Document:

2003 Stock Incentive Plan

 EXHIBIT 4.3 
  

TRANSCEND SERVICES, INC. 
 2003
STOCK INCENTIVE PLAN 

 TRANSCEND SERVICES, INC. 
 2003 STOCK INCENTIVE PLAN 
  
 ARTICLE 1 
  
 GENERAL 
  
 1.1 Purpose. The
Transcend Services, Inc. 2003 Stock Incentive Plan (the “Plan”) has been established by Transcend Services, Inc. (the “Company”) to (a) attract and retain high caliber employees, directors, consultants and
independent agents; (b) motivate Participants, by means of appropriate incentives, to achieve long-range goals; (c) provide incentive compensation opportunities that are competitive with those of other similar companies; and (d) further align
Participants’ interests with those of the Company’s other shareholders through compensation that is based on the Company’s common stock; and thereby promote the long-term financial interest of the Company and the Related Companies, if
any, including the growth in value of the Company’s equity and enhancement of long-term shareholder return. 
  
 1.2 Participation. Subject to the terms and conditions of the Plan, the Committee shall determine and designate, from time to time, from among the
Eligible Persons, those persons who will be granted one or more Awards under the Plan, and thereby become Participants in the Plan. In the discretion of the Committee, a Participant may be granted any Award for which such Participant is eligible
under the provisions of the Plan, and more than one Award may be granted to a Participant. Awards may be granted as alternatives to or replacement of awards outstanding under the Plan, or any other plan or arrangement of the Company or a Related
Company, if any (including a plan or arrangement of a business or entity, all or a portion of which is acquired by the Company or a Related Company). 
  
 1.3 Definitions. For purposes of the Plan, the terms listed below shall be defined as follows: 
  
 (a) Award. The term “Award” shall
mean any award or benefit granted to any Participant under the Plan, including, without limitation, the grant of Incentive Stock Options, Non-Qualified Stock Options and Restricted Stock Awards. 
  
 (b) Award Agreement. The term “Award
Agreement” shall mean an agreement entered into by the Company and a Participant, setting forth the terms and provisions applicable to the Award granted to such Participant under this Plan, as further described in Section 5.8 of the
Plan. 
  
 (c) Board. The term
“Board” shall mean the Board of Directors of the Company. 
  
 (d) Code. The term “Code” means the Internal Revenue Code of 1986, as amended. A reference to any provision of the Code shall include a reference to any successor provision of the Code.

  

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 (e) Committee. The term “Committee” shall have the meaning set
forth in Section 2.1 of the Plan. 
  
 (f)
Disability. The term “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 
  
 (g) Effective Date. The term “Effective Date” shall have the meaning set forth in Section 5.1 of this Plan.

  
 (h) Eligible Person. The term
“Eligible Person” shall mean any employee or director of the Company, or a Related Company, if any, and any consultant, advisor or other person providing bona fide services to the Company or a Related Company;
provided, however, that consultants or advisors shall be eligible for Awards under the Plan only if: (i) they are natural persons; (ii) they provide bona fide services to the Company; and (iii) the services are not in connection with
the offer or sale of securities in a capital raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s securities. 
  
 (i) Exchange Act. The term “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended, and the Rules and regulations promulgated thereunder. 
  
 (j) Exercise Price. The term “Exercise Price” shall mean the exercise price as determined under Section 3.2. 
  
 (k) Fair Market Value. For purposes of determining the “Fair Market Value” of a
share of Stock as of any day, the following rules shall apply: 
  
 (i) If the Stock is listed on any established stock exchange or a national securities market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for that day, as reported in The Wall Street Journal or such other source as the Committee
deems reliable; or 
  
 (ii) If the Stock is
regularly quoted by a recognized securities dealer, but selling prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Stock on that day, as reported in The Wall Street Journal or such other
source as the Committee deems reliable; or 
  
 (iii) In the absence of an established market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
  
 (l) Incentive Stock Option or ISO. The term “Incentive Stock Option” or “ISO” shall have the
meaning set forth in Section 3.1 of the Plan. 
  

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 (m) Insider. The term “Insider” means each Person who would be an
“executive officer” of the Company, as the term “executive officer” is used in Rule 3b-7 of the Exchange Act (regardless of whether the Company is subject to such Exchange Act) and each member of the Board of Directors of the
Company. 
  
 (n) Non-Qualified Stock
Option. The term “Non-Qualified Stock Option” shall have the meaning set forth in Section 3.1 of the Plan. 
  
 (o) Option. The term “Option” shall have the meaning set forth in Section 3.1 of the Plan. 
  
 (p) Participant. The term
“Participant” means an Eligible Person who has been selected by the Committee to participate in the Plan in accordance with Section 2.2(a) of the Plan. 
  
 (q) Period(s) of Restriction. The term “Period(s) of Restriction” means the
period(s) during which the transfer of shares granted pursuant to a Restricted Stock Award is limited in some way (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the
Committee, at its discretion) or the shares are subject to a substantial risk of forfeiture, pursuant to the terms of this Plan or the applicable Award Agreement. 
  
 (r) Related Companies. The term “Related Company” means any company during any
period in which it is a “parent corporation” (as that term is defined in Code §424(e)) with respect to the Company or a “subsidiary corporation” (as that term is defined in Code §424(f)) with respect to the Company.

  
 (s) Restricted Stock Award. The term
“Restricted Stock Award” means an award of shares of Stock pursuant to Article 4 of the Plan. 
  
 (t) Stock. The term “Stock” shall mean shares of $0.05 par value common stock of the Company. 
  
 (u) 10% Shareholder. The term “10%
Shareholder” means a person who owns (after taking into account the attribution rules of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or a Related Company. 

 

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 ARTICLE 2 
  

COMMITTEE 
  
 2.1 Administration. The authority to control and manage the operation and administration of the Plan shall be vested in the Stock Option and
Compensation Committee (the “Committee”) selected by the Board and, except as provided below, consisting solely of two or more “Non-Employee Directors” as such term is defined in Rule 16b-3 of the Exchange Act. If at any
time there is not such a committee in existence pursuant to this Section 2.1, the Committee shall consist of all the members of the Board. 
  
 2.2 Powers of Committee. The authority of the Committee shall include the following: 
  
 (a) Subject to the provisions of the Plan, the Committee shall have the authority and discretion to select
from among the Eligible Persons those persons who shall receive Awards, to determine the time or times of receipt of Awards, to determine the types of Awards and the number of shares covered by the Awards, to establish the terms, conditions,
performance criteria, restrictions, and other provisions of such Awards, and (subject to the restrictions imposed by Article 6) to cancel or suspend Awards. In making such Award determinations, the Committee may take into account the nature
of services rendered by the individual, the individual’s present and potential contribution to the Company’s or a Related Company’s success and such other factors as the Committee deems relevant. Notwithstanding the foregoing, ISOs
may be granted only to employees of the Company or a Related Company. 
  
 (b) Subject to the provisions of the Plan, the Committee shall have the authority and discretion to determine the extent to which Awards under the Plan will be structured to conform to the requirements applicable to
performance-based compensation as described in Code §162(m), and to take such action, establish such procedures, and impose such restrictions at the time such Awards are granted as the Committee determines to be necessary or appropriate to
conform to such requirements. 
  
 (c) The
Committee shall have the authority and discretion to establish terms and conditions of Awards as the Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United
States. 
  
 (d) The Committee shall have the
authority and discretion to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to determine the terms and provisions of any agreements made pursuant to the Plan, and to make all other determinations
that may be necessary or advisable for the administration of the Plan. 
  
 (e) Any interpretation of the Plan by the Committee and any decision made by it under the Plan is final, conclusive and binding on all Persons, including the Company and 
  

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 Related Companies, their shareholders, Eligible Persons, Participants, and their estates and
beneficiaries. 
  
 (f) Except as otherwise
expressly provided in the Plan, and to the extent allowable under law, where the Committee is authorized to make a determination with respect to any Award, such determination shall be made at the time the Award is made. 
  
 (g) In controlling and managing the operation and
administration of the Plan, the Committee shall act by a majority of its then members, by meeting or by writing filed without a meeting. The Committee shall maintain and keep adequate records concerning the Plan and concerning its proceedings and
acts in such form and detail as the Committee may decide. 
  
 2.3
Delegation by Committee. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may
delegate all or any part of its responsibilities and powers to any person or persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. 
  
 2.4 Information to be Furnished to Committee. The Company and Related Companies shall furnish the Committee with such
data and information as may be required for it to discharge its duties hereunder. The records of the Company and Related Companies as to an Eligible Person’s or Participant’s employment or performance of services, termination of employment
or cessation of performance of services, leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to be manifestly incorrect. Participants and other persons entitled to benefits under the Plan must, as a
condition to the receipt or settlement of any Award hereunder, furnish the Committee such evidence, data or information as the Committee reasonably considers desirable to carry out the terms of the Plan. 
  
 ARTICLE 3 
  
 STOCK OPTIONS 
  
 3.1 Options. The grant of an option (an “Option”) entitles
the Participant to purchase the number of shares of Stock designated in the Award Agreement for such Option at an Exercise Price established by the Committee. Options granted under this Article 3 may be either Incentive Stock Options or
Non-Qualified Stock Options, as determined in the discretion of the Committee. An “Incentive Stock Option” or “ISO” is an Option that is intended to qualify as, and that satisfies the requirements applicable to, an
“incentive stock option” described in Section 422(b) of the Code. A “Non-Qualified Stock Option” is an Option that is not intended to be, or does not qualify as, an “incentive stock option” as that term is
described in Section 422(b) of the Code. To the extent that the aggregate Fair Market Value (determined at time of grant) of the shares of Stock subject to ISOs granted to a Participant under the Plan and under any other stock option plan adopted by
the Company or a Related Company that first become exercisable in any calendar year exceeds $100,000, such options shall be treated as Non-Qualified Stock Options. 
  

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 3.2 Exercise Price. The “Exercise Price” of each Option granted under this
Article 3 shall be established by the Committee or shall be determined by a method established by the Committee at the time the Option is granted; provided that, in the case of an ISO, the Exercise Price per share shall not be less
than 100% (or, in the case of a 10% Shareholder, 110%) of the Fair Market Value of a share of Stock as of the date on which the Option is granted; and provided further that in the case of a Non-Qualified Stock Option, the Exercise Price per
share shall not be less than 100% of the Fair Market Value of a share of Stock as of the date on which the Option is granted. 
  
 3.3 Exercise. An Option shall be exercisable in accordance with such terms and conditions and during such periods as may be established by the
Committee; provided that an ISO may not be exercisable more than 10 (or, in the case of a 10% Shareholder, 5) years after the date such ISO is granted. If the Committee provides, in its discretion, that any Option is exercisable only in
installments, to the extent allowed under law, the Committee may waive such installment exercise provision at any time in whole or in part based on performance and/or such other factors as the Committee may determine in its sole discretion.

  
 3.4 Payment of Option Exercise Price. The payment of
the Exercise Price of an Option granted under this Article 3 shall be subject to the following: 
  
 (a) Subject to the following provisions of this Section 3.4, the full Exercise Price for shares of Stock purchased upon the
exercise of any Option shall be paid at the time of such exercise. 
  
 (b) The Exercise Price shall be payable (i) in cash; (ii) by tendering shares of Stock held by the Participant for more than six months (by either actual delivery of shares or by attestation, with such shares valued
at Fair Market Value as of the day of exercise); or (iii) in any combination thereof, as determined by the Committee. 
  
 3.5 Settlement of Award. Distribution of shares of Stock following exercise of an Option shall be subject to such conditions, restrictions and
contingencies as the Committee may establish. 
  
 ARTICLE 4

  
 RESTRICTED STOCK AWARDS 
  
 4.1 Restricted Stock Awards. A Restricted Stock Award is a grant of
shares of Stock or of a right to receive shares of Stock in the future. 
  
 4.2 Parameters for Restricted Stock Awards. Each Restricted Stock Award shall be subject to such conditions, restrictions and contingencies, as the Committee shall determine. These may include continuous service and/or the
achievement of performance measures. The performance measures that may be used by the Committee for such Awards shall be measured by such criteria as the Committee may establish, consistent with any applicable requirements of 
  

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 Code §162(m). The Committee may designate a single goal criterion or multiple goal criteria for performance
measurement purposes, with the measurement based on absolute Company (or Related Company) or business unit performance and/or on performance as compared with that of other companies. 
  
 The language regarding performance measures is intended to permit the Company to bring these awards within the requirements
of the general rule for the performance based compensation exception to the $1 million limit on deductible compensation under Code § 162(m). 
  
 4.3 Custody of Certificates. The Company shall have the right to retain the certificates representing shares of Stock subject to a Restricted Stock
Award in the Company’s possession until such time as all conditions and/or restrictions applicable to such Restricted Stock Award have been satisfied. 
  
 4.4 Voting Rights. Except as otherwise provided by the Committee in an Award Agreement, during any Period of Restriction, Participants holding
shares of Stock subject to a Restricted Stock Award granted hereunder may exercise full voting rights with respect to those shares, whether or not such shares are in the custody of the Company. 
  
 4.5 Dividends and Other Distributions. During any Period of
Restriction, Participants holding shares of Stock subject to a Restricted Stock Award granted hereunder may be credited with regular cash dividends paid with respect to the underlying shares while they are so held, whether or not such shares are in
the custody of the Company. The Committee may apply any restrictions to the dividends that the Committee deems appropriate. 
  
 In the event that any dividend constitutes a “derivative security” or an “equity security” pursuant to Rule 16(a) under
the Exchange Act, such dividend shall be subject to a vesting period equal to the remaining vesting period of the shares of Stock subject to the Restricted Stock Award with respect to which the dividend is paid. 
  
 ARTICLE 5 
  
 OPERATION AND ADMINISTRATION 
  
 5.1 Effective Date. The Plan shall be effective as of December 9, 2003
(the “Effective Date”); provided, however, that, to the extent that Awards are made under the Plan prior to its approval by shareholders, they shall be contingent on approval of the Plan by the shareholders of the Company;
and provided further that no Option issued under the Plan shall constitute an ISO unless the Plan is approved by the shareholders of the Company within 12 months of the adoption of the Plan by the Board and no Options may be exercised prior
to such shareholder approval if such Option is intended to be an ISO. The Plan shall be unlimited in duration and, in the event of Plan termination, shall remain in effect as long as any Awards under it are outstanding; provided, however,
that, to the extent required by the Code, no Incentive Stock 
  

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 Options may be granted under the Plan on a date that is more than ten years from the date the Plan is adopted or, if
earlier, the date the Plan is approved by shareholders. 
  
 5.2
Shares Subject to Plan. The maximum number of shares issuable under the Plan shall be as set forth below: 
  
 (a) Subject to adjustment as set forth in Section 5.2(d), the maximum number of shares of Stock available for issuance under the
Plan as of the Effective Date shall be 350,000 shares of Stock. 
  
 (b) Any shares of Stock granted under the Plan that are forfeited because of the failure to meet an Award contingency or condition shall again be available for delivery pursuant to new Awards granted under the Plan.
To the extent any shares of Stock covered by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, such shares shall not be deemed to have been delivered for purposes of determining the maximum number
of shares of Stock available for delivery under the Plan. 
  
 (c) If the Exercise Price of any stock option granted under the Plan is satisfied by tendering shares of Stock to the Company (by either actual delivery or by attestation), only the number of shares of Stock issued
net of the shares of Stock tendered shall be deemed delivered for purposes of determining the maximum number of shares of Stock available for delivery under the Plan. 
  
 (d) In the event of a corporate transaction involving the Company (including, without limitation, any stock
dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), the Committee may adjust Awards to facilitate the transaction or to preserve the
benefits or potential benefits of the Awards. Action by the Committee may include adjustment of: (i) the number and kind of securities which may be delivered under the Plan, but only if and to the extent that such adjustment may be effected without
shareholder approval of the Plan as so adjusted being required in order for Options issued after the adjustment to be eligible for qualification as incentive stock options under Code Section 422; (ii) the number and kind of securities subject to
outstanding Awards; (iii) the Exercise Price of outstanding Options; and (iv) acceleration of Awards so that they vest prior to the transaction with or without provision for the termination of Awards not exercised prior to the transaction, as well
as any other adjustments that the Committee determines to be equitable, including, without limitation, substitution of the securities of any other Person for the securities of the Company. 
  
 (e) The Committee may, at any time or from time to time,
authorize the Company, with the consent of the respective affected Participants, to issue new Awards in exchange for the surrender and cancellation of any, or all, outstanding Awards, provided that said issuance is made at least six (6) months plus
one (1) day after said surrender and cancellation. The Committee may at any time (including in anticipation of 
  

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 an event described in Section 5.2(d) whereby Awards are to be substituted, assumed, or replaced by
a successor company), upon twenty (20) days prior written notice, buy from a Participant an Award previously granted with payment in cash, Stock (including shares of Stock subject to a Restricted Stock Award) or other consideration, based on such
terms and conditions as the Committee and the Participant shall agree; provided, however, notwithstanding the foregoing, the Committee shall have the right and authority without Participant approval to buy from the Participant all unexercised
Awards acquired by Participant hereunder for the total Fair Market Value of such Awards (which in the case of an Option, shall be determined by multiplying the number of then vested and exercisable shares under the Option times the positive
difference between the Fair Market Value of a share and the Exercise Price provided in the Option Award Agreement and, in the case of a Restricted Stock Award, shall be the Fair Market Value of Stock that has fully vested under the terms of the
Restricted Stock Award, subject to any right of repurchase otherwise possessed by the Company). 
  
 (f) Subject to the overall limitation on the number of shares of Stock that may be delivered under the Plan, the Committee may use
available shares of Stock as the form of payment for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company or a Related Company, including the plans and arrangements of the Company or a
Related Company acquiring another entity (or an interest in another entity), and any such use shall reduce on a share-for-share basis the number of shares available for issuance under the Plan. 
  
 5.3 Limit on Distribution. Distribution of shares of Stock or other
amounts under the Plan shall be subject to the following: 
  
 (a) Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any shares of Stock under the Plan or make any other distribution of benefits under the Plan unless such delivery or
distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities Act of 1933), and the applicable requirements of any securities exchange or similar entity. 
  
 (b) To the extent that the Plan provides for issuance of
stock certificates to reflect the issuance of shares of Stock, the issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange. 
  
 (c) No Participant may be granted Awards with respect to
more than 100,000 shares during any one-year period. 
  
 5.4
Tax Withholding. The Company may require a Participant to remit to the Company an amount sufficient to satisfy any Federal, state and local tax withholding required in respect of an Award, its exercise, or any payment or transfer under an
Award or under the Plan prior to the date such withholding tax is due (and the Company may require the Company’s receipt of such amount as a condition to the delivery of any certificate for shares issuable to such Participant 
  

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 hereunder or to the issuance of shares to such Participant hereunder on a non-certificated basis) or, in the discretion
of the Committee, the Company may withhold from any shares to be delivered to such Participant hereunder the number of shares sufficient to satisfy all or a portion of such tax withholding requirements, or the Company may withhold from any other
payment or payments otherwise due to such Participant an amount sufficient to satisfy all or a portion of such tax withholding requirements. Whenever under the Plan payments are to be made in cash, such payments may be net of an amount sufficient to
satisfy any statutory Federal, state and local tax withholding requirements. 
  
 5.5 Legends. Each Award Agreement and each certificate representing securities granted pursuant to the Plan (including securities issuable pursuant to the terms of derivative securities) may bear a restrictive
legend as the Company deems necessary or advisable under applicable law, including federal and state securities laws. 
  
 5.6 Transferability. Except as otherwise provided by the Committee, Awards under the Plan shall not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until (i) in the case of a Restricted Stock Award, the end of the applicable Period or Periods of Restriction established by the Committee and specified in the Award Agreement, or upon earlier satisfaction of any
other conditions, as specified by the Committee in its sole discretion and set forth in the Award Agreement, or (ii) in the case of an Option, satisfaction of such conditions or period of time as are expressly set forth in the applicable Award
Agreement as prerequisites for the transferability of such Option; provided that an ISO shall not be transferable in any manner by a Participant other than by will or the laws of descent and distribution. All rights with respect to an Award
granted to a Participant under the Plan shall be available during his or her lifetime only to such Participant, and an ISO granted to a Participant hereunder may, during the lifetime of such Participant, be exercised only by such Participant.

  
 5.7 Form and Time of Elections. Unless otherwise
specified herein, each election required or permitted to be made by any Participant or other person entitled to benefits under the Plan, and any permitted modification, or revocation thereof, shall be in writing filed with the Committee at such
times, in such form, and subject to such restrictions and limitations, not inconsistent with the terms of the Plan, as the Committee shall require. 
  
 5.8 Agreement With Company. At the time of an Award to a Participant under the Plan, the Committee shall require a Participant to enter into an
agreement with the Company (the “Award Agreement”) in a form specified by the Committee, agreeing to the terms and conditions of the Plan, the Award and to such additional terms and conditions, not inconsistent with the Plan, as the
Committee may, in its sole discretion, prescribe. 
  
 5.9
Limitation of Implied Rights. No Participant is granted any rights under the Plan except as set forth herein or in an Award. In particular, by way of illustration: 
  
 (a) Neither a Participant nor any other person shall, by reason of the Plan, acquire any right in or title
to any assets, funds or property of the Company or any Related 
  

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 Company whatsoever, including, without limitation, any specific funds, assets, or other property which
the Company or any Related Company, in their sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the fully vested and/or unrestricted, as the case may be, shares of
Stock, if any, issuable to such Participant under the Plan, unsecured by any assets of the Company or any Related Company. 
  
 (b) The Plan does not constitute a contract of employment, and selection as a Participant will not give any employee the right to be
retained in the employ of the Company or any Related Company, nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan. Except as otherwise provided in the Plan, no Award
under the Plan shall confer upon the holder thereof any right as a shareholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights. 
  
 5.10 Termination of Employment. Each Award Agreement shall, to the extent applicable, set forth the extent to which
(i) unvested Options or shares of Stock subject to a Restricted Stock Award shall be forfeited upon termination of the Participant’s employment with the Company and Related Companies or upon the Participant’s otherwise ceasing to be an
Eligible Person, (ii) vested Options are exercisable following termination of the Participant’s employment or the Participant’s otherwise ceasing to be an Eligible Person, or (iii) the Participant may incur a repayment obligation with
respect to vested shares of Stock received pursuant to a Restricted Stock Award. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with the Participant, need not be
uniform among all Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of employment and post-employment competition. 
  
 5.11 Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other
information, on which the person acting considers pertinent and reliable, and signed, made or presented by the proper party or parties. 
  
 5.12 Liquidation of the Company. In the event of the complete liquidation or dissolution of the Company, any Options granted pursuant to the Plan
and remaining unexercised shall be deemed automatically canceled without any action on the part of the Company and without regard to or limitation by any other provision of the Plan. 
  
 ARTICLE 6 
  
 AMENDMENT AND TERMINATION 
  
 The Board may, at any time, amend or terminate the Plan, provided that, subject to Section 5.2(d) (relating to certain adjustments to
shares), no amendment or termination may, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the applicable beneficiary or estate), adversely affect the rights of any Participant

  

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 (or applicable beneficiary or estate) under any Award granted under the Plan prior to the date such
amendment is adopted by the Board; and provided further that no material amendment shall be made to the Plan without the approval of the shareholders of the Company. A material amendment would include, but not limited to, the following: (a)
any increase in the number of shares of Stock to be issued under the Plan (except as provided in Section 5.2(d)); (b) any increase in the number of shares of Stock that can be issued pursuant to the exercise of ISOs granted under the Plan
(except as provided in Section 5.2(d)); (c) any material increase in benefits to Participants, including any material change to: (i) permit a repricing (or decrease in the exercise price) of outstanding options, (ii) reduce the price at which
shares or options to purchase shares may be offered, or (iii) extend the duration of the Plan; (d) any change in the class of employees of the Company or Related Companies eligible to be awarded ISOs under the Plan or to participate in the Plan; or
(e) any expansion in the types of options or awards provided under the Plan. 
  
 ARTICLE 7 
  
 CHANGE OF
CONTROL 
  
 7.1 The following acceleration provisions shall
apply in the event of a Change of Control as defined in this Section 7.1: 
  
 (a) In the event of a Change of Control as defined in paragraph (b) of this Section 7.1: 
  
 (i) Any Options awarded under the Plan, if not previously exercisable and vested, shall become fully exercisable and vested; and

  
 (ii) The restrictions and deferral
limitations applicable to any Restricted Stock Award under the Plan shall lapse and such shares and awards shall be deemed fully vested. 
  
 (b) For purposes of paragraph (a) of this Section 7.1, a “Change of Control” means the happening of any of the following:

  
 (i) The acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (A) the then-outstanding
shares of Stock of the Company (the “Outstanding Company Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (X) any acquisition by the Company; (Y) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation 
  

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 controlled by the Company; or, (Z) any acquisition by any corporation pursuant to a transaction that
complies with clauses (A), (B) and (C) of subsection (iii) of this Section 7.1; or  
  
 (ii) The individuals who, as of the date this Agreement is approved by the Board, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least a majority of the Board; provided, however, that, if the election, or nomination for election by the Company’s shareholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered and defined as a member of the Incumbent Board; and provided further, that no individual shall be considered a member of the Incumbent
Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board (a “Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
  
 (iii) Consummation by the Company of a reorganization,
merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such
Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Stock and Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Stock and Outstanding Company Voting Securities, as the case may
be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 50% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business
Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the 
  

 13 

 time of the execution of the initial agreement, or of the action of the Board, providing for such
Business Combination; or 
  
 (iv) Approval by the
shareholders of the Company of a complete liquidation or dissolution of the Company.  
  
 ARTICLE 8 
  
 RULES OF
CONSTRUCTION AND MISCELLANEOUS 
  
 8.1 Rules of
Construction. For all purposes of this Plan, except as otherwise expressly provided: 
  
 (a) All accounting terms not otherwise defined herein have the meanings ascribed thereto under U.S. generally accepted accounting
principles, 
  
 (b) All references in this Plan
to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of the body of this Plan, with the exception of those references identifying Code sections, 

 
 (c) The words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Plan as a whole and not to any particular Article, Section or other subdivision, 
  
 (d) Whenever the words “include,” “includes” or “including” are used in this Plan, they shall be deemed to
be followed by the words “without limitation,” 
  
 (e) Whenever this Plan refers to a number of days, such number shall refer to calendar days unless business days are expressly specified, and 
  
 (f) A reference to any legislation or to any provision of any legislation shall include such legislation, as
amended through the date hereof, and all subsequent amendments or modifications thereto or reenactment thereof, any legislative provision substituted therefor and all regulations and statutory instruments issued thereunder or pursuant thereto.

  
 8.2 Gender and Number. Except where otherwise indicated
by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
  

8.3 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
  

 14 

 8.4 Requirements of Law. The granting of Awards and the issuance of shares of Stock under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
  
 8.5 Securities Law Compliance. With respect to Insiders, transactions under this Plan are intended to comply with all
applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee. 
  
 8.6 Governing Law. To the
extent not preempted by United States Federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Georgia. 
  

 152004 Employee Stock Purchase Plan

 EXHIBIT 4.4 
  

TRANSCEND SERVICES, INC. 
 2004
EMPLOYEE STOCK PURCHASE PLAN 

 TRANSCEND SERVICES, INC. 
  
 2004 Employee Stock Purchase Plan 
  
 1. Purpose. The purpose of the Plan is to provide employees of the Company and its Subsidiaries with an opportunity
to purchase Common Stock of the Company through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as
amended. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions. 
  
 (a) “Board” shall mean the Board of Directors of Transcend Services, Inc., or the Stock Option and Compensation Committee
of the Board. 
  
 (b) “Code”
shall mean the Internal Revenue Code of 1986, as amended. 
  
 (c) “Common Stock” shall mean the common stock of Transcend Services, Inc 
  
 (d) “Company” shall mean Transcend Services, Inc., a Delaware corporation, and each Subsidiary of the Company.

  
 (e) “Compensation” shall
mean all base gross earnings, standard base and standard incentive line-rate gross earnings and commissions, exclusive of payments for overtime, other incentive compensation, bonuses, business expense reimbursements and other special compensation.

  
 (f) “Designated Subsidiary”
shall mean, with respect to any Offering Period, a Subsidiary that has been designated by the Board in its sole discretion as not being eligible to participate in offerings under the Plan during such Offering Period. 
  
 (g) “Employee” shall mean any individual
who is an Employee of the Company for tax purposes and whose customary employment with the Company is at least twenty (20) hours per week (which is generally the period in which a Medical Language Specialist would transcribe at least 2,750 lines)
and more than five (5) months in any calendar year, provided that the Employee has completed six months of employment with the Company. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual
is on sick leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be
deemed to have terminated on the 91st day of such leave. 
  
 (h) “Enrollment Date” shall mean the first day of the applicable Offering Period. 
  

 1 

 (i) “Exercise Date” shall mean the last day of the applicable Offering
Period. 
  
 (j) “Fair Market
Value” shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market
trading day prior to the purchase, as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
  
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on the date prior to the purchase as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
  
 (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
  
 (k) “Offering Period” shall mean, with respect to any offering of Common Stock hereunder, the period specified by the
Board (which shall normally consist of three (3) calendar months) during which such offering is effective and outstanding, generally commencing on the first day of each calendar quarter of each year and terminating on the last day in that calendar
quarter; provided, however, that the first Offering Period under the Plan shall commence on July 1, 2004. The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan. 
  
 (l) “Plan” shall mean this 2004 Employee
Stock Purchase Plan. 
  
 (m) [Intentionally
Omitted.] 
  
 (n) “Purchase
Price” shall mean, with respect to any offering of Common Stock hereunder, 85% of the Fair Market Value of a share of Common Stock on the applicable Enrollment Date (or if no shares of Common Stock were traded on that day, on the last
Trading Day prior thereto on which shares of Common Stock were traded) or on the applicable Exercise Date (or if no shares of Common Stock were traded on that day, on the last Trading Day prior thereto on which shares of Common Stock were traded),
whichever is lower; provided, however, that the Purchase Price may be adjusted by the Board pursuant to Section 20. 
  
 (o) “Reserves” shall mean the number of shares of Common Stock covered by each option under the Plan, which have not yet
been exercised, and the number of shares of Common Stock that have been authorized for issuance under the Plan but not yet placed under option. 
  

 2 

 (p) “Subsidiary” shall mean a “subsidiary corporation” (as
that term is defined in Code Section 424(f)) with respect to the Company, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 (q) “Trading Day” shall mean a day on which national stock exchanges and the Nasdaq Stock
Market are open for trading. 
  
 3. Eligibility.

  
 (a) Each Employee who shall be employed by
the Company (other than an Employee of a Designated Subsidiary with respect to the applicable Offering Period) on the Enrollment Date for the applicable Offering Period shall be eligible to participate in the offering under the Plan for that
Offering Period. Only Employees of the Company shall be eligible to participate in offerings under the Plan, provided that, with respect to any Offering Period, the Employees of a Subsidiary that is a Designated Subsidiary for that Offering Period
shall not be eligible to participate in the offering for that Offering Period. 
  
 (b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent
that, immediately after the grant, such Employee would own (or under the attribution rules of Section 424(d) of the Code would be treated as owning) capital stock of the Company and/or outstanding options to purchase such stock possessing, in the
aggregate, five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all employee stock
purchase plans of the Company and its Subsidiaries exceed Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) in any calendar year. 
  
 (c) With respect to any offering hereunder, each
participating Employee shall have the same rights and privileges subject to the limitations set forth herein; provided, that the use of Compensation (which varies among Employees) as the basis for determining the number of shares of Common Stock for
which an Employee may be granted an option shall not be construed to create a difference in such rights and privileges so long as each participating Employee has the right to elect the same percentage of his Compensation as a payroll deduction under
Section 6. 
  
 4. Offering Periods. The Plan shall be
implemented by consecutive Offering Periods with a new Offering Period commencing on the first day of each calendar quarter of each year, or on such other date as the Board shall determine, and continuing thereafter until terminated in accordance
with Section 20 hereof; provided, however, that the first Offering Period under the Plan shall commence on July 1, 2004. The Board shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with
respect to future offerings without shareholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter; provided that no Offering Period may exceed 27
months in duration. 
  

 3 

 5. Participation. 
  
 (a) Any eligible Employee may become a participant in the Plan by completing a subscription agreement
authorizing payroll deductions in the form of Exhibit A attached to this Plan and filing it with the Company’s payroll office not less than fifteen days prior to the applicable Enrollment Date. 
  
 (b) Payroll deductions for a participant for any Offering
Period shall commence on the first payday on or following the applicable Enrollment Date and shall end on the last payday in such Offering Period, unless sooner terminated by the participant as provided in Section 10 hereof. 
  
 6. Payroll Deductions. 
  
 (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount ranging from one percent (1%) to ten percent (10%) of the Compensation that he or she receives on each pay day during the
Offering Period. 
  
 (b) All payroll deductions
made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
  
 (c) A participant may discontinue his or her participation
in the Plan as provided in Section 10 hereof. A participant’s subscription agreement shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 
  
 (d) Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. Payroll deductions shall recommence at the rate provided in
such participant’s subscription agreement at the beginning of the next Offering Period, unless terminated by the participant as provided in Section 10 hereof. 
  
 (e) At the time the option is exercised, in whole or in part, or at the time some or all of the
Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the
disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any
withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Common Stock by the Employee. 
  
 7. Grant of Option. On the Enrollment Date of each Offering Period, each eligible Employee participating in such
Offering Period shall be granted an option to purchase on the 
  

 4 

 Exercise Date for such Offering Period (at the applicable Purchase Price) up to a number of shares of the Company’s
Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event
shall an Employee be permitted to purchase during each Offering Period more than 250 shares of the Company’s Common Stock (subject to any adjustment pursuant to Section 19); and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(b) and 12 hereof. The Board may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of the Company’s Common Stock an Employee may purchase during each
Offering Period. Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last day of the Offering Period. 
  
 8. Exercise of Option. 
  
 (a) Unless a participant withdraws from the Plan as provided
in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at the applicable Purchase
Price with the accumulated payroll deductions in his or her account. No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in
the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 hereof. Any other monies left over in a participant’s account after the Exercise Date shall be
returned to the participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  

(b) If the Board determines that, on a given Exercise Date, the number of shares with respect to which options are to be exercised may
exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares available for sale under the Plan on such Exercise Date, the Board may
in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as
it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or (y) provide that the Company shall make a pro
rata allocation of the shares available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants
exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20 hereof. The Company may make a pro rata allocation of the shares available on the Enrollment Date of
any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date. 
  

 5 

 9. Delivery. As promptly as practicable after each Exercise Date on which a purchase of shares
occurs, the Company shall arrange the delivery to each participant, as appropriate, of a certificate representing the shares purchased upon exercise of his or her option. 
  
 10. Withdrawal. 
  
 (a) A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to
exercise his or her option under the Plan at any time by giving written notice to the Company in the form of Exhibit B to this Plan. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. If a
participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement. 
  
 (b) A participant’s withdrawal from an Offering Period
shall not have any effect upon his or her eligibility to participate in any similar plan that may hereafter be adopted by the Company or in succeeding Offering Periods that commence after the termination of the Offering Period from which the
participant withdraws. 
  
 11. Termination of Employment.

  
 Upon a participant’s ceasing to be an Employee, for any
reason, he or she shall be deemed to have elected to withdraw from the Plan, and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such
participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated.  
  
 12. Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan. 
  
 13. Stock. 
  
 (a) Subject to adjustment upon changes in capitalization of
the Company as provided in Section 19 hereof, the maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall be 500,000 shares. 
  
 (b) The participant shall have no interest or voting rights
in shares covered by his option until such option has been exercised. 
  
 (c) Shares to be delivered to a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse. 
  

 6 

 14. Administration. The Plan shall be administered by the Board or a committee of members of the
Board appointed by the Board. The Board or its committee shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the
Plan. Every finding, decision and determination made by the Board or its committee shall, to the fullest extent permitted by law, be final and binding upon all parties. 
  
 15. Designation of Beneficiary. 
  
 (a) A participant may file a written designation of a beneficiary who is to receive any shares and cash, if
any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a
participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and
the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 16. Transferability. Neither payroll deductions credited to a participant’s 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 (other than by will, the laws of descent and distribution or as provided in Section 15 hereof) by the participant, and during the lifetime of
the participant such rights may be exercised only 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 from an
Offering Period in accordance with Section 10 hereof. 
  
 17.
Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 
  
 18. Reports. Individual accounts shall be maintained for each
participant in the Plan. Statements of account, which shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any, shall be given to participating Employees on a
quarterly basis as soon as practical after each Exercise Date. 
  

 7 

 19. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

  
 (a) Changes in Capitalization. Subject
to any required action by the shareholders of the Company, the Reserves, the maximum number of shares each participant may purchase each Offering Period (pursuant to Section 7), as well as the price per share and the number of shares of Common Stock
covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities
of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an option. 
  
 (b)
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall
terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Board
shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall
be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof. 
  
 (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets
of the Company, or the merger of the Company with or into another corporation, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the
event that the successor corporation refuses to assume or substitute for the option, any Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and such Offering Period shall end on the
New Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof. 
  

 8 

 20. Amendment or Termination. 
  
 (a) The Board of Directors of the Company may at any time and for any reason terminate or amend the Plan.
Except as provided in Section 19 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Board of Directors on any Exercise Date if the Board determines that the termination of the
Offering Period or the Plan is in the best interests of the Company and its shareholders. Except as provided in Section 19 and this Section 20 hereof, no amendment may make any change in any option theretofore granted which adversely affects the
rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a
manner and to such a degree as required by law. 
  
 (b) Without shareholder consent and without regard to whether any participant’s rights may be considered to have been “adversely affected,” the Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated
by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan. 
  
 21. Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company
at the location, or by the person, designated by the Company for the receipt thereof. 
  
 22. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with
all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of
any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person exercising such option to represent and
warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by
any of the aforementioned applicable provisions of law. 
  

 9 

 23. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the
Board or its approval by the shareholders of Transcend Services, Inc.; provided that the Plan shall not become effective unless approved by the shareholders of Transcend Services, Inc. within twelve (12) months of the Plan’s adoption by the
Board. The Plan shall continue in effect for a term of ten (10) years unless sooner terminated under Section 20 hereof. 
  

 10 

 EXHIBIT A 
  

TRANSCEND SERVICES, INC. 
  
 2004 Employee Stock Purchase Plan 
  
 SUBSCRIPTION AGREEMENT 
  

					
	                  Original
Application
	  	Enrollment Date:                    
	                  Change in Payroll
Deduction Rate
	  	 
	                  Change of
Beneficiary(ies)
	  	 

  

	1.	 	                            
hereby elects to participate in the Transcend Services, Inc. 2004 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to purchase shares of the Company’s Common Stock in accordance with this Subscription
Agreement and the Employee Stock Purchase Plan. 

  

	2.	 	I hereby authorize payroll deductions from each paycheck in the amount of             % of my Compensation on each
payday (from 1% to 10%) during the Offering Period in accordance with the Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.) 

  

	3.	 	I understand that said payroll deductions shall be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Employee
Stock Purchase Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to exercise my option automatically. 

  

	4.	 	I have received a copy of the complete Employee Stock Purchase Plan. I understand that my participation in the Employee Stock Purchase Plan is in all respects subject to the terms
of the Plan. 

  

	5.	 	Shares purchased for me under the Employee Stock Purchase Plan should be issued in the name(s) of (Employee or Employee and Spouse only). 

  

	6.	 	I understand that if I dispose of any shares received by me pursuant to the Plan within two years after the Enrollment Date (the first day of the Offering Period during which I
purchased such shares), I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the shares at the time such shares were
purchased by me over the price which I paid for the shares. I hereby agree to notify the Company in writing within 30 days after the date of any disposition of my shares, and I will make adequate provision for Federal, state or other tax
withholding 

 obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but
will not be obligated to, withhold from my compensation the amount necessary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to the sale
or early disposition of Common Stock by me. If I dispose of such shares at any time after the expiration of the two-year holding period or if I die while owning such shares (whether before or after the expiration of the two-year holding period), I
understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition (or, if applicable, the time of my death), and that such income will be taxed as ordinary income only to the extent of
an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (2) 15% of the fair market value of the shares on the first day of the
Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain. 
  

	7.	 	I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the
Employee Stock Purchase Plan. 

  

	8.	 	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due me under the Employee Stock Purchase Plan:

  
 NAME: (Please print)
                                        
                                        
                                        
              
         (First)
                        (Middle)               
         (Last) 

					
			
	  	 	 	 	  
	 Relationship
	 	 	 	 

					
			
	  	 	 	 	  
	 	 	 	 	 (Address)

  

 2 

  

					
	 Employee’s Social
 Security Number:
	 	 	 	  
	 Employee’s Address:
	 	 	 	  
	  	 	 	 	  
	  	 	 	 	  

  
 I UNDERSTAND THAT THIS SUBSCRIPTION
AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME. 
  

							
	Dated:	 	  

	 	 	 	  

	 	 	 	 	 	 	Signature of Employee
				
	 	 	 	 	 	 	  

	 	 	 	 	 	 	 Spouse’s Signature (If beneficiary other than spouse)

  

 3 

 EXHIBIT B 
  

TRANSCEND SERVICES, INC. 
  
 2004 Employee Stock Purchase Plan 
  
 NOTICE OF WITHDRAWAL 
  
 The undersigned participant in the Offering Period of the Transcend Services, Inc. 2004 Employee Stock Purchase Plan that began on
                ,              (the “Enrollment Date”) hereby notifies the Company
that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current
Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

	
	Name and Address of Participant:
	
	 
	
	 
	
	 

  

			
	
	Signature:
	
	

		
	 Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]