Document:

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EXHIBIT 10.46

                            TRANS WORLD GAMING CORP.
                             1998 STOCK OPTION PLAN

                                    ARTICLE I
                            ESTABLISHMENT OF THE PLAN

         Trans World Gaming Corp. (the "Company") hereby establishes this 1998
Stock Option Plan (the "Plan") upon the terms and conditions hereinafter stated.

                                   ARTICLE II
                               PURPOSE OF THE PLAN

         The purpose of this Plan is to improve the growth and profitability of
the Company by providing Employees with a proprietary interest in the Company as
an incentive to contribute to the success of the Company, and rewarding those
Employees for outstanding performance and the attainment of targeted goals. All
Incentive Stock Options issued under this Plan are intended to comply with the
requirements of Section 422 of the Code, and the regulations thereunder, and all
provisions hereunder shall be read, interpreted and applied with that purpose in
mind.

                                   ARTICLE III
                                   DEFINITIONS

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

         3.02 "Code" means the Internal Revenue Code of 1986, as amended.

         3.03 "Committee" means a committee of two or more directors appointed
by the Board pursuant to Article IV hereof, each of whom shall be a
"non-employee director" as defined in Rule 16b-3(b)(3)(i) of the Exchange Act or
any successor thereto.

         3.04 "Common Stock" means shares of the common stock, $.001 par value
per share, of the Company.

         3.05 "Disability" means any physical or mental impairment which
qualifies an Employee for disability benefits under the applicable long-term
disability plan maintained by the Company or, if no such plan applies, which
would qualify such Employee for disability benefits under the Federal Social
Security System.

         3.06 "Effective Date" means the date upon which the Board approves this
Plan.

         3.07 "Employee" means any person who is employed by the Company.

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

         3.09 "Fair Market Value" shall be equal to the fair market value per
share of the Company's Common Stock on the date an Option is granted. For
purposes hereof, the Fair Market Value of a share of Common Stock shall be the
mean between the high bid and low asked prices that day on the principal market
then in use, or if no such quotations are available, the fair market value on
the date in question of a share as determined by a majority of the Board in good
faith.

         3.10 "Incentive Stock Option" means any Option granted under this Plan
which the Board intends (at the time it is granted) to be an incentive stock
option within the meaning of Section 422 of the Code or any successor thereto.

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         3.11 "Non-Qualified Stock Option" means any Option granted under this
Plan which is not an Incentive Stock Option.

         3.12 "Officer" means an Employee whose position in the Company is that
of a corporate officer, as determined by the Board.

         3.13 "Option" means a right granted under this Plan to purchase Common
Stock.

         3.14 "Optionee" means an Employee or former Employee to whom an Option
is granted under the Plan.

         3.15 "Retirement" means a termination of employment which constitutes a
"retirement" under any applicable qualified pension benefit plan maintained by
the Company or as otherwise determined by the Committee.

         3.16 "Stock Option Agreement" means the written agreement pursuant to
Section 8.01 hereof that sets forth the terms, conditions, restrictions and
privileges for an Incentive Stock Option.

                                   ARTICLE IV
                           ADMINISTRATION OF THE PLAN

         4.01 DUTIES OF THE COMMITTEE. The Plan shall be administered and
interpreted by the Committee, as appointed from time to time by the Board
pursuant to Section 4.02. The Committee shall have the authority in its absolute
discretion to adopt, amend and rescind such rules, regulations and procedures
as, in its opinion, may be advisable in the administration of the Plan,
including, without limitation, rules, regulations and procedures which (i) deal
with satisfaction of an Optionee's tax withholding obligation pursuant to
Section 12.02 hereof, (ii) include arrangements to facilitate the Optionee's
ability to borrow funds for payment of the exercise or purchase price of an
Option, if applicable, from securities brokers and dealers, and (iii) include
arrangements which provide for the payment of some or all of such exercise or
purchase price by delivery of previously owned shares of Common Stock or other
property and/or by withholding some of the shares of Common Stock which are
being acquired. The interpretation and construction by the Committee of any
provisions of the Plan, any rule, regulation or procedure adopted by it pursuant
thereto or of any Option shall be final and binding.

         4.02 APPOINTMENT AND OPERATION OF THE COMMITTEE. The members of the
Committee shall be appointed by, and will serve at the pleasure of, the Board.
The Board from time to time may remove members from, or add members to, the
Committee, provided the Committee shall continue to consist of two or more
members of the Board, each of whom shall be a "non-employee director" as defined
in Rule 16b-3(b)(3)(i) of the Exchange Act or any successor thereto. The
Committee shall act by vote or written consent of a majority of its members.
Subject to the express provisions and limitations of the Plan, the Committee may
adopt such rules, regulations and procedures as it deems appropriate for the
conduct of its affairs. It may appoint one of its members to be chairman and any
person, whether or not a member, to be its secretary or agent. The Committee
shall report its actions and decisions to the Board at the next regularly
scheduled meeting of the Board following each meeting of the Committee.

         4.03 REVOCATION FOR MISCONDUCT. The Committee may by resolution
immediately revoke, rescind and terminate any Option, or portion thereof, to the
extent not yet vested, previously granted or awarded under this Plan to an
Employee who is discharged from the employ of the Company for cause, which, for
purposes hereof, shall mean termination because of the Employee's personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, or willful
violation of any law, rule, or regulation (other than traffic violations or
similar offenses).

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         4.04 LIMITATION ON LIABILITY. No member of the Committee shall be
liable for any action or determination made in good faith with respect to the
Plan, any rule, regulation or procedure adopted by it pursuant thereto or any
Options granted under it. If a member of the Committee is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative, arbitrative or
investigative, by reason of anything done or not done by him in such capacity
under or with respect to the Plan, the Company shall indemnify him to the extent
permitted by the Company's Articles of Incorporation and Bylaws and by the
Nevada General Corporation Law.

         4.05 COMPLIANCE WITH LAW AND REGULATIONS. All Options granted hereunder
shall be subject to all applicable federal and state laws, rules and regulations
and to such approvals by any government or regulatory agency as may be required.
The Company shall not be required to issue or deliver any certificates for
shares of Common Stock prior to the completion of any registration or
qualification of or obtaining of consents or approvals with respect to such
shares under any federal or state law or any rule or regulation of any
government body, which the Company shall, in its sole discretion, determine to
be necessary or advisable. Moreover, no Option may be exercised if such exercise
would be contrary to applicable laws and regulations.

         4.06 RESTRICTIONS ON TRANSFER. The Company may place a legend upon any
certificate representing shares acquired pursuant to an Option granted hereunder
noting that the transfer of such shares may be restricted by applicable laws and
regulations.

                                    ARTICLE V
                                   ELIGIBILITY

         Options may be granted to such Employees of the Company as may be
designated from time to time by the Committee, pursuant to guidelines, if any,
which may be adopted by the Committee from time to time.

                                   ARTICLE VI
                        COMMON STOCK COVERED BY THE PLAN

         6.01 OPTION SHARES. The aggregate number of shares of Common Stock
which may be issued pursuant to this Plan, subject to adjustment as provided in
Article IX, shall be 2,000,000 shares of Common Stock. None of such shares shall
be the subject of more than one Option at any time, but if an Option as to any
shares is surrendered before exercise, or expires or terminates for any reason
without having been exercised in full, or for any other reason ceases to be
exercisable, the number of shares covered thereby shall again become available
for grant under the Plan as if no Options had been previously granted with
respect to such shares.

         6.02 SOURCE OF SHARES. The shares of Common Stock issued under the Plan
may be authorized but unissued shares, treasury shares or shares purchased by
the Company on the open market or from private sources for use under the Plan.

                                   ARTICLE VII
                                DETERMINATION OF
                         OPTIONS, NUMBER OF SHARES, ETC.

         The Committee shall, in its discretion, determine from time to time
which Employees will be granted Options under the Plan, the number of shares of
Common Stock subject to each Option, whether each Option will be an Incentive
Stock Option or a Non-Qualified Stock Option and the exercise price of an
Option. In making all such determinations there shall be taken into account the
duties, responsibilities and performance of each respective Employee, his
present and potential contributions to the growth and success of the Company,
his salary and such other factors as the Committee shall deem relevant to
accomplishing the purposes of the Plan.

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                                  ARTICLE VIII
                                     OPTIONS

         Each Option granted hereunder shall be on the following terms and
conditions:

         8.01 STOCK OPTION AGREEMENT. The proper Officers or a member of the
Committee on behalf of the Company and each Optionee shall execute a Stock
Option Agreement which shall set forth the total number of shares of Common
Stock to which it pertains, the exercise price, whether it is a Non-Qualified
Stock Option or an Incentive Stock Option and such other terms, conditions,
restrictions and privileges as the Committee in each instance shall deem
appropriate, provided they are not inconsistent with the terms, conditions and
provisions of this Plan. Each Optionee shall receive a copy of his executed
Stock Option Agreement.

         8.02 OPTION EXERCISE PRICE.

                 (a) INCENTIVE STOCK OPTIONS. The per share price at which the
subject Common Stock may be purchased upon exercise of an Incentive Stock Option
shall be no less than one hundred percent (100%) of the Fair Market Value of a
share of Common Stock at the time such Incentive Stock Option is granted, except
as provided in Section 8.09(b).

                 (b) NON-QUALIFIED STOCK OPTIONS. The per share price at which
the Common Stock may be purchased upon exercise of a Non-Qualified Stock Option
shall be no less than eighty-five percent (85%) of the Fair Market Value of a
share of Common Stock at the time such Non-Qualified Option is granted.

         8.03  VESTING AND EXERCISE OF OPTIONS

                 (a) GENERAL RULES. Incentive Stock Options and Non-Qualified
Stock Options granted to Employees shall become vested and exercisable at the
rate, to the extent and subject to such limitations as may be specified by the
Committee. Notwithstanding the foregoing, no vesting shall occur on or after an
Employee's employment with the Company is terminated for any reason other than
his death, Disability or Retirement. In determining the number of shares of
Common Stock with respect to which Options are vested and/or exercisable,
fractional shares will be rounded up to the nearest whole number if the fraction
is 0.5 or higher, and down if it is less.

                 (b) VESTING UPON TERMINATION OF EMPLOYMENT, DEATH, DISABILITY
OR RETIREMENT. Unless the Committee shall specifically state otherwise at the
time an Option is granted, only those Options granted to Employees under this
Plan which are vested and exercisable on the date an Optionee terminates his
employment with the Company because of his termination of employment under
certain circumstances as set forth in the Optionee's Stock Option Agreement, or
because of his death, Disability or Retirement shall be vested and exercisable
by the Optionee thereafter as set forth in Section 8.04.

                 (c) ACCELERATED VESTING FOR CHANGES IN CONTROL. Notwithstanding
the general rule described in Section 8.03(a), all outstanding Options shall
become immediately vested and exercisable in the event there is a change in
control of the Company. A "change in control of the Company" for this purpose
shall mean a change in control of a nature that would be required to be reported
in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Exchange Act, or any successor thereto, whether or not the Company in fact is
required to comply with Regulation 14A thereunder.

         8.04  DURATION OF OPTIONS.

                 (a) GENERAL RULE. Except as provided in Sections 8.04(b) and
8.09, each Option granted to Employees shall be exercisable at any time on or
after it vests and becomes exercisable until the earlier of (i) ten (10) years
after its date of grant or (ii) three (3) months after the date on which the
Optionee ceases to be employed by the Company, unless the Committee in its
discretion decides at the time of grant or thereafter to extend such period of
exercise upon termination of employment from three (3) months to a period not
exceeding five (5) years.

<PAGE>

                 (b) EXCEPTION FOR TERMINATION DUE TO DEATH, DISABILITY OR
RETIREMENT. If an Employee dies while in the employ of the Company or terminates
employment with the Company as a result of Disability or Retirement without
having fully exercised his Options, the Optionee or his legal representative or
guardian, or the executors, administrators, legatees or distributees of his
estate shall have the right, during the twelve-month period following the
earlier of his death, Disability or Retirement, to exercise such Options to the
extent vested on the date of such death, Disability or Retirement. In no event,
however, shall any Option be exercisable within six (6) months after the date of
grant or more than ten (10) years from the date it was granted.

         8.05 NONASSIGNABILITY. Options shall not be transferable by an Optionee
except by will or the laws of descent or distribution, and during an Optionee's
lifetime shall be exercisable only by such Optionee or the Optionee's guardian
or legal representative. Notwithstanding the foregoing, or any other provision
of this Plan, an Optionee who holds Non-Qualified Stock Options may transfer
such Options to his or her spouse, lineal ascendants, lineal descendants, or to
a duly established trust for the benefit of one or more of these individuals.
Options so transferred may thereafter be transferred only to the Optionee who
originally received the grant or to an individual or trust to whom the Optionee
would have initially transferred the Option pursuant to this Section 8.05.
Options which are transferred pursuant to this Section 8.05 shall be exercisable
by the transferee according to the same terms and conditions as applied to the
Optionee.

         8.06 MANNER OF EXERCISE. Options may be exercised in part or in whole
and at one time or from time to time. The procedures for exercise shall be set
forth in the written Stock Option Agreement provided for in Section 8.01 above.

         8.07 PAYMENT FOR SHARES. Payment in full of the purchase price for
shares of Common Stock purchased pursuant to the exercise of any Option shall be
made to the Company upon exercise of the Option. All shares sold under the Plan
shall be fully paid and nonassessable. Payment for shares may be made by the
Optionee in cash or, at the discretion of the Committee, by delivering shares of
Common Stock (including shares acquired pursuant to the exercise of an Option)
or other property equal in Fair Market Value to the purchase price of the shares
to be acquired pursuant to the Option, by withholding some of the shares of
Common Stock which are being purchased upon exercise of an Option, or any
combination of the foregoing. Notwithstanding the foregoing payment may also be
made by delivering a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company the amount of sale
or loan proceeds to pay the exercise price.

         8.08 VOTING AND DIVIDEND RIGHTS. No Optionee shall have any voting or
dividend rights or other rights of a shareholder in respect of any shares of
Common Stock covered by an Option prior to the time that his name is recorded on
the Company's shareholder ledger as the holder of record of such shares acquired
pursuant to an exercise of an Option.

         8.09 ADDITIONAL TERMS APPLICABLE TO INCENTIVE STOCK OPTIONS. All
Options issued under the Plan as Incentive Stock Options will be subject, in
addition to the terms detailed in Sections 8.01 to 8.08 above, to those
contained in this Section 8.09.

                 (a) $100,000 LIMITATION. Notwithstanding any contrary
provisions contained elsewhere in this Plan and as long as required by Section
422 of the Code, the aggregate Fair Market Value, determined as of the time an
Incentive Stock Option is granted, of the Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by the Optionee
during any calendar year, under this Plan and stock options that satisfy the
requirements of Section 422 of the Code under any other stock option plan or
plans maintained by the Company, shall not exceed $100,000.

<PAGE>

                 (b) LIMITATION ON TEN PERCENT SHAREHOLDERS. The price at which
shares of Common Stock may be purchased upon exercise of an Incentive Stock
Option granted to an individual who, at the time such Incentive Stock Option is
granted, owns, directly or indirectly, more than ten percent (10%) of the total
combined voting power of all classes of stock issued to shareholders of the
Company, shall be no less than one hundred and ten percent (110%) of the Fair
Market Value of a share of the Common Stock of the Company at the time of grant,
and such Incentive Stock Option shall by its terms not be exercisable after the
earlier of the date determined under Section 8.03 or the expiration of five (5)
years from the date such Incentive Stock Option is granted.

                 (c) NOTICE OF DISPOSITION; WITHHOLDING; ESCROW. An Optionee
shall immediately notify the Company in writing of any sale, transfer,
assignment or other disposition (or action constituting a disqualifying
disposition within the meaning of Section 421 of the Code) of any shares of
Common Stock acquired through exercise of an Incentive Stock Option, within two
(2) years after the grant of such Incentive Stock Option or within one (1) year
after the acquisition of such shares, setting forth the date and manner of
disposition, the number of shares disposed of and the price at which such shares
were disposed. The Company shall be entitled to withhold from any compensation
or other payments then or thereafter due to the Optionee such amounts as may be
necessary to satisfy any withholding requirements of federal or state law or
regulation and, further, to collect from the Optionee any additional amounts
which may be required for such purpose. The Committee may, in its discretion,
require shares of Common Stock acquired by an Optionee upon exercise of an
Incentive Stock Option to be held in an escrow arrangement for the purpose of
enabling compliance with the provisions of this Section 8.09(c).

                                   ARTICLE IX
                         ADJUSTMENTS FOR CAPITAL CHANGES

         The aggregate number of shares of Common Stock available for issuance
under this Plan, the number of shares to which any Option relates and the
exercise price per share of Common Stock under any Option shall be
proportionately adjusted for any increase or decrease in the total number of
outstanding shares of Common Stock issued subsequent to the effective date of
this Plan resulting from a split, subdivision or consolidation of shares or any
other capital adjustment, the payment of a stock dividend, or other increase or
decrease in such shares effected without receipt or payment of consideration by
the Company. If, upon a merger, consolidation, reorganization, liquidation,
recapitalization or the like of the Company, the shares of the Company's Common
Stock shall be exchanged for other securities of the Company or of another
corporation, each recipient of an Option shall be entitled, subject to the
conditions herein stated, to purchase or acquire such number of shares of Common
Stock or amount of other securities of the Company or such other corporation as
were exchangeable for the number of shares of Common Stock of the Company which
such optionees would have been entitled to purchase or acquire except for such
action, and appropriate adjustments shall be made to the per share exercise
price of outstanding Options.

                                    ARTICLE X
                      AMENDMENT AND TERMINATION OF THE PLAN

         The Board may, by resolution, at any time terminate or amend the Plan
with respect to any shares of Common Stock as to which Options have not been
granted, subject to any required shareholder approval or any shareholder
approval which the Board may deem to be advisable for any reason, such as for
the purpose of obtaining or retaining any statutory or regulatory benefits under
tax, securities or other laws or satisfying any applicable stock exchange
listing requirements. The Board may not, without the consent of the holder of an
Option, alter or impair any Option previously granted or awarded under this Plan
as specifically authorized herein.

<PAGE>

                                   ARTICLE XI
                                EMPLOYMENT RIGHTS

         Neither the Plan nor the grant of any Options hereunder nor any action
taken by the Committee or the Board in connection with the Plan shall create any
right on the part of any Employee of the Company to continue in such capacity.

                                   ARTICLE XII
                                   WITHHOLDING

         12.01 TAX WITHHOLDING. The Company may withhold from any cash payment
made under this Plan sufficient amounts to cover any applicable withholding and
employment taxes, and if the amount of such cash payment is insufficient, the
Company may require the Optionee to pay to the Company the amount required to be
withheld as a condition to delivering the shares acquired pursuant to an Option.
The Company also may withhold or collect amounts with respect to a disqualifying
disposition of shares of Common Stock acquired pursuant to exercise of an
Incentive Stock Option, as provided in Section 8.09(c).

         12.02 METHODS OF TAX WITHHOLDING. The Committee is authorized to adopt
rules, regulations or procedures which provide for the satisfaction of an
Optionee's tax withholding obligation by the retention of shares of Common Stock
to which the Employee would otherwise be entitled pursuant to an Option and/or
by the Optionee's delivery of previously owned shares of Common Stock or other
property.

                                  ARTICLE XIII
                        EFFECTIVE DATE OF THE PLAN; TERM

         13.01 EFFECTIVE DATE OF THE PLAN. This Plan shall become effective on
the Effective Date, and Options may be granted hereunder as of or after the
Effective Date and prior to the termination of the Plan, provided that no
Incentive Stock Option issued pursuant to this Plan shall qualify as such unless
this Plan is approved by the requisite vote of the holders of the outstanding
voting shares of the Company at a meeting of shareholders of the Company held
within twelve (12) months before or after the Effective Date.

         13.02 TERM OF PLAN. Unless sooner terminated, this Plan shall remain in
effect for a period of ten (10) years ending on the tenth anniversary of the
Effective Date. Termination of the Plan shall not affect any Options previously
granted and such Options shall remain valid and in effect until they have been
fully exercised or earned, are surrendered or by their terms expire or are
forfeited.

                                   ARTICLE XIV
                                  MISCELLANEOUS

         14.01 GOVERNING LAW. To the extent not governed by Federal law, this
Plan shall be construed under the laws of the State of Nevada.

         14.02 PRONOUNS. Wherever appropriate, the masculine pronoun shall
include the feminine pronoun, and the singular shall include the plural.<PAGE>

EXHIBIT 10.47

                            TRANS WORLD GAMING CORP.

                  1999 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

         The following constitute the provisions of the 1999 Non-Employee
Director Stock Option Plan of Trans World Gaming Corp.

1.       PURPOSE

         The purpose of the Plan is to provide an investment opportunity to the
Company's Non-employee Directors by granting them Options to purchase shares of
Common Stock as compensation for their service on the Board.

2.       DEFINITIONS

         As used in this Plan, the following words and phrases shall have the
meanings indicated:

         "BOARD" shall mean the Company's Board of Directors.

         "CODE" shall mean the Internal Revenue Code of 1986, as amended.

         "COMMITTEE" shall mean the Compensation Committee appointed by the
         Board, consisting of not less than two Non-Employee Directors.

         "COMMON STOCK" shall mean the shares of common stock, $.001 par value
         per share, of the Company.

         "COMPANY" shall mean Trans World Gaming Corp. and its Subsidiaries.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
         amended.

         "FAIR MARKET VALUE" shall mean the closing price of a share of the
         Common Stock as of a specified date as reported on the principal
         securities exchange on which such shares of Common Stock are traded on
         the day immediately preceding the date as of which the Fair Market
         Value is being determined, or on the next preceding date on which such
         shares of Common Stock are traded if no shares of Common Stock were
         traded on such immediately preceding day, or if the shares of Common
         Stock are not traded on a securities exchange, the Fair Market Value
         shall be deemed to be the average of the high bid and low asked prices
         of the shares of Common Stock in the over-the-counter market on the day
         immediately preceding the date as of which the Fair Market Value is
         being determined or on the next preceding date on which such high bid
         and low asked prices were recorded. If the shares of Common Stock are
         not publicly traded, the Fair Market Value shall be determined by the
         Committee or the Board. In no case shall the Fair Market Value be less
         then the par value of a share of Common Stock.

         "FORM S-8 REGISTRATION STATEMENT" shall mean a registration statement
         filed on Form S-8 with and declared effective by the Securities and
         Exchange Commission under the Securities Act covering the offer and
         sale of the Options and the underlying Common Stock.

         "NON-EMPLOYEE DIRECTOR" shall mean any member of the Company's Board
         who is a "Non-Employee Director" as such term is defined under Rule
         16b-3(b)(3)(i) promulgated under the Exchange Act.

         "OPTION" shall mean any option issued pursuant to this Plan.

<PAGE>

         "OPTIONEE" shall mean any person to whom an Option is granted under
         this Plan.

         "PARENT" shall mean any corporation (other than the Company) in an
         unbroken chain of corporations ending with the Company if, at the time
         of granting an Option or the sale of any Common Stock, each of the
         corporations other than the Company owns stock possessing fifty percent
         (50%) or more of the total combined voting power of all classes of
         stock in one of the other corporations in such chain.

         "PLAN" shall mean this 1999 Non-employee Director Stock Option Plan.

         "REORGANIZATION" shall mean any merger, reorganization, consolidation
         or sale of all or substantially all of the Company's assets.

         "REGISTERED" shall mean a Form S-8 Registration Statement shall be in
         effect covering the purchase of the Options or the underlying shares.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

         "STOCK OPTION AGREEMENT" shall mean the agreement evidencing the
         Options granted to Optionees pursuant to the Plan containing the terms
         and conditions specified in Section 7 below.

         "SUBSIDIARY" shall mean any corporation (other than the Company) in an
         unbroken chain of corporations beginning with the Company if, at the
         time of granting an Option, each of the corporations, other than the
         last corporation in the unbroken chain owns stock possessing fifty
         percent (50%) or more of the total combined voting power of all classes
         of stock in one of the other corporations in such chain.

3.       GENERAL ADMINISTRATION

         The Plan shall be administered by the Committee. The Committee shall
have the authority in its discretion to administer the Plan and to interpret the
Plan and to prescribe, amend and rescind rules and regulations relating to the
operation of the Plan and to make all other determinations deemed necessary or
advisable for the administration of the Plan; provided, however, that the
Committee may not alter, amend or modify the express provisions of the Plan. The
Board shall fill all vacancies, however caused, in the Committee. The Board may
from time to time appoint additional members to the Committee, and may at any
time remove one or more Committee members and substitute others. No member of
the Board or the Committee shall be liable for any action taken or determination
made in good faith with respect to the Plan or any action taken thereunder.

4.       TERM OF PLAN

         The Plan became effective upon its adoption by the Company's Board on
September 21, 1999, subject to stockholder approval, and shall continue in
effect for a term of ten (10) years unless sooner terminated under Section 10
hereof. Any Options outstanding under the Plan on such date shall continue to be
exercisable pursuant to their terms, except as provided by Section 7 hereof.

5.       ELIGIBILITY

         Options may be granted to any Non-employee Director of the Company as
compensation for service on the Board.

6.       STOCK SUBJECT TO THE PLAN

         An aggregate of 250,000 shares of Common Stock shall be reserved for
issuance pursuant to Options issued pursuant to the Plan. If any outstanding
Option under the Plan for any reason expires or is

<PAGE>

terminated without having been exercised in full, the shares of Common Stock
allocable to the unexercised portion of such Option shall (unless the Plan shall
have been terminated) become available for subsequent issuance of Options under
the Plan.

7.       TERMS AND CONDITIONS OF OPTIONS

         All Options issued pursuant to the Plan shall be non-statutory options
not entitled to special tax treatment under Section 422 of the code and
evidenced by a Stock Option Agreement containing the terms and conditions
specified in this Section 7.

         GRANT OF OPTIONS. Each Non-Employee Director shall be granted an Option
         to purchase 2,000 shares of Common Stock on the first business day
         following the end of each fiscal quarter during which service on the
         Board is rendered commencing with the year 2000.

         OPTION EXERCISE PRICE. The exercise price of each Option (the "Option
         Exercise Price") shall equal the Fair Market Value of the Common Stock
         on the day immediately preceding the date of grant of each Option. The
         Option Exercise Price shall be subject to adjustment as provided in
         this Section 7.

         TERM AND EXERCISE OF OPTIONS. Options shall be exercisable in whole or
         in part at any time over the exercise period, but in no event shall
         such period exceed ten years from the date of the grant of each such
         Option. The exercise period shall be subject to earlier termination as
         provided in this Section 7. An Option may be exercised by giving prior
         written notice of such exercise to the Company and by paying the Option
         Exercise Price to the Company either by delivering on the date of
         exercise (i) a check in the amount of the Option Exercise Price, (ii)
         Common Stock having a Fair Market Value on the day immediately
         preceding the date of exercise equal to or less than the Option
         Exercise Price, or (iii) a combination thereof. If the Optionee tenders
         shares of Common Stock having a Fair Market Value which exceeds the
         Option Exercise Price, the Company shall return to the Optionee any and
         all whole shares of Common Stock which exceed the Option Exercise Price
         and the Company shall pay the Optionee any additional amount which
         exceeds the Option Exercise Price in cash in lieu of issuing the
         Optionee a fractional share for such amount.

         VESTING AND RESTRICTIONS ON TRANSFERABILITY. Options issued under the
         Plan shall vest immediately upon grant and shall not be transferable
         other than by will or by the laws of descent and distribution or
         pursuant to a qualified domestic relations order as defined by the Code
         or Title I of the Employee Retirement Income Security Act ("ERISA") or
         the rules thereunder.

         DEATH OR DISABILITY OF OPTIONEE. If an Optionee shall die or become
         disabled, all Options theretofore issued to such Optionee may, unless
         earlier terminated in accordance with their terms, be exercised at any
         time during the term of the Option by the personal representative of
         the Optionee or by the person who acquired the right to exercise such
         Option by bequest or inheritance or otherwise by reason of the death or
         disability of the Optionee.

         TERMINATION OF DUTIES FOR ANY OTHER REASON. In the event an Outside
         Director's membership on the Board ceases for any reason other than one
         described in Section 7(E) hereof, any Options then held by such Outside
         Director shall be terminated within twelve (12) months following his
         cessation of Board membership.

         SERVICES AS AN EMPLOYEE. If an Outside Director becomes an employee of
         the Company or any of its subsidiaries, the Outside Director shall be
         treated as continuing in service for purposes of this Outside Director
         Plan, but shall not be eligible to receive future grants while an
         employee. If the Outside Director's services as an employee terminate
         without his again becoming an Outside Director, the provisions of
         Section 7(F) shall apply as though such termination of employment were
         the termination of the Outside Director's membership on the Board.

<PAGE>

         RECLASSIFICATION; RECAPITALIZATION; AND REORGANIZATIONS.

         (1) DIVIDENDS AND STOCK SPLITS. If there is any change in the number of
         shares of Common Stock through the declaration of stock dividends,
         recapitalization resulting in stock splits, or combinations or
         exchanges of such shares, then the number of shares of Common Stock
         available for Options, the number of such shares covered by outstanding
         Options and the Option Exercise Price shall be proportionately adjusted
         to reflect any increase or decrease in the number of issued shares of
         Common Stock; provided, however, that any fractional shares resulting
         from such adjustment shall be eliminated.

         (2) SPIN-OFFS AND LIQUIDATIONS. In the event of the proposed
         dissolution or liquidation of the Company, or in the event of any
         corporate separation or division, including, but not limited to, a
         split-up, a split-off or spin-off, each Option granted under the Plan
         shall terminate as of a date to be fixed by the Board, provided,
         however, that no less than thirty (30) days' written notice of the date
         so fixed shall be given to each Optionee, who shall have the right
         during the period of thirty (30)days preceding such termination, to
         exercise the Options as to all or any part of the shares of Common
         Stock covered thereby.

          (3) REORGANIZATIONS. If, while unexercised Options remain outstanding
         under the Plan, the Company executes a definitive Reorganization
         agreement, the Committee may provide that each Option granted under the
         Plan shall (i) terminate as of a date to be fixed by the Board,
         provided, however, that no less than thirty (30) days' written notice
         of the date so fixed shall be given to each Optionee, who shall have
         the right, during the period of thirty (30) days preceding such
         termination, to exercise the Options as to all or any part of the
         shares of Common Stock covered thereby or (ii) remain outstanding and
         be adjusted so that on exercise the Optionee shall receive the
         securities, cash or property that would have been issued with respect
         to the shares of Common Stock had the Option been exercised immediately
         prior to the Reorganization. The Committee may also, in its discretion,
         permit the cancellation of outstanding Options in exchange for a cash
         payment to the Optionee equal to the difference between the exercise
         price of the Option and the value of the consideration that would have
         been paid had the Option been exercised immediately prior to the
         Reorganization.

         (4) EXEMPTIONS. This Section 7(H) shall not apply to a Reorganization
         in which the Company is the surviving corporation and shares of Common
         Stock are not converted into or exchanged for stock, securities of any
         other corporation, cash or any other thing of value. Notwithstanding
         the preceding sentence, in case of any Reorganization in which the
         Company is the continuing corporation and in which there is a
         reclassification or change (including a change to the right to receive
         cash or property) of the shares of Common Stock (other than a change in
         par value, or from par value to no par value, or as a result of a
         subdivision or combination, but including any changes in such shares
         into two or more classes series of shares), the Committee may provide
         that the holder of each Option then exercisable shall have the right to
         exercise such Option solely for the kind and amount of shares of stock
         and other securities (including those of any new direct or indirect
         Parent of the Company), property, cash or any combination thereof
         receivable by the holder of the number of shares of Common Stock for
         which such Option might have been exercised upon such Reorganization or
         reclassification. In the event of a change in the Common Stock as
         presently constituted, which is limited to a change of all of its
         authorized shares with par value into the same number of shares with a
         different par value or without par value, the shares resulting from any
         such change shall be deemed to be the Common Stock within the meaning
         of the Plan. Except as herein expressly provided, the Optionee shall
         have no rights by reason of any subdivision or consolidation of shares
         of stock of any class or the payment of any stock dividend or any other
         increase or decrease in the number of shares of stock of any class or
         by reason of any dissolution, liquidation, or Reorganization, and any
         assurance by the Company of shares of stock of any class, and no
         adjustment by reason thereof shall be made with respect to the number
         of shares of Common Stock subject to an Option or to the Option Price.
         The grant of an Option pursuant to the Plan shall not affect in any way
         the right or power of the Company to make

<PAGE>

         adjustments, reclassifications, Reorganizations or changes of its
         capital or business structure or to merge or to consolidate or to
         dissolve, liquidate or sell, or transfer all or any part of its
         business or assets.

8.       RIGHTS AS A SHAREHOLDER

         No Optionee shall have any rights as a shareholder with respect to any
shares until the stock certificate evidencing such shares has been issued
evidencing such shares. No adjustments shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions
or other rights for which the record date is prior to the date such stock
certificate is issued, except as provided in Section 7(H) hereof.

9.       GENERAL RESTRICTIONS

         INVESTMENT REPRESENTATIONS. The Company may require an Optionee to give
         written assurances in substance and form satisfactory to the Company to
         the effect that such person is acquiring the Common Stock for his or
         her own account for investment and not with any present intention of
         selling or otherwise distributing the same, and to such other effect as
         the Company deems necessary or appropriate in order to comply with
         applicable federal and applicable state securities laws.

         COMPLIANCE WITH SECURITIES LAWS. Each Option shall be subject to the
         requirement that if, at any time, counsel to the Company shall
         determine that the listing, registration or qualification of the shares
         subject thereto on any securities exchange or any state or federal law,
         or the consent or approval of any governmental or regulatory body, is
         necessary as a condition of, or in connection with, the issuance of
         Options, such Options may not be sold or exercised, in whole or in
         part, unless such listing, registration, qualification, consent or
         approval shall have been effected or obtained on conditions acceptable
         to the Board. The Company plans to register the shares subject to the
         Options on a Form S-8 Registration Statement. However, nothing herein
         shall be deemed to require the Company to obtain an effective Form S-8
         Registration Statement or to apply for or to obtain any listing,
         registration or qualification of the Options or Common Stock to be
         issued pursuant thereto.

10.      AMENDMENT AND TERMINATION OF THE PLAN

         The Board may at any time and from time to time suspend, terminate,
modify or amend the Plan, provided that no suspension, termination, modification
or amendment of the Plan may adversely affect any rights under the Plan unless
the written consent of those affected is obtained.

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