Document:

Exhibit
10.2

OPTION TO ACQUIRE SHARES

OF COMMON STOCK OF
NATIONAL HEALTH PARTNERS, INC.

WHEREAS, National Health Partners, Inc., an Indiana
corporation (the “Company”) wishes to grant this option to Alex Soufflas (“Holder”)
the Holder.

NOW, THEREFORE, in consideration of the foregoing, the
agreement set forth below and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereby agree as follows:

1.             Grant
of Option.  The Company hereby grants
to the Holder on this 4th day of September, 2007 (the “Grant Date”) an
option (this “Option”) to purchase 500,000 shares (“Shares”) of the Company’s
common stock, $.001 par value per share (“Common Stock”), on the terms and
subject to the conditions set forth herein.

2.             Term of Option.  This option shall have a maximum term of ten
(10) years measured from the Grant Date (the “Expiration Date”) and shall
accordingly expire at 5:00 p.m. eastern standard time on the Expiration Date.

3.             Right to Exercise.  This Option may be exercised in whole or in
part in accordance with the following schedule:

(i)            125,000
shares on the first anniversary of the date hereof;

(ii)           125,000 shares on the second anniversary of the
date hereof;

(iii)          125,000 shares on the third anniversary of the date
hereof; and

(iv)          125,000 shares on the fourth anniversary of the date
hereof.

4.             Exercise Price.  The exercise price per Share (“Exercise Price”)
at which this Option may be exercised shall be fifty cents ($0.50) per Share.

5.             Method of Exercise.

(a)           This
Option shall be exercised by execution and delivery of the Notice of Exercise
attached hereto as Appendix A (“Notice of Exercise”) or any other
written notice approved for such purpose by the Company that shall state the
election of the Holder to exercise this Option, the number of Shares in respect
of which this Option is 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.  The Notice
of Exercise shall be accompanied by payment of the Exercise Price.  This Option shall be deemed to be exercised
upon receipt by the Company of the Notice of Exercise accompanied by payment of
the Exercise Price.

(b)           No
Shares shall be issued pursuant to the exercise of this Option unless 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 may then be listed.  Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to the Holder on the date
on which this Option is exercised with respect to such Shares.

(c)           This
Option may not be exercised for a fractional Share or scrip representing a
fractional Share.  In lieu of any
fractional Share to which the Holder would otherwise be entitled, the Company
shall make a cash payment equal to the Exercise Price multiplied by such
fraction.

(d)           In
no event may this Option be exercised after the Expiration Date.

6.             Methods of Payment.  Shares of Common Stock purchased upon the
exercise of this Option may be paid for as follows:

(a)           in
cash or by check, payable to the order of the Company;

(b)           if
the shares of Common Stock underlying the Option are registered under the
Securities Act of 1933, as amended (the “Securities Act”), by: (i) delivery by
the Holder to the Company of an irrevocable and unconditional undertaking by a
creditworthy broker to deliver promptly to the Company sufficient funds to pay
the exercise price and any required tax withholding, or (ii) delivery by the
Holder to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company the exercise price
and any required tax withholding;

(c)           if
the shares of Common Stock underlying the Option are registered under the
Securities Act, by delivery of such shares of Common Stock owned by the Holder
valued at their Fair Market Value (as defined below), provided: (i) such method
of payment is then permitted under applicable law, (ii) such shares of Common
Stock have been owned by the Holder at least six months prior to the date of
such delivery, and (iii) such shares of Common Stock are not subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements or
restrictions;

(d)          
by reducing the number of shares of Common Stock otherwise issuable under this
Option to the Holder upon the exercise of this Option by a number of shares of
Common Stock having a Fair Market Value equal to such aggregated exercise
price; provided, however, that such method of payment is then permitted under
applicable law;

(e)           to
the extent permitted by applicable law and by the board of directors of the
Company (the “Board”), in its sole discretion, by: (i) delivery of a promissory
note of the Holder to the Company on terms determined by the Board, or
(ii) payment of such other lawful consideration as the Board may
determine; or

(f)            by
any combination of the above permitted forms of payment.

For the purpose of this Agreement, “Fair Market Value”
shall mean:

(i)          If the Common Stock is admitted to
quotation on the National Association of Securities Dealers Automated Quotation
System (“NASDAQ”), the Fair Market 

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Value on any given date
shall be the average of the highest bid and lowest ask prices of the Common
Stock as reported for such date or, if no bid and ask prices were reported for
such date, for the last day preceding such date for which such prices were
reported;

(ii)         If the Common Stock is admitted to
trading on a United States national securities exchange or the NASDAQ National
Market System, the Fair Market Value on any given date shall be the closing price reported for the Common Stock on such
exchange or system for such date or, if no sales were reported for such date,
for the last day preceding such date for which a sale was reported;

(iii)        If the Common Stock
is traded in the over-the-counter market and not on NASDAQ, the NASDAQ National
Market System or any United States national securities exchange, the Fair
Market Value on any given date shall be the average of the mean between the
last bid and ask prices per share as reported by the National Quotation Bureau,
Inc. or an equivalent generally accepted reporting service for such date or, or
if not so reported, the average of the closing bid and ask prices of the Common
Stock for such date as furnished to the Company by any member of the National
Association of Securities Dealers, Inc. selected by the Company for that purpose;
or

(iv)          If the Fair Market
Value of the Common Stock cannot be determined on the basis previously set
forth in this definition on the date that the Fair Market Value is to be
determined, the Board shall in good faith determine the Fair Market Value of
the Common Stock on such date.

The delivery of certificates representing the shares of Common Stock to
be purchased pursuant to the exercise of this Option will be contingent upon
receipt from the Holder (or a purchaser acting in his stead in accordance with
the provisions of this Option) by the Company of the full purchase price for
the Shares and the fulfillment of any other requirements contained in this
Option or imposed by applicable law.

7.             Rights of Stockholder.  The Holder shall not have any stockholder
rights with respect to any Shares until such Holder shall have exercised this
Option, paid the Exercise Price and become a holder of record of the purchased
Shares.

8.             Adjustment of Exercise Price and
Number of Shares.  The number and
kind of securities purchasable upon exercise of this Option and the Exercise
Price shall be subject to adjustment from time to time as follows:

(a)           Subdivisions,
Combinations and Other Issuances.  If
the Company shall at any time prior to the expiration of this Option subdivide
its Common Stock, by split-up or otherwise, or combine its Common Stock, or
issue additional shares of its Common Stock or any preferred stock as a
dividend with respect to any shares of its Common Stock, then the number of
Shares issuable on the exercise of this Option shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or
proportionately decreased in the case of a combination.  Appropriate adjustments shall also be made to
the Exercise Price, but the aggregate purchase price payable for the total
number of Shares purchasable under this Option (as adjusted) shall remain the
same.  Any adjustment under this Section
8(a) shall become 

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effective
at the close of business on the date the subdivision or combination becomes
effective, or as of the record date of such dividend, or in the event that no
record date is fixed, upon the making of such dividend.

(b)           Reclassification,
Reorganization and Consolidation.  In
the case of any reclassification, capital reorganization or change in the
Common Stock of the Company (other than as a result of a subdivision,
combination or stock dividend provided for in Section 8(a) above or as a result
of any “Fundamental Transaction” described in Section 8(c) below), then, as a
condition of such reclassification, reorganization or change, lawful provision
shall be made, and duly executed documents evidencing the same from the Company
or its successor shall be delivered to the Holder, so that the Holder shall
have the right at any time prior to the expiration of this Option to purchase,
at a total price equal to that payable upon the exercise of this Option, the
kind and amount of shares of stock and other securities and property receivable
in connection with such reclassification, reorganization or change by a holder
of the same number of shares of Common Stock as were purchasable by the Holder
immediately prior to such reclassification, reorganization or change.  In any such case, appropriate provisions
shall be made with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and
appropriate adjustments shall be made to the Exercise Price payable hereunder,
provided the aggregate purchase price shall remain the same.

(c)           Corporate
Reorganizations, Consolidations or Mergers. 
In the event of: (i) any reorganization, consolidation or merger of the
Company with or into another entity (other than a merger in which the Company
is the successor entity that does not result in any capital reclassification, reorganization or
consolidation, or other change, in the Common Stock of the Company, or a
consolidation or merger between the Company and a wholly-owned subsidiary of
the Company), (ii) any sale, lease,
transfer or conveyance to another entity of all or substantially all of the
stock, property and assets of the Company (other than a transfer to a
wholly-owned subsidiary of the Company), or (iii) a liquidation or dissolution
of the Company (the events in subsections (i), (ii) and (iii) collectively, a “Fundamental
Transaction”), then, as a
condition of such Fundamental Transaction, lawful provision shall be made by
the Company and the successor entity in
connection with such Fundamental Transaction for the assumption of this Option
by the successor entity or for the substitution of new like-kind options by the
successor entity as a result of such Fundamental Transaction, with appropriate
adjustment as to the number and kind of shares issuable upon exercise of the
Option, and, if appropriate, the per share exercise price, so as to enable the
Holder after such Fundamental Transaction to purchase the kind and amount of
shares of stock and other securities and property (including cash) receivable
upon such consolidation, merger, sale or conveyance by a holder of the number
of shares of Common Stock that would have been received upon the exercise or
exchange of this Option immediately prior to such Fundamental Transaction.

(d)           Notice
of Adjustment.  When any adjustment
is required to be made in the number or kind of shares purchasable upon
exercise of this Option or in the Exercise Price, the Company shall promptly
notify the Holder of such event and of the number of shares of Common Stock or
other securities or property thereafter purchasable upon exercise of this
Option.

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(e)           No
Impairment.  The Company and the
Holder will not, by any voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company or the Holder, respectively, but will at all times in good faith assist
in the carrying out of all the provisions of this Section 8 and in the taking
of all such action as may be necessary or appropriate in order to protect the
rights or the Company and the Holder against impairment.

9.             Termination
of Option.

(a)           Termination by Death.  If Holder’s employment by, or other
relationship with, the Company terminates by reason of death, this Option may
thereafter be exercised, in whole or in part to the extent exercisable on the
date of such termination of employment, by the legal representative or legatee
of the Holder until the earlier of the date that is one year after the date of
such termination of employment or the Expiration Date.

(b)           Termination by Reason of
Disability or Retirement.

(i)            Disability.              If Holder’s employment by, or
other relationship with, the Company terminates by reason of disability as set
forth in Section 22(e)(3) of the Internal Revenue Code (“Disability”), this
Option may thereafter be exercised, in whole or in part to the extent
exercisable on the date of such termination of employment, until the earlier of
the date that is one year after the date of such termination of employment or
the Expiration Date.

(ii)           Retirement.            If Holder retires in good standing
from active employment or service with the Company in accordance with the
retirement policies of the Company then in effect (“Retirement”), this Option may
thereafter be exercised, in whole or in part to the extent exercisable on the
date of such termination of employment, until the earlier of the date that is
90 days after the date of such termination of employment or the Expiration Date

(iii)          Disability and Retirement
Determination.  The Board shall have
sole authority and discretion to determine whether the Holder’s employment or
services has been terminated by reason of Disability or Retirement.

(c)           Termination for Cause.  If Holder’s employment by, or other
relationship with, the Company terminates for “Cause,” this Option shall
immediately terminate and be of no further force and effect; provided, however,
that the Board may, in its sole discretion, provide that this Option may be
exercised until the earlier of the date that is 90 days after the date of such
termination of employment or the Expiration Date.  Termination for “Cause” shall have the
meaning ascribed to such term in the employment agreement dated March 29, 2006
by and between the Company and Employee (the “Employment Agreement”).

(d)           Termination
Without Cause or Termination for Good Reason.  If Holder’s employment by, or other
relationship with, the Company terminates for any reason other than death,
Disability, Retirement or for Cause, or if Holder’s employment by, or other
relationship with, the Company is terminated by Holder for “Good Reason,” this
Option shall vest in full immediately. 
Termination for “Good Reason” shall have the meaning ascribed to such
term in the Employment Agreement.

 5

(e)           Transfer
and Leave of Absence.  For purposes
of this Option, the following events shall not be deemed a termination of
employment: (i) a transfer of employment between any of the Company, a parent,
a subsidiary or any other affiliate of the Company, and (ii) an approved leave
of absence for military service or sickness, or for any other purpose approved
by the Board, if the Holder’s right to re-employment is guaranteed by a
statute, by contract or under the policy pursuant to which the leave of absence
was granted, or if the Board otherwise so provides in writing.

10.           Investment Intent.

(a)           The
Holder of this Option, by acceptance hereof, acknowledges that this Option and
the Shares to be issued upon exercise hereof (collectively, the “Securities”)
are being acquired for the Holder’s own account for investment purposes only
and not with a view to, or with any present intention of, distributing or
reselling any of such Securities.  The
Holder acknowledges and agrees that the Securities have not been registered
under the Securities Act or under any state securities laws, and that the
Securities may not be, directly or indirectly, sold, transferred, offered for
sale, pledged, hypothecated or otherwise disposed of without registration under
the Securities Act and registration or qualification under applicable state
securities laws, except pursuant to an available exemption from such
registration.  The Holder also
acknowledges and agrees that neither the Securities Exchange Commission (“SEC”)
nor any securities commission or other governmental authority has: (i) approved
the transfer of the Securities or passed upon or endorsed the merits of the
transfer of the Securities; or (ii) confirmed the accuracy of, determined the
adequacy of, or reviewed this Option.  The
Holder has such knowledge, sophistication and experience in financial, tax and
business matters in general, and investments in securities in particular, that
it is capable of evaluating the merits and risks of this investment in the
Securities, and the Holder has made such investigations in connection herewith
as it deemed necessary or desirable so as to make an informed investment
decision without relying upon the Company for legal or tax advice related to
this investment.

(b)           The certificates evidencing any
Shares issued upon the exercise of this Option shall have endorsed thereon
(except to the extent that the restrictions described in any such legend are no
longer applicable) the following legend, appropriate notations thereof will be
made in the Company’s stock transfer books, and stop transfer instructions reflecting these restrictions on transfer
will be placed with the transfer agent of the Shares.

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR APPLICABLE STATE SECURITIES LAWS. 
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT AND REGISTRATION OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
AVAILABLE EXEMPTION THEREFROM.  NO
TRANSFER OF THE SECURITIES REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE OF
SUCH REGISTRATION OR QUALIFICATION UNLESS THERE SHALL HAVE BEEN DELIVERED TO THE
ISSUER A WRITTEN OPINION OF UNITED STATES 

 6
 

 

COUNSEL OF RECOGNIZED STANDING, IN FORM AND
SUBSTANCE SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT SUCH TRANSFER MAY BE
MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

11.           Covenants
of the Company.  The Company
covenants and agrees that the Shares have been duly authorized and, when issued
and paid for in accordance with the terms of this Agreement, will be validly
issued, fully paid and non-assessable shares of Common Stock with no personal
liability resulting solely from the ownership of such shares and will be free
and clear of all liens, charges, restrictions, claims and encumbrances imposed
by or through the Company.

12.           Replacement
of Option.  On receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Option and, in the case of loss, theft or destruction, on
delivery of an indemnity agreement reasonably satisfactory in form and
substance to the Company or, in the case of mutilation, on surrender and
cancellation of this Option, the Company at its expense shall execute and
deliver, in lieu of this Option, a new Option of like tenor and amount.

13.           Notices.  All notices hereunder shall be sufficiently
given for all purposes hereunder if in writing and delivered personally, sent
by documented overnight delivery service or, to the extent receipt is
confirmed, telecopy, telefax or other electronic transmission service to the
appropriate address or number as set forth below:

If
to the Company:

National
Health Partners, Inc.

120
Gibraltar Road

Suite
107

Horsham,
PA 19044

Attention:  Chief Financial Officer

If to the Holder:

To the address specified for
Holder in the Company’s records.

14.           Amendment and Waiver.  This Option may not be amended, modified or
supplemented except by an instrument or instruments in writing signed by the
party against whom enforcement of any such amendment, modification or
supplement is sought.  The parties hereto
entitled to the benefits of a term or provision may waive compliance with any
obligation, covenant, agreement or condition contained herein.  Any agreement on the part of a party to any
such waiver shall be valid only if set forth in an instrument or instruments in
writing signed by the party against whom enforcement of any such waiver is
sought.   No failure or delay on the part
of any party hereto in the exercise of any right hereunder shall impair such
right or be construed to be a waiver of, or acquiescence in, any breach of any
representation, warranty, covenant or
agreement contained herein.

 7
 

 

15.           Headings; Definitions.  The section headings contained in this Option
are inserted for convenience of reference only and will not affect the meaning
or interpretation of this Option.  All
references to sections contained herein mean sections of this Option unless
otherwise stated.  All capitalized terms
defined herein are equally applicable to both the singular and plural forms of
such terms.

16.           Successors and Assigns.  This Option shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, provided, however, that no party hereto may assign its rights or
delegate its obligations under this Option without the express prior written
consent of the other party hereto. 
Nothing in this Option is intended to confer upon any person not a party
hereto (and their successors and assigns) any rights, remedies, obligations or
liabilities under or by reason of this Option.

17.           Severability.  If any provision of this Option or the
application thereof to any person or circumstance is held to be invalid or
unenforceable to any extent, the remainder of this Option shall remain in full
force and effect and shall be reformed to render this Option valid and
enforceable while reflecting to the greatest extent permissible the intent of
the parties.

18.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania,
without regard to the laws that might otherwise govern under applicable
principles of conflicts of laws thereof.

19.           Counterparts.  This Agreement may be executed and delivered
by facsimile in two or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
agreement.

[Remainder of page
intentionally left blank]

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IN
WITNESS WHEREOF, the Company and Holder have caused this Option to be executed
as of the date set forth above in Section 1 of this Option.

	
  

  	
  NATIONAL HEALTH
  PARTNERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David M.
  Daniels

  
	
   

  	
   

  	
  David M. Daniels

  
	
   

  	
   

  	
  Chief Executive
  Officer

  

 

AGREED AND
ACCEPTED:

 

	
  By: 

  	
  /s/ Alex
  Soufflas

  	
   

  
	
   

  	
  Alex Soufflas

  	
   

  

 

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APPENDIX A

NOTICE OF EXERCISE

	
  To:

  	
  National Health Partners, Inc.

  	
   

  
	
   

  	
  120 Gibraltar Road

  	
   

  
	
   

  	
  Suite 107

  	
   

  
	
   

  	
  Horsham, PA 19044

  	
   

  
	
   

  	
  Attention: Chief Financial Officer

  	
   

  

 

(1)           The undersigned hereby elects to
purchase                      
shares of Common Stock of the Company pursuant to the terms of the attached
Option, and tenders herewith payment of the purchase price for such shares in
full in accordance with the terms of the Option in the following manner (please
check one or more of the following choices):

	
  o

  	
  in cash or by check;

  
	
   

  	
   

  
	
  o

  	
  an irrevocable and unconditional undertaking by a
  creditworthy broker to deliver sufficient funds to pay the exercise price and
  any required tax withholding;

  
	
   

  	
   

  
	
  o

  	
  a copy of irrevocable and unconditional instructions
  to a creditworthy broker to deliver the exercise price and any required tax
  withholding;

  
	
   

  	
   

  
	
  o

  	
  a promissory note;

  
	
   

  	
   

  
	
  o

  	
  a reduction of the number of shares of Common Stock
  otherwise issuable under the Option by a number of shares of Common Stock
  having a Fair Market Value equal to such aggregated exercise price; or

  
	
   

  	
   

  
	
  o

  	
  the following consideration:  

  	
   

  	
  .

  

 

(2)           In exercising the Option, the
undersigned hereby confirms and acknowledges that the shares of Common Stock to
be issued upon conversion thereof are being acquired solely for the account of
the undersigned for investment purposes only (unless such shares are subject to
resale pursuant to an effective registration statement or an exemption from
registration under applicable federal and state securities laws), and that the
undersigned will not offer, sell or otherwise dispose of any such shares of
Common Stock except under circumstances that will not result in a violation of
the Securities Act or any state securities laws.

(3)           Terms not otherwise defined in this
Notice of Exercise shall have the meanings ascribed to such terms in the
attached Option.

(4)           Please issue a certificate or
certificates representing said shares of Common Stock in the name of the
undersigned.

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Signature)Exhibit
10.3

 

OPTION TO ACQUIRE SHARES

OF COMMON STOCK OF
NATIONAL HEALTH PARTNERS, INC.

WHEREAS, National Health Partners, Inc., an Indiana
corporation (the “Company”) wishes to grant this option to Patricia S. Bathurst
(“Holder”) the Holder.

NOW, THEREFORE, in consideration of the foregoing, the
agreement set forth below and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereby agree as follows:

1.             Grant
of Option.  The Company hereby grants
to the Holder on this 4th day of September, 2007 (the “Grant Date”) an
option (this “Option”) to purchase 400,000 shares (“Shares”) of the Company’s
common stock, $.001 par value per share (“Common Stock”), on the terms and
subject to the conditions set forth herein.

2.             Term of Option.  This option shall have a maximum term of ten
(10) years measured from the Grant Date (the “Expiration Date”) and shall
accordingly expire at 5:00 p.m. eastern standard time on the Expiration Date.

3.             Right to Exercise.  This Option may be exercised in whole or in
part in accordance with the following schedule:

(i)            100,000
shares on the first anniversary of the date hereof;

(ii)           100,000 shares on the second anniversary of the
date hereof;

(iii)          100,000 shares on the third anniversary of the date
hereof; and

(iv)          100,000 shares on the fourth anniversary of the date
hereof.

4.             Exercise Price.  The exercise price per Share (“Exercise Price”)
at which this Option may be exercised shall be fifty cents ($0.50) per Share.

5.             Method of Exercise.

(a)           This
Option shall be exercised by execution and delivery of the Notice of Exercise
attached hereto as Appendix A (“Notice of Exercise”) or any other
written notice approved for such purpose by the Company that shall state the
election of the Holder to exercise this Option, the number of Shares in respect
of which this Option is 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.  The
Notice of Exercise shall be accompanied by payment of the Exercise Price.  This Option shall be deemed to be exercised
upon receipt by the Company of the Notice of Exercise accompanied by payment of
the Exercise Price.

(b)           No
Shares shall be issued pursuant to the exercise of this Option unless 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 may then be listed. 
Assuming such compliance, for income tax purposes the Shares shall be
considered transferred to the Holder on the date on which this Option is
exercised with respect to such Shares.

(c)           This
Option may not be exercised for a fractional Share or scrip representing a
fractional Share.  In lieu of any
fractional Share to which the Holder would otherwise be entitled, the Company
shall make a cash payment equal to the Exercise Price multiplied by such fraction.

(d)           In
no event may this Option be exercised after the Expiration Date.

6.             Methods of Payment.  Shares of Common Stock purchased upon the
exercise of this Option may be paid for as follows:

(a)           in
cash or by check, payable to the order of the Company;

(b)           if
the shares of Common Stock underlying the Option are registered under the
Securities Act of 1933, as amended (the “Securities Act”), by: (i) delivery by
the Holder to the Company of an irrevocable and unconditional undertaking by a
creditworthy broker to deliver promptly to the Company sufficient funds to pay
the exercise price and any required tax withholding, or (ii) delivery by the
Holder to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company the exercise price
and any required tax withholding;

(c)           if
the shares of Common Stock underlying the Option are registered under the
Securities Act, by delivery of such shares of Common Stock owned by the Holder
valued at their Fair Market Value (as defined below), provided: (i) such method
of payment is then permitted under applicable law, (ii) such shares of Common
Stock have been owned by the Holder at least six months prior to the date of
such delivery, and (iii) such shares of Common Stock are not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements or restrictions;

(d)          
by reducing the number of shares of Common Stock otherwise issuable under this
Option to the Holder upon the exercise of this Option by a number of shares of
Common Stock having a Fair Market Value equal to such aggregated exercise
price; provided, however, that such method of payment is then permitted under
applicable law;

(e)           to
the extent permitted by applicable law and by the board of directors of the
Company (the “Board”), in its sole discretion, by: (i) delivery of a promissory
note of the Holder to the Company on terms determined by the Board, or
(ii) payment of such other lawful consideration as the Board may
determine; or

(f)            by
any combination of the above permitted forms of payment.

For the purpose of this Agreement, “Fair Market Value”
shall mean:

(i)          If the Common Stock is admitted to
quotation on the National Association of Securities Dealers Automated Quotation
System (“NASDAQ”), the Fair Market

 

 2
 

 

Value on any given date
shall be the average of the highest bid and lowest ask prices of the Common
Stock as reported for such date or, if no bid and ask prices were reported for
such date, for the last day preceding such date for which such prices were
reported;

(ii)         If the Common Stock is admitted to
trading on a United States national securities exchange or the NASDAQ National
Market System, the Fair Market Value on any given date shall be the closing price reported for the Common Stock on such
exchange or system for such date or, if no sales were reported for such date,
for the last day preceding such date for which a sale was reported;

(iii)        If the Common Stock
is traded in the over-the-counter market and not on NASDAQ, the NASDAQ National
Market System or any United States national securities exchange, the Fair
Market Value on any given date shall be the average of the mean between the
last bid and ask prices per share as reported by the National Quotation Bureau,
Inc. or an equivalent generally accepted reporting service for such date or, or
if not so reported, the average of the closing bid and ask prices of the Common
Stock for such date as furnished to the Company by any member of the National
Association of Securities Dealers, Inc. selected by the Company for that
purpose; or

(iv)          If the Fair Market
Value of the Common Stock cannot be determined on the basis previously set
forth in this definition on the date that the Fair Market Value is to be
determined, the Board shall in good faith determine the Fair Market Value of
the Common Stock on such date.

The delivery of certificates representing the shares of Common Stock to
be purchased pursuant to the exercise of this Option will be contingent upon
receipt from the Holder (or a purchaser acting in his stead in accordance with
the provisions of this Option) by the Company of the full purchase price for
the Shares and the fulfillment of any other requirements contained in this
Option or imposed by applicable law.

7.             Rights of Stockholder.  The Holder shall not have any stockholder
rights with respect to any Shares until such Holder shall have exercised this
Option, paid the Exercise Price and become a holder of record of the purchased
Shares.

8.             Adjustment of Exercise Price and
Number of Shares.  The number and kind
of securities purchasable upon exercise of this Option and the Exercise Price
shall be subject to adjustment from time to time as follows:

(a)           Subdivisions,
Combinations and Other Issuances.  If
the Company shall at any time prior to the expiration of this Option subdivide
its Common Stock, by split-up or otherwise, or combine its Common Stock, or
issue additional shares of its Common Stock or any preferred stock as a
dividend with respect to any shares of its Common Stock, then the number of
Shares issuable on the exercise of this Option shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or
proportionately decreased in the case of a combination.  Appropriate adjustments shall also be made to
the Exercise Price, but the aggregate purchase price payable for the total
number of Shares purchasable under this Option (as adjusted) shall remain the
same.  Any adjustment under this Section
8(a) shall become

 

 3
 

 

effective
at the close of business on the date the subdivision or combination becomes
effective, or as of the record date of such dividend, or in the event that no
record date is fixed, upon the making of such dividend.

(b)           Reclassification,
Reorganization and Consolidation.  In
the case of any reclassification, capital reorganization or change in the
Common Stock of the Company (other than as a result of a subdivision,
combination or stock dividend provided for in Section 8(a) above or as a result
of any “Fundamental Transaction” described in Section 8(c) below), then, as a
condition of such reclassification, reorganization or change, lawful provision
shall be made, and duly executed documents evidencing the same from the Company
or its successor shall be delivered to the Holder, so that the Holder shall
have the right at any time prior to the expiration of this Option to purchase,
at a total price equal to that payable upon the exercise of this Option, the
kind and amount of shares of stock and other securities and property receivable
in connection with such reclassification, reorganization or change by a holder
of the same number of shares of Common Stock as were purchasable by the Holder
immediately prior to such reclassification, reorganization or change.  In any such case, appropriate provisions
shall be made with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and
appropriate adjustments shall be made to the Exercise Price payable hereunder,
provided the aggregate purchase price shall remain the same.

(c)           Corporate
Reorganizations, Consolidations or Mergers. 
In the event of: (i) any reorganization, consolidation or merger of the
Company with or into another entity (other than a merger in which the Company
is the successor entity that does not result in any capital reclassification, reorganization or
consolidation, or other change, in the Common Stock of the Company, or a
consolidation or merger between the Company and a wholly-owned subsidiary of
the Company), (ii) any sale, lease,
transfer or conveyance to another entity of all or substantially all of the
stock, property and assets of the Company (other than a transfer to a
wholly-owned subsidiary of the Company), or (iii) a liquidation or dissolution
of the Company (the events in subsections (i), (ii) and (iii) collectively, a “Fundamental
Transaction”), then, as a
condition of such Fundamental Transaction, lawful provision shall be made by
the Company and the successor entity in
connection with such Fundamental Transaction for the assumption of this Option
by the successor entity or for the substitution of new like-kind options by the
successor entity as a result of such Fundamental Transaction, with appropriate
adjustment as to the number and kind of shares issuable upon exercise of the
Option, and, if appropriate, the per share exercise price, so as to enable the
Holder after such Fundamental Transaction to purchase the kind and amount of
shares of stock and other securities and property (including cash) receivable
upon such consolidation, merger, sale or conveyance by a holder of the number
of shares of Common Stock that would have been received upon the exercise or
exchange of this Option immediately prior to such Fundamental Transaction.

(d)           Notice
of Adjustment.  When any adjustment
is required to be made in the number or kind of shares purchasable upon
exercise of this Option or in the Exercise Price, the Company shall promptly
notify the Holder of such event and of the number of shares of Common Stock or
other securities or property thereafter purchasable upon exercise of this
Option.

 

 4
 

 

(e)           No
Impairment.  The Company and the
Holder will not, by any voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company or the Holder, respectively, but will at all times in good faith assist
in the carrying out of all the provisions of this Section 8 and in the taking
of all such action as may be necessary or appropriate in order to protect the
rights or the Company and the Holder against impairment.

9.             Termination
of Option.

(a)           Termination by Death.  If Holder’s employment by, or other
relationship with, the Company terminates by reason of death, this Option may
thereafter be exercised, in whole or in part to the extent exercisable on the
date of such termination of employment, by the legal representative or legatee
of the Holder until the earlier of the date that is one year after the date of
such termination of employment or the Expiration Date.

(b)           Termination by
Reason of Disability or Retirement.

(i)            Disability.    If
Holder’s employment by, or other relationship with, the Company terminates by
reason of disability as set forth in Section 22(e)(3) of the Internal Revenue
Code (“Disability”), this Option may thereafter be exercised, in whole or in
part to the extent exercisable on the date of such termination of employment,
until the earlier of the date that is one year after the date of such
termination of employment or the Expiration Date.

(ii)           Retirement.    If
Holder retires in good standing from active employment or service with the
Company in accordance with the retirement policies of the Company then in
effect (“Retirement”), this Option may thereafter be exercised, in whole or in
part to the extent exercisable on the date of such termination of employment,
until the earlier of the date that is 90 days after the date of such
termination of employment or the Expiration Date

(iii)          Disability and Retirement
Determination.    The Board shall have sole authority and
discretion to determine whether the Holder’s employment or services has been
terminated by reason of Disability or Retirement.

(c)           Termination for Cause.  If Holder’s employment by, or other
relationship with, the Company terminates for “Cause,” this Option shall
immediately terminate and be of no further force and effect; provided, however,
that the Board may, in its sole discretion, provide that this Option may be
exercised until the earlier of the date that is 90 days after the date of such
termination of employment or the Expiration Date.  Termination for “Cause” shall have the
meaning ascribed to such term in the employment agreement dated May 13, 2005 by
and between the Company and Employee (the “Employment Agreement”).

(d)           Termination
Without Cause or Termination for Good Reason.  If Holder’s employment by, or other
relationship with, the Company terminates for any reason other than death,
Disability, Retirement or for Cause, or if Holder’s employment by, or other
relationship with, the Company is terminated by Holder for “Good Reason,” this
Option shall vest in full immediately. 
Termination for “Good Reason” shall have the meaning ascribed to such
term in the Employment Agreement.

 

 5

 

(e)           Transfer
and Leave of Absence.  For purposes
of this Option, the following events shall not be deemed a termination of
employment: (i) a transfer of employment between any of the Company, a parent,
a subsidiary or any other affiliate of the Company, and (ii) an approved leave
of absence for military service or sickness, or for any other purpose approved
by the Board, if the Holder’s right to re-employment is guaranteed by a
statute, by contract or under the policy pursuant to which the leave of absence
was granted, or if the Board otherwise so provides in writing.

10.           Investment Intent.

(a)           The
Holder of this Option, by acceptance hereof, acknowledges that this Option and
the Shares to be issued upon exercise hereof (collectively, the “Securities”)
are being acquired for the Holder’s own account for investment purposes only
and not with a view to, or with any present intention of, distributing or
reselling any of such Securities.  The
Holder acknowledges and agrees that the Securities have not been registered
under the Securities Act or under any state securities laws, and that the
Securities may not be, directly or indirectly, sold, transferred, offered for
sale, pledged, hypothecated or otherwise disposed of without registration under
the Securities Act and registration or qualification under applicable state
securities laws, except pursuant to an available exemption from such
registration.  The Holder also
acknowledges and agrees that neither the Securities Exchange Commission (“SEC”)
nor any securities commission or other governmental authority has: (i) approved
the transfer of the Securities or passed upon or endorsed the merits of the
transfer of the Securities; or (ii) confirmed the accuracy of, determined the
adequacy of, or reviewed this Option.  The
Holder has such knowledge, sophistication and experience in financial, tax and
business matters in general, and investments in securities in particular, that
it is capable of evaluating the merits and risks of this investment in the
Securities, and the Holder has made such investigations in connection herewith
as it deemed necessary or desirable so as to make an informed investment
decision without relying upon the Company for legal or tax advice related to
this investment.

(b)           The certificates evidencing any
Shares issued upon the exercise of this Option shall have endorsed thereon
(except to the extent that the restrictions described in any such legend are no
longer applicable) the following legend, appropriate notations thereof will be
made in the Company’s stock transfer books, and stop transfer instructions reflecting these restrictions on transfer
will be placed with the transfer agent of the Shares.

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR APPLICABLE STATE SECURITIES LAWS. 
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT AND REGISTRATION OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN
AVAILABLE EXEMPTION THEREFROM.  NO
TRANSFER OF THE SECURITIES REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE OF
SUCH REGISTRATION OR QUALIFICATION UNLESS THERE SHALL HAVE BEEN DELIVERED TO
THE ISSUER A WRITTEN OPINION OF UNITED STATES

 

 6
 

 

COUNSEL OF RECOGNIZED STANDING, IN FORM AND
SUBSTANCE SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT SUCH TRANSFER MAY BE
MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

11.           Covenants
of the Company.  The Company
covenants and agrees that the Shares have been duly authorized and, when issued
and paid for in accordance with the terms of this Agreement, will be validly
issued, fully paid and non-assessable shares of Common Stock with no personal
liability resulting solely from the ownership of such shares and will be free
and clear of all liens, charges, restrictions, claims and encumbrances imposed
by or through the Company.

12.           Replacement
of Option.  On receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Option and, in the case of loss, theft or destruction, on
delivery of an indemnity agreement reasonably satisfactory in form and
substance to the Company or, in the case of mutilation, on surrender and
cancellation of this Option, the Company at its expense shall execute and
deliver, in lieu of this Option, a new Option of like tenor and amount.

13.           Notices.  All notices hereunder shall be sufficiently
given for all purposes hereunder if in writing and delivered personally, sent
by documented overnight delivery service or, to the extent receipt is
confirmed, telecopy, telefax or other electronic transmission service to the
appropriate address or number as set forth below:

If to the Company:

National Health Partners, Inc.

120 Gibraltar Road

Suite 107

Horsham, PA 19044

Attention:  Chief Financial Officer

If to the Holder:

To the address specified for
Holder in the Company’s records.

14.           Amendment and Waiver.  This Option may not be amended, modified or
supplemented except by an instrument or instruments in writing signed by the
party against whom enforcement of any such amendment, modification or
supplement is sought.  The parties hereto
entitled to the benefits of a term or provision may waive compliance with any
obligation, covenant, agreement or condition contained herein.  Any agreement on the part of a party to any
such waiver shall be valid only if set forth in an instrument or instruments in
writing signed by the party against whom enforcement of any such waiver is
sought.   No failure or delay on the part
of any party hereto in the exercise of any right hereunder shall impair such
right or be construed to be a waiver of, or acquiescence in, any breach of any
representation, warranty, covenant or
agreement contained herein.

 

 7
 

 

15.           Headings; Definitions.  The section headings contained in this Option
are inserted for convenience of reference only and will not affect the meaning
or interpretation of this Option.  All
references to sections contained herein mean sections of this Option unless
otherwise stated.  All capitalized terms
defined herein are equally applicable to both the singular and plural forms of
such terms.

16.           Successors and Assigns.  This Option shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns,
provided, however, that no party hereto may assign its rights or delegate its
obligations under this Option without the express prior written consent of the
other party hereto.  Nothing in this
Option is intended to confer upon any person not a party hereto (and their
successors and assigns) any rights, remedies, obligations or liabilities under
or by reason of this Option.

17.           Severability.  If any provision of this Option or the
application thereof to any person or circumstance is held to be invalid or
unenforceable to any extent, the remainder of this Option shall remain in full
force and effect and shall be reformed to render this Option valid and
enforceable while reflecting to the greatest extent permissible the intent of
the parties.

18.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania,
without regard to the laws that might otherwise govern under applicable
principles of conflicts of laws thereof.

19.           Counterparts.  This Agreement may be executed and delivered
by facsimile in two or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
agreement.

[Remainder of page
intentionally left blank]

 

 8
 

 

IN
WITNESS WHEREOF, the Company and Holder have caused this Option to be executed
as of the date set forth above in Section 1 of this Option.

	
  

  	
  NATIONAL HEALTH PARTNERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David M.
  Daniels

  	
   

  
	
   

  	
   

  	
  David M. Daniels

  
	
   

  	
   

  	
  Chief Executive
  Officer

  
	
  AGREED AND
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Patricia S.
  Bathurst

  	
   

  	
   

  
	
   

  	
  Patricia S.
  Bathurst

  	
   

  
						

 

 

 9

 

APPENDIX A

NOTICE OF EXERCISE

	
  To:

  	
  National Health Partners, Inc.

  
	
   

  	
  120 Gibraltar Road

  
	
   

  	
  Suite 107

  
	
   

  	
  Horsham, PA 19044

  
	
   

  	
  Attention: Chief Financial Officer

  

 

(1)           The undersigned hereby elects to
purchase                      
shares of Common Stock of the Company pursuant to the terms of the attached
Option, and tenders herewith payment of the purchase price for such shares in
full in accordance with the terms of the Option in the following manner (please
check one or more of the following choices):

o                                    in
cash or by check;

o                                    an
irrevocable and unconditional undertaking by a creditworthy broker to deliver
sufficient funds to pay the exercise price and any required tax withholding;

o                                    a
copy of irrevocable and unconditional instructions to a creditworthy broker to
deliver the exercise price and any required tax withholding;

o                                    a
promissory note;

o                                    a
reduction of the number of shares of Common Stock otherwise issuable under the
Option by a number of shares of Common Stock having a Fair Market Value equal
to such aggregated exercise price; or

o                                    the
following consideration:                                                                               .

(2)           In exercising the Option, the
undersigned hereby confirms and acknowledges that the shares of Common Stock to
be issued upon conversion thereof are being acquired solely for the account of
the undersigned for investment purposes only (unless such shares are subject to
resale pursuant to an effective registration statement or an exemption from
registration under applicable federal and state securities laws), and that the
undersigned will not offer, sell or otherwise dispose of any such shares of
Common Stock except under circumstances that will not result in a violation of
the Securities Act or any state securities laws.

(3)           Terms not otherwise defined in this
Notice of Exercise shall have the meanings ascribed to such terms in the
attached Option.

(4)           Please issue a certificate or
certificates representing said shares of Common Stock in the name of the
undersigned.

	
  

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
  (Signature)

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