Document:

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                                                                     Exhibit 4.4

NEITHER THIS WARRANT NOR ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE HEREOF
HAVE BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN SO REGISTERED AND QUALIFIED OR
EVIDENCE IS FURNISHED TO THE COMPANY TO THE EFFECT THAT REGISTRATION AND
QUALIFICATION IS NOT REQUIRED.

                           THIRD AMENDED AND RESTATED
                        PREFERRED STOCK PURCHASE WARRANT

                                                    Englewood Cliffs, New Jersey
                                                          As of November 4, 2002
NO. P-___

      EpiCept Corporation, a Delaware corporation (the "Company"), hereby
certifies that, subject to the terms and conditions set forth herein, [NAME OF
HOLDER] (the "Holder"), is entitled to purchase the Warrant Share Number of
shares of Warrant Stock (both as defined below) from the Company at any time or
from time to time before the earliest of (i) the first business day following
the date of the consummation of an IPO (as defined below), (ii) 5:00 p.m. (New
Jersey time) on November 4, 2012 and (iii) the effective time of a Sale of the
Company (as defined below), for the Exercise Price (as defined below), subject
to adjustments as set forth in Sections 5 and 7.

      This Third Amended and Restated Preferred Stock Purchase Warrant (this
"Warrant") is being issued in connection with the purchase by the Holder of a
Convertible Term Note (as amended and/or restated, the "Note") of the Company in
the Maximum Principal Amount (as defined in the Note) set forth on the signature
page hereto (the "Maximum Note Principal"). The Note is one of a series of notes
issued to certain investors in the aggregate maximum principal amount of
$5,000,000 (collectively, the "Convertible Notes") and this Warrant is one of a
series of related Third Amended and Restated Preferred Stock Purchase Warrants
(collectively, the "Warrants") issued in connection with the issuance of the
Convertible Notes.

      1. Determination of Warrant Stock, Warrant Share Number and Warrant
Exercise Price.

            (a) Warrant Stock.

            (i) If the Company consummates a Qualifying Financing (as defined in
the Note), then (A) the term "Warrant Stock" shall mean shares of the new series
of convertible preferred stock of the Company ("Next Round Preferred Stock")
which is authorized and issued by the Company in connection with the Qualifying
Financing, and (B) in connection with the Qualifying Financing, the Certificate
of Incorporation (as defined below) shall be amended to authorize the Next Round
Preferred Stock issuable upon exercise of this Warrant and the shares
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of the Company's common stock, $0.0001 par value per share ("Common Stock")
issuable upon conversion of such Next Round Preferred Stock.

            (ii) Upon an Optional Conversion Election (as defined in the Note),
the Company shall use its best efforts to ensure that the Certificate of
Incorporation is amended promptly to authorize the Optional Conversion Preferred
Stock (as defined in the Note) issuable upon conversion of the Convertible Notes
and exercise of the Warrants and the Common Stock issuable upon conversion of
such shares of Optional Conversion Preferred Stock, and upon the conversion of
the Note into Optional Conversion Preferred Stock, the term "Warrant Stock"
shall mean shares of the Optional Conversion Preferred Stock.

            (iii) If a Sale of the Company (as defined below) is anticipated to
occur prior to a Qualifying Financing or the conversion of the Note into
Optional Conversion Preferred Stock, the term "Warrant Stock" shall mean shares
of the Company's Common Stock, unless and until a Qualifying Financing occurs or
the Note is converted into Optional Conversion Preferred Stock prior to the Sale
of the Company. If neither a Qualifying Financing nor the conversion of the Note
into Optional Conversion Preferred Stock occurs prior to the payment or
prepayment of the entire principal amount of the Note and all accrued and unpaid
interest thereon, the term "Warrant Stock" shall mean shares of the Company's
Common Stock. If neither a Qualifying Financing nor an Optional Conversion
Election occurs or if a Sale of the Company is anticipated, the Company shall
use its best efforts to ensure that the Certificate of Incorporation is amended
promptly to authorize the shares of Common Stock that might become issuable upon
exercise of the Warrants.

            (b) Warrant Share Number. This Warrant shall be exercisable for a
number of shares of Warrant Stock (the "Warrant Share Number") as follows:

            (i) If the Warrant Stock is Next Round Preferred Stock, the Warrant
Share Number shall equal 50% of the greatest principal amount that has at any
time been outstanding under the Note (the "Greatest Outstanding Amount") divided
by the Exercise Price described in Section 1(c)(i) below, such Warrant Share
Number to be rounded to the nearest whole number.

            (ii) If the Warrant Stock is Optional Conversion Preferred Stock,
the Warrant Share Number shall equal 50% of the Greatest Outstanding Amount
divided by the Exercise Price described in Section 1(c)(ii) below, such Warrant
Share Number to be rounded to the nearest whole number.

            (iii) Subject to Section 1(b)(iv) below, if the Warrant Stock is
Common Stock, the Warrant Share Number shall equal 50% of the Greatest
Outstanding Amount divided by the Exercise Price described in Section 1(c)(iii)
below, such Warrant Share Number to be rounded to the nearest whole number.

            (iv) During the IPO Period, if the Warrant Stock is Common Stock,
the Warrant Share Number shall equal 50% of the Greatest Outstanding Amount
divided by the Exercise Price described in Section 1(c)(iv) below, such Warrant
Share Number to be rounded to the nearest whole number.

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            (c) Exercise Price. The exercise price per share of Warrant Stock
(the "Exercise Price") shall be as follows:

            (i) If the Warrant Stock is Next Round Preferred Stock, the Exercise
Price shall be the amount per share at which the Convertible Notes are converted
into Next Round Preferred Stock pursuant to the terms of the Note.

            (ii) If the Warrant Stock is Optional Conversion Preferred Stock,
the Exercise Price shall be the amount per share at which the Convertible Notes
are converted into Optional Conversion Preferred Stock pursuant to the terms of
the Note.

            (iii) Subject to Section 1(c)(iv) below, if the Warrant Stock is
Common Stock, the Exercise Price shall be $0.10.

            (iv) During the IPO Period, if the Warrant Stock is Common Stock,
the Exercise Price shall be $0.157.

            (d) IPO Period. For purposes of this Section 1, the following terms
shall have the following meanings:

            (i) "IPO" shall mean a Qualified Public Offering, as such term is
defined in the Certificate of Incorporation (as defined in Section 6 below).

            (ii) "IPO Period" shall mean, with respect to any proposed IPO, that
period commencing on the IPO Consideration Date and expiring on the earlier of
(i) the 1st business day following the date of the consummation of an IPO and
(ii) the IPO Termination Date.

            (iii) "IPO Consideration Date" shall mean the date upon which the
Company's Board of Directors or a committee thereof selects a lead managing
underwriter or underwriters for a proposed IPO.

            (iv) "IPO Termination Date" shall mean, with respect to any proposed
IPO, the earlier of (i) the Company's withdrawal of a S-1 Registration Statement
for such proposed IPO that was previously filed with the Securities Exchange
Commission and (ii) the determination, by the Board of Directors of the Company,
to abandon such proposed IPO.

      2. Exercise of Warrant.

            (a) Mechanics of Exercise. This Warrant may be exercised by the
registered holder hereof by surrender to the Company of this Warrant, with the
attached form of subscription agreement duly executed by such holder,
accompanied by payment equal to the aggregate purchase price for the securities
for which this Warrant is then being exercised according to Section 4 hereof.

            (b) Warrant Agent. In the event that a bank or trust company is
appointed as trustee for the holder of this Warrant pursuant to Section 5(b)
hereof, such bank or trust company will have all the powers and duties of a
warrant agent appointed pursuant to Section 10 hereof and will accept, in its
own name for the account of the Company or such successor entity as may

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be entitled thereto, all amounts otherwise payable to the Company or such
successor, as the case may be, upon exercise of this Warrant.

            (c) Expiration. This Warrant and the holder's rights hereunder will
expire on the earliest of (a) the first business day following the date of the
consummation of an IPO, (b) 5:00 P.M. (New Jersey time) on November 4, 2012 or
(c) the effective time of a Sale of the Company, provided, that (i) the Company
shall provide the Holder with at least twenty (20) days advance notice of any
anticipated Sale of the Company and (ii) the Holder shall be permitted to
exercise this Warrant contingent upon the effectiveness of such Sale of the
Company. If the Warrant Stock is Next Round Preferred Stock or Optional
Conversion Preferred Stock, then upon and after the Automatic Conversion
Effective Time (as defined in Section 7), the right to purchase shares of
Warrant Stock granted herein shall terminate, and this Warrant shall represent
the right to purchase shares of Common Stock, as provided in Section 7 hereof.
For purposes hereof, a "Sale of the Company" means (a) a merger, consolidation,
share exchange or other form of corporate reorganization involving the Company
in which the stockholders of the Company immediately before such merger,
consolidation, share exchange or other corporate reorganization dispose of in
excess of fifty percent (50%) of the issued and outstanding capital stock of the
Company; (b) any transaction or series of related transactions in which (i) all
or substantially all of the assets of the Company are sold, or (ii) in excess of
fifty percent (50%) of the shares of Common Stock (assuming conversion of all
convertible securities) is issued transferred to any person (other than in a
Qualifying Financing); or (c) any event that would trigger payments to the
holders of any series of the Preferred Stock under Section 1(c) of Article
FOURTH of the Current Charter in the absence of the prescribed vote of the
holders of such series to the contrary.

            (d) Delivery of Certificates. As soon as is practicable after any
exercise of this Warrant, the Company, at its own expense, will deliver to the
registered holder hereof one or more certificates representing the securities to
which such holder is entitled in respect of such exercise, together, in the case
of any partial exercise, with a new Warrant representing the unexercised portion
hereof.

            (e) Fractional Shares. In the event that any exercise of this
Warrant would, but for the provisions of this Section 2(e), result in the
issuance of any fractional share of capital stock, then in lieu of such
fractional share the registered holder hereof will be entitled to cash equal to
the fair market value of such fractional share, as determined in good faith by
the Company's Board of Directors (with the agreement of at least one of the
directors designated by TVM Techno Venture Enterprises No. III Limited
Partnership ("TVM") or Merlin General Partner II Limited as general partner of
the Merlin Biosciences Fund L.P. and as managing partner of the Merlin
Biosciences Fund GbR ("Merlin"), provided, that designees of TVM and Merlin are
directors at such time).

      4. Payment of Exercise Price. The Exercise Price may be paid at the
holder's election either (a) by cash, certified or official bank check payable
to the order of the Company, or wire transfer to its account, or (b) by the net
issuance method as described below:

            (i) If the Warrant Stock is Next Round Preferred Stock or Optional
Conversion Preferred Stock, then prior to the Automatic Conversion Effective
Time (as defined

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in Section 7 hereof), the Company shall issue Warrant Stock under the net
issuance method in accordance with the following formula:

                 X  =  (Y)(A-B)/A

         Where:  X  =  the number of shares of Warrant Stock to be issued to the
                       holder

                 Y  =  the number of shares of Warrant Stock requested to be
                       exercised under this Warrant

                 A  =  the current fair market value of one (1) share of Warrant
                       Stock

                 B  =  the Exercise Price

      As used herein, the current fair market value of a share of Warrant Stock
shall mean the price per share which the Company could obtain from a willing
buyer (not a current employee or director) for shares of Warrant Stock, as
determined in good faith by the Company's Board of Directors (with the agreement
of at least one of the directors designated by TVM or Merlin, provided, that
designees of TVM and Merlin are directors at such time), unless the Company
shall become subject to a merger, consolidation or other acquisition pursuant to
which the holders of Warrant Stock receive securities and/or other property in
exchange for their Warrant Stock, in which case the fair market value of Warrant
Stock shall be deemed to be the value (determined in good faith by the Company's
Board of Directors (with the agreement of at least one of the directors
designated by TVM or Merlin, provided, that designees of TVM and Merlin are
directors at such time)) of the securities and other property received by the
holders of the Company's Warrant Stock per share of Warrant Stock pursuant to
such merger, consolidation or other acquisition.

            (ii) If the Warrant Stock is Common Stock, or if this Warrant is
exercised either upon or after the Automatic Conversion Effective Time, the
Company shall issue Common Stock under the net issuance method in accordance
with the following formula:

                 X  =  (Y)(A-B)/A

         Where:  X  =  the number of shares of Common Stock to be issued to the
                       holder

                 Y  =  the number of shares of Common Stock requested to be
                       exercised under this Warrant

                 A  =  the current fair market value of one (1) share of Common
                       Stock

                 B  =  the Exercise Price

      As used herein, current fair market value of Common Stock shall mean with
respect to each share of Common Stock:

            (A) if the exercise is in connection with the Company's initial
public offering of Common Stock, and if the Company's registration statement
relating to such public

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offering has been declared effective by the Securities and Exchange Commission,
then the initial "Price to Public" specified in the final prospectus with
respect to the offering;

                  (B) if this Warrant is exercised after, and not in connection
with, the Company's initial public offering of Common Stock and

                        (1) if the Common Stock is traded on a national
securities exchange or quoted on the Nasdaq Stock Market, the fair market value
shall be deemed to be the average of the closing prices over a twenty-one (21)
day period ending three days before the day the current fair market value of the
Common Stock is being determined; or

                        (2) if the Common Stock is not listed on a national
securities exchange or quoted on the Nasdaq Stock Market but is actively traded
over-the-counter, the fair market value shall be deemed to be the average of the
closing bid and asked prices reported by the National Quotation Bureau (or
similar system) over the twenty-one (21) day period ending three days before the
day the current fair market value of the Common Stock is being determined;

                  (C) if at any time the Common Stock is not listed on any
national securities exchange or quoted on the Nasdaq Stock Market or actively
traded in the over-the-counter market, the current fair market value of Common
Stock shall be the price per share which the Company could obtain from a willing
buyer (not a current employee or director) for shares of Common Stock sold by
the Company, from authorized but unissued shares, as determined in good faith by
its Board of Directors, unless the Company shall become subject to a merger,
consolidation or other acquisition pursuant to which the holders of Common Stock
receive securities and/or other property in exchange for their Common Stock, in
which case the fair market value of Common Stock shall be deemed to be the value
(determined in good faith by the Company's Board of Directors (with the
agreement of at least one of the directors designated by TVM or Merlin,
provided, that designees of TVM and Merlin are directors at such time)) of the
securities and other property received by the holders of the Company's Common
Stock per share of Common Stock pursuant to such merger, consolidation or other
acquisition.

      5. Adjustment for Reorganizations, Etc.

            (a) Certain Adjustments.

            (i) If the Warrant Stock is Next Round Preferred Stock or Optional
Conversion Preferred Stock, then in case at any time or from time to time prior
to the exercise of this Warrant but before the Automatic Conversion Effective
Time, the Company effects an "Extraordinary Warrant Stock Event" (as hereafter
defined), then in each such case, (A) the number of shares of Warrant Stock
purchasable hereunder shall be adjusted to the number obtained by multiplying
the number of shares of Warrant Stock purchasable hereunder immediately before
such Extraordinary Warrant Stock Event by a fraction, the numerator of which
shall be the number of shares of Warrant Stock outstanding (excluding treasury
stock) immediately after such Extraordinary Warrant Stock Event and the
denominator of which shall be the number of shares of Warrant Stock outstanding
(excluding treasury stock) immediately before such Extraordinary Warrant Stock
Event, and (B) the Exercise Price shall be adjusted to

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the number obtained by multiplying the Exercise Price in effect immediately
before such Extraordinary Warrant Stock Event by a fraction, the numerator of
which shall be the number of shares of Warrant Stock outstanding (excluding
treasury stock) immediately before such Extraordinary Warrant Stock Event and
the denominator of which shall be the number of shares of Warrant Stock
outstanding (excluding treasury stock) immediately after such Extraordinary
Warrant Stock Event, in each case subject to further adjustment thereafter as
provided herein. The term "Extraordinary Warrant Stock Event" shall mean (x) the
issuance of additional shares of Warrant Stock as a dividend or other
distribution on outstanding Warrant Stock, (y) the subdivision of outstanding
shares of Warrant Stock into a greater number of shares of Warrant Stock, or (z)
the combination of outstanding shares of Warrant Stock into a smaller number of
shares of Warrant Stock.

            (ii) In case at any time or from time to time prior to the exercise
of this Warrant but after the Automatic Conversion Effective Time, the Company
effects an "Extraordinary Common Stock Event" (as hereafter defined), then in
each such case, (A) the number of shares of Common Stock purchasable hereunder
shall be adjusted to the number obtained by multiplying the number of shares of
Common Stock purchasable hereunder immediately before such Extraordinary Common
Stock Event by a fraction, the numerator of which shall be the number of shares
of Common Stock outstanding (excluding treasury stock) immediately after such
Extraordinary Common Stock Event and the denominator of which shall be the
number of shares of Common Stock outstanding (excluding treasury stock)
immediately before such Extraordinary Common Stock Event, and (B) the Exercise
Price shall be adjusted to the number obtained by multiplying the Exercise Price
in effect immediately before such Extraordinary Common Stock Event by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding (excluding treasury stock) immediately before such Extraordinary
Common Stock Event and the denominator of which shall be the number of shares of
Common Stock outstanding (excluding treasury stock) immediately after such
Extraordinary Common Stock Event, in each case subject to further adjustment
thereafter as provided herein. The term "Extraordinary Common Stock Event" shall
mean (x) the issuance of additional shares of Common Stock as a dividend or
other distribution on outstanding Common Stock, (y) the subdivision of
outstanding shares of Common Stock into a greater number of shares of Common
Stock, or (z) the combination of outstanding shares of Common Stock into a
smaller number of shares of Common Stock.

            (iii) Subject to earlier termination of this Warrant upon a Sale of
the Company, in case at any time or from time to time prior to the exercise of
this Warrant, the Company (A) effects a capital reorganization, reclassification
or recapitalization, or (B) consolidates with or merges with or into any other
person or entity, then in each such case, the registered holder of this Warrant,
upon exercise hereof at any time after or simultaneously with the consummation
of such reorganization, reclassification, recapitalization, consolidation or
merger, as the case may be, will receive, in lieu of the securities issuable
upon such exercise before such consummation or effective date, the other
securities, cash, and/or property to which such holder would have been entitled
upon such consummation or in connection with such dissolution, as the case may
be, if such holder had exercised this Warrant immediately prior thereto, all
subject to further adjustment thereafter as provided herein.

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            (b) Appointment of Trustee for Warrant Holders Upon Dissolution. In
the event of any dissolution of the Company, the Company, prior to such
dissolution, will, at its expense, deliver or cause to be delivered the
securities, property, and/or cash receivable by the registered holder of this
Warrant after the effective date of such dissolution pursuant to this Section 5
to a bank or trust company having its principal office in Delaware, as trustee
for the registered holder of this Warrant.

            (c) Continuation of Terms. Subject to earlier termination of this
Warrant upon a Sale of the Company, upon any reorganization, consolidation or
merger referred to in this Section 5, this Warrant will continue in full force
and effect and the terms hereof will be applicable to the securities, cash,
and/or property receivable on the exercise of this Warrant after or
simultaneously with the consummation of such reorganization, consolidation or
merger and will be binding upon the issuer of any such stock or other
securities.

      6. No Dilution or Impairment. The Company will not, by amendment of its
Certificate of Incorporation (as amended and/or restated from time to time, the
"Certificate of Incorporation") or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities, or any
other action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the registered holder
of this Warrant against dilution. Without limiting the generality of the
foregoing, the Company will take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of stock upon exercise of this Warrant from time to
time.

      7. Automatic Conversion of the Warrant Stock. If the Warrant Stock is Next
Round Preferred Stock or Optional Conversion Preferred Stock and at any time the
issued and outstanding shares of the Warrant Stock shall be automatically
converted into shares of Common Stock under the terms of the Certificate of
Incorporation, then upon and after the effective time of such automatic
conversion of the Warrant Stock (the "Automatic Conversion Effective Time"), the
right to purchase Warrant Stock granted herein shall terminate, and this Warrant
shall represent the right to purchase a number of shares of Common Stock
calculated as follows:

                 X  =  (Y)(Z)

         Where:  X  =  the number of shares of Common Stock purchasable under
                       this Warrant upon and after such Automatic Conversion
                       Effective Time

                 Y  =  the number of shares of Warrant Stock purchasable under
                       this Warrant immediately prior to such Automatic
                       Conversion Effective Time

                 Z  =  the number of shares of Common Stock issuable upon
                       conversion of each share of Warrant Stock immediately
                       prior to such Automatic Conversion Effective Time

and the Exercise Price per share of Common Stock shall be a price calculated as
follows:

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                 A  =  (B)(X)/Y

         Where:  A  =  the Exercise Price per share of Common Stock upon and
                       after such Automatic Conversion Effective Time

                 B  =  the Exercise Price per share of Warrant Stock immediately
                       prior to such Automatic Conversion Effective Time

                 X  =  the number of shares of Warrant Stock purchasable under
                       this Warrant immediately prior to such Automatic
                       Conversion Effective Time

                 Y  =  the number of shares of Common Stock purchasable under
                       this Warrant upon and after such Automatic Conversion
                       Effective Time

Thereafter, the number of shares of Common Stock purchasable hereunder and the
Exercise Price per share shall be subject to adjustment for the types of events
described in Section 5 above that occur with respect to the Common Stock.

      8. Notices of Record Date, Etc. In the event from time to time of any
proposed or contemplated:

            (a) taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend or other distribution, or any right to subscribe for,
purchase, or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right;

            (b) capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company, or any transfer of all or
substantially all the assets of the Company to, or any consolidation or merger
of the Company with or into, any other person or entity; or

            (c) voluntary or involuntary dissolution, liquidation, or winding-up
of the Company;

then, and in each such event the Company will mail or cause to be mailed to the
registered holder of this Warrant a notice specifying (i) the date on which any
such record is to be taken for the purpose of such dividend, distribution, or
right, and stating the amount and character of such dividend, distribution, or
right, or (ii) the date on which any such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation, or
winding-up is anticipated to take place and the time, if any is to be fixed, as
of which the holders of record of any class or series of the Company's capital
stock or other securities will be entitled to exchange such stock or other
securities for other securities, cash, and/or other property deliverable on such
reorganization, reclassification, recapitalization, transfer, consolidation,
merger, dissolution, liquidation, or winding-up. Such notice will be mailed at
least twenty (20) days prior to the earliest date specified in such notice on
which any such action or transaction is to be taken or consummated.

                                       9
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      9. Reservation of Securities Issuable on Exercise of Warrant. The Company
at all times and from time to time will reserve and keep available, solely for
issuance and delivery on the exercise of this Warrant, the quality and
quantities of securities from time to time issuable upon exercise of this
Warrant. If at any time the Company does not have sufficient authorized
securities to comply with the foregoing sentence, the Company promptly will take
all steps (including, without limitation, amending the Certificate of
Incorporation) necessary to provide the quality and quantity of securities
sufficient to effect the exercise in full of this Warrant.

      10. Warrant Agent. The Company may, by written notice to the registered
holder of this Warrant, appoint an agent having an office in Delaware for the
purpose of issuing securities upon exercise of this Warrant, exchanging or
replacing this Warrant, or any of the foregoing, and thereafter any such
issuance, exchange, or replacement as the case may be, will be made at such
office by such agent.

      11. Transfer and Exchange of Warrant.

            (a) Transfer. Subject to evidence of compliance with the Securities
Act of 1933, as amended, (the "Securities Act"), and applicable state securities
laws, this Warrant may be transferred or succeeded to by any person; provided,
however, that the Company is given written notice at the time of such transfer
stating the name and address of the transferee.

            (b) Exchange. Upon surrender of this Warrant for transfer or
exchange, a new Warrant or new Warrants of the same tenor and exercisable for
the same aggregate number of shares of Warrant Stock as the Warrant so
surrendered will be issued to, and registered in the name of, the transferee or
transferees. The Company may treat the person in whose name this Warrant is
registered as the holder hereof for all purposes.

      12. Compliance with Securities Act. The holder hereof, by acceptance
hereof, agrees that this Warrant is being acquired for investment for its own
account and not with a view towards its distribution and that the holder hereof
will not offer, sell or otherwise dispose of this Warrant or shares of capital
stock of the Company issued upon exercise of this Warrant except under
circumstances which will not result in a violation of the Securities Act and
applicable state securities laws. The holder hereof, by acceptance hereof,
represents that such holder is an "Accredited Investor" within the meaning of
Rule 501 promulgated under this Securities Act 1933, as amended.

      13. Captions. The captions of sections or subsections of this Warrant are
for reference only and will not affect the interpretation or construction of
this Warrant.

      14. Equitable Relief. The Company hereby acknowledges that any breach by
it of its obligations under this Warrant would cause substantial and irreparable
damage to the registered holder hereof and that money damages would be an
inadequate remedy therefor, and accordingly, acknowledges and agrees that, in
addition to any other rights and remedies to which the registered holder hereof
may be entitled in respect of any breach of such obligations, such holder will
be entitled to an injunction, specific performance and/or other equitable relief
to prevent the breach of such obligations.

                                       10
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      15. Waivers. No waiver of any breach or default hereunder will be valid
unless in a writing signed by the registered holder hereof. No failure or other
delay by the registered holder hereof exercising any right, power, or privilege
hereunder will be or operate as a waiver thereof, nor will any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power, or privilege.

      16. Governing Law. This Warrant will be governed by and interpreted and
construed in accordance with the internal laws of the State of Delaware (without
reference to principles of conflicts or choice of law).

      17. Supercedes Prior Warrants. This Warrant supercedes and replaces a
certain (i) Second Amended and Restated Preferred Stock Purchase Warrant (No. P-
) of even date herewith (the "Second Amended Warrant"), (ii) Amended and
Restated Preferred Stock Purchase Warrant (No. P-9) of even date herewith (the
"First Amended Warrant") and (iii) Preferred Stock Purchase Warrant (No. P-4) of
even date herewith (the "Original Warrant"), each issued by the Company to the
Holder. By countersigning this Warrant on the signature page hereof, the
undersigned consents and agrees to all amendments to the Second Amended Warrant,
First Amended Warrant and the Original Warrant contained in this Warrant and the
undersigned acknowledges that the Second Amended Warrant, the First Amended
Warrant and the Original Warrant are no longer outstanding or obligations of the
Company.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
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      Executed and delivered under seal on and as of the date first above
written.

MAXIMUM NOTE PRINCIPAL: $2,000,000.00   EPICEPT CORPORATION

                                        By:
                                            ------------------------------------
                                                                     (signature)

                                        Name:           Robert W. Cook
                                              ----------------------------------
                                                                       (printed)

                                        Its:         Chief Financial Officer
                                             -----------------------------------
                                                                         (title)

ACCEPTED AND AGREED:

[NAME OF HOLDER]

By:
    ------------------------------------
                             (signature)

Name:
      ----------------------------------
                               (printed)

Title:
       ---------------------------------
                                 (title)
<PAGE>
                                SUBSCRIPTION FORM

      The undersigned, the registered holder of the within Third Amended and
Restated Preferred Stock Purchase Warrant, hereby elects to exercise the
purchase right represented by such Warrant as follows:

____  The undersigned hereby elects to purchase ________ shares of Warrant Stock
      (as defined in this Warrant) and herewith makes payment of $ ____________
      therefor.

____  The undersigned hereby elects to exercise this Warrant by the net issuance
      method described in Section 4 of this Warrant and to receive __________
      shares of Warrant Stock (as defined in this Warrant).

      The undersigned further requests that the certificates representing such
shares be issued in the name of and delivered to ______________________________
and if such shares shall not include all of the shares issuable under this
Warrant, that a new Warrant of like tenor and date be delivered to the
undersigned for the shares not issued.

Dated:____________________
                                        _______________________________________
                                        Name of Registered Holder<PAGE>

                                                                    EXHIBIT 10.2

                               EPICEPT CORPORATION

                             1995 STOCK OPTION PLAN
                        (AS AMENDED THROUGH JUNE 6, 2002)

1. PURPOSE.

      The purpose of this 1995 Stock Option Plan, as amended and/or restated
(the "Plan"), is to secure to EpiCept Corporation (the "Company") and its
shareholders the benefits arising from capital stock ownership by employees,
officers, directors, consultants and advisors of the Company and any subsidiary
corporations, who are expected to contribute to the Company's future growth and
success. Except where the content otherwise requires, the term "Company" shall
include all present and future subsidiaries of the Company as defined in Section
424(f) of the Internal Revenue Code of 1986, as amended or replaced from time to
time (the "Code"). Those provisions of the Plan which make express reference to
Section 422 shall apply only to Incentive Stock Options (as that term is defined
in the Plan).

2. TYPES OF OPTIONS AND ADMINISTRATION.

      (a) TYPES OF OPTIONS. Options granted pursuant to the Plan shall be
authorized by action of the Board of Directors of the Company (or a Committee
designated by the Board of Directors) and may be either incentive stock options
("Incentive Stock Options") meeting the requirements of Section 422 of the Code
or non-statutory options which are not intended to meet the requirements of
Section 422 of the Code.

      (b) ADMINISTRATION. The Plan will be administered by a committee (the
"Committee") appointed by the Board of Directors of the Company ("Board"), whose
construction and interpretation of the terms and provisions of the Plan shall be
final and conclusive. The delegation of powers to the Committee shall be
consistent with applicable laws or regulations (including, without limitation,
applicable state law and Rule 1 6b-3 promulgated under the Securities Exchange
Act of 1934 (the "Exchange Act"), or any successor rule ("Rule l6b-3"). In the
event that the Committee is unable or unavailable to perform its duties and
responsibilities under the Plan, the Board shall assume and perform all such
duties and responsibilities of the Committee hereunder until such time as the
Committee is able to resume performing its duties and responsibilities
hereunder. Subject to certain provisions throughout the Plan, the Committee may
in its sole discretion grant options to purchase shares of the Company's Common
Stock, $.0001 par value per share ("Common Stock"), and issue shares of Common
Stock upon exercise of such options as provided in the Plan. The Committee shall
have the authority, subject to the express provisions of the Plan to: (i)
construe the respective option agreements and the Plan; (ii) to prescribe, amend
and rescind rules and regulations relating to the Plan; (iii) to determine the
terms and provisions of the respective option agreements, which need not be
identical; and (iv) to make all other determinations in the

<PAGE>

judgement of the Committee necessary or desirable for the administration of the
Plan. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in the Plan or in any option agreement in the manner and to
the extent it shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. No director or person acting
pursuant to authority delegated by the Board shall be liable for any action or
determination under the Plan made in good faith. Subject to adjustment as
provided in Section 15 below, the aggregate number of shares of Common Stock
that may be subject to options granted to any person in a calendar year shall
not exceed Three Hundred and Fifty Thousand (350,000) shares of Common Stock.

      (c) APPLICABILITY OF RULE 16b-3 AND SECTION 162(m). Except for Section 25
hereof, those provisions of the Plan which make express reference to Rule 16b-3
and Section 162(m) of the Code shall apply to the Company only at such time as
the Company's Common Stock is registered under the Exchange Act, and then only
to such persons as are required to file reports under Section 16(a) of the
Exchange Act (a "Reporting Person").

3. ELIGIBILITY.

      (a) GENERAL. Options may be granted to persons who are, at the time of
grant, employees, officers, directors, consultants or advisors of the Company or
any of its majority-controlled subsidiaries; provided, however, that Incentive
Stock Options may only be granted to individuals who are employees of the
Company or any of its majority-controlled subsidiaries. A person who has been
granted an option may, if he or she is otherwise eligible, be granted additional
options if the Committee shall so determine.

      (b) GRANT OF OPTIONS TO REPORTING PERSONS. From and after the registration
of the Common Stock of the Company under the Exchange Act, the selection of a
director or an officer who is a Reporting Person (as the terms "director" and
"officer" are defined for purposes of Rule 16b-3) as a recipient of an option,
the timing of the option grant, the exercise price of the option and the number
of shares subject to the option shall be determined (i) by the Committee, each
of which members shall be a "non-employee director" (as hereinafter defined) or
(ii) by a committee consisting of two or more directors having full authority to
act in the matter, each of whom shall be a "non-employee director". For the
purposes of the Plan a director shall be deemed to be a "non-employee director"
only if such person qualifies as a "non-employee director" within the meaning of
Rule 16b-3, as such term is interpreted from time to time. In addition, to the
extent reasonably practicable, each member of the Committee (or the committee of
directors described in clause (ii) above) shall be an "outside director" as
defined in the regulations under Section 162(m) of the Code.

4. STOCK SUBJECT TO THE PLAN.

      The stock subject to options granted under the Plan shall be shares of
authorized but unissued or reacquired Common Stock. Subject to adjustment as
provided in Section 15 below, the maximum number of shares of Common Stock of
the Company that may be issued and sold under the Plan is 3,188,320. If an
option granted under the Plan shall

                                       2
<PAGE>

expire, terminate or is canceled for any reason without having been exercised in
full, the unpurchased shares subject to such option shall again be available for
subsequent option grants under the Plan.

5. FORMS OF OPTION AGREEMENTS.

      As a condition to the grant of an option under the Plan, each recipient of
an option shall execute an option agreement in such form not inconsistent with
the Plan as may be approved by the Board. Such option agreements may differ
among option recipients.

6. PURCHASE PRICE.

      (a) GENERAL. The purchase price per share of stock deliverable upon the
exercise of an option shall be determined by the Committee at the time of grant
of such option; provided, however, that in the case of an Incentive Stock
Option, the exercise price shall not be less than 100% of the Fair Market Value
(as hereinafter defined) of such stock, at the time of grant of such option, or
less than 110% of such Fair Market Value in the case of options described in
Section 11(b). "Fair Market Value" of a share of Common Stock of the Company as
of a specified date for the purposes of the Plan shall mean the closing price of
a share of the Common Stock on the principal securities exchange on which such
shares are traded on the day immediately preceding the date as of which Fair
Market Value is being determined, or on the next preceding date on which such
shares are traded if no shares were traded on such immediately preceding day, or
if the shares are not traded on a securities exchange, Fair Market Value shall
be deemed to be the average of the high bid and low asked prices of he shares in
the over the-counter market on the day immediately preceding the date as of
which Fair Market Value is being determined or on the next preceding date an
which such high bid and low asked prices were recorded. If the shares are not
publicly traded, Fair Market Value of a share of Common Stock (including, in the
case of any repurchase of shares, any distributions with respect thereto which
would be repurchased with the shares) shall be determined in good faith by the
Committee.

      (b) PAYMENT OF PURCHASE PRICE. Options granted under the Plan may provide
for the payment of the exercise price by delivery of cash or a check to the
order of the Company in an amount equal to the exercise price of such options,
or by any other means which the Committee determines are consistent with the
purpose of the Plan and with applicable laws and regulations (including, without
limitation, the provisions of Rule 1 6b-3 and Regulation T promulgated by the
Federal Reserve Board).

7. OPTION PERIOD.

      Subject to earlier termination as provided in the Plan, each option and
all rights thereunder shall expire on such date as determined by the Committee
and set forth in the applicable option agreement, provided, however that such
date shall not be later than (10) ten years after the date on which the option
is granted.

                                       3
<PAGE>

8. EXERCISE OF OPTIONS.

      Each option granted under the Plan shall be exercisable either in full or
in installments at such time or times and during such period as shall be set
forth in the option agreement evidencing such option, subject to the provisions
of the Plan. No option granted to a Reporting Person for purposes of the
Exchange Act, however, shall be exercisable during the first six months after
the date of grant. Subject to the requirements in the immediately preceding
sentence, if an option is not at the time of grant immediately exercisable, the
Committee may (i) in the agreement evidencing such option, provide for the
acceleration of the exercise date or dates of the subject option upon the
occurrence of specified events, and/or (ii) at any time prior to the complete
termination of an option, accelerate the exercise date or dates of such option.

9. NONTRANSFERABILITV OF OPTIONS.

      No option granted under the Plan shall be assignable or otherwise
transferable by the optionee except by will or by the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined in
the Code or Title I of the Employee Retirement Income Security Act, or the rules
thereunder. Subject to the foregoing, an option may be exercised during the
lifetime of the optionee only by the optionee. In the event an optionee dies
during his employment by the Company or any of its subsidiaries, or during the
three-month period following the date of termination of such employment, his
option shall thereafter be exercisable, during the period specified in the
option agreement, by his executors or administrators to the full extent to which
such option was exercisable by the optionee at the time of his death during the
periods set forth in Section 10 or 11(d).

10. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP.

      Except as provided in Section 11(d) with respect to Incentive Stock
Options, and subject to the provisions of the Plan, an optionee may exercise an
option at any time within three (3) months following the termination of the
optionee's employment or other relationship with the Company or within one (1)
year if such termination was due to the death or disability of the optionee,
but, except in the case of the optionee's death, in no event later than the
expiration date of the Option. If the termination of the optionee's employment
is for cause or is otherwise attributable to a breach by the optionee of an
employment, confidentiality or non-disclosure agreement, the option shall expire
immediately upon such termination. The Committee shall have the power to
determine what constitutes a termination for cause or a breach of an employment,
confidentiality or non-disclosure agreement, whether an optionee has been
terminated for cause or has breached such an agreement, and the date upon which
such termination for cause or breach occurs. Any such determination shall be
final and conclusive and binding upon the optionee.

                                       4
<PAGE>

11. INCENTIVE STOCK OPTIONS.

      Options granted under the Plan which are intended to be Incentive Stock
Options shall be subject to the following additional terms and conditions:

      (a) EXPRESS DESIGNATION. All Incentive Stock Options granted under the
Plan shall, at the time of grant, be specifically designated as such in the
option agreement covering such Incentive Stock Options.

      (b) 10% SHAREHOLDER. If any employee to whom an Incentive Stock Option is
to be granted under the Plan is, at the time of the grant of such option, the
owner of stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company (after taking into account the attribution
of stock ownership rules of Section 424(d) of the Code), then the following
special provisions shall be applicable to the Incentive Stock Option granted to
such individual:

            (i) The purchase price per share of the Common Stock subject to such
      Incentive Stock Option shall not be less than 110% of the Fair Market
      Value of one share of Common Stock at the time of grant; and

            (ii) the option exercise period shall not exceed five (5) years from
      the date of grant.

      (c) DOLLAR LIMITATION. For so long as the Code shall so provide, options
granted to any employee under the Plan (and any other incentive stock option
plans of the Company) which are intended to constitute Incentive Stock Options
shall not constitute Incentive Stock Options to the extent that such options, in
the aggregate, become exercisable for the first time in any one calendar year
for shares of Common Stock with an aggregate Fair Market Value, as of the
respective date or dates of grant, of more than One Hundred Thousand Dollars
($100,000).

      (d) TERMINATION OF EMPLOYMENT. DEATH OR DISABILITY. No Incentive Stock
Option may be exercised unless, at the time of such exercise, the optionee is,
and has been continuously since the date of grant of his or her option employed
by the Company, except that:

            (i) an Incentive Stock Option may be exercised within the period of
      three months after the date the optionee ceases to be an employee of the
      Company (or within such lesser period as may be specified in the
      applicable option agreement), provided, that the agreement with respect to
      such option may designate a longer exercise period and that the exercise
      after such three-month period shall be treated as the exercise of a
      non-statutory option under the Plan;

            (ii) if the optionee dies while in the employ of the Company, or
      within three months after the optionee ceases to be such an employee, the
      Incentive Stock Option may be exercised by the person to whom it is
      transferred by will or the laws of descent and distribution within the
      period of one year after the date of

                                       5
<PAGE>

      death (or within such lesser period as maybe specified in the applicable
      option agreement); or

      (iii) if the optionee becomes disabled (within the meaning of Section
      22(e)(3) of the Code or any successor provisions thereto) while in the
      employ of the Company, the Incentive Stock Option may be exercised within
      the period of one year after the date the optionee ceases to be such an
      employee because of such disability (or within such lesser period as may
      be specified in the applicable option agreement).

Notwithstanding the foregoing provisions, no Incentive Stock Option may be
exercised after its expiration date.

12. ADDITIONAL PROVISIONS.

      (a) ADDITIONAL OPTION PROVISIONS. The Committee may, in its sole
discretion, include additional provisions in option agreements covering options
granted under the Plan, including without limitation restrictions on transfer,
repurchase rights, rights of first refusal, commitments to pay cash bonuses, to
make, arrange for or guaranty loans or to transfer other property to optionees
upon exercise of options, or such other provisions as shall be determined by the
Committee; provided, however, that such additional provisions shall not be
inconsistent with any other terms or conditions of the Plan and such additional
provisions shall not cause any Incentive Stock Option, granted under the Plan to
fail to qualify as an Incentive Stock Option within the meaning of Section 422
of the Code.

      (b) ACCELERATION. EXTENSION. ETC. The Committee may, in its sole
discretion, (i) accelerate the date or dates on which all or any particular
option or options granted under the Plan may be exercised or (ii) extend the
dates during which all, or any particular, option or options granted under the
Plan may be exercised; provided, however, that no such extension shall be
permitted if it would cause the Plan to fail to comply with Section 422 of the
Code or with Rule 16b-3 (if applicable).

13. GENERAL RESTRICTIONS.

      (a) INVESTMENT REPRESENTATIONS. The Company may require any person to whom
an option is granted, as a condition of exercising such option, to give written
assurances in substance and form satisfactory to the Company to the effect that
such person is acquiring the Common Stock subject to the option for his or her
own account for investment and not with any present intention of selling or
otherwise distributing the same, and to such other effects as the Company deems
necessary or appropriate in order to comply with federal and applicable state
securities laws, or with covenants or representations made by the Company in
connection with any public offering of its Common Stock.

      (b) COMPLIANCE WITH SECURITIES LAW. Each option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that
the listing, registration or qualification of the shares subject to such option
upon any securities

                                       6
<PAGE>

exchange or under any state or federal law, or the consent or approval of any
governmental or regulatory body, or that the disclosure of non-public
information or the satisfaction of any other condition is necessary as a
condition of, or in connection with the issuance or purchase of shares
thereunder, such option may not be exercised, in whole or in part, unless such
listing, registration, qualification, consent or approval, or satisfaction of
such condition shall have been effected or obtained on conditions acceptable to
the Board. Nothing herein shall be deemed to require the Company to apply for or
to obtain such listing, registration or qualification, or to satisfy such
condition.

14. RIGHTS AS A SHAREHOLDER.

      The holder of an option shall have no rights as a shareholder with respect
to any shares covered by the option (including, without limitation, any rights
to receive dividends or non-cash distributions with respect to such shares)
until, following the exercise of such option, the date of issue of a stock
certificate to him or her for such shares. No adjustment shall be made for
dividends or other rights for which the reward date is prior to the date such
stock certificate is issued.

15. ADJUSTMENT PROVISIONS FOR RECAPITALIZATIONS. REORGANIZATIONS AND RELATED
    TRANSACTIONS.

      (a) RECAPITALIZATIONS AND RELATED TRANSACTIONS. If through or as a result
of any recapitalization, reclassification, stock dividend, stock split, reverse
stock split or other similar transaction (i) the outstanding shares of Common
Stock are increased, decreased or exchanged for a different number or kind of
shares or other securities of the Company, or (ii) additional shares or new or
different shares or other non-cash assets are distributed with respect to such
shares of Common Stock or other securities, an appropriate and proportionate
adjustment shall be made in (x) the maximum number and kind of shares reserved
for issuance under the Plan, (y) the number and kind of shares or other
securities subject to any then outstanding options under the Plan and (z) the
price for each share subject to any then outstanding options under the Plan,
without changing the aggregate purchase price as to which such options remain
exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant
to this Section 15 if such adjustment (i) would cause the Plan to fail to comply
with Section 422 of the Code or with Rule 16b-3 or (ii) would be considered as
the adoption of a new plan requiring stockholder approval.

      (b) REORGANIZATION, MERGER AND RELATED TRANSACTIONS. If the Company shall
be the surviving corporation in any reorganization, merger or consolidation of
the Company with one or more other corporations, any then outstanding option
granted pursuant to the Plan shall pertain to and apply to the securities to
which a holder of the number of shares of Common Stock subject to such options
would have been entitled immediately following such reorganization, merger, or
consolidation with a corresponding proportionate adjustment of the purchase
price as to which such options may be exercised so that the aggregate purchase
price as to which such option may be exercised shall be the same as the
aggregate purchase price as to which such options may

                                       7
<PAGE>

be exercised for the shares remaining subject to the options immediately prior
to such reorganization, merger, of coordination.

      (c) BOARD AUTHORITY TO MAKE ADJUSTMENTS. Any adjustments under this
Section 15 will be made by the Board, whose determination as to what
adjustments, if any, will be made and the extent thereof will be final, binding
and conclusive. No fractional shares will be issued under the Plan on account of
any such adjustments.

16. MERGER. CONSOLIDATION. ASSET SALE, LIQUIDATION. ETC.

      (a) GENERAL. For purposes of the Plan, a "Change of Control Event" shall
mean: (1) a sale of all or substantially all of the assets of the Company; (2) a
merger or consolidation in which the Company is not the surviving corporation;
(3) a reverse merger in which the Company is the surviving corporation but the
shares of the Company's common stock outstanding immediately preceding the
merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise; or (4) the acquisition by any person,
entity or group within the meaning of Section 13(d) or 14(d) of the Exchange
Act, or any comparable successor provisions (excluding any employee benefit
plan, or related trust, sponsored or maintained by the Company or any affiliate
of the Company) of the beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act, or comparable successor rule) of outstanding
securities of the Company representing at least eighty percent (80%) of the
combined voting power entitled to vote in the election of directors. In the
event of any Change of Control Event whereby any options granted under the Plan
are not converted into shares of common stock or substantially equivalent
securities of the surviving or acquiring company, then any such options shall be
deemed fully exercisable immediately prior to the closing date of the Change of
Control Event. All optionees shall have a period of one (1) month from the
closing date of the Change of Control Event to exercise all options that have
accelerated in vesting pursuant to this Section 16(a).

      (b) SUBSTITUTE OPTIONS. The Company may grant options under the Plan in
substitution for options held by employees of another corporation who become
employees of the Company, or a subsidiary of the Company, as the result of a
merger or consolidation of the employing corporation with the Company or a
subsidiary of the Company, or as a result of the acquisition by the Company, or
one of its subsidiaries, of property or stock of the employing corporation. The
Company may direct that substitute options be granted on such terms and
conditions as the Board considers appropriate under the circumstances.

17. NO SPECIAL EMPLOYMENT RIGHTS.

      Nothing contained in the Plan or in any option shall confer upon any
optionee any right with respect to the continuation of his or her employment by
the Company or interfere in any way with the right of the Company at any time to
terminate such employment or to increase or decrease the compensation of the
optionee.

                                        8
<PAGE>

18. OTHER EMPLOYEE BENEFITS.

      Except as to plans which by their terms include such amounts as
compensation, the amount of any compensation deemed to be received by an
employee as a result of the exercise of an option or the sale of shares received
upon such exercise will not constitute compensation with respect to which any
other employee benefits of such employee are determined, including, without
limitation, benefits under any bonus, pension, profit-sharing, life insurance or
salary continuation plan except as otherwise specifically determined by the
Board.

19. AMENDMENT OF THE PLAN.

      (a) The Board may at any time, and from time to time, modify or amend the
Plan in any respect; provided, however, that if at any time the approval of the
shareholders of the Company is required under Section 422 of the Code or any
successor provision with respect to Incentive Stock Options, or under Rule 1
6b-3, the Board may not effect such modification or amendment without such
approval.

      (b) The modification or amendment of the Plan shall not, without the
consent of an optionee, affect his or her rights in any materially adverse
manner under an option previously granted to him or her. With the consent of the
optionee affected, the Committee may amend any outstanding option agreement in a
manner not inconsistent with the Plan. The Committee shall have the right to
amend or modify (i) the terms and provisions of the Plan and of any outstanding
Incentive Stock Options granted under the Plan to the extent necessary to
qualify any or all such options for such favorable federal income tax treatment
(including deferral of taxation upon exercise) as may be afforded incentive
stock options under Section 422 of the Code and (ii) the terms and provisions of
the Plan and of any outstanding option to the extent necessary to ensure the
qualification of the Plan under Rule l6b-3.

20. WITHHOLDING.

      (a) The Company shall have the right to deduct from payments of any kind
otherwise due to the optionee any federal, state or local taxes of any kind
required by law to be withheld with respect to any shares issued upon exercise
of options under the Plan. Subject to the prior approval of the Company, which
may be withheld by the Company in its sole discretion, the optionee may elect to
satisfy such obligations, in whole or in part (i) by causing the Company to
withhold shares of Common Stock otherwise issuable pursuant to the exercise of
an option or (ii) by delivering to the Company shares of Common Stock already
owned by the optionee. The shares so delivered or withheld shall have a Fair
Market Value equal to such withholding obligation as of the date that the amount
of tax to be withheld is to be determined. An optionee who has made an election
pursuant to this Section 20(a) may only satisfy his or her withholding
obligation with shares of Common Stock which are not subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements.

                                        9
<PAGE>

      (b) The acceptance of shares of Common Stock upon exercise of an Incentive
Stock Option shall constitute an agreement by the optionee (i) to notify the
Company if any or all of such shares are disposed of by the optionee within two
years from the date the option was granted or within one year from the date the
shares were issued to the optionee pursuant to the exercise of the option, and
(ii) if required by law, to remit to the Company, at the time of and in the case
of any such disposition an amount sufficient to satisfy the Company's federal,
state and local withholding tax obligations with respect to such disposition,
whether or not, as to both (i) and (ii), the optionee is in the employ of the
Company at the time of such disposition.

      (c) Notwithstanding the foregoing, in the case of a Reporting Person whose
options have been granted in accordance with the provisions of Section 3(b)
herein, no election to use shares for the payment of withholding taxes shall be
effective unless made in compliance with any applicable requirements of Rule
16b-3.

21. CANCELLATION AND NEW GRANT OF OPTIONS. ETC.

      The Committee shall have the authority to effect, at any time and from
time to time, with the consent of the affected optionees, (i) the cancellation
of any or all outstanding options under the Plan and the grant in substitution
therefor of new options under the Plan covering the same or different numbers of
shares of Common Stock and having an option exercise price per share which may
be lower or higher than the exercise price per share of the canceled options or
(ii) the amendment of the terms of any and all outstanding options under the
Plan to provide an option exercise price per share which is higher or lower than
the then-current exercise price per share of such outstanding options.

22. EFFECTIVE DATE AND DURATION OF THE PLAN.

      (a) EFFECTIVE DATE. The Plan shall become effective when adopted by the
Board, but no Incentive Stock Option granted under the Plan shall become
exercisable unless and until the Plan shall have been approved by the Company's
shareholders. If such shareholder approval is not obtained within twelve months
after the date of the Board's adoption of the Plan, no options previously
granted under the Plan shall be deemed to be Incentive Stock Options and no
Incentive Stock Options shall be granted thereafter. Amendments to the plan not
requiring shareholder approval shall become effective when adopted by the Board;
amendments requiring shareholder approval (as provided in Section 19) shall
become effective when adopted by the Board, but no Incentive Stock Option
granted after the date of such amendment shall become exercisable (to the extent
that such amendment to the Plan was required to enable the Company to grant such
Incentive stock Option to a particular optionee) unless and until such amendment
shall have been approved by the Company's shareholders. If such shareholder
approval is not obtained within twelve months of the Board's adoption of such
amendment shall terminate to the extent that such amendment to the Plan was
required to enable the Company to grant such option to a particular optionee.
Subject to this limitation, options may be granted under the Plan at any time
after the effective date and before the date fixed for termination of the Plan.

                                       10
<PAGE>

      (b) TERMINATION. Unless sooner terminated in accordance with Section 16,
the Plan shall terminate upon the earlier of (i) the close of business on the
day next preceding the tenth anniversary of the date of its adoption by the
Board or (ii) the date on which all shares available for issuance under the Plan
shall have been issued pursuant to the exercise or cancellation of options
granted under the Plan, of the date of termination is determined under (i)
above, then options outstanding on such date shall continue to have force and
effect in accordance with the provisions of the instruments evidencing such
options.

23. PROVISION FOR FOREIGN PARTICIPANTS.

      The Committee may, without amending the Plan, modify awards or options
granted to participants who are foreign nationals or employed outside the United
States to recognize differences in laws, rules, regulations or customs of such
foreign jurisdictions with respect to tax, securities, currency, employee
benefit or other matters.

24. GOVERNING LAW.

      The provisions of the Plan shall be governed and construed in accordance
with the laws of the State of Delaware without regard to the principles of
conflicts of laws.

25. EARLY EXERCISE.

      The option may, but need not, include a provision whereby an optionee who
is a "non-employee director" (as defined in Rule 1 6b-3) may elect to exercise
the option as to any part or all of the shares subject to the option prior to
the full vesting of the option. Any unvested shares so purchased shall be
subject to a repurchase right in favor of the Company or to any other
restriction the Board determines to be appropriate.

                                       11

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