Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Searchlight Minerals Corp. - Exhibit 10.1

SEARCHLIGHT MINERALS CORP.

2007 STOCK OPTION PLAN

Established April 30, 2007

ARTICLE 1.
THE PLAN

	1.1 	
      Title

This plan is entitled the "2007 Stock Option Plan" (the "Plan")
of Searchlight Minerals Corp., a Nevada corporation (the "Company").

	1.2 	
      Purpose

The purpose of the Plan is to enhance the long-term stockholder
value of the Company by offering opportunities to directors, officers, employees
and eligible consultants of the Company and any Related Company, as defined
below, to acquire and maintain stock ownership in the Company in order to give
these persons the opportunity to participate in the Company's growth and
success, and to encourage them to remain in the service of the Company or a
Related Company. 

ARTICLE 2. 

  DEFINITIONS

	2.1 	
      Definitions

The following terms will have the following meanings in the
Plan: 

"Award" means any Option granted under this Plan. 

"Board" means the Board of Directors of the Company.

"Cause," unless otherwise defined in the
instrument evidencing the award or in an employment or services agreement
between the Company or a Related Company and a Participant, means a material
breach of the employment or services agreement, dishonesty, fraud, misconduct,
unauthorized use or disclosure of confidential information or trade secrets, or
conviction or confession of a crime punishable by law (except minor violations),
in each case as determined by the Plan Administrator, and its determination
shall be conclusive and binding. 

"Code" means the Internal Revenue Code of 1986, as
amended from time to time. 

"Common Stock" means the shares of common stock, par
value $0.001 per share, of the Company. 

“Consultant” means any consultant, agent, advisor or
independent contractor who provides services to the Company or a Related
Company, but does not include an officer or director of the Company.

"Consultant Participant" means a Participant who is
defined as a Consultant Participant in Article 5. 

"Corporate Transaction," unless otherwise defined in the
instrument evidencing the Award or in a written employment or services agreement
between the Company or a Related Company and a Participant, means consummation
of either:

1

	(a) 	
      a merger or consolidation of the Company with or into any
      other corporation, entity or person or

	 	 
	(b) 	
      a sale, lease, exchange or other transfer in one
      transaction or a series of related transactions of all or substantially
      all the Company's outstanding securities or all or substantially all the
      Company's assets; provided, however, that a Corporate Transaction shall
      not include a Related Party Transaction.

"Disability," unless otherwise defined by the
Plan Administrator, means a mental or physical impairment of the Participant
that is expected to result in death or that has lasted or is expected to last
for a continuous period of 12 months or more and that causes the Participant to
be unable, in the opinion of the Company, to perform his or her duties for the
Company or a Related Company and to be engaged in any substantial gainful
activity. 

"Employment Termination Date" means, with respect to a
Participant, the first day upon which the Participant no longer has an
employment or service relationship with the Company or any Related Company.

"Exchange Act" means the Securities Exchange Act of
1934, as amended. 

"Fair Market Value" means the per share value of the
Common Stock determined as follows: (a) if the Common Stock is listed on an
established stock exchange or exchanges or the NASDAQ National Market, the
average closing price per share during the twenty trading days immediately
preceding such date on the principal exchange on which it is traded or as
reported by NASDAQ; (b) if the Common Stock is not then listed on an exchange or
the NASDAQ National Market, but is quoted on the NASDAQ Capital Market, the OTC
Bulletin Board service or the Pink Sheets electronic quotation service, the
average of the closing bid and ask prices per share for the Common Stock as
quoted by NASD, the OTC Bulletin Board or the Pink Sheets, as the case may be,
during the twenty trading days immediately preceding such date; or (c) if there
is no such reported market for the Common Stock for the date in question, then
an amount determined in good faith by the Plan Administrator.

"Grant Date" means the date on which the Plan
Administrator completes the corporate action relating to the grant of an Award
or such later date specified by the Plan Administrator, and on which all
conditions precedent to the grant have been satisfied, provided that conditions
to the exercisability or vesting of Awards shall not defer the Grant Date. 

"Incentive Stock Option" means an Option granted with
the intention, as reflected in the instrument evidencing the Option, that it
qualify as an "incentive stock option" as that term is defined in Section 422 of
the Code. 

"Non-Qualified Stock Option" means an Option other than
an Incentive Stock Option. "Option" means the right to purchase Common
Stock granted under Article 7. "Option Expiration Date" has the meaning
set forth in Article 7.6. 

"Option Term" has the meaning set forth in Article 7.3.

"Participant" means the person to whom an Award is
granted and who meets the eligibility requirements imposed by Article 5,
including Consultant Participants, as defined in Article 5. 

"Plan Administrator" has the meaning set forth in
Article 3.1. 

"Related Company" means any entity that, directly or
indirectly, is in control of or is controlled by the Company. 

2

"Related Party Transaction" means: (a) a merger or
consolidation of the Company in which the holders of shares of Common Stock
immediately prior to the merger hold at least a majority of the shares of Common
Stock in the Successor Corporation immediately after the merger; (b) a sale,
lease, exchange or other transaction in one transaction or a series of related
transactions of all or substantially all the Company's assets to a wholly-owned
subsidiary corporation; (c) a mere reincorporation of the Company; or (d) a
transaction undertaken for the sole purpose of creating a holding company that
will be owned in substantially the same proportion by the persons who held the
Company's securities immediately before such transaction. 

"Securities Act" means the Securities Act of 1933, as
amended. 

"Successor Corporation" has the meaning set forth in
Article 11.3(a) . 

"Vesting Commencement Date" means the Grant Date or such
other date selected by the Plan Administrator as the date from which the Option
begins to vest for purposes of Article 7.4. 

ARTICLE 3. 
ADMINISTRATION

	3.1 	
      Plan Administrator

The Plan shall be administered by the Board or a committee
appointed by, and consisting of one or more members of, the Board (the "Plan
Administrator"). If and so long as the Common Stock is registered under Section
12(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the
members of any committee acting as Plan Administrator, with respect to any
persons subject or likely to become subject to Section 16 of the Exchange Act,
the provisions regarding (a) "outside directors" as contemplated by Section
162(m) of the Code and (b) "non-employee directors" as contemplated by Rule
16b-3 under the Exchange Act. Committee members shall serve for such term as the
Board may determine, subject to removal by the Board at any time. At any time
when no committee has been appointed to administer the Plan, then the Board will
be the Plan Administrator.

	3.2 	
      Administration and Interpretation by Plan
      Administrator

Except for the terms and conditions explicitly set forth in the
Plan, the Plan Administrator shall have exclusive authority, in its discretion,
to determine all matters relating to Awards under the Plan, including the
selection of individuals to be granted Awards, the type of Awards, the number of
shares of Common Stock subject to an Award, all terms, conditions, restrictions
and limitations, if any, of an Award and the terms of any instrument that
evidences the Award. The Plan Administrator shall also have exclusive authority
to interpret the Plan and the terms of any instrument evidencing the Award and
may from time to time adopt and change rules and regulations of general
application for the Plan's administration. The Plan Administrator's
interpretation of the Plan and its rules and regulations, and all actions taken
and determinations made by the Plan Administrator pursuant to the Plan, shall be
conclusive and binding on all parties involved or affected. The Plan
Administrator may delegate administrative duties to such of the Company's
officers as it so determines. 

ARTICLE 4. 
STOCK SUBJECT TO THE PLAN

	4.1 	
      Authorized Number of
Shares

Subject to adjustment from time to time as provided in this
Article 4.1 and in Article 11.1, the maximum aggregate number of shares of
Common Stock available for issuance under the Plan shall be Forty

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Million (40,000,000) shares.

	4.2 	
      Reuse of Shares

Any shares of Common Stock that have been made subject to an
Award that cease to be subject to the Award (other than by reason of exercise or
settlement of the Award to the extent it is exercised for or settled in shares)
shall again be available for issuance in connection with future grants of Awards
under the Plan. In the event shares issued under the Plan are reacquired by the
Company pursuant to any forfeiture provision or right of repurchase, such shares
shall again be available for the purposes of the Plan; provided, however, that
the maximum number of shares that may be issued upon the exercise of Incentive
Stock Options shall equal the share number stated in Article 4.1, subject to
adjustment from time to time as provided in Article 11.1; and provided, further,
that for purposes of Article 4.3, any such shares shall be counted in accordance
with the requirements of Section 162(m) of the Code. 

ARTICLE 5. 
ELIGIBILITY

	5.1 	
      Plan Eligibility

An Award may be granted to any officer, director or employee of
the Company or a Related Company that the Plan Administrator from time to time
selects. An Award may also be granted to any consultant, agent, advisor or
independent contractor who provides services to the Company or any Related
Company (a “Consultant Participant”), so long as such Consultant Participant:
(a) is a natural person; (b) renders bona fide services that are not in
connection with the offer and sale of the Company's securities in a
capital-raising transaction; and (c) does not directly or indirectly promote or
maintain a market for the Company's securities. 

ARTICLE 6.
AWARDS 

	6.1 	
      Form and Grant of Awards

The Plan Administrator shall have the authority, in its sole
discretion, to determine the type or types of Awards to be granted under the
Plan. Awards may be granted singly or in combination. 

	6.2 	
      Settlement of Awards

The Company may settle Awards through the delivery of shares of
Common Stock, the granting of replacement Awards or any combination thereof as
the Plan Administrator shall determine. Any Award settlement, including payment
deferrals, may be subject to such conditions, restrictions and contingencies as
the Plan Administrator shall determine. The Plan Administrator may permit or
require the deferral of any Award payment, subject to such rules and procedures
as it may establish, which may include provisions for the payment or crediting
of interest, or dividend equivalents, including converting such credits into
deferred stock equivalents. 

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ARTICLE 7. 
AWARDS OF OPTIONS

	7.1 	
      Grant of Options

The Plan Administrator shall have the authority, in its sole
discretion, to grant Options to Participants as Incentive Stock Options or as
Non-Qualified Stock Options (“Options”), which shall be appropriately
designated.

	7.2 	
      Option Exercise Price

The exercise price for shares purchased under an Option shall
be as determined by the Plan Administrator, provided that:

	(a) 	
      the exercise price for Options granted to Participants
      other than Consultant Participants shall not be less than the minimum
      exercise price required by Article 8.3 with respect to Incentive Stock
      Options and shall not be less than 85% of the Fair Market Value of the
      Common Stock on the Grant Date with respect to Non-Qualified Stock
      Options;

	 	 
	(b) 	
      the exercise price for Options granted to Consultant
      Participants shall not be less than 85% of the Fair Market Value of the
      Common Stock on the Grant Date.

	7.3 	
      Term of Options

Subject to earlier termination in accordance with the terms of
the Plan and the instrument evidencing the Option, the maximum term of an Option
(the "Option Term") shall be as established for that Option by the Plan
Administrator or, if not so established, shall be ten years from the Grant Date.

	7.4 	
      Exercise of Options

The Plan Administrator shall establish and set forth in each
instrument that evidences an Option the time at which, or the installments in
which, the Option shall vest and become exercisable, any of which provisions may
be waived or modified by the Plan Administrator at any time. 

The Plan Administrator, in its sole discretion, may adjust the
vesting schedule of an Option held by a Participant who works less than
"full-time" as that term is defined by the Plan Administrator or who takes a
Company-approved leave of absence. 

To the extent an Option has vested and become exercisable, the
Option may be exercised in whole or from time to time in part by delivery to the
Company of a written stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised, the
restrictions imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the Plan
Administrator, accompanied by payment in full as described in Article 7.5. An
Option may be exercised only for whole shares and may not be exercised for less
than a reasonable number of shares at any one time, as determined by the Plan
Administrator. 

	7.5 	
      Payment of Exercise Price

The exercise price for shares purchased under an Option shall
be paid in full to the Company by the delivery of consideration equal to the
product of the Option exercise price and the number of shares purchased. Such
consideration must be paid before the Company will issue the shares being
purchased and must be delivered in the form of a check or bank draft or other
method of payment or some combination thereof as may be acceptable to the Plan
Administrator for that purchase.

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	7.6 	
      Post-Termination Exercises

The Plan Administrator shall establish and set forth, in each
instrument that evidences an Option, whether the Option shall continue to be
exercisable, and the terms and conditions of such exercise, if the Participant
ceases to be employed by, or to provide services to, the Company or a Related
Company, which provisions may be waived or modified by the Plan Administrator at
any time. If not so established in the instrument evidencing the Option, the
Option shall be exercisable according to the following terms and conditions,
which may be waived or modified by the Plan Administrator at any time:

	(a) 	
      Except as otherwise set forth in this Article 7.6, any
      portion of an Option that is not vested and exercisable on the Employment
      Termination Date shall expire on such date.

	 	 	 
	(b) 	
      Any portion of an Option that is vested and exercisable
      on the Employment Termination Date shall expire on the earliest to occur
      of:

	 	 	 
		(i) 	
      if the Participant's Employment Termination Date occurs
      by reason of retirement, resignation or for any other reasons other than
      for Cause, Disability or death, the day which is ninety (90) days after
      such Employment Termination Date;

	 	 	 
		(ii) 	
      if the Participant's Employment Termination Date occurs
      by reason of Disability or death, the day which is six (6) months after
      such Employment Termination Date; and

	 	 	 
		(iii) 	
      the last day of the Option Term (the "Option Expiration
      Date").

	 	 	 
		
      Notwithstanding the foregoing, if the Participant dies
      after his or her Employment Termination Date, but while an Option is
      otherwise exercisable, the portion of the Option that is vested and
      exercisable on such Employment Termination Date shall expire upon the
      earlier to occur of: (A) the Option Expiration Date, and (B) the day which
      is six (6) months after the date of death, unless the Plan Administrator
      determines otherwise.

	 	 	 
		
      Also notwithstanding the foregoing, in case of
      termination of the Participant's employment or service relationship for
      Cause, all Options granted to that Participant shall automatically expire
      upon first notification to the Participant of such termination, unless the
      Plan Administrator determines otherwise. If a Participant's employment or
      service relationship with the Company is suspended pending an
      investigation of whether the Participant shall be terminated for Cause,
      all the Participant's rights under any Option shall likewise be suspended
      during the period of investigation. If any facts that would constitute
      termination for Cause are discovered after the Participant's relationship
      with the Company or a Related Company has ended, any Option then held by
      the Participant may be immediately terminated by the Plan Administrator,
      in its sole discretion.

	 	 	 
	(c) 	
      Unless the Plan Administrator determines otherwise, a
      termination of the Participant’s status as an employee, officer, director
      or Consultant of the Company or any Related Company (the “Original
      Position”), other than a termination for Cause, death or Disability, the
      Participant shall not be deemed to have ceased to be employed by or to
      have ceased providing services to the Company or any Related Company,
      provided that the Participant acts as an employee, officer, director or
      Consultant of the Company or a Related Company eligible to receive an
      Award under the provisions of Article 5, in another capacity, immediately
      upon the termination of the Original Position.

	 	 	 
	(d) 	
      The effect of a Company-approved leave of absence on the
      application of this Article 7 shall be determined by the Plan
      Administrator, in its sole discretion.

6

	(e) 	
      If a Participant's employment or service relationship
      with the Company or a Related Company terminates by reason of Disability
      or death, the Option shall become fully vested and exercisable for all the
      shares subject to the Option. Such Option shall remain exercisable for the
      time period set forth in this Article 7.6.

ARTICLE 8. 
INCENTIVE STOCK OPTION
LIMITATIONS

Notwithstanding any other provisions of the Plan, and to the
extent required by Section 422 of the Code, Incentive Stock Options shall be
subject to the following additional terms and conditions: 

	8.1 	
      Dollar Limitation

To the extent the aggregate Fair Market Value (determined as of
the Grant Date) of Common Stock with respect to which Incentive Stock Options
are exercisable for the first time during any calendar year (under the Plan and
all other stock option plans of the Company) exceeds $100,000, such portion in
excess of $100,000 shall be treated as a Non-Qualified Stock Option. In the
event the Participant holds two or more such Options that become exercisable for
the first time in the same calendar year, such limitation shall be applied on
the basis of the order in which such Options are granted. 

	8.2 	
      Eligible Employees

Individuals who are not employees of the Company or one of its
parent corporations or subsidiary corporations may not be granted Incentive
Stock Options. 

	8.3 	
      Exercise Price

The exercise price of an Incentive Stock Option shall be at
least 100% of the Fair Market Value of the Common Stock on the Grant Date, and
in the case of an Incentive Stock Option granted to a Participant who owns more
than 10% of the total combined voting power of all classes of the stock of the
Company or of its parent or subsidiary corporations (a "Ten Percent
Stockholder"), shall not be less than 110% of the Fair Market Value of the
Common Stock on the Grant Date. The determination of more than 10% ownership
shall be made in accordance with Section 422 of the Code. 

	8.4 	
      Exercisability

An Option designated as an Incentive Stock Option shall cease
to qualify for favorable tax treatment as an Incentive Stock Option to the
extent it is exercised (if permitted by the terms of the Option) (a) more than
three months after the Employment Termination Date if termination was for
reasons other than death or disability, (b) more than one year after the
Employment Termination Date if termination was by reason of disability, or (c)
after the Participant has been on leave of absence for more than 90 days, unless
the Participant's reemployment rights are guaranteed by statute or contract.

	8.5 	
      Taxation of Incentive Stock
  Options

In order to obtain certain tax benefits afforded to Incentive
Stock Options under Section 422 of the Code, the Participant must hold the
shares acquired upon the exercise of an Incentive Stock Option for two years
after the Grant Date and one year after the date of exercise. A Participant may
be subject to the alternative minimum tax at the time of exercise of an
Incentive Stock Option. The Participant shall give the Company prompt notice of
any disposition of shares acquired on the exercise of an Incentive Stock Option
prior to the expiration of such holding periods. 

7

	8.6 	
      Code Definitions

For the purposes of this Article 8, "parent corporation",
"subsidiary corporation" and "disability" shall have the meanings attributed to
those terms for purposes of Section 422 of the Code. 

ARTICLE 9. 
WITHHOLDING

	9.1 	
      General

The Company may require the Participant to pay to the Company
the amount of any taxes that the Company is required by applicable federal,
state, local or foreign law to withhold with respect to the grant, vesting or
exercise of an Award. The Company shall not be required to issue any shares
Common Stock under the Plan until such obligations are satisfied. 

	9.2 	
      Payment of Withholding Obligations in Cash or
      Shares

The Plan Administrator may permit or require a Participant to
satisfy all or part of his or her tax withholding obligations by: (a) paying
cash to the Company, (b) having the Company withhold from any cash amounts
otherwise due or to become due from the Company to the Participant, (c) having
the Company withhold a portion of any shares of Common Stock that would
otherwise be issued to the Participant having a value equal to the tax
withholding obligations (up to the employer's minimum required tax withholding
rate), or (d) surrendering any shares of Common Stock that the Participant
previously acquired having a value equal to the tax withholding obligations (up
to the employer's minimum required tax withholding rate to the extent the
Participant has held the surrendered shares for less than six months). 

ARTICLE 10. 
ASSIGNABILITY

	10.1 	
      Assignment

Neither an Award nor any interest therein may be assigned,
pledged or transferred by the Participant or made subject to attachment or
similar proceedings other than by will or by the applicable laws of descent and
distribution, and, during the Participant's lifetime, such Awards may be
exercised only by the Participant. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Plan Administrator, in its sole
discretion, may permit a Participant to assign or transfer an Award or may
permit a Participant to designate a beneficiary who may exercise the Award or
receive payment under the Award after the Participant's death; provided,
however, that any Award so assigned or transferred shall be subject to all the
terms and conditions of the Plan and those contained in the instrument
evidencing the Award. 

ARTICLE 11. 
ADJUSTMENTS

	11.1 	
      Adjustment of Shares

In the event, at any time or from time to time, a stock
dividend, stock split, spin-off, combination or exchange of shares,
recapitalization, merger, consolidation, distribution to stockholders other than
a normal cash dividend, or other change in the Company's corporate or capital
structure, including, without limitation, a Related Party Transaction, results
in: (a) the outstanding shares of Common Stock, or any securities exchanged
therefor or received in their place, being exchanged for a different number

8

or kind of securities of the Company or of any other
corporation, or (b) new, different or additional securities of the Company or of
any other corporation being received by the holders of shares of Common Stock of
the Company, then the Plan Administrator shall make proportional adjustments in:
(i) the maximum number and kind of securities subject to the Plan and issuable
as Incentive Stock Options as set forth in Article 4 and the maximum number and
kind of securities that may be made subject to Awards to any individual as set
forth in Article 4.3, and (ii) the number and kind of securities that are
subject to any outstanding Award and the per share price of such securities,
without any change in the aggregate price to be paid therefor. The determination
by the Plan Administrator as to the terms of any of the foregoing adjustments
shall be conclusive and binding. Notwithstanding the foregoing, a dissolution or
liquidation of the Company or a Corporate Transaction shall not be governed by
this Article 11.1 but shall be governed by Articles 11.2 and 11.3, respectively.

	11.2 	
      Dissolution or Liquidation

To the extent not previously exercised or settled, and unless
otherwise determined by the Plan Administrator in its sole discretion, Options
denominated in units shall terminate immediately prior to the dissolution or
liquidation of the Company. To the extent a forfeiture provision or repurchase
right applicable to an Award has not been waived by the Plan Administrator, the
Award shall be forfeited immediately prior to the consummation of the
dissolution or liquidation. 

	11.3 	
      Corporate Transaction

Options

	(a) 	
      In the event of a Corporate Transaction, except as
      otherwise provided in the instrument evidencing an Option (or in a written
      employment or services agreement between a Participant and the Company or
      Related Company) and except as provided in subsection (b) below, each
      outstanding Option shall be assumed or an equivalent option or right
      substituted by the surviving corporation, the successor corporation or its
      parent corporation, as applicable (the "Successor Corporation").

	 	 
	(b) 	
      If, in connection with a Corporate Transaction, the
      Successor Corporation refuses to assume or substitute for an Option, then
      each such outstanding Option shall become fully vested and exercisable
      with respect to 100% of the unvested portion of the Option. In such case,
      the Plan Administrator shall notify the Participant in writing or
      electronically that the unvested portion of the Option specified above
      shall be fully vested and exercisable for a specified time period. At the
      expiration of the time period, the Option shall terminate, provided that
      the Corporate Transaction has occurred.

	 	 
	(c) 	
      For the purposes of this Article 11.3, the Option shall
      be considered assumed or substituted for if following the Corporate
      Transaction the option or right confers the right to purchase or receive,
      for each share of Common Stock subject to the Option immediately prior to
      the Corporate Transaction, the consideration (whether stock, cash, or
      other securities or property) received in the Corporate Transaction by
      holders of Common Stock for each share held on the effective date of the
      transaction (and if holders were offered a choice of consideration, the
      type of consideration chosen by the holders of a majority of the
      outstanding shares); provided, however, that if such consideration
      received in the Corporate Transaction is not solely common stock of the
      Successor Corporation, the Plan Administrator may, with the consent of the
      Successor Corporation, provide for the consideration to be received upon
      the exercise of the Option, for each share of Common Stock subject
      thereto, to be solely common stock of the Successor Corporation
      substantially equal in fair market value to the per share consideration
      received by holders of Common Stock in the Corporate Transaction. The
      determination of such substantial equality of value of consideration shall
      be made by the Plan Administrator and its determination shall be
      conclusive and binding.

9

	(d) 	
      All Options shall terminate and cease to remain
      outstanding immediately following the Corporate Transaction, except to the
      extent assumed by the Successor Corporation.

	11.4 	
      Further Adjustment of
Awards

Subject to Articles 11.2 and 11.3, the Plan Administrator shall
have the discretion, exercisable at any time before a sale, merger,
consolidation, reorganization, liquidation or change of control of the Company,
as defined by the Plan Administrator, to take such further action as it
determines to be necessary or advisable, and fair and equitable to the
Participants, with respect to Awards. Such authorized action may include (but
shall not be limited to) establishing, amending or waiving the type, terms,
conditions or duration of, or restrictions on, Awards so as to provide for
earlier, later, extended or additional time for exercise, lifting restrictions
and other modifications, and the Plan Administrator may take such actions with
respect to all Participants, to certain categories of Participants or only to
individual Participants. The Plan Administrator may take such action before or
after granting Awards to which the action relates and before or after any public
announcement with respect to such sale, merger, consolidation, reorganization,
liquidation or change of control that is the reason for such action. 

	11.5 	
      Limitations

The grant of Awards shall in no way affect the Company's right
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets. 

	11.6 	
      Fractional Shares

In the event of any adjustment in the number of shares covered
by any Award, each such Award shall cover only the number of full shares
resulting from such adjustment. 

ARTICLE 12. 
AMENDMENT AND TERMINATION

	12.1 	
      Amendment or Termination of
Plan

The Board may suspend, amend or terminate the Plan or any
portion of the Plan at any time and in such respects as it shall deem advisable;
provided, however, that to the extent required for compliance with Section 422
of the Code or any applicable law or regulation, stockholder approval shall be
required for any amendment that would: (a) increase the total number of shares
available for issuance under the Plan, (b) modify the class of employees
eligible to receive Options, or (c) otherwise require stockholder approval under
any applicable law or regulation. Any amendment made to the Plan that would
constitute a "modification" to Incentive Stock Options outstanding on the date
of such amendment shall not, without the consent of the Participant, be
applicable to such outstanding Incentive Stock Options but shall have
prospective effect only. 

	12.2 	
      Term of Plan

Unless sooner terminated as provided herein, the Plan shall
terminate ten years after the earlier of the Plan's adoption by the Board and
approval by the stockholders. 

	12.3 	
      Consent of Participant

The suspension, amendment or termination of the Plan or a
portion thereof or the amendment of an outstanding Award shall not, without the
Participant's consent, materially adversely affect any rights under any Award
theretofore granted to the Participant under the Plan. Any change or adjustment
to an

10

outstanding Incentive Stock Option shall not, without the
consent of the Participant, be made in a manner so as to constitute a
"modification" that would cause such Incentive Stock Option to fail to continue
to qualify as an Incentive Stock Option. Notwithstanding the foregoing, any
adjustments made pursuant to Article 11 shall not be subject to these
restrictions. 

ARTICLE 13.
GENERAL 

	13.1 	
      Evidence of Awards

Awards granted under the Plan shall be evidenced by a written
instrument that shall contain such terms, conditions, limitations and
restrictions as the Plan Administrator shall deem advisable and that are not
inconsistent with the Plan. 

	13.2 	
      No Individual Rights

Nothing in the Plan or any Award granted under the Plan shall
be deemed to constitute an employment contract or confer or be deemed to confer
on any Participant any right to continue in the employ of, or to continue any
other relationship with, the Company or any Related Company or limit in any way
the right of the Company or any Related Company to terminate a Participant's
employment or other relationship at any time, with or without Cause. 

	13.3 	
      Issuance of Shares

Notwithstanding any other provision of the Plan, the Company
shall have no obligation to issue or deliver any shares of Common Stock under
the Plan or make any other distribution of benefits under the Plan unless, in
the opinion of the Company's counsel, such issuance, delivery or distribution
would comply with all applicable laws (including, without limitation, the
requirements of the Securities Act), and the applicable requirements of any
securities exchange or similar entity. 

The Company shall be under no obligation to any Participant to
register for offering or resale or to qualify for exemption under the Securities
Act, or to register or qualify under state securities laws, any shares of Common
Stock, security or interest in a security paid or issued under, or created by,
the Plan, or to continue in effect any such registrations or qualifications if
made. The Company may issue certificates for shares with such legends and
subject to such restrictions on transfer and stop-transfer instructions as
counsel for the Company deems necessary or desirable for compliance by the
Company with federal and state securities laws. 

To the extent the Plan or any instrument evidencing an Award
provides for issuance of stock certificates to reflect the issuance of shares of
Common Stock, the issuance may be effected on a noncertificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock
exchange. 

	13.4 	
      No Rights as a Stockholder

No Option denominated in units shall entitle the Participant to
any cash dividend, voting or other right of a stockholder unless and until the
date of issuance under the Plan of the shares that are the subject of such
Award. 

	13.5 	
      Compliance With Laws and
  Regulations

Notwithstanding anything in the Plan to the contrary, the Plan
Administrator, in its sole discretion, may bifurcate the Plan so as to restrict,
limit or condition the use of any provision of the Plan to Participants who are
officers or directors subject to Section 16 of the Exchange Act without so
restricting, limiting or

11

conditioning the Plan with respect to other Participants.
Additionally, in interpreting and applying the provisions of the Plan, any
Option granted as an Incentive Stock Option pursuant to the Plan shall, to the
extent permitted by law, be construed as an "incentive stock option" within the
meaning of Section 422 of the Code. 

	13.6 	
      Participants in Other
Countries

The Plan Administrator shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to
comply with provisions of the laws of other countries in which the Company or
any Related Company may operate to assure the viability of the benefits from
Awards granted to Participants employed in such countries and to meet the
objectives of the Plan. 

	13.7 	
      No Trust or Fund

The Plan is intended to constitute an "unfunded" plan. Nothing
contained herein shall require the Company to segregate any monies or other
property, or shares of Common Stock, or to create any trusts, or to make any
special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than
those of a general unsecured creditor of the Company. 

	13.8 	
      Severability

If any provision of the Plan or any Award is determined to be
invalid, illegal or unenforceable in any jurisdiction, or as to any person, or
would disqualify the Plan or any Award under any law deemed applicable by the
Plan Administrator, such provision shall be construed or deemed amended to
conform to applicable laws, or, if it cannot be so construed or deemed amended
without, in the Plan Administrator's determination, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or Award, and the remainder of the Plan and any such Award
shall remain in full force and effect. 

	13.9 	
      Choice of Law

The Plan and all determinations made and actions taken pursuant
hereto, to the extent not otherwise governed by the laws of the United States,
shall be governed by the laws of the State of Nevada without giving effect to
principles of conflicts of law. 

ARTICLE 14. 
EFFECTIVE DATE

	14.1 	
      Effective Date of Plan

The effective date is the date on which the Plan is adopted by
the Board. If the stockholders of the Company do not approve the Plan within
twelve (12) months after the Board's adoption of the Plan, any Incentive Stock
Options granted under the Plan will be treated as Non-Qualified Stock Options.

12Exhibit 4.1 

Effective Date: January
15, 2004 

OPTION AGREEMENT 

        This
OPTION AGREEMENT (the “Agreement”) certifies that Strategic Growth
International, Inc. (“Holder”), subject to the terms and conditions hereof, is
entitled to purchase from AspenBio Pharma, Inc., f/k/a AspenBio, Inc., (the
“Company”), 798,000 shares (the “Option Shares”) of Company common
stock, no par value. This option, together with all options hereafter issued in exchange
or substitution for this option, is referred to as the “Option.” The number of
Option Shares is subject to adjustment as provided in Section 5 below. Notwithstanding
anything to the contrary contained herein, this Option shall expire at 5:00 p.m. MST on
January 15, 2009 (the “Termination Date”). 

         1.       
          Exercise of Options. 

         
          (a)       
          Holder may, at any time prior to the Termination Date, exercise this Option in
          whole or in part at an exercise price of $1.07 per share, subject to adjustment
          as provided herein (the “Option Price”), by the surrender of this
          Option (properly endorsed) at the principal office of the Company, or at such
          other agency or office of the Company in the United States of America as the
          Company may designate by notice in writing to Holder at the address of such
          Holder appearing on the books of the Company, and by payment to the Company of
          the Option Price in lawful money of the United States by check or wire transfer
          for each share of Common Stock being purchased. Upon the partial exercise of
          this Option, there shall be executed and issued to Holder a new Option in
          respect of the shares of Common Stock as to which this Option shall not have
          been exercised. In the event of the exercise of the rights represented by this
          Option, a certificate or certificates for the Option Shares so purchased, as
          applicable, registered in the name of Holder shall be delivered to Holder hereof
          as soon as practicable after the rights represented by this Option shall have
          been so exercised. 

         
          (b)       
          The Option may also be exercised by means of a “cashless exercise” in
          which Holder may, at its option, exchange the Option in increments of no less
          than 25,000 shares each, unless there are a total of less than 25,000 rights
          remaining (the “Option Exchange”), into Option Shares represented by
          this Agreement at the time of exercise by surrendering the Option at the
          principal office of the Company, accompanied by a notice stating such
          Holder’s intent to effect such exchange, and the date on which the
          Recipient requests that such Option Exchange occur (the “Notice of
          Exchange”). The Option Exchange shall be deemed to have taken place on the
          date the Notice of Exchange is received by the Company (the “Exchange
          Date”). Certificates for the Option Shares issuable upon such Option
          Exchange shall be issued and delivered to Holder within ten business days
          following the Exchange Date. In connection with any Option Exchange, this Option
          shall represent the right to subscribe for and acquire the number of Option
          Shares (rounded down to the next whole number) equal to the quotient obtained by
          subtracting (A)-(B), multiplying that difference times (X) and dividing that
          result by (A), where: 

1 

	 	                  (A)  	=
the average  Closing Price (as  hereinafter  defined) for the twenty trading days
preceding                           the Exchange Date; 

	 	                  (B)  	=
the exercise price of this Option, as adjusted; and 

	 	                  (X)  	=
Option Shares represented by this Agreement at the time of exercise. 

        The
“Closing Price” shall mean the closing price of the Common Stock as reported by
Bloomberg Financial L.P. on the date in question (based on a trading day from 9:30 a.m. ET
to 4:02 p.m. Eastern Time) (and, if no closing price is reported, the last closing price
as so reported, and if neither the closing price nor the last closing price is so
reported, the last reported price of the Common Stock as determined by the Company). 

         2.       
          Reservation of Option Shares. There has been reserved, and the Company
          will at all times keep reserved so long as any of the Options remain
          outstanding, out of its authorized Common Stock a number of shares of Common
          Stock sufficient to provide for the exercise of the rights of purchase
          represented by the outstanding Options and the underlying securities. 

         3.       
          No Stockholder Rights. This Option shall not entitle Holder hereof to any
          voting rights or other rights as a stockholder of the Company. 

         4.       
          Transferability of Option. Prior to the Termination Date and subject to
          compliance with applicable laws, this Option and all rights hereunder are
          transferable to one or more officers of Holder, in whole or in part, at the
          office or agency of the Company by Holder in person or by duly authorized
          attorney, upon surrender of this Option together with the Assignment Form
          annexed hereto properly endorsed for transfer. 

         5.       
          Certain Adjustments. With respect to any rights that Holder has to
          exercise this Option and convert into shares of Common Stock, Holder shall be
          entitled to the following adjustments: 

         
          (a)       
          Reclassification, Recapitalization, etc.  If the Company at any time
          shall, by subdivision, combination or reclassification of securities,
          recapitalization, automatic conversion, or other similar event affecting the
          number or character of outstanding shares of Common Stock, or otherwise, change
          any of the securities as to which exercise rights under this Option exist into
          the same or a different number of securities of any other class or classes, this
          Option shall thereafter represent the right to acquire such number and kind of
          securities as would have been issuable as the result of such change with respect
          to the securities that were subject to the exercise rights under this Option
          immediately prior to such subdivision, combination, reclassification or other
          change. 

         
          (b)       
          Split or Combination of Common Stock and Stock Dividend.  In case the
          Company shall at any time subdivide, redivide, recapitalize, split or change its
          outstanding shares of Common Stock into a greater number of shares or declare a
          dividend upon its Common Stock payable solely in shares of Common Stock, the
          Option Price shall be proportionately reduced and the number of Option Shares
          proportionately increased. Conversely, in case the outstanding shares of Common
          Stock of the Company shall be combined into a smaller number of shares, the
          Option Price shall be proportionately increased and the number of Option Shares
          proportionately reduced. Notwithstanding the foregoing, in no event will the
          Option Price be reduced below the par value of the Common Stock. 

2 

        6.       
Registration Rights.  The Parties acknowledge that the Option Shares were
already included in a resale registration statement.  After the Issue Date so long as
Holder is entitled to utilize the cashless exercise feature under Section 1(b), no
registration rights shall apply to the Option Shares. Upon such cashless exercise(s), the
holder shall be issued a certificate without a restrictive legend, to be issued
subject to the requirements of Rule 144 under the Securities Act of 1933, including
without limitation customary representations to be made by Holder as required under Rule
144.    

        7.       
Legend and Stop Transfer Orders. Unless the Option Shares are registered pursuant
to an effective registration statement under the Securities Act of 1933, upon exercise of
any part of the Option other than by cashless exercise as described in section
6, the Company shall instruct its transfer agent to enter stop transfer
orders with respect to such Option Shares, and all certificates or instruments
representing the Option Shares shall bear on the face thereof substantially the following
legend: 

THE SECURITIES EVIDENCED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT, AS AMENDED, OR ANY
OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED PURSUANT TO
A VALID EXEMPTION THEREFROM UNDER THE SECURITIES ACT. 

         8.       
          No Fractional Shares. The Company will not be required to issue
          fractional shares or scrip representing fractional shares upon the exercise of
          the Options, and any share amounts shall be rounded down to the nearest whole
          number. 

3 

         9.       
          Waiver. Neither Holder’s nor the Company’s failure to insist at
          any time upon strict compliance with this Agreement or any of its terms nor any
          continued course of such conduct on their part shall constitute or be considered
          a waiver by Holder or the Company of any of their respective rights or
          privileges under this Agreement. 

         10.       
          Notices. Any notice required or permitted to be given under this
          Agreement shall be sufficient if in writing, and if faxed, followed by a copy
          sent by First Class US mail or sent by certified mail, return receipt to: 

			
	COMPANY:

        

        

        

        

        

HOLDER: 

        

        

        

        

        
		AspenBio Pharma, Inc.

1585 South Perry Street

Castle Rock, CO 80104

Tel: 303/ 794-2000

Fax: 303/ 798-8332

Attn: Richard G. Donnelly

Strategic Growth International, Inc.

150 East 52nd Street, 22nd Floor

New York, NY 10022

Tel:  212/ 838-1444

Fax: 212/838-1511

Attn: _______________

         11.       
          Applicable Law. This Option shall be governed by and construed in
          accordance with the laws of the State of Colorado. 

         12.       
          Successors. All the covenants and provisions of this Option by or for the
          benefit of the Company shall bind and inure to the benefit of its successors and
          assigns hereunder. 

         13.       
          No Third Party Beneficiaries. Nothing in this Option shall be construed
          to give to any person or corporation other than the Company and Holder any legal
          or equitable right, remedy or claim under this Option. This Option shall be for
          the sole and exclusive benefit of the Company and Holder. 

         14.       
          Section Headings. The section headings herein are for convenience only
          and are not part of this Option and shall not affect the interpretation hereof. 

         15.       
          Mutilated or Missing Option Certificates. Upon receipt of evidence
          satisfactory to the Company of the loss, theft, destruction or mutilation of
          this Option, and of indemnity reasonably satisfactory to the Company, if lost,
          stolen or destroyed, and upon surrender and cancellation of this Option, if
          mutilated, the Company shall execute and deliver to Holder a new Option of like
          date, tenor and denomination. 

4 

        IN
WITNESS WHEREOF, the Company has caused this Option Agreement to be executed and entered
into as of this 2nd day of May 2007, to be effective as of January 15, 2004. 

		
		ASPENBIO PHARMA, INC.

By:   /s/ Richard G. Donnelly 

Name:    Richard G. Donnelly

Title:      President, Chief Executive Officer 

5 

ASSIGNMENT FORM 

        FOR
VALUE RECEIVED, __________________________, sells, assigns and transfers unto 

Name  

(Please type or print
in block letters) 

Address  

the right to purchase  or acquire
 Shares of ASPENBIO  PHARMA,  INC.  (the  "Company")  represented  by this Option
Agreement to the extent of _______ Shares as to which such right is  exercisable  and
does  irrevocably  constitute and appoint  _____________________   to  transfer  the
 Shares  on the  books of the  Company  with  full  power of substitution in the premises. 

______________________________________________________

Signature 

Dated:  _________________________ 

		
		Notice:   the   signature  of  this   assignment   must
correspond  with the name as it  appears  upon the face
of this Option Agreement in every  particular,  without
alteration or enlargement or any change whatever.

6 

Notice of Exchange 

To Be Executed by Holder
in Order to Exercise the Option(s) 

	To: 	AspenBio
Pharma, Inc.
          1585 South Perry Street    
      Castle Rock, CO  80104

         Attention:  Chief Financial Officer 

Dated:____________ 

        The
undersigned, pursuant to the provisions set forth in the attached Option Agreement, hereby
irrevocably elects to purchase (check applicable box): 

	 	     |_|  	_________
shares of the Common Stock of AspenBio Pharma, Inc. covered by such Option Agreement; or 

	 	|_|  	all
remaining Option Shares represented by the Option Agreement pursuant to the cashless
exercise procedure set forth in subsection 1(b) (if applicable).  

        The
undersigned herewith makes payment of the full purchase price for such shares at the price
per share provided for in the Option Agreement. Such payment takes the form of (check
applicable box or boxes): 

	 	     |_|  	$______
in lawful money of the United States; and/or 

	 	|_|  	if
the provisions of subsection 1(b) of the Option Agreement are in effect, the cancellation
of such number of Option Shares as is necessary, in accordance with the formula and
cashless exercise procedure set forth in subsection 1(b) of the Option Agreement, to
exercise this Option with respect to all of the remaining Option Shares represented by
the Option Agreement.  

The undersigned hereby requests that
certificates for the Option Shares purchased hereby be issued in the name of: 

______________________________________________________  

______________________________________________________  

______________________________________________________

                                                            (please print or type name
and address) 

______________________________________________________

                                                            (please insert social
security or other identifying number) 

7 

and be delivered as follows:

______________________________________________________

______________________________________________________

                                                             (please print or type name
and address) 

______________________________________________________

                                                             (please insert social
security or other identifying number) 

and if such number of shares of
Common Stock shall not be all the shares evidenced by the Option Agreement, that a new
Option for the balance of such shares be registered in the name of, and delivered to,
Holder. 

		
		______________________________
Signature of Holder

SIGNATURE GUARANTEE:

______________________________

8

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