless this Plan is approved by a
majority of the votes cast by the Corporation’s shareholders, voting either in
person or by proxy, at a duly held shareholders’ meeting at which a quorum is
present or by unanimous consent.  Stock
Awards may be granted under this Plan, upon the later of its adoption by the
Board or its approval by shareholders in accordance with the preceding
sentence.

 

26Exhibit 4.1

      NUMBER                                                                                                                                                        SHARES

NU

	
  COMMON STOCK

  	
  ASPYRATM

  	
  COMMON
  STOCK

  
	
  INCORPORATED
  UNDER THE LAWS 

  OF THE STATE OF CALIFORNIA

  	
   

  	
  SEE REVERSE FOR
  STATEMENTS RELATING 

  TO RIGHTS, PREFERENCES, 

  PRIVILEGES AND RESTRICTIONS, IF ANY 

  C U S I P  
  04538V   10   4

   

  
	
  This Certifies that

  SPECIMEN

  is the record holder of

   

  

FULLY PAID AND
NONASSESSABLE SHARES OF COMMON STOCK, NO PAR VALUE, OF

 

	
   

  	
  ASPYRA, INC.

  	
   

  

 

transferable on the books
of the Corporation in person or by duly authorized attorney on surrender of
this certificate properly endorsed. This certificate shall not be valid until
countersigned and registered by the Transfer Agent and Registrar.

WITNESS the facsimile seal of the Corporation and the
signatures of its duly authorized officers.

Dated:

ASPYRA, INC.

INCORPORATED

APR. 23, 1973

CALIFORNIA

 

	
  /s/ Anahita Villafane

  	
  /s/ Steven M.
  Besbeck

  
	
  Secretary

  	
  Chairman

  
	
   

  	
   

  

COUNTERSIGNED AND REGISTERED:

      AMERICAN STOCK
TRANSFER & TRUST COMPANY

      (NEW YORK)

             TRANSFER
AGENT AND REGISTRAR

 

BY

                                                                AUTHORIZED
SIGNATURE

 

 

      A
statement of the rights, preferences, privileges and restrictions granted to or
imposed upon the respective classes or series of shares and upon the holders
thereof as established, from time to time, by the Articles of Incorporation of
the Corporation and by any certificate of determination, and the number of
shares constituting each class and series and the designations thereof, may be
obtained by the holder hereof upon written request and without charge from the
Secretary of the Corporation at its corporate headquarters.

      The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

	
        TEN COM -- as tenants in common

  	
  UNIF GIFT MIN ACT
  --                               
  Custodian_                             

  
	
        TEN
  ENT --  as tenants by the entireties

        JT
  TEN     --  as joint tenants with right

                               survivorship
  and not as 

                               tenants
  in common

  	
                                               
       (Cust)                                        
  (Minor)
                                         
  under Uniform Gifts to Minors
                                         
  Act                                                                         

                                                                                
  (State)

  
	
   

  	
  UNIF
  TRF MIN ACT --                              
  Custodian (until age              
  )
                                                  (Cust)

  
	
                         

  	
                                                                                      
  under Uniform Transfers
                                       
                 (Minor)

  
	
   

  	
                                          to Minors Act                                                               

                                                                                            
  (State)

  

 

 

Additional
abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED,
____________________________ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
         IDENTIFYING NUMBER OF ASSIGNEE

                                      

_______________________________________________________________________________________________________________________________________________

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING
ZIP CODE, OF ASSIGNEE)

________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________Shares

of the common
stock represented by the within Certificate, and do hereby irrevocably
constitute and appoint

_____________________________________________________________________________________________Attorney

to transfer the said
stock on the books of the within named Corporation with full power of
substitution in the premises.

Dated_______________________________________

                                                 X_____________________________________________________________

                                                 X_____________________________________________________________

	
  .

  	
  NOTICE:

  	
  THE SIGNATURE(S) TO THIS ASSIGNMENT MUST
  CORRESPOND WITH THE NAME(S) AS WRITTEN UPON 

  THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR
  ENLARGEMENT OR ANY CHANGE WHATEVER

  

Signature(s) Guarantee

By:____________________________________________________

THE SIGNATURE(S) SHOULD
BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, 

SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE 

GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]