Document:

Exhibit 10.2

SUMMIT
HEALTH GROUP, INC.

STOCK
OPTION PLAN

1.                                      Purpose
of Plan

The purpose of the Stock Option Plan (the “Plan”)
contained herein is to provide additional incentive to officers and by
employees of Summit Health
Group, Inc., a New Jersey corporation (the “Corporation”), and each present or
future parent or subsidiary corporation of the Corporation, excluding all
directors who are not employees of the Corporation, by encouraging them to
invest in shares of the Corporation’s common stock, no par value per share (the
“Common Stock”), and thereby acquire a proprietary interest in the Corporation
along with an increased personal interest in the Corporation’s continued
success and progress, to the mutual benefit of directors, employees and
shareholders.

2.                                      Aggregate
Number of Shares

350,000 shares of Common Stock shall be the aggregate
number of shares which may be issued under this Plan.  Notwithstanding the foregoing, in the event
of any change in the outstanding shares of common Stock by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee, as defined in Section 4 below, deems in its sole discretion to be
similar circumstances, the aggregate number and kind of shares which may be
issued under this Plan shall be appropriately adjusted in a manner determined
in the sole discretion of the committee. 
Reacquired shares of Common Stock, as well as unissued shares, may be
used for the purpose of this Plan. 
Common Stock subject to options which have terminated unexercised,
either in whole or in part, shall be available for future options granted under
this Plan.

3.                                      C1ass
of Persona Eligible to Receive Options

All officers and key employees of the Corporation,
excluding all directors who are not employees of the Corporation, and of any
present or future percent or subsidiary corporation of the Corporation are
eligible to receive en option or options under this plan.  The individuals who shall, in fact, receive
an option c options shall be selected by the Committee, as defined in section 4
below, in its sole discretion, except as otherwise specified in Section 4 of
this Plan.

4.                                      Administration
of Plan

(a)                                  This
Plan shall be administered by a Committee appointed by the Board of Directors
(the “Committee”).  The Committee shall
consist of a minimum of two and a maximum of ten members of the Board of
Directors, each of whom shall be a “disinterested person” as defined in Rule
16b-3(c) (2) (i) under the Securities Exchange Act of 1934, as amended (the “1934
Act”), promulgated by the Securities and Exchange Commission (hereafter the “SEC”)
or any future corresponding rule.  The
Committee shall, in addition to its other authority and subject to the provisions
of this Plan, determine which individuals shall in fact be

 

granted an option or options, whether the option shall be an incentive
stock option or a non-qualified stock option, the number of shares to be
subject to each of the options, the time or times at which the options shall be
granted, the rate of option exercisability (provided, however, that no option
shall be exercisable within one (1) year from the date of its grant), and,
subject to Section 5 of this Plan, the price at which each of the options is
exercisable and the duration of the option.

(b)                                 The
Committee shall adopt such rules for the conduct of its business and
administration of this Plan as it considers desirable.  A majority of the members of the Committee
shall constitute a quorum for all purposes. 
The vote or written consent of a majority of the members of the
Committee on a particular matter shall constitute the act of the Committee on
such matter.  The Committee shall have
the right to construe the Plan and the options issued pursuant to it, to correct
defects and omissions and to reconcile inconsistencies to the extent necessary
to effectuate the Plan and the options issued pursuant to it, and such action
shall be final, binding and conclusive upon all parties concerned.  No member of the Committee or the Board
of Directors shall be liable for an act or omission (whether or not negligent)
taken or omitted in good faith, or for the exercise of any authority or
discretion granted in connection with the Plan to the Committee or the Board of
Directors, of for the acts or omissions of any other member(s) of the Committee
or the Board of Directors.  Subject to
the numerical limitations on Committee membership set forth in Section 4(a)
hereof, the Board of Directors may at any time appoint additional members of
the Committee and may at any time remove any member of the Committee with or
without cause.  Vacancies on the
Committee, however caused, may be filled by the Board of Directors, if it so desires.

5.                                      Incentive
Stock Options and Non-Qualified Stock Options

(a)                                  Options
issued pursuant to this Plan may be either Incentive Stock Options granted
pursuant to Section 5(b) of this Plan or Non-Qualified Stock Options granted
pursuant to Section 5(c) of this Plan, as determined by the Committee.  An “Incentive Stock Option” is an option which satisfies all of the requirements of
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and
the regulations thereunder, and a Non-Qualified Stock Option is an option which
either does not satisfy all of these requirements or an option by its terms
specifies at the time of grant that, will not be treated as an
Incentive Stock option.  The Committee
may grant both an Incentive Stock option and a Non-Qualified Stock Option to
the same person, or more than one of each type of option to the same
person.  The option price for Incentive
Stock Options issued under this Plan shall be equal to at least the “fair
market value” of the Common stock on the date of the grant of the option.  The “fair market value” of the common Stock
on any particular date shall mean the last reported sale price of a share of
the Common Stock on the NASDAQ National Market System, as reported by NASDAQ,
or on any stock exchange on which such stock is then listed or admitted to
trading, on such date, or if no sale took place on such day, the last such date
on which a sale took place, or if the Common Stock is not then quoted on the
NASDAQ National Market System or listed or admitted to trading on any stock
exchange, the average of the bid and asked prices in the over-the-counter
market on such date, or if none of the foregoing, a price determined by the
committee.  If an optionee is an owner of
stock (as determined under Section 424(d) of the Code) that possesses more than
10% of the total combined voting power of all classes of stock of the
Corporation or a parent or subsidiary corporation of the corporation, the
option price per share in the case of an Incentive Stock Option shall not be
less than 110% of the fair market value of a share of

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Common
Stock on the date of the option grant. 
The option price for Non-Qualified Stock Options shall be determined by
the Committees as of the date of grant, but, in no event shall the price b less
than $1.00 per share.

(b)                                 Subject
to the authority of the Committee set forth in Section 4(a) c this Plan, Incentive Stock Options issued pursuant to this
Plan shall be issued substantially in the form set forth in Appendix “I”
attached to this Plan, which form is hereby incorporated by reference and made
a part hereof, and shall contain substantially the terms and conditions set
forth therein.  Incentive Stock Options
shall be exercisable for a period determined by the Committee, but not to
exceed the expiration of t years from the date such options are granted, unless
terminated earlier under the terms of the Option.  To the extent that the aggregate fair market
value (determined as of the respective date or dates of grant) of shares with
respect to which options that would otherwise be Incentive Stock Options are
exercisable for the first time by any individual during any calendar year under
the Plan (or any other plan of the corporation, a parent or subsidiary
corporation of the Corporation or predecessor thereof) exceeds the sun of $100,000,
such. options shall he treated as Non-Qualified stock Options.  Such
options shall be taken into account in the order in which they were
granted.  At the time of the grant of an
incentive Stock Option hereunder, the Committee may, in its discretion, modify
or amend any or the option terms contained in Appendix “I” for any particular
optionee, provided that the option as modified * or amended satisfies
the requirements of Section 422 of the Code and the regulations
thereunder.  Each of the options granted
pursuant to this Section 5(b) is intended, if possible, to be an “Incentive
Stock Option” as that term is defined in Section 422 of the Code and the
regulations thereunder.  In the event
this Plan or any option granted pursuant to this Section 5(b) is in any way
inconsistent with the applicable legal requirements of the Code or the
regulations thereunder for an Incentive Stock Option, this Plan and such option
shall be deemed automatically amended as of the date hereof to conform to such
legal requirement, if such conformity may be achieved by amendment.

(c)                                  Subject
to the authority of the Committee set forth in Section 4(a) of this Plan,
Non-Qualified Stock Options issued pursuant to this Plan shall be issued
substantially in the form set forth in Appendix “IX” attached to this Plan,
which form is hereby incorporated by reference and made a part hereof, and shall contain substantially the terms and
conditions set forth therein. 
Non-Qualified Stock Options shall expire as determined by the Committee
but such period shall not exceed ten years after the date they are granted,
unless terminated earlier under the option terms.  At the time of granting a Non-Qualified Stock
Option hereunder, the Committee may, in its discretion, modify or amend any of
the option terms contained in Appendix “XX” for any particular optionee,
provided that the option as modified or amended does not expire more than ten
years from the date of its grant.

(d)                                 Neither
the Corporation nor any of its current or future parents, subsidiaries or
affiliates, nor their officers, directors, shareholders, stock option plan
committees, employees or agents shall have any liability to any optionee in the
event (i) an option granted pursuant to Section 5(b) of this Plan does not
qualify as an “Incentive Stock Option” as that term is used in Section 422 of
the Code and the regulations thereunder: (ii) any optionee does not obtain the
tax benefits of such an incentive Stock Option; or (iii any option granted
pursuant to Section 5(c) of this Plan is an “Incentive Stock Option.”

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6.                                      Modification,
Amendment, Suspension and Termination

Options shall not be granted pursuant to this Plan
after the expiration of ten years from the date the Plan is adopted by the
Board of Directors of the Corporation. 
The Board of Directors reserves the right at any time, and from time to
time, to modify or amend this Plan in any way, or to suspend or terminate it,
effective as of such date, which date may be either before or after the taking of such action, as
may be specified by the Board of
Directors; provided, however,
that such action shall not affect actions granted under the Plan prior to the
actual date on which such action
occurred; and provided further, that the Board of Directors shall not, without
the approval of the shareholders of the corporation, amend this Plan to (i)
increase the benefits accruing to optionees under the Plan, (ii) increase the
number of shares which may be issued or the Plan, or (iii) modify the
eligibility requirements for awards granted under the Plan.  If a modification or amendment of this Plan
is required by the Code or the regulations thereunder to be approved by the
shareholders of the corporation in order to permit the granting of “Incentive
Stock options” (as that term is defined in Section 422 of the Code and
regulations thereunder) pursuant to the modified or amended Plan, such
modification or amendment shall also be approved by the shareholders of the
Corporation in such manner as is prescribed by the Code and the regulations
thereunder.  If the Board of Directors
voluntarily submits a proposed modification, amendment, suspension or
termination for shareholder approval, such submission shall not require any
future modifications, amendments (whether or not relating to the same provision
or subject matter), suspensions or terminations to be similarly submitted for
shareholder approval.

7.                                      Effectiveness
of Plea

This Plan shall become effective en the date of its
adoption by the corporation’s Board of Directors, subject however to approval
by the shareholders of the Corporation in the manner as prescribed in the Code
and the regulations thereunder and Rule 16b-3 under the 1934 Act.  Options nay be granted under this Plan prior
to obtaining shareholder approval, provided such options shall not be
exercisable until shareholder approval is obtained.

8.                                      General
Conditions

(a)                                  Nothing
contained in this Plan or any option granted pursuant to this Plan shall confer
upon my employee the right to continue in the employ of the Corporation or any
affiliated or subsidiary corporation or interferer in any way with the rights
of the corporation or any affiliated or subsidiary corporation of the
Corporation to terminate his or her employment in any way.

(b)                                 Action
by the Corporation constituting an offer of stock for sale to any employee
under the terms of the options to be granted hereunder shall be deemed complete
as of the data when the Committee authorizes the grant of the option to the
employee, regardless of when the option is actually delivered to the employee
or acknowledged or agreed to by him.

(c)                                  The
term “parent corporation” and “subsidiary corporation” as used throughout this
Plan, and options granted pursuant , this
Plan, shall (except as otherwise provided in the option form) have the meaning
that is ascribed to that term-when contained in

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Section 422(b) of the Code and the regulations thereunder, and the
Corporation shall be deemed to be the grantor corporation for purposes of
applying such meaning.

(d)                                 References
in this Plan
to the Code shall be deemed to also refer to the corresponding provision of any
future United States revenue law.

(e)                                  The
use of the masculine pronoun shall include the feminine gender whenever
appropriate.

 5Exhibit 10.3

SUMMIT HEALTH GROUP, INC.

NONSTATUTORY STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS

1.             Purpose of Plan.
The purpose of the Summit Health Group, Inc. Nonstatutory Stock Option Plan for
Non-Employee Directors (the “Plan”) contained herein is to enhance the ability
of Summit Health Group, Inc., a New Jersey corporation (the “Corporation”), to
attract, retain and motivate its non-employee members of its Board of Directors
and to provide additional incentive to such members of the Board of Directors
by encouraging them to invest in shares of the Corporation’s common stock and
thereby acquire a proprietary interest in the Corporation and an increased
personal interest in the Corporation’s continued success and progress, to the
mutual benefit of the Corporation and its shareholders.

2.             Aggregate Number
of Shares. 150,000 shares of the corporation’s common stock, no par value
per share (the “Common Stock”), shall be the aggregate number of shares which
may be issued under this Plan. Notwithstanding the foregoing, in the event of
any change in the capitalization of the Corporation, such as by stock dividend,
stock split or what the Board of Directors of the Corporation deems in its sole
discretion to be similar circumstances, the aggregate number and kind of shares
which may be issued under this Plan shall be automatically adjusted by the
Board of Directors of the Corporation. Reacquired shares of the Common Stock as
well as unissued shares, may be used for the purpose of this Plan. Common Stock
subject to options which have terminated unexercised, either in whole or in
part, shall be available for future options granted under this Plan.

3.             Participation.
Each person who is not an employee of the Corporation or any Corporation
subsidiary corporation and who is a director of the Corporation as of June 1 of
each year, beginning June 1, 1992, shall automatically be granted an option to
purchase 3,000 shares of the Common Stock. Notwithstanding the foregoing, in
the event of any change in the capitalization of the Corporation, such as by
stock dividend, stock split, or what the Board of Directors of the Corporation
deems in its sole discretion to be similar circumstances, the number and kind
of shares which may be issued under this Plan shall be automatically adjusted
by the Board of Directors of the Corporation.

4.             Administration
of Plan.  This Plan shall be
administered by the Board of Directors of the Corporation. The Board of
Directors of the Corporation shall adopt such rules for the conduct of its
business and administration of this Plan as it considers desirable. The Board
of Directors of the Corporation shall have the exclusive right to construe the
Plan and the options issued pursuant to it, to correct defects and

 

omissions and to
reconcile inconsistencies to the extent necessary to effectuate the purpose of
this Plan and the options issued pursuant to it, and such action shall be
final, binding and conclusive upon all parties concerned. No member of the
Board of Directors of the Corporation shall be liable for any act or omission
(whether or not negligent) taken or omitted in good faith, or for the exercise
of any authority or discretion granted in connection with the Plan to the Board
of Directors, or for the acts or omissions of any other members of the Board of
Directors.

5.             Non-Qualified
Stock Options, Option Price and Term.

a.             Options issued pursuant to this Plan shall be
nonstatutory or non-qualified stock options. A non-qualified option is an
option which does not satisfy the requirements of Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”). The option price for the
non-qualified stock options issued under this Plan shall be equal to the fair
market value, of the Common Stock on the date of the grant of the option. The “fair
market value” of the Common Stock on any particular date shall mean the last
reported sale price of a share of the Common Stock on the NASDAQ National
Market System, as reported by NASDAQ, or on any stock exchange on which such
stock is then listed or admitted to trading, on such date, or if no sale took
place on such day, the last such date on which a sale took place, or if the
Common Stock is not then quoted on the NASDAQ National Market System or listed
or admitted to trading on any stock exchange, the average of the bid and asked
prices in the over-the-counter market on such date, or if none of the
foregoing, a price determined by the Board of Directors.

b.             Options issued pursuant to this Plan shall be issued
substantially in the form set forth in Appendix I hereof, which form is hereby
incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth herein. Options shall expire
ten years after the date they are granted, unless terminated earlier as provided
herein.

6.             Modification,
Amendment, Suspension and Termination. Options shall not be granted
pursuant to this Plan after the expiration of ten years from and after January
17, 1992, the date this Plan was approved by the Board of Directors of the
Corporation. This Plan is subject to approval by the shareholders of the
Corporation as provided in Section 7(e) of this Plan. The Board of Directors of
the Corporation reserves the right at any time, and from time to time, to
modify or amend this Plan in any way, or to suspend or terminate it, effective
as of such date, which date may be either before or after the taking of such action,
as may be specified by the Board of Directors of the Corporation; provided,
however, that (a) such action shall not affect options granted under the Plan
prior to the actual date on which such action occurred, (b) the Plan provisions
described in Rule 16b-3(c)(2) (ii) under the Securities Exchange Act of 1934,
as amended (the “1934 Act”) may not be amended more than once every six (6)
months (other than to comport with changes in the Code, the Employee Retirement
Income Security Act or the rules thereunder), and (c) any amendment to the Plan
which is described in (A), (B) or (C) of Rule 16b-3(b) (2) (ii) under the 1934
Act shall be approved by the shareholders of the

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Corporation in the
manner described in Section 7(e) hereof. If the Board of Directors voluntarily submits
a proposed modification, amendment, suspension or termination for shareholder
approval, such submission shall not require any future modifications,
amendments (whether or not relating to the same provision or subject matter),
suspensions or terminations to be similarly submitted for shareholder approval.

7.             General
Conditions.     (a)           Nothing contained in this Plan or any
option granted pursuant to this Plan shall confer upon any director the right
to continue as a director of the Corporation or interfere in any way with the
right of the Corporation to terminate him as a director.

(b)           Corporate action
constituting an offer of stock for sale to any director under the terms of the
options to be granted hereunder shall be deemed complete as of the date when
the actions of the shareholder(s) in electing or reelecting a non- employee
director are completed, regardless of when the option is actually delivered to
the non-employee director or CEO or acknowledged or agreed to by him.

(c)           The term “subsidiary
corporation” as used throughout this Plan shall mean a corporation in which the
Corporation owns, directly or indirectly, shares of stock representing fifty
percent or more of the outstanding voting power of all classes of stock of such
corporation at the time of the granting of an option under this Plan.

(d)           The use of the
masculine pronoun shall include the feminine gender whenever appropriate.

(e)           This Plan was
approved by the Board of Directors of the Corporation on January 17, 1992, and
it shall be effective as of such date. However, if the Plan is not approved by
the Corporation’s shareholders who represent a majority of the voting power, at
the next regular meeting of the shareholders of the Corporation, and if the
Plan is not approved by such shareholders prior to December 31, 1992, it shall
automatically terminate and all options granted hereunder shall be void.

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