Document:

Exhibit 10.70

                               NUTRITION 21, INC.
                             2001 STOCK OPTION PLAN

       There is hereby established a 2001 Stock Option Plan (the "Plan"). The
Plan provides for the grant to employees, consultants and others who perform
services for Nutrition 21, Inc. (the "Company") or its subsidiaries, other than
directors of the Company and officers elected by the board of directors of the
Company, of options ("Options") to purchase shares of common stock of the
Company ("Common Stock").

1.     PURPOSE. The purpose of the Plan is to provide additional incentive to
the employees, consultants and others who render services to the Company, other
than directors of the Company and officers elected by the board of directors of
the Company, who are responsible for the management or growth of the Company, or
otherwise contribute to the conduct and direction of its business, operations
and affairs. It is intended that Options granted under the Plan strengthen the
desire of such persons to join and remain in the employ of (or in the rendering
of services to) the Company and stimulate their efforts on behalf of the
Company.

2.     THE STOCK. The aggregate number of shares of Common Stock which may be
subject to Options shall not exceed 2,500,000. Such shares may be either
authorized and unissued shares, or treasury shares. If any Option granted under
the Plan shall expire, terminate or be canceled for any reason without having
been exercised in full, the corresponding number of unpurchased shares shall
again be available for the purposes of the Plan. The preceding sentence shall
apply only for purposes of determining the aggregate number of shares of Common
Stock subject to options, but shall not apply for purposes of determining the
maximum number of shares of Common Stock with respect to which Options that may
be granted to any person participating in the Plan.

3.     ADMINISTRATION OF THE PLAN.

       (a)    The Plan shall be administered by a committee or committees (the
"Committee") which shall be appointed by the Board of Directors of the Company
(the "Board") from among its members. Subject to the express provisions of the
Plan, the Committee shall have authority, in its discretion, to determine the
individuals to receive Options, the times when they shall receive them and the
number of shares of Common Stock to be subject to each Option, and other terms
relating to the grant of Options.

       (b)    Subject to the express provisions of the Plan, the Committee shall
have authority 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
need not be identical) and, as specified in this Plan, the fair market value of
the Common Stock, and to make all other determinations necessary or advisable
for administering the Plan. The Committee 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 it into effect,
and it shall be the sole and final judge of

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such expediency. The determinations of the Committee on the matters referred to
in this Section 3 shall be conclusive.

       (c)    The Committee may, in its sole discretion, and subject to such
terms and conditions as it may adopt, accelerate the date or dates on which some
or all outstanding Options may be exercised.

       (d)    The Committee may require that any Option Shares issued be
legended as necessary to comply with applicable federal and state securities
laws.

4.     TYPES OF OPTIONS. Options granted under the Plan shall be in the form of
(i) incentive stock options ("ISOs"), as defined in Section 422 of the Code, or
(ii) non-statutory options which do not qualify under such Section ("NSOs"), or
both, in the discretion of the Committee. The status of each Option shall be
identified in the option agreement, or if not identified, the status of each
Option shall be an ISO to the extent permitted by law.

5.     ELIGIBILITY.

       (a)    Options may be granted to employees, consultants and others who
perform services for the Company or its subsidiaries, other than directors of
the Company and officers elected by the board of directors of the Company.

       (b)    ISOs may be granted to employees of the Company as the Committee
shall select from time to time.

       (c)    NSOs may be granted to employees, consultants and others who
render services to the Company as the Committee shall select from time to time.

6.     OPTION PRICE.

       (a)    The price or prices per share of Common Stock to be sold pursuant
to an Option (the "Exercise Price") shall be such as shall be fixed by the
Committee but shall in any case not be less than:

                     (I)    the fair market value per share for such Common
                     Stock on the date of grant in the case of ISOs other than
                     to a 10% Shareholder, and

                     (ii)   110% of the fair market value per share for such
                     Common Stock on the date of grant in the case of ISOs to a
                     10% Shareholder.

       (b)    A "10% Shareholder" means an individual who within the meaning of
Section 422(b)(6) of the Code owns stock possessing more than 10 percent of the
total combined voting power to all classes of stock of the Company or of its
parent or any subsidiary corporation.

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7.     PERIOD OF OPTION VESTING.

       (a)    The Committee shall determine for each Option the period during
which such Option shall be exercisable in whole or in part, PROVIDED, HOWEVER,
that an ISO shall not be exercisable after the expiration of ten years from the
date of grant of such ISO and PROVIDED FURTHER that an ISO granted to a 10%
Shareholder shall not be exercisable after the expiration of five years from the
date of grant of such ISO.

       (b)    SPECIAL RULE FOR ISOS. The aggregate fair market value (determined
at the time the ISO is granted and ISOs will be taken into account in the order
in which they were granted) of the stock with respect to which ISOs are
exercisable for the first time by an Optionee (as defined below) during any
calendar year (under all such plans of the Company, its parent or subsidiaries)
shall not exceed $100,000, and any excess shall be considered an NSO.

8.     EFFECT OF TERMINATION OF EMPLOYMENT.

       (a)    The Committee shall determine for each Option the extent, if any,
to which such Option shall be exercisable in the event of the termination of the
person to whom such Option was granted ("Optionee") from employment with or
rendering of other services to the Company.

       (b)    However, any such Option which is an ISO shall in all events lapse
unless exercised by the Optionee:

                     (i)    prior to the 89th day after the date on which
                     employment terminated, if termination was other than by
                     reason of death; and

                     (ii)   within the twelve-month period next succeeding the
                     death of the Optionee, if termination is by reason of
                     death.

       (c)    The Committee shall have the right, at any time, and from time to
time, with the consent of the Optionee, to modify the lapse date of an Option
and to convert an ISO into an NSO to the extent that such modification in lapse
date increases the life of the ISO beyond the dates set forth above or beyond
dates otherwise permissible for an ISO.

9.     PAYMENT FOR SHARES OF COMMON STOCK. Upon exercise of an Option, the
Optionee shall make full payment of the Option Price in cash, or, with the
consent of the Committee and to the extent permitted by it:

       (a)    with Common Stock of the Company valued at fair market value on
date of exercise, but only if held by the Optionee for a period of time
sufficient to prevent a pyramid exercise that would create a charge to the
Company's earnings;

       (b)    with a full recourse interest bearing promissory note of the
Optionee, secured by a pledge of the shares of Common Stock received upon
exercise of such Option, and having such other terms and conditions as
determined by the Committee;

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       (c)    by delivering a properly executed exercise notice together with
irrevocable instructions to a broker to sell shares acquired upon exercise of
the Option and promptly to deliver to the Company a portion of the proceeds
thereof equal to the exercise price; or

       (d)    any combination of any of the foregoing.

10.    OPTION EXERCISES. Options shall be exercised by submitting to the Company
a signed copy of notice of exercise in a form to be supplied by the Company. The
exercise of an Option shall be effective on the date on which the Company
receives such notice at its principal corporate offices. The Company may cancel
such exercise in the event that payment is not effected in full, subject to the
other terms of this Plan.

11.    LIMITED TRANSFERABILITY OF OPTION. No Option shall be assignable or
transferable by the Optionee to whom it is granted, other than by will or laws
of descent and distribution, except that, upon approval by the Committee, the
Optionee may transfer an Option that is not intended to constitute an ISO (a)
pursuant to a qualified domestic relations order as defined for purposes of the
Employee Retirement Income Security Act of 1974, as amended, or (b) by gift: to
a member of the "Family" (as defined below) of the Optionee, to or for the
benefit of one or more organizations qualifying under Code Sec. 501(c)(3) and
170(c)(2) (a "Charitable Organization") or to a trust for the exclusive benefit
of the Optionee, one or more members of the Optionee's Family, one or more
Charitable Organizations, or any combination of the foregoing, provided that any
such transferee shall enter into a written agreement to be bound by the terms of
this Plan and the option agreement. For this purpose, "Family" shall mean the
ancestors, spouse, siblings, spouses of siblings, lineal descendants and spouses
of lineal descendants of the Optionee. During the lifetime of an Optionee to
whom an ISO is granted, only such Optionee (or, in the event of legal incapacity
or incompetence, the Optionee's guardian or legal representative) may exercise
the ISO.

12.    OTHER PLAN TERMS.

       (a)    The Committee may grant more than one Option to an individual,
and, subject to the requirements of Section 422 of the Code with respect to
ISOs, such Option may be in addition to, in tandem with, or in substitution for,
Options previously granted under the Plan or of another corporation and assumed
by the Company.

       (b)    The Committee may permit the voluntary surrender of all or a
portion of any Option granted under the Plan or otherwise to be conditioned upon
the granting to the employee of a new Option for the same or a different number
of shares of Common Stock as the Option surrendered, or may require such
voluntary surrender as a condition precedent to a grant of a new Option to such
employee. Such new Option shall be exercisable at the price, during the period,
and in accordance with any other terms or conditions specified by the Committee
at the time the new Option is granted, all determined in accordance with the
provisions of the Plan without regard to the price, period of exercise, or any
other terms or conditions of the Option surrendered.

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<PAGE>

       (c)    Options under the Plan may be granted at any time after the Plan
has been approved by the shareholders of the Company. However, no Option shall
be granted under the Plan after October 16, 2011.

       (d)    In the event of a reorganization, recapitalization, liquidation,
stock split, stock dividend, combination of shares, merger or consolidation, or
the sale, conveyance, lease or other transfer by the Company of all or
substantially all of its property, or any change in the corporate structure or
shares of common stock of the Company, pursuant to any of which events the then
outstanding shares of the common stock are split up or combined or changed into,
become exchangeable at the holder's election for, or entitle the holder thereof
to other shares of common stock, or in the case of any other transaction
described in Section 424(a) of the Code, the Committee may change the number and
kind of shares of Common Stock available under the Plan and any outstanding
Option (including substitution of shares of common stock of another corporation)
and the price of any Option and the fair market value determined under this Plan
in such manner as it shall deem equitable in its sole discretion.

       (e)    An Optionee or a legal representative thereof shall have none of
the rights of a stockholder with respect to shares of Common Stock subject to
Options until such shares shall be issued or transferred upon exercise of the
Option.

       (f)    The Company shall effect the grant of Options under the Plan, in
accordance with determinations made by the Committee, by execution of
instruments in writing in a form approved by the Committee. Each Option shall
contain such terms and conditions (which need not be the same for all Options,
whether granted at the time or at different times) as the Committee shall deem
to be appropriate and not inconsistent with the provisions of the Plan, and such
terms and conditions shall be agreed to in writing by the Optionee.

13.    CERTAIN DEFINITIONS.

       (a)    FAIR MARKET VALUE. As used in the Plan, the term "fair market
value" shall mean as of any date:

                     (i)    if the Common Stock is not traded on any
                     over-the-counter market or on a national securities
                     exchange, the value determined by the Committee using the
                     best available facts and circumstances;

                     (ii)   if the Common Stock is traded in the
                     over-the-counter market, based on most recent closing
                     prices for the Common Stock on the date the calculation
                     thereof shall be made; or

                     (iii)  if the Common Stock is listed on a national
                     securities exchange, based on the most recent closing
                     prices for the Common Stock of the Company on such
                     exchange.

       (b)    SUBSIDIARY AND PARENT. The terms "subsidiary" and "parent" as used
in the Plan shall have the respective meanings set forth in Sections 424(f) and
(e) of the Code.

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14.    NOT AN EMPLOYMENT CONTRACT. Nothing in the Plan or in any Option or stock
option agreement shall confer on any Optionee any right to continue in the
service of the Company or any parent or subsidiary of the Company or interfere
with the right of the Company to terminate such Optionee's employment or other
services at any time.

15.    WITHHOLDING TAXES.

       (a)    Whenever the Company proposes or is required to issue or transfer
shares of Common Stock under the Plan, the Company shall have the right to
require the Optionee to remit to the Company an amount sufficient to satisfy any
federal, state and/or local withholding tax requirements prior to the delivery
of any certificate or certificates for such shares. Alternatively, the Company
may, in its sole discretion from time to time, issue or transfer such shares of
Common Stock net of the number of shares sufficient to satisfy the withholding
tax requirements. For withholding tax purposes, the shares of Common Stock shall
be valued on the date the withholding obligation is incurred.

       (b)    In the case of shares of Common Stock that an Optionee receives
pursuant to his exercise of an Option which is an ISO, if such Optionee disposes
of such shares of Common Stock within two years from the date of the granting of
the ISO or within one year after the transfer of such shares of Common Stock to
him, the Company shall have the right to withhold from any salary, wages, or
other compensation for services payable by the Company to such Optionee, amounts
sufficient to satisfy any withholding tax obligation attributable to such
disposition.

       (c)    In the case of a disposition described in paragraph (b), the
Optionee shall give written notice to the Company of such disposition within 30
days following the disposition, which notice shall include such information as
the Company may reasonably request to effectuate the provisions hereof.

16.    AGREEMENTS AND REPRESENTATIONS OF OPTIONEES. As a condition to the
exercise of an Option, unless counsel to the Company opines that it is not
necessary under the Securities Act of 1933, as amended (the "Securities Act"),
and the pertinent rules thereunder, as the same are then in effect, the Optionee
shall represent in writing that the shares of Common Stock being purchased are
being purchased only for investment and without any present intent at the time
of the acquisition of such shares of Common Stock to sell or otherwise dispose
of the same.

17.    AMENDMENT AND DISCONTINUANCE OF THE PLAN. The Board may at any time
alter, suspend or terminate the Plan, but no change shall be made which will
have a materially adverse effect upon any Option previously granted, unless the
consent of the Optionee is obtained; PROVIDED, HOWEVER, that the Board may not
without approval of the shareholders, add directors and officers elected by the
board of directors as persons eligible to receive Options.

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18.    OTHER CONDITIONS.

       (a)    If at any time counsel to the Company shall be of the opinion that
any sale or delivery of shares of Common Stock pursuant to an Option granted
under the Plan is or may in the circumstances be unlawful under the statutes,
rules or regulations of any applicable jurisdiction, the Company shall have no
obligation to make such sale or delivery, and the Company shall not be required
to make any application or to effect or to maintain any qualification or
registration under the Securities Act or otherwise with respect to shares of
Common Stock or Options under the Plan, and the right to exercise any such
Option may be suspended until, in the opinion of said counsel, such sale or
delivery shall be lawful.

       (b)    At the time of any grant or exercise of any Option, the Company
may, if it shall deem it necessary or desirable for any reason connected with
any law or regulation of any governmental authority relative to the regulation
of securities, condition the grant and/or exercise of such Option upon the
Optionee making certain representations to the Company and the satisfaction of
the Company with the correctness of such representations.

19.    EFFECTIVE DATE; GOVERNING LAW. This Plan shall is effective October 17,
2001. This Plan shall be interpreted in accordance with the internal laws of the
State of New York.

Adopted 10/17/01

                                       7Exhibit 10.71

                               NUTRITION 21, INC.
                        2002 INDUCEMENT STOCK OPTION PLAN

       There is hereby established a 2002 Inducement Stock Option Plan (the
"Plan"). The Plan provides for the grant of options ("Options") to purchase
shares of Nutrition 21, Inc. (the "Company") common stock ("Common Stock") to
induce an individual to become an employee of the Company or its subsidiaries.

1.     PURPOSE. The purpose of the Plan is to provide an incentive to induce an
individual to become an employee of the Company, and contribute to the conduct
and direction of its business, operations and affairs. It is intended that
Options granted under the Plan strengthen the desire of such persons to join and
remain in the employ of the Company and stimulate their efforts on behalf of the
Company.

2.     THE STOCK. The aggregate number of shares of Common Stock which may be
subject to Options shall not exceed 2,500,000. Such shares may be either
authorized and unissued shares, or treasury shares. If any Option granted under
the Plan shall expire, terminate or be canceled for any reason without having
been exercised in full, the corresponding number of unpurchased shares shall
again be available for the purposes of the Plan. The preceding sentence shall
apply only for purposes of determining the aggregate number of shares of Common
Stock subject to options under the Plan, but shall not apply for purposes of
determining the maximum number of shares of Common Stock with respect to which
Options may be granted to any person participating in the Plan.

3.     ADMINISTRATION OF THE PLAN.

       (a)    The Plan shall be administered by the Board of Directors of the
Company (the "Board") or a committee or committees (the "Committee") which shall
be appointed by the Board from among its members. With regard to options to be
granted to a newly hired officer, the Committee shall be comprised solely of not
less than two members, the majority of whom shall be (i) "Non-Employee
Directors" within the meaning of Rule 16b-3(b)(3) (or any successor rule)
promulgated under the Securities Exchange Act of 1934, as amended, and (ii)
unless otherwise determined by the Board, "outside directors" within the meaning
of Treasury Regulation Section 1.162-27(e)(3) under Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"). Subject to the express
provisions of the Plan, the Committee shall have authority, in its discretion,
to determine the individuals to receive Options, the times when they shall
receive them and the number of shares of Common Stock to be subject to each
Option, and other terms relating to the grant of Options.

       (b)    Subject to the express provisions of the Plan, the Committee shall
have authority 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
need not be identical) and, as specified in this Plan, the fair market value of
the Common Stock, and to make all other determinations necessary or advisable
for

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administering the Plan. The Committee 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 it into effect,
and it shall be the sole and final judge of such expediency. The determinations
of the Committee on the matters referred to in this Section 3 shall be
conclusive.

       (c)    The Committee may, in its sole discretion, and subject to such
terms and conditions as it may adopt, accelerate the date or dates on which some
or all outstanding Options may be exercised.

       (d)    The Committee may require that any Option Shares issued be
legended as necessary to comply with applicable federal and state securities
laws.

4.     TYPES OF OPTIONS. Options granted under the Plan shall be in the form of
(i) incentive stock options ("ISOs"), as defined in Section 422 of the Code, or
(ii) non-statutory options which do not qualify under such Section ("NSOs"), or
both, in the discretion of the Committee. The status of each Option shall be
identified in the option agreement, or if not identified, the status of each
Option shall be an ISO to the extent permitted by law.

5.     ELIGIBILITY.

       (a)    ISOs may be granted to an employee of the Company.

       (b)    NSOs may be granted to an employee of the Company.

6.     OPTION PRICE.

       (a)    The price or prices per share of Common Stock to be sold pursuant
to an Option (the "Exercise Price") shall be such as shall be fixed by the
Committee but shall in any case not be less than:

                     (I)    the fair market value per share for such Common
                     Stock on the date of grant in the case of ISOs other than
                     to a 10% Shareholder, and

                     (ii)   110% of the fair market value per share for such
                     Common Stock on the date of grant in the case of ISOs to a
                     10% Shareholder.

       (b)    A "10% Shareholder" means an individual who within the meaning of
Section 422(b)(6) of the Code owns stock possessing more than 10 percent of the
total combined voting power to all classes of stock of the Company or of its
parent or any subsidiary corporation.

7.     PERIOD OF OPTION VESTING.

       (a)    The Committee shall determine for each Option the period during
which such Option shall be exercisable in whole or in part, PROVIDED, HOWEVER,
that an ISO shall not be exercisable after the expiration of ten years from the
date of grant of such ISO and PROVIDED

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FURTHER that an ISO granted to a 10% Shareholder shall not be exercisable after
the expiration of five years from the date of grant of such ISO.

       (b)    SPECIAL RULE FOR ISOS. The aggregate fair market value (determined
at the time the ISO is granted and ISOs will be taken into account in the order
in which they were granted) of the stock with respect to which ISOs are
exercisable for the first time by an Optionee (as defined below) during any
calendar year (under all such plans of the Company, its parent or subsidiaries)
shall not exceed $100,000, and any excess shall be considered an NSO.

8.     EFFECT OF TERMINATION OF EMPLOYMENT.

       (a)    The Committee shall determine for each Option the extent, if any,
to which such Option shall be exercisable in the event of the termination of the
person to whom such Option was granted ("Optionee") from employment.

       (b)    However, any such Option which is an ISO shall in all events lapse
unless exercised by the Optionee:

                     (i)    prior to the 89th day after the date on which
                     employment terminated, if termination was other than by
                     reason of death; and

                     (ii)   within the twelve-month period next succeeding the
                     death of the Optionee, if termination is by reason of
                     death.

       (c)    The Committee shall have the right, at any time, and from time to
time, with the consent of the Optionee, to modify the lapse date of an Option
and to convert an ISO into an NSO to the extent that such modification in lapse
date increases the life of the ISO beyond the dates set forth above.

9.     PAYMENT FOR SHARES OF COMMON STOCK. Upon exercise of an Option, the
Optionee shall make full payment of the Option Price in cash, or, with the
consent of the Committee and to the extent permitted by it:

       (a)    with Common Stock of the Company valued at fair market value on
date of exercise, but only if held by the Optionee for a period of time
sufficient to prevent a pyramid exercise that would create a charge to the
Company's earnings;

       (b)    by delivering a properly executed exercise notice together with
irrevocable instructions to a broker to sell shares acquired upon exercise of
the Option and promptly to deliver to the Company a portion of the proceeds
thereof equal to the exercise price; or

       (c)    any combination of any of the foregoing.

10.    OPTION EXERCISES. Options shall be exercised by submitting to the Company
a signed copy of notice of exercise in a form to be supplied by the Company. The
exercise of an Option shall be effective on the date on which the Company
receives such notice at its principal

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corporate offices. The Company may cancel such exercise in the event that
payment is not effected in full, subject to the other terms of this Plan.

11.    LIMITED TRANSFERABILITY OF OPTION. No Option shall be assignable or
transferable by the Optionee to whom it is granted, other than by will or laws
of descent and distribution, except that, upon approval by the Committee, the
Optionee may transfer an Option that is not intended to constitute an ISO (a)
pursuant to a qualified domestic relations order as defined for purposes of the
Employee Retirement Income Security Act of 1974, as amended, or (b) by gift: to
a member of the "Family" (as defined below) of the Optionee, to or for the
benefit of one or more organizations qualifying under Code Sec. 501(c)(3) and
170(c)(2) (a "Charitable Organization") or to a trust for the exclusive benefit
of the Optionee, one or more members of the Optionee's Family, one or more
Charitable Organizations, or any combination of the foregoing, provided that any
such transferee shall enter into a written agreement to be bound by the terms of
this Plan and the option agreement. For this purpose, "Family" shall mean the
ancestors, spouse, siblings, spouses of siblings, lineal descendants and spouses
of lineal descendants of the Optionee. During the lifetime of an Optionee to
whom an ISO is granted, only such Optionee (or, in the event of legal incapacity
or incompetence, the Optionee's guardian or legal representative) may exercise
the ISO.

12.    OTHER PLAN TERMS.

       (a)    The Committee may grant more than one Option to an individual,
and, subject to the requirements of Section 422 of the Code with respect to
ISOs, such Option may be in addition to, in tandem with, or in substitution for,
Options previously granted under the Plan or of another corporation and assumed
by the Company.

       (b)    The Committee may permit the voluntary surrender of all or a
portion of any Option granted under the Plan or otherwise to be conditioned upon
the granting to the employee of a new Option for the same or a different number
of shares of Common Stock as the Option surrendered, or may require such
voluntary surrender as a condition precedent to a grant of a new Option to such
employee. Such new Option shall be exercisable at the price, during the period,
and in accordance with any other terms or conditions specified by the Committee
at the time the new Option is granted, all determined in accordance with the
provisions of the Plan without regard to the price, period of exercise, or any
other terms or conditions of the Option surrendered.

       (c)    Options under the Plan may be granted at any time after the Plan
has been approved by the shareholders of the Company. However, no Option shall
be granted under the Plan after July 24, 2012.

       (d)    In the event of a reorganization, recapitalization, liquidation,
stock split, stock dividend, combination of shares, merger or consolidation, or
the sale, conveyance, lease or other transfer by the Company of all or
substantially all of its property, or any change in the corporate structure or
shares of common stock of the Company, pursuant to any of which events the then
outstanding shares of the common stock are split up or combined or changed into,
become exchangeable at the holder's election for, or entitle the holder thereof
to other shares of common

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stock, or in the case of any other transaction described in Section 424(a) of
the Code, the Committee may change the number and kind of shares of Common Stock
available under the Plan and any outstanding Option (including substitution of
shares of common stock of another corporation) and the price of any Option and
the fair market value determined under this Plan in such manner as it shall deem
equitable in its sole discretion.

       (e)    An Optionee or a legal representative thereof shall have none of
the rights of a stockholder with respect to shares of Common Stock subject to
Options until such shares shall be issued or transferred upon exercise of the
Option.

       (f)    The Company shall effect the grant of Options under the Plan, in
accordance with determinations made by the Committee, by execution of
instruments in writing in a form approved by the Committee. Each Option shall
contain such terms and conditions (which need not be the same for all Options,
whether granted at the time or at different times) as the Committee shall deem
to be appropriate and not inconsistent with the provisions of the Plan, and such
terms and conditions shall be agreed to in writing by the Optionee.

13.    CERTAIN DEFINITIONS.

       (a)    FAIR MARKET VALUE. As used in the Plan, the term "fair market
value" shall mean as of any date:

                     (i)    if the Common Stock is not traded on any
                     over-the-counter market or on a national securities
                     exchange, the value determined by the Committee using the
                     best available facts and circumstances;

                     (ii)   if the Common Stock is traded in the
                     over-the-counter market, based on most recent closing
                     prices for the Common Stock on the date the calculation
                     thereof shall be made; or

                     (iii)  if the Common Stock is listed on a national
                     securities exchange, based on the most recent closing
                     prices for the Common Stock of the Company on such
                     exchange.

       (b)    SUBSIDIARY AND PARENT. The terms "subsidiary" and "parent" as used
in the Plan shall have the respective meanings set forth in Sections 424(f) and
(e) of the Code.

14.    NOT AN EMPLOYMENT CONTRACT. Nothing in the Plan or in any Option or stock
option agreement shall confer on any Optionee any right to continue in the
service of the Company or any parent or subsidiary of the Company or interfere
with the right of the Company to terminate such Optionee's employment or other
services at any time.

15.    WITHHOLDING TAXES.

       (a)    Whenever the Company proposes or is required to issue or transfer
shares of Common Stock under the Plan, the Company shall have the right to
require the Optionee to remit

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<PAGE>

to the Company an amount sufficient to satisfy any federal, state and/or local
withholding tax requirements prior to the delivery of any certificate or
certificates for such shares. Alternatively, the Company may, in its sole
discretion from time to time, issue or transfer such shares of Common Stock net
of the number of shares sufficient to satisfy the withholding tax requirements.
For withholding tax purposes, the shares of Common Stock shall be valued on the
date the withholding obligation is incurred.

       (b)    In the case of shares of Common Stock that an Optionee receives
pursuant to his exercise of an Option which is an ISO, if such Optionee disposes
of such shares of Common Stock within two years from the date of the granting of
the ISO or within one year after the transfer of such shares of Common Stock to
him, the Company shall have the right to withhold from any salary, wages, or
other compensation for services payable by the Company to such Optionee, amounts
sufficient to satisfy any withholding tax obligation attributable to such
disposition.

       (c)    In the case of a disposition described in paragraph (b), the
Optionee shall give written notice to the Company of such disposition within 30
days following the disposition, which notice shall include such information as
the Company may reasonably request to effectuate the provisions hereof.

16.    AGREEMENTS AND REPRESENTATIONS OF OPTIONEES. As a condition to the
exercise of an Option, unless counsel to the Company opines that it is not
necessary under the Securities Act of 1933, as amended (the "Securities Act"),
and the pertinent rules thereunder, as the same are then in effect, the Optionee
shall represent in writing that the shares of Common Stock being purchased are
being purchased only for investment and without any present intent at the time
of the acquisition of such shares of Common Stock to sell or otherwise dispose
of the same.

17.    AMENDMENT AND DISCONTINUANCE OF THE PLAN. The Board may at any time
alter, suspend or terminate the Plan, but no change shall be made which will
have a materially adverse effect upon any Option previously granted, unless the
consent of the Optionee is obtained.

18.    OTHER CONDITIONS.

       (a)    If at any time counsel to the Company shall be of the opinion that
any sale or delivery of shares of Common Stock pursuant to an Option granted
under the Plan is or may in the circumstances be unlawful under the statutes,
rules or regulations of any applicable jurisdiction, the Company shall have no
obligation to make such sale or delivery, and the Company shall not be required
to make any application or to effect or to maintain any qualification or
registration under the Securities Act or otherwise with respect to shares of
Common Stock or Options under the Plan, and the right to exercise any such
Option may be suspended until, in the opinion of said counsel, such sale or
delivery shall be lawful.

       (b)    At the time of any grant or exercise of any Option, the Company
may, if it shall deem it necessary or desirable for any reason connected with
any law or regulation of any governmental authority relative to the regulation
of securities, condition the grant and/or exercise

                                       6
<PAGE>

of such Option upon the Optionee making certain representations to the Company
and the satisfaction of the Company with the correctness of such
representations.

19.    APPROVAL; EFFECTIVE DATE; GOVERNING LAW. This Plan shall become effective
upon the approval by the stockholders of the Company at an annual meeting or any
special meeting of the stockholders of the Company. This Plan shall be
interpreted in accordance with the internal laws of the State of New York.

ADOPTED AUGUST 2, 2002

                                       7

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