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Exhibit 4.4    
  

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") NOR UNDER ANY STATE SECURITIES LAW AND MAY NOT BE PLEDGED, SOLD, ASSIGNED,
HYPOTHECATED OR OTHERWISE TRANSFERRED UNTIL THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE COMPANY, THAT SUCH NOTE MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

 
 

EQUIFIN, INC.
  11% Subordinated Note
  Due September 30, 2006    

THIS NOTE WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT  

To
obtain information Regarding Original Issue Discount Contact

Daniel P. Murphy, Chief Financial Officer of EquiFin, Inc.

Telephone number: 732-282-1411 

	$             	 	NO. N -00            

{Date} 

        EquiFin, Inc.,
a Delaware corporation (the "Company"), for value received, hereby promises to pay to                        , with an address
located at                        , or his registered
assigns (the "Payee" or "Holder"), the principal amount of                        DOLLARS
($            ) and accrued interest thereon in accordance with the terms and provisions hereof. 

1.    METHOD OF PAYMENT; PAYMENT OF PRINCIPAL AND INTEREST  

        1.1    Method of Payment.    Payment of the principal of and accrued interest on this Note
shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Unless otherwise expressly provided
herein, the Company will pay or cause to be paid all sums becoming due hereon for principal and interest by check sent to the Holder's above address or to such other address as Holder may designate
for such purpose from time to time by written notice to the Company, without any requirement for the presentation of this Note or making any notation thereon, except that the Holder hereof agrees that
payment of the final amount due shall be made only upon surrender of this Note to the Company for cancellation. Prior to any sale or other disposition of this instrument, the Holder hereof agrees to
endorse hereon the amount of principal paid hereon and the last date to which interest has been paid hereon and to notify the Company of the name and address of the transferee. 

        1.2    Payment of Principal.    The entire outstanding principal balance of this Note shall be
due and payable on September 30, 2006 (the "Maturity Date"). 

        1.3    Payment of Interest.    

        (a)    Basic Interest.    Interest (computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid portion of the principal amount from time to time outstanding hereunder shall be paid by the Company to the Payee at the rate of eleven percent (11%) per annum. Said interest to
be paid semi-annually on each June 30 and December 31 (commencing June 30, 2002) and on the Maturity Date. 

 

        (b)    Additional Interest.    In addition to the interest payable pursuant to Section 1.3(a), the Company
shall pay to the Holder on April 30th of each year commencing April 30, 2001, an amount of additional interest for the then preceding calendar year determined as follows: 

	Average Principal Amount of this Note outstanding during the Interest Period
 $1,500,000	 	X    10%        X	 	number of days in Interest Period
 360	 	X	 	the Company's net income before taxes for such Interest Period

;
provided, that with respect to any year in which this Note has been repaid in full, the Company shall pay the additional interest within thirty (30) days of the date this Note has been repaid
in full by using the Company's net income before taxes as reflected in the Company's then most recent annual certified financial statements to compute the additional interest due under the above
formula. For purposes of the additional interest formula: (i) "Interest Period" shall mean that part of the applicable calendar year during which any part of this Note was outstanding, and
(ii) "net income before taxes" shall be determined in accordance with generally accepted accounting principals for the applicable calendar year. 

        (c)    PIK Interest.    Notwithstanding the foregoing, to the extent the Company does not make cash payments of
interest hereon pursuant to the provisions of Section 2 hereof, the Company will satisfy its interest obligations by issuing to the holder in the same form and with the same terms as are
included in this Note except the principal amount thereof shall be equal to such interest obligation due under this Note (a "PIK Payment"). 

2.    SUBORDINATION PROVISIONS.

        2.1    Principal and Interest.    The Company, for itself, its successors and assigns,
covenants and agrees, and the Payee and each successive Holder by acceptance of this Note likewise covenants and agrees, that payment of the principal of and interest on this Note is subordinated in
right of payment to the payment of all existing and future "Senior Debt" of the Company. The term "Senior Debt" shall mean the principal of, premium, if any, and interest on all indebtedness of the
Company to any bank, financial institution or other senior lender (including, without limitation, to Foothill Capital Corporation or any affiliate thereof) whether such indebtedness is heretofore or
hereafter created, incurred or entered into (or acquired by assignment) and any deferrals, renewals, modifications or extensions of any such indebtedness, unless under the express provisions of the
instrument creating or evidencing any such indebtedness, or pursuant to which the same is outstanding, such indebtedness is not superior in right of payment to this Note. "Indebtedness" for all
purposes herein means and includes without duplication, as of any date as of which the amount thereof is to be determined (whether or not secured by lien, pledge or deposit), all direct obligations to
repay money borrowed (including without limitation, amounts borrowed under revolving credit facilities, either now existing or hereafter created (including any increase in existing facilities), all
notes payable and drafts accepted representing extensions of credit, all obligations under arrangements regarding the factoring of accounts receivables, all obligations in the nature of a guaranty or
contingent liability relating to third party financing of one or more subsidiaries of the Company, all obligations evidenced by bonds, debentures, notes or other similar instruments) and all interest
accrued and unpaid thereon and all indemnities and other monetary obligations with respect thereto. 

        2.2    Default.    No cash payment or prepayment, directly or indirectly, on account of the
principal of or interest on this Note shall be made, and no Holder of this Note shall be entitled to demand or receive any such cash payment or prepayment if, at the time such cash payment or
prepayment is to be 

2

 

made or immediately after giving effect thereto, there would occur any event of default under such Senior Debt or under any agreement pursuant to which any such Senior Debt has been or will be
issued, which event of default has not been waived or cured as of the date on which such payment or prepayment is due. 

        2.3    Liquidation, Dissolution, etc.    In the event of any insolvency or bankruptcy
proceeding, and any receivership, total liquidation, reorganization or other similar proceedings in connection therewith, relative to the Company, or to its property, or in the event of any
proceedings for voluntary liquidation, dissolution or other winding up of the Company, whether or not involving insolvency or bankruptcy, then the holders of Senior Debt shall be entitled to receive
payment in full of all principal (and premium, if any), interest and other amounts on or with respect to all such Senior Debt before the Holders of this Note shall be entitled to receive any payment
on account of principal or interest of this Note, and to that end (but subject to the power of a court of competent jurisdiction to make other equitable provisions reflecting the rights conferred by
these provisions upon such Senior Debt and the holders thereof with respect to this Note and the Holder hereof by a lawful plan or reorganization
under applicable bankruptcy law) the holders of Senior Debt (until payment in full of all principal, premium, if any, interest and other amounts on or with respect to all such Senior Debt, including
interest thereon accruing before or in respect of periods subsequent to the commencement of any such proceedings) shall be entitled to receive for application in payment thereof any payment or
distribution of any kind or character, whether in cash or property, or by set-off or otherwise, which may be payable or deliverable in any such proceedings in respect of this Note
(including any such payment or distribution which may be payable or deliverable by reason of the provisions of any indebtedness of the Company which is subordinate and junior in right to this Note),
except securities issued in such proceedings which are the subordinate and junior in right of payment to the payment of Senior Debt. 

        2.4    Subrogation.    Subject to the payment in full of Senior Debt, the Holders of this Note
shall be subrogated to the rights of the holders of such Senior Debt to receive payment or distributions of assets of the Company applicable to such Senior Debt until this Note shall be paid in full,
and no payment or distributions to the holders of such Senior Debt by or on behalf of the Company from the proceeds that would otherwise be payable to the holder of this Note shall, as between the
Company and the Holder of this Note, be deemed to be a payment by the Company to or on account of this Note. 

        2.5    Amendment.    These provisions with respect to subordination cannot be amended,
modified or waived without the prior written consent of the holder or holders of all Senior Debt at the time outstanding; and the subordination effected hereby shall not be affected by any amendment
or modification of, or addition or supplement to, any such Senior Debt or any instrument or agreement relating thereto, without the prior written consent of the holder or holders of all such Senior
Debt at the time outstanding. No present or future holder of Senior Debt shall be prejudiced in his right to enforce subordination of this Note by any act or failure to act on the part of the Company. 

        2.6    Benefit of Senior Debt.    The foregoing subordination provisions shall be for the
benefit of the Holders of Senior Debt and may be enforced directly by such holders against the holder of this Note. Upon any payment or distribution of assets of the Company referred to above, the
holder of this Note shall be entitled to rely upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, delivered to
the holder of this Note, for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of Senior Debt and other indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertaining thereto or hereto. 

        2.7    Obligation to Pay Principal and Interest Absolute.    The foregoing provisions as to
subordination are solely for the purpose of defining the relative rights of the holders of such Senior 

3

 

Debt, on the one hand, and the Holder of this Note on the other hand. Nothing contained herein is intended to or shall impair as between the Company, its creditors, other than the holders of Senior
Debt, and the Holder of this Note, the obligation of the Company, which shall be absolute and unconditional, to pay the Holder of this Note the principal and interest on this Note as and when the same
shall become due and payable in accordance with the terms hereof or affect the relative rights of the Holder of this Note and the creditors of the Company other than Holders of Senior Debt, nor shall
anything herein prevent the Holder hereof from exercising all remedies otherwise permitted by applicable law upon default hereunder subject to the rights of holders of Senior Debt, if any, in respect
of cash, properties or securities of the Company received upon the exercise of any such remedy. The Holder of this Note by acceptance hereof acknowledges and agrees that the subordination provisions
of this Section 2 are, and/or are intended to be, an inducement and a consideration to each holder of any Senior Debt, whether such Senior Debt was created or acquired before or after the
issuance of this Note, to acquire and continue to hold, or to continue to hold, such Senior Debt and each holder of Senior Debt shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Debt. Nothing contained herein or elsewhere in this Note shall prevent the Company from making payment of the
principal of, or interest on, this Note at any time except under the conditions described above. 

        2.8    Further Instruments.    The Holder of this Note covenants and agrees to execute such
further instruments and waivers as may be necessary in the opinion of a lender or creditor, or as may be reasonably requested by the Company, to facilitate the issuance or the continued holding of
Senior Debt. 

        3.    EVENTS OF DEFAULT.    It shall be an Event of Default with respect to this Note upon the
occurrence and continuation uncured of any of the following events: 

        (a)  a
default in the payment of any principal payment on this Note, when and as the same shall become due and payable, and such default shall continue uncured for thirty
(30) days after the day fixed for the making of such principal payment; or 

        (b)  a
default in the cash or PIK Payment of any interest payments on this Note, and such default shall continue uncured for thirty (30) days after the date fixed for
the making of such interest payment; or 

        (c)  a
material default in the performance, or material breach, of any covenant of the Company in this Note (other than a covenant or a default which is elsewhere herein
specifically described as an Event or Default), and continuance of such default or breach is uncured for a period of ninety (90) days after notice has been given to the Company of such default;
or 

        (d)  the
institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of bankruptcy or insolvency proceedings
against it or the filing by it of a petition or answer or consent seeking reorganization or release under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it
to the filing of any such petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, or of any substantial part of its property, or the making
by it of an assignment for the benefit of creditors, or the taking of corporate action by the Company in furtherance of any such action; or 

        (e)  if,
within sixty (60) days after the commencement of an action against the Company (and service of process in connection therewith on the Company) seeking any
bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been resolved in favor of the
Company or all orders or proceedings thereunder affecting the operations or the business of the Company stayed, or if the stay of any such order or proceeding shall thereafter be set aside, or if,
within sixty (60) days after 

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the appointment without the consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, such
appointment shall not have been vacated. 

4.    REMEDIES UPON DEFAULT. 

        4.1    Acceleration.    Upon each occurrence of an Event of Default and at any time during the
continuation thereof (unless the principal of this Note shall already have become due and payable), the Holder, by notice in writing given to the Company, may declare the principal of and accrued
interest on this Note then outstanding to be due and payable immediately, and upon any such declaration the same shall become and be due and payable immediately, anything herein to the contrary
notwithstanding. 

        4.2    Proceedings and Actions.    During the continuation of any one or more Events of
Default, the Holder may institute such actions or proceedings in law or equity as it shall deem expedient for the protection of its rights, and may prosecute and enforce its claims against all assets
of the Company, and shall be entitled to receive therefrom payment on such claims up to an amount not exceeding the principal amount of this Note then outstanding plus accrued interest to the date of
payment plus reasonable expenses of collection, including, without limitation, attorneys' fees and expenses. 

5.    REDEMPTION

        This
Note may be redeemed at the option of the Company, in whole or in part, from time to time at any time after January 1, 2002, on not less than 30 nor more than 60 days
written notice. Any such redemptions shall be made at the following prices, expressed as percentages of the principal amount being redeemed, during the calendar year periods indicated below, plus
accrued and unpaid interest thereon to the redemption date: 

	Year
 
	 	Percentage
	 
	

2002	
 	

105	
%
	

2003	
 	

103	
%
	

2004	
 	

102	
%
	

2005	
 	

101	
%

        If
less than the entire principal amount of the series of notes of which the Note is part are to be redeemed at one time, the notes may be redeemed on a pro rata basis or the notes to be
redeemed may be selected by lot, or such other manner to be determined by the Board of Directors of the Company in its sole discretion. 

6.    MISCELLANEOUS. 

        6.1    Notices.    All communications provided hereunder shall be in writing and, if to the
Company, delivered or mailed by registered or certified mail addressed to EquiFin, Inc., 1011 Highway 71, Suite 200, Spring Lake, New Jersey 07762, Attention: President, or, if to the Holder,
at the address shown for the Holder in the registration books maintained by the Company. 

        6.2    Lost, Stolen or Mutilated Notes.    In case this Note shall be mutilated, lost, stolen
or destroyed, the Company may, in its discretion, issue and deliver in exchange and substitution for and upon cancellation of the mutilated Note, or in lieu of and in substitution for the Note, lost,
stolen, or destroyed, a new Note of like tenor and representing an equivalent right or interest, but only upon 

5

 

receipt of evidence satisfactory to the Company of such loss, theft or destruction and an indemnity, if requested, also satisfactory to it. 

        6.3    Governing Law.    This Note shall be construed in accordance with and governed by the
laws of the State of New Jersey, without giving effect to conflict of laws principles. 

        6.4    No Recourse.    No recourse whatsoever, either directly or through the Company or any
trustee, receiver or assignee, shall be had in any event or in any manner against any past, present or future stockholder, director or officer of the Company for the payment of the redemption price,
principal of or interest on this Note or for any claim based thereon or otherwise in respect of this Note. This Note is a corporate obligation only. 

        6.5    Registration of Transfer.    The Company shall maintain books for the transfer and
registration of Notes. The Company may treat the person in whose name this Note is registered as the owner and Holder of the Note for the purpose of receiving principal of or interest on this Note and
for all other purposes whatsoever and the Company shall not be affected by any notice to the contrary. Upon the transfer of any Note in accordance with the terms hereof the Company shall issue and
register the Note in the names of the new holders. The Notes shall be signed manually by the Chairman, Chief Executive Officer, President or any Vice President of the Company. 

        IN WITNESS WHEREOF, EquiFin, Inc. has caused this Note to be signed in its corporate name by its President and to be dated the day
and year first above written. 

	 	 	EQUIFIN, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Walter M. Craig, Jr., President

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Assignment    
  

        For value received I hereby assign
                                         
                                          
              to
$                                         
                                          
              $             principal amount of the 11% Subordinated Note due
September 30, 2006 evidenced hereby and hereby irrevocably $             appoint attorney to transfer the Note on the books of the within named corporation with
full power of substitution in the premises. 

Dated:

In
the presence of: 

	

	
 	

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Exhibit 4.4

EQUIFIN, INC. 11% Subordinated Note Due September 30, 2006

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Exhibit 10.1    
  

 
 

EQUIFIN, INC.
  1997 STOCK OPTION PLAN    
  

1.    PURPOSES.    The
purposes of this 1997 Stock Option Plan (the "Plan") are to attract and retain the best available personnel for positions of substantial responsibility, to
provide additional incentive to the Directors and Employees of the Company or its subsidiaries (as defined in Section 2 below) to whom options may be granted under this Plan, and to promote the
success of the Company's business. 

        Options
granted hereunder may be either "incentive stock options," as defined in Section 422 of the Internal Revenue Code of 1986, as amended ("ISO's"), or
"Non-ISO's," at the discretion of the Board and as reflected in the terms of the written option agreement. 

        The
Plan is not intended as an agreement or promise of employment. Neither the Plan, nor any Option granted pursuant to the Plan, shall confer on any person any right to continue in the
employ of the Company. The right of the Company to terminate an Employee is not limited by the Plan, nor by any Option granted pursuant to the Plan, unless such right is specifically described by the
terms of any such Option. 

2.    DEFINITIONS.    As
used herein, the following definitions shall apply: 

        (a)  "Board"
shall mean the Committee, if one has been appointed, or the Board of Directors of the Company, if no Committee is appointed. 

        (b)  "Code"
shall mean the Internal Revenue Code of 1986, as amended. 

        (c)  "Committee"
shall mean the Committee appointed under Section 4(a) hereof, or, in the absence of such appointment, the Board of Directors of the Company. 

        (d)  "Common
Stock" shall mean the Common Stock of the Company par value $.01 per share. 

        (e)  "Company"
shall mean InterSystems, Inc., a Delaware corporation. 

        (f)    "Continuous
Service or Continuous Status as an Employee" shall mean the absence of any interruption or termination of service as an Employee or Director. Continuous
Status as an Employee or Director shall not be considered interrupted in the case of sick leave, military leave, or any other leave of absence approved by the Board. 

        (g)  "Director"
shall mean any person serving on the Board of Directors. 

        (h)  "Employee"
shall mean any person, including officers and directors, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director's fee
by the Company shall not be sufficient to constitute "employment" by the Company. 

        (i)    "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        (j)    "Fair
Market Value" shall mean the closing bid price of the Company's Common Stock as reported on the American Stock Exchange (or if the Common Stock is not traded on
the American Stock Exchange, on the Exchange Quotation System or Electronic Bulletin Board which reports or quotes the closing prices for a share of the Company's Common Stock) for any date (or, if no
shares of Common Stock are traded on such date, for the immediately preceding date on which shares of Common Stock were traded) as reported in the Wall Street Journal (or if the Wall Street Journal no
longer reports such price, any newspaper, trade journal or quotation service selected by the Committee); or, if no such price quotation is available, the price which the Committee acting in good faith
determines through any reasonable valuation method that a share of Common Stock might change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell
and both having reasonable knowledge of the relevant facts. 

 

        (k)  "Incentive
Stock Option" shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

        (l)    "Non-ISO"
shall mean an Option granted under the Plan to purchase stock which is not intended by the Committee to satisfy the requirements of
Section 422 of the Code. 

        (m)  "Option"
shall mean a stock option granted pursuant to the Plan. 

        (n)  "Option
Price" shall mean the price per Option Share at which an Option may be exercised. 

        (o)  "Optioned
Stock" shall mean the Common Stock subject to an Option. 

        (p)  "Optionee"
shall mean an Employee or Director who receives an Option. 

        (q)  "Parent"
shall mean a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code. 

        (r)  "Plan"
shall mean this InterSystems, Inc. 1997 Stock Option Plan, as amended from time to time. 

        (s)  "Rule 16b-3"
shall mean Rule 16b-3 of the General Rules and Regulations under the Exchange Act. 

        (t)    "Share"
shall mean a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan. 

        (u)  "Subsidiary"
shall mean a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code. 

        (v)  "Ten
Percent Shareholder" shall mean a person who owns (after taking into account the attribution rules of Section 424(d) of the Code) more than ten percent (10%)
of the total combined voting power of all classes of stock of the Company or a Subsidiary. 

3.    STOCK
AUTHORIZED.    Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of shares which may be Optioned and sold under the Plan shall
not exceed one million two hundred fifty thousand (1,250,000) shares of authorized, but unissued, or reacquired Common Stock. 

        If
an Option should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall
have been terminated, become available for further grant under the Plan. 

4.    ADMINISTRATION. 

        (a)    Procedure.    The Plan shall be administered by the Board of Directors or by a Committee of not fewer than two
members of the Board of Directors (the "Committee") to be designated by the Board of Directors of the Company. No member of the Committee shall be eligible at any time during his or her tenure to
receive Options under the Plan. In addition, no member of the Committee shall have received any Options under the Plan during the one (1) year period prior to his or her tenure on the
Committee. A majority vote of the members of the Committee shall be required for all of its actions. The provisions of the immediately preceding two sentences shall not be applicable to the extent
Rule 16b-3 is amended such that similar requirements are no longer applicable for the exemption offered thereunder. 

        A
majority of the entire Committee shall constitute a quorum, and the action of the majority of the Committee members present at any meeting at which a quorum is present shall be the
action of the Committee. All decisions, determinations, and interpretations of the Committee shall be final and conclusive on all persons affected thereby and shall, as to Incentive Stock Options, be
consistent with 

2

 

Section 422 of the Code. The Committee shall have all of the powers and duties set forth herein, as well as such additional powers and duties as the Board of Directors may delegate to it;
provided, however, that the Board of Directors expressly retains the right in its sole discretion (i) to elect and to replace the members of the Committee, and (ii) to terminate or amend
this Plan in any manner consistent with applicable law. The Board of Directors may from time to time elect members of the
Committee in substitution for and in addition to members previously elected, may fill vacancies in the Committee, however caused, and may discharge the Committee. Duly authorized actions of the
Committee shall constitute actions of the Board of Directors for the purpose of this Plan and the administration thereof. Notwithstanding anything to the contrary contained herein unless the last
sentence of the first paragraph of Section 4(a) is applicable, no member of the Committee shall serve as such under this Plan unless such person is a "disinterested person" within the meaning
of Rule 16b-3(c)(2)(i) of the Exchange Act. 

        (b)    Powers of the Committee.    Subject to the provisions of the Plan, the Committee shall have the authority, in
its discretion: (i) to grant Incentive Stock Options, in accordance with Section 422 of the Code, or to grant "Non-ISO's;" (ii) to determine the Fair Market Value of
the Common Stock; (iii) to determine the exercise price per share of Options to be granted which exercise price shall be determined in accordance with Section 8(a) of the Plan;
(iv) to determine the Employees and Directors to whom, and the time or times at which, Options shall be granted and the number of Shares to be represented by each Option; (v) to
interpret the Plan; (vi) to prescribe, amend and rescind rules and regulations relating to the Plan; (vii) to determine the terms and provisions of each Option granted (which need not be
identical) and, with the consent of the holder thereof, modify or amend each Option; (viii) to accelerate or defer (with the consent of the Optionee) the exercise date of any Option;
(ix) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Option previously granted by the Board; and (x) to make all other
determinations deemed necessary or advisable for the administration of the Plan. 

        (c)    Effect of the Committee's Decision.    All decisions, determinations and interpretations of the Committee shall
be final and binding on all Optionees and any other holders of any Options granted under the Plan. 

5.    ELIGIBILITY.    Options
may be granted only to consultants, advisors, Employees and to Directors who are not serving on the Committee, except to the extent provided in the
last sentence of the first paragraph of Section 4(a). Any Employee or Director, consultant or advisor who has been granted an Option may, if he is otherwise eligible, be granted an additional
Option or Options. 

        Each
grant of an Option shall be evidenced by an Option Agreement, and each Option Agreement shall (1) specify whether the Option is an Incentive Stock Option or a
Non-ISO and (2) incorporate such other terms and conditions as the Committee acting in its absolute discretion deems consistent with the terms of this Plan, including, without
limitation, a restriction on the number of shares of stock subject to the Option which first become exercisable during any calendar year. 

        To
the extent that the aggregate Fair Market Value of the stock of the Company subject to Incentive Stock Options granted any Optionee which first become exercisable in any calendar year
exceeds $100,000, such Options shall be treated as Non-ISO's. This $100,000 limitation shall be administered in accordance with the rules under Section 422(d) of the Code. 

6.    EFFECTIVE
DATE AND TERM OF PLAN.    The effective date of this Plan ("Effective Date") shall be the date it is adopted by the Board, provided the stockholders of the Company
(acting at a duly called meeting of such stockholders) approve this Plan within twelve (12) months after such Effective Date. The effectiveness of Options granted under this Plan prior to the
date such shareholder approval is obtained shall be contingent on such shareholder approval. 

3

 

        Subject
to the provisions of Section 13 hereof, no Option shall be granted under this Plan on or after the earlier of: 

        (a)  the
tenth anniversary of the Effective Date of this Plan in which event the Plan otherwise thereafter shall continue in effect until all outstanding Options shall have
been surrendered or exercised in full or no longer are exercisable, or 

        (b)  the
date on which all of the Common Stock reserved for issuance under Section 3 of this Plan has (as a result of the exercise or expiration of Options granted
under this Plan) has been issued or no longer is available for use under this Plan, in which event the Plan also shall terminate on such date. 

7.    TERM
OF OPTION.    An Option shall expire on the date specified in such Option, which date shall not be later than the tenth anniversary of the date on which the Option was
granted, except that if any Employee or Director, at any time an Incentive Stock Option is granted to him, owns stock representing more than ten percent of the total combined voting power of all
classes of Common Stock (or, under Section 424(d) of the Code is deemed to own stock representing more than ten percent of the total combined voting power of all such classes of Common Stock,
by reason of the ownership of such classes of stock, directly or indirectly, by or for any brother, sister, spouse, ancestor or lineal descendant of such Employee or Director, or by or for any
corporation, partnership, state or trust of which such Employee or Director is a shareholder, partner or beneficiary), the Incentive Stock Option granted him shall not be exercisable after the
expiration of five years from the date of grant or such earlier expiration as provided in the particular Option agreement. 

8.    EXERCISE
PRICE AND CONSIDERATION. 

        (a)  The
Option Price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the Committee, but shall be subject to the
following: 

        (i)    In
the case of an Incentive Stock Option 

        (A)  granted
to an Employee who, immediately before the grant of such Incentive Stock Option, owns stock (considering attribution under Section 424(d) of the Code)
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the Option Price shall be no less than 110% of the Fair Market Value
per Share on the date of grant. 

        (B)  granted
to an Employee, the per share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 

        (ii)  In
the case of an Option granted on or after the effective date of registration of any class of equity security of the Company pursuant to Section 12 of the
Exchange Act and prior to six months after the termination of such registration, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the
date of grant. 

        (b)  The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Board and may consist
entirely of cash, check or a promissory note. 

9.    EXERCISE
OF OPTION. 

        (a)  Procedure
for Exercise; Rights as a Shareholder.    Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by
the Committee, including performance criteria with respect to the Company and/or the Optionee, and as shall be permissible under the terms of the Plan. 

        An
Option may not be exercised for a fraction of a Share. 

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        An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise
the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Board, consist of any consideration
and method of payment allowable under Section 8(b) of the Plan. Until the issuance, which in no event will be delayed more than thirty (30) days from the date of the exercise of the
Option (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), of the stock certificate evidencing such Shares, no right to vote or
receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to
the date the stock certificate is issued, except as provided in the Plan. 

        Exercise
of an Option in any manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by
the number of Shares as to which the Option is exercised. 

        (b)  Termination
of Service as an Employee or Director. If the Continuous Service of any Employee or Director terminates, he may, but only within thirty (30) days (or
such other period of time not exceeding three (3) months as is determined by the Committee) after the date he ceases to be an Employee or Director of the Company, exercise his Option to the
extent that he was entitled to exercise it as of the date of such termination. To the extent that he was not entitled to exercise the Option at the date of such termination, or if he does not exercise
such Option (which he was entitled to exercise) within the time specified herein, the Option shall terminate. 

        (c)  Disability
of Optionee. Notwithstanding the provisions of Section 9(b) above, in the event an Optionee who is at the time of his becoming disabled an Employee or
Director is unable to continue his Continued Service with the Company as a result of his total and permanent disability (as defined in Section 105(d)(4) of the Code, as amended), he may, but
only within three (3) months (or such other period of time not exceeding twelve (12) months as is determined by the Committee) from the date of disability, exercise his Option to the
extent he was entitled to exercise it at the date of such disability and to the extent such Option has not already expired by its terms. To the extent that he was not entitled to exercise the Option
at the date of disability, or if he does not exercise such Option (which he was entitled to exercise) within the time specified herein, the Option shall terminate. 

        (d)  Death
of Optionee. In the event of the death of an Optionee: 

        (i)    during
the term of the Optionee who is at the time of his death an Employee or Director of the Company and who shall have been in Continuous Status as an Employee or
Director since the date of grant of the Option, the Option may be exercised, at any time within twelve (12) months following the date of death, by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that would have accrued had the Optionee continued living one (1) month
after the date of death; or 

        (ii)  within
thirty (30) days (or such other period of time not exceeding three (3) months as is determined by the Committee) after the termination of
Continuous Status as an Employee or Director, the Option may be exercised, at any time within three (3) months following the date of death, by the Optionee's estate or by a person who acquired
the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination and not yet expired. 

10.    TRANSFERABILITY
OF OPTIONS. 

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        (a)  Incentive
Stock Options.    The Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 

        (b)  Non-qualified
Stock Options.    The Committee may, in its discretion, authorize all or a portion of the options to be granted to the Optionee to be
on terms which permit transfer by such Optionee to (i) the spouse, children or grandchildren or parents of the Optionee ("Immediate Family Members"), (ii) a trust or trusts for the
exclusive benefit of such Immediate Family Members, or (iii) a partnership or limited liability company in which such Immediate Family Members are the only partners or members, provided that
(x) there is no consideration paid for any such transfer and (y) subsequent transfers shall be prohibited except in accordance with the laws of descent and distribution, or by will.
Following transfer, any such options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of Sections 4, 5, 8 and
9 hereof, the term "Optionee" shall be deemed to refer to the transferee. The events of termination of employment of Section 9 hereof shall continue to be applied with respect to the original
Optionee, following which the options shall be exercisable by the transferee only to the extent, and for the periods specified at Section 9 hereof. 

11.    ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION OR MERGER.    Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to
the Plan upon cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock split or the payment of a stock dividend with respect to the Common Stock or any other increase or decrease in the number
of issued 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. 

        In
the event of the proposed dissolution or liquidation of the Company, or 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, the Option will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the
exercise of its sole discretion in such instances, declare that any Option shall terminate as of a date fixed by the Board
and give each Optionee the right to exercise his Option as to all or any part of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable. 

12.    TIME
FOR GRANTING OPTIONS.    The date of grant of an Option shall, for all purposes, be the date on which the Board makes the determination granting such Option. Notice of
the determination shall be given to each Employee to whom an Option is so granted within a reasonable time after the date of such grant. 

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13.    AMENDMENT
AND TERMINATION OF THE PLAN. 

        (a)  The
Board may amend or terminate the Plan from time to time in such respects as the Board may deem advisable; provided that, the following revisions or amendments shall
require approval of the holders of a majority of the outstanding shares of the Company entitled to vote: 

        (i)    any
material increase in the number of Shares subject to the Plan, other than in connection with an adjustment under Section 11 of the Plan; or 

        (ii)  if
shareholder approval of such amendment is required for continued compliance with Rule 16b-3 or Section 422 of the Code. 

        (b)  Shareholder
Approval. Any amendment requiring shareholder approval under Section 13(a) of the Plan shall be solicited as described in Section 19 of the
Plan. 

        (c)  Effect
of Amendment or Termination. Any such amendment or termination of the Plan shall not affect Options already granted and such Options shall remain in full force
and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board, which agreement must be in writing and signed by the Optionee and
the Company. 

14.    RIGHTS
AS A STOCKHOLDER.    The holder of an option shall have no rights as a stockholder with respect to any shares covered by the option (including, without limitation,
any rights to receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate to him or her for such shares. No adjustment shall be
made for dividends or other rights for which the record date is prior to the date such stock certificate is issued. 

15.    CANCELLATION
AND NEW GRANT OF OPTIONS, ETC.    The Board of Directors shall have the authority to effect, at any time and from time to time, with the consent of the affected
Optionees, (i) the cancellation of any or all outstanding options under the Plan and the grant in substitution therefore of new options under the Plan covering the same or different numbers of
shares and having an option exercise price per share which may be lower or higher than the exercise price per share of the cancelled options or (ii) the amendment of the terms of any and all
outstanding options under the Plan to provide an option exercise price per share which is higher or lower than the then-current exercise price per share of such outstanding options. 

16.    CONDITIONS
UPON ISSUANCE OF SHARES.    Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, 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 relevant provisions of law. 

17.    RESERVATION
OF SHARES.    The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan. 

        Inability
of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

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18.    OPTION
AGREEMENT.    Options shall be evidenced by written Option agreements in such form as the Committee shall approve. The stock option agreement authorized under the
Plan shall contain such other provisions, including, without limitation, restrictions upon the exercise of the Option, as the Committee shall deem advisable. Any such stock option agreement shall
contain such limitations and restrictions upon the exercise of the Option as shall be necessary in order that such option will be an Incentive Stock Option as defined in Section 422 of the
Code. 

19.    SHAREHOLDER
APPROVAL.    Continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve months before or after the date the Plan is
adopted. If such shareholder approval is obtained at a duly held stockholders' meeting, it may be obtained by the affirmative vote of the holders of a majority of the outstanding shares of the Company
present or represented and entitled to vote thereon. The approval of such stockholders of the Company shall be (1) solicited substantially in accordance with Section 14(a) of the
Exchange Act and the rules and regulations promulgated thereunder, or (2) solicited after the Company has furnished in writing to the holders entitled to vote substantially the same information
concerning the Plan as that which would be required by the rules and regulations in effect under Section 14(a) of the Exchange Act at the time such information is furnished. 

20.    INDEMNIFICATION
OF COMMITTEE.    In addition to such other rights of indemnification as they may have as Directors or as members of the Committee, the members of the
Committee shall be indemnified by the Company against the reasonable expenses, including attorneys' fees actually and necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any Option
granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Board member is liable
for negligence or misconduct in the performance of his duties; provided that within 60 days after institution of any such action, suit or proceeding a Board member shall in writing offer the
Company the opportunity, at its own expense, to handle and defend the same. 

21.    APPLICATION
OF FUNDS.    The proceeds received by the Company from the sale of Common Stock pursuant to Options will be used for general corporate purposes. 

22.    NO
OBLIGATION TO EXERCISE OPTION.    The granting of an Option shall impose no obligation upon the Optionee to exercise such Option. 

23.    OTHER
COMPENSATION PLANS.    The adoption of the Plan shall not affect any other stock option or incentive or other compensation plans in effect for the Company or any
Subsidiary, nor shall the Plan preclude the Company from establishing any other forms of incentive or other compensation for employees and directors of the Company or any Subsidiary. 

24.    SINGULAR,
PLURAL; GENDER.    Whenever used herein, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender. 

25.    HEADINGS,
ETC., NO PART OF PLAN.    Headings of Articles and Sections hereof are inserted for convenience and reference; they constitute no part of the Plan. 

26.    GOVERNING
LAW.    The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, except to the extent preempted by Federal law. The Plan
is intended to comply with Rule 16b-3. Any provisions inconsistent with Rule 16b-3 shall be inoperative and shall not affect the validity of the Plan, unless the
Board of Directors shall expressly resolve that the Plan is no longer intended to comply with Rule 16b-3. 

8

 
 
 

EQUIFIN, INC.    
  
  
    FORM OF PROXY    
  

        The undersigned hereby appoints WALTER M. CRAIG, JR. and DANIEL T. MURPHY, and each of them with full power of substitution, proxies to vote all shares of common
stock of EquiFin, Inc. (the "Company") owned by the undersigned at the Annual Meeting of Stockholders on November 19, 2002, and at any adjournment thereof on the items of business set
forth on the reverse and on such other business as may properly come before the meeting. 

	/x/	 	PLEASE MARK YOUR	 	NOMINEES:	 	WALTER M. CRAIG, JR.
	 	 	VOTES AS IN THIS	 	 	 	 	 	ALLEN H. VOGEL
	

 	
 	

 	
 	

FOR	
 	

 	
 	

WITHHOLD AUTHORITY
	

 	
 	

Election of all nominees as directors until their successors shall be duly elected	
 	

/ /	
 	

 	
 	

                / /

TO WITHHOLD AUTHORITY TO VOTE FOR ANY SPECIFIC NOMINEE(S), PRINT NAMES BELOW 

Proposal
to approve, adopt, and ratify an amendment to the Company's 1997 Stock Option Plan 

	FOR	 	AGAINST	 	ABSTAIN
	/ /	 	/ /	 	/ /

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. IF THE UNDERSIGNED FAILS TO SPECIFY HOW THE PROXY IS TO BE VOTED, IT WILL BE VOTED FOR THE ELECTION OF THE NOMINEES
AND FOR THE PROPOSALS. 

                                        
                                (L.S.)
                                         
       (L.S.)
DATE                         
2002

SIGNATURE OF STOCKHOLDER                        SIGNATURE OF STOCKHOLDER 

	NOTE:	 	(Please sign your name exactly as it appears on the proxy. When signing as attorney, agent, executor, administrator, trustee, guardian or corporate officer, please give full title as such. Each joint owner should sign the
proxy).

9

QuickLinks

Exhibit 10.1

EQUIFIN, INC. 1997 STOCK OPTION PLAN

EQUIFIN, INC. FORM OF PROXY

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