Document:

EXHIBIT 4.27

                         PATRIOT SCIENTIFIC CORPORATION
                             2003 STOCK OPTION PLAN

         1. PURPOSE. This Stock Option Plan (the "Plan") is intended to serve as
an  incentive  to,  and  to  encourage  stock  ownership  by,  certain  eligible
participants  rendering services to Patriot Scientific  Corporation,  a Delaware
corporation (the  "Corporation"),  and certain affiliates as set forth below, so
that they may acquire or increase their proprietary interest in the Corporation.

         2. ADMINISTRATION.

                  2.1 Committee.  The Plan shall be administered by the Board of
Directors of the Corporation (the "Board of Directors") or a committee of two or
more  members  appointed  by the Board of Directors  (the  "Committee")  who are
Non-Employee  Directors as defined in Rule 16b-3 promulgated under Section 16 of
the Securities Exchange Act of 1934 and outside directors as defined in Treasury
Regulation ss. 1.162-27(e)(3).  The Committee shall select one of its members as
Chairman  and  shall  appoint  a  Secretary,  who need  not be a  member  of the
Committee.  The Committee shall hold meetings at such times and places as it may
determine and minutes of such meetings shall be recorded.  Acts by a majority of
the  Committee  in a meeting at which a quorum is present  and acts  approved in
writing by a majority of the members of the Committee shall be valid acts of the
Committee.

                  2.2 Term. If the Board of Directors  selects a Committee,  the
members of the  Committee  shall serve on the  Committee  for the period of time
determined  by the Board of  Directors  and shall be  subject  to removal by the
Board of  Directors  at any  time.  The Board of  Directors  may  terminate  the
function  of the  Committee  at any time and resume  all  powers  and  authority
previously delegated to the Committee.

                  2.3 Authority.  The Committee  shall have sole  discretion and
authority to grant  options  under the Plan to eligible  participants  rendering
services to the Corporation or any "parent" or "subsidiary" of the  Corporation,
as defined in Section 424 of the Internal  Revenue Code of 1986, as amended (the
"Code")  ("Parent or Subsidiary"),  at such times,  under such terms and in such
amounts  as it may  decide.  For  purposes  of this  Plan and any  Stock  Option
Agreement (as defined below), the term "Corporation" shall include any Parent or
Subsidiary,  if applicable.  Subject to the express  provisions of the Plan, the
Committee shall have complete authority and discretion to interpret the Plan, to
prescribe,  amend and rescind the rules and regulations relating to the Plan, to
determine  the  details  and  provisions  of  any  Stock  Option  Agreement,  to
accelerate   any  options   granted  under  the  Plan  and  to  make  all  other
determinations necessary or advisable for the administration of the Plan.

                  2.4 Type of Option.  The Committee  shall have full  authority
and discretion to determine,  and shall specify, whether the eligible individual
will be granted options  intended to qualify as incentive  options under Section
422 of the Code  ("Incentive  Options")  or options  which are not  intended  to
qualify  under  Section  422 of the Code  ("Non-Qualified  Options");  provided,
however,  that  Incentive  Options  shall only be granted  to  employees  of the
Corporation,  or a Parent or  Subsidiary  thereof,  and shall be  subject to the
special limitations set forth herein attributable to Incentive Options.

                  2.5 Interpretation. The interpretation and construction by the
Committee of any  provisions of the Plan or of any option granted under the Plan
shall be final and binding on all parties having an interest in this Plan or any
option  granted  hereunder.  No member of the Committee  shall be liable for any
action or  determination  made in good  faith  with  respect  to the Plan or any
option granted under the Plan.

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         3. ELIGIBILITY.

                  3.1  General.  All  directors,   officers,  employees  of  and
consultants to the  Corporation,  or any Parent or  Subsidiary,  relative to the
Corporation's,  or any  Parent's  or  Subsidiaries',  management,  operation  or
development  shall be eligible to receive  options under the Plan. The selection
of recipients of options shall be within the sole and absolute discretion of the
Committee.  No person  shall be granted an option  under this Plan  unless  such
person has executed the grant representation letter set forth on Exhibit "A," as
such  Exhibit  may be amended by the  Committee  from time to time and no person
shall be granted an  Incentive  Option  under this Plan unless such person is an
employee of the Corporation, or a Parent or Subsidiary, on the date of grant. No
person shall be granted more than 500,000 options in any one year period.

                  3.2  Termination of  Eligibility.  If an optionee ceases to be
employed  by the  Corporation,  or its  Parent  or  Subsidiary,  is no longer an
officer  or member of the Board of  Directors  of the  Corporation  or no longer
performs  services  for the  Corporation,  or its Parent or  Subsidiary  for any
reason (other than such optionee's  death), any option granted hereunder to such
optionee shall expire three months after the date the occurrence  giving rise to
such  termination  of  eligibility  (or 1  year  in the  event  an  optionee  is
"disabled,"  as  defined in  Section  22(e)(3)  of the Code) or upon the date it
expires by its terms,  whichever  is earlier.  Any option that has not vested in
the optionee as of the date of such  termination  shall  immediately  expire and
shall  be  null  and  void.  The  Committee  shall,  in its  sole  and  absolute
discretion,  decide,  utilizing the provisions set forth in Treasury Regulations
ss.  1.421-7(h),  whether an authorized leave of absence or absence for military
or  governmental  service,  or absence for any other  reason,  shall  constitute
termination of eligibility for purposes of this Section.

                  3.3 Death of Optionee and Transfer of Option.  In the event an
optionee shall die, an option may be exercised (subject to the condition that no
option shall be exercisable after its expiration and only to the extent that the
optionee's  right  to  exercise  such  option  had  accrued  at the  time of the
optionee's  death) at any time within six months after the  optionee's  death by
the executors or  administrators of the optionee or by any person or persons who
shall  have  acquired  the  option  directly  from the  optionee  by  bequest or
inheritance.  Any option  that has not vested in the  optionee as of the date of
death or  termination  of employment,  whichever is earlier,  shall  immediately
expire  and  shall be null and  void.  No option  shall be  transferable  by the
optionee other than by will or the laws of intestate succession.

                  3.4  Limitation  on  Incentive  Options.  No  person  shall be
granted any Incentive  Option to the extent that the aggregate fair market value
of the Stock (as defined  below) to which such options are  exercisable  for the
first time by the  optionee  during any  calendar  year  (under all plans of the
Corporation as determined under Section 422(d) of the Code) exceeds $100,000.

         4.  IDENTIFICATION  OF STOCK. The Stock, as defined herein,  subject to
the options  shall be shares of the  Corporation's  authorized  but  unissued or
acquired or  reacquired  common stock (the  "Stock").  The  aggregate  number of
shares  subject to  outstanding  options shall not exceed six million  shares of
Stock  (subject to adjustment  as provided in Section 6). If any option  granted
hereunder shall expire or terminate for any reason without having been exercised
in full, the  unpurchased  shares  subject  thereto shall again be available for
purposes  of this Plan.  Notwithstanding  the above,  at no time shall the total
number of shares of Stock issuable upon exercise of all outstanding  options and
the  total  number  of shares  of Stock  provided  for under any stock  bonus or
similar plan of the Corporation  exceed 30% as calculated in accordance with the
conditions  and  exclusions of  ss.260.140.45  of Title 10,  California  Code of
Regulations, based on the shares of the issuer which are outstanding at the time
the calculation is made.

         5. TERMS AND CONDITIONS OF OPTIONS.  Any option granted pursuant to the
Plan shall be evidenced by an agreement ("Stock Option  Agreement") in such form
as the Committee shall from time to time determine, which agreement shall comply
with and be subject to the following terms and conditions:

                  5.1 Number of Shares.  Each  option  shall state the number of
shares of Stock to which it pertains.

                  5.2 Option Exercise Price.  Each option shall state the option
exercise price, which shall be determined by the Committee;  provided,  however,
that (i) the exercise  price of any Incentive  Option shall not be less than the
fair market value of the Stock,  as determined by the Committee,  on the date of
grant of such  option,  (ii) the  exercise  price of any  option  granted to any
person who owns more than 10% of the total combined  voting power of all classes
of the  Corporation's  stock,  as determined  for purposes of Section 422 of the
Code,  shall not be less than 110% of the fair  market  value of the  Stock,  as
determined by the Committee,  on the date of grant of such option, and (iii) the

                                      EX-3
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exercise  price of any  Non-Qualified  Option  shall not be less than 85% of the
fair market value of the Stock,  as determined by the Committee,  on the date of
grant of such option.

                  5.3 Term of Option.  The term of an option  granted  hereunder
shall be determined by the Committee at the time of grant,  but shall not exceed
five years from the date of the grant.  The term of any Incentive Option granted
to an employee who owns more than 10% of the total combined  voting power of all
classes of the Corporation's stock, as determined for purposes of Section 422 of
the Code,  shall in no event  exceed  five  years  from the date of  grant.  All
options shall be subject to early  termination  as set forth in this Plan. In no
event shall any option be exercisable after the expiration of its term.

                  5.4  Method of  Exercise.  An  option  shall be  exercised  by
written notice to the  Corporation by the optionee (or successor in the event of
death) and execution by the optionee of an exercise representation letter in the
form set forth on Exhibit "B," as such  Exhibit may be amended by the  Committee
from time to time.  Such  written  notice  shall state the number of shares with
respect to which the option is being  exercised  and  designate  a time,  during
normal business hours of the Corporation,  for the delivery  thereof  ("Exercise
Date"),  which time  shall be at least 30 days  after the giving of such  notice
unless an  earlier  date  shall  have been  mutually  agreed  upon.  At the time
specified in the written notice,  the Corporation  shall deliver to the optionee
at the principal office of the Corporation,  or such other  appropriate place as
may be  determined by the  Committee,  a certificate  or  certificates  for such
shares.  Notwithstanding the foregoing, the Corporation may postpone delivery of
any  certificate or  certificates  after notice of exercise for such  reasonable
period as may be required to comply with any applicable listing  requirements of
any  securities  exchange.  In the event an option shall be  exercisable  by any
person other than the optionee,  the required notice under this Section shall be
accompanied  by  appropriate  proof of the right of such person to exercise  the
option.

                  5.5 Medium and Time of  Payment.  The  option  exercise  price
shall be payable in full on or before the option Exercise Date in any one of the
following alternative forms:

                           5.5.1  Full  payment  in  cash or  certified  bank or
cashier's check;

                           5.5.2 Full  payment in shares of Common  Stock of the
Corporation  owned by the participant at the time of exercise for a period of at
least six months  and having a fair  market  value on the  Exercise  Date in the
amount equal to the option exercise price;

                           5.5.3 Through a special sale and remittance procedure
pursuant to which the optionee shall concurrently  provide  irrevocable  written
instruction  to  (a) a  Corporation-designated  brokerage  firm  to  effect  the
immediate sale of the purchased shares and remit to the Corporation,  out of the
sale proceeds  available on the settlement  date,  sufficient funds to cover the
aggregate  exercise  price payable for the purchased  shares plus all applicable
Federal,  state and local income and employment taxes required to be withheld by
the  Corporation  by reason of such exercise and (b) the  Corporation to deliver
the  certificates  for the purchased  shares  directly to such brokerage firm in
order to complete the sale; or

                           5.5.4 A combination of the consideration set forth in
Sections 5.5.1, 5.5.2, or 5.5.3 equal
to the option exercise price.

                  5.6 Fair Market  Value.  The fair  market  value of a share of
Stock or  other  security  of the  Corporation  on any  relevant  date  shall be
determined in accordance with the following provisions:

                           5.6.1  If  the  Stock  or  other   security   of  the
Corporation  at the time is neither  listed nor admitted to trading on any stock
exchange nor traded in the  over-the-counter  market, then the fair market value
shall be determined by the Committee after taking into account the factors found
in  ss.260.140.45  of Title 10,  California  Code of Regulations  and such other
factors as the Committee shall deem appropriate.

                           5.6.2  If  the  Stock  or  other   security   of  the
Corporation  is not at the time  listed  or  admitted  to  trading  on any stock
exchange  but is traded in the  over-the-counter  market,  the fair market value
shall be the mean between the closing bid and closing  asked prices (or, if such
information  is available,  the closing  selling price) of one share of Stock or

                                      EX-4
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other   security   of  the   Corporation   on  the  date  in   question  in  the
over-the-counter market, as such prices are reported by the National Association
of Securities  Dealers  through its NASDAQ system or any  successor  system.  If
there are no reported  bid and asked prices (or closing  selling  price) for the
Stock or other  security of the  Corporation  on the date in question,  then the
mean  between  the  closing  bid price and  closing  asked price (or the closing
selling price) on the last preceding date for which such quotations  exist shall
be determinative of fair market value.

                           5.6.3  If  the  Stock  or  other   security   of  the
Corporation is at the time listed or admitted to trading on any stock  exchange,
then the fair market  value shall be the closing  selling  price of one share of
Stock or other security of the  Corporation on the date in question on the stock
exchange  determined by the Committee to be the primary  market for the Stock or
other  security of the  Corporation,  as such price is officially  quoted in the
composite tape of transactions on such exchange. If there is no reported sale of
Stock or other  security  of the  Corporation  on such  exchange  on the date in
question,  then the fair market value shall be the closing  selling price on the
exchange on the last preceding date for which such quotation exists.

                  5.7 Rights as a  Shareholder.  An optionee or successor  shall
have no rights as a shareholder  with respect to any Stock underlying any option
until the date of the issuance to such optionee of a certificate for such Stock.
No adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash,  securities or other property) or  distributions or other rights for which
the record date is prior to the date such Stock certificate is issued, except as
provided in Section 6.

                  5.8 Modification, Extension and Renewal of Options. Subject to
the terms and conditions of the Plan, the Committee may modify,  extend or renew
outstanding  options  granted  under  the  Plan,  or  accept  the  surrender  of
outstanding  options (to the extent not exercised) and authorize the granting of
new options in substitution therefor.

                  5.9  Vesting  and  Restrictions.   The  Committee  shall  have
complete  authority and discretion to set the terms,  conditions,  restrictions,
vesting  schedules and other  provisions of any option in the  applicable  Stock
Option  Agreement and shall have complete  authority to require  conditions  and
restrictions on any Stock issued pursuant to this Plan; provided, however, that,
except  with  respect  to  options  granted  to  officers  or  directors  of the
Corporation,  options  granted  pursuant  to this Plan shall be  exercisable  or
"vest" at the rate of at least 20% per year over the 5-year period  beginning on
the date the option is granted.  Options granted to officers and directors shall
become  exercisable or "vest," subject to the condition of continued  employment
and/or combined service on the Board of Directors,  as appropriate.  The maximum
vesting  period for options  granted to officers or directors will be five years
from the date of grant.

                  5.10  Other  Provisions.  The Stock  Option  Agreements  shall
contain such other  provisions,  including without  limitation,  restrictions or
conditions upon the exercise of options, as the Committee shall deem advisable.

         6. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

                  6.1  Subdivision  or  Consolidation.  Subject to any  required
action by shareholders of the Corporation, the number of shares of Stock covered
by  each  outstanding   option,  and  the  exercise  price  thereof,   shall  be
proportionately  adjusted  for any  increase or decrease in the number of issued
shares of Stock of the Corporation resulting from a subdivision or consolidation
of shares,  including,  but not limited to, a stock split,  reverse stock split,
recapitalization,  continuation or  reclassification,  or the payment of a stock
dividend (but only on the Stock) or any other increase or decrease in the number
of such shares effected without receipt of consideration by the Corporation. Any
fraction  of a share  subject to option  that  would  otherwise  result  from an
adjustment  pursuant to this Section shall be rounded  downward to the next full
number of shares without other  compensation or  consideration  to the holder of
such option.

                  6.2  Capital  Transactions.  Upon a sale or exchange of all or
substantially all of the assets of the Corporation, a merger or consolidation in
which the Corporation is not the surviving corporation, a merger, reorganization
or  consolidation  in which the  Corporation  is the surviving  corporation  and
shareholders of the Corporation exchange their stock for securities or property,
a liquidation of the Corporation or similar transaction ("Capital Transaction"),
this Plan and each option  issued under this Plan,  whether  vested or unvested,
shall terminate, unless such options are assumed by a successor corporation in a
merger  or  consolidation,   immediately  prior  to  such  Capital  Transaction;
provided,  however,  that  unless  the  outstanding  options  are  assumed  by a
successor corporation in a merger or consolidation, subject to terms approved by

                                      EX-5
<PAGE>

the Committee,  all optionees  will have the right,  during the 30 days prior to
such Capital  Transaction,  to exercise all vested options.  Notwithstanding the
foregoing, in the event there is a merger or consolidation where the Corporation
is not the surviving corporation, all options granted under this Plan shall vest
30 days prior to such merger or consolidation unless such options are assumed by
the successor  corporation  in such merger or  consolidation.  The Committee may
(but shall not be obligated to) (i) accelerate the vesting of any option or (ii)
apply the foregoing provisions, including but not limited to termination of this
Plan and any options granted  pursuant to the Plan, in the event there is a sale
of 51% or more of the  stock  of the  Corporation  in any one year  period  or a
Capital Transaction.

                  6.3 Adjustments.  To the extent that the foregoing adjustments
relate to stock or securities of the Corporation, such adjustments shall be made
by the Committee,  whose  determination in that respect shall be final,  binding
and conclusive.

                  6.4 Ability to Adjust.  The grant of an option pursuant to the
Plan shall not affect in any way the right or power of the  Corporation  to make
adjustments,  reclassifications,  reorganizations  or changes of its  capital or
business  structure  or to  merge,  consolidate,  dissolve,  liquidate,  sell or
transfer all or any part of its business or assets.

                  6.5 Notice of Adjustment.  Whenever the Corporation shall take
any  action  resulting  in any  adjustment  provided  for in this  Section,  the
Corporation  shall  forthwith  deliver  notice of such action to each  optionee,
which notice shall set forth the number of shares  subject to the option and the
exercise price thereof resulting from such adjustment.

                  6.6 Limitation on Adjustments.  Any adjustment,  assumption or
substitution  of an Incentive  Option shall comply with Section 425 of the Code,
if applicable.

         7.  NONASSIGNABILITY.  Options granted under this Plan may not be sold,
pledged, assigned or transferred in any manner other than by will or by the laws
of intestate succession, and may be exercised during the lifetime of an optionee
only by such optionee. Any transfer in violation of this Section shall void such
option and any Stock  Option  Agreement  entered  into by the  optionee  and the
Corporation  regarding such transferred option shall be void and have no further
force or effect.  No option  shall be pledged or  hypothecated  in any way,  nor
shall any option be subject to execution, attachment or similar process.

         8. NO RIGHT OF EMPLOYMENT. Neither the grant nor exercise of any option
nor  anything  in this  Plan  shall  impose  upon the  Corporation  or any other
corporation  any  obligation to employ or continue to employ any  optionee.  The
right of the  Corporation  and any other  corporation  to terminate any employee
shall not be diminished  or affected  because an option has been granted to such
employee.

         9. TERM OF PLAN. This Plan is effective on the date the Plan is adopted
by the Board of Directors  and options may be granted  pursuant to the Plan from
time to time  within a period of ten (10) years  from such date,  or the date of
any  required   shareholder  approval  required  under  the  Plan,  if  earlier.
Termination of the Plan shall not affect any option theretofore granted.

         10.  AMENDMENT OF THE PLAN.  The Board of Directors of the  Corporation
may,  subject to any required  shareholder  approval,  suspend,  discontinue  or
terminate the Plan, or revise or amend it in any respect whatsoever with respect
to any shares of Stock at that time not subject to options.

         11. APPLICATION OF FUNDS. The proceeds received by the Corporation from
the  sale of  Stock  pursuant  to  options  may be used  for  general  corporate
purposes.

         12.  RESERVATION OF SHARES.  The  Corporation,  during the term of this
Plan,  shall at all times  reserve and keep  available  such number of shares of
Stock as shall be sufficient to satisfy the requirements of the Plan.

                                      EX-6
<PAGE>

         13. NO OBLIGATION TO EXERCISE  OPTION.  The granting of an option shall
not impose any obligation upon the optionee to exercise such option.

         14. APPROVAL OF BOARD OF DIRECTORS AND SHAREHOLDERS. The Plan shall not
take effect until  approved by the Board of Directors of the  Corporation.  This
Plan shall be approved by a vote of the  shareholders  within 12 months from the
date of approval by the Board of Directors.  In the event such  shareholder vote
is not obtained,  all options  granted  hereunder,  whether  vested or unvested,
shall be null and void. Further,  any stock acquired pursuant to the exercise of
any options  under this  Agreement  may not count for  purposes  of  determining
whether shareholder approval has been obtained.

         15. WITHHOLDING TAXES. Notwithstanding anything else to the contrary in
this Plan or any Stock  Option  Agreement,  the  exercise of any option shall be
conditioned  upon  payment  by  such  optionee  in  cash,  or  other  provisions
satisfactory to the Committee, of all local, state, federal or other withholding
taxes  applicable,  in the  Committee's  judgment,  to the  exercise or to later
disposition of shares acquired upon exercise of an option.

         16. PARACHUTE  PAYMENTS.  Any outstanding option under the Plan may not
be accelerated to the extent any such  acceleration  of such option would,  when
added to the present value of other payments in the nature of compensation which
becomes  due and  payable to the  optionee  would  result in the payment to such
optionee of an excess  parachute  payment  under  Section 280G of the Code.  The
existence of any such excess  parachute  payment shall be determined in the sole
and absolute discretion of the Committee.

         17.  SECURITIES LAWS  COMPLIANCE.  Notwithstanding  anything  contained
herein,  the  Corporation  shall not be obligated to grant any option under this
Plan or to sell,  issue or effect any  transfer of any Stock  unless such grant,
sale,  issuance or transfer is at such time effectively (i) registered or exempt
from  registration  under the Securities Act of 1933, as amended (the "Act") and
(ii)  qualified  or exempt from  qualification  under the  California  Corporate
Securities  Law of 1968 and any other  applicable  state  securities  laws. As a
condition   to  exercise  of  any  option,   each   optionee   shall  make  such
representations  as may be deemed  appropriate by counsel to the Corporation for
the Corporation to use any available  exemption from registration  under the Act
or qualification under any applicable state securities law.

         18. RESTRICTIVE LEGENDS. The certificates representing the Stock issued
upon  exercise  of options  granted  pursuant to this Plan will bear any legends
required by applicable securities law as determined by the Committee.

         19.  NOTICES.  Any notice to be given under the terms of the Plan shall
be  addressed  to the  Corporation  in care of its  Secretary  at its  principal
office,  and any notice to be given to an optionee  shall be  addressed  to such
optionee at the address maintained by the Corporation for such person or at such
other address as the optionee may specify in writing to the Corporation.

         20.  INFORMATION TO PARTICIPANTS.  The Corporation shall make available
to all holders of options the information required pursuant to ss. 260.140.46 of
the California Code of  Regulations.  As adopted by the Board of Directors as of
July 2, 2003.

PATRIOT SCIENTIFIC CORORATION, a Delaware corporation

By:  /s/Lowell W. Giffhorn
   -----------------------
      LOWELL W. GIFFHORN

Its:  Exec. V.P. and CFO

                                      EX-7
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                                    EXHIBIT A

                               ____________, 2003

Patriot Scientific Corporation
10989 Via Frontera
San Diego, CA 92127

Re:  2003 Stock Option Plan

To Whom It May Concern:

         This letter is delivered to Patriot Scientific Corporation,  a Delaware
corporation (the "Corporation"), in connection with the grant to __________ (the
"Optionee") of an option (the "Option") to purchase _____ shares of common stock
of the Corporation (the "Stock") pursuant to the Patriot Scientific  Corporation
2003 Stock Option Plan dated (the  "Plan").  The Optionee  understands  that the
Corporation's  receipt of this letter executed by the Optionee is a condition to
the Corporation's willingness to grant the Option to the Optionee.

         In  addition,  the Optionee  makes the  following  representations  and
warranties with the understanding that the Corporation will rely upon them.

         1.  The  Optionee  acknowledges  receipt  of a  copy  of the  Plan  and
Agreement. The Optionee has carefully reviewed the Plan and Agreement.

         2. The Optionee acknowledges receipt of a prospectus regarding the Plan
which includes the information  required by Section (a)(1) of Rule 428 under the
Securities Act of 1933.

         3. The Optionee  understands and  acknowledges  that the Option and the
Stock are subject to the terms and conditions of the Plan.

         4. The Optionee understands and agrees that, at the time of exercise of
any part of the Option for Stock,  the  Optionee  may be required to provide the
Corporation with additional representations, warranties and/or covenants similar
to those contained in this letter.

         5. The Optionee is a resident of the State of __________.

         6. The Optionee will notify the  Corporation  immediately of any change
in the above  information which occurs before the Option is exercised in full by
the Optionee.

         The   foregoing   representations   and   warranties   are   given   on
______________, 2003 at ____________________.

OPTIONEE:

_____________________________________________________

                                      EX-8
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                                    EXHIBIT B

                               ____________, 2003

Patriot Scientific Corporation
10989 Via Frontera
San Diego, CA 92127

         Re:  2003 Stock Option Plan

To Whom It May Concern:

         I (the "Optionee") hereby exercise my right to purchase ________ shares
of common  stock (the  "Stock") of Patriot  Scientific  Corporation,  a Delaware
corporation  (the  "Corporation"),  pursuant  to, and in  accordance  with,  the
Patriot  Scientific  Corporation  2003 Stock  Option Plan dated (the "Plan") and
Stock Option  Agreement  (the  "Agreement")  dated  ________________,  2003.  As
provided in such Plan,  I deliver  herewith  payment as set forth in the Plan in
the amount of the aggregate  option exercise  price.  Please deliver to me at my
address as set forth above stock  certificates  representing  the subject shares
registered in my name (and (spouse) , as (style of vesting)).

         The Optionee hereby represents and agrees as follows:

         1.  The  Optionee  acknowledges  receipt  of a  copy  of the  Plan  and
Agreement. The Optionee has carefully reviewed the Plan and Agreement.

         2. The Optionee is a resident of the State of __________.

         3. The  Optionee  represents  and  agrees  that if the  Optionee  is an
"affiliate"  (as  defined in Rule 144 under the  Securities  Act of 1933) of the
Corporation  at the time the  Optionee  desires  to sell any of the  Stock,  the
Optionee will be subject to certain restrictions under, and will comply with all
of the requirements of, applicable federal and state securities laws.

         The   foregoing   representations   and   warranties   are   given   on
___________________ at ______________________.

OPTIONEE:

________________________________________

                                      EX-9<PAGE>
                                                                    Exhibit 4.3

                             2003 STOCK OPTION PLAN
                                       OF
                           CHESHIRE DISTRIBUTORS, INC.

                                  May___, 2003

l.       PURPOSE OF THE PLAN

         The purpose of the 2003 Stock Option Plan (the "Plan") of CHESHIRE
DISTRIBUTORS, INC. (the "Company") is to provide an incentive to employees,
directors and consultants whose present and potential contributions to the
Company and its Subsidiaries (as such term is defined in Section 2 below) are or
will be important to the success of the Company by affording them an opportunity
to acquire a proprietary interest in the Company. It is intended that this
purpose will be effected through the issuance of stock options to purchase
shares of the Company's Common Stock, $.001 par value per share ("Common Stock")
(such options are sometimes referred to herein as "Awards"). Stock options may
be granted under the Plan which qualify as "Incentive Stock Options" ("ISO" or
collectively as "ISOs") under Section 422 of the Internal Revenue Code of l986,
as it may be hereafter amended (the "Code"), as well as "Nonqualified Stock
Options" ("NQSO" or collectively as "NQSOs") which are any options that are not
ISO's.

2.       ELIGIBILITY

         Awards may be made or granted to employees, advisors, management
directors and consultants of the Company, or its Subsidiaries, who are deemed to
have the potential to have a significant effect on the future success of the
Company (such eligible persons being referred to herein as "Eligible
Participants"). The term "employees" shall include, but not be limited to,
officers of the Company or a Subsidiary. Directors of the Company or any
Subsidiary, or consultants who are not employees of the Company or a Subsidiary,
are not eligible to receive options which qualify as ISO's. No ISO shall be
granted to an employee who, at the time the option is granted, owns stock
possessing more than l0% of the total combined voting power of all classes of
capital stock of the employer corporation (as such term is used in the Code) or
any Parent or Subsidiary of the employer corporation unless at the time such ISO
is granted the option price is at least one hundred ten percent (ll0%) of the
fair market value of stock subject to the ISO on the date of grant (as
determined pursuant to Subsection 8(a) hereof) and such ISO is by its terms not
exercisable after the expiration of five (5) years from the date such option is
granted. The terms "Subsidiary" and "Parent" as used herein shall have the
meanings given them in Section 425 of the Code. Awards may be made to personnel
who hold or have held options or shares under the Plan or any other plans of the
Company.

3.       STOCK SUBJECT TO THE PLAN

         The shares that may be issued upon exercise of options under the Plan
shall not exceed in the aggregate 2,000,000 shares of the Common Stock, as
adjusted to give effect to the anti-dilution provisions contained in Section 7
hereof. Such shares may be authorized and unissued shares, or shares purchased
by the Company and reserved for issuance under the Plan. If a stock option for
any reason expires or is terminated without having been exercised in full, those
shares relating to an unexercised stock option shall again become available for
grant and/or sale under the Plan.

4.       ADMINISTRATION

         (a) Procedure. The Plan shall be administered by the Board of Directors
of the Company (the "Board") or by a Committee of the Board, if one is appointed
for this purpose (the "Committee"). Committee members shall serve for such term
as the Board may in each case determine, and shall be subject to removal at any
time by the Board.

         (b) Powers of the Board or Committee. As used herein, except as the
Committee's powers are expressly specifically limited herein, references to the
Board or the Committee shall mean either the Board or the Committee, whichever
is then acting with respect to the Plan. Subject to the provisions of the Plan,
the Board shall have the authority in its discretion to: (i) determine, upon
review of relevant information, the fair market value of the Common Stock; (ii)
determine the exercise price per share of stock options to be granted; (iii)
determine the Eligible Participants to whom, and time or times at which, Awards
shall be granted and the number of shares to be issuable upon exercise of each
stock option; (iv) construe and interpret the Plan; (v) prescribe, amend and
rescind rules and regulations relating to the Plan; (vi) determine the terms and
provisions of each Award (which need not be identical); and (vii) make all other
determinations necessary to, or advisable for, the administration of the Plan.

5.  DURATION OF THE PLAN

         The Plan shall become effective upon the approval of the requisite vote
of the stockholders of the Company, and upon the approvals, if required, of any

                                       7
<PAGE>

other public authorities. The Plan shall remain in effect for a term of ten (10)
years from the date of adoption by the Board unless sooner terminated under
Section 15 hereof. Notwithstanding any of the foregoing to the contrary, the
Board (but not the Committee) shall have the authority to amend the Plan
pursuant to Section 15 hereof; provided, however, that Awards already made shall
remain in full force and effect as if the Plan had not been amended or
terminated.

6. OPTIONS

         Options shall be evidenced by stock option agreements in such form, and
not inconsistent with the Plan, as the Board shall approve from time to time,
which agreements shall contain in substance the following terms and conditions:

         (a) Types of Options. Both ISOs and NQSOs may be granted. In connection
with the grant of an option, the Committee shall specify whether the option is
intended to be an ISO or a NQSO, and the agreement evidencing the option shall
designate it accordingly. In connection with the grant of any option intended to
be an ISO, the Committee may prescribe such terms and conditions other than
those specified in the Plan as the Committee deems desirable to qualify the
option as an incentive stock option under the Code. If for any reason an option
(or any portion thereof) intended by the Committee to be an ISO nevertheless
does not so qualify, same shall not invalidate the option (or such portion), and
instead the disqualified portion (or, if necessary, the whole option) shall be
deemed to have been granted as an NQSO irrespective of the manner in which it is
designated in the option agreement.

         (b) Option Price; Number of Shares. The option price, which shall be
approved by the Board, shall in no event be less than one hundred percent (l00%)
(or 110% for ten percent or greater stockholders) in the case of ISOs, and
eighty-five percent (85%) in the case of other options, of the fair market value
of the Company's Common Stock at the time the option is granted. The fair market
value of the Common Stock for the purposes of the Plan shall mean: (i) if the
Common Stock is traded on a national securities exchange or on the NASDAQ
National Market System ("NMS") or Small Cap Market ("Small Cap"), the per share
closing price of the Common Stock on the principal securities exchange on which
they are listed or on NMS or Small Cap, as the case may be, on the date of grant
(or if there is no closing price for such date of grant, then the last preceding
business day on which there was a closing price); or (ii) if the Common Stock is
traded in the over-the-counter market and quotations are published on the NASDAQ
quotation system but not on NMS or Small Cap, the closing bid price of the
Common Stock on the date of grant as reported by NASDAQ (or if there are no
closing bid prices for such date of grant, then the last preceding business day
on which there was a closing bid price); or (iii) if the Common Stock is traded
in the over-the-counter market but bid quotations are not published on NASDAQ,
the closing bid price per share for the Common Stock as furnished by a
broker-dealer which regularly furnishes price quotations for the Common Stock;
or (iv) if the Common Stock is not traded publicly, such value as the Board, in
its discretion, shall assign in good faith as the fair market value per share of
the Common Stock.

         The option agreement shall specify the total number of shares to which
it pertains and whether such options are ISOs or are not ISOs. With respect to
ISOs granted under the Plan, the aggregate fair market value (determined at the
time an ISO is granted) of the shares of Common Stock with respect to which ISOs
are exercisable for the first time by such employee during any calendar year
shall not exceed $100,000 under all plans of the employer corporation or its
Parent or Subsidiaries.

         (c) Waiting Period and Exercise Dates. At the time an Award is granted,
the Board will determine the terms and conditions to be satisfied before shares
may be purchased, including the dates on which shares subject to the option may
first be purchased. The period from the date of grant of an option until the
date on which such option may first be exercised, if not immediately
exercisable, is referred to herein as the "waiting period." At the time an
option is granted, the Board shall fix the period within which it may be
exercised which shall not be less than one (l) year nor more than ten (l0) years
from the date of grant (nor more than five years for ten percent or greater
stockholders receiving ISO's). (Any of such periods is referred to herein as the
"exercise period.").

         (d) The Board may permit, at the election of any Eligible Participant,
that Awards be exercised in whole or in part at any time as to any shares which
have not yet vested (the "Unvested Shares"), in accordance with a restricted
stock purchase agreement in the such form as approved from time to time by the
Board. As a condition to exercising any Award for Unvested Shares, the Eligible
Participant shall execute and deliver to the Company the Restricted Stock
Purchase Agreement or such other agreement as the Board shall require. With
respect to the exercise of any Award for Unvested Shares, an election may be
filed by such Eligible Participant with the Internal Revenue Service, within
thirty (30) days of the purchase of the Unvested Shares, electing, pursuant to
Section 83(b) of the Code to be taxed currently on any difference between the
purchase price of the Unvested Shares and their fair market value on the date of
purchase. In the case of an NQSO, this will result in a recognition of taxable
income to such Eligible Participant on the date of exercise, measured by the
excess, if any, of the fair market value of the Unvested Shares at the time the
Award is exercised over the purchase price for the Unvested Shares. Absent such
an election, taxable income will be measured and recognized by such Eligible
Participant at the time or times on which the Company's option to repurchase any
Unvested Shares lapses. Eligible Participants are strongly encouraged to seek
the advice of his or her own tax consultant in connection with the purchase of
Unvested Shares and the advisability of filing an election under Section 83(b)
of the Code. ELIGIBLE PARTICIPANTS ACKNOWLEDGE THAT IT IS THEIR SOLE
RESPONSIBILITY TO TIMELY FILE THE ELECTION PURSUANT TO SECTION 83(B) OF THE CODE
AND THAT THE COMPANY SHALL HAVE NO OBLIGATION TO MAKE, OR LIABILITY FOR FAILURE
TO MAKE, SUCH FILING ON SUCH ELIGIBLE PARTICIPANT'S BEHALF.

                                       8
<PAGE>

         (e) Form and Time of Payment. Stock purchased pursuant to an option
agreement shall be paid for at the time of purchase either in cash or by
certified check or, in the discretion of the Board, (i) in a combination of cash
and a promissory note, (ii) through the delivery of shares of Common Stock or
such other "cashless" exercise as the Board deems appropriate or (iii) in a
combination of the methods described above. Upon receipt of payment, the Company
shall, without transfer or issue tax to the option holder or other person
entitled to exercise the option, deliver to the option holder (or such other
person) a certificate or certificates for the shares so purchased.

         (f) Effect of Termination or Death. In the event that an option holder
ceases to be an employee of the Company or of any Subsidiary for any reason
other than permanent disability (as determined by the Board) and death, any
option, including any unexercised portion thereof, which was otherwise
exercisable on the date of termination, shall expire unless exercised within a
period of three months from the date on which the option holder ceased to be so
employed, but in no event after the expiration of the exercise period. In the
event of the death of an option holder during this three month period, the
option shall be exercisable by his or her personal representatives, heirs or
legatees to the same extent that the option holder could have exercised the
option if he or she had not died, for the three months from the date of death,
but in no event after the expiration of the exercise period. In the event of the
permanent disability of an option holder while an employee of the Company or of
any Subsidiary, any option granted to such employee which was otherwise
exercisable on the date of disability shall be exercisable for twelve (l2)
months after the date of permanent disability, but in no event after the
expiration of the exercise period. In the event of the death of an option holder
while an employee of the Company or any Subsidiary, or during the twelve (l2)
month period after the date of permanent disability of the option holder, that
portion of the option which had become exercisable on the date of death shall be
exercisable by his or her personal representatives, heirs or legatees at any
time prior to the expiration of one (l) year from the date of the death of the
option holder, but in no event after the expiration of the exercise period.
Except as the Board shall provide otherwise, in the event an option holder
ceases to be an employee of the Company or of any Subsidiary for any reason,
including death, prior to the lapse of the waiting period, his or her option
shall terminate and be null and void.

         (g) Other Provisions. Each option granted under the Plan may contain
such other terms, provisions and conditions not inconsistent with the Plan as
may be determined by the Board.

7.   RECAPITALIZATION

         In the event that dividends are payable in Common Stock or in the event
there are splits, subdivisions or combinations of shares of Common Stock, the
number of shares available under the Plan shall be increased or decreased
proportionately, as the case may be, and the number of shares delivered upon the
exercise thereafter of any stock option theretofore granted or issued shall be
increased or decreased proportionately, as the case may be, without change in
the aggregate purchase price.

8.   ACCELERATION

         (a) Notwithstanding any contrary waiting period in any stock option
agreement issued pursuant to the Plan, but subject to any determination by the
Board to provide otherwise at the time such Award is granted or subsequent
thereto, each outstanding option granted under the Plan shall, except as
otherwise provided in the stock option agreement, become exercisable in full for
the aggregate number of shares covered thereby unconditionally on the first day
following the occurrence of any of the following: (a) the approval by the
stockholders of the Company of an Approved Transaction; (b) a Control Purchase;
or (c) a Board Change.

         (b) For purposes of this Section 8:

                  (i) An "Approved Transaction" shall mean (A) any consolidation
or merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of Common Stock would be converted into
cash, securities or other property, other than a merger of the Company in which
the holders of Common Stock immediately prior to the merger have the same
proportionate ownership of common stock of the surviving corporation immediately
after the merger, or (B) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all, or substantially all,
of the assets of the Company, or (C) the adoption of any plan or proposal for
the liquidation or dissolution of the Company.

                  (ii) A "Control Purchase" shall mean circumstances, after such
time as the Company shall be subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended, in which any person (as such term
is defined in Sections l3(d)(3) and l4(d)(2) of the Exchange Act), corporation
or other entity (other than the Company or any employee benefit plan sponsored
by the Company or any Subsidiary) (A) shall purchase any Common Stock of the
Company (or securities convertible into the Company's Common Stock) for cash,
securities or any other consideration pursuant to a tender offer or exchange
offer, without the prior consent of the Board or (B) shall become the
"beneficial owner" (as such term is defined in Rule l3d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing
twenty-five percent (25%) or more of the combined voting power of the then
outstanding securities of the Company ordinarily (and apart from rights accruing
under special circumstances) having the right to vote in the election of
directors (calculated as provided in paragraph (d) of such Rule l3d-3 in the
case of rights to acquire the Company's securities).

                  (iii) A "Board Change" shall mean circumstances, after such
time as the Company shall be subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended, in which, during any period of two

                                       9
<PAGE>

consecutive years or less, individuals who at the beginning of such period
constitute the entire Board shall cease for any reason to constitute a majority
thereof unless the election, or the nomination for election by the Company's
stockholders, of each new director was approved by a vote of at least a majority
of the directors then still in office.

9.   CONTINUATION OF RELATIONSHIP; LEAVE OF ABSENCE

         (a) Nothing in the Plan or any Award made hereunder shall interfere
with or limit in any way, the right of the Company or of any Subsidiary to
terminate any Eligible Participant's employment at any time, nor confer upon any
Eligible Participant any right to continue any such relationship with the
Company or Subsidiary.

         (b) For purposes of the Plan, a transfer of a recipient of options
hereunder from the Company to a Subsidiary or vice versa, or from one Subsidiary
to another, or a leave of absence duly authorized by the Company shall not be
deemed a termination of employment or a break in the incentive, waiting or
exercise period, as the case may be. In the case of any employee on an approved
leave of absence, the Board may make such provisions with respect to continuance
of stock rights, options or restricted shares previously granted while on leave
from the employ of the Company or a Subsidiary as it may deem equitable.

l0.   GENERAL RESTRICTION

         Each Award made under the Plan shall be subject to the requirement
that, if at any time the Board shall determine, in its sole and subjective
discretion, that the registration, qualification or listing of the shares
subject to such Award upon a securities exchange or under any state or federal
law, or the consent or approval of any government regulatory body, is necessary
or desirable as a condition of, or in connection with, the granting or exercise
of such Award, the Company shall not be required to issue such shares unless
such registration, qualification, listing, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Board. Nothing
in the Plan or any agreement or grant hereunder shall obligate the Company to
effect any such registration, qualification or listing.

11.   RIGHTS AS A STOCKHOLDER

         The holder of a stock option shall have no rights as a stockholder with
respect to any shares covered by the stock option, until the date of issuance of
a stock certificate to him for such shares related to the exercise thereof. No
adjustment shall be made for the dividends or other rights for which the record
date is prior to the date such stock certificate is issued.

l2.  TRANSFER RESTRICTIONS

         During the lifetime of the grantee, an option granted under the Plan
may not be sold, assigned, pledged, hypothecated or otherwise transferred in any
manner, except that the Committee, in its discretion and subject to such
conditions as it may determine to impose, may permit an inter vivos transfer by
gift to or for the benefit of an immediate family member of the grantee or to a
charitable organization.

l3.   WITHHOLDING TAXES

         Whenever under the Plan shares are to be issued upon exercise of stock
options granted hereunder, the Company shall have the right to require the
Eligible Participant to remit to the Company an amount sufficient to satisfy
applicable federal, state and local withholding tax requirements prior to the
delivery of any certificate or certificates for such shares or at such later
time as when the Company may determine that such taxes are due. Whenever under
the Plan payments are to be made in cash, such payment shall be net of an amount
sufficient to satisfy applicable federal, state and local withholding tax
requirements.

l4.   NONEXCLUSIVITY OF THE PLAN

         Neither the adoption of the Plan by the Board nor any provision of the
Plan shall be construed as creating any limitations on the power of the Board
(but not the Committee) to adopt such additional compensation agreements as it
may deem desirable, including, without limitation, the granting of stock options
otherwise than under the Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

15.   AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

         The Board (but not the Committee) may at any time amend, alter, suspend
or discontinue the Plan, but no amendment, alteration, suspension or
discontinuation shall be made which would impair the rights of any recipient of
a stock option under any agreement theretofore entered into hereunder, without
his consent, or which, without the requisite vote of the stockholders of the
Company approving such action, would:

         (a) except as is provided in Section 7 of the Plan, increase the total
number of shares of stock reserved for the purposes of the Plan; or

                                       10
<PAGE>

         (b) extend the duration of the Plan; or

         (c) materially increase the benefits accruing to participants under the
Plan; or

         (d) change the category of persons who can be Eligible Participants
under the Plan.

         Without limiting the foregoing, the Board may, any time or from time to
time, authorize the Company, without the consent of the respective recipients,
to issue new options or identical options for any successor class of stock to
the Common Stock in exchange for the surrender and cancellation of any or all
outstanding options.

16.      LIMITATIONS ON EXERCISE

         Notwithstanding anything to the contrary contained in the Plan, any
agreement evidencing any Award hereunder may contain such provisions as the
Board deems appropriate to ensure that the penalty provisions of Section 4999 of
the Code, or any successor thereto, will not apply to any stock received by the
holder from the Company.

17.   GOVERNING LAW

         The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware.

18.    REGULATORY COMPLIANCE, LISTING AND OTHER SUSPENSIONS OF THE PLAN

         Notwithstanding anything in the Plan to the contrary, the issuance or
delivery of any shares pursuant to the exercise of an option may be postponed or
suspended by the Company for such period as may be required to enable the
Company to comply with any applicable securities laws or regulations, any
applicable listing requirements of any national securities exchange, or any
requirements under any other law or regulation applicable to the issuance or
delivery of such shares, and the Company shall not be obligated to issue or
deliver any such shares if the issuance or delivery thereof shall constitute a
violation of any applicable provision of law or regulation of any governmental
authority or national securities exchange.

         Notwithstanding anything herein to the contrary, the Board of Directors
of the Company may suspend this Plan and the exercise of any Options granted
hereunder, in the event that the Board of Directors of the Company determines,
in good faith, that the Company possesses material information not ripe for
disclosure, and that the exercise of any such Options would be detrimental to
the Company or its stockholders.

                                       11
<PAGE>

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