Document:

EXHIBIT
4.2

    

    

    MANHATTAN
BRIDGE CAPITAL, INC.

    2009 STOCK OPTION
PLAN

    

    

    SECTION
1.PURPOSE

    

    The purposes of the 2009 Stock Option
Plan (the “Plan”) are to align the interests of officers, other key employees,
consultants and non-employee directors of Manhattan Bridge Capital, Inc. (the
“Company”) and its subsidiaries with those of the shareholders of the Company,
to afford an incentive to such officers, employees, consultants and directors to
continue as such, to increase their efforts on behalf of the Company and to
promote the success of the Company’s business.  To further such
purposes, the Compensation Committee may grant options to purchase Common
Shares.  The provisions of the Plan are intended to satisfy the
requirements of Section 16(b) of the Securities Exchange Act of 1934 and of
Section 162(m) of the Internal Revenue Code of 1986, as amended, and shall be
interpreted in a manner consistent with the requirements thereof, as now or
hereafter construed, interpreted and applied by regulations, rulings and
cases.

    

    

    SECTION
2.DEFINITIONS

    

    As used in this Plan, the following
terms and phrases shall have the meanings set forth below:

    

    (a)      
     “Agreement” shall mean a written agreement entered
into between the Company and an Optionee in connection with an award under the
Plan.

    

    (b)       
    “Board” shall mean the Board of Directors of the
Company.

    

    (c)
            “Cause”
when used in connection with the termination of an Optionee's employment by the
Company or the cessation of an Optionee's service as a consultant or a member of
the Board, shall mean (i) the conviction of the Optionee for the commission of a
felony, (ii) the willful and continued failure by the Optionee substantially to
perform his duties and obligations to the Company or a Subsidiary (other than
any such failure resulting from his incapacity due to Disability), or (iii) the
willful engaging by the Optionee in misconduct that is demonstrably injurious to
the Company or a Subsidiary.  For purposes of this Section 2(c), no
act, or failure to act, on an Optionee's part shall be considered “willful”
unless done, or omitted to be done, by the Optionee in bad faith and without
reasonable belief that his action or omission was in the best interest of the
Company.  The Compensation Committee shall determine whether a
termination of employment is for Cause for purposes of the Plan.

    

    (d)            “Change
in Control” shall mean the occurrence of the event set forth in any of the
following events:

    

    (i) 
 any Person (as defined below) is or becomes the beneficial owner (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), directly
or indirectly, of securities of the Company (not including in the securities
beneficially owned by such Person any securities acquired directly from the
Company or its subsidiaries) representing 50% or more of the combined voting
power of the Company's then outstanding securities; or

     

    (ii) 
the following individuals cease for any reason to constitute a majority of the
number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board
or nomination for election by the Company's shareholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or

     

    
      
         

      

      
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    (iii)
there is consummated a merger or consolidation of the Company or a direct or
indirect subsidiary thereof with any other corporation, other than (A) a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with
the ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, at least 50% of the combined voting power
of the securities of the Company or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (B) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the beneficial owner,
directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired directly
from the Company or its subsidiaries) representing 50% or more of the combined
voting power of the Company's then outstanding securities; or

     

    (iv) the
shareholders of the Company approve a plan of complete liquidation or
dissolution of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the Company's assets,
other than a sale or disposition by the Company of all or substantially all of
the Company's assets to an entity, at least 50% of the combined voting power of
the voting securities of which are owned by Persons in substantially the same
proportions as their ownership of the Company immediately prior to such
sale.

    

    For purposes of this Section 2(d),
“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company
or any of its subsidiaries, (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities, or (iv) a corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

    

    (e)            “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to
time.

    

    (f)             “Compensation
Committee” shall mean the Compensation Committee of the Board, composed of no
fewer than two directors, each of whom is a “non-employee director” within the
meaning of Rule 16b-3(b)(3) of the Exchange Act, an “outside director” within
the meaning of Section 162(m) of the Code, or any successor provision thereto,
and independent under the rules of the NASDAQ Capital Market.

    

    (g)            “Common
Shares” shall mean the common shares, par value $0.001 per share, of the
Company.

    

    (h)            “Company”
shall mean Manhattan Bridge Capital, Inc., a corporation organized under the
laws of the State of New York, or any successor corporation.

    

    (i)             “Disability”
shall mean an Optionee’s inability to perform his duties with the Company or on
the Board by reason of any medically determinable physical or mental impairment,
as determined by a physician selected by the Optionee and acceptable to the
Company.

    

    (j)             “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

    

    (k)            “Fair
Market Value” per share as of a particular date shall mean (i) if the Common
Shares are then listed on a national securities exchange, the closing sales
price per Common Share on the national securities exchange on which the Common
Shares are principally traded for the last preceding date on which there was a
sale of such Common Shares on such exchange, or (ii) if the Common Shares are
then traded in an over-the-counter market, the closing bid price for the Common
Shares in such over-the-counter market for the last preceding date on which
there was a sale of such Common Shares in such market, or (iii) if the Common
Shares are not then listed on a national    securities
exchange or traded in an over-the-counter market, such value as the Compensation
Committee, in its sole discretion, shall determine.

     

    
      
         

      

      
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    (l)             “Incentive
Stock Option” shall mean any option intended to be and designated as an
incentive stock option within the meaning of Section 422 of the
Code.

    

    (m)          
“Non-employee Director” shall mean a member of the Board who is not an employee
of the Company.

    

    (n)            “Nonqualified
Stock Option” shall mean an Option granted that is not intended to be an
Incentive Stock Option.

    

    (o)            “Option”
shall mean the right, granted hereunder, to purchase Common
Shares.  Options granted by the Compensation Committee pursuant to the
Plan may constitute either Incentive Stock Options or Nonqualified Stock
Options.

    

    (p)            “Optionee”
shall mean a person who receives a grant of an Option.

    

    (q)            “Option
Price” shall mean the purchase price of the Common Shares underlying an
Option.

    

    (r)             “Parent”
shall mean any company (other than the Company) in an unbroken chain of
companies ending with the Company if, at the time of granting an Option, each of
the companies other than the Company owns stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the
other companies in such chain.

    

    (s)            “Plan”
shall mean this Manhattan Bridge Capital, Inc. 2009 Stock Option
Plan.

    

    (t)             “Prior
Plan” shall mean the Company’s 1999 Stock Option Plan.

    

    (u)            “Retirement”
shall mean the retirement of an Optionee in accordance with the terms of any
tax-qualified retirement plan maintained by the Company or a Subsidiary in which
the Optionee participates.  If the Optionee is not a participant in
such a plan, such term shall mean the termination of the Optionee’s employment
or cessation of the Optionee's service as a member of the Board, other than by
reason of death, Disability or Cause on or after attainment of the age of
65.

    

    (v)            “Rule
16b-3” shall mean Rule 16b-3, as from time to time in effect, promulgated by the
Securities and Exchange Commission under Section 16 of the Exchange Act,
including any successor to such Rule.

    

    (w)           “Subsidiary”
shall mean any company (other than the Company) in an unbroken chain of
companies beginning with the Company if, at the time of granting an Option, each
of the companies other than the last company in the unbroken chain owns stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other companies in such chain.

    

    (x)            “Ten
Percent Stockholder” shall mean an Optionee who, at the time an Incentive Stock
Option is granted, owns (or is deemed to own pursuant to the attribution rules
of Section 424(d) of the Code) stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any
Parent or Subsidiary.

    

    
      
         

      

      
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    SECTION
3.ADMINISTRATION

    

    The Plan shall be administered by the
Compensation Committee, the members of which shall, except as may otherwise be
determined by the Board, be “non-employee directors” under Rule 16b-3 and
“outside directors” under Section 162(m) of the Code.

    

    The
Compensation Committee shall have the authority in its discretion, subject to
and not inconsistent with the express provisions of the Plan, to administer the
Plan and to exercise all the powers and authorities either specifically granted
to it under the Plan or necessary or advisable in the administration of the
Plan, including, without limitation, the authority to grant Options; to
determine which Options shall constitute Incentive Stock Options and which
Options shall constitute Nonqualified Stock Options; to determine the Option
Price; to determine the persons to whom, and the time or times at which awards
shall be granted; to determine the number of shares to be covered by each award;
to interpret the Plan; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the Agreements
(which need not be identical) and to cancel or suspend awards, as necessary; and
to make all other determinations deemed necessary or advisable for the
administration of the Plan.

    

    The Compensation Committee may delegate
to one or more of its members or to one or more agents such administrative
duties as it may deem advisable, including delegating to one or more of the
Company's management employees the authority to grant Options to employees who
are not “insiders” for purposes of Section 16 of the Exchange Act and who are
not “covered employees” for purposes of Section 162(m) of the Code, and the
Compensation Committee or any person to whom it has delegated duties as
aforesaid may employ one or more persons to render advice with respect to any
responsibility the Compensation Committee or such person may have under the
Plan.  The Board shall have sole authority, unless expressly delegated
to the Compensation Committee, to grant Options to Non-employee
Directors.  All decisions, determination and interpretations of the
Compensation Committee shall be final and binding on all Optionees of any awards
under this Plan.

    

    The Board shall have the authority to
fill all vacancies, however caused, in the Compensation
Committee.  The Board may from time to time appoint additional members
to the Compensation Committee, and may at any time remove one or more
Compensation Committee members.  One member of the Compensation
Committee shall be selected by the Board as chairman.  The
Compensation Committee shall hold its meetings at such times and places as it
shall deem advisable.  All determinations of the Compensation
Committee shall be made by a majority of its members either present in person or
participating by conference telephone at a meeting or by written
consent.  The Compensation Committee may appoint a secretary and make
such rules and regulations for the conduct of its business as it shall deem
advisable, and shall keep minutes of its meetings.

    

    No member of the Board or Compensation
Committee shall be liable for any action taken or determination made in good
faith with respect to the Plan or any award granted hereunder.

    

    

    SECTION
4.ELIGIBILITY

    

    Options may be granted to officers and
other key employees of and consultants to the Company, and its Subsidiaries,
including officers and directors who are employees, and to Non-employee
Directors.  In determining the persons to whom awards shall be granted
and the number of shares to be covered by each award, the Compensation Committee
shall take into account the duties of the respective persons, their present and
potential contributions to the success of the Company and such other factors as
the Compensation Committee shall deem relevant in connection with accomplishing
the purpose of the Plan.

    

    
      
         

      

      
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    SECTION
5.STOCK

    

    The maximum number of Common Shares
reserved for the grant of awards under the Plan shall be 200,000, subject to adjustment
as provided in Section 9 hereof.  Such shares may, in whole or in
part, be authorized but unissued shares or shares that shall have been or may be
required by the Company.

    

    If any outstanding Option granted under
this Plan should for any reason expire, be canceled or be forfeited without
having been exercised in full, the Common Shares allocable to the unexercised,
canceled or terminated portion of such award shall (unless the Plan shall have
been terminated) become available for subsequent grants of Options under the
Plan.

    

    If any outstanding Option granted under
Prior Plan should for any reason expire, be canceled or be forfeited without
having been exercised in full, the Common Shares allocable to the unexercised,
canceled or terminated portion of such award shall not become available for
subsequent grants of Options under this Plan.

    

    

    SECTION
6.TERMS AND CONDITIONS OF OPTIONS

    

    Each Option granted pursuant to the
Plan shall be evidenced by an Agreement, in such form and containing such terms
and conditions as the Compensation Committee shall from time to time approve,
which Agreement shall comply with and be subject to the following terms and
conditions, unless otherwise specifically provided in such Option
Agreement:

    

    (a)            Number of
Shares.  Each Option Agreement shall state the number of Common
Shares to which the Option relates.

    

    (b)            Type of
Option.  Each Option Agreement shall specifically state that
the Option constitutes an Incentive Stock Option or a Nonqualified Stock
Option.

    

    (c)    
        Option
Price.  Each
Option Agreement shall state the Option Price, which shall not be less than one
hundred percent (100%) of the Fair Market Value of the Common Shares covered by
the Option on the date of grant unless, with respect to Nonqualified Stock
Options, otherwise determined by the Compensation Committee.  The
Option Price shall be subject to adjustment as provided in Section 9
hereof.  The date as of which the Compensation Committee adopts a
resolution expressly granting an Option shall be considered the day on which
such Option is granted, unless such resolution specifies a future different
date.

     

    (d)       
    Medium and Time of
Payment.  The Option Price shall be paid in full, at the time
of exercise, in cash or in Common Shares then owned by the Optionee having a
Fair Market Value equal to such Option Price or in a combination of cash and
Common Shares or, unless the Compensation Committee shall determine otherwise,
by a cashless exercise procedure through a broker-dealer.

     

    (e)            Exercise Schedule and Period
of Options.  Each Option Agreement shall provide the exercise
schedule for the Option as determined by the Compensation Committee; provided, however, that, the
Compensation Committee shall have the authority to accelerate the exercisability
of any outstanding Option at such time and under such circumstances as it, in
its sole discretion, deems appropriate.  The exercise period shall be
five (5) years from the date of the grant of the Option unless otherwise
determined by the Compensation Committee; provided, however, that, in the
case of an Incentive Stock Option, such exercise period shall not exceed five
(5) years from the date of grant of such Option.  The exercise period
shall be subject to earlier termination as provided in Sections 6(f) and 6(g)
hereof.  An Option may be exercised, as to any or all full Common
Shares as to which the Option has become exercisable, by written notice
delivered in person or by mail to the Secretary of the Company, specifying the
number of shares of Common Shares with respect to which the Option is being
exercised.  Notwithstanding any other provision of this Plan, no
Option granted hereunder may be exercised prior to the consummation of an
underwritten public offering of the Company’s securities where the gross
proceeds from such offering are in excess of $5 million.

     

    
      
         

      

      
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    (f)             Termination.  Except
as provided in this Section 6(f) and in Section 6(g) hereof, an Option may not
be exercised unless (i) with respect to an Optionee who is an employee of the
Company or a Subsidiary (or a Parent or Subsidiary company of such company
issuing or assuming the Option), the Optionee is then in the employ of the
Company or a Subsidiary (or a company or a Parent or Subsidiary company of such
company issuing or assuming the Option in a transaction to which Section 424(a)
of the Code applies), and unless the Optionee has remained continuously so
employed since the date of grant of the Option and (ii) with respect to an
Optionee who is a Non-employee Director, the Optionee is then serving as a
member of the Board or as a member of a board of directors of a company or a
Parent or Subsidiary company of such company issuing or assuming the
Option.  In the event that the employment of an Optionee shall
terminate or the service of an Optionee as a member of the Board shall cease
(other than by reason of death, Disability, Retirement or Cause), all Options of
such Optionee that are exercisable at the time of such termination may, unless
earlier terminated in accordance with their terms, be exercised within ninety
(90) days after the date of such termination or service (or such different
period as the Compensation Committee shall prescribe).

    

    (g)            Death, Disability or
Retirement of Optionee.  If an Optionee shall die while
employed by the Company or a Subsidiary or serving as a member of the Board, or
within ninety (90) days after the date of termination of such Optionee's
employment or cessation of such Optionee's service (or within such different
period as the Compensation Committee may have provided pursuant to Section 6(f)
hereof), or if the Optionee's employment shall terminate or service shall cease
by reason of Disability or Retirement, all Options theretofore granted to such
Optionee (to the extent otherwise exercisable) may, unless earlier terminated in
accordance with their terms, be exercised by the Optionee or by his beneficiary,
at any time within one year after the death, Disability or Retirement of the
Optionee (or such different period as the Compensation Committee shall
prescribe).  In the event that an Option granted hereunder shall be
exercised by the legal representatives of a deceased or former Optionee, written
notice of such exercise shall be accompanied by a certified copy of letters
testamentary or equivalent proof of the right of such legal representative to
exercise such Option.  Unless otherwise determined by the Compensation
Committee, Options not otherwise exercisable on the date of termination of
employment shall be forfeited as of such date.

    

    (h)      
     Other
Provisions.  The Option Agreements evidencing awards under the
Plan shall contain such other terms and conditions not inconsistent with the
Plan as the Compensation Committee may determine, including penalties for the
commission of competitive acts and a provision providing that no option may be
exercised prior to the consummation of an underwritten initial public offering
of the Company's securities pursuant to a registration statement filed pursuant
to the Securities Act of 1933, as amended.

    
 

    SECTION
7.NON DISCRETIONARY GRANTS

    

    Each director of the Company, other
than a director who is an officer, employee or beneficial owner of 10% or more
of the Company’s Common Shares (or an officer, director, employee or affiliate
thereof), upon first taking office shall be granted options for 7,000 Common
Shares.

    

    

    SECTION
8.NONQUALIFIED STOCK OPTIONS

    

    Options granted pursuant to Section 7
hereof are intended to constitute Nonqualified Stock Options and shall be
subject only to the general terms and conditions specified in Section 6
hereof.

    

    

    SECTION
9.INCENTIVE STOCK OPTIONS

    

    Options granted pursuant to this
Section 9 are intended to constitute Incentive Stock Options and shall be
subject to the following special terms and conditions, in addition to the
general terms and conditions specified in Section 6 hereof.  An
Incentive Stock Option may not be granted to a Non-employee Director or a
consultant to the Company.

    

    
      
         

      

      
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    (a)           Value of
Shares.  The aggregate Fair Market Value (determined as of the
date the Incentive Stock Option is granted) of the Common Shares with respect to
which Incentive Stock   Options granted under this Plan and all
other option plans of any subsidiary become exercisable for the first time by
each Optionee during any calendar year shall not exceed $100,000.

    

    (b)           Ten Percent
Stockholder.  In the case of an Incentive Stock Option granted
to a Ten Percent Stockholder, (i) the Option Price shall not be less than one
hundred ten percent (110%) of the Fair Market Value of the Common Shares on the
date of grant of such Incentive Stock Option, and (ii) the exercise period shall
not exceed five (5) years from the date of grant of such Incentive Stock
Option.

    

    

    SECTION
10.EFFECT OF CERTAIN CHANGES

    

    (a)          
In the event of any extraordinary dividend, stock dividend, recapitalization,
merger, consolidation, stock split, warrant or rights issuance, or combination
or exchange of such shares, or other similar transactions, each of the number of
Common Shares available for awards, the number of such shares covered by
outstanding awards, and the price per share of Options, as appropriate, shall be
equitably adjusted by the Compensation Committee to reflect such event and
preserve the value of such awards; provided, however, that any fractional shares
resulting from such adjustment shall be eliminated.

    

    (b)          
Upon the
occurrence of a Change in Control, each Option granted under the Plan and then
outstanding but not yet exercisable shall thereupon become fully
exercisable.

    

    

    SECTION
11.SURRENDER AND EXCHANGE OF AWARDS

    

    The Compensation Committee may permit
the voluntary surrender of all or a portion of any Option granted under the Plan
or any option granted under any other plan, program or arrangement of the
Company or any Subsidiary (“Surrendered Option”), to be conditioned upon the
granting to the Optionee of a new Option for the same number of Common Shares as
the Surrendered Option, or may require such voluntary surrender as a condition
precedent to a grant of a new Option to such Optionee.  Subject to the
provisions of the Plan, such new Option may be an Incentive Stock Option or a
Nonqualified Stock Option, and shall be exercisable at the price, during such
period and on such other terms and conditions as are specified by the
Compensation Committee at the time the new Option is granted.

    

    

    SECTION
12.PERIOD DURING WHICH AWARDS MAY BE GRANTED

    

    Awards may be granted pursuant to the
Plan from time to time within a period of ten (10) years from the effective date
of the Plan (see section 14), unless the Board shall terminate the Plan at an
earlier date.

    

    

    SECTION
13.NONTRANSFERABILITY OF AWARDS

    

    Except as otherwise determined by the
Compensation Committee, Options granted under the Plan shall not be sold,
assigned, transferred, pledged or otherwise encumbered by the person to whom
they are granted other than by will or by the laws of descent and distribution,
and awards may be exercised or otherwise realized, during the lifetime of the
Optionee, only by the Optionee or by his guardian or legal
representative.

    

    

    SECTION
14.EFFECTIVE DATE AND TERM OF PLAN

    

    The Plan shall be effective as of June
23, 2009 and shall terminate on the tenth anniversary of such date, unless
sooner terminated by the Board pursuant to Section 16.

    

    
      
         

      

      
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    SECTION
15.AGREEMENT BY OPTIONEE REGARDING WITHHOLDING TAXES

    

    If the Compensation Committee shall so
require, as a condition of exercise of a Nonqualified Stock Option (a “Tax
Event”), each Optionee who is not a Non-employee Director shall agree that no
later than the date of the Tax Event, such Optionee will pay to the Company or
make arrangements satisfactory to the Compensation Committee regarding payment
of any federal, state or local taxes of any kind required by law to be withheld
upon the Tax Event.  Alternatively, the Compensation Committee may
provide that such an Optionee may elect, to the extent permitted or required by
law, to have the Company deduct federal, state and local taxes of any kind
required by law to be withheld upon the Tax Event from any payment of any kind
due the Optionee.  The withholding obligation may be satisfied by the
withholding or delivery of Common Shares.  Any decision made by the
Compensation Committee under this Section 15 shall be made in its sole
discretion.

    

    

    SECTION
16.AMENDMENT AND TERMINATION OF THE PLAN

    

    The Board at any time and from time to
time may suspend, terminate, modify or amend the Plan or any portion thereof;
provided, however, that, unless
otherwise determined by the Board, an amendment that requires stockholder
approval in order for the Plan to continue to comply with Rule 16b-3, Section
162(m) of the Code or any other law, regulation or stock exchange requirement
shall not be effective unless approved by the requisite vote of
shareholders.  Except as provided in Section 10(a) hereof, no
suspension, termination, modification or amendment of the Plan may adversely
affect any award previously granted, unless the written consent of the Optionee
is obtained.

    

    

    SECTION
17.RIGHTS AS A SHAREHOLDER

    

    An Optionee or a transferee of an award
shall have no rights as a shareholder with respect to any shares covered by the
award until the date of the issuance of a stock certificate to him for such
shares.  No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distribution of
other rights for which the record date is prior to the date such stock
certificate is issued, except as provided in Section 10(a) hereof.

    

    

    SECTION
18.NO RIGHTS TO EMPLOYMENT OR SERVICE AS A DIRECTOR

    

    Nothing in the Plan or in any award
granted or Agreement entered into pursuant hereto shall confer upon any Optionee
the right to continue in the employ of the Company or any Subsidiary or as a
member of the Board or to be entitled to any remuneration or benefits not set
forth in the Plan or such Agreement or to interfere with or limit in any way the
right of the Company or any such Subsidiary to terminate such Optionee’s
employment or service.  Awards granted under the Plan shall not be
affected by any change in duties or position of an employee Optionee as long as
such Optionee continues to be employed by the Company or any
Subsidiary.

    

    

    SECTION
19.BENEFICIARY

    

    An Optionee may file with the
Compensation Committee a written designation of a beneficiary on such form as
may be prescribed by the Compensation Committee and may, from time to time,
amend or revoke such designation.  If no designated beneficiary
survives the Optionee, the executor or administrator of the Optionee's estate
shall be deemed to be the Optionee's beneficiary.

    

    

    SECTION
20.GOVERNING LAW

    

    The Plan and all determinations made
and actions taken pursuant hereto shall be governed by the laws of the State of
New York.

    

    

    
      
         

      

      
        8EXHIBIT   4.3

    

    MANHATTAN
BRIDGE CAPITAL, INC.

     

    INCENTIVE STOCK OPTION
AGREEMENT

    

    As
of ________________

     

    Manhattan Bridge Capital,
Inc., a New York corporation (the “Company”), pursuant to Section 6
of  the Company’s 2009 Stock Option Plan (the “Plan”), hereby grants
to _____________ (the “Optionee”) an incentive stock option to purchase a total
of ________ shares of the Company’s Common Stock, par value $ ___________ per
share (“Common Stock”), at the fair market value of the Common Stock on the date
of grant of this option granted on _______________ and per the terms and
conditions set forth herein and in the Plan. This option is intended to be an
incentive stock option as defined in Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”).

    
 

    
      	
               
      

            	
              1.

            	
              Duration.

            

    

     

    (a)           This
option was granted as of the date first above written.

    (b)           This
option shall expire five (5) years from the date hereof (the “Termination
Date”).

    

    
      	
               
      

            	
              2.

            	
              Price.

            

    

     

    The per
share exercise price of this option is ____,
being not less than the fair market value on the date hereof
_____).

    

    
      	
               
      

            	
              3.

            	
              Qualification as
      Incentive Stock Option.

            

    

     

    Those
options that do not meet the criteria of incentive stock options, as defined in
Section 422 of the Code, are non-qualified stock options, subject to Section 83
of the Code.

    

    
      	
               
      

            	
              4.

            	
              Written Notice of
      Exercise.

            

    

     

    This
option, to the extent it is exercisable as provided in Section 10 herein, may be
exercised only by delivering to the Secretary of the Company, at its principal
office within the time specified in Paragraph 1 hereof or such shorter time as
is otherwise provided for herein, a written notice of exercise substantially in
the form describe in Section 10.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              5.

            	
              Anti-Dilution
      Provisions.

            

    

     

    (a)           If
there is any stock dividend or recapitalization resulting in a stock split, or
combination or exchange of shares of Common Stock of the Company, the number of
shares of Common Stock then subject to this option shall be proportionately and
appropriately adjusted; no change shall be made in the aggregate purchase price
to be paid for all shares subject to this option, but the aggregate purchase
price shall be allocated among all shares subject to this option after giving
effect to the adjustment; provided, that any fractional shares resulting from
any such adjustment shall be eliminated.

    

    (b)           If
there is any other change in the Common Stock of the Company, including
recapitalization, reorganization, sale or exchange of assets, exchange of
shares, offering of subscription rights, or a merger or consolidation in which
the Company is the surviving corporation, an adjustment, if any, shall be made
in the shares then subject to this option as the Company’s Board of Directors
the (“Board”) or the Compensation Committee of the Board (the “Committee”) may
deem equitable.  Failure of the Board or the Committee to provide for
an adjustment pursuant to this subparagraph prior to the effective date of any
Company action referred to herein shall be conclusive evidence that no
adjustment is required in consequence of such action.

    

    (c)           If
the Company is merged into or consolidated with any other corporation, or if it
sells all or substantially all of its assets to any other corporation, then
either (i) the Company shall cause provisions to be made for the continuance of
this option after such event, or for the substitution for this option of an
option covering the number and class of securities and/or cash or other property
which the Optionee would have been entitled to receive in such merger or
consolidation by virtue of such sale if the Optionee had been the holder of
record of a number of shares of Common Stock of the Company equal to the number
of shares covered by the unexercised  portion of this option;
provided, only that the excess of the aggregate fair market value of the shares
subject to the options immediately after such substitution over the purchase
price thereof is not more than the excess of the aggregate fair market value of
the shares subject to such options immediately before such substitution over the
purchase price thereof, or (ii) the Company shall give the Optionee written
notice of its election not to cause such provision to be made and this option
shall become exercisable  in full (or, at the election of the
Optionee, in part) at any time during a period of ten (10) days, to be
designated by the Company, ending not more than ten (10) days prior to the
effective date of the merger, consolidation or sale, in which case this option
shall not be exercisable to any extent after the expiration of such ten (10) day
period. In no event, however, shall this option be exercisable after the
Termination Date.

    

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              6.

            	
              Investment
      Representation and Legend of
  Certificates.

            

    

     

    The
Optionee agrees that until such time as a registration statement under the
Securities Act of 1933, as amended, becomes effective with respect to the option
and/or the stock, the Optionee is taking this option and will take the stock
underlying this option, for investment and not for resale or distribution. The
Company shall have the right to place upon the face of any stock certificate or
certificates evidencing shares issuable upon the exercise of this option such
legend as the Board on the Committee may prescribe for the purpose of preventing
disposition of such shares in violation of the Securities Act of 1933, as
amended.

    

    
      	
               
      

            	
              7.

            	
              Non-Transferability.

            

    

     

    This
option shall not be transferable by the Optionee other than by will or by the
laws of descent and distribution, and is exercisable during the lifetime of the
Optionee only by the Optionee.

    

    
      	
               
      

            	
              8.

            	
              Certain Rights Not
      Conferred by Option.

            

    

     

    The
Optionee shall not, by virtue of holding this option, be entitled to any rights
of a stockholder in the Company.

    

    
      	
               
      

            	
              9.

            	
              Expenses.

            

    

     

    The
Company shall pay all original issue and transfer taxes with respect to the
issuance and transfer of shares of Common Stock of the Company pursuant hereto
and all other fees and expenses necessarily incurred by the Company in
connection therewith.

    

    
      	
               
      

            	
              10.

            	
              Exercise of
      Options

            

    

     

    (a)           This
option shall become exercisable in accordance with its terms, in
________________________ shares per installment.

    

    (b)           This
option shall be exercisable by written notice of such exercise, in the form
prescribed by the Board or the Committee, to the Secretary of the Company, at
its principal office. The notice shall specify the number of shares for which
the option is being exercised (which number, if less than all of the shares then
subject to exercise, shall be 100 or a multiple thereof) and shall be
accompanied by payment (i) in cash or by check of the amount of the full
purchase price of such shares or (ii) in such other manner as the Board or the
Committee shall deem acceptable.

    

    

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    (c)           No
shares shall be delivered upon exercise of any option until all laws, rules and
regulations which the Board or the Committee may deem applicable have been
complied with. If a registration statement under the Securities Act of 1933, as
amended, is not then in effect with respect to the shares issuable upon such
exercise, the Company may require as a condition precedent that the person
exercising the option give the Company a written representation and undertaking,
satisfactory in form and substance to the Board or the Committee, that such
person is acquiring the shares for their own account for investment and not with
a view to the distribution thereof.

    

    (d)           The
person exercising an option shall not be considered a record holder of the stock
so purchased for any purpose until the date on which such person is actually
recorded as the holder of such stock in the records of the Company.

    

    (e)           This
option shall be exercisable only so long as the Optionee shall continue to be an
employee of the Company and within the three month period after the date of
termination of his employment to the extent it was exercisable on the day prior
to the date of termination. Notwithstanding the foregoing, in no event shall
this option be exercisable after the Termination Date.

    

    (f)           Notwithstanding
the provisions of Section 10 (e) above, in the event the Optionee is unable to
continue his employment with the Company as a result of his total and permanent
disability (as defined in Section 105(d)(4) of the Internal Revenue Code of
1986, as amended), he may, but only within twelve (12) months from the date of
disability, exercise this option to the extent he was entitled to exercise it at
the date of such disability. Notwithstanding the foregoing, in no event shall
this option be exercisable after the Termination Date.

    

    (g)           Notwithstanding
the provisions of Section 10(e) above, in the event of death of the
Optionee:

    
      	
               
      

            	
              (i)

            	
              during
      the term of this option who is at the time of his death an employee of the
      Company and who shall have been in Continuous Status (as defined in the
      Plan) as an employee since the date of grant of this option, this option
      may be exercised, at any time within twelve (12) months following the date
      of death, by the Optionee’s estate or by a person who acquired the right
      to exercise this option by request or inheritance, but only to the extent
      of the right that would have accrued had the Optionee continued living one
      (1) month after the date of death;
or

            

    

    
      	
               
      

            	
              (ii)

            	
              within
      three (3) months after the termination of Continuous Status as an
      employee, this option may be exercised, at any time within three (3)
      months following the date of death, by the Optionee’s estate or by a
      person who acquired the right to exercise the option by bequest or
      inheritance, but only to the extent of the right to exercise that had
      accrued at the date of termination.

            

    

    
      	
               
      

            	
              (iii)

            	
              Notwithstanding
      the provisions of this Section (g), in no event shall this option be
      exercisable after the termination
Date.

            

    

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              11.

            	
              Continued
      Employment.

            

    

     

    Nothing
herein shall be deemed to create any employment agreement or guaranty of
continued employment or limit in any way the Company’s right to terminate
Optionee’s employment at any time.

    

    

    
      	 
      	
              Manhattan
      Bridge Capital, Inc.

            	 
	 
      	 
      	 
      	 
	 
      	
              By:

            	
                
      

            	 
	 
      	
              Name:
      Assaf Ran

            	 
	 
      	
              Title:
      President and CEO

            	 

    

    

    

    

    

    

    Accepted
as of the date

    First
set forth above:

    

    

    

    
      
        

      

    

    

    
 

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      Date:  __________

      

      

      STOCK OPTION GRANT
AGREEMENT

      

      ________________

      Stock
Optionee

      

      MANHATTAN
BRIDGE CAPITAL, INC.

      

      Manhattan Bridge Capital,
Inc., a New York corporation (the “Company”), pursuant to its 2009 Stock
Option Plan (the “Plan”) has this day granted to you, the optionee named above,
an option to purchase _______ common shares, _____ par value per share (the
“Common Shares”) of the Company pursuant to the terms set forth herein and in
the Plan. This option shall vest and shall be exercisable immediately. This
option may not be exercised to purchase the Common Shares covered hereby after
________. This option is not intended to qualify and will not be treated as an
“incentive stock option” within the meaning of Section 422 of the Internal
Revenue Code of 1986 as amended (“the Code”).

      

      The provisions of your option are as
follows:

      

      
        	I. 	
                (1) 

              	
                The
      per share exercise price of this option is____
      being not less than the fair market value of the Common Stock on the date
      of grant of this option.

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Payment
      of the exercise price per share is due in full by certified check or bank
      cashier’s check payable to the Company upon exercise of all or any part of
      the option, which is being exercised by you. However, if at the time of
      exercise, the Common Shares are publicly traded, payment of the exercise
      price may be made by delivery of already-owned Common Shares of a value
      equal to the exercise price of the Common Shares for which this option is
      being exercised. The already-owned shares must have been owned by you for
      the period required to avoid a charge to the Company’s reported earnings
      (currently six (6) months but subject to change) and owned free and clear
      of all liens, claims, encumbrances or security interests. Payment may also
      be made by a combination of cash and already-owned Common
      Stock.

              

      

      

      
        	
                II. 

              	
                The
      minimum number of shares with respect to which this option may be
      exercised at any one time is fifty (50),
except:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                if
      the number of shares vested is less than fifty (50), in which case, the
      number such vested shares shall be the minimum number of shares;
      and

              

      

      
        	
                 
      

              	
                (2)

              	
                with
      respect to the final exercise of this option, this paragraph II shall not
      apply.

              

      

       

      
 

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      
        	
                III.

              	
                Notwithstanding
      anything to the contrary contained herein, this option may not be
      exercised            unless
      the shares issuable upon exercise of this option are then registered under
      the Securities Act of 1933, as amended (the “Act”), or, if such shares are
      not then so registered, the company has determined that such exercise and
      issuance would be exempt from the registration requirements of the
      Act.

              

      

      

      
        	
                IV.

              	
                The
      term of this option commences on the date hereof and, unless sooner
      terminated as set forth below or in the Plan, terminates on the expiration
      date set forth above. This option shall terminate prior to the expiration
      of this term as follows: ninety (90) days after the termination of your
      directorship with the Company or an Affiliate of the Company (as defined
      in the Plan) for any reason or for no reason
  unless:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                such
      termination of directorship is due to your permanent and total disability
      (within the meaning of Section 422(c)(6) of the Code), in which case the
      option shall terminate on the earlier of the termination date set forth
      herein or twelve (12) months after your death;
  or

              

      

      
        	
                 
      

              	
                (2)

              	
                such
      termination of directorship is due to your death, in which case the option
      shall terminate on the earlier of the termination date set forth herein or
      twelve (12) months after your death;
or

              

      

      
        	
                 
      

              	
                (3)

              	
                during
      any part of such ninety (90) day period, the option is not exercisable
      solely because of the condition set forth in paragraph IV above, in which
      event the option shall not terminate until the earlier of the termination
      date set forth herein or until it shall have been exercisable for an
      aggregate period of three (3) months after the termination of
      directorship; or

              

      

      
        	
                 
      

              	
                (4)

              	
                exercise
      of the option within (90) days after termination of your directorship with
      the Company or with an Affiliate would result in liability under Section
      16(b) of the Securities Exchange Act of 1934, in which case the option
      will terminate on the earlier of : (i) the tenth (10th)
      day after the last date upon which exercise would result in such
      liability; or (ii) six (6) months and ten (10) days after the termination
      of your directorship with the Company or an
  Affiliate.

              

      

      

      However,
in any and all circumstances and except as to the extent the vesting schedule
has been accelerated by the Company in its sole discretion during the term of
this option or as a result of your permanent and total disability or death as
provided in paragraphs V(1) or V(2) above, respectively, this option may be
exercisable on the date of termination of directorship only as to that number of
shares as to which it was exercisable on the date of termination of directorship
under the provisions of paragraph I of this Option. For purposes of this option,
“termination of your directorship” shall mean the last date you are either an
employee of the Company or an Affiliate or engaged as a consultant or director
to the Company or an Affiliate.

      

      
        	
                V.

              	
                To
      the extent specified above, this option may be exercised by delivering a
      Notice of Exercise of Stock Option form, together with the exercise price
      to the Secretary of the Company or to such other person as the Company may
      designate, during regular business hours, together with such additional
      documents as the Company may then require pursuant to the
      Plan.

              

      

       

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
 

      
        	
                VI.

              	
                This
      option is not transferable, except by will or the laws of descent and
      distribution, and is exercisable during your life only by
    you.

              

      

      

      
        	
                VII.

              	
                This
      option is not an employment or service contract and nothing in this option
      shall be deemed to create in any way whatsoever any obligation on your
      part to continue in the employ or service of the Company, or of the
      Company to continue your employment or service with the
      Company.

              

      

      

      
        	
                VIII.

              	
                Any
      notices provided for in this option or the Plan shall be given in writing
      and shall be deemed effectively given upon receipt or, in the case of
      notices delivered by the Company to you, five (5) days after deposit in
      the United States mail, postage prepaid, addressed to you at the address
      specified in the Option Notice or at such other address as you hereafter
      designate by written notice to the
Company.

              

      

      

      
        	
                IX.

              	
                This
      option is subject to all the provisions of the Plan and its provisions are
      hereby made a part of this option, including, without limitation, the
      provisions of paragraph 6 of the Plan relating to option provisions, and
      is further subject to all interpretations, amendments, rules and
      regulations which may, from time to time, be promulgated and adopted
      pursuant to the Plan. In the event of any conflict between the provisions
      of this option (including the Option Notice) and those of the Plan, the
      provisions of the Plan shall
control.

              

      

      

      

      

      Acknowledged
and agreed as of ____________

      

      

      

      
        
          

        

      

      

      

      
        	 
      	
                Manhattan
      Bridge Capital, Inc.

              	 
	 	 	 	 
	 	 	 	 
	 
      	
                By:

              	 
      	 
	 
      	
                Name:Assaf
      Ran

              	 
	 
      	
                Title:
      President and CEO

              	 

      

      

      

      

      

      

      
        
           

        

        
          8

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