Document:

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                                                                    Exhibit 4.13

                                     [LOGO]

                                  RULES OF THE

                                   PEARSON PLC

                         UNITED STATES SENIOR EXECUTIVE

                               SHARE OPTION SCHEME

                   Incorporating amendments up to 12 May 1989

<PAGE>

PEARSON plc
UNITED STATES SENIOR EXECUTIVE SHARE OPTION SCHEME

Definitions

In this Scheme the following words and expressions shall have the
following meanings, namely:--

"the Board"              The Board of Directors of the Company or a duly
                         authorised committee thereof.

"the Code"               The United States Internal Revenue Code of 1986, as
                         amended.

"the Company"            Pearson plc.

"Date of Grant"          In relation to an Option, the date on which such Option
                         is granted pursuant to paragraph 4(b) of the Scheme.

"the Group"              The Company and the Subsidiaries.

"Incentive Stock Option" Any Option qualifying as an incentive stock option
                         within the meaning of section 422A of the Code.

"Optionee"               Any US Executive who is granted an Option.

"Option"                 A right to subscribe for Shares granted under the
                         Scheme.

"Option Agreement"       The agreement entered into by the Company and any
                         Optionee relating to the grant of an Option.

"Option Period"          Any time after the third anniversary of the granting of
                         the Option but not later than the seventh anniversary
                         of that date.

"the Scheme"             The Scheme contained herein as amended from time to
                         time.

"Shares"                 Ordinary shares of 25p each in the Company.

"Subsidiary"             Any subsidiary of the Company within the meaning of
                         section 736 of the Companies Act 1985 and which has any
                         employees, provided that in the case of an Incentive
                         Stock Option, "Subsidiary" shall not include any
                         company which does not meet the definition of
                         subsidiary in section 425(f) of the Code (50 per cent
                         or more of the total combined voting power) on the
                         Date of Grant.

"US Executive"           Any senior executive who is a full-time employee
                         (including an executive director) of a member or
                         members of the Group who is a resident of the United
                         States at the Date of Grant.

References to the Companies Act 1985 and the Income and Corporation Taxes Act
1988 are references to the Companies Act 1985 of Great Britain and the Income
and Corporation Taxes Act 1988 of the United Kingdom, respectively.

1.   THE SCHEME

The Board may from time to time at its discretion grant Options to US Executives
on the terms set out below.

2.   ELIGIBILITY

All US Executives will be eligible for the Scheme. Options will be granted to US
Executives from time to time as set out in paragraph 4 below.

<PAGE>

3.   LIMITS

Subject to the conditions mentioned in paragraph 5(g) below:--

(a)  The number of Shares which may be granted or placed under option under the
     Scheme shall be limited in aggregate to 2,000,000 Shares.

(b)  The aggregate nominal value of Shares which may be issued under the Scheme
     shall not, when aggregated with the nominal value of any Shares issued or
     placed under option within the previous ten years under any other share
     incentive or option scheme approved by the Company, exceed ten per cent of
     the issued ordinary share capital of the Company for the time being.

(c)  No Option shall be granted to any person hereunder if such a grant would
     have the result that the aggregate subscription price paid or payable by
     that person to acquire Shares under this Scheme would exceed four times
     his/her annual salary for the time being provided that in the case of
     Incentive Stock Options granted to a US Executive after 31 December 1986,
     the aggregate fair market value (determined at the time of such grant) of
     the Shares with respect to which Incentive Stock Options are exercisable
     for the first time by a US Executive during any calendar year under this
     Scheme and any other Incentive Stock Option Scheme of the Group shall not
     exceed USS100,000.

(d)  No Incentive Stock Option shall be granted to a US Executive who at the
     Date of Grant owns more than 10 per cent of the issued share capital
     carrying a right to vote of the Company or any Subsidiary unless the
     subscription price is payable by such US Executive shall be 110 per cent of
     the subscription price and the Option shall nor be exercisable after 5
     years from the date such Option is granted.

(e)  No Incentive Stock Option granted before 1 January 1987 shall be
     exercisable while there is outstanding any Incentive Stock Option
     (including for the purposes of this paragraph any Incentive Stock Option
     relating to the Shares of any Subsidiary or any predecessor thereto) which
     was granted to the Optionee before the first-mentioned Option. For the
     purposes of this paragraph, an Incentive Stock Option is outstanding until
     such Option is exercised in full or until the expiration of the period in
     which, under its initial terms, it could have been exercised.

4.   GRANT OF OPTIONS

(a)  Options will only be granted hereunder during the six weeks following the
     public announcement of the interim or preliminary results of the Company.

(b)  Subject to the limitations and conditions of the Scheme and unless
     prohibited by law, the Board may during any period specified in paragraph
     4(a) grant Options to such US Executives as it may think fit by resolution
     offering Shares for issue to a US Executive under the terms and conditions
     of the Scheme and specifying the number of Shares that may be purchased.
     Such grant shall be evidenced by a written notice signed on behalf of the
     Company by any member of the Board or the Secretary.

(c)  The Company and the Optionee shall, within fourteen days of the grant of
     the Option, confirm the Option by entering into an Option Agreement with
     the Company which will specify the number of Shares which may be purchased
     by its exercise and will incorporate the terms of the Scheme as set out in
     paragraph 5 below.

5.   TERMS OF OPTIONS

(a)  OPTION, CLEARLY DISTINGUISHED

          Options which qualify as Incentive Stock Options under the Scheme will
     be clearly labelled as such and Options which do not so qualify will be
     clearly labelled as not so qualifying.

(b)  SUBSCRIPTION PRICE

          Subject to paragraph 3(d), the price per Share at which an Optionee
     may subscribe for Shares under an Option shall be the higher of:--

           (i) the middle market quotation for a Share on The Stock Exchange of
               the United Kingdom and the Republic of Ireland, as published in
               the Daily Official List on the Date of Grant; and

          (ii) the nominal value of a Share.

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(c)  TIME OF EXERCISE OF OPTION

          Subject as provided in sub-paragraph (d) below, any Option granted
     hereunder shall be exercisable in whole or in part during the option Period
     and at the end of that period shall lapse automatically, provided always
     that:--

           (i) if an Optionee ceases to be in employment in the Group, any
               Option granted to him or her will not be exercisable, subject to
               sub-paragraphs (ii) and (iii) below;

          (ii) the Board may, at its discretion, allow an Optionee who has
               ceased to be employed by the Group for any reason other than
               injury, disability or death to exercise his or her Options during
               a period not exceeding six months from the date of cessation or,
               in the case of an Incentive Stock Option, three months from the
               date of cessation (providing that such exercise takes place
               before the seventh anniversary of the Date of Grant);

         (iii) if an Optionee ceases employment due to injury of disability, or
               dies whilst in service, he or his legal personal representative
               will be entitled to exercise the Option during the twelve months
               commencing with the date of cessation due to injury, disability
               or death (provided that such exercise takes place not later than
               the seventh anniversary of the Date of Grant and further provided
               that, in the case of an Incentive Stock Option, an injured or
               disabled Optionee who does not have a "permanent and total
               disability" as defined in section 22(e)(3) of the Code shall not
               have the right to exercise his or her Option after three months
               from the date of cessation of employment); and

          (iv) in the event of an Optionee being adjudged bankrupt, any Option
               which he or she holds shall become void automatically.

(d)  RESTRICTIONS ON EXERCISE OF OPTION

          No Option may be exercised on any occasion in respect of less than 10
     per cent of the total number of Shares comprised in the Option.

(e)  EXERCISE OF OPTIONS

          Any Option may be exercised only by the Optionee (or the legal
     personal representative of a deceased Optionee) giving notice in writing to
     the Company specifying the number of Shares in respect of which the Option
     is being exercised on that occasion and accompanied by payment in full of
     the aggregate subscription price of those Shares. Notice must be delivered
     or sent by pre-paid post to the Secretary of the Company at its registered
     office.

(f)  ALLOTMENT OF SHARES ON EXERCISE OF 0PTION

          Subject to such consents as may be necessary and to compliance by the
     Optionee with the terms of the Option Agreement, the Company will, as soon
     as practicable and in any event not later than 28 days after receipt of any
     notice of exercise in accordance with sub-paragraph (c) above, make an
     allotment to the Optionee of the number of Shares specified in the notice
     at the subscription price (as adjusted in accordance with the provisions of
     the Scheme) and will deliver to the Optionee a definitive share certificate
     in respect of those Shares.

(g)  ADJUSTMENT OF OPTION

          In the event of any capitalisation issue or rights issue or any
     sub-division, consolidation or reorganisation of the capital of the
     Company, or on the making by the Company of a distribution which is an
     exempt distribution by virtue of sections 213 to 218 of the Income and
     Corporation Taxes Act 1988, the number contained in paragraph 3(a) above,
     the subscription price payable on the exercise of an Option, the definition
     of "Shares", and the number of Shares comprised in an Option may be
     adjusted in such manner as the Board may determine to be appropriate and
     such decision of the Board shall be final and binding on the Optionee and
     the Company provided always that:--

           (i) no adjustment to the subscription price shall be made pursuant to
               the provisions of this sub-paragraph which would result in the
               Shares subject to any Option being issued at a price lower than
               their nominal value and if in the case of any Shares such an
               adjustment would, but for this proviso, have so resulted the
               subscription price of such Shares shall be the nominal amount
               thereof;

<PAGE>

          (ii) no adjustment shall be made pursuant to this sub-paragraph
               unless and until the auditors for the time being of the Company
               (acting as experts and not as arbitrators) shall have reported to
               the Board that such adjustment is in their opinion appropriate,
               fair and reasonable; and

         (iii) with respect to Incentive Stock Options, the adjustment does not
               give the Optionee additional benefits (within the meaning of
               section 425(h)(3) of the Code) under the terms of the Option.

(h)  RIGHT ATTACHING TO SHARES ALLOWED PURSUANT TO OPTION

          All Shares allotted pursuant to the exercise of any option shall as to
     voting, dividend, transfer and other rights, including those arising on a
     liquidation of the Company, rank pari passu in all respects and as one
     class with the Shares in issue at the date of such allotment except that
     they shall not rank for, or be entitled to, any dividend which, under the
     terms of a resolution passed or an announcement made by the Company prior
     to the date of exercise, is to be or is proposed to be paid to the holders
     of Shares on the register of members on a date prior to the date of
     allotment.

(i)  AVAILABILITY OF SHARES

          The Company will at all times keep available sufficient authorised but
     unissued share capital to permit the exercise of all unexercised Options.

(j)  LISTING

          The Company will at its expense make application for and use its best
     endeavours to obtain listing for and permission to deal on The Stock
     Exchange of the United Kingdom and the Republic of Ireland in Shares
     allotted pursuant to the exercise of any Option.

(k)  INALIENABILITY OF OPTIONS

          Every Option granted hereunder shall be personal to the Optionee and
     except as provided in sub-paragraph (c)(iii) above neither the Option nor
     the benefit thereof may be transferred, assigned, charged or otherwise
     alienated.

(l)  LOSS OF OFFICE

          If any Optionee shall cease to be in the service of the Group for any
     reason he or she shall not be entitled by way of compensation for loss of
     office or otherwise howsoever to any sum or other benefit to compensate him
     or her for the loss of any rights under the Scheme.

(m)  LIQUIDATION

          (i)  If notice is duly given of a resolution for a voluntary
               winding-up of the Company then, unless the winding-up is for the
               purposes of a reorganisation or reconstruction which makes
               certified provision for the compensation of Optionees or the
               grant of new Options to them, an Optionee (or where permitted his
               personal representatives) may forthwith and until the
               commencement of the winding-up (or if earlier the day before the
               seventh anniversary of the Date of Grant of the relevant Option)
               exercise an Option, but such exercise shall be conditional upon
               the said resolution being duly passed.

          (ii) For the purposes of sub-paragraph 5(m)(i) "certified provision"
               means provision for Optionees which the auditors for the time
               being of the Company (acting as experts and not as arbitrators)
               shall have reported to the Board to be in their opinion fair and
               reasonable.

(n)  CHANGE IN CONTROL OF THE COMPANY, ETC.

          (i)  if any person obtains control of the Company as the result of an
               offer for the Shares, or for shares including the Shares, an
               Option may be exercised within six months of the time when the
               offeror has obtained control of the Company and any condition
               subject to which the offer was made has been satisfied--provided
               that notwithstanding the foregoing, in the case of an Incentive
               Stock Option, such Option shall be subject to the rules specified
               in paragraph 3(c) (if applicable).

          (ii) In the event of the control of the Company changing as a result
               of an offer for the Shares, the Board shall notify the Optionees
               if the offeror becomes entitled or bound under sections 428--430F
               of the Companies Act 1985 to acquire any Shares within 14 days of
               the Board becoming aware that the offeror is so entitled or bound
               and an Optionee may exercise an Option at any time while the
               offeror remains so bound or entitled.

<PAGE>

         (iii) If under section 425 of the Companies Act 1985 the Court
               sanctions a compromise or arrangement proposed for the purposes
               of or in connection with a scheme for the reconstruction of the
               Company or its amalgamation with any other company or companies,
               Options may be exercised within six months of the Court
               sanctioning the compromise or arrangement unless the compromise
               or arrangement makes certified provision for the adjustment of
               Options or their replacement by new options to acquire Shares or
               shares in another company--provided that, notwithstanding the
               foregoing, in the case of an Incentive Stock Option, such Option
               shall be subject to the rules specified in paragraphs 3(e) (if
               applicable) and 7.

(o)  OPTION EXCHANGE PROVISIONS

          (i)  Notwithstanding paragraph 5(n), if any company
               (the "Acquiring Company"):--

               (aa) obtains control of the Company as a result of
                    making:--

                    (i)  a general offer to acquire the whole of the issued
                         share capital of the Company which is made on a
                         condition such that if it is satisfied the person
                         making the offer will have control of the Company, or

                    (ii) a general offer to acquire all the Shares, or

               (bb) obtains control of the Company in pursuance of a compromise
                    or arrangement sanctioned by the Court under section 425 of
                    the Companies Act 1985, or

               (cc) becomes bound or entitled to acquire Shares in the Company
                    under sections 428-430F of the Companies Act 1985,

          any Optionee may at any time within the appropriate period defined in
          paragraph 15(2) of Schedule 9 to the Income and Corporation Taxes Act
          1988 ("Schedule 9"), by agreement with the Acquiring Company, release
          his Option in consideration of the grant to him of a right (the "New
          Right") which is equivalent to the Option but which relates to shares
          in the Acquiring Company or some other company falling within
          subparagraph (b) or (c) of paragraph 10 of Schedule 9.

          (ii) The New Right shall not be regarded for this purpose as
               equivalent to the Option unless:--

               (aa) the Shares to which it relates (the "Replacement Shares")
                    satisfy the conditions specified, in relation to scheme
                    Shares, in paragraphs 10 to 14 of Schedule 9; and

               (bb) the New Right will be exercisable in the same manner as the
                    Option and (subject to sub-paragraph (iv) below) is subject
                    to the provisions of the Scheme as it had effect immediately
                    before the release; and

               (cc) the total market value, immediately before the release of
                    the Option, of the Shares which were subject to the Option
                    is equal to the total market value, immediately after the
                    grant of the New Right, of the Replacement Shares; and

               (dd) the total amount payable by the Optionee for the acquisition
                    of the Replacement Shares in pursuance of the New Right is
                    equal to the total subscription price payable under the
                    Option.

         (iii) The Date of Grant of the New Right shall be deemed to be the
               same as the Date of Grant of the Option.

          (iv) In the application of this Scheme to the New Right:--

               (aa) references to Shares (other than in this rule) shall be read
                    as if they were references to the Replacement Shares; and

               (bb) references to the Company in paragraphs 5(e), 5(f), 5(g),
                    5(h), 5(i), 5(j), 5(m), 5(n), 5(o), 5(p) and 5(q) shall be
                    read as if they were references to the company to whose
                    shares the New Right relates; and

               (cc) references to the Board in paragraph 5 shall be read as if
                    they were references to the company to whose shares the New
                    Right relates; and

<PAGE>

               (dd) this paragraph 5(o) shall apply in respect of any change of
                    circumstances within the terms of sub-paragraph (i) above
                    affecting the company to whose shares the New Right relates
                    as if references to the Option were references to the New
                    Right as it related to the shares in that company and as if
                    references to the Shares were references to the Replacement
                    Shares in respect of which that New Right was granted.

           (v) An Optionee may release his Option in consideration of the grant
               to him of the New Right in accordance with this paragraph 5(o),
               notwithstanding that his Option was granted before this rule took
               effect, provided that he held the Option immediately before an
               event falling within sub-paragraph (i) above which occurred on or
               after 17 March 1987 and notwithstanding that his Option may, at
               the time of the release, have ceased to be exercisable under the
               rules of the Scheme as a result of the occurrence of the event
               which gives rise to his right to release his Option.

(p)  UNITED STATES SECURITIES LAWS

          No Shares shall be issued under the Scheme by the Company unless the
     Optionee first enters into an agreement with the Company providing for
     compliance by such Optionee with all applicable United Stares securities
     laws relating to the Scheme.  No Shares shall be allotted hereunder unless
     the Company, after taking such legal advice as is considers necessary,
     shall be satisfied that such allotment will be in compliance with
     applicable United States federal, state and local securities laws.

(q)  UNITED STATES WITHHOLDING TAX

          It shall be a condition to the obligation of the Company to allot
     Shares upon exercise of an Option, that the Optionee (or any legal
     personal representative of a deceased Optionee) pay to the Company, upon
     its demand, such amount as may be requested by the Company for the purpose
     of satisfying any liability to withhold United States federal, state or
     local income or other taxes. If the amount requested is not paid, the
     Company may refuse to allot such Shares.

6.   POWERS OF THE BOARD

The decision of the Board shall be final and binding in all matters relating to
the Scheme and it may at any time discontinue the grant of further Options or
amend any of the provisions of the Scheme in any way it thinks fit save that:--

           (i) no amendment may be made to paragraphs 1 to 4, 5(a), (b), (c),
               (d), (g), (h), (k), (m), (n), (o) and (p) and 6(i) hereof without
               the prior approval of the Company in general meeting;

          (ii) the Board may not cancel an Option except where the Optionee
               shall have ceased to be in service of the Group or where the
               Optionee shall have agreed in writing to such cancellation; and

         (iii) except as herein provided, the Board may not modify the terms of
               an Option already granted except with the consent in writing of
               the Optionee.

7.   DURATION OF THE SCHEME

Notwithstanding any other provision in the Scheme, no Option may be granted
under the Scheme later than ten years after the adoption of the Scheme by the
members in general meeting.<PAGE>

                                                                     EXHIBIT 4.1

ORDINARY SHARES                                                 ORDINARY SHARES

VRYA                           [LOGO VIRYANET]                  SEE REVERSE FOR
                                                             CERTAIN DEFINITIONS

                                                              CUSIP M97540 10 4

                                 ViryaNet Ltd.

                         INCORPORATED UNDER THE LAWS
                            OF THE STATE OF ISRAEL

This Certifies that

is the owner of

                FULLY PAID AND NON-ASSESSABLE ORDINARY SHARES,
                          PAR VALUE NIS 0.10 EACH, OF
                                 VIRYANET LTD.

transferable on the books of the Corporation by the holder hereof in person or
by its duly authorized attorney upon surrender of this Certificate properly
endorsed or assigned. This Certificate and the shares represented hereby are
issued and shall be held subject to the laws of the State of Israel and the
provisions of the Memorandum of Association and Articles of Association of the
Corporation, as amended from time to time, to which the holder by acceptance
hereof assents. This Certificate is not valid unless countersigned and
registered by the Transfer Agent and Registrar.

     WITNESS the facsimile stamp of the Corporation and the facsimile signatures
of its duly authorized officers.

Dated:

/s/ Yorem Bribing        [Seal ViryaNet Ltd.,     /s/ Samuel I. HaCohen
-----------------------        Israel]            ---------------------------
CHIEF FINANCIAL OFFICER                           DIRECTOR AND CHIEF EXECUTIVE
                                                    OFFICER

                                                  COUNTERSIGNED AND REGISTERED:
                                                  AMERICAN STOCK TRANSFER &
                                                    TRUST COMPANY
                                                  TRANSFER AGENT AND REGISTRAR,

                                                  BY

                                                  AUTHORIZED OFFICER

<PAGE>

                                 VIRYANET LTD.

The Corporation is authorized to issue more than one class of stock. Upon
written request, made by the holder of this Certificate, the Corporation will
furnish to such holder without charge a copy of the full text of the
preferences, voting powers, qualifications and special and relative rights of
the shares of each class authorized to be issued, as set forth in the Memorandum
of Association and Articles of Association, as amended from time to time.

The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<CAPTION>
<S>                                 <C>                                 <C>

TEN COM - as tenants in common       UNIF GIFT MIN ACT (D)                UNIF TRF MIN ACT (D)
TEN ENT - as tenants in entireties                        ------------                         ---------------
                                                             (Cust)                                 (Cust)
JT TEN  - as joint tenants with      Custodian                            Custodian (until age        )
          right of survivorship                --------------------                           ---------
                                                     (Minor)
          and not as tenants in      under Uniform Gifts to Minors        (Minor) under Uniform Transfers
          common.                                          -------
                                     Act                                   to Minors Act
                                         ---------------------                           ----------------
                                               (State)                                       (State)
</TABLE>

Additional abbreviations may also be used though not in the above list.
<PAGE>

     For value received,                         hereby sells, assigns
                        -------------------------
and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
INCLUDING ZIP CODE, OF ASSIGNEE)

-------------------------------------------
-------------------------------------------

                                                                 Ordinary Shares

represented by the within Certificate, and do hereby irrevocably constitute and
appoint

                                                                        Attorney

to transfer the said Ordinary Shares on the books of the within named
Corporation with full power of substitution in the premises.

Dated
      ------------------------

                                          X
                                           -------------------------------

                                          X
                                           -------------------------------

                                           -------------------------------
                                   NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
                                           MUST CORRESPOND WITH THE NAME(S) AS
                                           WRITTEN UPON THE FACE OF THE
                                           CERTIFICATE IN EVERY PARTICULAR,
                                           WITHOUT ALTERATION OR ENLARGEMENT OR
                                           ANY CHANGE WHATEVER.

Signature(s) Guaranteed:
                        -------------------------------------------------
                        THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE
                        GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND
                        LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN
                        AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
                        PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]