Document:

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                                                                    EXHIBIT 10.3

                                    GTx, INC.

                             2001 STOCK OPTION PLAN

         1.       PURPOSE.

                  (a) The purpose of the GTx, Inc. 2001 Stock Option Plan (the
         "Plan") is to provide a means by which selected key employees and
         directors (if declared eligible under paragraph 4) of and consultants
         to GTx, Inc. (the "Company"), and its Affiliates, as defined in
         subparagraph 1(b), may be given an opportunity to benefit from
         increases in value of the stock of the Company. It is intended that
         this purpose will be effected through the granting of (i) incentive
         stock options and/or, (ii) nonstatutory stock options.

                  (b) The word "Affiliate" as used in the Plan means any parent
         corporation or subsidiary corporation of the Company, as those terms
         are defined in Sections 424 (e) and (f), respectively, of the Internal
         Revenue Code of 1986, as amended from time to time (the "Code").

                  (c) The Company, by means of the Plan, seeks to retain the
         services of persons now employed by or serving as consultants or
         directors to the Company, to secure and retain the services of persons
         capable of filling such positions, and to provide incentives for such
         persons to exert maximum efforts for the success of the Company.

                  (d) The Company intends that rights granted under the Plan
         ("Option Awards") shall, in the discretion of the Committee or Board of
         Directors of the Company (the "Board"), as applicable, be either (i)
         incentive stock options as that term is used in Section 422 of the Code
         ("Incentive Stock Options"), or (ii) stock options which do not qualify
         as Incentive Stock Options ("Supplemental Stock Options").

         2.       ADMINISTRATION.

                  (a) The Plan shall be administered by a Committee appointed by
         the Board of Directors of the Company composed of not fewer than three
         (3) Directors (the "Committee").

                  (b) The Committee shall have the power, subject to, and within
         the limitations of, the express provisions of the Plan and to such
         resolutions, not inconsistent with the provisions of the Plan, as may
         be adopted from time to time by the Board of Directors:

                           (i) To determine from time to time which of the
                  persons eligible under the Plan shall be granted Option
                  Awards; when and how Option Awards shall be granted; whether a
                  Option Award will be an Incentive Stock Option, a Supplemental
                  Stock Option, or a combination of the foregoing; and the
                  provisions of each Option Award granted (which need not be
                  identical).

                           (ii) To construe and interpret the Plan and Option
                  Awards granted under it, and to establish, amend and revoke
                  rules and regulations for its administration. The Committee,
                  in the exercise of this power, may correct any

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                  defect, omission or inconsistency in the Plan or in any Option
                  Award, in a manner and to the extent it shall deem necessary
                  or expedient to make the Plan fully effective, consistent with
                  its terms.

                           (iii) To amend the Plan as provided in paragraph 10.

                           (iv) Generally, to exercise such powers and to
                  perform such acts as the Committee deems necessary or
                  expedient to promote the best interests of the Company.

                  (c) The Board of Directors may abolish the Committee at any
         time and revest in the Board of Directors the administration of the
         Plan.

         3.       SHARES SUBJECT TO THE PLAN.

                  (a) Subject to the provisions of paragraph 9 relating to
         adjustments upon changes in stock, the stock that may be issued
         pursuant to Option Awards granted under the Plan shall not exceed in
         the aggregate thirty five thousand one hundred fifty (35,150) shares of
         the Company's common stock issued and outstanding as of the date of
         shareholder approval of the Plan. If any option or right granted under
         the Plan shall for any reason expire or otherwise terminate without
         having been exercised in full, the stock not issued under such option
         or right shall again become available for the Plan.

                  (b) The stock subject to the Plan may be unissued shares or
         reacquired shares, bought on the market or otherwise.

         4.       ELIGIBILITY.

                  (a) Incentive Stock Options may be granted only to employees
         (including officers) of the Company or its Affiliates. A director of
         the Company shall not be eligible to receive Incentive Stock Options
         unless such director is also an employee (including an officer) of the
         Company or any Affiliate. Option Awards other than Incentive Stock
         Options may be granted only to directors, officers or employees of or
         consultants to the Company or its Affiliates.

                  (b) No person shall be eligible for the grant of an Incentive
         Stock Option under the Plan if, at the time of grant, such person owns
         (or is deemed to own pursuant to 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 of any of its
         Affiliates unless the exercise price of such option is at least one
         hundred ten percent (110%) of the fair market value of such stock at
         the date of grant and the term of the option does not exceed five (5)
         years from the date of grant.

         5.       TERMS OF STOCK OPTIONS.

         Each stock option shall be in such form and shall contain such terms
and conditions as the Board or the Committee shall deem appropriate. All options
shall be separately designated Incentive Stock Options or Supplemental Stock
Options at the time of grant, and in such form as

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issued pursuant to this paragraph, and a separate certificate or certificates
shall be issued for shares purchased on exercise of each type of option. An
option designated as a Supplemental Stock Option shall not be treated as an
Incentive Stock Option. The provisions of separate options need not be
identical, but each option shall include (through incorporation of provisions
hereof by reference in the option or otherwise) the substance of each of the
following provisions:

                  (a) The term of any option shall not be greater than ten (10)
         years from the date it was granted or, in the case of any option
         contemplated by paragraph 4(b), five (5) years from the date of grant.

                  (b) The exercise price of each Incentive Stock Option shall be
         not less than one hundred percent (100%) of the fair market value of
         the stock subject to the option on the date the option is granted or,
         in the case of any option contemplated by paragraph 4(b), one hundred
         ten percent (110%) of the fair market value of the stock subject to the
         option on the date of grant of the option.

                  (c) The purchase price of stock acquired pursuant to an option
         shall be paid, to the extent permitted by applicable statutes and
         regulations, either (i) in cash at the time the option is exercised, or
         (ii) at the discretion of the Committee either at the time of the grant
         or exercise of the option, (A) by delivery to the Company of other
         common stock of the Company, (B) according to a deferred payment or
         other arrangement (which may include, without limiting the generality
         of the foregoing, the use of other common stock of the Company) with
         the person to whom the option is granted or to whom the option is
         transferred pursuant to subparagraph 5(d), or (C) in any other form of
         legal consideration that may be acceptable to the Committee.

                  (d)

                           (i) Unless otherwise expressly stated in the option,
                  an option shall not be transferable except by will or by the
                  laws of descent and distribution, and shall be exercisable
                  during the lifetime of the person to whom the option is
                  granted only by such person, nor shall an option holder have
                  the right or power to anticipate, accelerate, convey, assign
                  or otherwise alienate, hypothecate, pledge or otherwise
                  encumber any option award or the shares subject to an option
                  award.

                           (ii) Except with respect to Incentive Stock Options,
                  the Committee may, in its discretion, establish forms and
                  procedures for the transfer of all or any portion of such
                  Option Award by the optionee to (i) Immediate Family Members
                  (as defined hereinafter), (ii) a trust or trusts for the
                  exclusive benefit of the optionee and such Immediate Family
                  Members, or (iii) a partnership or limited liability company
                  in which the optionee and such Immediate Family Members are
                  the only partners or members (collectively such optionee's
                  "Permitted Transferees"), provided that subsequent transfers
                  shall be prohibited except in accordance with the laws of
                  descent and distribution, or by will. Notification and
                  approval of all such transfers shall be in the form specified
                  by the Committee. Following transfer, any such Option Award
                  shall continue to be subject to the same terms and conditions
                  as were applicable immediately prior to transfer,

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                  provided that for purposes of this Plan, wherever appropriate,
                  the term "optionee" shall be deemed to refer to the Permitted
                  Transferee. Notwithstanding the foregoing, the Plan Committee
                  and the Company shall have no obligation to inform any
                  Permitted Transferee of any expiration, termination, lapse or
                  acceleration of any such Option Award and may give notices
                  required hereunder, if any, to the optionee. The events of
                  termination of employment hereof shall continue to be applied
                  with respect to the original optionee, following which the
                  Option Award shall be exercisable by the Permitted Transferee
                  only to the extent, and for the periods specified herein. As
                  used herein "Immediate Family Member" shall mean, with respect
                  to the optionee, his or her spouse, child, stepchild,
                  grandchildren or other descendants, and shall include
                  relationships arising from legal adoption.

                  (e) The total number of shares of stock subject to an option
         may, but need not, be allotted in periodic installments (which may, but
         need not, be equal). From time to time during each of such installment
         periods, the option may become exercisable ("vest") with respect to
         some or all of the shares allotted to that period, and may be exercised
         with respect to some or all of the shares allotted to such period
         and/or any prior period as to which the option was not fully exercised.
         During the remainder of the term of the option (if its term extends
         beyond the end of the installment periods), the option may be exercised
         from time to time with respect to any shares then remaining subject to
         the option. In the absence of a specific provision to the contrary in a
         particular option grant, an option award shall vest one-third (1/3) on
         the third anniversary of the date of grant of such option award, an
         additional one-third on the fourth anniversary of the date of grant of
         such option award, and the final one-third (1/3) shall vest on the
         fifth anniversary of the date of grant of such option award. The
         provisions of this subparagraph 5(e) are subject to any option
         provisions governing the minimum number of shares as to which an option
         may be exercised.

                  (f) An option shall terminate three (3) months after
         termination of the optionee's employment or relationship as a director
         of or consultant to the Company or an Affiliate, unless (i) such
         termination is due to such person's permanent and total disability,
         within the meaning of Section 422(c)(6) of the Code, in which case the
         option may, but need not, provide that it may be exercised at any time
         within one (1) year following such termination of employment or
         relationship as a director or consultant; or (ii) the optionee dies
         while in the employ of or while serving as a director of or consultant
         to the Company or an Affiliate, or within not more than three (3)
         months after termination of such relationship, in which case the option
         may, but need not, provide that it may be exercised at any time within
         eighteen (18) months following the death of the optionee by the person
         or persons to whom the optionee's rights under such option passes by
         will or by the laws of descent and distribution; or (iii) such
         termination is due to such person's voluntary retirement in accordance
         with subparagraph (h) below, in which case the option may be exercised
         at any time within the earlier of five (5) years from the date of
         termination of such employment or relationship, as the case may be, or
         the term of the option; or (iv) the option by its terms specifies
         either (a) that it shall terminate sooner than three (3) months after
         termination of the optionee's employment or relationship as a director
         or consultant, or (b) that it may be exercised more than three (3)
         months after

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         termination of the optionee's employment or relationship with the
         Company or an Affiliate. This subparagraph 5(f) shall not be construed
         to extend the term of any option or to permit anyone to exercise the
         option after expiration of its term, nor shall it be construed to
         increase the number of shares as to which any option is exercisable
         from the amount exercisable on the date of termination of the
         optionee's employment or relationship as a consultant or director.

                  (g) Prior to such time as the Company's shares of common stock
         are first sold to the public in an offering registered pursuant to
         Section 5 of the Securities Act of 1933, as amended ("Initial Public
         Offering"), any shares of stock acquired through the exercise of an
         option shall be subject to a thirty (30) day right of first refusal by
         the Company at the same price and terms as offered by any third party
         pursuant to a bona fide offer, and may not be sold prior to an offer to
         sell to the Company on such terms. Further, shares acquired through
         exercise of an option award shall be subject to the terms and
         conditions of the Amended and Restated Voting and Shareholder Agreement
         dated October ___, 2001, between the Company and its stockholders, as
         amended from time to time (the "Stockholders Agreement").

                  (h) In the event of a participant's termination of employment
         or service as a director, as applicable, by reason of voluntary
         retirement (at or after age sixty-five (65) or after age fifty-five
         with no fewer than five (5) years of service), death, permanent and
         total disability, involuntary termination (other than a termination for
         cause but including any involuntary termination as the result of a
         Change in Control, as addressed below), with respect to such
         participant's Option Award(s), the Committee may in its sole, absolute
         and final discretion elect to vest any or all shares not otherwise
         vested under the terms of the Plan.

         For purposes of this section, a permanent and total disability shall
mean the occurrence of the following conditions: (i) the Option Award holder's
physical or mental incapacity (excluding infrequent and temporary absences due
to ordinary illness) of properly performing the principal functions which had
been typically assigned to him by the Company, (ii) such incapacity shall exist
or be expected to exist with a reasonable degree of medical certainty for more
than ninety (90) days in the aggregate during any consecutive twelve (12) month
period, and (iii) either the Option Award holder or the Company shall have given
the other thirty (30) days written notice of intent to terminate employment or
service as a director because of disability. In the event the Company and Option
Award holder are in material disagreement regarding the Participant's physical
or mental condition, the Company shall authorize a panel of three (3) physicians
selected by the Company to examine the Participant to determine conclusively, by
a majority, whether the Participant is disabled for purposes of the Plan.

         For purposes of this section, a termination for cause shall mean the
termination of an individual's status as an employee or director of the Company,
as applicable, as the result of (i) fraud or dishonesty in connection with the
business of the Company; (ii) gross negligence in the performance of duties for
the Company; (iii) willful failure in carrying out duties as an employee,
director or consultant; or (iv) arrest and conviction of a felony involving
moral turpitude, whether or not in connection with the business of the Company;
provided that (iii) above shall not apply if the Option Award holder has been
assigned by the Company to duties

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which are not comparable to such holder's function and compensation at the
Company, or which are non-executive or demeaning assignments, or if the Company
has given such participant demeaning and unreasonable pay cuts.

                  (i) In the event of a Change in Control of the Company, all
         shares subject to all Option Awards shall become one hundred percent
         (100%) vested and shall be converted to cash, options or stock of
         equivalent value in the surviving organization under terms and
         condition which substantially preserve the economic status of the
         Participants, as determined by the Committee. For purposes of this
         paragraph, a Change in Control shall mean:

                           (i) a sale or other disposition of more than fifty
                  percent (50%) of the issued and outstanding voting stock of
                  the Company, in a single transaction or in a series of
                  transactions. For such purposes, "Voting Stock" shall mean
                  capital stock of the Company of any class or classes, the
                  holders of which are ordinarily, in the absence of
                  contingencies, entitled to vote for the election of members of
                  the Board of Directors (or Persons performing similar
                  functions) of the Company.

                           (ii) a merger or consolidation of the Company with or
                  into any other entity, if immediately after giving effect to
                  such transaction more than fifty percent (50%) of the issued
                  and outstanding Voting Stock of the surviving entity of such
                  transaction is held by persons who are not holders of the
                  Voting Stock immediately prior to giving effect to such
                  transaction;

                           (iii) a sale or other disposition of all or
                  substantially all of the Company's assets in a single
                  transaction or in a series of transactions (including, without
                  limitation, any liquidation or dissolution of the Company

A Change of Control shall not include any of the following events:

                                    (i) any transfer or issuance of stock of the
                           Company to one or more of the Company's lenders (or
                           to any agents or representatives thereof) in exchange
                           for debt of the Company owed to any such lenders;

                                    (ii) any transfer of stock of the Company to
                           or by any person or entity, including but not limited
                           to one or more of the Company's lenders (or to any
                           agents or representatives thereof), pursuant to the
                           terms of any pledge of said stock as collateral for
                           any loans or financial accommodations to the Company
                           and/or its subsidiaries; or

                                    (iii) any transfer or issuance to any person
                           or entity, including but not limited to one or more
                           of the Company's lenders (or to any agents or
                           representatives thereof), in connection with the
                           workout or restructuring of the Company's debts to
                           any one of the Company's lenders, including but not
                           limited to the issuance of new stock in exchange for
                           any equity contribution to the Company in connection
                           with the workout or restructuring of such debt.

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                                    (iv) any transfer of stock by a stockholder
                           of the Company which is a partnership or corporation
                           to the partners or stockholders in such stockholder.

                  (j) In the event of an Initial Public Offering of the Company,
         Option Awards shall be convertible to options in shares of the newly
         public company, under terms and conditions which substantially preserve
         the rights and options of the participant. Any resulting registration
         of options or shares shall be effected at Company expense.

                  (k) If provided in the Option Award, each Option Award shall
         carry the right to receive any dividend or dividend equivalent on
         vested shares, under such terms and conditions as may be specified in
         the Option Award.

                  (l) Notwithstanding any other provisions of the Plan, any
         vested but unexercised Option Award shares shall be forfeited upon the
         Option Award holder's "Competition" with the Company. For this purpose,
         Competition shall be determined by the Committee, and shall exist if
         the Option Award holder while employed by or consulting for the Company
         and for a period of two (2) years thereafter directly or indirectly (i)
         engages or has a financial interest in, (ii) becomes an officer,
         employee, director, partner, advisor or consultant of or to, (iii) has
         an equity interest in, or (iv) in any way materially assists any
         person, corporation, entity or business whose existing or planned
         products or activities compete in whole or in part with the existing or
         planned products or activities of the Company. The sole fact of
         ownership by an Option Award holder of less than two percent (2%) of
         the stock of a publicly traded company which may have product lines
         which compete with product lines of this Company shall not be treated
         as Competition. Any determination by the Committee under this section
         shall be final and conclusive, unless overruled by the Board.

                  (m) Notwithstanding any other provision of the Plan or any
         Option Award to the contrary, any and all sales of shares to the
         Company or any Affiliate are contingent upon and subject to the terms
         and conditions of any bank loan covenants by the Company or any
         Affiliate.

         6.       COVENANTS OF THE COMPANY.

                  (a) During the terms of any Option Awards granted under the
         Plan, the Company shall keep available at all times the number of
         shares of stock required to satisfy such Option Awards.

                  (b) The Company shall seek to obtain from each regulatory
         commission or agency having jurisdiction over the Plan such authority
         as may be required to issue and sell shares of stock upon grant or
         exercise of Option Awards under the Plan; provided, however, that this
         undertaking shall not require the Company to register under the
         Securities Act of 1933, as amended (the "Securities Act"), either the
         Plan, any Option Award granted under the Plan or any stock issued or
         issuable pursuant to any such Option Awards. If, after reasonable
         efforts, the Company is unable to obtain from any such regulatory
         commission or agency the authority which counsel for the Company deems

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         necessary for the lawful issuance and sale of stock under the Plan, the
         Company shall be relieved from any liability for failure to issue and
         sell stock upon exercise of such Option Awards unless and until such
         authority is obtained.

         7.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to Option Awards granted under
the Plan shall constitute general funds of the Company.

         8.       MISCELLANEOUS.

                  (a) The Committee shall have the power to accelerate the time
         during which a Option Award may be exercised or the time during which
         an option or stock acquired pursuant to a Option Award will vest,
         notwithstanding the provisions in the Option Award stating the time
         during which it may be exercised or the time during which stock
         acquired pursuant thereto will vest.

                  (b) Neither a recipient of a Option Award nor any person to
         whom a Option Award is transferred under subparagraph 5(d) shall be
         deemed to be the holder of, or to have any of the rights of a holder
         with respect to, any shares subject to such Option Award unless and
         until such person has satisfied all requirements for exercise of the
         Option Award pursuant to its terms and is thereby entitled to receive
         shares of stock.

                  (c) Throughout the term of any Option Award granted pursuant
         to the Plan, the Company shall make available to the holder of such
         Option Award, not later than one hundred twenty (120) days after the
         close of each of the Company's fiscal years during the option term,
         upon request, such financial and other information regarding the
         Company as comprises the annual report to the shareholders of the
         Company provided for in the bylaws of the Company.

                  (d) Nothing in the Plan or any instrument executed or Option
         Award granted pursuant thereto shall confer upon any recipient any
         right to continue in the employ of the Company or any Affiliate or to
         limit the Company's right to terminate the employment or consulting
         relationship or directorship of any eligible employee or recipient with
         or without cause. In the event that an Option Award recipient is
         permitted or otherwise entitled to take a leave of absence, the Company
         shall have the unilateral right to (i) determine whether such leave of
         absence will be treated as a termination of employment for purposes of
         his or her Option Award, or (ii) suspend or otherwise delay the time or
         times at which the shares subject to the Option Award would otherwise
         vest.

                  (e) To the extent provided by the terms of any Option Award,
         the recipient may satisfy any federal, state or local tax withholding
         obligation relating to the exercise or receipt of such Option Award by
         any of the following means or by a combination of such means: (1)
         tendering a cash payment; (2) authorizing the Company to withhold from
         the shares of the common stock otherwise issuable to the participant as
         a result of the exercise of receipt of the Option Award cash or a
         number of shares having a fair market value less than or equal to the
         amount of the withholding tax obligation; or (3)

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         delivering to the Company owned and unencumbered shares of common stock
         of the Company having a fair market value less than or equal to the
         amount of the withholding tax obligation.

                  (f) In connection with each Option Award made pursuant to the
         Plan, the Company may require as a condition precedent to its
         obligation to issue or transfer shares to an eligible participant, or
         to evidence the removal of any restrictions on transfers or lapse of
         any repurchase right, that such participant make arrangements
         satisfactory to the Company to insure that the amount of any federal or
         other withholding tax required to be withheld with respect to such sale
         or transfer, or such removal or lapse, is made available to the Company
         for timely payment of such tax.

                  (g) The Company may, as a condition of transferring any stock
         pursuant to the Plan, require any person who is to acquire such stock
         (1) to give written assurances satisfactory to the Company as to the
         optionee's knowledge and experience in financial and business matters
         and/or to employ a purchaser representative reasonably satisfactory to
         the Company who is knowledgeable and experienced in financial and
         business matters, and that he or she is capable of evaluating, alone or
         together with the purchaser representative, the merits and risks of
         acquiring the stock; and (2) to give written assurances satisfactory to
         the Company stating that such person is acquiring the stock for such
         person's own account and not with any present intention of selling or
         otherwise distributing the stock. These requirements, and any
         assurances given pursuant to such requirements, shall be inoperative if
         (i) the issuance of the shares has been registered under a then
         currently effective registration statement under the Securities Act, or
         (ii) as to any particular requirement, a determination is made by
         counsel for the Company that such requirement need not be met in the
         circumstances under the then applicable securities laws.

         9.       ADJUSTMENTS UPON CHANGES IN STOCK.

                  (a) If any change is made in the stock subject to the Plan, or
         subject to any Option Award granted under the Plan (through merger,
         consolidation, reorganization, recapitalization, stock dividend,
         dividend in property other than cash, stock split, liquidating
         dividend, combination of shares, exchange of shares, change in
         corporate structure or otherwise), the Plan and outstanding Option
         Awards will be appropriately adjusted in the class(es) and maximum
         number of shares subject to the Plan and the class(es) and number of
         shares and price per share of stock subject to outstanding Option
         Awards.

                  (b) In the event of: (1) a merger or consolidation in which
         the Company is not the surviving corporation, or (2) a reverse merger
         in which the Company is the surviving corporation but the shares of the
         Company's common stock outstanding immediately preceding the merger are
         converted by virtue of the merger into other property, whether in the
         form of securities, cash or otherwise, then to the extent permitted by
         applicable law: (i) any surviving corporation shall assume any Option
         Awards outstanding under the Plan or shall substitute similar rights
         for those outstanding under the Plan, or (ii) such Option Awards shall
         continue in full force and effect. In the event

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         any surviving corporation refuses to assume or continue such Option
         Awards, or to substitute similar Option Awards for those outstanding
         under the Plan, then, with respect to Option Awards held by persons
         then performing services as employees or as consultants or directors
         for the Company, as the case may be, the time during which such Option
         Awards shall vest shall be accelerated and the Option Awards terminated
         if not exercised prior to such event. In the event of a dissolution or
         liquidation of the Company, any options outstanding under the Plan
         shall terminate if not exercised prior to such event.

         10.      AMENDMENT OF THE PLAN.

                  (a) The Committee at any time, and from time to time, may
         amend the Plan, subject to and within limitations of any resolutions
         approved by the Board of Directors. However, except as provided in
         paragraph 9 relating to adjustments upon changes in stock, no amendment
         shall be effective unless approved by the shareholders of the Company
         within twelve (12) months before or after the adoption of the
         amendment, where the amendment will increase the number of shares
         reserved for issuance under the Plan.

                  (b) With a view to making available the benefits provided by
         Section 422 of the Code, if deemed desirable by the Board, the Board in
         its discretion shall determine at the time of each amendment of the
         Plan whether or not to submit such amendment to the shareholders of the
         Company for approval.

                  (c) Rights and obligations under any Option Award granted
         before amendment of the Plan shall not be altered or impaired by any
         amendment of the Plan unless (i) the Company requests the consent of
         the person to whom the Option Award was granted and (ii) such person
         consents in writing.

         11.      TERMINATION OR SUSPENSION OF THE PLAN.

                  (a) The Committee may suspend or terminate the Plan at any
         time. Unless sooner terminated, the Plan shall terminate ten (10) years
         from the date the Plan is adopted by the Board or approved by the
         shareholders of the Company, whichever is earlier. Upon termination of
         the Plan, all Option Awards shall become fully vested. No Option Awards
         may be granted under the Plan while the Plan is suspended or after it
         is terminated.

                  (b) Rights and obligations under any Option Award granted
         while the Plan is in effect shall not be altered or impaired by
         suspension or termination of the Plan, except with the consent of the
         person to whom the Option Award was granted.

         12.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as of October ____, 2001, but no Option
Award granted under the Plan shall be exercised and no stock shall otherwise be
issued under the Plan unless and until the Plan has been approved by the
shareholders of the Company.

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         IN WITNESS WHEREOF, the authorized officer of the Company has executed
this Plan on this 1st day of October, 2001.

                                       GTx, Inc.

                                       By: /s/ Henry P. Doggrell
                                           -------------------------------------
                                       Title: General Counsel and Secretary
                                              ----------------------------------

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                                AMENDMENT TO THE
                                    GTX, INC.
                             2001 STOCK OPTION PLAN

         WHEREAS, GTx, Inc. (the "Company") adopted the 2001 Stock Option Plan
(the "Plan") effective October 1, 2001 and granted the Committee the right to
amend the Plan;

         WHEREAS, it has been determined that the Plan should be amended for the
purpose of changing the definition of the terms "permanent and total disability"
and "Change in Control";

         WHEREAS, the Committee of the Company has approved such amendments;

         NOW, THEREFORE, the Plan is hereby amended, effective as of the date
hereof, as follows:

         1. The definition of the term "permanent and total disability" set
forth in Section 5 of the Plan is hereby amended to have the following meaning:
(A) the inability of the optionee to perform substantially all of his or her
duties and responsibilities to the Company by reason of a physical or mental
disability or infirmity (excluding, however, infrequent and temporary absences
due to ordinary illness) (i) for a continuous period of more than ninety (90)
days or (ii) at such time as the optionee submits satisfactory medical evidence
that he or she has a permanent physical or mental disability or infirmity which
will likely prevent him from returning to the performance of his work duties for
more than ninety (90) days, and (B) either the optionee or the Company shall
have given the other at least thirty (30) days prior written notice of intent to
terminate employment. The date of such permanent and total disability shall be
on the last day of such ninety (90) day period or the day on which the optionee
submits such satisfactory medical evidence, as the case might be.

         2. The definition of the term "Change in Control" set forth in Section
5(i) of the Plan is hereby amended to have the following meaning: (a) the sale
or other disposition of all or substantially all of the assets of the Company in
a single transaction or in a series of transactions (including, without
limitation, any liquidation or dissolution of the Company); (b) the sale or
other disposition of more than fifty percent (50%) of the issued and outstanding
voting stock of the Company, in a single transaction or in a series of
transactions. For such purposes, "voting stock" shall mean the capital stock of
the Company of any class or classes, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote for the election of members of the
Board of Directors (or Persons performing similar functions) of the Company; or
(3) a merger or consolidation of the Company with or into any other entity, if
immediately after giving effect to such transaction more than fifty percent
(50%) of the issued and outstanding voting stock of the surviving entity of such
transaction is held by persons who were not holders (taking into account their
individual and affiliated holdings) as of the date of the grant of this Option
of at least 20% of the voting stock of the Company. Notwithstanding the
foregoing, a "Change in Control" shall not include: (i) any transfer or issuance
of stock of the Company to one or more of the Company's lenders (or to any
agents or representatives thereof) in exchange for debt of the Company owed to
any such lenders; (ii) any transfer of stock of the Company to or by any person
or entity, including but not limited to one or more of the Company's lenders (or
to any agents or representatives thereof), pursuant to the terms of any pledge
of said stock as collateral

                                       12
<PAGE>

for any loans or financial accommodations to the Company and/or its
subsidiaries; (iii) any transfer or issuance to any person or entity, including
but not limited to one or more of the Company's lenders (or to any agents or
representatives thereof), in connection with the workout or restructuring of the
Company's debts to any one of the Company's lenders, including but not limited
to the issuance of new stock in exchange for any equity contribution to the
Company in connection with the workout or restructuring of such debt; or (iv)
any transfer of stock by a stockholder of the Company which is a partnership or
corporation to the partners or stockholders in such stockholder.

         IN WITNESS WHEREOF, the Company has caused this Amendment to be
executed on November 15, 2001.

                                        GTx, Inc.

                                        By:    /s/ Marc S. Hanover
                                               _________________________________
                                        Name:      Marc S. Hanover
                                               _________________________________
                                        Title:     President and COO
                                               _________________________________

                                       13<PAGE>

                                                                    EXHIBIT 10.4

                                    GTx, INC.

                             2002 STOCK OPTION PLAN

         1.       PURPOSE.

                  (a) The purpose of the GTx, Inc. 2002 Stock Option Plan (the
         "Plan") is to provide a means by which selected key employees and
         directors (if declared eligible under paragraph 4) of and consultants
         to GTx, Inc. (the "Company"), and its Affiliates, as defined in
         subparagraph 1(b), may be given an opportunity to benefit from
         increases in value of the stock of the Company. It is intended that
         this purpose will be effected through the granting of (i) incentive
         stock options and/or, (ii) nonstatutory stock options.

                  (b) The word "Affiliate" as used in the Plan means any parent
         corporation or subsidiary corporation of the Company, as those terms
         are defined in Sections 424 (e) and (f), respectively, of the Internal
         Revenue Code of 1986, as amended from time to time (the "Code").

                  (c) The Company, by means of the Plan, seeks to retain the
         services of persons now employed by or serving as consultants or
         directors to the Company, to secure and retain the services of persons
         capable of filling such positions, and to provide incentives for such
         persons to exert maximum efforts for the success of the Company.

                  (d) The Company intends that rights granted under the Plan
         ("Option Awards") shall, in the discretion of the Committee or Board of
         Directors of the Company (the "Board"), as applicable, be either (i)
         incentive stock options as that term is used in Section 422 of the Code
         ("Incentive Stock Options"), or (ii) stock options which do not qualify
         as Incentive Stock Options ("Supplemental Stock Options").

         2.       ADMINISTRATION.

                  (a) The Plan shall be administered by a Committee appointed by
         the Board of Directors of the Company composed of not fewer than three
         (3) Directors (the "Committee").

                  (b) The Committee shall have the power, subject to, and within
         the limitations of, the express provisions of the Plan and to such
         resolutions, not inconsistent with the provisions of the Plan, as may
         be adopted from time to time by the Board of Directors:

                           (i) To determine from time to time which of the
                  persons eligible under the Plan shall be granted Option
                  Awards; when and how Option Awards shall be granted; whether a
                  Option Award will be an Incentive Stock Option, a Supplemental
                  Stock Option, or a combination of the foregoing; and the
                  provisions of each Option Award granted (which need not be
                  identical).

                           (ii) To construe and interpret the Plan and Option
                  Awards granted under it, and to establish, amend and revoke
                  rules and regulations for its administration. The Committee,
                  in the exercise of this power, may correct any

<PAGE>

                  defect, omission or inconsistency in the Plan or in any Option
                  Award, in a manner and to the extent it shall deem necessary
                  or expedient to make the Plan fully effective, consistent with
                  its terms.

                           (iii) To amend the Plan as provided in paragraph 10.

                           (iv) Generally, to exercise such powers and to
                  perform such acts as the Committee deems necessary or
                  expedient to promote the best interests of the Company.

                  (c) The Board of Directors may abolish the Committee at any
         time and revest in the Board of Directors the administration of the
         Plan.

         3.       SHARES SUBJECT TO THE PLAN.

                  (a) Subject to the provisions of paragraph 9 relating to
         adjustments upon changes in stock, the stock that may be issued
         pursuant to Option Awards granted under the Plan shall not exceed in
         the aggregate Fifty Thousand (50,000) shares of the Company's common
         stock issued and outstanding as of the date of shareholder approval of
         the Plan. If any option or right granted under the Plan shall for any
         reason expire or otherwise terminate without having been exercised in
         full, the stock not issued under such option or right shall again
         become available for the Plan.

                  (b) The stock subject to the Plan may be unissued shares or
         reacquired shares, bought on the market or otherwise.

         4.       ELIGIBILITY.

                  (a) Incentive Stock Options may be granted only to employees
         (including officers) of the Company or its Affiliates. A director of
         the Company shall not be eligible to receive Incentive Stock Options
         unless such director is also an employee (including an officer) of the
         Company or any Affiliate. Option Awards other than Incentive Stock
         Options may be granted only to directors, officers or employees of or
         consultants to the Company or its Affiliates.

                  (b) No person shall be eligible for the grant of an Incentive
         Stock Option under the Plan if, at the time of grant, such person owns
         (or is deemed to own pursuant to 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 of any of its
         Affiliates unless the exercise price of such option is at least one
         hundred ten percent (110%) of the fair market value of such stock at
         the date of grant and the term of the option does not exceed five (5)
         years from the date of grant.

         5.       TERMS OF STOCK OPTIONS.

         Each stock option shall be in such form and shall contain such terms
and conditions as the Board or the Committee shall deem appropriate. All options
shall be separately designated Incentive Stock Options or Supplemental Stock
Options at the time of grant, and in such form as

                                       2
<PAGE>

issued pursuant to this paragraph, and a separate certificate or certificates
shall be issued for shares purchased on exercise of each type of option. An
option designated as a Supplemental Stock Option shall not be treated as an
Incentive Stock Option. The provisions of separate options need not be
identical, but each option shall include (through incorporation of provisions
hereof by reference in the option or otherwise) the substance of each of the
following provisions:

                  (a) The term of any option shall not be greater than ten (10)
         years from the date it was granted or, in the case of any option
         contemplated by paragraph 4(b), five (5) years from the date of grant.

                  (b) The exercise price of each Incentive Stock Option shall be
         not less than one hundred percent (100%) of the fair market value of
         the stock subject to the option on the date the option is granted or,
         in the case of any option contemplated by paragraph 4(b), one hundred
         ten percent (110%) of the fair market value of the stock subject to the
         option on the date of grant of the option.

                  (c) The purchase price of stock acquired pursuant to an option
         shall be paid, to the extent permitted by applicable statutes and
         regulations, either (i) in cash at the time the option is exercised, or
         (ii) at the discretion of the Committee either at the time of the grant
         or exercise of the option, (A) by delivery to the Company of other
         common stock of the Company, (B) according to a deferred payment or
         other arrangement (which may include, without limiting the generality
         of the foregoing, the use of other common stock of the Company) with
         the person to whom the option is granted or to whom the option is
         transferred pursuant to subparagraph 5(d), or (C) in any other form of
         legal consideration that may be acceptable to the Committee.

                  (d)

                           (i) Unless otherwise expressly stated in the option,
                  an option shall not be transferable except by will or by the
                  laws of descent and distribution, and shall be exercisable
                  during the lifetime of the person to whom the option is
                  granted only by such person, nor shall an option holder have
                  the right or power to anticipate, accelerate, convey, assign
                  or otherwise alienate, hypothecate, pledge or otherwise
                  encumber any option award or the shares subject to an option
                  award.

                           (ii) Except with respect to Incentive Stock Options,
                  the Committee may, in its discretion, establish forms and
                  procedures for the transfer of all or any portion of such
                  Option Award by the optionee to (i) Immediate Family Members
                  (as defined hereinafter), (ii) a trust or trusts for the
                  exclusive benefit of the optionee and such Immediate Family
                  Members, or (iii) a partnership or limited liability company
                  in which the optionee and such Immediate Family Members are
                  the only partners or members (collectively such optionee's
                  "Permitted Transferees"), provided that subsequent transfers
                  shall be prohibited except in accordance with the laws of
                  descent and distribution, or by will. Notification and
                  approval of all such transfers shall be in the form specified
                  by the Committee. Following transfer, any such Option Award
                  shall continue to be subject to the same terms and conditions
                  as were applicable immediately prior to transfer,

                                       3
<PAGE>

                  provided that for purposes of this Plan, wherever appropriate,
                  the term "optionee" shall be deemed to refer to the Permitted
                  Transferee. Notwithstanding the foregoing, the Plan Committee
                  and the Company shall have no obligation to inform any
                  Permitted Transferee of any expiration, termination, lapse or
                  acceleration of any such Option Award and may give notices
                  required hereunder, if any, to the optionee. The events of
                  termination of employment hereof shall continue to be applied
                  with respect to the original optionee, following which the
                  Option Award shall be exercisable by the Permitted Transferee
                  only to the extent, and for the periods specified herein. As
                  used herein "Immediate Family Member" shall mean, with respect
                  to the optionee, his or her spouse, child, stepchild,
                  grandchildren or other descendants, and shall include
                  relationships arising from legal adoption.

                  (e) The total number of shares of stock subject to an option
         may, but need not, be allotted in periodic installments (which may, but
         need not, be equal). From time to time during each of such installment
         periods, the option may become exercisable ("vest") with respect to
         some or all of the shares allotted to that period, and may be exercised
         with respect to some or all of the shares allotted to such period
         and/or any prior period as to which the option was not fully exercised.
         During the remainder of the term of the option (if its term extends
         beyond the end of the installment periods), the option may be exercised
         from time to time with respect to any shares then remaining subject to
         the option. In the absence of a specific provision to the contrary in a
         particular option grant, an option award shall vest one-third (1/3) on
         the third anniversary of the date of grant of such option award, an
         additional one-third on the fourth anniversary of the date of grant of
         such option award, and the final one-third (1/3) shall vest on the
         fifth anniversary of the date of grant of such option award. The
         provisions of this subparagraph 5(e) are subject to any option
         provisions governing the minimum number of shares as to which an option
         may be exercised.

                  (f) An option shall terminate three (3) months after
         termination of the optionee's employment or relationship as a director
         of or consultant to the Company or an Affiliate, unless (i) such
         termination is due to such person's permanent and total disability,
         within the meaning of Section 422(c)(6) of the Code, in which case the
         option may, but need not, provide that it may be exercised at any time
         within one (1) year following such termination of employment or
         relationship as a director or consultant; or (ii) the optionee dies
         while in the employ of or while serving as a director of or consultant
         to the Company or an Affiliate, or within not more than three (3)
         months after termination of such relationship, in which case the option
         may, but need not, provide that it may be exercised at any time within
         eighteen (18) months following the death of the optionee by the person
         or persons to whom the optionee's rights under such option passes by
         will or by the laws of descent and distribution; or (iii) such
         termination is due to such person's voluntary retirement in accordance
         with subparagraph (h) below, in which case the option may be exercised
         at any time within the earlier of five (5) years from the date of
         termination of such employment or relationship, as the case may be, or
         the term of the option; or (iv) the option by its terms specifies
         either (a) that it shall terminate sooner than three (3) months after
         termination of the optionee's employment or relationship as a director
         or consultant, or (b) that it may be exercised more than three (3)
         months after

                                       4
<PAGE>

         termination of the optionee's employment or relationship with the
         Company or an Affiliate. This subparagraph 5(f) shall not be construed
         to extend the term of any option or to permit anyone to exercise the
         option after expiration of its term, nor shall it be construed to
         increase the number of shares as to which any option is exercisable
         from the amount exercisable on the date of termination of the
         optionee's employment or relationship as a consultant or director.

                  (g) Prior to such time as the Company's shares of common stock
         are first sold to the public in an offering registered pursuant to
         Section 5 of the Securities Act of 1933, as amended ("Initial Public
         Offering"), any shares of stock acquired through the exercise of an
         option shall be subject to a thirty (30) day right of first refusal by
         the Company at the same price and terms as offered by any third party
         pursuant to a bona fide offer, and may not be sold prior to an offer to
         sell to the Company on such terms. Further, shares acquired through
         exercise of an option award shall be subject to the terms and
         conditions of the Amended and Restated Voting and Shareholder Agreement
         dated October 5, 2001, between the Company and its stockholders, as
         amended from time to time (the "Stockholders Agreement").

                  (h) In the event of a participant's termination of employment
         or service as a director, as applicable, by reason of voluntary
         retirement (at or after age sixty-five (65) or after age fifty-five
         with no fewer than five (5) years of service), death, permanent and
         total disability, involuntary termination (other than a termination for
         cause but including any involuntary termination as the result of a
         Change in Control, as addressed below), with respect to such
         participant's Option Award(s), the Committee may in its sole, absolute
         and final discretion elect to vest any or all shares not otherwise
         vested under the terms of the Plan.

         For purposes of this section, a permanent and total disability shall
mean (A) the inability of the optionee to perform substantially all of his or
her duties and responsibilities to the Company by reason of a physical or mental
disability or infirmity (excluding, however, infrequent and temporary absences
due to ordinary illness) (i) for a continuous period of more than ninety (90)
days or (ii) at such time as the optionee submits satisfactory medical evidence
that he or she has a permanent physical or mental disability or infirmity which
will likely prevent him from returning to the performance of his work duties for
more than ninety (90) days, and (B) either the optionee or the Company shall
have given the other at least thirty (30) days prior written notice of intent to
terminate employment. The date of such permanent and total disability shall be
on the last day of such ninety (90) day period or the day on which the optionee
submits such satisfactory medical evidence, as the case might be.

         For purposes of this section, a termination for cause shall mean the
termination of an individual's status as an employee or director of the Company,
as applicable, as the result of (i) fraud or dishonesty in connection with the
business of the Company; (ii) gross negligence in the performance of duties for
the Company; (iii) willful failure in carrying out duties as an employee,
director or consultant; or (iv) arrest and conviction of a felony involving
moral turpitude, whether or not in connection with the business of the Company;
provided that (iii) above shall not apply if the Option Award holder has been
assigned by the Company to duties which are not comparable to such holder's
function and compensation at the Company, or which

                                       5
<PAGE>

are non-executive or demeaning assignments, or if the Company has given such
participant demeaning and unreasonable pay cuts.

                  (i) In the event of a Change in Control of the Company, all
         shares subject to all Option Awards shall become one hundred percent
         (100%) vested and shall be converted to cash, options or stock of
         equivalent value in the surviving organization under terms and
         condition which substantially preserve the economic status of the
         Participants, as determined by the Committee. For purposes of this
         paragraph, a Change in Control shall mean:

                           (a) The sale or other disposition of all or
                  substantially all of the assets of the Company in a single
                  transaction or in a series of transactions (including, without
                  limitation, any liquidation or dissolution of the Company);
                  (b) the sale or other disposition of more than fifty percent
                  (50%) of the issued and outstanding voting stock of the
                  Company, in a single transaction or in a series of
                  transactions; or (c) a merger or consolidation of the Company
                  with or into any other entity, if immediately after giving
                  effect to such transaction more than fifty percent (50%) of
                  the issued and outstanding voting stock of the surviving
                  entity of such transaction is held by persons who were not
                  holders (taking into account their individual and affiliated
                  holdings) as of the date of the grant of this Option of at
                  least 20% of the voting stock of the Company. For such
                  purposes, "voting stock" shall mean the capital stock of the
                  Company of any class or classes, the holders of which are
                  ordinarily, in the absence of contingencies, entitled to vote
                  for the election of members of the Board of Directors (or
                  Persons performing similar functions) of the Company.
                  Notwithstanding the foregoing, a "Change in Control" shall not
                  include: (i) any transfer or issuance of stock of the Company
                  to one or more of the Company's lenders (or to any agents or
                  representatives thereof) in exchange for debt of the Company
                  owed to any such lenders; (ii) any transfer of stock of the
                  Company to or by any person or entity, including but not
                  limited to one or more of the Company's lenders (or to any
                  agents or representatives thereof), pursuant to the terms of
                  any pledge of said stock as collateral for any loans or
                  financial accommodations to the Company and/or its
                  subsidiaries; (iii) any transfer or issuance to any person or
                  entity, including but not limited to one or more of the
                  Company's lenders (or to any agents or representatives
                  thereof), in connection with the workout or restructuring of
                  the Company's debts to any one of the Company's lenders,
                  including but not limited to the issuance of new stock in
                  exchange for any equity contribution to the Company in
                  connection with the workout or restructuring of such debt; or
                  (iv) any transfer of stock by a stockholder of the Company
                  which is a partnership or corporation to the partners or
                  stockholders in such stockholder.

                  (j) In the event of an Initial Public Offering of the Company,
         Option Awards shall be convertible to options in shares of the newly
         public company, under terms and conditions which substantially preserve
         the rights and options of the participant. Any resulting registration
         of options or shares shall be effected at Company expense.

                                       6
<PAGE>

                  (k) If provided in the Option Award, each Option Award shall
         carry the right to receive any dividend or dividend equivalent on
         vested shares, under such terms and conditions as may be specified in
         the Option Award.

                  (l) Notwithstanding any other provisions of the Plan, any
         vested but unexercised Option Award shares shall be forfeited upon the
         Option Award holder's "Competition" with the Company. For this purpose,
         Competition shall be determined by the Committee, and shall exist if
         the Option Award holder while employed by or consulting for the Company
         and for a period of two (2) years thereafter directly or indirectly (i)
         engages or has a financial interest in, (ii) becomes an officer,
         employee, director, partner, advisor or consultant of or to, (iii) has
         an equity interest in, or (iv) in any way materially assists any
         person, corporation, entity or business whose existing or planned
         products or activities compete in whole or in part with the existing or
         planned products or activities of the Company. The sole fact of
         ownership by an Option Award holder of less than two percent (2%) of
         the stock of a publicly traded company which may have product lines
         which compete with product lines of this Company shall not be treated
         as Competition. Any determination by the Committee under this section
         shall be final and conclusive, unless overruled by the Board.

                  (m) Notwithstanding any other provision of the Plan or any
         Option Award to the contrary, any and all sales of shares to the
         Company or any Affiliate are contingent upon and subject to the terms
         and conditions of any bank loan covenants by the Company or any
         Affiliate.

         6.       COVENANTS OF THE COMPANY.

                  (a) During the terms of any Option Awards granted under the
         Plan, the Company shall keep available at all times the number of
         shares of stock required to satisfy such Option Awards.

                  (b) The Company shall seek to obtain from each regulatory
         commission or agency having jurisdiction over the Plan such authority
         as may be required to issue and sell shares of stock upon grant or
         exercise of Option Awards under the Plan; provided, however, that this
         undertaking shall not require the Company to register under the
         Securities Act of 1933, as amended (the "Securities Act"), either the
         Plan, any Option Award granted under the Plan or any stock issued or
         issuable pursuant to any such Option Awards. If, after reasonable
         efforts, the Company is unable to obtain from any such regulatory
         commission or agency the authority which counsel for the Company deems
         necessary for the lawful issuance and sale of stock under the Plan, the
         Company shall be relieved from any liability for failure to issue and
         sell stock upon exercise of such Option Awards unless and until such
         authority is obtained.

         7.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to Option Awards granted under
the Plan shall constitute general funds of the Company.

                                       7
<PAGE>

         8.       MISCELLANEOUS.

                  (a) The Committee shall have the power to accelerate the time
         during which a Option Award may be exercised or the time during which
         an option or stock acquired pursuant to a Option Award will vest,
         notwithstanding the provisions in the Option Award stating the time
         during which it may be exercised or the time during which stock
         acquired pursuant thereto will vest.

                  (b) Neither a recipient of a Option Award nor any person to
         whom a Option Award is transferred under subparagraph 5(d) shall be
         deemed to be the holder of, or to have any of the rights of a holder
         with respect to, any shares subject to such Option Award unless and
         until such person has satisfied all requirements for exercise of the
         Option Award pursuant to its terms and is thereby entitled to receive
         shares of stock.

                  (c) Throughout the term of any Option Award granted pursuant
         to the Plan, the Company shall make available to the holder of such
         Option Award, not later than one hundred twenty (120) days after the
         close of each of the Company's fiscal years during the option term,
         upon request, such financial and other information regarding the
         Company as comprises the annual report to the shareholders of the
         Company provided for in the bylaws of the Company.

                  (d) Nothing in the Plan or any instrument executed or Option
         Award granted pursuant thereto shall confer upon any recipient any
         right to continue in the employ of the Company or any Affiliate or to
         limit the Company's right to terminate the employment or consulting
         relationship or directorship of any eligible employee or recipient with
         or without cause. In the event that an Option Award recipient is
         permitted or otherwise entitled to take a leave of absence, the Company
         shall have the unilateral right to (i) determine whether such leave of
         absence will be treated as a termination of employment for purposes of
         his or her Option Award, or (ii) suspend or otherwise delay the time or
         times at which the shares subject to the Option Award would otherwise
         vest.

                  (e) To the extent provided by the terms of any Option Award,
         the recipient may satisfy any federal, state or local tax withholding
         obligation relating to the exercise or receipt of such Option Award by
         any of the following means or by a combination of such means: (1)
         tendering a cash payment; (2) authorizing the Company to withhold from
         the shares of the common stock otherwise issuable to the participant as
         a result of the exercise of receipt of the Option Award cash or a
         number of shares having a fair market value less than or equal to the
         amount of the withholding tax obligation; or (3) delivering to the
         Company owned and unencumbered shares of common stock of the Company
         having a fair market value less than or equal to the amount of the
         withholding tax obligation.

                  (f) In connection with each Option Award made pursuant to the
         Plan, the Company may require as a condition precedent to its
         obligation to issue or transfer shares to an eligible participant, or
         to evidence the removal of any restrictions on transfers or lapse of
         any repurchase right, that such participant make arrangements
         satisfactory to the Company to insure that the amount of any federal or
         other withholding tax required to be

                                       8
<PAGE>

         withheld with respect to such sale or transfer, or such removal or
         lapse, is made available to the Company for timely payment of such tax.

                  (g) The Company may, as a condition of transferring any stock
         pursuant to the Plan, require any person who is to acquire such stock
         (1) to give written assurances satisfactory to the Company as to the
         optionee's knowledge and experience in financial and business matters
         and/or to employ a purchaser representative reasonably satisfactory to
         the Company who is knowledgeable and experienced in financial and
         business matters, and that he or she is capable of evaluating, alone or
         together with the purchaser representative, the merits and risks of
         acquiring the stock; and (2) to give written assurances satisfactory to
         the Company stating that such person is acquiring the stock for such
         person's own account and not with any present intention of selling or
         otherwise distributing the stock. These requirements, and any
         assurances given pursuant to such requirements, shall be inoperative if
         (i) the issuance of the shares has been registered under a then
         currently effective registration statement under the Securities Act, or
         (ii) as to any particular requirement, a determination is made by
         counsel for the Company that such requirement need not be met in the
         circumstances under the then applicable securities laws.

         9.       ADJUSTMENTS UPON CHANGES IN STOCK.

                  (a) If any change is made in the stock subject to the Plan, or
         subject to any Option Award granted under the Plan (through merger,
         consolidation, reorganization, recapitalization, stock dividend,
         dividend in property other than cash, stock split, liquidating
         dividend, combination of shares, exchange of shares, change in
         corporate structure or otherwise), the Plan and outstanding Option
         Awards will be appropriately adjusted in the class(es) and maximum
         number of shares subject to the Plan and the class(es) and number of
         shares and price per share of stock subject to outstanding Option
         Awards.

                  (b) In the event of: (1) a merger or consolidation in which
         the Company is not the surviving corporation, or (2) a reverse merger
         in which the Company is the surviving corporation but the shares of the
         Company's common stock outstanding immediately preceding the merger are
         converted by virtue of the merger into other property, whether in the
         form of securities, cash or otherwise, then to the extent permitted by
         applicable law: (i) any surviving corporation shall assume any Option
         Awards outstanding under the Plan or shall substitute similar rights
         for those outstanding under the Plan, or (ii) such Option Awards shall
         continue in full force and effect. In the event any surviving
         corporation refuses to assume or continue such Option Awards, or to
         substitute similar Option Awards for those outstanding under the Plan,
         then, with respect to Option Awards held by persons then performing
         services as employees or as consultants or directors for the Company,
         as the case may be, the time during which such Option Awards shall vest
         shall be accelerated and the Option Awards terminated if not exercised
         prior to such event. In the event of a dissolution or liquidation of
         the Company, any options outstanding under the Plan shall terminate if
         not exercised prior to such event.

                                       9
<PAGE>

         10.      AMENDMENT OF THE PLAN.

                  (a) The Committee at any time, and from time to time, may
         amend the Plan, subject to and within limitations of any resolutions
         approved by the Board of Directors. However, except as provided in
         paragraph 9 relating to adjustments upon changes in stock, no amendment
         shall be effective unless approved by the shareholders of the Company
         within twelve (12) months before or after the adoption of the
         amendment, where the amendment will increase the number of shares
         reserved for issuance under the Plan.

                  (b) With a view to making available the benefits provided by
         Section 422 of the Code, if deemed desirable by the Board, the Board in
         its discretion shall determine at the time of each amendment of the
         Plan whether or not to submit such amendment to the shareholders of the
         Company for approval.

                  (c) Rights and obligations under any Option Award granted
         before amendment of the Plan shall not be altered or impaired by any
         amendment of the Plan unless (i) the Company requests the consent of
         the person to whom the Option Award was granted and (ii) such person
         consents in writing.

         11.      TERMINATION OR SUSPENSION OF THE PLAN.

                  (a) The Committee may suspend or terminate the Plan at any
         time. Unless sooner terminated, the Plan shall terminate ten (10) years
         from the date the Plan is adopted by the Board or approved by the
         shareholders of the Company, whichever is earlier. Upon termination of
         the Plan, all Option Awards shall become fully vested. No Option Awards
         may be granted under the Plan while the Plan is suspended or after it
         is terminated.

                  (b) Rights and obligations under any Option Award granted
         while the Plan is in effect shall not be altered or impaired by
         suspension or termination of the Plan, except with the consent of the
         person to whom the Option Award was granted.

         12.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective as of August 28, 2002, but no Option
Award granted under the Plan shall be exercised and no stock shall otherwise be
issued under the Plan unless and until the Plan has been approved by the
shareholders of the Company.

                                       10
<PAGE>

         IN WITNESS WHEREOF, the authorized officer of the Company has executed
this Plan on this 28th day of August, 2002.

                                            GTx, Inc.

                                            By:     /s/ Henry P. Doggrell
                                                   _____________________________
                                            Title: General Counsel and Secretary
                                                   _____________________________

                                       11

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