Document:

EXHIBIT 4.1

                   RUBY MINING COMPANY 2002 STOCK OPTION PLAN

                                   ARTICLE I

                                NAME AND PURPOSE

     SECTION 1.01. NAME. The name of the plan shall be the Ruby Mining Company
2002 Stock Option Plan (the "Plan").

     SECTION 1.02. PURPOSE OF THE PLAN. The purpose of the Plan is to enable the
Employees, Consultants and Directors of Ruby Mining Company (the "Company") to
share in the growth and prosperity of the Company by encouraging stock ownership
by Employees, Consultants and Directors and to assist the Company to obtain and
retain key management personnel. Either Incentive Stock Options or Nonqualified
Stock Options may be granted to Employees of the Company under the Plan but only
Nonqualified Stock Options may be granted to Non-Employee Directors and
Consultants under the Plan.

                                   ARTICLE II

                                   DEFINITIONS

     As used herein, the following definitions shall apply.

     "Affiliate" has the meaning set forth in Rule 12b-2 of the General Rules
and Regulations of the Securities Exchange Act of 1934, as amended.

     "Agreement" shall mean a written agreement entered into in accordance with
Paragraph 5(c).

     "Board" shall mean the Board of Directors of the Company.

     "Change of Control" means the approval by the Company's shareholders of (a)
a merger or consolidation of the Company with or into another corporation (other
than a merger or consolidation in which the Company is the surviving corporation
and which does not result in any capital reorganization or reclassification or
other change in the Company's then outstanding shares of common stock), (b) a
sale or disposition of all or substantially all of the Company's assets, or (c)
a plan of liquidation or dissolution of the Company.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

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     "Committee" shall mean the Compensation Committee of the Board. If the
Board does not have a Compensation Committee, the Board shall constitute the
Compensation Committee.

     "Common Stock" shall mean the common stock of the Company.

     "Company" shall mean Ruby Mining Company, a Colorado corporation.

     "Consultant" shall mean any person, including an advisor, who is not an
employee of the Company but who renders services to the Company or any
Subsidiary or Affiliate and is compensated for such services.

     "Continuous Service" shall mean the absence of any interruption or
termination of service as an Employee or Consultant of the Company or a
Subsidiary or Affiliate. Continuous Service shall not be considered interrupted
in the case of (a) sick leave, military leave or any other leave of absence
approved by the Company, (b) transfers between payroll locations of the Company
or between the Company, an Affiliate or a successor, (c) a Director's
performance of services in an emeritus or advisory capacity, or (d) changes
between a Participant's status as an Employee or Director provided the
Participant is continuously performing services for the Company or an Affiliate.

     "Director" shall mean any member of the Board and any member of the board
of directors of any Affiliate that the Board has by resolution designated as
being eligible for participation in this Plan.

     "Disability" shall mean a physical or mental condition, which in the sole
and absolute discretion of the Committee, is reasonably expected to be of
indefinite duration and to substantially prevent a Participant from fulfilling
his or her duties or responsibilities to the Company or an Affiliate.

     "Effective Date" shall mean the date specified in Section 12.01 hereof.

     "Employee" shall mean any person (including, if appropriate, any Officer or
Director) employed by the Company or by any Subsidiary or Affiliate of the
Company. The Payment by the Company of a director's fee to a Director shall not
be sufficient to constitute "employment" of such Director by the Company.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Exercise Price" shall mean the price per Optioned Share at which an Option
may be exercised.

     "Fair Market Value" shall mean the fair market value of the Common Stock,
as determined under Section 7.02 hereof.

     "Incentive Stock Option" shall mean any stock option granted to an Employee
under the Plan, which the Committee intends at the time it is granted to be an
incentive stock option within the meaning of Section 422 of the Code.

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     "Named Executive" shall mean any individual who, on the last day of the
Company's fiscal year, is the chief executive officer of the Company (or is
acting in such capacity) or among the four most highly compensated officers of
the Company (other than the chief executive officer). Such officer status shall
be determined pursuant to the executive compensation disclosure rules under the
Exchange Act.

     "Non-Employee Director" shall mean any person who is a member of the Board
but is not an Employee of the Company and has not been an Employee of the
Company or any subsidiary of the Company at any time during the preceding twelve
(12) months. Service as a director does not in itself constitute employment for
purposes of this definition.

     "Nonqualified Stock Option" shall mean any stock option granted to an
Employee, Non-Employee Director or Consultant under the Plan which is not a
stock option within the meaning of Section 422 of the Code.

     "Option" shall mean an Incentive Stock Option or a Nonqualified Stock
Option granted pursuant to this Plan.

     "Optioned Shares" shall mean Shares subject to an Option granted pursuant
to this Plan.

     "Participant" shall mean any person who receives an Option pursuant to the
Plan.

     "Permanent and Total Disability" shall mean, as determined by the
Committee, an illness or injury of a potentially permanent nature, expected to
last for a continuous period of at least twelve (12) months, certified by a
physician selected by or satisfactory to the Committee, which prevents the
Participant from engaging in any occupation for wage or profit for which the
Participant is reasonably fitted by training, education or experience.

     "Plan" shall mean this Ruby Mining Company 2002 Stock Option Plan.

     "Rule 16b-3" shall mean Rule 16b-3 promulgated under the Exchange Act, as
amended, or any successor provision.

     "Share" shall mean one share of Common Stock.

     "Year of Service" shall mean a full twelve-month period, measured from the
grant date of an Option and each annual anniversary of that date, during which a
Participant has not terminated Continuous Service for any reason.

                                  ARTICLE III

                          TERM OF THE PLAN AND OPTIONS

     SECTION 3.01. TERM OF THE PLAN. This Plan shall remain in effect until
terminated by the Board. Termination of the Plan shall not affect any Options
previously granted, and such Options shall remain valid and in effect until they
have been earned and paid, or by their terms expire or are forfeited. No Option
shall be granted under the Plan after ten years from the Effective Date.

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     SECTION 3.02. TERM OF OPTIONS. The term of each Option granted under the
Plan shall be established by the Committee, but shall not exceed 10 years;
provided, however, that in the case of an Employee who owns Shares representing
more than 10% of the outstanding Common Stock at the time an Incentive Stock
Option is granted, the term of such Incentive Stock Option shall not exceed five
years.

                                   ARTICLE IV

                           SHARES SUBJECT TO THE PLAN

     Except as otherwise required under Article 9, the aggregate number of
Shares deliverable pursuant to Options shall be in such amounts as the Board of
Directors or the Compensation Committee shall determine from time to time. The
number of Shares initially reserved under the Plan shall be 4,500,000. Such
Shares may either be authorized but unissued Shares, Shares held in treasury, or
Shares held in a grantor trust created by the Company. If any Option should
expire, become unexercisable, or be forfeited for any reason, the Shares subject
to the Option shall, unless the Plan shall have been terminated, be available
for the grant of additional Options under the Plan.

                                   ARTICLE V

                           ADMINISTRATION OF THE PLAN

     SECTION 5.01. COMPOSITION OF THE COMMITTEE. The Committee shall administer
the Plan. In the absence at any time of a duly appointed Committee, the Board
shall administer the Plan.

     SECTION 5.02. POWERS OF THE COMMITTEE. Except as limited by the express
provisions of the Plan or by resolutions adopted by the Board, the Committee
shall have sole and complete authority and discretion (a) to select Participants
and grant Options, (b) to determine the form and content of Options to be issued
under the Plan, (c) to interpret the Plan, (d) to prescribe, amend and rescind
rules and regulations relating to the Plan, and (e) to make other determinations
necessary or advisable for the administration of the Plan. The Committee shall
have and may exercise such other power and the Board may delegate authority as
to it from time to time. A majority of the entire Committee shall constitute a
quorum and the action of a majority of the members present at any meeting at
which a quorum is present, or acts approved in writing by a majority of the
Committee without a meeting, shall be deemed the action of the Committee.

     SECTION 5.03. AGREEMENT. Each Option granted by the Committee shall be
evidenced by a written agreement containing such provisions as may be approved
by the Committee. Each such Agreement shall constitute a binding contract
between the Company and the Participant and every Participant who enters into an
Agreement shall be bound by the terms and restrictions of the Plan and of such
Agreement. The terms of each Agreement shall be in accordance with the Plan, but
each Agreement may include such additional provisions and restrictions as the
Committee, in its discretion may determine, provided that such additional
provisions and restrictions are not inconsistent with the terms of the Plan. In
particular, the Committee shall set

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forth in each Agreement (a) the Exercise Price of the Option, (b) the number of
Shares subject to, and the expiration date of, the Option, (c) the manners,
times and rates (cumulative or otherwise) of exercise or vesting of such Option,
and (d) the restrictions, if any, placed upon such Option or upon Shares which
may be issued upon exercise of such Option.

     The Chairman of the Committee and such other Directors and officers as
shall be designated by the Committee are hereby authorized to execute Agreements
on behalf of the Company and to cause them to be delivered to the recipients of
the Options.

     SECTION 5.04. EFFECT OF THE COMMITTEE'S DECISIONS. All decisions,
determinations and interpretations of the Committee shall be final and
conclusive on all persons affected thereby.

     SECTION 5.05. INDEMNIFICATION. In addition to such other rights of
indemnification as they may have, the members of the Committee shall be
indemnified by the Company in connection with any claim, action, suit or
proceeding relating to any action taken or failure to act under or in connection
with the Plan or any Option granted hereunder to the full extent provided for
under the Company's governing instruments with respect to the indemnification of
Directors.

                                   ARTICLE VI

                                GRANT OF OPTIONS

     SECTION 6.01. GENERAL RULE. The Committee shall have the discretion to
grant Non-Employee Directors, Directors (including members of the Committee),
Consultants and Employees Options to purchase Optioned Shares, which shall be
subject to any restrictions or conditions imposed pursuant to Article 15 of this
Plan. SECTION 6.02. SPECIAL RULES FOR INCENTIVE STOCK OPTIONS. The aggregate
Fair Market Value, as of the date the Option is granted, of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by
an Employee during any calendar year (under all incentive stock option plans, as
defined in Section 422 of the Code, of the Company or any present or future
Affiliate of the Company) shall not exceed $100,000. Notwithstanding the
foregoing, the Committee may grant Options in excess of the foregoing
limitations, in which case such Options granted in excess of such limitation
shall be treated as Nonqualified Stock Options. For purposes of this Section
6.02, Incentive Stock Options shall be taken into account in the order in which
they were granted, and the Fair Market Value of the Shares shall be determined
as of the date of grant of such Option.

                                  ARTICLE VII

                           EXERCISE PRICE FOR OPTIONS

     SECTION 7.01. OPTION EXERCISE PRICE.

          (a)  The per share exercise price for the Shares to be issued pursuant
     to exercise of an Option shall be such price as is determined by the
     Committee, but shall be subject to the following:

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               (i)   In the case of an Incentive Stock Option

                     (A) granted to an Employee who, at the time of the grant of
               such Incentive Stock Option, owns stock representing more than
               ten percent (10%) of the voting power of all classes of stock of
               the Company or any Parent or Subsidiary, the per share exercise
               price shall be no less than 110% of the Fair Market Value per
               Share on the date of grant.

                     (B) granted to any Employee, the per share exercise price
               shall be no less than 100% of the Fair Market Value per Share on
               the date of grant.

              (ii)   In the case of a Nonstatutory Stock Option

                     (A) granted to a person who, at the time of the grant of
               such Option, owns stock representing more than ten percent (10%)
               of the voting power of all classes of stock of the Company or any
               Parent or Subsidiary, the per Share exercise price shall be no
               less than 110% of the Fair Market Value per Share on the date of
               the grant.

                     (B) granted to a person who, at the time of the grant of
               such Option, is a Named Executive of the Company, the per share
               Exercise Price shall be no less than 100% of the Fair Market
               Value on the date of grant of such Option is intended to qualify
               as performance-based compensation under Section 162(m) of the
               Code.

                     (C) granted to any person, the per Share exercise price
               shall be no less than 85% of the Fair Market Value per Share on
               the date of grant.

     SECTION 7.02. STANDARDS FOR DETERMINING FAIR MARKET VALUE. The Fair Market
Value of the Optioned Shares shall be determined as follows:

          (a) If the Common Stock is listed on any established stock exchange or
     a national market system including without limitation the National Market
     of the National Association of Securities Dealers, Inc. Automated Quotation
     ("NASDAQ") System, its Fair Market Value shall be the closing sales price
     for such stock (or the closing bid, if no sales were reported) as quoted on
     such system or exchange on the date of determination (or if no trading or
     bids occurred on the date of determination, on the last trading day prior
     to the date of determination), as reported in The Wall Street Journal or
     such other source as the Committee deems reliable;

          (b) If the Common Stock is quoted on the NASDAQ System (but not on the
     National Market thereof) or regularly quoted by a recognized securities
     dealer but selling prices are not reported, its Fair Market Value shall be
     the mean between the high bid and low asked prices for the Common Stock for
     the date of determination (or if no bids occurred on the date of
     determination, on the last trading day prior to the date of determination);
     or

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          (c) In the absence of an established market for the Common Stock, the
     Fair Market Value thereof shall be determined in good faith by the
     Committee.

                                  ARTICLE VIII

                               EXERCISE OF OPTIONS

     SECTION 8.01. GENERALLY. Any Option granted hereunder shall be exercisable
at such times and under such conditions as determined by the Committee,
consistent with the terms of the Plan, and reflected in the Option Agreement,
including any vesting requirements and/or performance criteria with respect to
the Company and/or the Optionee.

     Notwithstanding the foregoing, each Participant shall become (100%) vested
immediately (a) upon termination of the Participant's Continuous Service due to
the Participant's Disability or death, or (b) termination of the Participant's
Continuous Service within 12 months following a Change in Control, unless such
termination was for "Cause" as defined in Section 8.03 below. An Option may not
be exercised for a fractional Share.

     SECTION 8.02. PROCEDURE FOR EXERCISE. A Participant may exercise an Option,
subject to provisions relative to its termination and limitations on its
exercise, only by (a) written notice of intent to exercise the Option with
respect to a specified number of Shares, and (b) payment to the Company
(contemporaneously with delivery of such notice) (i) in cash, (ii) by check,
(iii) by delivery of a promissory note with such recourse, interest, security
and redemption provisions as the Committee determines to be appropriate (subject
to the provisions of Section 153 of the Delaware General Corporation Law);
provided that the term of such promissory note shall not exceed twelve (12)
months, or (iv) any combination of (i) through (iii). Each such notice (and
payment where required) shall be delivered, or mailed by prepaid registered or
certified mail, addressed to the President or Chief Executive Officer of the
Company at its executive offices.

     SECTION 8.03. PERIOD OF EXERCISABILITY. Except to the extent otherwise
provided herein or in the terms of an Agreement, an Option may be exercised by a
Participant only while he has maintained Continuous Service from the date of the
grant of the Option, or within three months after termination of such Continuous
Service (but not later than the date on which the Option would otherwise
expire).

          (a)  DEATH.

               (i) If the Optionee shall die at any time after the date an
          Option is granted and prior to any termination hereof, the executor or
          administrator of the estate of the Optionee or the person or persons
          to whom the Option shall have been validly transferred by the executor
          or the administrator pursuant to will or the laws of descent and
          distribution shall have the right, during the period ending one (1)
          year after the date of the Optionee's death, to exercise the Option to
          the extent

          that it was exercisable at the date of death and shall not have been
          exercised. Any Options not exercised within said time period shall
          terminate and all rights thereunder shall cease. In the event of the
          Optionee's death, any Options not vested as of the date of the
          Optionee's death shall become immediately vested; provided, however,
          that the Optionee was continuously employed by the Company, or
          continuously served on the Board or as a Consultant for at least three
          years, or such shorter period as the Committee determines in its sole
          discretion.

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               (ii) Notwithstanding the foregoing, no transfer of an Option by
          will or the laws of descent and distribution shall be effective to
          bind the Company unless the Company shall have been furnished with
          written notice thereof and an authenticated copy of the will and/or
          such other evidence as the Committee may deem necessary to establish
          the validity of the transfer and the acceptance by the transferee or
          transferees of the terms and conditions of the Option.

          (b) PERMANENT AND TOTAL DISABILITY. If the Optionee becomes
     Permanently and Totally Disabled at any time after the date an Option is
     granted and prior to any termination thereof, the Optionee (or in the case
     of the Optionee becoming mentally incapacitated, his guardian or legal
     representative) shall have the right, during a period ending one (1) year
     after such Permanent and Total Disability, to exercise the Option to the
     extent that it was exercisable at the date of such Permanent and Total
     Disability and shall not have been exercised. Any Options not exercised
     within said time period shall terminate and all rights thereunder shall
     cease. In the Event of the Optionee's Permanent and Total Disability, any
     Options not vested as of the date of the Optionee's Permanent and Total
     Disability shall become immediately vested; provided, however, that the
     Optionee was continuously employed by the Company, or continuously served
     on the Board or as a Consultant for at least three (3) years, or such
     shorter period as the Committee determines in its sole discretion.

          (c) OTHER.

               (i) Upon termination of the Participant's continuous service
          within twelve (12) months of a Change in Control, all options shall
          become fully exercisable.

               (ii) Upon termination of the Participant's employment with the
          Company by Participant (other than due to death or Permanent and Total
          Disability) or by the Company (other than for Cause), any Options not
          vested as of the date of the Participant's termination shall
          immediately terminate and all rights thereunder shall cease unless the
          Committee determines otherwise in its sole discretion. If a
          registration statement has been declared effective under the
          Securities Act of 1933, as amended, relating to the issuance of shares
          under the Plan, vested Options shall terminate ninety (90) days after
          termination of Optionee's employment with the Company and all rights
          under such Options shall cease unless the Committee determines
          otherwise in its sole discretion. If a registration statement has not
          been declared effective under the Securities Act of 1933, vested
          Options shall terminate one (1) year after termination of
          Participant's employment with the Company and all rights under such
          Options shall cease unless the Committee determines otherwise in its
          sole discretion.

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               (iii) The Participant's rights to exercise such Options shall
          terminate immediately upon termination of the Participant's Continuous
          Service due to "Cause" which for purposes hereof shall have the
          meaning set forth in any unexpired employment, consulting, or
          severance agreement between the Participant and the Company (and, in
          the absence of any such agreement, shall mean termination because of
          the Participant's dishonesty, incompetence, willful misconduct, breach
          of fiduciary duty involving personal profit, intentional failure to
          perform stated duties, or willful violation of any law, rule or
          regulation (other than traffic violations or similar offenses); and

               (iv) The Participant's rights to exercise such Options shall
          terminate immediately upon a determination by the Committee that the
          Participant has violated a noncompetition provision contained in any
          unexpired employment, consulting, or other written agreement between
          the Participant and the Company or an Affiliate.

     SECTION 8.04. EFFECT OF THE COMMITTEE'S DECISIONS. The Committee's
determination whether a Participant's Continuous Service has ceased, and the
effective date thereof, shall be final and conclusive on all persons affected
thereby.

     SECTION 8.05. BUY-OUT PROVISION. The Committee may at any time offer to buy
out for a payment in cash or Shares an Option previously granted under the Plan
based on such terms and conditions as the Committee shall establish and
communicate to the Optionee at the time such offer is made.

                                   ARTICLE IX

                      CHANGE IN CONTROL; EFFECT OF CHANGES
                       IN COMMON STOCK SUBJECT TO THE PLAN

     SECTION 9.01. CHANGE IN CONTROL. Upon a termination of a Participant's
Continuous Service within 12 months of a Change in Control, all Options shall
become fully exercisable, notwithstanding any other provision of the Plan or any
Agreement.

     SECTION 9.02. RECAPITALIZATIONS; STOCK SPLITS, ETC. The number and kind of
Shares reserved for issuance under the Plan, and the number and kind of Shares
subject to outstanding Options, and the Exercise Price thereof, shall be
proportionately adjusted for any increase, decrease, change or exchange of
Shares for a different number or kind of shares or other securities of the
Company which results from a merger, consolidation, recapitalization,
reorganization, reclassification, stock dividend, split-up, combination of
shares, or similar event in which the number or kind of shares is changed
without the receipt or payment of consideration by the Company.

     SECTION 9.03. TRANSACTIONS IN WHICH THE COMPANY IS NOT THE SURVIVING
ENTITY. In the event of (a) the liquidation or dissolution of the Company, (b) a
merger or consolidation in which the Company is not the surviving entity, or (c)
the sale or disposition of all or substantially all of the Company's assets (any
of the foregoing to be referred to herein as a "Transaction"), all

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outstanding Options, together with the Exercise Prices thereof, shall be
equitably adjusted for any change or exchange of Shares for a different number
or kind of shares or other securities which results from the Transaction, and
the forfeiture provisions set forth in subsections 8(c)(2) and 17(c) shall
automatically become null and void.

     SECTION 9.04. SPECIAL RULE FOR INCENTIVE STOCK OPTIONS. Any adjustment made
pursuant to Sections 9.02 and 9.03 shall be made in such a manner as not to
constitute a modification, within the meaning of Section 424(h) of the Code, of
outstanding Incentive Stock Options.

     SECTION 9.05. CONDITIONS AND RESTRICTIONS ON NEW, ADDITIONAL, OR DIFFERENT
SHARES OR SECURITIES. If, by reason of any adjustment made pursuant to this
Article IX, a Participant becomes entitled to new, additional, or different
shares of stock or securities, then, except as expressly provided in this
Article IX, such new, additional, or different shares of stock or securities
shall thereupon be subject to all of the conditions and restrictions which were
applicable to the Shares pursuant to this Plan and any applicable Agreement
before the adjustment was made. No fractional shares of Company Stock resulting
from any adjustments made pursuant to this Article IX shall be issued upon
exercise of an Option, but the Fair Market Value of any such fractional share
shall be paid in cash upon such exercise.

     SECTION 9.06. OTHER ISSUANCES. Except as expressly provided in this
Section, the issuance by the Company, a Subsidiary or an Affiliate of shares of
stock of any class, or of securities convertible into Shares or stock of another
class, for cash or property or for labor or services either upon direct sale or
upon the exercise of rights or warrants to subscribe therefor, shall not affect,
and no adjustment shall be made with respect to, the number, class, or Exercise
Price of Shares then subject to Options or reserved for issuance under the Plan.

     SECTION 9.07. CERTAIN SPECIAL DIVIDENDS. The Exercise Price of Shares
subject to outstanding Options shall be proportionately adjusted upon the
payment of a special large and nonrecurring dividend that has the effect of a
return of capital to the stockholders.

                                   ARTICLE X

                 NON-TRANSFERABILITY OF INCENTIVE STOCK OPTIONS

     Incentive Stock Options may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent and distribution. Notwithstanding the foregoing, or any other provision
of this Plan, a Participant who holds Nonqualified Stock Options may transfer
such Nonqualified Stock Options to his or her spouse, lineal ascendants, lineal
descendants, or to a duly established trust for the benefit of one or more of
these individuals. The Nonqualified Stock Options so transferred may thereafter
be transferred only to the Participant who originally received the grant or to
an individual or trust to whom the Participant could have initially transferred
the Nonqualified Stock Options pursuant to this Article 10. Nonqualified Stock
Options which are transferred pursuant to this Article 10 shall be exercisable
or earned by the transferee according to the same terms and conditions as
applied to the Participant.

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                                   ARTICLE XI

                            TIME OF GRANTING OPTIONS

     The date of grant of an Option shall, for all purposes, be the later of the
date on which the Committee makes the determination of granting such Option and
the Effective Date. Notice of the determination shall be given to each
Participant to whom an Option is so granted within a reasonable time after the
date of such grant.

                                  ARTICLE XII

                                 EFFECTIVE DATE

     The Plan shall become effective January 1, 2002, subject to its approval by
a favorable vote of at least a majority of the total votes cast at a duly called
meeting, or written consent in lieu thereof, of the Company's stockholders held
in accordance with Applicable Laws.

                                  ARTICLE XIII

                             MODIFICATION OF OPTIONS

     At any time, and from time to time, the Board may authorize the Committee
to direct execution of an instrument providing for the modification of any
outstanding Option, provided no such modification shall confer on the holder of
said Option any right or benefit which could not be conferred on him by the
grant of a new Option at such time, or impair the Option without the consent of
the holder of the Option.

                                  ARTICLE XIV

                      AMENDMENT AND TERMINATION OF THE PLAN

     The Board may from time to time amend the terms of the Plan and, with
respect to any Shares at the time not subject to Options, suspend or terminate
the Plan. No amendment, suspension or termination of the Plan shall, without the
consent of any affected holders of an Option, alter or impair any rights or
obligations under any Option theretofore granted.

                                   ARTICLE XV

                       CONDITIONS UPON ISSUANCE OF SHARES

     SECTION 15.01. INVESTMENT ASSURANCES. The Company may require a
Participant, as a condition of exercising or acquiring stock under any Option
grant, (i) to give written assurances satisfactory to the Company as to the
Participant's knowledge and experience in financial and business matters and/or
to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters and that he
or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Option grant; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring the stock subject to the Option grant for the

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Participant's own account and not with any present intention of selling or
otherwise distributing the stock. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if (iii) the issuance
of the shares upon the exercise or acquisition of stock under the Option grant
has been registered under a then currently effective registration statement
under the Securities Act or (iv) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the stock.

     SECTION 15.02. SPECIAL CIRCUMSTANCES. The inability of the Company to
obtain approval from any regulatory body or authority deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder
shall relieve the Company of any liability in respect of the non-issuance or
sale of such Shares. As a condition to the exercise of an Option, the Company
may require the person exercising the Option to make such representations and
warranties as may be necessary to assure the availability of an exemption from
the registration requirements of federal or state securities law.

     SECTION 15.03. REPURCHASE RIGHT; DAMAGES. The Company shall have the right
to forfeit Shares (in the case of Optioned Shares, in exchange for any Exercise
Price paid by the Participant) that a Participant receives pursuant to an Option
if the Participant breaches a noncompetition provision in any unexpired
employment, consulting or other written agreement between the Participant and
the Company or an Affiliate. If a Participant has disposed of such Shares, the
Company may seek compensatory damages from the Participant, as well as seek
specific performance for the sale to the Company of such other Shares that the
Participant owns or controls (but only to the extent necessary to provide the
Company with the recovery contemplated in the preceding sentence).

     SECTION 15.04. COMMITTEE DISCRETION. The Committee shall have the
discretionary authority to impose in Agreements such restrictions on Shares as
it may deem appropriate or desirable, including but not limited to the authority
to impose a right of first refusal, or to establish repurchase rights, or to pay
an Optionee the in-the-money value of his Option in consideration for its
cancellation, or all or any combination of these or other restrictions.

                                  ARTICLE XVI

                              RESERVATION OF SHARES

     The Company, during the term of the Plan, will reserve and keep available a
number of Shares sufficient to satisfy the requirements of the Plan.

                                       12
<PAGE>

                                  ARTICLE XVII

                                 WITHHOLDING TAX

     As a condition of the exercise of an Option granted under the Plan, the
Participant (or in the case of the Participant's death, the person exercising
the Option) shall make such arrangements as the Committee may require for the
satisfaction of any applicable federal, state, local or foreign withholding tax
obligations that may arise in connection with the exercise of the Option and the
issuance of Shares. The Company shall not be required to issue any Shares under
the Plan until such obligations are satisfied. The Committee, in its discretion,
may permit the Participant to satisfy the obligation, in whole or in part, by
irrevocably electing to have the Company withhold Shares, or to deliver to the
Company Shares that he already owns, having a value equal to the amount required
to be withheld. The value of the Shares to be withheld, or delivered to the
Company, shall be based on the Fair Market Value of the Shares on the date the
amount of tax to be withheld is determined. As an alternative, the Company may
retain, or sell without notice, a number of such Shares sufficient to cover the
amount required to be withheld.

                                 ARTICLE XVIII

                              NO SHAREHOLDER RIGHTS

     No Participant shall have any voting or dividend rights or other rights of
a stockholder in respect of any Shares covered by an Option prior to the time
said Shares are actually distributed to him.

                                  ARTICLE XIX

                          NO EMPLOYMENT OR OTHER RIGHTS

     In no event shall an Employee's or Director's eligibility to participate or
participation in the Plan create or be deemed to create any legal or equitable
right of the Employee, Director, or any other party to continue employment by or
service with the Company or any Affiliate. No Employee or Director shall have a
right to be granted an Option or, having received an Option, the right to again
be granted an Option. An Employee or Director who has been granted an Option
however, if otherwise eligible, may be granted an additional Option or Options.

                                   ARTICLE XX

                                  GOVERNING LAW

     The Plan shall be governed by and construed in accordance with the laws of
the State of Georgia, except to the extent that federal law shall be deemed to
apply.

                  [Remainder of page intentionally left blank]

                                       13<PAGE>

                                                            Exhibit 4.3
                                                            -----------

                                SOLUTIA INC.

                            OFFICERS' CERTIFICATE

         Each of the undersigned officers of Solutia Inc., a Delaware
corporation (the "Company"), does hereby certify as follows:

         1. Each of the undersigned has read Sections 201, 301 and 303 of
the Indenture, dated as of  , 2002 (the "Indenture"), between the Company
and JPMorgan Chase Bank, as Trustee (the "Trustee"), and the definitions in
such Indenture relating thereto and the resolutions referred to below and
has reviewed such other corporate documents and records relating to the
matters referred to herein as the undersigned deemed necessary or
appropriate in order to give this Certificate, and, in the opinion of the
undersigned, has made such examination or investigation as is necessary to
enable him to express an informed opinion on the matters set forth below.

         2. The terms of the series of Securities of the Company entitled
the " % Senior Notes due  , 2007" (the "Notes") to be issued under the
Indenture have been established pursuant to a Board Resolution (as defined
in the Indenture) and are set forth in Annex A, and in Exhibits A through D
hereto.

         3. All conditions precedent provided for in the Indenture relating
to the establishment and original issuance, authentication and delivery of
the Notes have been complied with.

         4. In the opinion of the undersigned, Section 301 of the Indenture
has been complied with in the establishment of the terms of the Notes.

                          [Signature page follows]

<PAGE>
<PAGE>

         IN WITNESS WHEREOF, each of the undersigned has executed this
Officers' Certificate as of this   day of  , 2002.

                                     ------------------------
                                     Name:
                                     Title:

                                     ------------------------
                                     Name:
                                     Title:

                                    -2-

<PAGE>
<PAGE>

                                   ANNEX A

                     DETERMINATION BY AUTHORIZED OFFICER

                              JANUARY ___, 2002

By resolutions adopted on December 12, 2001 (the "Resolutions"), the Board
of Directors (the "Board") of Solutia Inc. (the "Company") authorized the
Chairman of the Board, the President, or the Chief Financial Officer of the
Company, any delegate of the Chief Financial Officer, and any one of them
acting alone ("Authorized Officers"), to determine the terms of certain
financing arrangements for issuing debt securities. By a Determination by
Authorized Officer made on January __, 2002, the Treasurer, pursuant to
authority delegated by the Chief Financial Officer, approved the terms and
conditions of (a) the Indenture, to be dated as of January __, 2002 (the
"Indenture"), between the Company and JPMorgan Chase Bank, as Trustee, and
(b) the Underwriting Agreement between the Company and the Representatives
of the several Underwriters named in the Underwriting Agreement.

Now therefore, the undersigned hereby approves pursuant to authority
delegated by the Chief Financial Officer on January __, 2002, the following:

         1.       the creation, issuance, and sale of $___,___,___ aggregate
                  principal amount of its ___% senior notes due 2007 (the
                  "Notes") to be issued under the Indenture;

         2.       the terms of the Notes in accordance with Section 301 of
                  the Indenture (as set forth in Schedule I hereto);

         3.       the form of the Notes in accordance with Section 201 of
                  the Indenture (as set forth in Schedule II);

         4.       the form of the prospectus supplement for the Upper DECS
                  (including the Notes), such prospectus supplement to be
                  dated January ___, 2002;

         5.       the form of remarketing agreement substantially in the
                  form attached as Exhibit B; and

         6.       the Pledge Agreement among the Company, the Forward
                  Purchase Contract Agent and Wachovia Bank, N.A., as
                  Collateral Agent, Custodial Agent and Securities
                  Intermediary, dated as of  , 2002.

                                      By _________________________________

                                               Name:

                                               Title:

                                    A-1

<PAGE>
<PAGE>

                                 SCHEDULE I

                           TERMS OF THE SECURITIES

         Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Indenture or the Forward Purchase
Contract Agreement (the "Forward Purchase Contract Agreement," attached as
Exhibit A hereto) between the Company and JPMorgan Chase Bank, as Forward
Purchase Contract Agent (the "Forward Purchase Contract Agent"), dated as of
 , 2002.

         The series of Securities authorized hereby shall be the " % Senior
Notes due  , 2007" of the Company (the "Notes").

         The aggregate principal amount of Notes that may be authenticated
and delivered under the Indenture in accordance with this Officers'
Certificate is initially limited to $ , subject to increase to $  in case of
the exercise of the over-allotment option under the Underwriting Agreement,
except for Notes authenticated and delivered upon registration of transfer
of, or in exchange for, other Notes pursuant to Sections 304, 305, 906 or
1107 of the Indenture and or any Notes which, pursuant to Section 303, are
deemed never to have been authenticated and delivered under the Indenture;
provided, however, that the Company may, without the consent of Holders of
the Notes, create and issue additional Notes ranking equally with the Notes
and otherwise similar in all respects so that such further Notes would be
consolidated and form a single series of the Notes.

         Subject to the terms and conditions set forth in the form of Note
(attached as Exhibit B hereto), the Notes will mature on  . The Notes will
initially pay interest at the annual rate of  % on each  ,  ,   and  ,
commencing on  , 2002, for quarterly payments due on or before  . If the
Notes are successfully remarketed pursuant to the terms set forth in the
Remarketing Agreement (the "Remarketing Agreement," attached as Exhibit C
hereto) between the Company, the Remarketing Agent and the Forward Purchase
Contract Agent, the Remarketing Agent will reset the interest rate on the
Notes (including Notes not participating in the remarketing) and the Notes
will thereafter pay interest at the annual rate equal to the Reset Rate. If
the Notes are not successfully remarketed prior to the Stock Purchase Date,
the Notes will continue to pay interest at the initial annual rate of  %.
The Notes are not redeemable prior to their stated maturity except as
described below.

         The amount of interest payable for any period will be computed (1)
for any full quarterly period, on the basis of a 360-day year of twelve
30-day months, (2) for any period shorter than a full quarterly period, on
the basis of a 30-day month and (3) for periods of less than a month, on the
basis of the actual number of days elapsed per 30-day month. Notwithstanding
Section 113 of the Indenture, in the event that any date on which interest
is payable on the Notes is not a Business Day, the payment of the interest
payable on that date will be made on the next succeeding day that is a
Business Day, without any interest or other payment in respect of the delay,
except that, if the Business Day is in the next succeeding calendar year,
then the payment will be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the scheduled payment
date.

         In case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal thereof may be declared, and upon
such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

         Each Note will initially be pledged to secure the Holder's
obligations under the Forward Purchase Contract, pursuant to the terms and
conditions set forth in the Pledge Agreement ("Pledge Agreement," attached
as Exhibit D hereto) among the Company, the Forward Purchase Contract Agent
and Wachovia Bank, N.A., as Collateral Agent, Custodial Agent and Securities
Intermediary, dated as of  , 2002.

         The Notes held by each Holder of an Upper DECS will be subject to a
remarketing, unless the Holder elects not to participate in the remarketing,
in accordance with the terms and conditions set forth in the Forward
Purchase Contract Agreement.

                                    A-2

<PAGE>
<PAGE>

         On or prior to the fourth Business Day immediately preceding the
first day of a Remarketing Period, Holders of Notes that are not components
of Upper DECS may elect to have their Notes remarketed in the same manner as
Notes that are components of Upper DECS by delivering their Notes along with
a notice of this election (substantially in the form of Exhibit C to the
Pledge Agreement) to the Custodial Agent prior to the beginning of a
Remarketing Period, but no earlier than the Payment Date immediately
preceding  . The Collateral Agent will hold the Notes in an account separate
from the Collateral Account in which the pledged Notes will be held. Holders
of Notes electing to have their Notes remarketed will also have the right to
withdraw that election on or prior to the fifth Business Day immediately
preceding the first day of the relevant Remarketing Period.

         If a Tax Event occurs and is continuing, the Company may, at its
option, redeem the Notes in whole, but not in part, at any time at the
Redemption Price (as defined in the Forward Purchase Contract Agreement).
The Company shall give the Trustee written notice of the Redemption Price
promptly after the calculation thereof. Installments of interest on Notes
which are due and payable on or prior to the Tax Event Redemption Date will
be payable to Holders of the Notes registered as such at the close of
business on the relevant record dates. If, following the settlement of the
Forward Purchase Contracts and following the occurrence of a Tax Event, the
Company exercises its option to redeem the Notes, the proceeds of the
redemption will be payable in cash to the Holders of the Notes. If the Tax
Event Redemption occurs prior to a successful remarketing of the Notes, the
Redemption Price for the Notes forming part of Upper DECS at the time of the
Tax Event Redemption will be distributed to the Collateral Agent, who in
turn will purchase the applicable Treasury Portfolio on behalf of the
Holders of Upper DECS and remit the remainder of the Redemption Price, if
any, to the Forward Purchase Contract Agent for payment to the Holders. The
Treasury Portfolio will be substituted for corresponding Notes and will be
pledged to the Collateral Agent to secure the obligations of the Holders of
the Upper DECS to purchase shares of the Company's Common Stock under the
Forward Purchase Contracts.

         Notice of any Tax Event Redemption will be mailed at least 30 days
but not more than 60 days before the Redemption Date to each registered
Holder of Notes to be redeemed at its registered address. If money
sufficient to pay the Redemption Price is deposited on or before the
Redemption Date and the other conditions set forth in the Indenture are
satisfied, then on and after such date, interest will cease to accrue on the
Notes called for redemption. In the event any Notes are called for
redemption, neither the Company nor the Trustee will be required to register
the transfer of or exchange the Notes to be redeemed.

         If a Last Failed Remarketing occurs, Holders of Notes shall have
the right (the "Put Option") to put any such Notes to the Company on the
Stock Purchase Date (the "Put Option Exercise Date"), upon at least three
Business Days' prior notice, for $25, plus accrued and unpaid interest to
the Put Option Exercise Date (the "Note Repayment Price").

         In order for the Notes to be repurchased on the Put Option Exercise
Date, the Trustee must receive on or prior to 5:00 P.M., New York City time,
on the third Business Day immediately preceding the Put Option Exercise
Date, at its Corporate Trust Office, (i) in the case of Notes that are in
certificated form, the Notes to be repurchased with the form attached hereto
as Exhibit E (the "Option Form") duly completed, or (ii) in the case of
Notes which are Global Securities, the Option Form duly completed. Any such
notice received by the Trustee shall be irrevocable. All questions as to the
validity, eligibility (including time of receipt) and acceptance of the
Notes for repayment shall be determined by the Company, whose determination
shall be final and binding.

         Payment of the Note Repayment Price to or on behalf of Holders of
Separate Notes shall be made either through the Trustee, subject to the
Trustee's receipt of payment from the Company in accordance with the terms
of the Indenture or through the Company acting as Paying Agent, no later
than 12:00 noon, New York City time, on the Put Option Exercise Date, and to
such account as may be designated by such Holders. Payment of the Note
Repayment Price to or on behalf of Holders of Pledged Notes shall be made on
behalf of the Holder to the Collateral Agent. If the Trustee holds
immediately available funds sufficient to pay the Note Repayment Price of
the Notes for which the Put Option is exercised then, immediately prior to
the close of business on the Business Day immediately preceding the Put
Option Exercise Date, such Notes will cease to be Outstanding and interest
thereon will cease to accrue, and all other rights of the

                                    A-3

<PAGE>
<PAGE>

Holder in respect of the Notes, including the Holder's right to require the
Company to repay such Notes, shall terminate and lapse (other than the right
to receive the Note Repayment Price upon delivery of the Notes if the Notes
are in certificated form, but without interest on such Note Repayment Price
from the Business Day immediately preceding the Put Option Exercise Date).
Neither the Trustee nor the Company will be required to register the
transfer of any Notes for which repayment has been elected.

         Notes that are released from the pledge following substitution or
early settlement will be issued in the form of one or more global
certificates, referred to as "Global Securities," registered in the name of
the Depositary or its nominee. Except as provided below and except upon
recreation of Upper DECS, owners of beneficial interests in such a Global
Security will not be entitled to receive physical delivery of Notes in
certificated form and will not be considered the Holders (as defined in the
Indenture) thereof for any purpose under the Indenture, and no Global
Security representing Notes shall be exchangeable, except for another Global
Security of like denomination and tenor to be registered in the name of the
Depositary or its nominee or a successor Depositary or its nominee.
Accordingly, each beneficial owner must rely on the procedures of the
Depositary or if such person is not a participant, on the procedures of the
participant through which such person owns its interest to exercise any
rights of a Holder under the Indenture. The Depository Trust Company shall
be the initial Depositary.

         In the event that: (1) the Depositary notifies the Company that it
is unwilling or unable to continue as a Depositary for the Global Security
certificates and no successor Depositary has been appointed within 90 days
after this notice, (2) the Depositary at any time ceases to be a Depositary
registered under the Securities Exchange Act at which time the Depositary is
required to be so registered to act as the Depositary and no successor
Depositary has been appointed within 90 days after the Company learns that
the Depositary has ceased to be so registered, (3) the Company determines in
its sole discretion that it will no longer have the Notes represented by
Global Securities or will permit the Global Security certificates to be so
exchangeable or (4) an Event of Default under the Indenture has occurred and
is continuing, the Company will execute, and subject to Article 3 of the
Indenture, the Trustee, upon written notice from the Company, will
authenticate and deliver the Notes in definitive registered form without
coupons, in authorized denominations and in an aggregate principal amount
equal to the principal amount of the Global Security in exchange for such
Global Security.

         Upon exchange of the Global Security for such Notes in definitive
registered form without coupons, in authorized denominations, the Global
Security shall be cancelled by the Trustee. Such Notes in definitive
registered form issued in exchange for the Global Security shall be
registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Notes to the Depositary for delivery to the persons in whose
names such Notes are so registered.

         The principal of and interest on the Notes shall be payable at the
Corporate Trust Office of the Trustee; provided, however, that at the option
of the Company, payment of interest may be made by check mailed to the
address of the Person entitled thereto as it shall appear in the Security
Register or by wire transfer to an account in the United States designated
to the Trustee by a prior written notice by such Person delivered at least
five Business Days prior to the applicable Interest Payment Date.

         The Notes will be issued in denominations of $25 and integral
multiples of $25.

         The Notes shall not have the benefit of a sinking fund and shall
not be exchangeable into shares of the Company's Common Stock.

         The provisions of Section 403 (defeasance) and 1010 (covenant
defeasance) of the Indenture shall apply to the Notes.

                                    A-4

<PAGE>
<PAGE>

                                 SCHEDULE II

                                FORM OF NOTE

         [For inclusion in Global Securities only - Unless this certificate
is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the Issuer (as defined below) or
its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.

         THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR
REGISTERED OR EXCHANGED IN WHOLE OR IN PART FOR, A SECURITY REGISTERED IN
THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

                                SOLUTIA INC.

                          % Senior Note due  , 2007

Number: __                                                CUSIP NO.: ______

         Solutia Inc., a Delaware corporation (the "Issuer", which term
includes any successor issuer under the Indenture hereafter referred to),
for value received, hereby promises to pay to [For inclusion in Global
Securities only - Cede & Co.] or registered assigns, the principal sum of
____________ [For inclusion in Global Securities and Pledged Notes only - or
such other principal sum as is reflected in the Schedule of Increases or
Decreases attached hereto] on  , and to pay interest thereon at  % per annum
(the "Interest Rate"), from  , 2002, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, quarterly
in arrears on  ,  ,   and   of each year, commencing  , 2002 through and
including  , and at the Reset Rate thereafter. The amount of interest
payable for any period will be computed (1) for any full quarterly period on
the basis of a 360-day year of twelve 30-day months and (2) for any period
shorter than a full quarterly period, on the basis of a 30-day month and (3)
for periods of less than a month, on the basis of the actual number of days
elapsed per 30-day month. Notwithstanding Section 113 of the Indenture, in
the event that any date on which interest is payable on this Note is not a
Business Day, then payment of interest payable on such date will be made on
the next succeeding day which is a Business Day (and without any interest or
other payment in respect of any such delay), except that, if the Business
Day is in the next succeeding calendar year, then the payment will be made
on the immediately preceding Business Day, in each case with the same force
and effect as if made on such Interest Payment Date. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities, as
defined in said Indenture) is registered at the close of business on the
Regular Record Date for such interest installment which in the case of a
Global Security or a Pledged Note shall be the Business Day next preceding
such Interest Payment Date and in the case of all other Notes, shall be the
fifteenth calendar day preceding such Interest Payment Date. Any such
interest installment not punctually paid or duly provided for on any
Interest Payment Date shall forthwith cease to be payable to the registered
Holders on such Regular Record Date and may be paid to the Person in whose
name this Note (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date to be fixed by

                                    B-1

<PAGE>
<PAGE>

the Trustee for the payment of such Defaulted Interest, notice whereof shall
be given to the registered Holders of this series of Notes not less than 10
days prior to such Special Record Date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities
exchange, if any, on which the Notes may be listed, and upon such notice as
may be required by such exchange all as more fully provided in the
Indenture. The principal of (and premium, if any) and the interest on this
Note shall be payable at the office or agency of the Issuer maintained for
that purpose in the Borough of Manhattan, the City of New York, in any coin
or currency of the United States of America that at the time of payment is
legal tender for payment of public and private debts; provided, however,
that payment of interest may be made at the option of the Company by check
mailed to the Person entitled thereto at such address as shall appear in the
Security Register or by wire transfer to an account in the United States
designated to the Trustee by a prior written notice by such Person delivered
at least five Business Days prior to the applicable Interest Payment Date.

         Reference is made to the further provisions of this Note set forth
on the reverse hereof. Such further provisions shall for all purposes have
the same effect as though fully set forth at this place.

         This Note shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been executed by
the Trustee under the Indenture referred to on the reverse hereof by manual
signature.

                          [Signature page follows]

                                    B-2

<PAGE>
<PAGE>

         IN WITNESS WHEREOF, Solutia Inc. has caused this instrument to be
signed by one of its duly authorized officers and has caused a facsimile of
its corporate seal to be affixed hereunto or imprinted hereon.

                                  SOLUTIA INC.

                                  By:
                                           ___________________________________
                                           Name:
                                                    __________________________
                                           Title:
                                                  ____________________________

ATTEST:

Name:    _________________________
Title:   _________________________

                        CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

Dated:

JPMORGAN CHASE BANK, as Trustee

By: ___________________________________
         Authorized Officer

                                    B-3

<PAGE>
<PAGE>

                              [REVERSE OF NOTE]

                                SOLUTIA INC.

                          % SENIOR NOTE DUE  , 2007

         This Note is one of a duly authorized issue of debentures, notes,
bonds or other evidences of indebtedness of the Issuer (hereinafter called
the "Securities") of the series hereinafter specified, all issued or to be
issued under and pursuant to an Indenture dated as of  , 2002 (herein called
the "Indenture"), duly executed and delivered by the Issuer to JPMorgan
Chase Bank, as Trustee (herein called the "Trustee"), as supplemented by an
Officers' Certificate dated  , 2002 (the "Officers' Certificate"), to which
Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, limitations of rights, obligations, duties
and immunities thereunder of the Trustee, the Issuer and the Holders of the
Securities. The Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates,
may be subject to different redemption provisions (if any) and may otherwise
vary as provided in the Indenture.

         This Note is one of a series designated as the  % Senior Notes due
  , 2007 (the "Notes") of the Issuer. The Notes are initially limited in
aggregate principal amount of $ , subject to increase to $  in case of the
exercise of the over-allotment option under the Underwriting Agreement;
provided, however, that the Issuer may, without the consent of the Holders
of the Notes, create and issue additional notes ranking equally with the
Notes and otherwise similar in all respects so that such further notes would
be consolidated and form a single series of the Notes.

         [For inclusion in Global Securities only - Except as otherwise
provided in the Indenture, this Note will be issued in global form only
registered in the name of The Depository Trust Company ("DTC") or its
nominee. This Note will not be issued in definitive form, except as
otherwise provided in the Indenture, and ownership of this Note shall be
maintained in book-entry form by DTC for the accounts of participating
organizations of DTC.]

         In case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon
such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

         The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of
the Company and the rights of the Holders of the Securities of each series
to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of 66 2/3% in principal amount of
the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Security.

         As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or
trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Securities of this series, the Holders of not less than
25% in principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from
the Holders of a majority in principal amount of Securities of this series
at the time Outstanding a direction inconsistent

                                    B-4

<PAGE>
<PAGE>

with such request, and shall have failed to institute any such proceeding,
for 60 days after receipt of such notice, request and offer of indemnity.
The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed
herein.

         No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on
this Note in the manner, at the respective times, at the rate and in the
coin or currency herein prescribed.

         The Notes are issuable only in registered form without coupons in
denominations of $25 and any integral multiple thereof at the office or
agency of the Issuer in the Borough of Manhattan, The City of New York, or
at such other locations as the Issuer may from time to time designate, and
in the manner and subject to the limitations provided in the Indenture.
Notes may be exchanged for a like aggregate principal amount of Notes of
other authorized denominations. No service charge shall be made for any
registration of transfer or exchange, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

         The Notes shall be redeemable in whole, but not in part, at any
time at the option of the Issuer if a Tax Event occurs and is continuing (a
"Redemption Date"), at a redemption price equal to the Redemption Amount,
plus accrued and unpaid interest, if any, to the Redemption Date. The
Redemption Amount will be calculated assuming a 360-day year consisting of
twelve 30-day months. Notwithstanding the foregoing, installments of
interest on Notes that are due and payable on an Interest Payment Date
falling on or prior to the Redemption Date will be payable to the Holders of
such Notes registered as such at the close of business on the relevant
record date according to the terms and the provisions of the Indenture.

         Subject to the terms of the Forward Purchase Contract Agreement
(the "Forward Purchase Contract Agreement") between the Issuer and JPMorgan
Chase Bank, as Forward Purchase Contract Agent (the "Forward Purchase
Contract Agent"), dated as of  , 2002 and the Pledge Agreement dated as of
 , 2002 among the Company, the Forward Purchase Contract Agent and Wachovia
Bank, N.A., as Collateral Agent, Custodial Agent and Securities Intermediary
(the "Pledge Agreement"), the Redemption Price shall be paid to or on behalf
of each Holder of the Notes by the Issuer, no later than 12:00 noon, New
York City time, on the Redemption Date, by check or wire transfer in
immediately available funds, at such place and to such account as may be
designated by each such Holder, or to the Collateral Agent.

         "Redemption Amount" means in the case of a Tax Event Redemption
occurring prior to a successful remarketing of the Notes, for each Note the
product of the principal amount of the Note and a fraction whose numerator
is the Treasury Portfolio Purchase Price and whose denominator is the
aggregate Outstanding principal amount of Notes, and in the case of a Tax
Event Redemption occurring after a successful remarketing of the Notes, the
Stated Amount of the Notes.

         "Remarketing Agent" means a nationally recognized investment
banking firm chosen by the Issuer to determine the Reset Rate.

         "Reset Rate" means the lowest interest rate per annum (rounded to
the nearest one-thousandth (0.001) of one percent per annum), as determined
by the Remarketing Agent, that the Notes shall bear in order for the Notes
to have a market value at the Remarketing Date or any Subsequent Remarketing
Date, as the case may be, of  % of the Remarketing Value, assuming, for this
purpose, even if not true, that all of the Notes are held as components of
Upper DECS and will be remarketed; provided, however, that if there has been
a Failed Remarketing, the Reset Rate will be equal to the Interest Rate
until (i) the Notes are successfully remarketed pursuant to the Forward
Purchase Contract Agreement and the Remarketing Agreement or (ii) if the
Last Failed Remarketing shall have occurred, the principal of the Notes is
paid or made available for payment.

         "Tax Event" means the receipt by the Issuer of an opinion of a
nationally recognized tax counsel experienced in such matters to the effect
that there is more than an insubstantial risk that interest payable by

                                    B-5

<PAGE>
<PAGE>

the Issuer on the Notes on the next interest payment date would not be
deductible, in whole or in part, by the Issuer for United States federal
income tax purposes as a result of any amendment to, change in, or announced
proposed change in, the laws, or any regulations thereunder, of the United
States or any political subdivision or taxing authority thereof or therein
affecting taxation, any amendment to or change in an official interpretation
or application of any such law or regulations by any legislative body,
court, governmental agency or regulatory authority or any official
interpretation or pronouncement that provides for a position with respect to
any such laws or regulations that differs from the generally accepted
position as of the date of the Forward Purchase Contract Agreement which
amendment, change, or proposed change is effective or which interpretation
or pronouncement is announced on or after such date.

         "Treasury Portfolio Purchase Price" means the lowest aggregate
price quoted by a primary United States government securities dealer in The
City of New York to the Quotation Agent on the third Business Day
immediately preceding the Redemption Date for the purchase of the Treasury
portfolio for settlement on the Redemption Date.

         Notice of any redemption must be given at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be
redeemed at its registered address. If money sufficient to pay the
Redemption Amount (or portion thereof) to be redeemed on the Redemption Date
is deposited on or before the Redemption Date and the other conditions set
forth in the Indenture are satisfied, then on and after such date, interest
will cease to accrue on the Notes called for redemption.

         If a Last Failed Remarketing occurs, Holders of Notes shall have
the right (the "Put Option") to put any such Notes to the Issuer on the
Stock Purchase Date (the "Put Option Exercise Date"), upon at least three
Business Days' prior notice, for $25, plus accrued and unpaid interest to
the Put Option Exercise Date (the "Note Repayment Price").

         In order for the Notes to be repurchased on the Put Option Exercise
Date, the Trustee must receive on or prior to 5:00 P.M., New York City time,
on the third Business Day immediately preceding the Put Option Exercise
Date, at its Corporate Trust Office, (i) in the case of Notes that are in
certificated form, the Notes to be repurchased with the Option to Elect
Repayment form attached hereto (the "Option Form") duly completed, or (ii)
in the case of Notes which are Global Securities, the Option Form duly
completed. Any such notice received by the Trustee shall be irrevocable. All
questions as to the validity, eligibility (including time of receipt) and
acceptance of the Notes for repayment shall be determined by the Issuer,
whose determination shall be final and binding. The payment of the Note
Repayment Price in respect of such Notes shall be made no later than 12:00
noon, New York City time, on the Put Option Exercise Date.

         The Notes are not entitled to any sinking fund.

         Upon due presentment for registration of transfer of this Note at
the office or agency of the Issuer in the Borough of Manhattan, The City of
New York, or at such other locations as the Issuer may from time to time
designate, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without
charge except for any tax or other governmental charge imposed in connection
therewith. In the event any Notes are called for redemption, neither the
Issuer nor the Trustee will be required to register the transfer of or
exchange the Notes to be redeemed.

         Prior to due presentment of this Note for registration of transfer,
the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat
the Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

         No recourse under or upon any obligation, covenant or agreement of
the Issuer in the Indenture or any indenture supplemental thereto or in any
Note, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer or director, as
such, of the Issuer or of any successor corporation, either directly or
through the Issuer or any successor corporation, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment
or by any

                                    B-6

<PAGE>
<PAGE>

legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance hereof and as part of the
consideration of the issue hereof.

         This Note shall for all purposes be governed by, and construed in
accordance with, the laws of the State of New York.

         Terms used herein which are defined in the Indenture, the Forward
Purchase Contract Agreement or the Pledge Agreement shall have the
respective meanings assigned thereto in the Indenture, the Forward Purchase
Contract Agreement or the Pledge Agreement

                                    B-7

<PAGE>
<PAGE>

                                 ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assigns) and transfer(s)
unto:

(Please insert social security or other identifying number of assignee)

the within Note and all rights thereunder, hereby irrevocably constituting
and appointing such person attorney to transfer such Note on the books of
the Issuer, with full power of substitution in the premises.

Dated:  ________________   Signed:  __________________________________

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within Note in every particular without
alteration or enlargement or any change whatsoever.

Signature Guarantee

                                    B-8

<PAGE>
<PAGE>

           [TO BE ATTACHED TO GLOBAL SECURITIES AND PLEDGED NOTES]

                     SCHEDULE OF INCREASES OR DECREASES

         The following increases or decreases in this [Global Security]
[Pledged Note] have been made:

<TABLE>
<S>       <C>                         <C>                      <C>                           <C>
Date      Amount of increase in       Amount of decrease       Principal amount of Note      Signature of authorized
          principal amount of Note    in principal amount      evidenced by the [Global      officer or Trustee or
          evidenced by the [Global    of Note evidenced by     Security] [Pledged Note]      Securities Custodian
          Security] [Pledged Note]    the [Global Security]    following such increase
                                      [Pledged Note]           or decrease
</TABLE>

                                    B-9

<PAGE>
<PAGE>

                          OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably requests and instructs the Issuer to, in
the event of a Last Failed Remarketing, repay $ ________________ principal
amount of the $ __________________ aggregate principal amount of Notes held
by the undersigned, pursuant to the terms of the Notes, on the "Put Option
Exercise Date," together with any interest thereon accrued but unpaid to the
date of repayment, to the undersigned at:

(Please print or type Name and Address of the Undersigned)

and [insert if Note is in certificated form only - to issue to the
undersigned, pursuant to the terms of the Indenture, a new Note or Notes
representing the remaining aggregate principal amount of the undersigned's
Notes].

For this Option to Elect Repayment to be effective, [insert if Note is in
certificated form only - the undersigned's Notes, with] this Option to Elect
Repayment form duly completed, must be received by the Trustee at JPMorgan
Chase Bank, 450 West 33rd Street, 15th Floor, New York, NY 10001, Attn:
Institutional Trust Services, no later than 5:00 p.m. at least three
Business Days prior to  .

Dated: ___________________          Signature: _______________________________

                                    Signature Guarantee: _____________________

Note: The signature to this Option to Elect Repayment must correspond with
the name as written upon the face of the Notes for which the Put Option is
being exercised in every particular without alteration or enlargement or any
change whatsoever.

                                    B-10

<PAGE>
<PAGE>

                                  EXHIBIT A

                     FORWARD PURCHASE CONTRACT AGREEMENT

                                    A-1

<PAGE>
<PAGE>

                                  EXHIBIT B

                        FORM OF REMARKETING AGREEMENT

<PAGE>
<PAGE>

                                  EXHIBIT C

                              PLEDGE AGREEMENT

<PAGE>
<PAGE>

                                  EXHIBIT D

                          OPTION TO ELECT REPAYMENT

The undersigned hereby irrevocably requests and instructs the Issuer to, in
the event of a Last Failed Remarketing, repay $ _____________ principal
amount of the _____ aggregate principal amount of Notes held by the
undersigned, pursuant to the terms of the Notes, on the "Put Option Exercise
Date," together with any interest thereon accrued but unpaid to the date of
repayment, to the undersigned at:

(Please print or type Name and Address of the Undersigned)

and [insert if Note is in certificated form only - to issue to the
undersigned, pursuant to the terms of the Indenture, a new Note or Notes
representing the remaining aggregate principal amount of the undersigned's
Notes].

For this Option to Elect Repayment to be effective, [insert if Note is in
certificated form only - the undersigned's Notes, with] this Option to Elect
Repayment form duly completed, must be received by the Trustee at JPMorgan
Chase Bank, 450 West 33rd Street, 15th Floor, New York, NY 10001, Attn:
Institutional Trust Services, no later than 5:00 p.m. at least three
Business Days prior to  .

Dated: ___________________          Signature: _______________________________

                                    Signature Guarantee: _____________________

Note: The signature to this Option to Elect Repayment must correspond with
the name as written upon the face of the Notes for which the Put Option is
being exercised in every particular without alteration or enlargement or any
change whatsoever.

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