Asta Funding Inc – ‘8-K’ for 3/3/06

On:  Friday, 3/3/06, at 4:27pm ET   ·   For:  3/3/06   ·   Accession #:  1125282-6-1419   ·   File #:  0-26906

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         5     18K 
 2: EX-10.1     Material Contract                                     14     59K 
 3: EX-10.2     Material Contract                                      2     11K 

8-K   —   Current Report
Document Table of Contents

8-K
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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
 SECURITIES EXCHANGE ACT OF 1934

 Date of Report (Date of earliest event reported): March 3, 2006

ASTA FUNDING, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware                      0-26906                     22-3388607
(State Or Other                   (Commission                 (IRS Employer     
Jurisdiction Of                   File Number)              Identification No.) 
Incorporation)

210 Sylvan Avenue                                                     
Englewood Cliffs, New Jersey                                      07632         
(Address of Principal Executive Offices)                       (Zip Code)       

 Registrant's telephone number, including area code (201) 567-5648

Check the appropriate box below if the Form 8-K filing is intended to           
simultaneously satisfy the filing obligation of the registrant under any of the 
following provisions (see General Instruction A.2. below):                      

[ ] Written communications pursuant to Rule 425 under the Securities Act        
(17 CFR 230.425)                                                        

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act          
(17 CFR 240.14a-12)                                                     

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the         
Exchange Act (17 CFR 240.14d-2(b))                                      

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the         
Exchange Act (17 CFR 240.13e-4(c))                                      

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8-K
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ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.                          

EQUITY COMPENSATION PLAN                                                        
On March 1, 2006, at our annual stockholder's meeting, the stockholders of Asta 
Funding, Inc. (the "Company") approved the adoption of the Company's Equity     
Compensation Plan (the "Plan"). The Plan was adopted to supplement the Company's
existing 2002 Stock Option Plan. In addition to permitting the grant of stock   
options ("Options") as are permitted under the 2002 Stock Option Plan, the Plan 
allows the grant of Stock Purchase Rights, Stock Appreciation Rights ("SARs" and
together with Stock Purchase Rights, "Rights"), and Restricted and Unrestricted 
Stock Awards ("Awards"). The Plan will be administered by a committee (the      
"Committee") appointed by our Board of Directors. The Plan was adopted by the   
Board of Directors on December 1, 2005, and has a term of ten years from the    
date of adoption. Accordingly, no grants may be made under the Plan after       
November 30, 2015, but the Plan will continue thereafter while previously       
granted Options, Rights and Awards remain subject to the Plan.                  

The Plan authorizes the Committee to grant Options that are "Incentive Stock    
Options" within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code"), Nonstatutory Stock Options (any Option that is not an  
Incentive Stock Option) or a combination of both. Grants of Non-employee        
Director Options, grants of Options, Rights, and Awards under the Plan are      
discretionary. All officers, employees, directors and consultants of the Company
and its subsidiaries are eligible to receive Options, Rights, and Awards under  
the Plan.                                                                       

The aggregate number of shares of Common Stock available for issuance under the 
Plan is 1,000,000, subject to customary adjustments for stock splits, stock     
dividends or similar transactions. As of March 1, 2006, no awards have been     
issued by the Company. No employee, director or consultant may receive Options, 
Rights or Awards of or relating to more than 100,000 shares of Common Stock in  
the aggregate in any year. The Committee determines the exercise price of       
Options granted under the Plan; provided, however, that the exercise price of   
Non-employee Director Options and Incentive Stock Options must be equal to the  
fair market value per share of Common Stock on the date of grant (or 110% of    
fair market value in the case of Incentive Stock Options granted to a           
ten-percent stockholder). No option may be exercisable for more than ten years  
(five years in the case of an Incentive Stock Option granted to a ten-percent   
stockholder) from the date of grant, and no employee may receive Incentive Stock
Options that first become exercisable in any calendar year in an amount         
exceeding $100,000.                                                             

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Stock Purchase Rights and SARs may be granted by the Committee either alone, or 
in tandem with, other Options or Awards under the Plan. Unless otherwise        
determined by the Committee, the Company will have the right to repurchase the  
shares of Common Stock acquired upon exercise of the Stock Purchase Right upon  
the recipient's termination of service for any reason. The Committee determines 
the number of shares of Common Stock to which a SAR relates and the SAR's       
exercise period, which shall not exceed 10 years from the date of grant. Upon   
exercise of a SAR, the holder will receive a number of shares of Common Stock   
equal to (i) the number of shares for which the SAR is exercised times the      
appreciation in the fair market value of a share of Common Stock between the    
date the SAR was granted and it's date of exercise; divided by (ii) the fair    
market value of a share of Common Stock on the date that the SAR is exercised.  
The Committee may also grant to any eligible employee or consultant a Restricted
Stock Awards (which are generally subject to forfeiture should the recipient    
terminate service with the Company prior to the Award having vested or if the   
performance goals established by the Committee as a condition of vesting are not
achieved) or Unrestricted Stock Awards (which are grants of shares of Common    
Stock that are not subject to forfeiture).                                      

To the extent that the Committee grants Awards that are subject to the          
satisfaction of performance goals specified by the Committee ("Performance      
Awards"), the Committee shall establish the specified levels of performance     
goals. Performance goals may be weighted for different factors and measures. The
Committee may also increase or decrease an Award to any individual, except that 
an Award intended to be "qualified performance-based compensation" for purposes 
of Section 162(m) of the Code may not be increased.                             

The foregoing description of the terms of the Plan is qualified in its entirety 
by reference to the actual terms of the Plan, which is attached as Exhibit 10.1 
to this report.                                                                 

CONSULTING AGREEMENT                                                            
On March 1, 2006, the Company entered into a consulting agreement with Herman   
Badillo, Esq. a non-independent director of the Company. Mr. Badillo has        
extensive experience regarding matters related to the Company and the Company   
seeks to benefit from Mr. Badillo's expertise by retaining him as a consultant. 
Mr. Badillo will provide advice and consulting services to the Company as       
requested with respect to various matters related to the Company's business. The
agreement shall be for a term of (12) months, renewable upon reasonable terms   
and conditions as may be agreed upon by the Company and Mr. Badillo. As full    
consideration for the consulting services provided, the Company shall pay Mr.   
Badillo the sum of $5,000 per month with an initial payment of $15,000 upon     
execution of the agreement. The consulting agreement is attached as Exhibit 10.2
to this report.                                                                 

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.                                  

(d)  Exhibits                                                     

As described above, the following Exhibit is furnished as part of this Current  
Report on Form 8-K:                                                             

Exhibit 10.1 - Asta Funding, Inc. Equity Compensation Plan.       

Exhibit 10.2 - Consulting Agreement between Asta Funding, Inc. and
Herman Badillo,  Esq. dated March 1, 2006.                        

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 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
Registrant has duly caused this report to be signed on its behalf by the        
undersigned hereunto duly authorized.                                           

ASTA FUNDING, INC.

                                  By: /s/ Mitchell Cohen
                                           -----------------------
                                  Mitchell Cohen
                                           Chief Financial Officer

Date: March 3, 2006                                                             

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 EXHIBIT INDEX

Exhibit Number    Description                                                   

10.1.             Asta Funding, Inc. Equity Compensation Plan.                  

10.2              Consulting Agreement between Asta Funding, Inc. and           
Herman Badillo, dated March 1, 2006.        

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Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
		11/30/15		2
Filed on / For Period End:		3/3/06		1		4
		3/1/06		2		5			10-Q,  DEF 14A
		12/1/05		2
									List all Filings