Document:

Exhibit 10.2

    

  
    

     

    

    PASSUR AEROSPACE, INC. 2019 STOCK INCENTIVE PLAN

      INCENTIVE STOCK OPTION AGREEMENT

      FOR

      BRIAN COOK

     

    Agreement

     

    1. Grant of Options. PASSUR Aerospace, Inc. (the “Company”) hereby grants, as of
        February 12, 2020 (the “Date of Grant”), to BRIAN COOK (the “Optionee”) options (the “Options”) to purchase up to 500,000 shares of the Company’s common stock, $0.01 par value per share (the “Shares”), at the following
        exercise prices per share (the “Exercise Price”):

     

    	
            Number of Options

          	
            Exercise Price

          
	
            100,000

          	
            $1.05 per Share

          
	
            100,000

          	
            $2.00 per Share

          
	
            100,000

          	
            $2.50 per Share

          
	
            100,000

          	
            $3.00 per Share

          
	
            100,000

          	
            $3.50 per Share

          

    

    

    The Options shall be subject to the terms and conditions set forth herein. The Options are being granted pursuant to the Company’s 2019 Stock Incentive Plan (the “Plan”), which is incorporated herein for all purposes. The Options are Incentive Stock Options, and not Non-Qualified Stock Options. The Optionee hereby acknowledges receipt of a
      copy of the Plan and agrees to be bound by all of the terms and conditions hereof and thereof and all applicable laws and regulations.

     

    2. Definitions. Unless otherwise provided herein, terms used herein that are defined in the
        Plan and not defined herein shall have the meanings attributed thereto in the Plan.

     

    3. Exercise Schedule. Except as otherwise provided in Section 6 hereof or in the Plan, the
        Options are exercisable in installments as provided below, which shall be cumulative. To the extent that the Options have become exercisable with respect to a percentage of Shares as provided below, the Options may thereafter be exercised by the
        Optionee, in whole or in part, at any time or from time to time prior to the expiration of the Options as provided herein. The following table indicates each date (the “Vesting Date”) upon which the Optionee shall be entitled to exercise the
        Options with respect to the percentage of Shares granted as indicated beside the date, provided that the Continuous Service (as defined below) of the Optionee continues through and on the applicable Vesting Date:

     

    	
            Percentage of Shares

          	
            Vesting Date

          
	
            20%

          	
            February 12, 2021

          
	
            20%

          	
            February 12, 2022

          
	
            20%

          	
            February 12, 2023

          
	
            20%

          	
            February 12, 2024

          
	
            20%

          	
            February 12, 2025

          

     

    Except as otherwise specifically provided herein or in the Optionee’s Service Agreement (as defined below), there shall be no proportionate or partial vesting in the periods prior to
      each Vesting Date, and all vesting shall occur only on the appropriate Vesting Date.   Except as otherwise specifically provided in the Optionee’s Service Agreement, upon the termination of the Optionee’s Continuous Service, any unvested portion of
      the Options shall terminate and be null and void.

     

    
      
        

    

    
    4. Method of Exercise. The vested but unexercised portions of the Options shall be
        exercisable in whole or in part in accordance with the exercise schedule set forth in Section 3 hereof by written notice which shall state the election to exercise the Options, the number of Shares in respect of which the Options are being
        exercised, and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by the Optionee
        and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. The Options shall be deemed to be exercised after both (a) receipt by the Company of
        such written notice accompanied by the Exercise Price and (b) arrangements that are satisfactory to the Committee in its sole discretion have been made for the Optionee’s payment to the Company of the amount, if any, that is necessary to be
        withheld in accordance with applicable Federal or state withholding requirements. No Shares shall be issued pursuant to the Options unless and until such issuance and such exercise shall comply with all relevant provisions of applicable law,
        including the requirements of any stock exchange upon which the Shares then may be traded.

     

    5. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a
        combination thereof, at the election of the Optionee: (a) cash; (b) check; (c) to the extent permitted by the Committee, with Shares owned by the Optionee, or the withholding of Shares that otherwise would be delivered to the Optionee as a result
        of the exercise of the Options; or (d) pursuant to a “cashless exercise” procedure, by delivery of a properly executed exercise notice together with such other documentation, and subject to such guidelines, as the Committee shall require to effect
        an exercise of the Options and delivery to the Company by a licensed broker acceptable to the Company of proceeds from the sale of Shares sufficient to pay the Exercise Price and any applicable income or employment taxes.

     

    6. Termination of Option.

     

    (a) General. Any unexercised portion of the Options shall automatically and
        without notice terminate and become null and void at the time of the earliest to occur of the following:

     

    
      	
              (i)

               

            	
              unless the Committee otherwise determines in writing in its sole discretion, ninety (90) days after the date on which the Optionee’s Continuous Service
                is terminated other than (A) by the Company or a Related Company for Cause (as defined below), whether before or after the expiration of the term of the Optionee’s Service Agreement, or (B) by the Optionee for any reason before the
                expiration of the term of the Optionee’s Service Agreement;

               

            

    

    
      	
              (ii)

               

            	
              immediately upon the termination of the Optionee’s Continuous Service by the Company or a Related Company for Cause;

               

            

    

    
      	
              (iii)

               

            	
              February 12, 2030;

               

            

    

    
      	
              (iv)

               

            	
              immediately in the event that the Optionee shall file any lawsuit or arbitration claim against the Company or any Subsidiary, or any of their respective
                officers, directors or shareholders; or

               

            

    

    
      	
              (v)

               

            	
              immediately upon any material breach by the Optionee of any non-competition, non-solicitation, non-disparagement, confidentiality or other similar
                obligations with respect to the Company or a Related Company (including those obligations set forth in the Optionee’s Service Agreement).

               

            

    

    
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    (b) Definitions. For purposes of this Agreement, the following terms shall have the meanings indicated:

     

    (i) “Cause” shall have the equivalent meaning or the same meaning as “cause” or “for cause” set forth in the Optionee’s
        Service Agreement or, in the absence of any such agreement or any such definition in such agreement, such term shall mean (A) the failure by the Optionee to perform, in a reasonable manner, his or her duties as assigned by the Company or a Related
        Company, (B) any violation or breach by the Optionee of his or her employment, consulting or other similar agreement with the Company or a Related Company, if any, (C) any violation or breach by the Optionee of any non-competition,
        non-solicitation, non-disclosure and/or other similar agreement with the Company or a Related Company, (D) any act by the Optionee of dishonesty or bad faith with respect to the Company or a Related Company, (E) use of alcohol, drugs or other
        similar substances in a manner that adversely affects the Optionee’s work performance, or (F) the commission by the Optionee of any act, misdemeanor, or crime reflecting unfavorably upon the Optionee or the Company or any Related Company. The good
        faith determination by the Committee of whether the Optionee’s Continuous Service was terminated by the Company for “Cause” shall be final and binding for all purposes hereunder.

     

    (ii) “Continuous Service” means the uninterrupted provision of services to the Company or any Related Company in any
        capacity of employee, director, consultant or other service provider. Continuous Service shall not be considered to be interrupted in the case of (A) any approved leave of absence (including, without limitation, sick leave, military leave, or any
        other authorized personal leave), (B) transfers among the Company, any Related Companies, or any successor entities, in any capacity of employee, director, consultant or other service provider, or (C) any change in status as long as the individual
        remains in the service of the Company or a Related Company in any capacity of employee, director, consultant or other service provider.

     

    (iii) “Disability” shall have the equivalent meaning or the same meaning as “disability” set forth in the Optionee’s Service
        Agreement or, in the absence of any such agreement or any such definition in such agreement, such term shall mean a permanent and total disability (within the meaning of Section 22(e) of the Code), as determined by a medical doctor satisfactory to
        the Committee.

     

    (iv) “Service Agreement” shall mean, as of a particular date, any employment, consulting or other agreement for the
        performance of services then in effect between the Optionee, on the one hand, and the Company or a Related Company, on the other hand.

    
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    7. Transferability. Unless otherwise determined by the Committee, the Options granted hereby
        are not transferable otherwise than by will or under the applicable laws of descent and distribution, and during the lifetime of the Optionee the Options shall be exercisable only by the Optionee, or the Optionee’s guardian or legal representative.
        In addition, the Options shall not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and the Options shall not be subject to execution, attachment or similar process. Upon any attempt to
        transfer, assign, negotiate, pledge or hypothecate the Options, or in the event of any levy upon the Options by reason of any execution, attachment or similar process contrary to the provisions hereof, the Options shall immediately become null and
        void. The terms of the Options shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

     

    8. No Rights of Stockholders. Neither the Optionee nor any personal representative (or
        beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any Shares purchasable or issuable upon the exercise of the Options, in whole or in part, prior to the date on which the Shares
        are issued.

     

    9. No Right to Continued Employment. Neither the Options nor this Agreement shall confer upon
        the Optionee any right to continued employment or service with the Company.

     

    10. Law Governing. This Agreement shall be governed in accordance with and governed by the
        internal laws of the State of New York.

     

    11. Incentive Stock Option Treatment. The terms of the Options shall be interpreted in a manner
        consistent with the intent of the Company and the Optionee that the Options qualify as an Incentive Stock Option under Section 422 of the Code. If any provision of the Plan or this Agreement shall be impermissible in order for the Options to
        qualify as an Incentive Stock Option, then the Options shall be construed and enforced as if such provision had never been included in the Plan or the Options. If and to the extent that the number of Options granted pursuant to this Agreement
        exceeds the limitations contained in Section 422 of the Code on the value of Shares with respect to which the Options may qualify as Incentive Stock Options, the Options shall be Non-Qualified Stock Options.

     

    12. Interpretation / Provisions of Plan Control. This Agreement is subject to all the terms,
        conditions and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan adopted by the Committee as may be in effect from time to time.  If and
        to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Optionee accepts the Options subject to
        all of the terms and provisions of the Plan, this Agreement and the Optionee’s Service Agreement.  If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Optionee’s Service Agreement,
        the Service Agreement shall control, and this Agreement shall be deemed to be modified accordingly. The Optionee hereby accepts as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the
        Plan and this Agreement, unless shown to have been made in an arbitrary and capricious manner.

    
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    13. Notices. Any notice under this Agreement shall be in writing and shall be deemed to have
        been duly given when delivered personally or when deposited in the United States mail, registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary at One Landmark Square, 19th Floor, Stamford, CT 06901, or if
        the Company should move its principal office, to such principal office, and, in the case of the Optionee, to the Optionee’s last permanent address as shown on the Company’s records, subject to the right of either party to designate some other
        address at any time hereafter in a notice satisfying the requirements of this Section.

     

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    IN WITNESS WHEREOF, the undersigned have executed this Agreement as of this 12th day of February, 2020.

     

    PASSUR Aerospace, Inc.

     

    

    

     

    By:  /s/ Louis J. Petrucelly

            Name: Louis J. Petrucelly

            Title:  Chief Financial Officer

    

    

    

    

    The Optionee acknowledges receipt of a copy of the Plan and represents that he or she has reviewed the provisions of the Plan and this Agreement in their entirety,
      is familiar with and understands their terms and provisions, and hereby accepts the Options subject to all of the terms and provisions of the Plan and this Agreement.  The Optionee further represents that he or she has had an opportunity to obtain
      the advice of counsel prior to executing this Agreement.

     

    Dated:  February 12, 2020

     

    OPTIONEE:

     

    

    

     

    /s/ Brian Cook

    Brian Cook

    

    

    
      [Signature Page to Incentive Stock Option Agreement]

       

      

       

      

       6Exhibit

Exhibit 4.3

Description of Prudential Financial, Inc. Common Stock
The following briefly summarizes some provisions of Prudential Financial, Inc.’s (the “Company”, “Prudential Financial, Inc.”, “Prudential Financial”, “we”, “us” or “our”) amended and restated certificate of incorporation and amended and restated by-laws that would be important to holders of our Common Stock. The following description may not be complete and is subject to, and qualified in its entirety by reference to, the terms and provisions of our amended and restated certificate of incorporation and amended and restated by-laws which are exhibits to the Annual Report on Form 10-K. 
Our Common Stock
We have authorized 1,500,000,000 shares of Common Stock with a par value of $0.01 per share. As of January 31, 2018, approximately 422,000,000 shares of Common Stock were outstanding. The outstanding shares of Common Stock are fully paid and non-assessable.
Our Common Stock is listed on the New York Stock Exchange under the symbol “PRU”.
Dividend Rights
Holders of Common Stock may receive dividends as declared by our board of directors out of funds legally available for that purpose under the New Jersey Business Corporation Act, subject to the rights of any holders of any preferred stock.
Voting Rights
Each share of Common Stock gives the owner of record one vote on all matters submitted to a shareholder vote. The Common Stock votes together as a single class on all matters as to which common shareholders are generally entitled to vote.
Actions requiring approval of shareholders will generally require approval by a majority vote at a meeting at which a quorum is present. Our amended and restated certificate of incorporation provides that, with respect to shares of Common Stock and any shares of preferred stock voting together with the Common Stock as a class, the holders of at least 50% of the shares entitled to cast votes at a meeting of shareholders shall constitute a quorum at all meetings of shareholders for the transaction of business.
Liquidation Rights
In the event of a liquidation, dissolution or winding-up of Prudential Financial, each share of Common Stock will be entitled to receive an equal share in our net assets that remain after paying all liabilities and the liquidation preferences of any preferred stock.
Neither a merger nor a consolidation of us with any other entity, nor a sale, transfer or lease of all or any part of our assets would alone be deemed a liquidation, dissolution or winding-up for these purposes.
Pre-emptive Rights
Holders of our Common Stock have no pre-emptive rights with respect to any shares of capital stock that we may issue in the future.
Provisions of Our Amended and Restated Certificate of Incorporation and Amended and Restated By-Laws
A number of provisions of our amended and restated certificate of incorporation and amended and restated by-laws concern corporate governance and the rights of shareholders. Some provisions, including those granting  our board of directors the ability to issue shares of preferred stock and to set the voting rights, preferences and other terms of preferred stock without shareholder approval, may be viewed as having an anti-takeover effect and may discourage takeover attempts not first approved by our board of directors, including takeovers that some shareholders may consider to be in their best interests. To the extent takeover attempts are discouraged, fluctuations in the market price of the Common Stock, which may result from actual or rumored takeover attempts, may be inhibited.
The amended and restated certificate of incorporation and the amended and restated by-laws have provisions that also could delay or frustrate the removal of directors from office or the taking of control by shareholders, even if that action would be beneficial to shareholders. These provisions also could discourage or make more difficult a merger, tender offer or proxy contest, even if they were favorable to the interests of shareholders, and could potentially depress the market price of the Common Stock.
The following is a summary of the material terms of these provisions of our amended and restated certificate of incorporation and amended and restated by-laws. The statements below are only a summary, and we refer you to the amended 

and restated certificate of incorporation and amended and restated by-laws. Each statement is qualified in its entirety by such reference. 
Board of Directors; Number of Directors; Removal; Vacancies
Our amended and restated by-laws provide that the board of directors consists of not less than 10 nor more than 15 members, with the exact number to be determined by the board of directors from time to time. All directors are elected for terms expiring at the next annual meeting of shareholders and until such directors’ successors have been elected and qualified. The amended and restated by-laws also provide that the directors may be removed “with or without cause” upon the affirmative vote of a majority of the votes cast at a meeting of shareholders by the holders of shares entitled to vote for the election of directors.
Unless otherwise required by law, vacancies on the board of directors, including vacancies resulting from an increase in the number of directors or the removal of directors, may only be filled by an affirmative vote of a majority of the directors then in office, even though less than a quorum, or by a sole remaining director, subject to any rights to director election held by any one or more classes or series of preferred stock.
Limitations on Call of Special Meetings of Shareholders
The amended and restated by-laws provide that special meetings of shareholders may only be called by the chairman of the board of directors, the chief executive officer, the president, or the board of directors, and shall be called by the chairman of the board of directors or the secretary of the Company upon the written request of shareholders that own at least 10% of the shares entitled to vote on the matters to be brought before the proposed special meeting. For purposes of such shareholder request, shareholders are deemed to own those shares held net long as described in the amended and restated by-laws.
Limitation on Written Consent of Shareholders
The amended and restated certificate of incorporation generally provides that action by holders of Common Stock cannot be taken by written consent without a meeting unless such written consents are signed by all shareholders entitled to vote on the action to be taken.
Advance Notice Requirements for Nomination of Directors and Presentation of New Business at Meetings
Our amended and restated by-laws establish advance notice procedures for shareholder proposals concerning nominations for election to the board of directors and new business to be brought before meetings of shareholders. These procedures require that notice of such shareholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, we must receive the notice at our principal executive offices not less than 120 nor more than 150 days prior to the anniversary date of the annual meeting of shareholders before the one in which the shareholder proposal is to be considered.
In order for a director nominee to have access to the Company’s proxy statement, the amended and restated by-laws require the nominee to be nominated by not more than 20 shareholders, each of whom has a non-control intent and has had a net long position of 3% or more of the Company’s outstanding capital stock continuously for at least three years. These provisions make it procedurally more difficult for a shareholder to place a proposed nomination or new business proposal on the meeting agenda and therefore may reduce the likelihood that a shareholder will seek to take independent action to replace directors or with respect to other matters that are not supported by management.
Limitation of Liability and Indemnification Matters
Amended and Restated Certificate of Incorporation. Our amended and restated certificate of incorporation states that a director will not be held personally liable to us or any of our shareholders for damages for a breach of duty as a director except for liability:
		
	•
	for any breach of the director’s duty of loyalty to us or our shareholders,

		
	•
	for any act or omission not in good faith or involving a knowing violation of law, or

		
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	for any transaction from which such director derived or received an improper personal benefit.

This provision prevents a shareholder from pursuing an action for damages for breach of duty against one of our directors unless the shareholder can demonstrate one of these specified bases for liability. The inclusion of this provision in the amended and restated certificate of incorporation may discourage or deter shareholders or management from bringing a lawsuit against a director for a breach of his or her duties, even though an action, if successful, might otherwise benefit us and our shareholders. This provision does not affect the availability of non-monetary remedies like an injunction or rescission based upon a director’s breach of his or her duty of care.

Amended and Restated By-Laws. Our amended and restated by-laws provide that we must indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding because such person is or was a director or officer of us, or is or was serving at our request as a director or officer, employee or agent of another entity. This indemnification covers expenses, judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by the indemnified person in connection with such action, suit or proceeding. To receive indemnification, a person must have acted in good faith and in a manner the person reasonably believed to be in or not opposed to our best interests. In the case of any criminal action or proceeding, the indemnified person also must have had no reasonable cause to believe his or her conduct was unlawful. The amended and restated by-laws limit indemnification in cases when a person has been held liable to us.
Anti-Takeover Effect of New Jersey Business Corporation Act
New Jersey Shareholders Protection Act
We are subject to the provisions of Section 14A-10A of the New Jersey Business Corporation Act, which is known as the “Shareholders Protection Act”.
Generally, the Shareholders Protection Act prohibits a publicly held New Jersey corporation with its principal executive offices or significant business operations in New Jersey, like us, from engaging in any “business combination” with any “interested stockholder” of that corporation for a period of five years following the time at which that stockholder became an “interested stockholder”. An exception applies if (1) the business combination is approved by the board of directors before the stockholder becomes an “interested stockholder”; or (2) the transaction or series of related transactions which caused the stockholder to become an “interested stockholder” was approved by the board of directors prior to the stockholder becoming an “interested stockholder” and any subsequent business combinations with that interested stockholder are approved by the board of directors, provided that any such subsequent business combination is approved by (a) the board of directors, or a committee of that board, consisting solely of persons who are not employees, officers, directors, stockholders, affiliates or associates of that interested stockholder, and (b) the affirmative vote of the holders of a majority of the voting stock not beneficially owned by such interested stockholder at a meeting called for such purpose.
Covered business combinations include certain mergers, dispositions of assets or shares and recapitalizations. An “interested stockholder” is (1) any person that directly or indirectly beneficially owns 10% or more of the voting power of the outstanding voting stock of Prudential Financial; or (2) any “affiliate” or “associate” of ours that directly or indirectly beneficially owned 10% or more of the voting power of the then-outstanding stock of Prudential Financial at any time within a five-year period immediately prior to the date in question.
In addition, under the Shareholders Protection Act, we may not engage in a business combination with an interested stockholder at any time unless:
		
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	our board of directors approved the business combination prior to the time the stockholder became an interested stockholder;

		
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	the holders of two-thirds of our voting stock (which includes Common Stock) not beneficially owned by the interested stockholder affirmatively vote to approve the business combination at a meeting called for that purpose;

		
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	the consideration received by the non-interested stockholders in the business combination meets the standards of the statute, which is designed to ensure that all other shareholders receive at least the highest price per share paid by the interested stockholder; or

		
	•
	a business combination is approved by (a) the board of directors, or a committee of the board of directors consisting solely of persons who are not employees, officers, directors, stockholders, affiliates or associates of the interested stockholder prior to the consummation of the business combination; and (b) the affirmative vote of the holders of a majority of the voting stock (excluding that beneficially owned by the interested stockholder) at a meeting called for that purpose if the transaction or series of related transactions with the interested stockholder which caused the person to become an interested stockholder was approved by the board of directors prior to the consummation of that transaction or series of related transactions.

A New Jersey corporation that has publicly traded voting stock may not opt out of these restrictions.
Board Consideration of Certain Factors
Under the New Jersey Business Corporation Act, in discharging their duties, our directors may consider the effects that an action taken by us may have on interests and people in addition to our shareholders, such as employees, customers and the community. The directors may also consider the long-term as well as the short-term interests of us and our shareholders, including the possibility that these interests may best be served by our continued independence.

Transfer Agent
The transfer agent and registrar for our Common Stock is Computershare Limited.

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