Document:

Exhibit 4.2

                            BY-LAWS

                               OF

                 COMPETITIVE TECHNOLOGIES, INC.

                  As Amended January 24, 2003

                           ARTICLE I

                    MEETING OF SHAREHOLDERS

     SECTION 1.01.  Annual Meetings.  The annual meeting of
shareholders for the election of Directors and for the
transaction of such other proper business, notice of which is
given in the notice of the meeting, shall be held on such date
and at such time and place, within or without the State of
Delaware, as shall be designated by the Board of Directors and
set forth in the notice of such meeting.

     SECTION 1.02.  Special Meetings.  Special meetings of the
shareholders may be called at any time by the Chairman of the
Board of Directors or by the President of the Corporation or by
the Board of Directors.  Special meetings shall be held at such
place within or without the State of Delaware and at such hour as
may be designated in the notice of such meeting and the business
transacted shall be confined to the object stated in the notice
of the meeting.

     SECTION 1.03.  Notice of Shareholders' Meetings.  The notice
of all meetings of shareholders shall be in writing and shall
state the place, date and hour of the meeting.  The notice of an
annual meeting shall state that the meeting is called for the
election of the Directors to be elected at such meeting and for
the transaction of such other business as is stated in the notice
of the meeting.  The notice of a special meeting shall state the
purpose or purposes for which the meeting is called and shall
also indicate that it is being issued by or at the direction of
the person or persons calling the meeting.

     A copy of the notice of each meeting of shareholders shall
be given, personally or by mail, not less than ten days nor more
than fifty days before the date of the meeting, to each
shareholder entitled to vote at such meeting at his record
address or at such other address as he may have furnished by
request in writing to the Secretary of the Corporation.  If a
meeting is adjourned to another time or place, and, if any
announcement of the adjourned time or place is made at the
meeting, it shall not be necessary to give notice of the
adjourned meeting unless the adjournment is for more than thirty
days or the Directors, after adjournment, fix a new record date
for the adjourned meeting.

     Notice of a meeting need not be given to any shareholder who
submits a signed waiver of notice, in person or by proxy, whether
before or after the meeting.  The attendance of a shareholder at
a meeting, in person or by proxy, without protesting prior to the
conclusion of the meeting the lack of notice of such meeting
shall constitute a waiver of notice of the meeting.

     SECTION 1.04.  Quorum at Shareholders' Meetings:  Vote
Required.  At any meeting of the shareholders the holders of a
majority of the outstanding shares entitled to vote thereat shall
constitute a quorum.  If there shall be less than a quorum at any
meeting of the shareholders a majority of those present in person
or by proxy may adjourn the meeting.

     Directors shall be elected by a plurality of the votes cast
at a meeting of shareholders by the holders of shares entitled to
vote in the election.  Whenever any corporate action, other than
the election of Directors, is to be taken by vote of the
shareholders, it shall, except as otherwise required by the
General Corporation Law, be authorized by a majority of the votes
cast at a meeting of shareholders by the holders of shares
entitled to vote thereon.

     SECTION 1.05.  Inspectors at Shareholders' Meetings.  The
Board of Directors, in advance of any shareholders meeting, may
appoint one or more inspectors to act at the meeting or any
adjournment thereof.  If inspectors are not so appointed, the
person presiding at the shareholders' meeting may, and on the
request of any shareholder entitled to vote thereat shall,
appoint one or more inspectors.  In case any person appointed
fails to appear or act, the vacancy may be filled by appointment
made by the Board of Directors in advance of the meeting or at
the meeting by the person presiding thereat.  Each inspector,
before entering upon the discharge of his duties, shall take and
sign an oath faithfully to execute the duties of inspector at
such meeting with strict impartiality and according to the best
of his ability.

     The inspectors shall determine the number of shares
outstanding and the voting power of each, the shares represented
at the meeting, the existence of a quorum, the validity and
effect of proxies, and shall receive votes, ballots or consents,
hear and determine all challenges and questions arising in
connection with the right to vote, count and tabulate all votes,
ballots or consents, determine the result, and do such acts as
are proper to conduct the election or vote with fairness to all
shareholders.  On request of the person presiding at the meeting
or any shareholder entitled to vote thereat, the inspectors shall
make a report in writing of any challenge, question or matter
determined by them and execute a certificate of any fact found by
them.  Any report or certificate made by them shall be prima
facie evidence of the facts stated and of the vote as certified
by them.

                           ARTICLE II

                           DIRECTORS

     SECTION 2.01.  Qualifications and Number; Vacancies.  A
Director need not be a shareholder, a citizen of the United
States, or a resident of the State of Delaware.  The number of
Directors constituting the entire Board is hereby fixed at six
(6) Directors of which group one (1) Director shall be an
internal Director.  The number of Directors may be changed by
resolution of the Board of Directors adopted by the same vote
that is necessary under Article VII hereof to amend these by-
laws.

     The Directors shall be chosen from among the six (6)
nominees receiving the greatest plurality of votes from
shareholders at the annual meeting of shareholders.

     The number of Directors may be increased or decreased by
amendment of these by-laws duly adopted by either the
shareholders or a vote of the majority of the entire Board of
Directors, provided that the number of Directors constituting the
entire Board shall not be less than three.  No decrease shall
shorten the term of any incumbent Director.  Any Director may be
removed for cause by the shareholders.

     Vacancies and newly created directorships resulting from any
increase in the authorized number of Directors may be filled by a
majority of the Directors then in office, though less than a
quorum, or by a sole remaining Director.

     SECTION 2.02.  Term.  Each director shall hold office until
the next annual meeting of shareholders and until his successor
has been elected and qualified.

     SECTION 2.03.  Place and Time of Meetings of the Board.
Regular and special meetings of the Board shall be held at such
places (within or without the State of Delaware) and at such
times as may be fixed by the Board or upon call of the President
of the Corporation or of the executive committee or of any two
Directors, provided that the Board of Directors shall hold at
least four meetings a year.

     SECTION 2.04.  Quorum and Manner of Acting.  A majority of
the entire Board of Directors shall constitute a quorum for the
transaction of business, but if there shall be less than a quorum
at any meeting of the Board, a majority of those present (or if
only one be present, then that one) may adjourn the meeting from
time to time and the meeting may be held as adjourned without
further notice.  At all meetings of Directors, a quorum being
present, all matters shall be decided by the vote of a majority
of the Directors present at the time of the vote.

     SECTION 2.05.  Remuneration of Directors.  In addition to
reimbursement for his reasonable expenses incurred in attending
meetings or otherwise in connection with his attention to the
affairs of the Corporation, each Director as such, and as a
member of any committee of the Board, shall be entitled to
receive such remuneration as may be fixed from time to time by
the Board.

     SECTION 2.06.  Notice of Meetings of the Board.  Regular
meetings of the Board may be held without notice if the time and
place of such meetings are fixed by the Board.  All regular
meetings of the Board, the time and place of which have not been
fixed by the Board, and all special meetings of the Board shall
be held upon twenty-four hours' notice to the Directors given by
letter or telegraph.  No notice need specify the purpose of the
meeting.  Any requirement of notice shall be effectively waived
by any Director who signs a waiver of notice before or after the
meeting or who attends the meeting without protesting (prior
thereto or at its commencement) the lack of notice to him.

     SECTION 2.07.  Executive Committee and Other Committees.
The Board of Directors, by resolution adopted by a majority of
the entire Board, may designate from among its members an
Executive Committee and other committees to serve at the pleasure
of the Board.  Each committee shall consist of three or more
Directors.  During the intervals between the meetings of the
Board, the Executive Committee shall have all of the authority of
the Board of Directors.  Each other committee shall be empowered
to perform such functions as may, by resolution, be delegated to
it by the Board.

     The Board of Directors may designate one or more Directors
as alternate members of any such committee, who may replace any
absent member or members at any meetings of such committee.
Vacancies in any committee, whether caused by resignation or by
increase in the number of members constituting said committee,
shall be filled by a majority of the entire Board of Directors.
The Executive Committee may fix its own quorum.  In the absence
or disqualification of any member of any such committee, the
member or members thereof present at any meeting and not
disqualified from voting whether or not he or they constitute a
quorum, may unanimously appoint another member of the Board of
Directors to act at the meeting in place of any such absent or
disqualified member.

     SECTION 2.08.  Action Without Meeting.  Any action required
or permitted to be taken at any meeting of the Board of
Directors, or of any committee thereof, may be taken without a
meeting, if prior to such action a written consent thereto is
signed by all members of the board, or of such committee as the
case may be, and such written consent is filed with the minutes
of proceedings of the board or committee.

                          ARTICLE III

                            OFFICERS

     SECTION 3.01.  Officers.  The Board of Directors, at its
first meeting held after the annual meeting of shareholders in
each year shall elect a Chairman of the Board, Chairman of the
Executive Committee, a President, one or more Vice Presidents, a
Secretary and a Treasurer and may, in its discretion, also
appoint from time to time such other officers or agents as it may
deem proper.  The Chairman of the Board, Chairman of the
Executive Committee and the President shall be elected from among
the members of the Board of Directors.

     Any two or more offices may be held by the same person.

     Unless otherwise provided in the resolution of election or
appointment or in the employment agreement with an officer, each
officer shall hold office until the meeting of the Board of
Directors following the next annual meeting of shareholders and
until his successor has been elected and qualified; provided,
however, that the Board of Directors may, unless otherwise
provided in such resolution or agreement, remove any officer for
cause or without cause at any time.

     SECTION 3.02.  Chairman of the Board.  The Chairman shall,
if present, preside at all meetings of the shareholders and Board
of Directors.  The Chairman shall do and perform all other acts
and duties which may be assigned to him from time to time by the
Board of Directors.

     SECTION 3.03.  Chairman of Executive Committee.  The
Chairman of the Executive Committee shall, if present, preside at
all meetings of the Executive Committee and shall do and perform
all other acts and duties which may be assigned to him from time
to time by the Board of Directors.

     SECTION 3.04.  President.  In the absence of the Chairman of
the Board or his inability to act, the President shall preside at
all meetings of the shareholders and of the Board of Directors.
The President shall do and perform all other acts and duties
which may be assigned to him from time to time by the Board of
Directors or the Chairman of the Board.

     SECTION 3.04A. Vice Presidents.  The Vice Presidents shall
do and perform such acts and duties as may be assigned to them
from time to time by the Board of Directors, the Chairman of the
Board or the President.

     SECTION 3.04B. Designations of CEO and COO.  The Board of
Directors shall from time to time designate the persons, whether
by name or title, who shall be the Chief Executive Officer
("CEO") and Chief Operating Officer ("COO") of the Corporation.
The CEO shall have general supervision of the affairs of the
Corporation subject to the control of the Board of Directors.
Both the CEO and the COO shall have the power on behalf of the
Corporation to execute and deliver all contracts, instruments,
conveyances or documents and to affix the corporate seal
thereto."

     SECTION 3.05.  Secretary.  The Secretary shall keep minutes
of the proceedings and the resolutions adopted at all meetings of
the shareholders and the Board of Directors, and shall give due
notice of the meetings of the shareholders and the Board of
Directors.  He shall have charge of the seal and all books and
papers of the Corporation, and shall perform all duties incident
to his office.  In case of the absence or disability of the
Secretary, his duties and powers may be exercised by such person
as may be appointed by the Board of Directors or the Executive
Committee.

     SECTION 3.06.  Treasurer.  The Treasurer shall receive all
the monies belonging to the Corporation, and shall forthwith
deposit the same to the credit of the Corporation in such
financial institution as may be selected by the Board of
Directors or the Executive Committee.  He shall keep books of
account and vouchers for all monies disbursed.  He shall also
perform such other duties as may be prescribed by the Board of
Directors or Executive Committee or the President and in case of
the absence or disability of the Treasurer, his duties and powers
may be exercised by such person as may be appointed by the Board
of Directors or Executive Committee.

                           ARTICLE IV

                        INDEMNIFICATION

     SECTION 4.01.  Indemnification.  (a)  The Corporation shall
indemnify any person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the
Corporation) by reason of the fact that he is or was a director,
officer, employee or agent of the Corporation, or is or was
serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best
interests of the Corporation, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his
conduct was unlawful.  The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that the person did not act in good faith
and in a manner which he reasonably believed to be in or not
opposed to the best interests of the Corporation, and, with
respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.

     (b)  The Corporation shall indemnify any person who was or
is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the
Corporation to procure a judgment in its favor by reason of the
fact that he is or was a director, officer, employee or agent of
the Corporation, or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other
enterprise against expenses (including attorneys' fees) actually
and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the
best interests of the Corporation and except that no
indemnification shall be made in respect of any claim, issue or
matter as to which such person shall have been adjudged to be
liable for negligence or misconduct in the performance of his
duty to the Corporation unless and only to the extent that the
Court of Chancery of Delaware or the court in which such action
or suit was brought shall determine upon application that,
despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which such Court of
Chancery or such other court shall deem proper.

     (c)  To the extent that a director, officer, employee or
agent of the Corporation has been successful on the merits or
otherwise in defense of any action, suit or proceeding referred
to in subsections (a) and (b), or in defense of any claim, issue
or matter therein, he shall be indemnified against expenses
(including attorneys' fees) actually and reasonably incurred by
him in connection therewith.

     (d)  Any indemnification under subsections (a) and (b)
(unless ordered by a court) shall be made by the Corporation only
as authorized in the specific case upon a determination that
indemnification of the director, officer, employee or agent is
proper in the circumstances because he has met the applicable
standard of conduct set forth in subsections (a) and (b).  Such
determination shall be made (1) by the Board of Directors by a
majority vote of a quorum consisting of directors who were not
parties to such action, suit or proceeding, or (2) if such a
quorum is not obtainable, or, even if obtainable a quorum of
disinterested directors so directs, by independent legal counsel
in a written opinion, or (3) by the stockholders.

     (e)  Expenses incurred in defending a civil or criminal
action, suit or proceeding may be paid by the Corporation in
advance of the final disposition of such action, suit or
proceeding as authorized by the Board of Directors in the manner
provided in subsection (d) upon receipt of an undertaking by or
on behalf of the director, officer, employee or agent to repay
such amount unless it shall ultimately be determined that he is
entitled to be indemnified by the Corporation as authorized in
this Article IV.

     (f)  The indemnification provided by this Article IV shall
not be deemed exclusive of any other rights to which those
indemnified may be entitled under any by-law, agreement, vote of
stockholders or disinterested directors or otherwise, both as to
action in his official capacity and as to action in another
capacity while holding such office, and shall continue as to a
person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of the heirs, executors and
administrators of such a person.

     (g)  The Board of Directors may authorize, by a vote of a
majority of the full Board, the Corporation to purchase and
maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the Corporation, or is or
was serving at the request of the Corporation as a director,
officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against any liability
asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Corporation
would have the power to indemnify him against such liability
under the provisions of this Article IV.

                           ARTICLE V

                         CAPITAL STOCK

     SECTION 5.01.  Share Certificates.  Each certificate
representing shares of the Corporation shall be in such form as
may be approved by the Board of Directors and, when issued, shall
contain upon the face or back thereof the statements prescribed
by the General Corporation Law and by any other applicable
provision of law. Each such certificate shall be signed by the
Chairman or President or a Vice President and by the Secretary or
Treasurer or an Assistant Secretary or Assistant Treasurer.  The
signatures of said officers upon a certificate may be facsimile
if the certificate is countersigned by a transfer agent or
registered by a registrar other than the Corporation itself or
its employee.  In case any officer who has signed or whose
facsimile signature has been placed upon a certificate shall have
ceased to be such officer before such certificate is issued, it
may be issued by the Corporation with the same effect as if he
were such officer at the date of issue.

     SECTION 5.02.  Lost, Destroyed or Stolen Certificates.  No
certificate representing shares shall be issued in place of any
certificate alleged to have been lost, destroyed or stolen,
except on production of evidence of such loss, destruction or
theft and on delivery to the Corporation, if the Board of
Directors shall so require, of a bond of indemnity in such
amount, upon such terms and secured by such surety as the Board
of Directors may in its discretion require.

     SECTION 5.03.  Transfer of Shares.  The shares of stock of
the Corporation shall be transferable or assignable on the books
of the Corporation only by the person to whom they have been
issued or his legal representative, in person or by attorney, and
only upon surrender of the certificate or certificates
representing such shares properly assigned.  The person in whose
name shares of stock shall stand on the record of shareholders of
the Corporation shall be deemed the owner thereof for all
purposes as regards the Corporation.

     SECTION 5.04.  Record Dates.  For the purpose of determining
the shareholders entitled to notice of or to vote at any meeting
of shareholders or any adjournment thereof, or to express consent
to corporate action in writing without a meeting, or entitled to
receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in
respect of any change, conversion or exchange of stock or for the
purpose of any other action, the Board may fix, in advance, a
date as the record date for any such determination of
shareholders.  Such date shall not be more than sixty nor less
than ten days before the date of such meeting, nor more than
sixty days prior to any other action.

                           ARTICLE VI

                         MISCELLANEOUS

     SECTION 6.01.  Signing of Instruments.  All checks, drafts,
notes, acceptances, bills of exchange, and orders for the payment
of money shall be signed in such manner and by such person or
persons as may be authorized from time to time by the Board of
Directors or the Executive Committee or by the by-laws.

     SECTION 6.02.  Corporate Seal.  The seal of the Corporation
shall be in such form and shall have such content as the Board of
Directors shall from time to time determine.

                          ARTICLE VII

                     AMENDMENTS OF BY-LAWS

     SECTION 7.01.  Amendments.  These by-laws may be altered,
amended or repealed at any meeting, by vote of a majority of the
Board of Directors, provided that notices of the proposed
amendments shall have been sent by mail to all the Directors not
less than three days before the meeting at which they are to be
acted upon, or at any regular meeting of the Directors, by the
unanimous vote of all the Directors present.EXHIBIT 4.3

                 COMPETITIVE TECHNOLOGIES, INC.
                1997 EMPLOYEES' STOCK OPTION PLAN
                   As Amended January 24, 2003

1.   Purpose of the 1997 Employees' Stock Option Plan.

     The purpose of the Plan is to enable the Company to attract,
retain and motivate its employees by providing for or increasing
the proprietary interests of such employees in the Company
through increased stock ownership.

     The Plan provides for options which either (i) qualify as
incentive stock options ("Incentive Options") within the meaning
of that term in Section 422 of the Internal Revenue Code of 1986,
as amended, or (ii) do not so qualify under Section 422 of the
Code ("Nonstatutory Options") (collectively "Options").  Any
Option granted under this Plan will be clearly identified at the
time of grant as to whether it is intended to be either an
Incentive Option or a Nonstatutory Option.

2.   Definitions.

     The following terms, when appearing in the text of this Plan
in capitalized form, will have the meanings set out below:

     (a)  "Board" means the Board of Directors of the
          Company.

     (b)  "Code" means the Internal Revenue Code of 1986, as
          heretofore or hereafter amended.

     (c)  "Committee" means the committee appointed by the
          Board pursuant to Section 3 below.

     (d)  "Company" means Competitive Technologies, Inc. or
          any parent or "subsidiary corporation," as that term is
          defined by Section 424(f) of the Code, thereof, unless
          the context requires it to be limited to Competitive
          Technologies, Inc.

     (e)  "Disabled Grantee" means a Grantee who is disabled
          within the meaning of Section 422(c)(6) of the Code.

     (f)  "Employees" means the class of employees
          consisting of individuals regularly employed by the
          Company on a full-time salaried basis who are
          identified as key employees, or such other employees as
          the Committee shall so determine.

     (g)  "Executive Officer" means those individuals who,
          on the last day of the taxable year at issue:  (i)
          served as the Company's chief executive officer or was
          acting in a similar capacity, regardless of
          compensation level; and (ii)  the four most highly
          compensated executive officers (other than the chief
          executive officer) all as determined pursuant to
          Treasury Regulation 1.162-27(c)(2).

     (h)  "Fair Market Value" means, with respect to the
          common stock of the Company, the price at which the
          stock would change hands between an informed, able and
          willing buyer and seller, neither of which is under a
          compulsion to enter into the transaction.  Fair Market
          Value will be determined in good faith by the Committee
          in accordance with a valuation method which is
          consistent with the guidelines set forth in Treasury
          Regulation 1.421-7 (e) (2) or any applicable
          regulations issued pursuant to Section 422(a) of the
          Code.  Fair Market Value will be determined without
          regard to any restriction other than a restriction
          which, by its terms, will never lapse.

     (i)  "Grantee" means an eligible Employee under this
          Plan who has been granted an Option.

     (j)  "Incentive Option" means an Option that qualifies
          for the benefit described in Section 421 of the Code,
          by virtue of compliance with the provisions of Section
          422 of the Code.

     (k)  "Nonstatutory Option" means an Option that is not
          an Incentive Option.

     (l)  "Option" means either an Incentive Option or a
          Nonstatutory Option granted under this Plan.

     (m)  "Option Agreement" means the agreement entered
          into between the Company and an individual Grantee and
          specifying the terms and conditions of the Option
          granted to the Grantee, which terms and conditions will
          recite or incorporate by reference:  (i) the provisions
          of this Plan which are not subject to variation; and
          (ii) the variable terms and conditions of each Option
          granted hereunder which will apply to that Grantee.

     (n)  "Optionee" means a Grantee, and, under the
          appropriate circumstances, his guardian,
          representative, heir, distributee, legatee or successor
          in interest, including any transferee.

     (o)  "Plan" means this 1997 Employees' Stock Option
          Plan, as the same may from time to time be amended.

     (p)  "Stock" means the Company's common stock.

3.   Administration of the Plan.

     (a)  Committee Membership.  The Plan shall be
          administered by a committee appointed by the Board, to
          be known as the Compensation Committee (the
          "Committee").  The Committee shall be not less than two
          members and comprised solely of Non-employee Directors,
          as defined by Rule 16b-3(b)(3)(i) of the Securities
          Exchange Act of 1934 ("1934 Act"), or any successor
          definition adopted by the Securities and Exchange
          Commission, and who shall each also qualify as an
          Outside Director for purposes of Section 162(m) of the
          Code.  Any vacancy occurring on the Committee may be
          filled by appointment by the Board.  The Board at its
          discretion may from time to time appoint members to the
          Committee in substitution of members previously
          appointed, may remove members of the Committee and may
          fill vacancies, however caused, in the Committee.

     (b)  Committee Procedures.  The Committee shall select
          one of its members as chairman and shall hold meetings
          at such times and places as it may determine.  A quorum
          of the Committee shall consist of a majority of its
          members, and the Committee may act by vote of a
          majority of its members present at a meeting at which
          there is a quorum, or without a meeting by written
          consent signed by all members of the Committee.  If any
          powers of the Committee hereunder are limited or denied
          by the Board or under applicable law, the same powers
          may be exercised by the Board.

     (c)  Committee Powers and Responsibilities.  The
          Committee will interpret the Plan, prescribe, amend and
          rescind any rules or regulations necessary or
          appropriate for the administration of the Plan, and
          make such other determinations and take such other
          actions it deems necessary or advisable, except as
          otherwise expressly reserved for the Board.  Subject to
          the limitations imposed by the Board or under
          applicable law and the terms of the Plan, the Committee
          may periodically determine which Employees should
          receive Options under the Plan, whether the options
          shall be Incentive Options or Nonstatutory Options, the
          number of shares covered by such Options, the per share
          purchase price for such shares, and the terms thereof,
          including but not limited to transferability of such
          Options, and shall have full power to grant such
          Options.  In making its determinations, the Committee
          shall consider, among other relevant factors, the
          importance of the duties of the Grantee to the Company,
          his or her experience with the Company, and his or her
          future value to the Company.  All decisions,
          interpretations and other actions of the Committee
          shall be final and binding on all Grantees, Optionees
          and all persons deriving their rights from a Grantee or
          Optionee.  No member of the Board or the Committee
          shall be liable for any action taken or failed to be
          taken in good faith or for any determination made
          pursuant to the Plan.

4.   Stock Subject to Plan.

     This Plan authorizes the Committee to grant Options to
Employees up to the aggregate amount of 1,025,000 shares of
Stock, subject to eligibility and any limitations specified
herein.  Adjustment in the shares subject to the Plan shall be
made as provided in Section 9.  Any shares covered by an Option
which, for any reason, expires, terminates or is canceled may be
reoptioned under the Plan.

5.   Eligibility

     (a)  General Rule. All Employees defined in Section
          2(f) shall be eligible.

     (b)  Ten Percent Stockholders.  An employee who owns
          more than ten percent (10%) of the total combined
          voting power of all classes of outstanding Stock shall
          not be eligible for designation as a Grantee of an
          Incentive Option unless (i) the exercise price for each
          share of Stock subject to such Incentive Option is at
          least one hundred ten percent (110%) of the Fair Market
          Value of a share of Stock on the date of grant, and
          (ii) such Incentive Option, by its terms, is not
          exercisable after the expiration of five (5) years from
          the date of grant.

     (c)  Attribution Rules.  For purposes of Subsection (b)
          above, in determining stock ownership, an Employee
          shall be deemed to own the Stock owned, directly or
          indirectly, by or for his brothers, sisters (whether by
          whole or half blood), spouse, ancestors and lineal
          descendants.  Stock owned, directly or indirectly, by
          or for a corporation, partnership, estate or trust
          shall be deemed to be owned proportionately by or for
          its stockholders, partners or beneficiaries.

     (d)  Outstanding Stock.  For purposes of Subsection (b)
          above, "Outstanding Stock" shall include all Stock actually
          issued and outstanding immediately after the grant.
          "Outstanding Stock" shall not include shares authorized for
          issuance under outstanding options held by the Employee or
          by any other person.

     (e)  Individual Limits of Executive Officers. Subject
          to the provisions of Section 9 hereof, the number of
          option shares granted in a fiscal year to any Executive
          Officer shall not exceed 300,000 shares for the first
          fiscal year during which such person becomes an
          Executive Officer and shall not exceed 100,000 shares
          for any subsequent fiscal year during which such person
          serves as an Executive Officer.

     (f)  Incentive Option Limitation.  The aggregate Fair
          Market Value of the stock for which Incentive Options
          granted to any one eligible Employee under this Plan
          and under all incentive stock option plans of the
          Company, its parent(s) and subsidiaries, may by their
          terms first become exercisable during any calendar year
          shall not exceed $100,000, determining Fair Market
          Value of the stock subject to any Option as of the time
          that Option is granted.  If the date on which one or
          more Incentive Options could be first exercised would
          be accelerated pursuant to any other provision of the
          Plan or any Stock Option Agreement referred to in
          Section 6(a), or an amendment thereto, and the
          acceleration of such exercise date would result in a
          violation of the restriction set forth in the preceding
          sentence, then notwithstanding any such other provision
          the exercise date of such Incentive Options shall be
          accelerated only to the extent, if any, that is
          permitted under Section 422 of the Code and the
          exercise date of the Incentive Options with the lowest
          option prices shall be accelerated first.  Any exercise
          date which cannot be accelerated without violating the
          $100,000 restriction of this section shall nevertheless
          be accelerated, and the portion of the Option becoming
          exercisable thereby shall be treated as a Nonstatutory
          Option.

6.   Terms and Conditions of All Options Under the Plan.

     (a)  Option Agreement.  All Options granted under the
          Plan shall be evidenced by a written Option Agreement
          and shall be subject to all applicable terms and
          conditions of the Plan and may be subject to any other
          terms and conditions which are not inconsistent with
          the Plan and which the Committee deems appropriate for
          inclusion in an Option Agreement.

     (b)  Number of Shares.  Each Option Agreement shall
          specify the number of shares of the Stock each such
          Employee will be entitled to purchase pursuant to the
          Option and shall provide for the adjustment of such
          number in accordance with Section 9.  Each Option
          Agreement shall state the minimum number of shares
          which must be exercised at any time, if any.

     (c)  Nature of Option.  Each Option Agreement shall
          specify the intended nature of the Option as an
          Incentive Option, a Nonstatutory Option or partly of
          each type.

     (d)  Exercise Price.  Each Option Agreement shall
          specify the exercise price.  The exercise price of
          either the Incentive Option or the Nonstatutory Option
          shall not be less than one hundred percent (100%) of
          the Fair Market Value of a share of Stock on the date
          of grant. Subject to the foregoing, the exercise price
          under any Option shall be determined by the Committee
          in its sole discretion.  The exercise price shall be
          payable in the form described in Section 7.

     (e)  Term of Option.  The Option Agreement shall
          specify the term of the Option.  The term of any Option
          granted under this Plan is subject to expiration,
          termination, and cancellation as set forth within this
          Plan.

     (f)  Exercisability.  Each Option Agreement shall
          specify the date when all or any installment of the
          Option is to become exercisable.  Such Option shall not
          be exercisable after the expiration of such term which
          shall be fixed by the Committee, but in any event not
          later than ten years from the date such Option is
          granted.  Subject to the provisions of the Plan, the
          Committee may grant Options which are vested, or which
          become vested upon the happening of an event or events
          as specified by the Committee.

     (g)  Withholding Taxes.  Upon exercise of any
          Nonstatutory Option (or any Incentive Option which is
          treated as a Nonstatutory Option because it fails to
          meet the requirements set forth in the Code for
          Incentive Options), the Optionee must tender full
          payment to the Company for any federal income tax
          withholding required under the Code in connection with
          such exercise ("Withholding Tax").  If the Optionee
          fails to tender to the Company the Withholding Tax, the
          Committee, at its discretion, shall withhold from the
          Optionee any and all shares subject to such Option, and
          accordingly, subject to Withholding Tax until such time
          as either of the following events has occurred:

          (i)  the Employee tenders to the Company
               payment in cash to pay the Withholding Tax; or

          (ii) the Company withholds from the
               Employee's wages an amount sufficient to pay the
               Withholding Tax.

     (h)  Termination and Acceleration of Option.

          For Incentive Options:

          (i)  If the employment of a Grantee who is
               not a Disabled Grantee is terminated without
               cause, or such Grantee voluntarily quits or
               retires under any retirement plan of the Company,
               any then outstanding and exercisable stock option
               held by such a Grantee shall be exercisable, in
               accordance with the provisions of the Option
               Agreement, by such Grantee at any time prior to
               the expiration date of such Option or within three
               months after the date of termination of employment
               or service, whichever is the shorter period.

          (ii) If the employment of a Grantee who is a
               Disabled Grantee is terminated without cause, any
               then outstanding and exercisable Option held by
               such a Grantee shall be exercisable, in accordance
               with the provisions of the Option Agreement, by
               such a Grantee at any time prior to the expiration
               date of such Option or within one year after the
               date of such termination of employment or service,
               whichever is the shorter period.

          For all Options issued hereunder:

          (i)  If the Company terminates the employment
               of a Grantee for cause, all outstanding stock
               options held by the Grantee at the time of such
               termination shall automatically terminate unless
               the Committee notifies the Grantee that his or her
               options will not terminate.  A termination "for
               cause" shall be defined under each written Option
               Agreement.  The Company assumes no responsibility
               and is under no obligation to notify a Permitted
               Transferee (as hereafter defined in section 13) of
               early termination of an Option on account of a
               Grantee's termination of employment.

          (ii) Whether termination of employment or
               other service is a termination "for cause" or
               whether a Grantee is a Disabled Grantee shall be
               determined in each case, in its discretion, by the
               Committee and any such determination by the
               Committee shall be final and binding.

         (iii) Following the death of a Grantee during
               employment, any outstanding and exercisable
               Options held by such Grantee at the time of death
               shall be exercisable, in accordance with the
               provisions of the Option Agreement, by the person
               or persons entitled to do so under the Will of the
               Grantee, or, if the Grantee shall fail to make
               testamentary disposition of the stock option or
               shall die intestate, by the legal representative
               of the Grantee at any time prior to the expiration
               date of such Option or within one year after the
               date of death, whichever is the shorter period.

          (iv) The Committee may grant Options, or
               amend Options previously granted, to provide that
               such Options continue to be exercisable up to ten
               years after the date of grant irrespective of the
               termination of the Grantee's employment with the
               Company, and which vest upon grant or become
               vested upon the happening of an event or events
               specified by the Committee, although the exercise
               of such vested Options in the case of Incentive
               Options more than three months after termination
               of employment may convert such Options to
               Nonstatutory Options with respect to the income
               tax consequences of such exercise.

7.   Payment for Shares

     (a)  Cash.  Payment in full for shares purchased under
          an Option shall be made in cash (including check, bank
          draft or money order) at the time that the Option is
          exercised.

     (b)  Stock.  In lieu of cash an Optionee may, with the
          consent of the Committee, make payment for Stock
          purchased under an Option, in whole or in part, by
          tendering to the Company in good form for transfer,
          shares of Stock valued at Fair Market Value on the date
          the Option is exercised.  Such shares will have been
          owned by the Optionee or the Optionee's representative
          for the time specified by the Committee but in no case
          shall the Optionee or his representative have held a
          beneficial interest in such tendered shares for a
          period less than six months prior to the exercise of
          the Option.

8.   Use of Proceeds from Stock.

     Cash proceeds from the sale of Stock pursuant to Options
granted under the Plan shall constitute general funds of the
Company.

9.   Adjustments.

     Changes or adjustments in the Option price, number of shares
subject to an Option or other specifics as the Committee should
decide will be considered or made pursuant to the following
rules:

     (a)  Upon Changes in Stock.  If the outstanding Stock
          is increased or decreased, or is changed into or
          exchanged for a different number or kinds of shares or
          securities, as a result of one or more reorganizations,
          recapitalization, stock splits, reverse stock splits,
          split-up, combination of shares, exchange of shares,
          change in corporate structure, or otherwise,
          appropriate adjustments will be made in the exercise
          price and/ or the number and/or kind of shares or
          securities for which Options may thereafter be granted
          under this Plan and for which Options then outstanding
          under this Plan may thereafter be exercised.  The
          Committee will make such adjustments as it may deem
          fair, just and equitable to prevent substantial
          dilution or enlargement of the rights granted to or
          available for Optionees.  No adjustment provided for in
          this Section 9 will require the Company to issue or
          sell a fraction of a share or other security.  Nothing
          in this Section will be construed to require the
          Company to make any specific or formula adjustment.

     (b)  Prohibited Adjustment.  If any such adjustment
          provided for in this Section 9 requires the approval of
          stockholders in order to enable the Company to grant or
          amend Options, then no such adjustment will be made
          without the required stockholder approval.
          Notwithstanding the foregoing, if the effect of any
          such adjustment would be to cause an Incentive Option
          to fail to continue to qualify under Section 422 of the
          Code or to cause a modification, extension or renewal
          of such stock option within the meaning described in
          Section 424 of the Code, the Committee may elect that
          such adjustment not be made but rather shall use
          reasonable efforts to effect such other adjustment of
          each then outstanding Option as the Committee, in its
          sole discretion, shall deem equitable and which will
          not result in any disqualification, modification,
          extension or renewal (within the meaning of Section 424
          of the Code) of such Incentive Option.

     (c)  Further Limitations.  Nothing in this Section will
          entitle the Optionee to adjustment of his Option in the
          following circumstances:

          (i)  The issuance or sale of additional
               shares of the Stock, through public offering or
               otherwise;

          (ii) The issuance or authorization of an
               additional class of capital stock of the Company;

         (iii) The conversion of convertible preferred
               stock or debt of the Company into Stock; and

          (iv) The payment of dividends except as
               provided in Section 9 (a).

The grant of an Option shall not affect in any way the right or
power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure,
to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business or assets.

10.  Legal Requirements:

    (a)   Compliance with All Laws.  The Company will not
          be required to issue or deliver any certificates for
          shares of Stock prior to (a) the listing of any such
          Stock to be acquired pursuant to the exercise of any
          Option on any stock exchange on which the Stock may
          then be listed, and (b) the compliance with any
          registration requirements or qualification of such
          shares under any federal securities laws, including
          without limitation the Securities Act of 1933, as
          amended ("1933 Act"), the rules and regulations
          promulgated thereunder, or state securities laws and
          regulations, the regulations of any stock exchange or
          interdealer quotation system on which the Company's
          securities may then be listed, or obtaining any ruling
          or waiver from any government body which the Company
          may, in its sole discretion, determine to be necessary
          or advisable, or which, in the opinion of counsel to
          the Company, is otherwise required.

    (b)   Compliance with Specific Code Provisions.  It is
          the intent of the Company that the Plan and its
          administration conform strictly to the requirements of
          Section 422 of the Code with respect to Incentive
          Options.  Therefore, notwithstanding any other
          provision of this Plan, nothing herein will contravene
          any requirement set forth in Section 422 of the Code
          with respect to Incentive Options and if inconsistent
          provisions are otherwise found herein, they will be
          deemed void and unenforceable or automatically amended
          to conform, as the case may be.

    (c)   Plan Subject to Delaware Law.  All questions
          arising with respect to the provisions of the Plan will
          be determined by application of the Code and the laws
          of the state of Delaware except to the extent that
          Delaware laws are preempted by any federal law.

11.  Rights as a Stockholder.

     An Optionee shall have no rights as a stockholder with
respect to any Stock covered by his Option until the date of
issuance of the stock certificate to him after receipt of the
consideration in full set forth in the Option Agreement.  Except
as provided in Section 9 hereof, no adjustments will be made for
dividends, whether ordinary or extraordinary, whether in cash,
securities, or other property, or for distributions for which the
record date is prior to the date on which the Option is
exercised.

12.  Restrictions on Shares.

     Prior to the issuance or delivery of any shares of the Stock
under the Plan, the person exercising the Option may be required
to:

    (a)   represent and warrant that the shares of the
          Stock to be acquired upon exercise of the Option are
          being acquired for investment for the account of such
          person and not with a view to resale or other
          distribution thereof;

    (b)   represent and warrant that such person will not,
          directly or indirectly, sell, transfer, assign, pledge,
          hypothecate or otherwise dispose of any such shares
          unless the sale, transfer, assignment, pledge,
          hypothecation or other disposition of the shares is
          pursuant to the provisions of this Plan and effective
          registrations under the 1933 Act and any applicable
          state or foreign securities laws or pursuant to
          appropriate exemptions from any such registrations; and

    (c)   execute such further documents as may reasonably
          be required by the Committee upon exercise of the
          Option or any part thereof, including but not limited
          to any stock restriction agreement that the Committee
          may choose to require.

     Nothing in this Plan shall assure any Optionee that shares
issuable under this Option are registered on a Form S-8 under the
1933 Act or on any other Form.  The certificate or certificates
representing the shares of the Stock to be issued or delivered
upon exercise of an Option may bear a legend evidencing the
foregoing and other legends required by any applicable securities
laws.  Furthermore, nothing herein or any Option granted
hereunder will require the Company to issue any Stock upon
exercise of any Option if the issuance would, in the opinion of
counsel for the Company, constitute a violation of the 1933 Act,
applicable state securities laws, or any other applicable rule or
regulation then in effect.  The Company shall have no liability
for failure to issue shares upon any exercise of Options because
of a delay pending the meeting of any such requirements.

13.  Transferability.

     The Committee shall retain the authority and discretion to
permit a Nonstatutory Option, but in no case an Incentive Option,
to be transferable as long as such transfers are made only to one
or more of the following: family members, limited to children of
Grantee, spouse of Grantee, or grandchildren of Grantee, or
trusts for the benefit of Grantee and/or such family members
("Permitted Transferee"), provided that such transfer is a bona
fide gift and accordingly, the Grantee receives no consideration
for the transfer, and that the Options transferred continue to be
subject to the same terms and conditions that were applicable to
the Options immediately prior to the transfer.  Options are also
subject to transfer by will or the laws of descent and
distribution.  Options granted pursuant to this Plan shall not be
otherwise transferred, assigned, pledged, hypothecated or
disposed of in any way, whether by operation of law or otherwise.
A Permitted Transferee may not subsequently transfer an Option.
The designation of a beneficiary shall not constitute a transfer.

14.  No Right to Continued Employment.

     This Plan and any Option granted under this Plan will not
confer upon any Optionee any right with respect to continued
employment by the Company nor shall they alter, modify, limit or
interfere with any right or privilege of the Company under any
employment agreement heretofore or hereafter executed with any
Optionee, including the right to terminate any Optionee's
employment at any time for or without cause, to change his level
of compensation or to change his responsibilities or position.

15.  Corporate Reorganizations.

     Upon the dissolution or liquidation of the Company, or upon
a reorganization, merger or consolidation of the Company as a
result of which the outstanding securities of the class then
subject to Options hereunder are changed into or exchanged for
cash or property or securities not of the Company's issue, or
upon a sale of substantially all the property of the Company to,
or the acquisition of stock representing more than eighty percent
(80%) of the voting power of the stock of the Company then
outstanding by another corporation or person, the Plan will
terminate and all Options will lapse.  The result described above
will not occur if provision is made in writing in connection with
such transaction for the continuance of the Plan and/or for the
assumption of Options earlier granted, or the substitution for
such Options of options covering the stock of a successor
employer corporation, or a parent or a subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and
prices, in which event the Plan and Options theretofore granted
will continue in the manner and under the terms so provided.  If
the Plan and unexercised Options shall terminate pursuant to the
foregoing, all persons holding any unexercised portions of
Options then outstanding shall have the right, at such time prior
to the consummation of the transaction causing the termination as
the Company shall designate, to exercise the unexercised portions
of their options, including the portions thereof which would but
for this Section 15 not yet be exercisable.

16.  Modification, Extension and Renewal.

    (a)   Options.  Subject to the conditions of and within
          the limitations prescribed in the Plan herein, the
          Committee may modify, extend, cancel or renew
          outstanding Options.  Notwithstanding the foregoing, no
          modification will, without the prior written consent of
          the Optionee, alter, impair or waive any rights or
          obligations associated with any Option earlier granted
          under the Plan.

    (b)   Plan.  The Board may at any time and from time to
          time interpret, amend or discontinue the Plan, subject
          to the limitation, however, that, except as provided in
          Section 9 (relating to adjustments upon changes in
          stock), no amendment shall be made, except upon
          stockholder approval, which will:

          (1)   Increase the number of shares reserved
                for Options under the Plan; or
          (2)   Reduce the Option price below 100% of
                Fair Market Value at the time an Option is
                granted; or
          (3)   Change the requirements for
                eligibility for participation under the Plan.

17.  Plan Date and Duration.

     The Plan shall take effect on the date it is adopted by the
Board subject to approval by the stockholders.  Options may not
be granted under this Plan after September 30, 2007.

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