Document:

Exhibit 4.1                           Optionable, Inc. 2004 Stock Option Plan

                                OPTIONABLE, INC.

                             2004 Stock Option Plan

                            Adopted December 3, 2004

         1. Purpose of the Plan. The Optionable, Inc., 2004 Stock Option Plan
(the "Plan") is intended to advance the interests of Optionable, Inc. (the
"Company"), by inducing individuals, and eligible entities (as hereinafter
provided) of outstanding ability and potential to join and remain with, or
provide consulting or advisory services to, the Company, by encouraging and
enabling eligible employees, non-employee Directors, consultants, and advisors
to acquire proprietary interests in the Company, and by providing the
participating employees, non-employee Directors, consultants, and advisors with
an additional incentive to promote the success of the Company. This is
accomplished by providing for the granting of "Options", which term as used
herein includes both "Incentive Stock Options" and "Nonstatutory Stock Options"
(as hereinafter defined) to employees, non-employee Directors, consultants, and
advisors.

         2. Administration. The Plan shall be administered by the Board of
Directors of the Company (the "Board of Directors") or by a committee (the
"Committee") chosen by the Board of Directors. Except as herein specifically
provided, the interpretation and construction by the Board of Directors or the
Committee of any provision of the Plan or of any Option granted under it shall
be final and conclusive. The receipt of Options by Directors, or any members of
the Committee, shall not preclude their vote on any matters in connection with
the administration or interpretation of the Plan.

          3. Shares Subject to the Plan. The stock subject to Options granted
under the Plan shall be shares of the Company's Common Stock, par value $.0001
per share (the "Common Stock"), whether authorized but unissued or held in the
Company's treasury, or shares purchased from stockholders expressly for use
under the Plan. The maximum number of shares of Common Stock which may be issued
pursuant to Options granted under the Plan shall not exceed in the aggregate
seven million five hundred thousand (7,500,000) shares, plus such number of
Common Stock shares issuable upon the exercise of Reload Options (as hereinafter
defined) granted under the Plan, subject to adjustment in accordance with the
provisions of Section 12 hereof. The Company shall at all times while the Plan
is in force reserve such number of shares of Common Stock as will be sufficient
to satisfy the requirements of all outstanding Options granted under the Plan.
In the event any Option granted under the Plan shall expire or terminate for any
reason without having been exercised in full or shall cease for any reason to be
exercisable in whole or in part, the un-purchased shares subject thereto shall
again be available for Options under the Plan.

<PAGE>

          4. Participation. The class of individual or entity that shall be
eligible to receive Options under the Plan shall be (a) with respect to
Incentive Stock Options described in Section 6 hereof, all employees (including
officers) of either the Company or any subsidiary corporation of the Company,
and (b) with respect to Nonstatutory Stock Options described in Section 7
hereof, all employees (including officers) and non-employee Directors of, or
consultants and advisors to, either the Company or any subsidiary corporation of
the Company; provided, however, that Nonstatutory Stock Options shall not be
granted to any such consultants and advisors unless (i) bona fide services have
been or are to be rendered by such consultant or advisor and (ii) such services
are not in connection with the offer or sale of securities in a capital raising
transaction. For purposes of the Plan, for an entity to be an eligible entity,
it must be included in the definition of "employee" for purposes of a Form S-8
Registration Statement filed under the Securities Act of 1933, as amended (the
"Act"). The Board of Directors or the Committee, in its sole discretion, but
subject to the provisions of the Plan, shall determine the employees and
non-employee Directors of, and the consultants and advisors to, the Company and
its subsidiary corporations to whom Options shall be granted, and the number of
shares to be covered by each Option, taking into account the nature of the
employment or services rendered by the individuals or entities being considered,
their annual compensation, their present and potential contributions to the
success of the Company, and such other factors as the Board of Directors or the
Committee may deem relevant.

         5. Stock Option Agreement. Each Option granted under the Plan shall be
authorized by the Board of Directors or the Committee, and shall be evidenced by
a Stock Option Agreement which shall be executed by the Company and by the
individual or entity to whom such Option is granted. The Stock Option Agreement
shall specify the number of shares of Common Stock as to which any Option is
granted, the period during which the Option is exercisable, the option price per
share thereof, and such other terms and provisions not inconsistent with this
Plan.

         6. Incentive Stock Options. The Board of Directors or the Committee may
grant Options under the Plan, which Options are intended to meet the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code"), and which are subject to the following terms and conditions and
any other terms and conditions as may at any time be required by Section 422 of
the Code (referred to herein as an "Incentive Stock Option"):

                  (a) No Incentive Stock Option shall be granted to individuals
other than employees of the Company or of a subsidiary corporation of the
Company;

                  (b) Each Incentive Stock Option under the Plan must be granted
prior to the date which is ten (10) years from the date the Plan initially was
adopted by the Board of Directors of the Company;

                  (c) The option price of the shares of Common Stock subject to
any Incentive Stock Option shall not be less than the fair market value of the
Common Stock at the time such Incentive Stock Option is granted; provided,
however, if an Incentive Stock Option is granted to an individual who owns, at
the time the Incentive Stock Option is granted, more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or of a
parent or subsidiary corporation of the Company (a "Principal Stockholder"), the
option price of the shares subject to the Incentive Stock Option shall be at
least one hundred ten percent (110%) of the fair market value of the Common
Stock at the time the Incentive Stock Option is granted;

<PAGE>

                  (d) No Incentive Stock Option granted under the Plan shall be
exercisable after the expiration of ten (10) years from the date of its grant.
However, if an Incentive Stock Option is granted to a Principal Stockholder,
such Incentive Stock Option shall not be exercisable after the expiration of
five (5) years from the date of its grant. Every Incentive Stock Option granted
under the Plan shall be subject to earlier termination as expressly provided in
Section 12 hereof;

                  (e) For purposes of determining stock ownership under this
Section 6, the attribution rules of Section 424(d) of the Code shall apply; and

                  (f) For purposes of the Plan, and except as otherwise provided
herein, fair market value shall be determined by the Board of Directors or the
Committee. If the Common Stock is listed on a national securities exchange or
traded on the over-the-counter market, fair market value shall be the closing
selling price or, if not available, the closing bid price or, if not available,
the high bid price of the Common Stock quoted on such exchange, or on the
over-the-counter market as reported by The NASDAQ Stock Market ("NASDAQ") or, if
the Common Stock is not listed on NASDAQ, then by the National Quotation Bureau,
Incorporated, as the case may be, on the day immediately preceding the day on
which the Option is granted or exercised, as the case may be, or, if there is no
selling or bid price on that day, the closing selling price, closing bid price,
or high bid price on the most recent day which precedes that day and for which
such prices are available.

         7. Nonstatutory Stock Options. The Board of Directors or the Committee
may grant Options under the Plan which are not intended to meet the requirements
of Section 422 of the Code, as well as Options which are intended to meet the
requirements of Section 422 of the Code but the terms of which provide that they
will not be treated as Incentive Stock Options (referred to herein as a
"Nonstatutory Stock Options"). Nonstatutory Stock Options which are not intended
to meet those requirements shall be subject to the following terms and
conditions:

                  (a) A Nonstatutory Stock Option may be granted to any
individual or entity eligible to receive an Option under the Plan pursuant to
Section 4(b) hereof;

                  (b) The option price of the shares of Common Stock subject to
a Nonstatutory Stock Option shall be determined by the Board of Directors or the
Committee, in its sole discretion, at the time of the grant of the Nonstatutory
Stock Option; provided, however, the option price shall not be less than one
hundred percent (100%) of the fair market value of a share of Common Stock on
the date of grant. For purposes of this Section 7(b), fair market value shall
mean, if the Common Stock is publicly traded, the closing trading price on the
day preceding the date of the grant; and

                  (c) A Nonstatutory Stock Option granted under the Plan may be
of such duration as shall be determined by the Board of Directors or the
Committee (subject to earlier termination as expressly provided in Section 11
hereof).

<PAGE>

         8. Reload Feature. The Board of Directors or the Committee may grant
Options with a reload feature. A reload feature shall only apply when the option
price is paid by delivery of Common Stock (as set forth in Section 13(b)(ii)).
The Stock Option Agreement for the Options containing the reload feature shall
provide that the Option holder shall receive, contemporaneously with the payment
of the option price in shares of Common Stock, a reload stock option (the
"Reload Option") to purchase that number of shares of Common Stock equal to the
sum of (i) the number of shares of Common Stock used to exercise the Option, and
(ii) with respect to Nonstatutory Stock Options, the number of shares of Common
Stock used to satisfy any tax withholding requirement incident to the exercise
of such Nonstatutory Stock Option. The terms of the Plan applicable to the
Option shall be equally applicable to the Reload Option with the following
exceptions: (i) the option price per share of Common Stock deliverable upon the
exercise of the Reload Option, (A) in the case of a Reload Option which is an
Incentive Stock Option being granted to a Principal Stockholder, shall be one
hundred ten percent (110%) of the fair market value of a share of Common Stock
on the date of grant of the Reload Option, and (B) in the case of a Reload
Option which is an Incentive Stock Option being granted to a person other than a
Principal Stockholder or is a Nonstatutory Stock Option, shall be the fair
market value of a share of Common Stock on the date of grant of the Reload
Option; and (ii) the term of the Reload Option shall be equal to the remaining
option term of the Option (including a Reload Option) which gave rise to the
Reload Option. The Reload Option shall be evidenced by an appropriate amendment
to the Stock Option Agreement for the Option which gave rise to the Reload
Option. In the event the exercise price of an Option containing a reload feature
is paid by check and not in shares of Common Stock, the reload feature shall
have no application with respect to such exercise.

         9. Rights of Option Holders. The holder of any Option granted under the
Plan shall have none of the rights of a stockholder with respect to the stock
covered by his Option until such stock shall be transferred to him upon the
exercise of his Option and payment for the respective shares.

         10. Transferability. No Option granted under the Plan shall be
transferable by the individual or entity to whom it was granted otherwise than
by will or the laws of descent and distribution, or other operation of law, and,
during the lifetime of such individual, shall not be exercisable by any other
person, but only by the optionee.

         11. Termination of Employment or Death.

                  (a) Subject to the terms of the Stock Option Agreement, if the
employment of an employee by, or the services of a non-employee Director for, or
consultant or advisor to, the Company or a subsidiary corporation of the Company
shall be terminated for cause or voluntarily by the employee, non-employee
Director, consultant, or advisor, then his or its Option shall expire forthwith.
Subject to the terms of the Stock Option Agreement, and except as provided in
subsections (b) and (c) of this Section 11, if such employment or services shall
terminate for any other reason, then such Option may be exercised at any time
within three (3) months after such termination, subject to the provisions of
subsection (d) of this Section 11. For purposes of the Plan, the retirement of
an individual either pursuant to a pension or retirement plan adopted by the
Company or at the normal retirement date prescribed from time to time by the
Company shall be deemed to be a termination of such individual's employment
other than voluntarily or for cause. For purposes of this subsection (a), an
employee, non-employee Director, consultant, or advisor who leaves the employ or
services of the Company to become an employee or non-employee Director of, or a
consultant or advisor to, a subsidiary corporation of the Company or a
corporation (or subsidiary or parent corporation of the Company) which has
assumed the Option of the Company as a result of a corporate reorganization or
the like shall not be considered to have terminated his employment or services.

<PAGE>

                  (b) Subject to the terms of the Stock Option Agreement, if the
holder of an Option under the Plan dies (i) while employed by, or while serving
as a non-employee Director for or a consultant or advisor to, the Company or a
subsidiary corporation of the Company, or (ii) within three (3) months after the
termination of his employment or services other than voluntarily by the employee
or non-employee Director, consultant or advisor, or for cause, then such Option
may, subject to the provisions of subsection (d) of this Section 11, be
exercised by the estate of the employee or non-employee Director, consultant or
advisor, or by a person who acquired the right to exercise such Option by
bequest or inheritance or by reason of the death of such employee or
non-employee Director, consultant or advisor at any time within one (1) year
after such death.

                  (c) Subject to the terms of the Stock Option Agreement, if the
holder of an Option under the Plan ceases employment or services because of
permanent and total disability [within the meaning of Section 22(e)(3) of the
Code] while employed by, or while serving as a non-employee Director for or
consultant or advisor to, the Company or a subsidiary corporation of the
Company, then such Option may, subject to the provisions of subsection (d) of
this Section 11, be exercised at any time within one (1) year after his
termination of employment, termination of Directorship or termination of
consulting or advisory services, as the case may be, due to the disability.

                  (d) An Option may not be exercised pursuant to this Section 11
except to the extent that the holder was entitled to exercise the Option at the
time of termination of employment, termination of Directorship, termination of
consulting or advisory services, or death, and in any event may not be exercised
after the expiration of the Option, except as provided herein.

                  (e) For purposes of this Section 11, the employment
relationship of an employee of the Company or of a subsidiary corporation of the
Company will be treated as continuing intact while he is on military or sick
leave or other bona fide leave of absence (such as temporary employment by the
Government) if such leave does not exceed ninety (90) days, or, if longer, so
long as his right to reemployment is guaranteed either by statute or by
contract.

         12. Exercise of Options.

                  (a) Unless otherwise provided in the Stock Option Agreement,
any Option granted under the Plan shall be exercisable in whole at any time, or
in part from time to time, prior to expiration. The Board of Directors or the
Committee, in its absolute discretion, may provide in any Stock Option Agreement
that the exercise of any Options granted under the Plan shall be subject (i) to
such condition or conditions as it may impose, including, but not limited to, a
condition that the holder thereof remain in the employ or service of, or
continue to provide consulting or advisory services to, the Company or a
subsidiary corporation of the Company for such period or periods from the date
of grant of the Option as the Board of Directors or the Committee, in its
absolute discretion, shall determine; and (ii) to such limitations as it may
impose, including, but not limited to, a limitation that the aggregate fair
market value of the Common Stock with respect to which Incentive Stock Options
are exercisable for the first time by any employee during any calendar year
(under all plans of the Company and its parent and subsidiary corporations)
shall not exceed one hundred thousand dollars ($100,000). In addition, in the
event that, under any Stock Option Agreement, the aggregate fair market value of
the Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by any employee during any calendar year (under all plans of
the Company and its parent and subsidiary corporations) exceeds one hundred
thousand dollars ($100,000), the Board of Directors or the Committee may, when
shares are transferred upon exercise of such Options, designate those shares
which shall be treated as transferred upon exercise of an Incentive Stock Option
and those shares which shall be treated as transferred upon exercise of a
Nonstatutory Stock Option.

<PAGE>

                  (b) An Option granted under the Plan shall be exercised by the
delivery by the holder thereof to the Company at its principal office (attention
of the Secretary) of written notice of the number of shares with respect to
which the Option is being exercised. Such notice shall be accompanied, or
followed within ten (10) days of delivery thereof, by payment of the full option
price of such shares, and payment of such option price shall be made by the
holder's delivery of (i) his check payable to the order of the Company; (ii)
previously acquired Common Stock, the fair market value of which shall be
determined as of the date of exercise; (iii) by "cash-less" exercise, if
cash-less exercise is otherwise permitted by the Stock Option Agreement; or (iv)
by the holder's delivery of any combination of the foregoing (i), (ii) and
(iii).

         13. Adjustment Upon Change in Capitalization.

                  (a) In the event that the outstanding Common Stock is
hereafter changed by reason of reorganization, merger, consolidation,
recapitalization, reclassification, stock split-up, combination of shares,
reverse split, stock dividend or the like, an appropriate adjustment shall be
made by the Board of Directors or the Committee in the aggregate number of
shares available under the Plan, in the number of shares and option price per
share subject to outstanding Options, and in any limitation on exerciseability
referred to in Section 12(a)(ii) hereof which is set forth in outstanding
Incentive Stock Options. If the Company shall be reorganized, consolidated, or
merged with another corporation, the holder of an Option shall be entitled to
receive, upon the exercise of his Option, the same number and kind of shares of
stock or the same amount of property, cash or securities as he would have been
entitled to receive upon the happening of any such corporate event as if he had
been, immediately prior to such event, the holder of the number of shares
covered by his Option; provided, however, that, in such event, the Board of
Directors or the Committee shall have the discretionary power to take any action
necessary or appropriate to prevent any Incentive Stock Option granted hereunder
which is intended to be an "incentive stock option" from being disqualified as
such under the then existing provisions of the Code or any law amendatory
thereof or supplemental thereto.

                  (b) Any adjustment in the number of shares shall apply
proportionately to only the unexercised portion of the Option granted hereunder.
If fractions of a share would result from any such adjustment, the adjustment
shall be revised to the next lower whole number of shares.

         14. Further Conditions of Exercise.

                  (a) Unless prior to the exercise of the Option the shares
issuable upon such exercise have been registered with the Securities and
Exchange Commission pursuant to the Act, the notice of exercise shall be
accompanied by a representation or agreement of the person or estate exercising
the Option to the Company to the effect that such shares are being acquired for
investment purposes and not with a view to the further distribution thereof, and
such other documentation as may be required by the Company, unless, in the
opinion of counsel to the Company, such representation, agreement or
documentation is not necessary to comply with the Act.

                  (b) The Company shall not be obligated to deliver any Common
Stock until it has been listed on each securities exchange or market on which
the Common Stock may then be listed or until there has been qualification under
or compliance with such federal or state laws, rules or regulations as the
Company may deem applicable. The Company shall use reasonable efforts to obtain
such listing, qualification, and compliance.

         15. Effectiveness of the Plan.The Plan shall become operative and in
effect on such date as shall be fixed by the Board of Directors of the Company,
in its sole discretion, following approval by a vote of the majority of the
holders of the outstanding voting common shares of the Company.

         16. Termination, Modification and Amendment.

                  (a) The Plan (but not the Options granted pursuant to the
Plan) shall terminate on a date within ten (10) years from the date of its
adoption by the Board of Directors of the Company, or sooner as hereinafter
provided, and no Option shall be granted after termination of the Plan.

<PAGE>

                  (b) The Plan may, from time to time, be terminated, modified,
or amended by the affirmative vote of the holders of a majority of the
outstanding shares of capital stock of the Company present at a meeting of
shareholders and entitled to vote thereon (or, in the case of action by written
consent, a majority of the outstanding shares of capital stock of the Company
entitled to vote thereon).

                  (c) The Board of Directors may at any time, on or before the
termination date referred to in Section 16(a) hereof, terminate the Plan, or
from time to time make such modifications or amendments to the Plan as it may
deem advisable; provided, however, that the Board of Directors shall not,
without approval by the affirmative vote of the holders of a majority of the
outstanding shares of capital stock of the Company present at a meeting of
shareholders and entitled to vote thereon (or, in the case of action by written
consent, a majority of the outstanding shares of capital stock of the Company
entitled to vote thereon), increase (except as otherwise provided by Section 13
hereof) the maximum number of shares as to which Incentive Stock Options may be
granted hereunder, change the designation of the employees or class of employees
eligible to receive Incentive Stock Options, or make any other change which
would prevent any Incentive Stock Option granted hereunder which is intended to
be an "incentive stock option" from disqualifying as such under the then
existing provisions of the Code or any law amendatory thereof or supplemental
thereto.

                  (d) No termination, modification, or amendment of the Plan
may, without the consent of the individual or entity to whom any Option shall
have been granted, adversely affect any rights previously conferred by such
Option.

         17. Not a Contract of Employment. Nothing contained in the Plan or in
any Stock Option Agreement executed pursuant hereto shall be deemed to confer
upon any individual or entity to whom an Option is or may be granted hereunder
any right to remain in the employ or service of the Company or a subsidiary
corporation of the Company or any entitlement to any remuneration or other
benefit pursuant to any consulting or advisory arrangement.

         18. Use of Proceeds. The proceeds from the sale of shares pursuant to
Options granted under the Plan shall constitute general funds of the Company.

         19. Indemnification of Board of Directors or Committee. In addition to
such other rights of indemnification as they may have, the members of the Board
of Directors or the Committee, as the case may be, shall be indemnified by the
Company to the extent permitted under applicable law against all costs and
expenses reasonably incurred by them in connection with any action, suit, or
proceeding to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any rights
granted thereunder and against all amounts paid by them in settlement thereof or
paid by them in satisfaction of a judgment of any such action, suit or
proceeding, except a judgment based upon a finding of bad faith. Upon the
institution of any such action, suit, or proceeding, the member or members of
the Board of Directors or the Committee, as the case may be, shall notify the
Company in writing, giving the Company an opportunity at its own cost to defend
the same before such member or members undertake to defend the same on his or
their own behalf.

         20. Definitions. For purposes of the Plan, the terms "parent
corporation" and "subsidiary corporation" shall have the meanings set forth in
Sections 424(e) and 424(f) of the Code, respectively, and the masculine shall
include the feminine and the neuter as the context requires.

         21. Governing Law. The Plan shall be governed by, and all questions
arising hereunder shall be determined in accordance with, the laws of the State
of New York.Exhibit 4.2             Form of Incentive Stock Option Agreement

                                OPTIONABLE, INC.

                        INCENTIVE STOCK OPTION AGREEMENT

THIS INCENTIVE STOCK OPTION AGREEMENT (the "Agreement") is made and entered into
as of _______, 2004 (the "Grant Date") by and between Optionable, Inc., a
Delaware corporation (the "Company"), and ______________ (the "Optionee").

WHEREAS, the Company desires to grant the Optionee a stock option under the
Company's 2004 Stock Option Plan (the "Plan") to acquire shares of the Company's
Common Stock, $0.001 par value per share (the "Common Stock").

WHEREAS, Section 5 of the Plan provides that each option is to be evidenced by
an award agreement, setting forth the terms and conditions of the option.

NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the Company and the Optionee hereby agree as
follows:

                  Grant of Option. The Company hereby grants to the Optionee,
under the Plan and subject to the terms and conditions of the Plan, a stock
option (the "Option") to purchase all or any part of the number of shares of
Common Stock (the "Shares") set forth below the Optionee's name on the signature
page hereto, on the terms and conditions hereinafter set forth. The Option
granted hereunder shall be treated as an incentive stock option under section
422 of the Internal Revenue Code of 1986, as amended (the "Code").

                  Exercise Price. The exercise price per share ("Exercise
Price") for the Shares covered by the Option shall be ten cents ($.10) per
Share, subject to adjustment pursuant to Section 10.

                  Vesting.

The right to exercise the Option shall be ___ vested upon the Grant Date. The
"Vested Percentage" of the Option shall be as follows:

                  The right to exercise this Option shall immediately vest in
the event of a "Change of Control" of the Company. For this purpose, a "Change
of Control" means the acquisition after the date hereof, directly or indirectly,
by any Person of ownership of, or the power to direct the exercise of voting
power with respect to, a majority of the issued and outstanding voting shares of
the Company. For this purpose, a "Person" means an individual or a corporation,
partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or
political subdivision thereof) or other entity of any kind.

                  Term of Options.

                  Cancellation and Forfeiture. The Option shall be cancelled and
                                    shall be null and void, and the Optionee
                                    shall forfeit all rights pursuant to the
                                    Option, (i) if the Optionee does not execute
                                    and return this Agreement to the Company
                                    within sixty (60) days of the Grant Date,
                                    (ii) unless otherwise agreed to in writing
                                    by the Board, upon the Optionee's
                                    bankruptcy, and (iii) upon the Optionee's
                                    attempted assignment or transfer of the
                                    Option in violation of Section 9.

                  Termination.      The Option shall terminate and shall no
                                    longer be exercisable, even if vested, upon
                                    the earliest to occur of the following
                                    events:

                                    _________;

<PAGE>

                                    if the Optionee dies, the first anniversary
                                    of the date of death;

                                    immediately upon the termination of the
                                            Optionee's employment or service as
                                            a consultant for Cause, or because
                                            the Optionee is in breach of any
                                            employment or consulting agreement
                                            with the Company or one of its
                                            subsidiaries, in each case as
                                            determined by the Board. For
                                            purposes of this  Agreement "Cause"
                                            shall  mean (A) deliberate or
                                            intentional failure, in a continuing
                                            or repeated  manner, by the Optionee
                                            to  substantially perform the
                                            material duties of Optionee's
                                            employment or consulting
                                            relationship (other than due to
                                            Disability), (B) deliberate  or
                                            intentional engagement  by the
                                            Optionee in conduct which is
                                            materially  detrimental to the
                                            reputation, goodwill, business or
                                            operations or the Company or any of
                                            its subsidiaries, (C) willful  fraud
                                            or material dishonesty by the
                                            Optionee  in connection with the
                                            performance of the duties of the
                                            Optionee or (D) conviction or plea
                                            of nolo contendere by the Optionee
                                            to a felony or to a misdemeanor
                                            involving moral turpitude, all as
                                            determined by the Board; and

                                    three (3) months after termination of the
                                                     Optionee's employment or
                                                     service as a consultant
                                                     other than for Cause.

                  Exercise of Option.

                  Exercisability.   The Option shall be exercisable at any time
                                    prior to its termination pursuant to Section
                                    4(b) only to the extent of the Vested
                                    Percentage as of that time. Notwithstanding
                                    termination of the Option pursuant to
                                    Section 4(b), the Board, in its discretion,
                                    may extend the period of exercisability of
                                    the Option for such time period as it deems
                                    appropriate.

                  Method of Exercise. To the extent the Option is exercisable
                                    pursuant to Section 5(a), the  Optionee may
                                    exercise the Option in full or in part by
                                    giving written notice to the Company, signed
                                    by the Optionee (or his legal representative
                                    or heir, in the event of the Optionee's
                                    death), stating the Optionee's election to
                                    exercise the Option and the number of whole
                                    Shares for which the Option is being
                                    exercised. The written notice must be
                                    accompanied by (i) full  payment of the
                                    exercise price for the number of Shares
                                    being purchased, and (ii) an executed copy
                                    of the form of investor representation
                                    letter referred to in Section 6(b), if
                                    required pursuant to such Section 6(b).

<PAGE>

                  Payment of Exercise Price. Payment of the exercise price for
                                    the number of Shares for which the Option is
                                    being exercised shall be made:

                                   In cash or by check payable to the order of
                                   the Company;

                                   at the discretion of the Board, by tender to
                                                     the Company of shares of
                                                     Common Stock owned by the
                                                     Optionee, acceptable to the
                                                     Board, having a Fair Market
                                                     Value (as defined in the
                                                     Plan) on the date of
                                                     exercise at least equal to
                                                     the exercise price;

                                   at the discretion of the Board, by a
                                   combination of the methods described above;
                                   or

                                   by such other method as may be approved by
                                   the Board.

                  Maintenance of Shares. The Company shall at all times  during
                                    the term of the Option reserve and keep
                                    available such number of shares of its
                                    Common Stock as will be sufficient to
                                    satisfy the requirements of the Option.

                  Securities Law Restrictions.

                  The grant of the Option and the issuance of Shares upon
                                    exercise  of the  Option shall  be
                                    subject to compliance with all applicable
                                    requirements of federal, state or foreign
                                    law with respect to such securities. The
                                    Option may not be exercised if the issuance
                                    of Shares upon such exercise would
                                    constitute a violation of any applicable
                                    federal, state or foreign securities laws or
                                    other law or regulations. In addition, the
                                    Option may not be exercised unless (i) a
                                    registration statement under the Securities
                                    Act of 1933, as amended (the "Securities
                                    Act"), shall at the time of exercise of the
                                    Option be in effect with respect to the
                                    Shares to be issued upon exercise of the
                                    Option or (ii) in the opinion of legal
                                    counsel to the Company, the Shares to be
                                    issued upon exercise of the Option may be
                                    issued in accordance with the terms of an
                                    applicable exemption from the registration
                                    requirements of the Securities Act. THE
                                    OPTIONEE IS CAUTIONED THAT THE OPTION MAY
                                    NOT BE EXERCISABLE UNLESS THE FOREGOING
                                    CONDITIONS ARE SATISFIED. ACCORDINGLY, THE
                                    OPTIONEE MAY NOT BE ABLE TO EXERCISE THE
                                    OPTION WHEN DESIRED EVEN THOUGH THE OPTION
                                    IS VESTED. As a condition to the exercise of
                                    the Option, the Company may require the
                                    Optionee to satisfy any qualifications that
                                    may be necessary or appropriate, to evidence
                                    compliance with any applicable law or
                                    regulation and to make any representation or
                                    warranty with respect thereto as may be
                                    requested by the Company.

<PAGE>

                  In the event that, as of the date on which the Option is
                                    exercised in  whole or in  part,  the
                                    Shares to be issued upon exercise of the
                                    Option shall not be effectively registered
                                    under the Securities Act, the person
                                    exercising the Option shall give a written
                                    representation to the Company in the form
                                    attached hereto as Exhibit A and the Company
                                    shall place an "investment legend," as
                                    described in Exhibit A, upon any certificate
                                    for the Shares issued by reason of such
                                    exercise.

                  The Company shall be under no obligation to cause a
                                    registration  statement  or a post-effective
                                    amendment to any registration statement to
                                    be prepared for the purposes of covering the
                                    issue of Shares.

                  Intentionally Left Blank.

                  Non-Transferability.

                  Unless otherwise approved by the Board in its discretion, the
                                    Option may be exercised during the lifetime
                                    of the Optionee only by the Optionee and may
                                    not be assigned or transferred in any
                                    manner, except by will or by the laws of
                                    descent and distribution. Upon the
                                    Optionee's  death, the  Optionee's legal
                                    representative, or any person  empowered
                                    under  the Optionee's  will or  under
                                    applicable laws of descent and distribution,
                                    may exercise the Option to the extent
                                    unexercised and exercisable by the Optionee
                                    as of the date of death.

                  Except as provided in Section 9(a), without the prior written
                                    consent of the Board, no right or benefit
                                    under this  Agreement  shall be subject to
                                    anticipation, alienation, sale, assignment,
                                    pledge, encumbrance or charge,  and any
                                    attempt to anticipate, alienate, sell,
                                    assign,  pledge, encumber or  charge the
                                    same without such consent, if applicable,
                                    shall be void. Except with such consent, no
                                    right or benefit under this Agreement shall
                                    in any manner be liable for or subject to
                                    the debts, contracts, liabilities or torts
                                    of the Optionee.

                  Change in Stock Subject to Option. In the event of a
recapitalization, reclassification, stock dividend, stock split, reverse stock
split, or other change in corporate structure affecting the Common Stock, the
Board may adjust the terms of the Option in accordance with Section 3 of the
Plan.

<PAGE>

                  No Special Rights; Duties of Optionee.

                  The Optionee shall have no rights as a stockholder with
                                    respect to any Shares covered by the Option
                                    until the date of the issuance of a
                                    certificate or certificates for the Shares
                                    for  which the  Option has  been exercised.
                                    No adjustment shall  be made  for dividends
                                    or distributions or other rights for which
                                    the record date is prior to the date such
                                    certificate or certificates are issued,
                                    except as provided pursuant to Section 10.

                  Nothing contained in this Agreement shall be construed or
                                    deemed by  any person under  any
                                    circumstances to bind the Company to
                                    commence or continue the employment or
                                    consulting relationship of the Optionee for
                                    the period within which this Option may be
                                    exercised, nor shall this Agreement be
                                    construed to create any duty of the Company
                                    or any of its affiliates or any of its other
                                    shareholders to the Optionee, or any duty of
                                    the Optionee to the Company or any of its
                                    affiliates or other shareholders, comparable
                                    to the duties which partners or joint
                                    venturers may owe to each other. However,
                                    during the period that the Optionee provides
                                    employment or consulting services to the
                                    Company, the Optionee shall render
                                    diligently and faithfully the services which
                                    are assigned to the Optionee from time to
                                    time by the Board or by the executive
                                    officers of the Company. The Optionee shall
                                    at no time take any action which directly or
                                    indirectly would be inconsistent with the
                                    best interests of the Company.

                  Notices. Any notices or other communications required to be
given hereunder shall be given by hand delivery or by certified or registered
mail, return receipt requested, with all fees prepaid and addressed, if to the
Company, to it at 555 Pleasantville Road, South Building, Suite 110, Briarcliff
Manor, New York 10510, and if to the Optionee, at the address set forth on the
signature page hereto, or to such other address as either party may specify in
writing from time to time.

                  Termination or Amendment. The Board may terminate or amend the
Plan and/or the Option at any time; provided, however, that no such termination
or amendment may adversely affect the Option or any unexercised portion thereof
without the written consent of the Optionee.

                  Integrated Agreement. This Agreement constitutes the entire
understanding and agreement of the Optionee and the Company with respect to the
subject matter contained herein and supersedes any prior understanding or
agreement between the parties, whether or not in writing, including, but not
limited to, any prior grant by the Company or any of its officers or authorized
representatives to the Optionee of an option or warrant to purchase Common
Stock. There are no agreements, understandings, restrictions, representations,
or warranties among the Optionee and the Company other than those as set forth
or provided for herein. To the extent contemplated herein, the provisions of
this Agreement shall survive any exercise of the Option and shall remain in full
force and effect.

                  Binding Effect. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, executors,
administrations, successors and assigns.

<PAGE>

                  Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of
Delaware, without regard to principles of conflicts of laws.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Nonstatutory Stock
Option Agreement as of the Grant Date.

                                                     OPTIONABLE, INC.

                                                     By:________________________
                                                     Name:
                                                     Title:

The undersigned Optionee represents that the Optionee is familiar with the terms
and provisions of this Incentive Stock Option Agreement and the Plan, and hereby
accepts the Option subject to all of the terms and provisions thereof. The
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Board upon any questions arising under this Incentive
Stock Option Agreement and the Plan. The undersigned acknowledges receipt of a
copy of the Plan.

                                                   ________________________
                                                   Signature of Optionee

                                                   _______________________

                                                   Address:

                                                   _______________________

                                                   _______________________

                                                   _______________________

                           Social Security Number:
                           Number of Shares Subject to Option:

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