Document:

BAD TOYS, INC. STOCK PLAN

 Exhibit 4.1 
  

BAD TOYS, INC. STOCK PLAN 
  
 SECTION 1. INTRODUCTION 
  
 1.1 Establishment. Bad Toys, Inc., a Nevada corporation (the “Company”), hereby establishes this plan of stock-based compensation
incentives for selected Eligible Participants of the Company and its affiliated corporations. This Plan shall be known as the Bad Toys, Inc. Stock Plan (the “Plan”). 
  
 1.2 Purpose. The purpose of this Plan is to promote the best interests of the Company, and its stockholders by providing a
means of non-cash remuneration to selected Eligible Participants who contribute most to the operating progress and earning power of the Company and/or to provide incentives to employees and directors by offering them an opportunity to acquire a
proprietary interest in the Company. 
  
 SECTION
2. DEFINITIONS 
  
 The following definitions shall be applicable
to the terms used in this Plan: 
  
 2.1 “Affiliated
Corporation” means any corporation that is either a parent corporation with respect to the Company or a subsidiary corporation with respect to the Company (within the meaning of Sections 424(e) and (f), respectively, of the Internal Revenue
Code). 
  
 2.2 “Code” means the Internal Revenue Code of
1986, as it may be amended from time to time. 
  
 2.3
“Committee” means a committee designated by the Board of Directors to administer this Plan or, if no committee is so designated, the Board of Directors. Any Committee member who is also an Eligible Participant may receive an Option or
Stock Award only if he abstains from voting in favor of a grant to himself, and the grant is determined and approved by the remaining Committee members. The Board of Directors, in its sole discretion, may at any time remove any member of the
Committee and appoint another Director to fill any vacancy on the Committee. 
  
 2.4 “Common Stock” means the Company’s $0.001 par value common stock. 
  
 2.5 “Company” means Bad Toys, Inc., a Nevada corporation. 
  
 2.6 “Effective Date” means the effective date of this Plan, as set forth in Section 17 hereof. 
  
 2.7 “Eligible Participant” means any employee, director, officer,
consultant, or advisor of the Company who is determined (in accordance with the provisions of Section 4 hereof) to be eligible to receive an Option or Stock Award hereunder. 
  

 2.8 “Option” means the grant to an Eligible Participant of a right to acquire shares of Common
Stock. 
  
 2.9 “Plan” means this March 4, 2004 Bad Toys,
Inc. Stock Plan. 
  
 2.10 “Stock Award” means the grant
to an Eligible Participant of shares of Common Stock issuable directly under this Plan rather than upon exercise of an Option. 
  
 Wherever appropriate, words used in this Plan in the singular may mean the plural, the plural may mean the singular, and the masculine may mean the
feminine. 
  
 SECTION 3. ADOPTION AND
ADMINISTRATION OF THIS PLAN 
  
 Upon adoption by the
Company’s Board of Directors, this Plan became effective as of March 4, 2004. In the absence of contrary action by the Board of Directors, and except for action taken by the Committee pursuant to Section 4 in connection with the determination
of Eligible Participants, any action taken by the Committee or by the Board of Directors with respect to the implementation, interpretation or administration of this Plan shall be final, conclusive and binding. 
  
 SECTION 4. ELIGIBILITY AND AWARDS 
  
 The Committee shall determine at any time and from time to time after the
effective date of this Plan: (i) the Eligible Participants, as same shall be determined in accordance with the requirements of Form S-8 and the Securities Act of 1933, as amended; (ii) the number of shares of Common Stock issuable directly or to be
granted pursuant to an Option; (iii) the price per share at which each Option may be exercised, in cash or cancellation of fees for services for which the Company is liable, if applicable, or the value per share if a direct issue of stock pursuant
to a Stock Award; and (iv) the terms on which each Option may be granted. Such determination, as may from time to time be amended or altered at the sole discretion of the Committee. Notwithstanding the provisions of Section 3 hereof, no such
determination by the Committee shall be final, conclusive and binding upon the Company unless and until the Board of Directors has approved the same; provided, however, that if the Committee is composed of a majority of the persons then comprising
the Board of Directors of the Company, such approval by the Board of Directors shall not be necessary. 
  
 SECTION 5. GRANT OF OPTION OR STOCK AWARD 
  
 Subject to the terms and provisions of this Plan, the terms and conditions under which an Option or Stock Award may be granted to an Eligible Participant
shall be set forth in a written agreement (i.e., a Consulting Agreement, Services Agreement, Fee Agreement, or Employment Agreement) or, if an Option, a written Grant of Option in the form attached hereto as Exhibit A (which may contain such
modifications thereto and such other provisions as the Committee, in its sole discretion, may determine). 
  

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 SECTION 6. TOTAL NUMBER OF SHARES OF COMMON STOCK 
  
 The total number of shares of Common Stock reserved for issuance by the
Company either directly as Stock Awards or underlying Options granted under this Plan shall not be more than 2,500,000. The total number of shares of Common Stock reserved for such issuance may be increased only by a resolution adopted by the Board
of Directors and amendment of this Plan. Such Common Stock may be authorized and unissued or reacquired Common Stock of the Company. 
  
 SECTION 7. PURCHASE OF SHARES OF COMMON STOCK 
  

7.1 As soon as practicable after the determination by the Committee and approval by the Board of Directors (if necessary, pursuant to Section 4 hereof)
of the Eligible Participants and the number of shares an Eligible Participant may be issued directly as a Stock Award or eligible to purchase pursuant to an Option, the Committee shall give written notice thereof to each Eligible Participant, which
notice may be accompanied by the Grant of Option, if appropriate, to be executed by such Eligible Participant. 
  
 7.2 The negotiated cost basis of stock issued directly as a Stock Award or the exercise price for each Option to purchase shares of Common Stock pursuant
to paragraph 7.1 shall be as determined by the Committee, it being understood that the price so determined by the Committee may vary from one Eligible Participant to another. In computing the negotiated direct issue price as a Stock Award or the
Option exercise price per share of Common Stock, the Committee shall take into consideration, among other factors, the restrictions set forth in Section 11 hereof. 
  
 SECTION 8. TERMS AND CONDITIONS OF OPTIONS 
  
 The Committee shall determine the terms and conditions of each Option granted to Eligible Participants, which terms shall be
set forth in writing. The terms and conditions so set by the Committee may vary from one Eligible Participant to another. 
  
 SECTION 9. DELIVERY OF SHARES OF COMMON STOCK UPON EXERCISE OF OPTION 
  
 The Company shall deliver to each Eligible Participant such number of shares of Common Stock as such Eligible Participant is
entitled to receive pursuant to a Stock Award or elects to purchase upon exercise of the Option. Such shares, which shall be fully paid and nonassessable upon the issuance thereof shall be represented by a certificate or certificates registered in
the name of the Eligible Participant and stamped with an appropriate legend referring to the restrictions thereon, if any. Subject to the terms and provisions of the Nevada General Corporation Law and the written agreement to which he is a party, an
Eligible Participant shall have all the rights of a stockholder with respect to such shares, including the right to vote the shares and to receive all dividends or other distributions paid or made with respect thereto, provided that such shares
shall be subject to the restrictions hereinafter set forth. In the event of a merger or consolidation to which the Company is a party, or of any other acquisition of a majority of the issued and outstanding shares of Common Stock of the Company

  

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 involving an exchange or a substitution of stock of an acquiring corporation for Common Stock of the Company, or of any
transfer of all or substantially all of the assets of the Company in exchange for stock of an acquiring corporation, a determination as to whether the stock of the acquiring corporation so received shall be subject to the restrictions set forth in
Section 11 shall be made solely by the acquiring corporation. 
  
 SECTION 10. RIGHTS OF EMPLOYEES; ELIGIBLE PARTICIPANTS 
  
 10.1 Employment. Nothing contained in this Plan or in any Option or Stock Award granted under this Plan shall confer upon any Eligible Participant any right with respect to the continuation of his or her employment by
the Company or any Affiliated Corporation, or interfere in any way with the right of the Company or any Affiliated Corporation, subject to the terms of any separate employment agreement to the contrary, at any time to terminate such employment or to
increase or decrease the compensation of the Eligible Participant from the rate in existence at the time of the grant of an Option or Stock Award. Whether an authorized leave of absence, or absence in military or government service, shall constitute
termination of employment shall be determined by the Committee at the time. 
  
 10.2 Non-transferability. No right or interest of any Eligible Participant in an Option or Stock Award shall be assignable or transferable during the lifetime of the Eligible Participant, either voluntarily or
involuntarily, or subjected to any lien, directly or indirectly, by operation of law, or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. However, the Board of Directors may, in its sole discretion, permit
transfers to family members if and to the extent such transfers are permissible under applicable securities laws. In the event of an Eligible Participant’s death, an Eligible Participant’s rights and interest in an Option or Stock Award
shall be transferable by testamentary will or the laws of descent and distribution, and delivery of any shares of Common Stock due under this Plan shall be made to, and exercise of any Options may be made by, the Eligible Participant’s legal
representatives, heirs or legatees. If in the opinion of the Committee a person entitled to payments or to exercise rights with respect to this Plan is unable to care for his or her affairs because of mental condition, physical condition, or age,
payment due such person may be made to, and such rights shall be exercised by, such person’s guardian, conservator or other legal personal representative upon furnishing the Committee with evidence satisfactory to the Committee of such status.

  
 SECTION 11. GENERAL RESTRICTIONS 

 
 11.1 Investment Representations. The Company may require any person to
whom an Option or Stock Award is granted, as a condition of exercising such Option, or receiving such Stock Award, to give written assurances in substance and form satisfactory to the Company and its counsel to the effect that such person is
acquiring the Common Stock subject to the Option or Stock Award for his or her own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or
appropriate in order to comply with federal and applicable state securities laws. 
  
 11.2 Restrictions on Transfer of Common Stock. The shares of Common Stock issuable directly as a Stock Award or upon exercise of an Option may not be offered for sale, 

  

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 sold or otherwise transferred except pursuant to an effective registration statement or pursuant to an
exemption from registration, the availability of which is to be established to the satisfaction of the Company, and any certificates representing shares of Common Stock will bear a legend to that effect. However, the Company may, in the sole
discretion of the Board of Directors, register with the Securities and Exchange Commission some or all of the shares of Common Stock reserved for issuance under this Plan. Special resale restrictions may, however, continue to apply to officers,
directors, control shareholders and affiliates of the Company and such persons will be required to obtain an opinion of counsel as regards their ability to resell shares received pursuant to this Plan. 
  
 11.3 Compliance with Securities Laws. Each Option or Stock Award shall be
subject to the requirement that if at any time counsel to the Company shall determine that the listing, registration or qualification of the shares of Common Stock subject to such Option or Stock Award upon any securities exchange or under any state
or federal law, or the consent or approval of any governmental or regulatory body, is necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder, such Option or Stock Award may not be accepted or exercised in
whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to require the Company to apply for or to obtain
such listing, registration or qualification. 
  
 11.4 Changes in
Accounting Rules. Notwithstanding any other provision of this Plan to the contrary, if, during the term of this Plan, any changes in the financial or tax accounting rules applicable to Options or Stock Awards shall occur that, in the sole judgment
of the Committee, may have a material adverse effect on the reported earnings, assets or liabilities of the Company, the Committee shall have the right and power to modify as necessary, or cancel, any then outstanding and unexercised Options.

  
 SECTION 12. COMPLIANCE WITH TAX REQUIREMENTS

  
 Each Eligible Participant shall be liable for payment of all
applicable federal, state and local income taxes incurred as a result of the receipt of a Stock Award or an Option, the exercise of an Option, and the sale of any shares of Common Stock received pursuant to a Stock Award or upon exercise of an
Option. The Company may be required, pursuant to applicable tax regulations, to withhold taxes for an Eligible Participant, in which case the Company’s obligations to deliver shares of Common Stock upon the exercise of any Option granted under
this Plan or pursuant to any Stock Award, shall be subject to the Eligible Participant’s satisfaction of all applicable federal, state and local income and other income tax withholding requirements. 
  
 SECTION 13. PLAN BINDING UPON ASSIGNS OR TRANSFEREES

  
 In the event that, at any time or from time to time, any
Option or Stock Award is assigned or transferred to any party (other than the Company) pursuant to the provisions of Section 10.2 hereof, such party shall take such Option or Stock Award pursuant to all provisions and conditions of this Plan, and,
as a condition precedent to the transfer of such interest, such party 
  

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shall agree (for and on behalf of himself or itself, his or its legal representatives and his or its transferees and assigns) in writing to be bound by all
provisions of this Plan. 
  
 SECTION 14. COSTS
AND EXPENSES 
  
 All costs and expenses with respect to the
adoption, implementation, interpretation and administration of this Plan shall be borne by the Company. 
  
 SECTION 15. CHANGES IN CAPITAL STRUCTURE OF THE COMPANY 
  
 Appropriate adjustments shall be made to the number of shares of Common Stock issuable pursuant to an incomplete or pending
Stock Award that has not yet been delivered or upon exercise of any Options and the exercise price thereof in the event of: (i) a subdivision or combination of any of the shares of capital stock of the Company; (ii) a dividend payable in shares of
capital stock of the Company; (iii) a reclassification of any shares of capital stock of the Company; or (iv) any other change in the capital structure of the Company. 
  
 SECTION 16. PLAN AMENDMENT, MODIFICATION AND TERMINATION 
  
 The Board, upon recommendation of the Committee or at its own initiative, at
any time may terminate and at any time and from time to time and in any respect, may amend or modify this Plan, including: 
  
 (a) Increase the total amount of Common Stock that may be awarded under this Plan, except as provided in Section 15 of this Plan;

  
 (b) Change the classes of persons from which
Eligible Participants may be selected or materially modify the requirements as to eligibility for participation in this Plan; 
  
 (c) Increase the benefits accruing to Eligible Participants; or 
  
 (d) Extend the duration of this Plan. 
  
 Any Option or other Stock Award granted to a Eligible Participant prior to the date this Plan is amended, modified or
terminated will remain in effect according to its terms unless otherwise agreed upon by the Eligible Participant; provided, however, that this sentence shall not impair the right of the Committee to take whatever action it deems appropriate under
Section 11 or Section 15. The termination or any modification or amendment of this Plan shall not, without the consent of a Eligible Participant, affect his rights under an Option or other Stock Award previously granted to him. 
  

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 SECTION 17. EFFECTIVE DATE OF THIS PLAN 
  
 17.1 Effective Date. This Plan is effective as of March 4, 2004, the date it
was adopted by the Board of Directors of the Company. 
  
 17.2
Duration of this Plan. This Plan shall terminate at midnight on March 3, 2009, which is the day before the 5th anniversary of the Effective Date, and may be extended thereafter or terminated prior thereto by action of the Board of Directors; and no
Option or Stock Award shall be granted after such termination. Options and Stock Awards outstanding at the time of this Plan termination may continue to be exercised, or become free of restrictions, in accordance with their terms. 
  
 SECTION 18. BURDEN AND BENEFIT 
  
 The terms and provisions of this Plan shall be binding upon, and shall inure
to the benefit of, each Eligible Participant, his executives or administrators, heirs, and personal and legal representatives. 
  
 Dated as of the 4th day of March, 2004. 
  

			
	 BAD TOYS, INC.

		
	By:	 	/s/    Larry N. Lunan        
	

	Larry N. Lunan, President and Chief Executive Officer

  

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 EXHIBIT A 
  
 FORM OF GRANT OF OPTION 
 PURSUANT TO THE BAD
TOYS, INC. STOCK PLAN 
  
 Bad Toys, Inc., a Nevada corporation
(the “Company”), hereby grants to                          (“Optionee”) an Option to
purchase              shares of common stock, $.0.001 par value (the “Shares”) of the Company at the purchase price of
$             per share (the “Purchase Price”), in accordance with and subject to the terms and conditions of the Bad Toys, Inc. Stock Plan (the
“Plan”). This option is exercisable in whole or in part, and upon payment in cash or cancellation of fees, or other form of payment acceptable to the Company, to the principal office of the Company. This Grant of Option supersedes
and replaces any prior notice of option grant, description of vesting terms or similar documents previously delivered to Optionee for options granted on the date stated below. 
  
 Unless otherwise set forth in a separate written agreement, in the event that Optionee’s employee or consultant status
with the Company or any of its subsidiaries ceases or terminates for any reason whatsoever, including, but not limited to, death, disability, or voluntary or involuntary cessation or termination, this Grant of Option shall terminate with respect to
any portion of this Grant of Option that has not vested prior to the date of cessation or termination of employee or consultant status, as determined in the sole discretion of the Company. In the event of termination for cause (as that term is
defined in the applicable consulting employment or fee agreement), this Grant of Option shall immediately terminate in full with respect to any un-exercised options, and any vested but un-exercised options shall immediately expire and may not be
exercised. Unless otherwise set forth in a separate written agreement, vested options must be exercised within six months after the date of termination (other than for cause), unless earlier expired pursuant to the Expiration Date set forth below.

  
 Subject to the preceding paragraph, this Grant of Option, or
any portion hereof, may be exercised only to the extent vested per the attached schedule, and must be exercised by Optionee no later than
                         (the “Expiration Date”) by (i) notice in writing, signed by Optionee; and (ii)
payment of the Purchase Price pursuant to the terms of this Grant of Option and the Plan. Any portion of this Grant of Option that is not exercised on or before the Expiration Date shall lapse. The notice must refer to this Grant of Option, and it
must specify the number of shares being purchased, and recite the consideration being paid therefor. Notice shall be deemed given on the date on which the notice is received by the Company. 
  
 This Option shall be considered validly exercised once payment therefor has
cleared the banking system or the Company has issued a credit memo for services in the appropriate amount, or receives a duly executed acceptable promissory note, if the Option is granted with deferred payment, and the Company has received written
notice of such exercise. If payment is not received within two business days after the date the notice is received, the Company may deem the notice to be invalid. 
  
 If Optionee fails to exercise this Option in accordance with this Grant of Option, then this Grant of Option shall terminate
and have no force and effect, in which event the Company and Optionee shall have no liability to each other with respect to this Grant of Option. 
  
 This Option may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
  
 The validity,
construction and enforceability of this Grant of Option shall be construed under and governed by the laws of the State of Nevada, without regard to its rules concerning conflicts of laws, and any action brought to enforce this Grant of Option or
resolve any controversy, breach or disagreement relative hereto shall be brought only in a court of competent jurisdiction within the State of Nevada. 
  
 The shares of common stock issuable upon exercise of the Option (the “Underlying Shares”) may not be sold, exchanged, assigned, transferred or
permitted to be transferred, whether voluntarily, involuntarily or by operation of law, delivered, encumbered, discounted, pledged, hypothecated or otherwise disposed of until (i) the Underlying Shares have been registered with the Securities and
Exchange Commission pursuant to an effective 

  

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registration statement on Form S-8, or such other form as may be appropriate, in the discretion of the Company; or (ii) an Opinion of Counsel, satisfactory
to the Company, has been received, which opinion sets forth the basis and availability of any exemption for resale or transfer from federal or state securities registration requirements. 
  
 This Grant of Option relates to options granted
on                        ,             . 

 

			
	 BAD TOYS, INC.
  
 BY THE BOARD OF DIRECTORS OR A SPECIAL
 COMMITTEE THEREOF
  
 NOT FOR EXECUTION

		
	By:	 	 
	 	 	

	 	 	 
	 OPTIONEE:
  
 NOT FOR EXECUTION

	
	

  

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 GRANT OF OPTION PURSUANT TO THE 
 BAD TOYS, INC. STOCK PLAN 
  
 OPTIONEE:
                                        
                                        
     
  
 OPTIONS GRANTED:
                                        
                             
  
 PURCHASE PRICE:
$                     per Share 
  
 DATE OF GRANT:
                                        
                                 
  
 EXERCISE
PERIOD:                         to
                         
  
 VESTING SCHEDULE OF OPTION 
  

			
	#SHARES	  	DATE VESTED (ASSUMING CONTINUED EMPLOYMENT, ETC.)
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	                     	  	                                      
        
		
	 	  	 

 EXERCISED TO DATE: INCLUDING THIS EXERCISE
                                        

  
 BALANCE TO BE EXERCISED:
                                        

  

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 NOTICE OF EXERCISE 
 (TO BE SIGNED ONLY UPON EXERCISE OF THE OPTION) 
  
 TO: BAD TOYS, INC. (“Optionor”) 
  
 The undersigned, the holder of the Option described above, hereby irrevocably elects to exercise the purchase rights represented by such Option for, and
to purchase thereunder,                  shares of the Common Stock of Bad Toys, Inc., and herewith makes payment of
                         therefor. Optionee requests that the certificates for such shares be issued in the name of
Optionee and be delivered to Optionee at the address of
                                        
        , and if such shares shall not be all of the shares purchasable hereunder, represents that a new Notice of Exercise of like tenor for the appropriate balance of the shares, or a portion thereof,
purchasable under the Grant of Option pursuant to the Bad Toys, Inc. Stock Plan, be delivered to Optionor when and as appropriate. 
  

									
	 	 	 	 	 OPTIONEE:
  
 NOT FOR EXECUTION

			
	 Dated:
                        
	 	 	 	

	 	 	 	 	 	 	 	 	 

  

 11Agreement to renew Advisory Agreement

 EXHIBIT 10.2 
 December 31, 2003 
  
 Mr. Alan B. Miller

 President 
 UHS of Delaware, Inc. 
 367 South Gulph Road 
 King of Prussia, PA 19406 
  
 Dear Alan: 
  
 The Board of Trustees of Universal Health Realty Income Trust, at their December 1, 2003 meeting, authorized the renewal of
the current Advisory Agreement between the Trust and UHS of Delaware, Inc. (“Agreement”) upon the same terms and conditions. 
  
 This letter constitutes the Trust’s offer to renew the Agreement, until December 31, 2004, upon the same terms and conditions. Please acknowledge UHS
of Delaware’s acceptance of this offer by signing in the space provided below and returning one copy of this letter to me. 
  
 Sincerely, 
  
  
  
 Charles F. Boyle 
 Vice President, 
 Chief Financial Officer and 
 Controller 
  
  

	cc:	 	Warren J. Nimetz, Esq. 

	    	 	Cheryl K. Ramagano 

  
 Agreed to and Accepted: 
  
 UHS OF DELAWARE, INC.

  

			
		
	 By:
	 	 
	 	 	

	 	 	Alan B. Miller, President

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