Document:

EXHIBIT 10.2

                            RETENTION AWARD AGREEMENT

Awardee: Gad Riesenfeld ("Awardee")
Grant Date: September 6, 2004
$200,000
253,165 Shares of Restricted Stock

      This RETENTION AWARD AGREEMENT (the "Agreement") is made as of the Grant
Date by and between PHARMOS CORPORATION, a Nevada corporation (the "Company"),
and Awardee. Capitalized terms not defined herein shall have the meanings
ascribed to them in the Company's Amended and Restated 2000 Stock Option Plan
(the "Plan").

      The Board of Directors of the Company, through its Compensation/Stock
Option Committee, following its review of a survey of executive compensation
practices of comparable companies prepared for the Company, initially authorized
on June 30, 2004, the granting by the Company of a retention award to Awardee in
order to induce him to continue providing services to the Company as an
executive or in some other capacity for up to an additional three years from
such date.

      In consideration of the mutual promises and covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

      1. Grant of Award. The Company hereby grants to Awardee, subject to the
terms and conditions of this Agreement and the Plan, (i) $200,000 (the "Cash
Component") and (ii) 253,165 Shares of Restricted Stock (the "Restricted
Shares") pursuant to the Plan (the Cash Component and the Restricted Shares
comprise the "Award").

      2. Vesting; Forfeiture.

            2.1   Vesting Generally. The Award shall vest and become
                  nonforfeitable as follows: (A) $100,000 and 126,582 Restricted
                  Shares shall vest on December 31, 2005, and (B) $100,000 and
                  126,583 Restricted Shares shall vest on June 30, 2007
                  (provided in each case that Awardee's Employment with the
                  Company, as defined herein, continues through such date).

            2.2   Definition of Employment. Awardee's "Employment" shall include
                  any and all periods during which such individual is an
                  employee of or consultant to the Company or a subsidiary.
                  Awardee shall be deemed to have terminated Employment when he
                  completely ceases to be employed by or a consultant to the
                  Company and all of its subsidiary corporations. The Company
                  may in its discretion determine (a) whether any leave of
                  absence constitutes a termination of Employment within the
                  meaning of this Agreement, and (b) the impact, if any, of any
                  such leave of absence on the Award.

<PAGE>

            2.3   Vesting in Certain Circumstances. Notwithstanding the
                  provisions of Section 2.1, the Award shall vest as set forth
                  below in the following circumstances:

                  2.3.1 Termination of Employment by Company within one year
                        following Change in Control (as defined in the
                        Employment Agreement between Awardee and the Company
                        dated April 2, 2001 (the "Employment Agreement")),
                        subject to Section 2.3.4: immediate vesting of the Award
                        and nonforfeitability upon the Company's giving of
                        notice of termination;

                  2.3.2 Death or Disability (as such terms are defined in the
                        Employment Agreement): Pro rata monthly vesting of first
                        50% of Award from Grant Date if Death or Disability
                        occurs before December 31, 2005; and vesting of entire
                        remaining 50% of Award if Death or Disability occurs
                        after December 31, 2005, through June 30, 2007.

                  2.3.3 Termination of Employment by the Company without Cause,
                        Non-renewal by the Company or termination by the Awardee
                        for Good Reason (as defined in the Employment
                        Agreement): immediate vesting of the Award and
                        nonforfeitability upon the Company's giving notice of
                        termination or of non-renewal or upon Awardee's giving
                        notice of termination for Good Reason;

                  2.3.4 Termination of Employment by the Company for Cause (as
                        defined in the Employment Agreement) or by Awardee
                        without Good Reason: Immediate cancellation and
                        forfeiture of the Award; provided, however, that if
                        Awardee terminates his Employment without Good Reason
                        after December 31, 2005, the number of Restricted Shares
                        and amount of cash previously vested shall remain
                        vested.

      3. Payment of Cash Component. Within five (5) business days following each
of the dates specified in Section 2.1 or any earlier date as provided in Section
2.3 (the "Payment Date"), the Company shall pay to Awardee (or Awardee's
beneficiary or estate, if no beneficiary is designated or in the event any
chosen beneficiary predeceases Awardee, in the event of the death of Awardee)
cash in the amount of the vested portion of the Cash Component. Notwithstanding
the foregoing, the Payment Date for the then-vested portion of the Award may be
accelerated at Awardee's option (or by his estate or representative, if
applicable) in the event of termination of Employment pursuant to Sections
2.3.1, 2.3.2 or 2.3.3.

      4. Vesting of Restricted Shares. The Company shall hold in escrow for
Awardee the stock certificates for the Restricted Shares. The certificates shall
contain a legend (the "Vesting Legend") as follows:

<PAGE>

The securities represented by this certificate are subject to a retention award
agreement between the Company and the registered owner of this certificate (or
his predecessor in interest). Copies of said agreement may be obtained upon
written request to the secretary of the Company by the registered owner hereof.
These securities may be cancelled and retired by the Company in the
circumstances set forth in the restricted stock agreement, in which event this
Certificate shall be null and void.

      The Company will cause the Vesting Legend to be removed upon request by
Awardee given at any time after any of the Restricted Shares have vested and
shall deliver the certificate for such vested shares to Awardee (without the
legend referred to above), but only if the Awardee has satisfied the withholding
tax obligations set forth elsewhere in this Agreement.

      Should Awardee forfeit any Restricted Shares, the certificate(s) therefor
shall upon such forfeiture no longer represent shares of common stock and will
be cancelled on the records of the Company.

      To the extent that the Restricted Shares have not vested, they are not
transferable by the Awardee, whether by sale, assignment, exchange, pledge, or
hypothecation, or by operation of law or otherwise except (a) pursuant to a
qualified domestic relations order as defined for purposes of the Employee
Retirement Income Security Act of 1974, as amended, or (b) by gift to a member
of the "Family" (as defined below) of the Awardee, to or for the benefit of one
or more organizations qualifying under Code sec. 501(c) (3) and 170(c) (2) (a
"Charitable Organization") or to a trust for the exclusive benefit of the
Awardee, one or more members of the Awardee's Family, one or more Charitable
Organizations, or any combination of the foregoing, provided that any such
transferee shall enter into a written agreement to be bound by the terms of this
Agreement. For this purpose, "Family" shall mean the ancestors, spouse,
siblings, spouses of siblings, lineal descendants and spouses of lineal
descendants of the Awardee.

      The Company shall not be required to transfer on its books any of the
Restricted Shares that shall have been sold or transferred in violation of any
of the provisions set forth in this Agreement, or to treat any transferee to
whom such shares have been so sold or transferred as a stockholder of the
Company.

      Except as otherwise provided herein, the Awardee shall until forfeiture be
entitled to all rights of a stockholder of the Company, including the right to
vote the Restricted Shares and to receive dividends and/or other distributions
declared on such shares.

      5. Transferability of Shares of Stock. The Company has filed a
Registration Statement on Form S-8 (or otherwise) with the Securities and
Exchange Commission relating to the Restricted Shares that vest and are to be
delivered hereunder and will comply with all applicable state securities laws
prior to the distribution of Restricted Shares hereunder and to do everything
else necessary to ensure that Restricted Shares delivered to Awardee upon or
following the vesting will not be treated as "restricted securities" within the
meaning of Rule 144 promulgated under the Securities Act.

      6. Conformity with Plan. Except as specifically set forth herein, this
Agreement is intended to conform in all respects with, and is subject to all
applicable provisions of, the Plan, which is incorporated herein by reference.
Any inconsistencies between this Agreement and the Plan with respect to any
mandatory provisions of the Plan shall be resolved in accordance with the terms
of the Plan. By executing and returning the enclosed copy of this Agreement,
Awardee acknowledges its receipt of the Plan and its agreement to be bound by
all the terms of the Plan. All definitions stated in the Plan apply to this
letter.

<PAGE>

      7. Withholding Taxes. Awardee shall pay to the Company, or make provision
satisfactory to the administrator of the Plan for payment of, any taxes required
to be withheld in respect of the vesting or distribution of the Cash Component
and/or shares of stock hereunder no later than the date of the event creating
the tax liability. The Company may, to the extent permitted by law, deduct any
such tax obligations from any payment of any kind otherwise due to the Awardee,
including any part of the Cash Component or shares of stock to be delivered
hereunder. In the event that payment to the Company of such tax obligations is
made in shares of stock, such shares shall be valued at their fair market value
on the applicable date for such purposes.

      8. Awardee Advised To Obtain Personal Counsel and Tax Representation.
IMPORTANT: The Company and its employees do not provide any guidance or advice
to individuals who may be granted an Award under the Plan regarding the federal,
state, local or foreign income tax consequences or employment tax consequences
of participating in the Plan. Awardee is responsible for determining his own
personal tax consequences of participating in the Plan. Accordingly, the Company
has advised Awardee that he may wish to retain the services of a professional
tax advisor in connection with the Award.

      9. Beneficiary Designation. Awardee may designate one or more
beneficiaries, from time to time, to whom any benefit under this Agreement is to
be paid in case of Awardee's death. Each designation must be in writing, signed
by Awardee and delivered to the Company. Each new designation will revoke all
prior designations.

      10. Adjustments for Changes in Capital Structure. As outstanding shares of
Common Stock of the Company, the Restricted Shares will be adjusted in the event
of any change in capital structure or business of the Company by reason of any
stock dividend or extraordinary dividend, stock split or reverse stock split,
recapitalization, reorganization, merger, consolidation, split-up, combination
or exchange of shares of stock, non-cash distributions with respect to its
outstanding stock, reclassification of the Company's capital stock, any sale or
transfer of all or part of the Company's assets or business, or any similar
change affecting the Company's capital structure or business or the capital
structure of any business of any subsidiary.

      11. Miscellaneous.

            11.1  This Agreement may not be changed or terminated except by
                  written agreement signed by the Company and Awardee. It shall
                  be binding on the parties and on their personal
                  representatives and permitted assigns.

            11.2  This Agreement sets forth all agreements of the parties. It
                  supersedes and cancels all prior agreements with respect to
                  the subject matter hereof. It shall be enforceable by decrees
                  of specific performance (without posting bond or other
                  security) as well as by other available remedies.

            11.3  This Agreement shall be governed by, and construed in
                  accordance with, the laws of the State of New Jersey. Any
                  litigation instituted by any party to this Agreement
                  pertaining to this Agreement must be filed before a court of
                  competent jurisdiction in the State of New Jersey and both
                  parties hereby consent irrevocably to the jurisdiction of such
                  courts over them.

<PAGE>

            11.4  The Company shall pay the reasonable legal fees, costs and
                  expenses incurred by Awardee in connection with any action
                  arising under this Agreement, provided that any dispute or
                  controversy between the parties regarding this Agreement is
                  resolved in any manner in favor of Awardee. Upon any initial
                  determination in favor of Awardee, the Company shall advance
                  to Awardee an amount equal to Awardee's previously incurred
                  legal fees and a reasonable estimate of any legal fees, costs
                  and expenses that may be incurred by Awardee in connection
                  with the final resolution of such matter. In addition, the
                  Company shall pay or reimburse Awardee for attorneys' fees
                  incurred by Awardee in connection with the negotiation and
                  preparation of this Agreement. This paragraph shall not affect
                  Awardee's common-law or statutory indemnification rights, or
                  any agreements or other arrangements between the parties
                  relating to indemnification.

            11.5  All notices, requests, service of process, consents, and other
                  communications under this Agreement shall be in writing.
                  Notice shall be deemed given and effective (a) three (3)
                  business days after the deposit in the U.S. mail of a writing
                  addressed as provided below and sent first class mail,
                  certified, return receipt requested, (b) when received by the
                  addressee, if sent by a nationally recognized air courier for
                  next day delivery service (receipt requested), or (c) upon
                  personal delivery (with written confirmation of receipt).
                  Either party may change the address for notice by notifying
                  the other party of such change in accordance with this
                  paragraph. Notices shall be addressed (i) to Awardee at the
                  last address he or she has filed in writing with the Company
                  and (ii) to the Company at its principal offices. Either party
                  hereto may designate a different address by providing written
                  notice of such new address to the other party hereto as
                  provided above.

            11.6  This Agreement may be signed in one or more counterparts, each
                  of which shall be an original, with the same effect as if the
                  signature thereto and hereto were upon the same instrument.

<PAGE>

Dated: As of September 6, 2004

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                          PHARMOS CORPORATION

                                          By: /s/ James A. Meer
                                              ----------------------------------
                                              Name:  James A. Meer
                                              Title:  Chief Financial Officer

                                          AWARDEE:

                                          By: /s/ Gad Riesenfeld
                                              ----------------------------------
                                              Name: Gad Riesenfeld

      This Agreement has been approved and authorized by the Compensation/Stock
Option Committee of the Board of Directors of Pharmos Corporation by Unanimous
Written Consent dated as of September 6, 2004.

/s/ Mony Ben Dor
-----------------------------
Mony Ben Dor, Chairman of the Compensation/Stock Option Committee================================================================================

                       BECOMING ART INC. LICENSE AGREEMENT

Memorandum of Agreement made and entered into this _____ day of ________, 2003,
by and between;

                  BECOMING ART INC. a Nevada  Corporation  in the  business of
                  reselling original art and original art images directly
                  licensed  from artists  residing in United  States and Canada,
                  hereinafter referred to as the "BECOMING ART/licensee",

And
                  ____________________________________,  having an address at
                  _____________________________________ (hereinafter referred to
                  as "Artist/licensor") and

Whereas,  the  Artist/Licensor  is the  owner of the  entire  right,  title  and
interest  in and to  certain  original  art and  images  listed  in  Schedule  A
(hereinafter referred to as the "Licensed Images") for use on canvass transfers,
paper prints,  and any other printed  material that  wholesale and retail buyers
may request from time to time (hereinafter referred to as the "Images"); and

Whereas,  BECOMING  ART/Licensee is desirous of securing and  Artist/Licensor is
willing  to grant,  upon the terms  and  conditions  hereinafter  set  forth,  a
non-exclusive license of the are original artwork and/or Images for resale; Now,
therefore,  in  consideration  of a Fee  Schedule as described in Schedule A and
other  good  and  valuable  considerations,  the  receipt  of  which  is  hereby
acknowledged,  and in consideration of the covenants and obligations hereinafter
set forth to be well and truly  performed,  the parties  hereto  hereby agree as
follows:

I.  Artist/Licensor  hereby  grants to BECOMING  ART/Licensee  a  non-exclusive,
non-transferable  right and license to print, use and resell the Licensed Images
and in connection  with  promotional  material for the period of ten (10) years.
Thereafter,  this agreement  will continue,  however,  the  artist/Licensor  may
terminate  this  agreement  after the tenth year for  convenience  upon 6 months
written notice.

II. BECOMING  ART/Licensee agrees to pay to Artist/Licensor,  as a license,  the
sums set forth on  Schedule  A attached  hereto  and made a part  hereof on each
Image resold during the term of this agreement and license.

III. BECOMING  ART/Licensee  agrees that it will render to Artist/Licensor  with
each such fee payment a written  statement  setting forth the total net receipts
from  its  fee-bearing  sales  used by it  during  the  period  covered  by such
statement,  and BECOMING  ART/Licensee agrees to provide a suitable statement in
sufficient detail to enable the fees payable hereunder to be determined.

<page>

IV. In the event that  BECOMING  ART/Licensee  or  Artist/Licensor  defaults  or
breaches any of the  provisions of this license  agreement,  the  non-defaulting
party may cancel the license here granted upon ten (10) days' written  notice to
the other party; provided, however, that if the defaulting party, within the ten
(10) day period  referred  to,  cures the said  default or breach,  the  license
herein  granted shall  continue in full force and effect until the expiration of
this  Agreement  or  until  the  expiration  of any  re-issue,  continuation  or
extension thereof, in the event of the termination of the license herein granted
by  Artist/Licensor  to BECOMING  ART/Licensee shall not be relieved of the duty
and  obligation to pay in full fees accrued and due and payable at the effective
date of such termination.

V.  Artist/Licensor  shall  indemnify  and hold  harmless  and  defend  BECOMING
ART/Licensee and BECOMING ART/Licensee's officers, agents and employees from and
against  any and all  claims,  demands,  causes of action,  suits,  proceedings,
liabilities,  damages,  losses,  cost and expenses,  including  attorney's fees,
caused by,  incurred or resulting from any claimed  infringement by the Licensed
Images on the rights of any third  party.  Artist/Licensor  agrees to  cooperate
with BECOMING ART/Licensee in the event the rights granted BECOMING ART/Licensee
herein are infringed upon by a third party.

VI. In the event of any adjudication of bankruptcy, appointment of a Receiver by
a court of competent  jurisdiction,  assignment  for the benefit of creditors or
levy of execution directly involving BECOMING  ART/Licensee this agreement shall
terminate.

VII.  Any notice  required  or given  pursuant to this  Agreement  shall be sent
certified or registered mail,  postage prepaid,  return receipt requested to the
address set forth above.

VIII.  This  agreement and the license  herein granted shall inure to benefit of
each of the parties  hereto and the heirs,  successors  and assigns  each of the
parties. However, this agreement may not be assigned by either party in whole or
in part. This Agreement  shall be interpreted  according to the laws of the Sate
of Nevada, wherein jurisdiction shall be found in the event of any legal actions
arising  hereunder,  This  Agreement  constitutes  the entire  agreement  of the
parties with  respect to the subject  matter  hereof.  IN WITNESS  WHEREOF,  the
parties hereto have caused this instrument to be duly executed as of the day and
year first above written.

--------------------------------------      ---------
Artist/Licensor                             Date

-------------------------------------       ---------
BECOMING ART/Licensee                       Date

<page>

                                   SCHEDULE A

              LIST OF IMAGES SUPPLIED TO BECOMING ART BY THE ARTIST
                          UNDER THIS LICENSE AGREEMENT:

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      IMAGE #                 Title                        Artist's     Date
                                                           Initials     Created
--------------------------------------------------------------------------------

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                 Note: see actual images attached to Schedule A

                                  FEE SCHEDULE:
                                  -------------

BECOMING ART agrees to pay the Artist, 10% of the gross profit realized from the
resale of any art product bearing the Licensed Image. Gross profit as defined by
BECOMING ART will be calculated  after all costs  associated with that sale have
been  deducted,  including  but  not  limited  to;  travel,  setup,  retouching,
printing, packaging, shipping, and returns.

BECOMING ART agrees to pay the Artist  within 30 days of receipt of payment from
the client.

                                                                     ----------
                                                                     Artist
Initials

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