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                                                                    EXHIBIT 10.1

                         GLOBAL DIAMOND RESOURCES, INC.

                        2001 STOCK OPTION AND GRANT PLAN

SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS
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         The name of the plan is the Global Diamond Resources, Inc. 2001 Stock
Option and Grant Plan (the "Plan"). The purpose of the Plan is to encourage and
enable the officers, employees, directors, consultants, advisors, and other key
persons of Global Diamond Resources, Inc. (the "Company") and its Subsidiaries
(as defined below) upon whose judgment, initiative and efforts the Company
largely depends for the successful conduct of its business to acquire a
proprietary interest in the Company. It is anticipated that providing such
persons with a direct stake in the Company's welfare will assure a closer
identification of their interests with those of the Company, thereby stimulating
their efforts on the Company's behalf and strengthening their desire to remain
with the Company.

         The following terms shall be defined as set forth below:

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

         "AWARD" or "AWARDS, "except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Restricted Stock Awards and Unrestricted Stock Awards.

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

         "CODE" means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations.

         "COMMITTEE" has the meaning specified in Section 2.

         "EFFECTIVE DATE" means the date on which the Plan is approved by
stockholders as set forth in Section 13.

         "FAIR MARKET VALUE" of the Stock on any given date (or, if no shares
were traded or quoted on such date, as of the next preceding date on which there
was such a trade or quote) means (i) the average of the reported high and low
sale prices of the Stock as of 4:00 p.m. New York time if the Stock is listed,
admitted to unlisted trading privileges or reported on any foreign or national
securities exchange or on the Nasdaq National Market or an equivalent foreign
market on which sale prices are reported; or (ii) if the Stock is not so listed,
admitted to unlisted trading privileges or reported, the closing bid price as of
4:00 p.m. New York time as reported by the Nasdaq SmallCap Market, OTC Bulletin
Board or the National Quotation Bureau, Inc. or other comparable service; or
(iii) if the Stock is not so listed or reported, or if there are no transactions
or quotations within the last ten trading days or trading has been halted for
extraordinary reasons, such price as the Committee determines in good faith in
the exercise of its reasonable discretion with reference to the rules and
principles of valuation set forth in Section 20.2031-2 of the Treasury
Regulations.

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         "INCENTIVE STOCK OPTION" means any Stock Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code.

         "INDEPENDENT DIRECTOR" means a member of the Board who is not an
employee or officer of the Company or any Subsidiary.

         "NON-QUALIFIED STOCK OPTION" means any Stock Option that is not an
Incentive Stock Option.

         "OPTION" or "STOCK OPTION" means any option to purchase shares of Stock
granted pursuant to Section 5.

         "RESTRICTED STOCK AWARD" means any Award granted pursuant to Section 6.

         "STOCK" means the Common Stock, par value $.0005 per share, of the
Company, subject to adjustments pursuant to Section 3.

         "SUBSIDIARY" means any corporation or other entity (other than the
Company) in any unbroken chain of corporations or other entities, beginning with
the Company, if each of the corporations or entities (other than the last
corporation or entity in the unbroken chain) owns stock or other interests
possessing 50% or more of the economic interest or the total combined voting
power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

         "UNRESTRICTED STOCK AWARD" means any Award granted pursuant to Section
7.

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS
           AND DETERMINE AWARDS

         (a) COMMITTEE. The Plan shall be administered by the Board of Directors
of the Company, or at the discretion of the Board, by a committee of the Board
of not less than two Independent Directors. Each member of the Committee shall
be a "non-employee director" within the meaning of Rule 16b-3(a)(3) and, if the
Board so determines in its sole discretion, shall be an "outside director"
within the meaning of Section 162(m) of the Code and the regulations promulgated
thereunder. All references herein to the "Committee" shall be deemed to refer to
the entity then responsible for administration of this Plan at the relevant time
(i.e., either the Board of Directors or a committee of the Board, as
applicable).

         (b) POWERS OF COMMITTEE. The Committee shall have the power and
authority to grant Awards consistent with the terms of the Plan, including the
power and authority:

                  (i) to select the officers, employees, Independent Directors,
consultants, advisors and key persons of the Company and its Subsidiaries to
whom Awards may from time to time be granted;

                  (ii) to determine the time or times of grant, and the extent,
if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted
Stock Awards and Unrestricted Stock Awards or any combination of the foregoing,
granted to any one or more participants;

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                  (iii) to determine the number of shares of Stock to be covered
by any Award;

                  (iv) to determine and modify from time to time the terms and
conditions, including restrictions, not inconsistent with the terms of the Plan,
of any Award, which terms and conditions may differ among individual Awards and
participants, and to approve the form of written instruments evidencing the
Awards;

                  (v) to accelerate at any time the exercisability or vesting of
all or any portion of any Award and/or to include provisions in Awards providing
for such acceleration;

                  (vi) to impose any limitations on Awards granted under the
Plan, including limitations on transfers, repurchase provisions and the like and
to exercise repurchase rights or obligations;

                  (vii) subject to the provisions of Section 5(a)(iii), to
extend at any time the period in which Stock Options may be exercised;

                  (viii) to determine at any time whether, to what extent, and
under what circumstances Stock and other amounts payable with respect to an
Award shall be deferred either automatically or at the election of the
participant and whether and to what extent the Company shall pay or credit
amounts constituting interest (at rates determined by the Committee) or
dividends or deemed dividends on such deferrals; and

                  (ix) at any time to adopt, alter and repeal such rules,
guidelines and practices for administration of the Plan and for its own acts and
proceedings as it shall deem advisable; to interpret the terms and provisions of
the Plan and any Award (including related written instruments); to make all
determinations it deems advisable for the administration of the Plan; to decide
all disputes arising in connection with the Plan; and to otherwise supervise the
administration of the Plan.

         All decisions and interpretations of the Committee shall be binding on
all persons, including the Company and Plan participants.

                  (c) Delegation of Authority to Grant Awards. The Committee, in
its discretion, may delegate to the Chief Executive Officer of the Company all
or part of the Committee's authority and duties with respect to Awards,
including the granting thereof, to individuals who are not subject to the
reporting and other provisions of Section 16 of the Act or "covered employees"
within the meaning of Section 162(m) of the Code. The Committee may revoke or
amend the terms of a delegation at any time but such action shall not invalidate
any prior actions of the Committee's delegate or delegates that were consistent
with the terms of the Plan.

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SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION
           ----------------------------------------------------

         (a) STOCK ISSUABLE. The maximum number of shares of Stock reserved and
available for issuance under the Plan at any time is equal to 10,000,000 shares
of Stock of the Company, subject to adjustment as provided in Section 3(b)
below. For purposes of the foregoing limitations, the shares of Stock underlying
any Awards which are forfeited, canceled, reacquired by the Company, satisfied
without the issuance of Stock or otherwise terminated (other than by exercise)
shall be added back to the shares of Stock available for issuance under the
Plan. Subject to such overall limitation, shares of Stock may be issued up to
such maximum number pursuant to any type or types of Award. The shares available
for issuance under the Plan may be authorized but unissued shares of Stock or
shares of Stock reacquired by the Company.

         (b) RECAPITALIZATION. If, through or as a result of any merger,
consolidation, sale of all or substantially all of the assets of the Company,
reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar transaction, the outstanding shares of
Stock are increased or decreased or are exchanged for a different number or kind
of shares or other securities of the Company or any successor company, or
additional shares or new or different shares or other securities of the Company
or any successor Company or other non-cash assets are distributed with respect
to such shares of Stock or other securities, the Committee shall make an
appropriate or proportionate adjustment in (i) the maximum number of shares
reserved for issuance under the Plan, (ii) the number of Stock Options that can
be granted to any one individual participant, (iii) the number and kind of
shares or other securities subject to any then outstanding Awards under the
Plan, and (iv) the price for each share subject to any then outstanding Stock
Options or other Awards under the Plan, without changing the aggregate exercise
price (i.e., the exercise price multiplied by the number of shares) as to which
such Stock Options or other Awards remain exercisable. The adjustment by the
Committee shall be final, binding and conclusive. No fractional shares of Stock
shall be issued under the Plan resulting from any such adjustment, but the
Committee in its discretion may make a cash payment in lieu of fractional
shares.

         The Committee may also adjust the number of shares subject to
outstanding Awards and the exercise price and the terms of outstanding Awards to
take into consideration material changes in accounting practices or principles,
extraordinary dividends, acquisitions or dispositions of stock or property or
any other event if it is determined by the Committee that such adjustment is
appropriate to avoid distortion in the operation of the Plan, provided that no
such adjustment shall be made in the case of an Incentive Stock Option, without
the consent of the participant, if it would constitute a modification, extension
or renewal of the Option within the meaning of Section 424(h) of the Code.

         (c) MERGERS AND OTHER TRANSACTIONS. In the case of (i) a merger or
consolidation of the Company with or into another corporation (with respect to
which less than a majority of the outstanding voting power of the surviving or
consolidated corporation is held by shareholders of the Company immediately
prior to such event), (ii) the sale or transfer of all or substantially all of
the properties and assets of the Company and its subsidiaries (iii) any purchase
by any party (or group of affiliated parties) of shares of capital stock of the
Company (either through a negotiated stock purchase or a tender for such
shares), the effect of which is that such party (or group of affiliated parties)
that did not beneficially own a majority of the voting power of the outstanding
shares of capital stock of the Company immediately prior to such purchase
beneficially owns at least a majority of such voting power immediately after
such purchase, or (iv) a change in the composition of the Board such that the
Continuity Directors (defined below) cease for any reason to constitute at least
a majority of the Board (in each case, a "Transaction"), all unvested Options
and other Awards which are not vested as of the effective date of such

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Transaction shall become vested as of such effective date, except as the
Committee may otherwise specify with respect to particular Awards. Upon the
effectiveness of the Transaction, the Plan and all outstanding Options and other
Awards granted hereunder shall terminate, unless provision is made in connection
with the Transaction for the assumption of Awards heretofore granted, or the
substitution of such Awards of new Awards of the successor entity or parent
thereof, with appropriate adjustment as to the number and kind of shares and, if
appropriate, the per share exercise prices, as provided in Section 3(b) above.
In the event of such termination, each optionee shall be permitted to exercise
for a period of at least 15 days prior to the date of such termination all
outstanding Options and other Awards held by such optionee which are then
exercisable or become exercisable upon the effectiveness of the Transaction. For
purposes of this Section 3, "Continuity Directors" of the Company will mean any
individuals who are members of the Board on the effective date of the Plan and
any individual who subsequently becomes a member of the Board whose election, or
nomination for election by the Company's shareholders, was approved by a vote of
at least a majority of the Continuity Directors (either by specific vote or by
approval of the Company's proxy statement in which such individual is named as a
nominee for director without objection to such nomination).

         (d) SUBSTITUTE AWARDS. The Committee may grant Awards under the Plan in
substitution for stock and stock based awards held by employees of another
corporation who become employees of the Company or a Subsidiary as the result of
a merger or consolidation of the employing corporation with the Company or a
Subsidiary or the acquisition by the Company or a Subsidiary of property or
stock of the employing corporation. The Committee may direct that the substitute
awards be granted on such terms and conditions as the Committee considers
appropriate in the circumstances.

         (e) LIMITATION ON CHANGE IN CONTROL PAYMENTS. Notwithstanding anything
in this Section 3 to the contrary, if, with respect to a participant, the
acceleration of the exercisability of an Option as provided in this Section 3,
together with any other "payments" that such participant has the right to
receive from the Company or any corporation that is a member of an "affiliated
group" (as defined in Section 1504(a) of the Code without regard to Section
1504(b) of the Code) of which the Company is a member, would constitute a
"parachute payment" (as defined in Section 280G(b)(2) of the Code), then the
"payments" to such participant pursuant to this Section 3 will be reduced to the
largest amount as will result in no portion of such "payments" being subject to
the excise tax imposed by Section 4999 of the Code but if and only if so
reducing such payments or benefits results in the participant receiving a
greater net benefit than the participant would have received had a reduction not
occurred and an excise tax had been paid by the participant under Section 4999
of the Code; provided, however, that if a participant is subject to a separate
agreement with the Company or a Subsidiary that expressly addresses the
potential application of Sections 280G or 4999 of the Code (including, without
limitation, that "payments" under such agreement or otherwise will be reduced,
that the participant will have the discretion to determine which "payments" will
be reduced, that such "payments" will not be reduced or that such "payments"
will be "grossed up" for tax purposes), then this Section 3(e) will not apply,
and any "payments" to a participant pursuant to Section 3(c) will be treated as
"payments" arising under such separate agreement. The determination as to
whether any such decrease in the payments or benefits to be made or provided in
connection with this Section 3 is necessary must be made in good faith by legal
counsel or a certified public accountant selected by the Company and reasonably
acceptable to the participant, and such determination will be conclusive and
binding upon the participant and the Company.

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SECTION 4. ELIGIBILITY
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         Participants in the Plan will be such officers and other employees,
Independent Directors, consultants, advisors and other key persons of the
Company and its Subsidiaries who are responsible for or contribute to the
management, growth or profitability of the Company and its Subsidiaries as are
selected from time to time by the Committee, in its sole discretion.

SECTION 5. STOCK OPTIONS
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         Any Stock Option granted under the Plan shall be pursuant to a stock
option agreement which shall be in such form as the Committee may from time to
time approve. Option agreements need not be identical.

         Stock Options granted under the Plan may be either Incentive Stock
Options or Non-Qualified Stock Options. Incentive Stock Options may be granted
only to employees of the Company or any Subsidiary that is a "subsidiary
corporation" within the meaning of Section 424(t) of the Code. Non-Qualified
Stock Options may be granted to officers, employees, Independent Directors,
advisors, consultants and other key persons of the Company and its Subsidiaries.
To the extent that any Option does not qualify as an Incentive Stock Option, it
shall be deemed a Non-Qualified Stock Option. No Incentive Stock Option shall be
granted under the Plan after December 14, 2011.

         (a) TERMS OF STOCK OPTIONS. Stock Options granted under the Plan shall
be subject to the following terms and conditions and shall contain such
additional terms and conditions, not inconsistent with the terms of the Plan, as
the Committee shall deem desirable:

                  (i) EXERCISE PRICE. The exercise price per share for the Stock
covered by a Stock Option shall be determined by the Committee at the time of
grant but in the case of Incentive Stock Options shall not be less than 100% of
the Fair Market Value on the date of grant. If an employee owns or is deemed to
own (by reason of the attribution rules applicable under Section 424(d) of the
Code) more than 10% of the combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation and an Incentive Stock Option is
granted to such employee, the option price of such Incentive Stock Option shall
be not less than 110% of the Fair Market Value on the grant date.

                  (ii) GRANT OF DISCOUNT OPTIONS IN LIEU OF CASH COMPENSATION.
The Committee is authorized to establish, from time to time, a plan permitting
participants to elect to receive a Non-Qualified Stock Option in lieu of any
cash bonus or other compensation to which such participant may become entitled.
The exercise price per share shall be determined by the Committee. The number of
shares of Stock subject to the Stock Option shall be determined by dividing the
amount of the waived cash compensation by the difference between the Fair Market
Value of the Stock on the date the Stock Option is granted and the exercise
price per share of the Stock Option. The Stock Option shall be granted for a
whole number of shares so determined; the value of any fractional share shall be
paid in cash.

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                  (iii) OPTION TERM. The term of each Stock Option shall be
fixed by the Committee, but no Incentive Stock Option shall be exercisable more
than ten years after the date the option is granted. If an employee owns or is
deemed to own (by reason of the attribution rules of Section 424(d) of the Code)
more than 10% of the combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation and an Incentive Stock Option is
granted to such employee, the term of such option shall be no more than five
years from the date of grant.

                  (iv) EXERCISABILITY RIGHTS OF A STOCKHOLDER. Stock Options
shall become vested and exercisable at such time or times, whether or not in
installments, as shall be determined by the Committee at or after the grant
date; provided, however, that Stock Options granted in lieu of cash compensation
shall be exercisable in full as of the grant date. The Committee may at any time
accelerate the exercisability of all or any portion of any Stock Option. An
optionee shall have the rights of a stockholder only as to shares acquired upon
the exercise of a Stock Option and not as to unexercised Stock Options.

                  (v) METHOD OF EXERCISE. Stock Options may be exercised in
whole or in part, by giving written notice of exercise to the Company,
specifying the number of shares to be purchased. Payment of the purchase price
may be made by one or more of the following methods; provided, however, that the
methods set forth in subsections (B) and (C) below shall become available only
after the closing of the Initial Public Offering:

                           (A) In cash, by certified or bank check or other
instrument acceptable to the Committee;

                           (B) In the form of shares of Stock that are not then
subject to restrictions under any Company plan and that have been held by the
optionee free of such restrictions for at least six months, if permitted by the
Committee in its discretion. Such surrendered shares shall be valued at Fair
Market Value on the exercise date;

                           (C) By the optionee delivering to the Company a
properly executed exercise notice together with irrevocable instructions to a
broker to promptly deliver to the Company cash or a check payable and acceptable
to the Company to pay the purchase price; provided that in the event the
optionee chooses to pay the purchase price as so provided, the optionee and the
broker shall comply with such procedures and enter into such agreements of
indemnity and other agreements as the Committee shall prescribe as a condition
of such payment procedure; or

                           (D) By the optionee delivering to the Company a
secured promissory note if the Board has authorized the loan of funds to the
optionee for the purpose of enabling or assisting the optionee to effect the
exercise of the optionee's Stock Option.

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         Payment instruments will be received subject to collection. The
delivery of certificates representing the shares of Stock to be purchased
pursuant to the exercise of a Stock Option will be contingent upon receipt from
the optionee (or a purchaser acting in his stead in accordance with the
provisions of the Stock Option) by the Company of the full purchase price for
such shares and the fulfillment of any other requirements contained in the Stock
Option or applicable provisions of laws.

                  (vi) TERMINATION. Unless otherwise provided in the option
agreement or determined by the Committee, upon the optionee's termination of
employment (or other business relationship) with the Company and its
Subsidiaries, the optionee's rights in the optionee's Stock Options shall
automatically terminate.

                  (vii) ANNUAL LIMIT ON INCENTIVE STOCK OPTIONS. To the extent
required for "incentive stock option" treatment under Section 422 of the Code,
the aggregate Fair Market Value (determined as of the time of grant) of the
shares of Stock with respect to which Incentive Stock Options granted under this
Plan and any other plan of the Company or its parent and subsidiary corporations
become exercisable for the first time by an optionee during any calendar year
shall not exceed $100,000. To the extent that any Stock Option exceeds this
limit, it shall constitute a Non-Qualified Stock Option.

         (b) RELOAD OPTIONS. At the discretion of the Committee, Options granted
under the Plan may include a "reload" feature pursuant to which an optionee
exercising an option by the delivery of a number of shares of Stock in
accordance with Section 5(a)(v)(B) hereof would automatically be granted an
additional Option (with an exercise price equal to the Fair Market Value of the
Stock on the date the additional Option is granted and with the same expiration
date as the original Option being exercised, and with such other terms as the
Committee may provide) to purchase that number of shares of Stock equal to the
number delivered to exercise the original Option.

         (c) NON-TRANSFERABILITY OF OPTIONS. No Stock Option shall be
transferable by the optionee otherwise than by will or by the laws of descent
and distribution and all Stock Options shall be exercisable, during the
optionee's lifetime, only by the optionee. Notwithstanding the foregoing, the
Committee may provide in an option agreement that the optionee may transfer,
without consideration for the transfer, Non-Qualified Stock Options to members
of the optionee's immediate family, to trusts for the benefit of such family
members, to partnerships in which such family members are the only partners; or
to charitable organizations; provided, however, that the transferee agrees in
writing to be bound by the terms and conditions of this Plan and the applicable
Option Agreement.

SECTION 6. RESTRICTED STOCK AWARDS
           -----------------------

         (a) NATURE OF RESTRICTED STOCK AWARDS. A Restricted Stock Award is an
Award entitling the recipient to acquire, at par value or such other purchase
price determined by the Committee, shares of Stock subject to such restrictions
and conditions as the Committee may determine at the time of grant ("Restricted
Stock"). Conditions may be based on continuing employment (or other business
relationship) and/or achievement of pre-established performance goals and
objectives. The grant of a Restricted Stock Award is contingent on the recipient
executing the Restricted Stock Award agreement. The terms and conditions of each
such agreement shall be determined by the Committee, and such terms and
conditions may differ among individual Awards and participants.

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         (b) RIGHTS AS A STOCKHOLDER. Upon execution of a written instrument
setting forth the Restricted Stock Award and paying any applicable purchase
price, a participant shall have the rights of a stockholder with respect to the
voting of the Restricted Stock, subject to such conditions contained in the
written instrument evidencing the Restricted Stock Award. Unless the Committee
shall otherwise determine, certificates evidencing the Restricted Stock shall
remain in the possession of the Company until such Restricted Stock is vested as
provided in Section 6(d) below and the participant shall be required, as a
condition of the grant, to deliver to the Company a stock power endorsed in
blank.

         (c) RESTRICTIONS. Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein or in the written instrument evidencing the
Restricted Stock Award. If a participant's employment (or other business
relationship) with the Company and its Subsidiaries terminates for any reason,
or upon such other events as may be stated in the instrument evidencing the
Restricted Stock Award, the Company or its assigns shall have the right or shall
agree, as may be specified in the relevant restricted stock agreement, to
repurchase same or all of the shares of Stock subject to the Award at such
purchase price as shall be set forth in such instrument.

         (d) VESTING OF RESTRICTED STOCK. The Committee at the time of grant
shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which Restricted Stock
shall become vested, subject to such further rights of the Company or its
assigns as may be specified in the instrument evidencing the Restricted Stock
Award.

         (e) WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS. The written
instrument evidencing the Restricted Stock Award may require or permit the
immediate payment, waiver, deferral or investment of dividends paid on the
Restricted Stock.

SECTION 7. UNRESTRICTED STOCK AWARDS
           -------------------------

         (a) GRANT OR SALE OF UNRESTRICTED STOCK. The Committee may, in its sole
discretion, grant (or sell at a purchase price determined by the Committee) an
Unrestricted Stock Award to any participant, pursuant to which such participant
may receive shares of Stock free of any vesting restrictions ("Unrestricted
Stock") under the Plan. Unrestricted Stock Awards may be granted or sold as
described in the preceding sentence in respect of past services or other valid
consideration, or in lieu of any cash compensation due to such individual.

         (b) ELECTIONS TO RECEIVE UNRESTRICTED STOCK IN LIEU OF COMPENSATION.
Upon the request of a participant and with the consent of the Committee, each
such participant may, pursuant to an advance written election delivered to the
Company no later than the date specified by the Committee, receive a portion of
the cash compensation otherwise due to such participant in the form of shares of
Unrestricted Stock either currently or on a deferred basis.

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         (c) RESTRICTIONS ON TRANSFERS. The right to receive shares of
Unrestricted Stock on a deferred basis may not be sold, assigned, transferred,
pledged or otherwise encumbered, other than by will or the laws of descent and
distribution.

SECTION 8. TAX WITHHOLDING
           ---------------

         (a) PAYMENT BY PARTICIPANT. Each participant shall, no later than the
date as of which the value of an Award or of any Stock or other amounts received
thereunder first becomes includable in the gross income of the participant for
Federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of, any federal, state, or local
taxes of any kind required by law to be withheld with respect to such income.
The Company and its Subsidiaries shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment of any kind otherwise due to the
participant.

         (b) PAYMENT IN STOCK. Subject to approval by the Committee, a
participant may elect to have such tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the participant with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the withholding amount due.

SECTION 9. TRANSFER, LEAVE OF ABSENCE, ETC.
           --------------------------------

         For purposes of the Plan, the following events shall not be deemed a
termination of employment:

         (a) a transfer to the employment of the Company from a Subsidiary or
from the Company to a Subsidiary, or from one Subsidiary to another; or

         (b) an approved leave of absence for military service or sickness, or
for any other purpose approved by the Company, if the employee's right to
re-employment is guaranteed either by a statute or by contract or under the
policy pursuant to which the leave of absence was granted or if the Committee
otherwise so provides in writing.

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SECTION 10. AMENDMENTS AND TERMINATION
            --------------------------

         The Board may, at any time, amend or discontinue the Plan and the
Committee may, at any time, amend or cancel any outstanding Award (or provide
substitute Awards at the same or reduced exercise or purchase price or with no
exercise or purchase price in a manner not inconsistent with the terms of the
Plan, but such price, if any, must satisfy the requirements which would apply to
the substitute or amended Award if it were then initially granted under this
Plan for the purpose of satisfying changes in law or for any other lawful
purpose), but no such action shall adversely affect rights under any outstanding
Award without the holder's consent. No amendments to the Plan will be effective
without approval of the stockholders of the Company if stockholder approval is
then required to ensure that Incentive Stock Options granted under the Plan are
qualified under Section 422 of the Code or to satisfy the rules of any stock
exchange, Nasdaq or similar regulatory body.

SECTION 11. STATUS OF PLAN
            --------------

         With respect to the portion of any Award which has not been exercised
and any payments in cash, Stock or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee
may authorize the creation of trusts or other arrangements to meet the Company's
obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the foregoing sentence.

SECTION 12. GENERAL PROVISIONS
            ------------------

         (a) NO DISTRIBUTION COMPLIANCE WITH LEGAL REQUIREMENTS. The Committee
may require each person acquiring Stock pursuant to an Award to represent to and
agree with the Company in writing that such person is acquiring the shares
without a view to distribution thereof.

         No shares of Stock shall be issued pursuant to an Award until all
applicable securities law and other legal and stock exchange or similar
requirements have been satisfied. The Committee may require the placing of such
stop-orders and restrictive legends on certificates for Stock and Awards as it
deems appropriate.

         (b) OTHER COMPENSATION ARRANGEMENTS; NO EMPLOYMENT RIGHTS. Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, and such arrangements may be either
generally applicable or applicable only in specific cases. The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to
continued employment with the Company or any Subsidiary.

SECTION 13. EFFECTIVE DATE OF PLAN
            ----------------------

         This Plan shall become effective upon approval by the Board, provided
that the exercise of any Incentive Stock Option granted under the Plan shall be
subject to the approval of the Plan by the holders of a majority of the shares
of Stock of the Company no later than December 14, 2002.

<PAGE>

SECTION 14. GOVERNING LAW
            -------------

         This Plan shall be governed by California law except to the extent such
law is preempted by federal law.

Adopted and Effective: December 14, 2001<PAGE>

                                                                     EXHIBIT 4.1

                        CONSUMER PORTFOLIO SERVICES, INC.
                1997 Long-Term Incentive Stock Plan (as Amended)
                       (CURRENT THROUGH DECEMBER 20, 2001)

1.       PURPOSES OF THE PLAN

         The purposes of the 1997 Long-Term Incentive Stock Plan (the "Plan") of
Consumer Portfolio Services, Inc., a California corporation (the "Company") are
to: promote the interests of the Company and its stockholders by strengthening
the Company's ability to attract and retain highly competent officers and other
key employees; permit the awarding of opportunities for Plan participants to be
rewarded using stock-based incentives; and to provide a means to encourage stock
ownership and proprietary interest in the Company by the recipients of awards
made under the Plan.

2.       DEFINITIONS

         a) "1934 Act" means the Securities and Exchange Act of 1934, as
amended, including the rules and regulations promulgated thereunder.

         b) "Award" means an Option (including an ISO), an SAR, a stock Award, a
stock payment, any other award made pursuant to the terms of the Plan, or any
combination of them, as described in and granted under the Plan.

         c) "Board" means the board of directors of the Company.

         d) "Change of Control" is defined in Section 11.

         e) "Code" means the Internal Revenue Code of 1986, as amended,
including any rules and regulations promulgated thereunder.

         f) "Committee" means the Compensation Committee of the Board or such
other committee as may be appointed by the Board to administer the Plan.

         g) "Company" means Consumer Portfolio Services, Inc., a California
corporation.

         h) "Eligible Person" means any natural person who at the time of an
Award (i) is an employee of the Company or any Subsidiary, or (ii) is an
employee of a business acquired by or an entity merged into the Company or any
Subsidiary; provided, however, that with respect to an Award of ISOs, an
"Eligible Person" means only a natural person who is at the time of grant an
employee of the Company or of a corporation to which the Company is a parent
corporation as defined in Section 424 of the Code, or successor provision.

         i) "Fair Market Value" means the average of the high and low selling
prices of a Share as reported in The Wall Street Journal (or other readily
available public source designated by the Committee) for the last trading day
for which such prices are available prior to the applicable transaction date
under the Plan. If the Committee determines that there is no readily available
source of information regarding transactions in Shares, then Fair Market Value
shall mean the fair market value of a Share as determined by the Committee.

         j) "ISO" means an incentive stock option as defined in Section 422 of
the Code.

         k) "Option" means an Award under the Plan of an option to purchase
Shares, and includes ISO Awards and options that do not meet the requirements of
Section 422 of the Code.

         l) "Participant" means an Eligible Person who has been granted an Award
under the Plan.

         m) "Plan Year" means a twelve-month period beginning with January 1 of
each year, commencing with January 1, 1997.

         n) "Prior Plan" means the Consumer Portfolio Services, Inc. 1991 Stock
Option Plan.

                                       6
<PAGE>

         o) "SAR" means a stock appreciation right.

         p) "Shares" means the common stock of the Company, no par value.

         q) "Subsidiary" mean any entity that is directly or indirectly
controlled by the Company, or any entity, including an acquired entity, in which
the Company has a significant equity interest, as determined by the Committee.

3.       EFFECTIVE DATE OF PLAN AND DURATION OF PLAN

         The Plan shall become effective upon its adoption by the Board. Any
Awards hereunder may be made immediately upon such effectiveness; provided,
however, (i) that the Plan and any such Awards shall be void AB INITIO if the
shareholders of the Company do not approve the Plan within one year after its
adoption by the Board, and (ii) no ISO or SAR may be exercised prior to
shareholder approval. Unless previously terminated by the Board of Directors,
the Plan shall expire at the close of business on April 30, 2007.

4.       PLAN ADMINISTRATION

         a) COMMITTEE -- The Committee shall administer the Plan. The Committee
shall comprise two or more members of the Board, each of whom shall be both (i)
a non-employee director within the meaning of Rule 16b-3 under the 1934 Act and
(ii) an outside director within the meaning of Section 162(m) of the Code;
provided, however, that the Board may by resolution specifically declaring that
compliance with said restrictions of Rule 16b-3 or Section 162(m), or both, is
no longer necessary or advisable, name to the Committee individuals who do not
meet such definitions. Each member of the Committee shall serve for such term as
the Board may determine, subject to removal by the Board at any time.

         b) COMMITTEE AUTHORITY -- The Committee shall have full and exclusive
authority to interpret the Plan and to adopt such rules, regulations and
guidelines for carrying out the Plan as it may deem necessary or proper, all of
which authority shall be executed in the best interests of the Company and in
keeping with the provisions and objectives of the Plan. Without limiting the
preceding grant of authority, the Committee shall have the authority (i) to
select Award recipients, (ii) to establish all Award terms and conditions, (iii)
to adopt procedures and regulations governing Awards, (iv) to approve forms of
Award agreements for use under this Plan, (v) to amend the terms of any
outstanding Award, including a reduction in the exercise price of any Option or
SAR to reflect a decrease in Fair Market Value, subject to consent of the
Participant to the extent required by the applicable Award agreement, (vi) to
construe and interpret the Plan and any Award agreements, and (vii) to make all
other determinations necessary or advisable for the administration of this Plan,
including the authority in the event of a spin-off or other corporate
transaction to replace an Award under the Plan with an award from another issuer
or plan or an award relating to property other than Shares. All decisions made
by the Committee shall be conclusive, final and binding on all persons affected
by such decisions.

         c) No member of the Committee shall be liable for any action or
determination with respect to the Plan, and the members shall be entitled to
indemnification and reimbursement in the manner provided in the Company's
Articles of Incorporation and its bylaws, as amended. In the performance of its
functions under the Plan, the Committee shall be entitled to rely upon
information and advice furnished by the Company's officers, accountants, counsel
and any other party the Committee deems necessary, and no member of the
Committee shall be liable for any action taken or not taken in reliance upon any
such advice.

5.       PARTICIPATION

         The Committee may from time to time grant Awards under the Plan to any
Eligible Person. The Committee may impose such terms and conditions on any such
Award as the Committee may find advisable.

6.       AVAILABLE SHARES OF COMMON STOCK

         a) Subject to any adjustment pursuant to Section 6(c), grants of Awards
are subject to the following limitations:

                  (i) the aggregate number of Shares as to which Awards may be
         granted shall not exceed 3,400,000.

                                       7
<PAGE>

                  (ii) In addition, awards may be granted with respect to the
         following: any Shares available for grants under the Prior Plan that
         have not been committed for issuance under grants made under the Prior
         Plan; any Shares that are represented by grants or portions of grants
         made under the Plan or the Prior Plan that are forfeited, expire or are
         canceled without the issuance of Shares; and any Shares that may be
         tendered, either actually or by attestation, by a person as full or
         partial payment made to the Company in connection with the exercise of
         any stock option under the Plan or the Prior Plan.

                  (iii) The aggregate number of Shares that may be represented
         by Awards granted to any one individual under Sections 7(b), 7(c), 7(d)
         and 7(e) of the Plan shall not exceed 1,000,000 over the life of the
         Plan.

                  (iv) The aggregate number of Shares that may be used in
         settlement of Awards pursuant to Section 7(d) of the Plan shall not
         exceed 30% of total number of Shares available under this Section 6(a).

         b) EXCLUSIONS AND SOURCE OF SHARES -- Any Shares issued, and any Awards
that are granted through the assumption of, or in substitution for, outstanding
awards previously granted by an acquired entity shall not be counted against the
Shares available for Awards under the Plan. No fractional Shares shall be issued
under the Plan. Cash may be paid in lieu of any fractional Shares in settlements
of awards under the Plan.

         c) ADJUSTMENTS -- In the event of any stock dividend, stock split,
combination or exchange of equity securities, merger, consolidation,
recapitalization, spin-off or other distribution (other than normal cash
dividends) of Company's assets to stockholders, or any other change affecting
Shares or Share price the Committee in its discretion may make such
proportionate adjustments as it may deem appropriate to reflect such change with
respect to: (i) the limitations on the numbers of Shares that may be issued and
represented by Awards as set forth in Section 6(a); (ii) each outstanding Award;
and (iii) the exercise price per Share for any outstanding Options, SARs or
similar Awards.

7.       AWARDS

         a) General -- The Committee shall determine the type or types of
Award(s), if any, to be made to each Eligible Person. Awards may be granted
singly, in combination or in tandem. Awards also may be made in combination or
in tandem with, in replacement of, as alternatives to grants or rights under the
Plan or any other employee compensation plan of the Company, including the plan
of any acquired entity. The types of Awards that may be granted under the Plan
are:

         b) Stock Options -- An Option shall represent a right to purchase a
specified number of Shares during a specified period as determined by the
Committee. The purchase price per Share shall be as specified in the Committee
resolution granting same, or, in the absence of any specification, shall be the
Fair Market Value of one Share. The Committee shall designate each Option as an
ISO or as an Option other than an ISO. The Shares covered by an Option may be
purchased, in accordance with the applicable Award agreement , by cash payment
or any other method permitted by the Committee, which other methods may include
(i) tender (either actually or by attestation) of Shares valued at the Fair
Market Value at the date of exercise; (ii) authorizing a third party to sell the
Shares (or a sufficient portion thereof) acquired upon exercise of a stock
option, and assigning for delivery to the Company a sufficient amount of the
sale proceeds to pay for all the Shares acquired through such exercise and any
tax withholding obligations resulting from such exercise; (iii) delivery of the
Participant's promissory note with such recourse, interest, term, security and
other provisions as the Committee deems appropriate, or (iv) any combination of
the above. Unless some other method of payment is explicitly authorized, either
by resolution of the Committee or the terms of the written Option agreement,
payment for Shares shall be by delivery of cash to the Company prior to the
issuance of such Shares. The Committee may grant Options that provide for the
grant of a subsequent restoration Option if the exercise price has been paid for
by tendering Shares to the Company. Any restoration Option may cover up to the
number of Shares tendered in exercising the predecessor Option, with the Option
purchase price set at the then-current Fair Market Value, and the term of such
restoration Option may not extend beyond the remaining term of the original
option.

                                       8
<PAGE>

         c) SARs -- An SAR shall represent a right to receive a payment, in
cash, Shares or a combination, equal to the excess of the Fair Market Value of a
specified number of Shares on the date the SAR is exercised over the Fair Market
Value on the date the SAR was granted as set forth in the applicable Award
agreement; except that if an SAR is granted retroactively in tandem with or in a
substitution for a stock option, the designated Fair Market Value in the
applicable Award agreement may be the Fair Market Value on the date such stock
option was granted.

         d) Stock Awards -- A stock Award shall represent an Award made in
Shares or denominated in units equivalent in value to Shares. All or part of any
stock Award may be subject to conditions and restrictions established by the
Committee, and set forth in the Award agreement, which may include, but are not
limited to, continuous service with the Company, the achievement of performance
goals, or both. The vesting period of any stock Award will be not less than six
months. The performance criteria that the Committee may use in granting stock
Awards contingent on performance goals for officers to whom Section ss.162(m) of
the Code is applicable shall consist of Fair Market Value of Shares, earnings,
return on equity, and revenues. The Committee may select one criterion or
multiple criteria for measuring performance, and the measurement may be based on
absolute Company or business unit performance or based on performance as
compared with other companies.

         e) Stock Payment -- A Stock Payment shall represent an issuance of
Shares as payment for compensation which otherwise would have been delivered in
cash (including without limitation any compensation that is intended to qualify
as performance-based compensation for purposes of Section 162(m) of the Code).
No minimum vesting period need apply to Shares issued as a Stock Payment. Any
Shares used for such payment will be valued at their Fair Market Value at the
time of payment and shall be subject to such restrictions (including without
limitation restrictions on transfer), if any, and other terms and conditions as
may be determined by the Committee at the time of payment.

8.       DIVIDENDS AND DIVIDEND EQUIVALENTS

         The Committee may provide that any Awards may earn dividends or
dividend equivalents, which shall not be deemed earned in the absence of
explicit provision therefor. Such dividends or dividend equivalents may be paid
currently or may be credited to a Participant's account. Any crediting of
dividends or dividend equivalents may be subject to such restrictions and
conditions as the Committee may establish, including reinvestment in additional
Shares or share equivalents.

9.       PAYMENTS AND PAYMENT DEFERRALS

         Payment of Awards may be in the form of cash, Shares, other Awards or
combinations thereof as the Committee shall determine, and with such
restrictions as it may impose. The Committee also may require or permit
Participants to elect to defer the issuance of Shares from Stock Options or
Stock Awards or the settlement of Awards in cash under such rules and procedures
as it may establish under the Plan. It also may provide that deferred
settlements include the payment or crediting of interest on the deferred
amounts, or the payment or crediting of dividend equivalents where the deferred
amounts are denominated in Share equivalents. In addition, the Committee may
stipulate in an Award agreement, either at time of grant or by subsequent
amendment, that a payment or portion of a payment of an Award be delayed in the
event that Section 162(m) of the Code (or any successor or similar provision of
the Code affecting tax deductibility) would operate to disallow a tax deduction
by the Company for all or a portion of such payment. The period of any such
delay in payment shall be until the payment, or portion thereof, is tax
deductible, or such earlier date as the Committee may determine.

         Shares shall not be issued pursuant to an Award unless the issuance and
delivery of such Shares pursuant thereto would comply with all applicable laws,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance. The Company shall have no obligation to cause
compliance with any applicable law. In particular, but without limitation, the
Company shall have no obligation to register under the Securities Act of 1933
the Shares issuable pursuant to any Award.

         As a condition to the issuance of Shares to a Participant, the Company
may require the Participant to represent and warrant at the time of any such
issuance that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any applicable
law.

                                       9
<PAGE>

10.      TRANSFERABILITY

         Awards under the Plan shall not be transferable or assignable other
than by will or the laws of descent and distribution, except that the Committee
may provide for the transferability of particular Awards, other than ISOs:

         a) by gift or other transfer to (i) any trust or estate in which the
original Award recipient or such person's spouse or other immediate relative has
a beneficial interest; or (ii) a spouse or other immediate relative, provided,
however, that the Participant continues to have substantial beneficial interest
in the Shares covered by the Award after such transfer; or

         b) pursuant to a qualified domestic relations order.

         In the event that a Participant terminates employment with the Company
or any Subsidiary to assume a position with a governmental, charitable,
educational or similar non-profit institution, the Committee may subsequently
authorize a third party, including but not limited to a "blind" trust, to act on
behalf of and for the benefit of such Participant regarding any outstanding
Award held by the Participant subsequent to such termination of employment. If
so permitted by the Committee, a Participant may designate a beneficiary or
beneficiaries to exercise the rights of the Participant and receive any
distribution under the Plan upon the death of the Participant.

11.      CHANGE OF CONTROL

         a) In order to maintain the Participants' rights in the event of a
Change of Control, the Committee in its sole discretion may, either at the time
an Award is made hereunder or at any time prior to, or coincident with or after
the time of a Change of Control:

                  i) provide for the acceleration of any time periods relating
         to the exercise or realization of such Awards so that such Awards may
         be exercised or realized in full on or before a date fixed by the
         Committee;

                  ii) provide for the purchase of such Awards, upon the
         Participant's request, for an amount of cash equal to the amount which
         could have been obtained upon the exercise or realization of such
         rights had such Awards been currently exercisable or payable;

                  iii) make such adjustment to the Awards then outstanding as
         the Committee deems appropriate to reflect such transaction or change;
         or

                  iv) cause the Awards then outstanding to be assumed, or new
         rights substituted therefore, by the surviving corporation in such
         change.

         b) The Committee may, in its discretion, include such further
provisions and limitations in any agreement documenting such Awards as it may
deem equitable and in the best interests of the Company.

         c) A "Change of Control" shall be deemed to occur if and when:

                  i) any person, including a "person" as such term is used in
         Section 14(d)(2) of the 1934 Act (a "Person"), is or becomes a
         beneficial owner (as such term is defined in Rule 13d-3 under the 1934
         Act), directly or indirectly, of securities of the Company representing
         25% or more of the combined voting power of the Company's then
         outstanding securities, but excluding any such person who holds such
         voting power as of the date of adoption of the Plan;

                  ii) any plan or proposal for the liquidation or dissolution of
         the Company is adopted by its shareholders;

                  iii) individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then constituting the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of either an actual or threatened election contest (as such terms are
         used in Rule 14a-11 of Regulation 14A promulgated under the 1934 Act)
         or other actual or threatened solicitation of proxies or consents by or
         on behalf of a Person other than the Board;

                                       10
<PAGE>

                  iv) all or substantially all or the assets of the Company are
         sold, liquidated or distributed; or

                  v) there occurs a reorganization, merger, consolidation or
         other corporate transaction involving the Company (a "Transaction"), in
         each case, with respect to which the shareholders of the Company
         immediately prior to such Transaction do not, immediately after the
         Transaction, own more than 50 percent of the combined voting power of
         the Company or other corporation resulting from such Transaction.

         d) Any good faith determination by the Incumbent Board of whether a
Change of Control within the meaning of this definition has occurred shall be
conclusive.

12.      AWARD AGREEMENTS

         Awards under the Plan shall be evidenced by agreements that set forth
the terms, conditions and limitations for each Award, which may include the term
of the Award (except that in no event shall the term of any ISO exceed a period
of ten years from the date of its grant), the provisions applicable in the event
the Participant's employment terminates, and the Company's authority
unilaterally or bilaterally to amend, modify, suspend, cancel or rescind any
Award. The Committee need not require the execution of any such Agreement by the
Participant, in which case acceptance of the Award by the Participant shall
constitute agreement by the Participant to the terms of the Award.

13.      PLAN AMENDMENT

         The Board may at any time amend, suspend or terminate the Plan as it
deems necessary or appropriate to better achieve the purposes of the Plan,
except that the Board may not, without the approval of the Company's
stockholders, materially increase the number of shares available for issuance in
accordance with Section 6 of the Plan.

14.      TAX WITHHOLDING

         The Company shall have the right to deduct from any settlement of an
Award made under the Plan, including the delivery or vesting of Shares, a
sufficient amount to cover withholding of any federal, state or local taxes
required by law or such greater amount of withholding as the Committee shall
determine from time to time, or to take such other action as may be necessary to
satisfy any such withholding obligations. If the Committee permits or requires
Shares to be used to satisfy required tax withholding, such Shares shall be
valued at the Fair Market Value as of the tax recognition date for such Award.
No Shares or other property shall be delivered under the Plan to any Participant
or other person until such Participant or other person has made arrangements
acceptable to the Committee for the satisfaction of any foreign, federal, state,
or local income and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of shares or the disqualifying
disposition of shares received on exercise of an ISO. Upon exercise of an
Option, the Company shall withhold or collect from the Participant an amount
sufficient to satisfy such tax obligations.

15.      OTHER BENEFIT AND COMPENSATION PROGRAMS

         Unless otherwise specifically determined by the Committee, settlements
of Awards received by participants under the Plan shall not be deemed a part of
a participant's regular, recurring compensation for purposes of calculating
payments or benefits from any Company benefit plan or severance program.
Further, the Company may adopt other compensation programs, plans or
arrangements as it deems appropriate or necessary.

16.      UNFUNDED PLAN

         Unless otherwise determined by the Board, the Plan shall be unfunded
and shall not create (or be construed to create) a trust or a separate fund or
funds. The Plan shall not establish any fiduciary relationship between the
Company and any participant or other person. To the extent any person holds any
rights by virtue of an Award granted under the Plan, such rights shall
constitute general unsecured liabilities of the Company and shall not confer
upon any Participant any right, title or interest in any assets of the Company.

                                       11
<PAGE>

17.      USE OF PROCEEDS

         The cash proceeds received by the Company from the issuance of Shares
pursuant to the exercise of stock options or the settlement of other Awards
under the Plan may be used for general corporate purposes.

18.      REGULATORY APPROVALS

         The implementation of the Plan, the grant of any Award under the Plan,
and the issuance of Shares upon the exercise or settlement of any Award shall be
subject to the Company's receiving all approvals and permits required by
regulatory authorities having jurisdiction over the Plan, Awards or the Shares
issued pursuant to Awards.

19.      FUTURE RIGHTS

         No person shall have any claim or rights to be granted an Award under
the Plan, and no Participant shall have any rights under the Plan to be retained
in the employment of the Company. Likewise, participation in the Plan will not
in any way affect the Company's right to terminate the employment of the
Participant at any time with or without cause. Any discretionary authority held
by the Committee or the Board shall not give rise to any duty on the part of
such body to exercise such discretion for the benefit of any Participant; and
all such discretion may be exercised for the exclusive benefit of the Company.

20.      GOVERNING LAW

         The validity, construction and effect of the Plan and any actions taken
or relating to the Plan shall be determined in accordance with the internal laws
of the State of California and applicable federal law.

21.      SUCCESSORS AND ASSIGNS

The Plan shall be binding on all successors and assigns of a Participant,
including, without limitation, the estate of such Participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in
bankruptcy or representative of the Participant's creditors. However, no Award
or other interest in the Plan may be assigned, pledged or otherwise alienated,
except to the extent permitted in accordance with Section 10 of the Plan and the
applicable Award agreement.

                                       12

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