Exhibit 4

                      NON-QUALIFIED STOCK OPTION AGREEMENT

         THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this "Agreement") is between
Mark Neuhaus (the  "Grantee") and the other party named on the signature page to
this  Agreement  (the  "Company").  Each of the Grantee and the Company are also
referred to in this agreement as the "Parties."

         WHEREAS,  the  Board  of  Directors  of  the  Company  (the  "Board  of
Directors") has authorized the grant to the Grantee, for services to be rendered
by the  Grantee  as a  consultant  to the  Company  pursuant  to the  terms of a
Consulting and Marketing License Agreement (the "Consulting  Agreement") between
the Company and the Grantee,  of a non-qualified  stock option (the "Option") to
purchase the number of shares of the Company's common stock (the "Common Stock")
specified in paragraph 1 of this Agreement,  at the price specified in paragraph
1 of this Agreement.

         NOW THEREFORE,  in  consideration  of the premises and mutual covenants
set forth in this Agreement, the Parties hereby agree as follows:

         1. Number of Shares;  Exercise  Price.  Pursuant to action taken by the
Board of Directors,  the Company hereby grants to the Grantee,  in consideration
of consulting  services to be performed for the benefit of the Company  pursuant
to the  Consulting  Agreement,  an option  ("Option")  to purchase the number of
common shares ("Option Shares") of Common Stock set forth below, at the exercise
price set forth below:

         Number of Shares or Total Dollar amount:  2,758,620


         Exercise Price or Percentage per Share (in US$):  $0.725 per share

         2.       Term.  The Option  and this  Agreement  shall  expire ten (10)
years from the date of this

Agreement.

         3.       Shares  Subject To Exercise.  The Option shall be  immediately
exercisable  and shall  remain  exercisable  for the entire  Term  specified  in
paragraph 2 of this Agreement.

         4. Method and Time of Exercise. The Option may be exercised in whole or
from time to time in part by written notice delivered to the Company stating the
number  of  Option  Shares  with  respect  to which  the  Option  is then  being
exercised,  together  with a check or wire to the Company in the amount equal to
the Exercise  Price  multiplied by the number of Option Shares then being issued
pursuant  to the written  notice of  exercise.  Not less than one hundred  (100)
Option  Shares  may be  purchased  upon  exercise  of the Option at any one time
unless the number of Option  Shares  for which  exercise  of the Option is being
made is all of the Option Shares then issuable upon exercise of the Option. Only
whole shares shall be issued upon exercise of the Option.

         5.       Tax  Withholding.  As a  condition  to exercise of the options
Grantee shall be liable to pay to all applicable federal, state and local taxes.

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         6.       Exercise Following  Termination of Consulting  Agreement.  The
Option shall not terminate as a result of the termination of Grantee's  services
as a consultant to the Company pursuant to the Consulting Agreement.

         7.       Transferability.  The  Option  and this  Agreement  may not be
assigned  or  transferred  except  by  will  or  by  the  laws  of  descent  and
distribution, and with consent of the Company.

         8.       Grantee Not a Shareholder. The Grantee shall have no rights as
a  shareholder  with respect to the Option  Shares issued from time to time upon
exercise of the Option until the earlier of: (1) the date of issuance of a stock
certificate or stock certificates to the Grantee applicable to the Option Shares
then  issuable  to the Grantee  upon  exercise of the Option and (2) the date on
which the Grantee or his  nominee is recorded as owner of such Option  Shares on
the Company's stock ledger by the Company's  registrar and transfer agent, which
may be the Company.  Except as set forth in paragraph 13 of this  Agreement,  no
adjustment  will be made for dividends or other rights for which the record date
is prior to the earlier of the events  described  in clauses (1) and (2) of this
paragraph.

         9.       Restrictions  on Transfer.  The Grantee  represents and agrees
that,  upon the  Grantee's  exercise  of the Option in whole or in part,  unless
there is in effect at that time under the  Securities Act of 1933 a registration
statement  relating to the Option  Shares,  the Grantee  will acquire the Option
Shares for the  purpose  of  investment  and not with a view to their  resale or
further  distribution,  and that upon such  exercise  hereof,  the Grantee  will
furnish to the Company a written  statement to such effect,  satisfactory to the
Company in form and substance.

         10.      Shares  Qualified  for Listing.  Company  represents  that its
Common  Stock is qualified  for trading or quotation on a nationally  recognized
securities  exchange or stock quotation system,  including,  without limitation,
the NASDAQ  Bulletin  Board,  and for trading with the California  Department of
Corporations or such other applicable jurisdictions.

         11.      Registration Rights. Upon signing this Agreement,  the Company
shall immediately,  at the Company's expense,  use its best efforts to file with
the  Securities  and  Exchange  Commission  ("SEC"),  a  registration  statement
("Registration Statement") on Form S-8 or other comparable form, or if such form
is not then available, such other form of registration statement then available,
in such form as to comply with applicable federal and state laws for the purpose
of registering or qualifying the Option Shares for public resale by the Grantee,
and  prepare  and  file  with  the  appropriate   state  securities   regulatory
authorities the documents reasonably necessary to register or qualify the Option
Shares,  subject to the ability of the Company to register or qualify the Option
Shares under applicable state law.

         12.      Notices.  All notices to the Company shall be addressed to the
Company at the  principal  office of the Company at the  address  and  facsimile
number set forth on the signature page of this Agreement, and all notices to the
Grantee shall be addressed to the Grantee at the address and facsimile number of
the Grantee set forth on the signature  page of this Agreement or, if different,
the last address and facsimile number on file with the Company, or to such other
address and facsimile number as either may designate to the other in writing.  A
notice  shall be  deemed to be duly  given if and when  enclosed  in a  properly
addressed sealed envelope  deposited,  postage prepaid and followed by facsimile
to the addressee. In lieu of giving notice by mail as aforesaid, written notices
under this Agreement may be given by personal  delivery to the Grantee or to the
Company  (as the case may be) by  nationally  recognized  courier  or  overnight
delivery service.

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         13.      Adjustments.  If there is any change in the  capitalization of
the Company after the date of this Agreement  affecting in any manner the number
of kind of outstanding  shares of Common Stock of the Company,  whether by stock
dividend,  stock split,  reclassification  or recapitalization of such stock, or
because  the  Company  has  merged  or  consolidated  with  one  or  more  other
corporations  (and  provided the Option does not thereby  terminate  pursuant to
paragraph 14 of this Agreement), then the number and kind of shares then subject
to the Option and the exercise  price to be paid for the Option  Shares shall be
appropriately  adjusted by the Board of Directors;  provided however, that in no
event shall any such adjustment  result in the Company being required to sell or
issue any fractional shares. Any such adjustment shall be made without change in
the  aggregate  exercise  price  applicable  to the  unexercised  portion of the
Option, but with an appropriate  adjustment to the exercise price of each Option
Share or other unit of security then covered by the Option and this Agreement.

         14.      Cessation of Corporate  Existence.  Notwithstanding  any other
provision  of this  Agreement,  in the  event of the  reorganization,  merger or
consolidation of the Company with one or more  corporations as a result of which
the Company is not the surviving  corporation,  or the sale of substantially all
the  assets of the  Company  or of more  than  fifty  percent  (50%) of the then
outstanding  stock of the Company to another  corporation  or other  entity in a
single  transaction,  the Option  grated  hereunder  shall  terminate,  provided
however,  that not later than five (5) days  before the  effective  date of such
merger  or  consolidation  or sale of assets  in which  the  Company  is not the
surviving  corporation,  the  surviving  corporation  may,  but  shall not be so
obligated  to, tender to the Grantee an option to purchase a number of shares of
capital stock of the surviving  corporation equal to the number of Option Shares
then issuable  upon  exercise of the Option,  and such new option or options for
shares of the surviving  corporation  shall contain such terms,  conditions  and
provisions  as shall be  required  substantially  to  preserve  the  rights  and
benefits of the Option and this Agreement.

         15.      Miscellaneous.
                  -------------

(a)      Entire Agreement.  This Agreement and the Consulting  Agreement contain
         the  entire  agreement  between  the  Parties,  and may not be  waived,
         amended, modified or supplemented except by agreement in writing signed
         by  the  Party  against  whom  enforcement  of any  waiver,  amendment,
         modification or supplement is sought.  Waiver of or failure to exercise
         any rights  provided by this Agreement and the Consulting  Agreement in
         any  respect  shall  not be deemed a waiver  of any  further  or future
         rights.

(b)      Governing  Law. This  Agreement  shall be construed  under the internal
         laws of the  State  of  California,  and the  Parties  agree  that  the
         exclusive  jurisdiction for any litigation or arbitration  arising from
         this  Agreement  shall be in Los Angeles,  California or New York City,
         New York to be mutually agreed upon by both parties.

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<PAGE>

(c)      Counterpart.   This   Agreement   may  be   executed  in  two  or  more
         counterparts, each of which shall be deemed an original, but which when
         taken together shall constitute one agreement.

(d)      Severability.  If one or more  provisions of this Agreement are held to
         be  unenforceable  under  applicable  law, such  provision(s)  shall be
         excluded from this Agreement and the balance of this Agreement shall be
         interpreted as if such provision were excluded and shall be enforceable
         in accordance with its terms.


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<PAGE>


         IN WITNESS  WHEREOF the Parties  hereto have executed this Agreement as
of the date set forth below.

Date: 8/29/01                       OPTIONEE:



                                          /s/ Mark Neuhaus
                                      -------------------------------
                                              Mark Neuhaus
                                              Social Security Number:


                                              Address for Notices:





                                    COMPANY:

                                  SULPHCO, INC


                                              By:/s/ Rudolph W. Gunnerman
                                              -----------------------------
                                              Name:  Rudolph W. Gunnerman
                                              Title: Chairman of the Board




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