Document:

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                                                                   Exhibit 10.30

                        NEW YORK RESTAURANT GROUP, L.L.C.

                                1996 OPTION PLAN

    1.   PURPOSE OF THE PLAN.

    This option plan (the "Plan") is intended to grant an opportunity to
participate in the equity securities of New York Restaurant Group, L.L.C., a New
York limited liability company (the "Company") to members of senior management
of the Company, to induce qualified management personnel to enter and remain in
the employ of the Company and otherwise to provide an additional incentive for
optionees to promote the success of its business.

    2. UNITS SUBJECT TO THE PLAN.

    (a) The total number of Units representing interests of the Company
("Units") for which options may be granted under the Plan shall not exceed
256,350 Units constituting 8% of the equity interests of the Company, subject
to adjustment as provided in Section 12 hereof.

    (b) If an option granted hereunder shall expire or terminate for any reason
without having been exercised in full, the unpurchased Units subject thereto
shall not thereafter be available for subsequent option grants under the Plan.

    (c) Units issuable upon the exercise of an option granted under the Plan
shall be subject to such restrictions on transfer, repurchase rights or other
restrictions (i) as set forth in the Members Agreement dated as of January 1,
1996 among the Company and the members named therein, (ii) as shall be
determined by the Managers of the Company, and (iii) as set forth in the option
agreement referenced below.

    3. ADMINISTRATION OF THE PLAN.

    (a) The Plan shall be administered by the Manager of the Company. The
decision of the Manager as to all questions of interpretation and application of
the Plan shall be final, binding and conclusive on all persons. The Manager may,
in its sole discretion, grant options to purchase Units and issue Units upon the
exercise of such options as provided in the Plan. The Manager shall have
authority, subject to the express provisions of the Plan, to construe the
respective option agreements and the Plan, to prescribe, amend and rescind rules
and regulations relating to the Plan, to determine the terms and provisions of
the respective option agreements, which may but need not be identical, and to
make all other determinations in the judgment of the Manager necessary or
desirable for the administration of the Plan. The Manager may correct any defect
or supply any omission or reconcile any inconsistency in the Plan or in any
option agreement in the manner and to the extent it shall deem expedient to
carry the Plan into effect and shall be the sole and final judge of such
expediency. No Manager shall be liable for any action or determination made in
good faith.

    4. TYPE OF OPTIONS.
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    Options granted pursuant to the Plan shall be authorized by action of the
Manager of the Company and shall be designated as non-qualified options which
are not intended to meet the requirements of Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code").

    5. ELIGIBILITY.

    Non-qualified options may be granted to the officers and key employees of
the Company or any "subsidiary corporation" as defined in Section 424 of the
Code and the Treasury Regulations promulgated thereunder.

    In determining the eligibility of an individual to be granted an option, as
well as in determining the number of Units to be optioned to any individual, the
Manager shall take into account the position and responsibilities of the
individual being considered, the nature and value to the Company or its
subsidiaries of his or her service and accomplishments, his or her present and
potential contribution to the success of the Company or its subsidiaries, and
such other factors as the Manager deems relevant.

    6. OPTION AGREEMENT.

    Each option shall be evidenced by an option agreement (the "Agreement") duly
executed on behalf of the Company and by the optionee to whom such option is
granted, which Agreement shall comply with and be subject to the terms and
conditions of the Plan. The Agreement may contain such other terms, provisions
and conditions which are not inconsistent with the Plan as may be determined by
the Manager. No option shall be granted within the meaning of the Plan and no
purported grant of any option shall be effective until the Agreement shall have
been duly executed on behalf of the Company and the optionee.

    7. OPTION PRICE.

    The option price of Units for non-qualified options granted as of the date
of the Closing of the Company's sale of up to $10,000,000 in aggregate principal
amount of 6% Convertible Exchangeable Notes shall be $10.00 per Unit and any
options granted hereunder at any time thereafter shall be the fair market value
of the Units, as determined by the Manager.

    8. MANNER OF PAYMENT; MANNER OF VESTING.

    (a) Options granted under the Plan may provide for the payment of the
purchase price upon exercise by delivery of cash or a certified or bank
cashiers check or checks payable to the order of the Company in an amount
equal to the exercise price of such options.

    (b) To the extent that the right to purchase Units under an option has
accrued and is in effect, options shall be exercised in full at one time or in
part from time to time, only pursuant to a written notice, signed by the person
or persons in whom the option is vested, to the Company, stating the number of
Units with respect to which the option has vested, accompanied by payment in
full for such Units as provided in subparagraph (a) above. Upon such exercise,
delivery of a certificate for paid-up non-assessable Units shall be made at the
principal office of

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the Company to the person or persons in whom the option has vested at such time,
during ordinary business hours, within thirty (30) days from the date of receipt
of the notice by the Company, as shall be designated in such notice, or at such
time, place and manner as may be agreed upon by the Company and the person or
persons in whom the option has vested.

    9. VESTING OF OPTIONS.

    Each option granted under the Plan shall, subject to Section 10(b) and
Section 12 hereof, vest based upon a vesting schedule which is dependent upon
performance criteria all as set forth in the Agreement.

    10. TERM OF OPTIONS.

    (a) TERM.

           Each option shall expire not more than ten (10) years and six (6)
months from the date of the granting thereof, but shall be subject to earlier
termination as provided in subsection (b) below.

    (b) TERMINATION OF EMPLOYMENT.

    An option granted to an employee optionee who ceases to be an employee of
the Company or any of its subsidiaries, at any time, for any reason or for no
reason, shall be exercisable only to the extent that the right to purchase Units
under such option has accrued and is in effect on the date such optionee ceases
to be an employee of the Company or any of its subsidiaries. The unvested
portion of any option shall terminate immediately upon the optionee ceasing to
be an employee of the Company or any of its subsidiaries.

    11. OPTIONS NOT TRANSFERABLE.

    The right of any optionee to exercise any option granted to him or her shall
not be assignable or transferable by such optionee otherwise than by will or the
laws of descent and distribution, and any such option shall be exercisable
during the lifetime of such optionee only by him or her.

    12. RECAPITALIZATIONS, REORGANIZATIONS AND THE LIKE.

    In the event of any change in the outstanding Units (including a change in
the value of the Units pursuant to a change into or exchange for a different
number or kind of shares or Units or other securities of the Company or of
another corporation) by reason of any reorganization, merger, consolidation,
recapitalization, reclassification, stock split-up, combination of units, or
dividends payable in capital stock or other property, appropriate adjustment
shall be made in the number and kind of Units as to which outstanding options or
portions thereof, then outstanding, shall be subject. In accordance herewith,
the proportionate interest of the optionee shall be maintained as before the
occurrence of such event; such adjustment in outstanding options shall be made
without change in the price applicable to the unexercised portion of such
options and with a corresponding adjustment in the option price per Unit.

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    In addition, unless otherwise determined by the Manager in its sole
discretion, in the case of any Change in Control (as defined in the Agreement)
of the Company, (i) the purchaser(s) of the Company's assets or stock may,
in his, her or its discretion, deliver to the optionee, with respect to each
Unit covered by the unexercised portion of the Option held by the optionee, the
same kind and amount of consideration that is delivered to the Members of the
Company as a result of such sale, conveyance or Change in Control, or (ii) the
Manager may, in its sole determination, with respect to each Unit covered by the
unexercised portion of the Option pay to such optionee in cash or in kind, which
consideration in both cases shall be equal in value to the value of those Units
or other consideration the optionee would have received had the option been
fully vested and exercised in full and no disposition of the Units acquired upon
such exercise been made prior to such sale, conveyance or Change in Control,
less the option price therefor. Upon receipt of such consideration by the
optionee, his or her option shall immediately terminate and be of no further
force and effect. The value of the securities the optionee would have received
if the option had been exercised shall be determined in good faith by the
Manager of the Company. In addition, in the case of any such Change in Control
or sale or conveyance of all or substantially all of the property and assets of
the Company, the Manager may, in its sole discretion, accelerate the vesting of
any option granted hereunder.

    Except in connection with a conversion to a corporation, upon dissolution or
liquidation of the Company, all options shall terminate, but the Options shall
become fully vested (other than unvested options described in paragraph (b) of
SCHEDULE 1 to the Agreement) thirty (30) days prior to such dissolution or
liquidation and each optionee shall have the right, exercisable for a period of
at least thirty (30) days prior to such dissolution or liquidation, to purchase
Units pursuant to the option to the extent such option has vested and is then
outstanding.

    No fraction of a Unit shall be purchasable or deliverable upon the exercise
of any option, but in the event any adjustment hereunder of the number of Units
covered by the option shall cause such number to include a fraction of a Unit,
such fraction shall be adjusted to the nearest smaller whole number of Units.

    13. NO SPECIAL EMPLOYMENT RIGHTS.

    Nothing contained in the Plan or in any option granted under the Plan shall
confer upon any option holder any right with respect to the continuation of his
or her employment by the Company (or any of its subsidiaries) or interfere in
any way with the right of the Company (or its subsidiaries), 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
option holder from the rate in existence at the time of the grant of an option.
Whether an authorized leave of absence, or absence in military or government
service, shall constitute termination of employment shall be determined by the
Manager at the time.

    14. WITHHOLDING.

    The Company's obligation to deliver Units upon the exercise of the
non-qualified option granted under the Plan shall be subject to the option
holder's satisfaction of all applicable federal, state and local income and
employment tax withholding requirements. The Company and

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employee may agree to withhold Units purchased upon the exercise of an option to
satisfy the above-mentioned withholding requirements.

    15. RESTRICTIONS ON ISSUE OF COMMON SHARES.

    (a) Notwithstanding the provisions of Section 8 herein, the Company may
delay the issuance of Units covered by the exercise of an option and the
delivery of a certificate for such Units until one of the following conditions
shall be satisfied:

                (i) The Units with respect to which such option has been
exercised are at the time of the issue of such Units effectively registered or
qualified under applicable federal and state securities laws now in force or as
hereafter amended; or

              (ii) Counsel for the Company shall have given an opinion, which
opinion shall not be unreasonably conditioned or withheld, that such Units are
exempt from registration and qualification under applicable federal and state
securities acts now in force or as hereafter amended.

    (b) It is intended that all purchases of Units pursuant to exercised options
shall be effective, and the Company shall use its best efforts to bring about
compliance with the above conditions within a reasonable time, except that the
Company shall be under no obligation to qualify Units or to cause a registration
statement or a post-effective amendment to any registration statement to be
prepared for the purpose of covering the issue of Units pursuant to the exercise
of any option, except as otherwise agreed to by the Company in writing.

    16. PURCHASE FOR INVESTMENT.

    Unless the Units to be issued upon purchase of Units pursuant to the
exercise of an option granted under the Plan have been effectively registered
under the Securities Act of 1933, as amended, as now in force or hereafter
amended, the Company shall be under no obligation to issue any Units covered by
any option unless the person who purchases Units in connection therewith, in
whole or in part, shall give a written representation and undertaking to the
Company which is satisfactory in form and scope to counsel for the Company and
upon which, in the opinion of such counsel, the Company may reasonably rely,
that he or she is acquiring the Units issued pursuant to such option for his or
her own account as an investment and not with a view to, or for sale in
connection with, the distribution of any such Units in violation of applicable
federal and state securities laws, and that he or she will make no transfer of
the same except in compliance with any rules and regulations in force at the
time of such transfer under the Securities Act of 1933, as amended, or any other
applicable law, as hereafter amended, and that if Units are issued without such
registration, a legend to this effect may be endorsed upon the securities so
issued.

    17. LOANS.

    The Company may make loans to optionees to permit them to purchase Units
pursuant to options. If loans are made, the requirements of all applicable
federal and state laws regarding

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such loans must be met.

    18. MODIFICATION OF OUTSTANDING OPTIONS.

    The Manager may authorize the amendment of any outstanding option with the
consent of the optionee when and subject to such conditions as are deemed to be
in the best interests of the Company and in accordance with the purposes of the
Plan and so long as such amendment does not violate any contractual obligations
of the Company, provided that an option granted to Alan N. Stillman may not be
amended without the unanimous consent of the members of the Advisory Committee
of the Company.

    19. APPROVAL OF MEMBERS.

    The Plan shall be subject to approval by the vote of Members holding at
least a majority of the voting securities of the Company voting in person or by
proxy at a duly held Members' meeting, or by written consent of a majority of
the Members, within twelve (12) months after the adoption of the Plan by the
Manager and shall take effect as of the date of adoption by the Manager upon
such approval. The Manager may grant options under the Plan prior to such
approval, but any such option shall become effective as of the date of grant
only upon such approval and, accordingly, no such option may be exercised prior
to such approval.

    20. TERMINATION AND AMENDMENT OF PLAN.

    Unless sooner terminated as herein provided, the Plan shall terminate ten
(10) years and six (6) months from the date upon which the Plan was duly adopted
by the Manager of the Company. The Manager may at any time terminate the Plan or
make such modification or amendment thereof as it deems advisable so long as
such modification or amendment does not conflict with contractual obligations of
the Company; provided, however, that except as provided in Section 12, the
Manager may not, without the approval of the Members of the Company obtained in
the manner stated in Section 19, increase the maximum number of Units for which
options may be granted. Termination or any modification or amendment of the Plan
shall not, without the consent of an optionee, adversely affect his or her
rights under an option theretofore granted to him or her.

    21. RESERVATION OF UNITS.

    The Company shall at all times during the term of the Plan reserve and keep
available such number of Units representing interests in the Company as will be
sufficient to satisfy the requirements of the Plan and shall pay all fees and
expenses necessarily incurred by the Company in connection therewith.

    22. LIMITATION OF RIGHTS IN THE UNITS.

    An optionee shall not be deemed for any purpose to be a unitholder of the
Company with respect to any of the options except to the extent that Units
issued in connection with the exercise of an option shall have been purchased
with respect thereto and, in addition, a certificate shall

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have been issued theretofore and delivered to the optionee.

    23. NOTICES.

    Any communication or notice required or permitted to be given under the Plan
shall be in writing and shall be deemed duly given if hand-delivered or mailed
by registered or certified mail, postage prepaid, return receipt requested, as
follows:

    (a) If to the Company:

                      New York Restaurant Group, L.L.C.
                      1114 First Avenue
                      6th Floor
                      New York, New York  10021
                      Attn: President

    (b) If to an Optionee:

                      To the most recent address furnished in writing to the
                      Company by the Optionee,

unless and until notice of another or different address shall be given as
provided herein.

Adopted by the Manager:   Date of ---------

Approved by the Members:  Date of ---------

A true record.

ATTEST: /s/ Alan Stillman
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                                                                   Exhibit 10.31

                       THE NEW YORK RESTAURANT GROUP, INC.
                             1997 STOCK OPTION PLAN

        1.      PURPOSE OF THE PLAN.

        This stock option plan (the "Plan") is intended to provide incentives:
(a) to the officers and other employees of The New York Restaurant Group, Inc.
(the "Company") and any present or future subsidiaries of the Company by
providing them with opportunities to purchase stock in the Company pursuant to
options granted hereunder which qualify as "incentive stock options" under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code") ("ISO"
or "ISOs"); and (b) to officers, employees, consultants and directors of the
Company and any present or future subsidiaries by providing them with
opportunities to purchase stock in the Company pursuant to options granted
hereunder which do not qualify as ISOs ("Non-Qualified Option" or "Non-Qualified
Options"). As used herein, the terms "parent" and "subsidiary" mean "parent
corporation" and "subsidiary corporation," respectively, as those terms are
defined in Section 424 of the Code and the Treasury Regulations promulgated
thereunder (the "Regulations").

        2.      STOCK SUBJECT TO THE PLAN.

        (a) The total number of shares of the authorized but unissued or
treasury shares of the common stock, $.01 par value, of the Company ("Common
Stock") for which options may be granted under the Plan shall not exceed
250,000 shares, subject to adjustment as provided in Section 11
hereof.

        (b) To the extent that any stock option shall lapse, terminate, expire
or otherwise be canceled without the issuance of shares of Common Stock, the
shares of Common Stock covered by such option(s) shall again be available for
the granting of stock options.

        (c) Common Stock issuable under the Plan may be subject to such
restrictions on transfer, repurchase rights or other restrictions as shall be
determined by the Committee (as defined in Section 3 below).

        3. ADMINISTRATION OF THE PLAN.

        (a) The Plan shall be administered by a committee (the "Committee")
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consisting of two or more members of the Company's Board of Directors. The Board
of Directors may from time to time appoint a member or members of the Committee
in substitution for or in addition to the member or members then in office and
may fill vacancies on the Committee however caused. The Committee shall choose
one of its members as Chairman and shall hold meetings at such times and places
as it shall deem advisable. A majority of the members of the Committee shall
constitute a quorum and any action may be taken by a majority of those present
and voting at any meeting. Any action may also be taken without the necessity of
a meeting by a written instrument signed by a majority of the Committee. The
decision of the Committee as to all questions of interpretation and application
of the Plan shall be final, binding and conclusive on all persons. The Committee
shall have the authority to adopt, amend and rescind such rules and regulations
as, in its opinion, may be advisable in the administration of the Plan. The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any option agreement granted hereunder in the
manner and to the extent it shall deem expedient to carry the Plan into effect
and shall be the sole and final judge of such expediency. No Committee member
shall be liable for any action or determination made in good faith. Prior to the
date of the registration of an equity security of the Company under Section 12
of the Exchange Act, the Plan may be administered by the Board of Directors and
in such event all references in this Plan to the Committee shall be deemed to
mean the Board of Directors.

        (b) Subject to the terms of the Plan, the Committee shall have the
authority to (i) determine the employees of the Company and its subsidiaries
(from among the class of employees eligible under Section 4 to receive ISOs) to
whom ISOs may be granted, and to determine (from the class of individuals
eligible under Section 4 to receive Non-Qualified Options) to whom Non-Qualified
Options may be granted; (ii) determine the time or times at which options may be
granted; (iii) determine the option price of shares subject to each option which
price shall not be less than the minimum price specified in Section 6; (iv)
determine whether each option granted shall be an ISO or a Non-Qualified Option;
(v) determine (subject to Section 9) the time or times when each option shall
become exercisable and the duration of the exercise period; (vi) determine
whether restrictions such as repurchase options are to be imposed on shares
subject to options and the nature of such restrictions; and (vii) determine the
size of any Options under the Plan, taking into account the position or office
of the optionee with the Company, the job performance of the optionee and such
other factors as the Committee may deem relevant in the good faith exercise of
its independent business judgment.

        4.      ELIGIBILITY.

        Options designated as ISOs may be granted only to officers and other
employees of the Company or any subsidiary. Non-Qualified Options may be granted
to any officer,
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employee, consultant or director of the Company or of any of its subsidiaries.

        In determining the eligibility of an individual to be granted an option,
as well as in determining the number of shares to be optioned to any individual,
the Committee shall take into account the position and responsibilities of the
individual being considered, the nature and value to the Company or its
subsidiaries of his or her service and accomplishments, his or her present and
potential contribution to the success of the Company or its subsidiaries, and
such other factors as the Committee may deem relevant.

        No option designated as an ISO shall be granted to any employee of the
Company or any subsidiary if such employee owns, immediately prior to the grant
of an option, stock representing more than 10% of the voting power or more than
10% of the value of all classes of stock of the Company or a parent or a
subsidiary, unless the purchase price for the stock under such option shall be
at least 110% of its fair market value at the time such option is granted and
the option, by its terms, shall not be exercisable more than five years from the
date it is granted. In determining the stock ownership under this paragraph, the
provisions of Section 424(d) of the Code shall be controlling. In determining
the fair market value under this paragraph, the provisions of Section 6 hereof
shall apply.

        5.      OPTION AGREEMENT.

        Each option shall be evidenced by an option agreement (the "Agreement")
duly executed on behalf of the Company and by the optionee to whom such option
is granted, which Agreement shall comply with and be subject to the terms and
conditions of the Plan. The Agreement may contain such other terms, provisions
and conditions which are not inconsistent with the Plan as may be determined by
the Committee, provided that options designated as ISOs shall meet all of the
conditions for ISOs as defined in Section 422 of the Code. The date of grant of
an option shall be as determined by the Committee. More than one option may be
granted to an individual.

        6.      OPTION PRICE.

        The option price or prices of shares of the Company's Common Stock for
options designated as Non-Qualified Options shall be as determined by the
Committee, but in no event shall the option price be less than the minimum legal
consideration required therefor under the laws of the State of Delaware or the
laws of any jurisdiction in which the Company or its successors in interest may
be organized. The option price or prices of shares of the Company's Common Stock
for ISOs shall be the fair market value of such
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Common Stock at the time the option is granted as determined by the Committee in
accordance with the Regulations promulgated under Section 422 of the Code. If
such shares are then listed on any national securities exchange, the fair market
value shall be the mean between the high and low sales prices, if any, on such
exchange on the business day immediately preceding the date of the grant of the
option or, if none, shall be determined by taking a weighted average of the
means between the highest and lowest sales prices on the nearest date before and
the nearest date after the date of grant in accordance with Treasury Regulations
Section 25.2512-2. If the shares are not then listed on any such exchange, the
fair market value of such shares shall be the mean between the high and low
sales prices, if any, as reported in the National Association of Securities
Dealers Automated Quotation System National Market System ("NASDAQ/NMS") for the
business day immediately preceding the date of the grant of the option, or, if
none, shall be determined by taking a weighted average of the means between the
highest and lowest sales on the nearest date before and the nearest date after
the date of grant in accordance with Treasury Regulations Section 25.2512-2. If
the shares are not then either listed on any such exchange or quoted in
NASDAQ/NMS, the fair market value shall be the mean between the average of the
"Bid" and the average of the "Ask" prices, if any, as reported in the National
Daily Quotation Service for the business day immediately preceding the date of
the grant of the option, or, if none, shall be determined by taking a weighted
average of the means between the highest and lowest sales prices on the nearest
date before and the nearest date after the date of grant in accordance with
Treasury Regulations Section 25.2512-2. If the fair market value cannot be
determined under the preceding three sentences, it shall be determined in good
faith by the Committee.

        7.      MANNER OF PAYMENT; MANNER OF EXERCISE.

        (a) Options granted under the Plan may provide for the payment of the
exercise price by delivery of (i) cash or a check payable to the order of the
Company in an amount equal to the exercise price of such options, (ii) shares of
Common Stock of the Company owned by the optionee having a fair market value
equal in amount to the exercise price of the options being exercised, or (iii)
any combination of (i) and (ii), provided, however, that payment of the exercise
price by delivery of shares of Common Stock of the Company owned by such
optionee may be made only under such circumstances and on such terms as may from
time to time be established by the Committee. The fair market value of any
shares of the Company's Common Stock which may be delivered upon exercise of an
option shall be determined by the Committee in accordance with Section 6 hereof.
With the consent of the Committee, payment may also be made by delivery of a
properly executed exercise notice to the Company, together with a copy of
irrevocable instruments to a broker to deliver promptly to the Company the
amount of sale or loan proceeds to pay the exercise price. To facilitate the
foregoing, the Company may enter into agreements for coordinated procedures with
one or more brokerage firms.
<PAGE>

        (b) To the extent that the right to purchase shares under an option has
accrued and is in effect, options may be exercised in full at one time or in
part from time to time, by giving written notice, signed by the person or
persons exercising the option, to the Company, stating the number of shares with
respect to which the option is being exercised, accompanied by payment in full
for such shares as provided in subparagraph (a) above. Upon such exercise,
delivery of a certificate for paid-up non-assessable shares shall be made at the
principal office of the Company to the person or persons exercising the option
at such time, during ordinary business hours, after ten business days from the
date of receipt of the notice by the Company, as shall be designated in such
notice, or at such time, place and manner as may be agreed upon by the Company
and the person or persons exercising the option.

        8.      EXERCISE OF OPTIONS.

        Subject to the provisions of paragraphs 9 through 11, each option
granted under the Plan shall be exercisable as follows:

        (a) VESTING. The option shall either be fully exercisable on the date of
grant or shall become exercisable thereafter in such installments as the
Committee may specify.

        (b) FULL VESTING OF INSTALLMENTS. Once an installment becomes
exercisable it shall remain exercisable until expiration or termination of the
option, unless otherwise specified by the Committee.

        (c) PARTIAL EXERCISE. Each option or installment may be exercised at any
time or from time to time, in whole or in part, for up to the total number of
shares with respect to which it is then exercisable.

        (d) ACCELERATION OF VESTING. The Committee shall have the right to
accelerate the date of exercise of any installment or any option; provided that
the Committee shall not, without the consent of an optionee, accelerate the
exercise date of any installment of any option granted to any employee as an ISO
if such acceleration would violate the annual vesting limitation contained in
Section 422(d) of the Code.

        9.      TERM OF OPTIONS; EXERCISABILITY.

        (a) TERM. Each option shall expire not more than ten (10) years from the
date of the granting thereof, but shall be subject to earlier termination as may
be provided in the Agreement.
<PAGE>

        (b) EXERCISABILITY. Except as otherwise provided in the Agreement, an
option granted to an employee optionee who ceases to be an employee of the
Company or one of its subsidiaries shall be exercisable only to the extent that
the right to purchase shares under such option has accrued and is in effect on
the date such optionee ceases to be an employee of the Company or one of its
subsidiaries.

        10.     OPTIONS NOT TRANSFERABLE.

        The right of any optionee to exercise any option granted to him or her
shall not be assignable or transferable by such optionee otherwise than by will
or the laws of descent and distribution, or (solely with respect to
Non-Qualified Options) pursuant to a qualified domestic relations order, as
defined by the Code or Title I of the Employee Retirement Income Security Act,
or the rules thereunder, and any such option shall be exercisable during the
lifetime of such optionee only by him. Any option granted under the Plan shall
be null and void and without effect upon the bankruptcy of the optionee to whom
the option is granted, or upon any attempted assignment or transfer, except as
herein provided, including without limitation any purported assignment, whether
voluntary or by operation of law, pledge, hypothecation or other disposition,
attachment, divorce, except as provided above with respect to Non-Qualified
Options, trustee process or similar process, whether legal or equitable, upon
such option.

        11. ADJUSTMENTS. Upon the occurrence of any of the following events, an
optionee's rights with respect to options granted to him or her hereunder shall
be adjusted as hereinafter provided, unless otherwise specifically provided in
the written agreement between the optionee and the Company relating to such
option:

        (a) STOCK DIVIDENDS AND STOCK SPLITS. If the shares of Common Stock
shall be subdivided or combined into a greater or smaller number of shares or if
the Company shall issue any shares of Common Stock as a stock dividend on its
outstanding Common Stock, the number of shares of Common Stock deliverable upon
the exercise of options shall be appropriately increased or decreased
proportionately, and appropriate adjustments shall be made in the purchase price
per share to reflect such subdivision, combination or stock dividend.

        (b) CONSOLIDATIONS OR MERGERS. If the Company is to be consolidated with
or acquired by another entity in a merger, sale of all or substantially all of
the Company's assets or otherwise (an "Acquisition"), the Committee or the board
of directors of any entity assuming the obligations of the Company hereunder
(the "Successor Board"), shall, as to outstanding options, either (i) make
appropriate provision for the continuation of such options by substituting on an
equitable basis for the shares then subject to such options the consideration
payable with respect to the outstanding shares of Common
<PAGE>

Stock in connection with the Acquisition; or (ii) upon written notice to the
optionees, provide that all options must be exercised, to the extent then
exercisable, within a specified number of days of the date of such notice, at
the end of which period the options shall terminate; or (iii) terminate all
options in exchange for a cash payment equal to the excess of the fair market
value of the shares subject to such options (to the extent then exercisable)
over the exercise price thereof.

        (c) RECAPITALIZATION OR REORGANIZATION. In the event of a
recapitalization or reorganization of the Company (other than a transaction
described in subparagraph (b) above) pursuant to which securities of the Company
or of another corporation are issued with respect to the outstanding shares of
Common Stock, an optionee upon exercising an option shall be entitled to receive
for the purchase price paid upon such exercise the securities he would have
received if he had exercised his option prior to such recapitalization or
reorganization.

        (d) MODIFICATION OF ISOS. Notwithstanding the foregoing, any adjustments
made pursuant to subparagraphs (a), (b) or (c) with respect to ISOs shall be
made only after the Committee, after consulting with counsel for the Company,
determines whether such adjustments would constitute a "modification" of such
ISOs (as that term is defined in Section 424 of the Code) or would cause any
adverse tax consequences for the holders of such ISOs. If the Committee
determines that such adjustments made with respect to ISOs would constitute a
modification of such ISOs, it may refrain from making such adjustments.

        (e) DISSOLUTION OR LIQUIDATION. In the event of the proposed dissolution
or liquidation of the Company, each option will terminate immediately prior to
the consummation of such proposed action or at such other time and subject to
such other conditions as shall be determined by the Committee.

        (f) ISSUANCES OF SECURITIES. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
subject to options. No adjustments shall be made for dividends paid in cash or
in property other than securities of the Company.

        (g) FRACTIONAL SHARES. No fractional shares shall be issued under the
Plan and the optionee shall receive from the Company cash in lieu of such
fractional shares.

        (h) ADJUSTMENTS. Upon the happening of any of the events described in
subparagraphs (a), (b) or (c) above, the class and aggregate number of shares
set forth in
<PAGE>

Section 2 hereof that are subject to options which previously have been or
subsequently may be granted under the Plan shall also be appropriately adjusted
to reflect the events described in such subparagraphs. The Committee or the
Successor Board shall determine the specific adjustments to be made under this
paragraph 11 and, subject to Section 3, its determination shall be conclusive.

        If any person or entity owning restricted Common Stock obtained by
exercise of an option made hereunder receives shares or securities or cash in
connection with a corporate transaction described in subparagraphs (a), (b) or
(c) above as a result of owning such restricted Common Stock, such shares or
securities or cash shall be subject to all of the conditions and restrictions
applicable to the restricted Common Stock with respect to which such shares or
securities or cash were issued, unless otherwise determined by the Committee or
the Successor Board.

        12.     NO SPECIAL EMPLOYMENT RIGHTS.

        Nothing contained in the Plan or in any option granted under the Plan
shall confer upon any option holder any right with respect to the continuation
of his employment by the Company (or any subsidiary) or interfere in any way
with the right of the Company (or any subsidiary), 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 option holder from
the rate in existence at the time of the grant of an option. 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.

        13.     WITHHOLDING.

        The Company's obligation to deliver shares upon the exercise of any
option granted under the Plan shall be subject to the option holder's
satisfaction of all applicable Federal, state and local income, excise and
employment tax withholding requirements. The Company and employee may agree to
withhold shares of Common Stock purchased upon exercise of an option to satisfy
the above-mentioned withholding requirements. With the approval of the
Committee, which it shall have sole discretion to grant, and on such terms and
conditions as the Committee may impose, the option holder may satisfy the
foregoing condition by electing to have the Company withhold from delivery
shares having a value equal to the amount of tax to be withheld. The Committee
shall also have the right to require that shares be withheld from delivery to
satisfy such condition.
<PAGE>

        14.     RESTRICTIONS ON ISSUE OF SHARES.

        (a) Notwithstanding the provisions of Section 7, the Company may delay
the issuance of shares covered by the exercise of an option and the delivery of
a certificate for such shares until one of the following conditions shall be
satisfied:

                      (i) The shares with respect to which such option has been
exercised are at the time of the issue of such shares effectively registered or
qualified under applicable Federal and state securities acts now in force or as
hereafter amended; or

                      (ii) Counsel for the Company shall have given an opinion,
which opinion shall not be unreasonably conditioned or withheld, that such
shares are exempt from registration and qualification under applicable Federal
and state securities acts now in force or as hereafter amended.

        (b) It is intended that all exercises of options shall be effective, and
the Company shall use its best efforts to bring about compliance with the above
conditions within a reasonable time, except that the Company shall be under no
obligation to qualify shares or to cause a registration statement or a
post-effective amendment to any registration statement to be prepared for the
purpose of covering the issue of shares in respect of which any option may be
exercised, except as otherwise agreed to by the Company in writing.

       15.      PURCHASE FOR INVESTMENT; RIGHTS OF HOLDER ON SUBSEQUENT
                REGISTRATION.

        Unless the shares to be issued upon exercise of an option granted under
the Plan have been effectively registered under the Securities Act of 1933, as
now in force or hereafter amended, the Company shall be under no obligation to
issue any shares covered by any option unless the person who exercises such
option, in whole or in part, shall give a written representation and undertaking
to the Company which is satisfactory in form and scope to counsel for the
Company and upon which, in the opinion of such counsel, the Company may
reasonably rely, that he or she is acquiring the shares issued pursuant to such
exercise of the option for his or her own account as an investment and not with
a view to, or for sale in connection with, the distribution of any such shares,
and that he or she will make no transfer of the same except in compliance with
any rules and regulations in force at the time of such transfer under the
Securities Act of 1933, or any other applicable law, and that if shares are
issued without such registration, a legend to this effect may be endorsed upon
the securities so issued. In the event that the Company shall, nevertheless,
deem it necessary or desirable to register under the Securities Act of
<PAGE>

1933 or other applicable statutes any shares with respect to which an option
shall have been exercised, or to qualify any such shares for exemption from the
Securities Act of 1933 or other applicable statutes, then the Company may take
such action and may require from each optionee such information in writing for
use in any registration statement, supplementary registration statement,
prospectus, preliminary prospectus or offering circular as is reasonably
necessary for such purpose and may require reasonable indemnity to the Company
and its officers and directors and controlling persons from such holder against
all losses, claims, damages and liabilities arising from such use of the
information so furnished and caused by any untrue statement of any material fact
therein or caused by the omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances under which they were made.

        16.     LOANS.

        The Company may make loans to optionees to permit them to exercise
options. If loans are made, the requirements of all applicable Federal and state
laws and regulations regarding such loans must be met.

        17.     MODIFICATION OF OUTSTANDING OPTIONS.

        The Committee may authorize the amendment of any outstanding option with
the consent of the optionee when and subject to such conditions as are deemed to
be in the best interests of the Company and in accordance with the purposes of
this Plan.

        18.     APPROVAL OF SHAREHOLDERS.

        The Plan shall be subject to approval by the vote of shareholders
holding at least a majority of the voting stock of the Company voting in person
or by proxy at a duly held shareholders' meeting, or by written consent of
shareholders holding at least a majority of the voting stock of the Company,
within twelve (12) months after the adoption of the Plan by the Board of
Directors and shall take effect as of the date of adoption by the Board of
Directors upon such approval. The Committee may grant options under the Plan
prior to such approval, but any such option shall become effective as of the
date of grant only upon such approval and, accordingly, no such option may be
exercisable prior to such approval.

        19.     TERMINATION AND AMENDMENT.

        Unless sooner terminated as herein provided, the Plan shall terminate
ten (10) years
<PAGE>

from the date upon which the Plan was duly adopted by the Board of Directors of
the Company. The Board of Directors may at any time terminate the Plan or make
such modification or amendment thereof as it deems advisable; provided, however,
that except as provided in this Section 19, the Board of Directors may not,
without the approval of the shareholders of the Company obtained in the manner
stated in Section 18, increase the maximum number of shares for which options
may be granted or change the designation of the class of persons eligible to
receive options under the Plan, or make any other change in the Plan which
requires shareholder approval under applicable law or regulations, including any
approval requirement which is a prerequisite for exemptive relief under Section
16 of the Exchange Act. The Committee may grant options to persons subject to
Section 16(b) of the Exchange Act after an amendment to the Plan by the Board of
Directors requiring shareholder approval under Section 19, but any such option
shall become effective as of the date of grant only upon such approval and,
accordingly, no such option may be exercisable prior to such approval. The
Committee may terminate, amend or modify any outstanding option without the
consent of the option holder, provided, however, that, except as provided in
Section 11, without the consent of the optionee, the Committee shall not change
the number of shares subject to an option, nor the exercise price thereof, nor
extend the term of such option.

        20.     COMPLIANCE WITH RULE 16B-3.

        It is intended that the provisions of the Plan and any option granted
hereunder to a person subject to the reporting requirements of Section 16(a) of
the Exchange Act shall comply in all respects with the terms and conditions of
Rule 16b-3 under the Exchange Act, or any successor provisions, to the extent
the Company has any equity security registered pursuant to Section 12 of the
Exchange Act. Any agreement granting options shall contain such provisions as
are necessary or appropriate to assure such compliance. To the extent that any
provision hereof is found not to be in compliance with such Rule, such provision
shall be deemed to be modified so as to be in compliance with such Rule, or if
such modification is not possible, shall be deemed to be null and void, as it
relates to a recipient subject to Section 16(a) of the Exchange Act.

        21.     RESERVATION OF STOCK.

        The Company shall at all times during the term of the Plan reserve and
keep available such number of shares of stock as will be sufficient to satisfy
the requirements of the Plan and shall pay all fees and expenses necessarily
incurred by the Company in connection therewith.
<PAGE>

        22.     LIMITATION OF RIGHTS IN THE OPTION SHARES.

        An optionee shall not be deemed for any purpose to be a shareholder of
the Company with respect to any of the options except to the extent that the
option shall have been exercised with respect thereto and, in addition, a
certificate shall have been issued theretofore and delivered to the optionee.

        23.     NOTICES.

        Any communication or notice required or permitted to be given under the
Plan shall be in writing, and mailed by registered or certified mail or
delivered by hand, if to the Company, to its principal place of business,
attention: President, and, if to an optionee, to the address as appearing on the
records of the Company.

Approved by the Directors:____________________

Approved by the Stockholders:____________________

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