Document:

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                                                                     Exhibit 4.1

                            COHEN & KAMENY CPA'S PLLC
                       3530 Henry Hudson Parkway, Suite B
                            Riverdale, New York 10463

               CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

We hereby consent to the use in the Form 10 Registration Statement of our report
as of December 31, 1999, dated January 27, 2000, relating to the financial
statements of Pepper Capital, Corp. that appear in such Form 10.

                            Cohen & Kameny CPA'S PLLC
                          Certified Public Accountants

Riverdale, New York
February 7, 2000<PAGE>

                                                                     Exhibit 4.1

                            COHEN & KAMENY CPA'S PLLC
                       3530 Henry Hudson Parkway, Suite B
                            Riverdale, New York 10463

               CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

We hereby consent to the use in the Form 10 Registration Statement of our report
as of December 31, 1999, dated January 27, 2000, relating to the financial
statements of Aries Holdings, Inc. that appear in such Form 10.

                            Cohen & Kameny CPA'S PLLC
                          Certified Public Accountants

Riverdale, New York
February 7, 2000EXHIBIT 4.5

                               PHARMOS CORPORATION
                              a Nevada corporation

               1997 Incentive and Non-Qualified Stock Option Plan

     1. Purpose.  The purposes of this 1997  Incentive and  Non-Qualified  Stock
Option Plan are to attract and retain the best available  personnel,  to provide
additional  incentive to the  Employees,  Consultants  and Outside  Directors of
Pharmos  Corporation,  a Nevada corporation (the "Company"),  and to promote the
success of the Company's business.

     Options granted  hereunder may,  consistent with the terms of this Plan, be
either Incentive Stock Options or Nonstatutory Stock Options,  at the discretion
of the Committee and as reflected in the terms of the written option agreement.

     2.  Definitions.  As used in this Plan,  the  following  definitions  shall
apply:

     (a) "Board" means the Board of Directors of the Company.

     (b) "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder.

     (c)   "Commission"   means  the  United  States   Securities  and  Exchange
Commission.

     (d)  "Committee"  means the  Committee  appointed by the Board or otherwise
determined in accordance with Section 4(a) of this Plan.

     (e) "Common  Stock" means the common stock of the Company,  par value $0.03
per share.

     (f)  "Consultant"  means any person  who is  engaged by the  Company or any
Parent or Subsidiary to render  consulting  services and is compensated for such
consulting  services;  provided  that  the term  Consultant  shall  not  include
directors  who are  not  compensated  for  their  services  or are  paid  only a
director's fee by the Company.

     (g)  "Continuous  Status as an Employee,  Consultant  or Outside  Director"
means the absence of any  interruption or termination of service as an Employee,
Consultant or Outside Director, as applicable. Continuous Status as an Employee,
Consultant or Outside  Director shall not be considered  interrupted in the case
of sick leave or military leave, any other leave provided  pursuant to a written
policy of the Company in effect at the time of determination, or any other leave
of absence  approved by the Board or the Committee;  provided that such leave is
for a period of not more than the greatest of (i) 90 days,  (ii) the date of the
resumption of such service upon the expiration of such leave which is guaranteed
by contract or statute or is provided in a written  policy of the Company  which
was in effect upon the commencement of such leave, or (iii) such period of leave
as may be determined by the Board or the Committee in its sole discretion.

     (h)  "Disinterested  Person"  shall  have  the  meaning  set  forth in Rule
16b-3(d)(3), or any successor definition adopted by the Commission, provided the
person is also an "outside director" under Section 162(m) of the Code.

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     (i)  "Employee"  means any person  employed by the Company or any Parent or
Subsidiary  of the  Company,  including  employees  who  are  also  officers  or
directors or both of the Company or any Parent or Subsidiary of the Company. The
payment of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

     (j) "Exchange  Act" means the  Securities  Exchange Act of 1934, as amended
from time to time, and the rules and regulations promulgated thereunder.

     (k)  "Incentive  Stock  Option"  means an Option  intended to qualify as an
incentive  stock option  within the meaning of Section 422 of the Code,  and the
rules and regulations promulgated thereunder.

     (l) "Nonstatutory  Stock Option" means an Option not intended to qualify as
an Incentive Stock Option.

     (m) "Option" means a stock option granted pursuant to this Plan.

     (n) "Optioned Stock" means the Common Stock subject to an Option.

     (o)  "Optionee"  means an  Employee,  Consultant  or Outside  Director  who
receives an Option.

     (p)  "Outside  Director"  means any member of the Board of Directors of the
Company who is not an Employee or Consultant.

     (q)  "Parent"  means  a  "parent  corporation,"  whether  now or  hereafter
existing, as defined in Section 424(e) of the Code.

     (r) "Plan"  means this  Pharmos  Corporation  1997 Stock  Option  Plan,  as
amended from time to time.

     (s) "Rule 16b-3" means Rule 16b-3,  as promulgated by the Commission  under
Section 16(b) of the Exchange Act, as such rule is amended from time to time and
as interpreted by the Commission.

     (t) "Securities Act" means the Securities Act of 1933, as amended from time
to time, and the rules and regulations promulgated thereunder.

     (u) "Share"  means a share of the Common  Stock,  as adjusted in accordance
with Section 0 of this Plan.

     (v) "Subsidiary" means a "subsidiary corporation," whether now or hereafter
existing, as defined in Section 424(f) of the Code.

     3. Scope of Plan. Subject to the provisions of Section 10 of this Plan, and
unless  otherwise  amended by the Board and approved by the  stockholders of the
Company as required  by law,  the maximum  aggregate  number of Shares  issuable
under this Plan is  1,500,000,  and such  Shares are hereby made  available  and
shall be reserved for issuance under this Plan. The Shares may be authorized but
unissued, or reacquired, Common Stock.

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     If an Option shall expire or become  unexercisable  for any reason  without
having been exercised in full,  the  unpurchased  Shares  subject  thereto shall
(unless this Plan shall have  terminated)  become  available for grants of other
Options under this Plan.

     4. Administration of Plan.

     (a) Procedure.  This Plan shall be administered by the Committee  appointed
pursuant  to this  Section  4(a).  The  Committee  shall  consist of two or more
Outside  Directors  appointed by the Board,  but all  Committee  members must be
Disinterested Persons. If the Board fails to appoint such persons, the Committee
shall consist of all Outside Directors who are Disinterested Persons.

     (b) Powers of  Committee.  Subject  to the  provisions  of this  Plan,  the
Committee  shall have full and final  authority in its  discretion to: (i) grant
Incentive Stock Options and  Nonstatutory  Stock Options,  (ii) determine,  upon
review of relevant  information and in accordance with Section 0 below, the Fair
Market Value of the Common Stock;  (iii)  determine the exercise price per share
of Options to be granted,  in  accordance  with this Plan,  (iv)  determine  the
Employees and Consultants to whom, and the time or times at which, Options shall
be  granted,  and the number of shares to be  represented  by each  Option;  (v)
cancel,  with the  consent of the  Optionee,  outstanding  Options and grant new
Options in substitution therefor;  (vi) interpret this Plan; (vii) accelerate or
defer (with the consent of  Optionee)  the exercise  date of any Option;  (viii)
prescribe,  amend and rescind rules and regulations  relating to this Plan; (ix)
determine  the terms and  provisions of each Option  granted  (which need not be
identical)  by which  Options  shall be evidenced  and,  with the consent of the
holder thereof,  modify or amend any provisions  (including  without  limitation
provisions  relating to the exercise price and the obligation of any Optionee to
sell purchased Shares to the Company upon specified terms and conditions) of any
Option;  (x) require  withholding from or payment by an Optionee of any federal,
state or local taxes; (xi) appoint and compensate agents,  counsel,  auditors or
other  specialists as the Committee deems necessary or advisable;  (xii) correct
any defect or supply any omission or reconcile  any  inconsistency  in this Plan
and any agreement  relating to any Option, in such manner and to such extent the
Committee  determines  to carry  out the  purposes  of this  Plan,  and;  (xiii)
construe and interpret this Plan, any agreement relating to any Option, and make
all other  determinations  deemed by the  Committee to be necessary or advisable
for the administration of this Plan.

     A majority of the Committee shall  constitute a quorum at any meeting,  and
the acts of a majority of the members present,  or acts unanimously  approved in
writing by the  entire  Committee  without a  meeting,  shall be the acts of the
Committee. A member of the Committee shall not participate in any decisions with
respect to himself under this Plan.

     (c) Effect of  Committee's  Decision.  All  decisions,  determinations  and
interpretations of the Committee shall be final and binding on all Optionees and
any other holders of any Options granted under this Plan.

     5. Eligibility.

     (a) Options may be granted to any Employee,  Consultant or Outside Director
as the Committee may from time to time designate,  provided that Incentive Stock
Options may be granted only to Employees.  In selecting the  individuals to whom
Options  shall be  granted,

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 as well as in  determining  the  number of  Options
granted,  the Committee shall take into  consideration  such factors as it deems
relevant in connection with  accomplishing the purpose of this Plan.  Subject to
the  provisions  of Section 0 above,  an Optionee may, if he or she is otherwise
eligible,  be granted an additional  Option or Options if the Committee shall so
determine.

     (b) Each Option  shall be  designated  in the written  option  agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. Notwithstanding
such designations,  if and to the extent that the aggregate Fair Market Value of
the Shares with respect to which Options  designated as Incentive  Stock Options
are  exercisable  for the first time by any Optionee  during any  calendar  year
(under all plans of the Company) exceeds $100,000, such options shall be treated
as Nonstatutory Stock Options.  For purposes of this Section 5(b), Options shall
be taken  into  account  in the order in which  they are  granted,  and the Fair
Market  Value of the Shares shall be  determined  as of the time the Option with
respect to such Shares is granted.

     (c) This Plan shall not confer upon any  Optionee any right with respect to
continuation of employment by or the rendition of services to the Company or any
Parent or Subsidiary, nor shall it interfere in any way with his or her right or
the right of the Company or any Parent or  Subsidiary  to  terminate  his or her
employment  or services at any time,  with or without  cause.  The terms of this
Plan or any  Options  granted  hereunder  shall  not be  construed  to give  any
Optionee the right to any benefits not specifically  provided by this Plan or in
any manner modify the Company's  right to modify,  amend or terminate any of its
pension or retirement plans.

     6. Term of Plan. This Plan shall become  effective upon its adoption by the
Board of Directors of the Company  (such  adoption to include the approval of at
least two  Outside  Directors)  subject to the  approval  thereof by vote of the
holders of a majority  of the  outstanding  shares of the  Company  present,  or
represented,  and  entitled  to vote at a meeting to be duly held in  accordance
with the  applicable  laws of the State of Nevada.  Such  meeting  shall be held
within twelve months of the adoption of the Plan by the Board of Directors.  The
Plan shall  terminate no later than  October 31,  2007.  No grants shall be made
under this Plan after the date of  termination  of this Plan.  Any  termination,
either partially or wholly,  shall not affect any Options then outstanding under
this Plan.

     7. Exercise Price and Consideration.

     (a)  Exercise  Price.  The per Share  exercise  price for the  Shares to be
issued pursuant to exercise of an Option shall be determined by the Committee as
follows:

          (i) In the case of an Incentive  Stock Option granted to any Employee,
     the per Share  exercise price shall be no less than 100% of the Fair Market
     Value per Share on the date of grant, but if granted to an Employee who, at
     the  time  of  the  grant  of  such  Incentive  Stock  Option,  owns  stock
     representing more than ten percent (10%) of the voting power of all classes
     of stock of the Company or any Parent or Subsidiary, the per Share exercise
     price shall be no less than 110% of the Fair Market  Value per Share on the
     date of grant.

          (ii)  With  respect  to (i)  above,  the per Share  exercise  price is
     subject to adjustment as provided in Section 10 below. For purposes of this
     Section  7(a),  if an Option is amended to reduce the exercise  price,  the
     date of grant of such option shall  thereafter be considered to be the date
     of such amendment.

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     (b) Fair Market Value. The "Fair Market Value" of the Common Stock shall be
determined  by the  Committee in its  discretion;  provided,  that if the Common
Stock is listed on a stock  exchange,  the Fair Market  Value per Share shall be
the  closing  price on such  exchange  on the date of  grant  of the  Option  as
reported in the Wall Street  Journal (or,  (i) if not so reported,  as otherwise
reported by the exchange, and (ii) if not reported on the date of grant, then on
the last prior date on which a sale of the Common Stock was reported); or if not
listed on an  exchange  but traded on the  National  Association  of  Securities
Dealers Automated  Quotation SmallCap Market System ("NASDAQ"),  the Fair Market
Value per Share shall be the closing price per share of the Common Stock for the
date of  grant,  as  reported  in the Wall  Street  Journal  (or,  (i) if not so
reported,  as otherwise reported by NASDAQ, and (ii) if not reported on the date
of grant,  then on the last prior  date on which a sale of the Common  Stock was
reported); or, if the Common Stock is otherwise publicly traded, the mean of the
closing bid price and asked price for the last known sale.

     (c) Consideration. The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the  Committee  (and in the  case of an  Incentive  Stock  Option,  shall  be
determined  at the time of grant) and may  consist  entirely  of (i) cash;  (ii)
check; (iii) the Optionee's  personal interest bearing full recourse  promissory
note with such terms and  provisions as the  Committee  may authorize  (provided
that no person who is not an Employee of the Company may purchase  Shares with a
promissory  note);  (iv) other Shares of Common Stock which (X) either have been
owned by the  Optionee  for more than six (6) months on the date of surrender or
were not acquired  directly or indirectly from the Company,  and (Y) have a Fair
Market  Value  on the  date  of  surrender  (determined  without  regard  to any
limitations  on  transferability  imposed  by  securities  laws)  equal  to  the
aggregate  exercise  price  of the  Shares  as to  which  said  Option  shall be
exercised;  (v) any  combination of such methods of payment;  or (vi) such other
consideration  and method of payment  for the  issuance  of Shares to the extent
permitted under applicable laws.

     (d) Withholding. No later than the date as of which an amount first becomes
includable  in the gross income of the Optionee for Federal  income tax purposes
with  respect to an option,  the  Optionee  shall pay to the  Company  (or other
entity identified by the Committee),  or make  arrangements  satisfactory to the
Company or other entity  identified by the  Committee  regarding the payment of,
any Federal,  state,  local or foreign  taxes of any kind  required by law to be
withheld with respect to such amount required in order for the Company to obtain
a current deduction.  Unless otherwise determined by the Committee,  withholding
obligations may be settled with Common Stock,  including Common Stock underlying
the subject option,  provided that any applicable  requirements under Section 16
of the  Exchange  Act are  satisfied so as to avoid  liability  thereunder.  The
obligations  of the  Company  under  this Plan  shall be  conditional  upon such
payment or arrangements,  and the Company shall, to the extent permitted by law,
have the right to deduct any such taxes from any  payment  otherwise  due to the
Optionee.

     8. Options.

     (a) Term of Option.  The term of each Option  granted shall be for a period
of no more than ten (10)  years from the date of grant  thereof or such  shorter
term as may be  provided  in the Option  agreement.  However,  in the case of an
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing  more than ten percent  (10%) of the voting power of all classes of
stock of the Company or any Parent or  Subsidiary,  the term of the Option shall
be five (5) years from the date of grant  thereof or such shorter time as may be
provided in the Option Agreement.

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     (b) Exercise of Options.

     (i) Procedure for Exercise;  Rights as a  Stockholder.  Any Option  granted
under this Plan shall be exercisable at such times and under such  conditions as
determined by the Committee,  including performance criteria with respect to the
Company and/or the Optionee,  and as shall  otherwise be  permissible  under the
terms of this Plan.

     An Option may not be exercised for a fraction of a Share.

     An Option  shall be  deemed to be  exercised  when  written  notice of such
exercise  has been  given to the  Company  in  accordance  with the terms of the
Option by the person  entitled to exercise  the Option and full  payment for the
Shares with  respect to which the Option is exercised  has been  received by the
Company.  Full  payment  may, as  authorized  by the  Committee,  consist of any
consideration  and method of  payment  allowable  under  Section 7 of this Plan.
Until the issuance (as  evidenced by the  appropriate  entry on the books of the
Company or of a duly  authorized  transfer  agent of the  Company)  of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a  stockholder  shall exist with respect to the Optioned  Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock  certificate  promptly upon exercise of the Option. If the
exercise of an Option is treated in part as the exercise of an  Incentive  Stock
Option and in part as the exercise of a Nonstatutory  Stock Option,  the Company
shall  issue a separate  stock  certificate  evidencing  the  Shares  treated as
acquired  upon  exercise  of an  Incentive  Stock  Option and a  separate  stock
certificate  evidencing  the  Shares  treated as  acquired  upon  exercise  of a
Nonstatutory  Stock Option and shall identify each such certificate  accordingly
in its stock  transfer  records.  No  adjustment  will be made for a dividend or
other right for which the record date is prior to the date the stock certificate
is issued, except as provided in Section 0 of this Plan.

     Exercise  of an Option in any  manner  shall  result in a  decrease  in the
number of Shares which  thereafter  may be available,  both for purposes of this
Plan and for sale  under  the  Option,  by the  number of Shares as to which the
Option is exercised.

     (ii) Method of Exercise. An Optionee may exercise an Option, in whole or in
part,  at any time during the option  period by the  Optionee's  giving  written
notice of exercise on a form  provided by the  Committee  (if  available) to the
Company specifying the number of shares of Common Stock subject to the Option to
be  purchased.  Such  notice  shall be  accompanied  by  payment  in full of the
purchase price by cash or check or such other form of payment as the Company may
accept.  If  approved by the  Committee,  payment in full or in part may also be
made (A) by delivering Common Stock already owned by the Optionee having a total
Fair Market Value on the date of such  delivery  equal to the exercise  price of
the  subject  Option;  (B) by the  execution  and  delivery  of a note or  other
evidence of indebtedness (and any security agreement thereunder) satisfactory to
the Committee;  (C) by authorizing  the Company to retain shares of Common Stock
which would  otherwise be issuable  upon  exercise of the Option  having a total
Fair Market  Value on the date of delivery  equal to the  exercise  price of the
subject  Option;  (D) by the  delivery  of cash by a  broker-dealer  to whom the
Optionee has submitted an  irrevocable  notice of exercise (in  accordance  with
Part 220,  Chapter II,  Title 12 of the Code of Federal  Regulations,  so-called
"cashless" exercise); or (E) by any combination of the foregoing. In

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the case of an Incentive  Stock Option,  the right to make a payment in the form
of already  owned  shares of Common  Stock of the same class as the Common Stock
subject to the Option may be authorized  only at the time the Option is granted.
No shares of Common Stock shall be issued  until full payment  therefor has been
made. An Optionee  shall have all of the rights of a stockholder  of the Company
holding the class of Common Stock that is subject to such Option (including,  if
applicable,  the right to vote the shares  and the right to receive  dividends),
when the Optionee  has given  written  notice of exercise,  has paid in full for
such  shares  and such  shares  have been  recorded  on the  Company's  official
stockholder records as having been issued or transferred.

     (iii) Termination of Status as an Employee, Consultant or Outside Director.
If an  Optionee's  Continuous  Status  as an  Employee,  Consultant  or  Outside
Director  (as the case  may be) is  terminated  for any  reason  whatever,  such
Optionee  may,  but only  within  such  period of time as provided in the Option
agreement,  after the date of such  termination  (but in no event later than the
date of  expiration  of the  term of such  Option  as set  forth  in the  Option
agreement and  determined by the  Committee),  exercise the Option to the extent
that such Employee,  Consultant or Outside  Director was entitled to exercise it
at the date of such termination  pursuant to the terms of the Option  agreement.
To the  extent  that such  Employee,  Consultant  or  Outside  Director  was not
entitled  to  exercise  the Option at the date of such  termination,  or if such
Employee,  Consultant  or Outside  Director does not exercise such Option (which
such Employee,  Consultant or Outside  Director was entitled to exercise) within
the time specified in the Option agreement, the Option shall terminate.

     (iv) Company Loan or Guarantee. Upon the exercise of any Option and subject
to the pertinent  Option  agreement and the  discretion  of the  Committee,  the
Company  may at the  request of the  Optionee;  (A) lend to the  Optionee,  with
recourse,  an amount equal to such portion of the option  exercise  price as the
Committee may determine; or (B) guarantee a loan obtained by the Optionee from a
third-party for the purpose of tendering the option exercise price.

     9. Non-transferability of Options. An Option granted hereunder shall by its
terms not be sold, pledged, assigned, hypothecated,  transferred, or disposed of
in any manner  other than by will or the laws of descent  and  distribution.  An
Option may be exercised during the Optionee's lifetime only by the Optionee.

     10. Adjustments Upon Changes in Capitalization or Merger.

     (a)  Capitalization.  Subject to any required action by the stockholders of
the Company, the number of shares of Common Stock which have been authorized for
issuance  under  this Plan but as to which no Options  have yet been  granted or
which have been  returned to this Plan upon  cancellation  or  expiration  of an
Option,  and the number of shares of Common  Stock  subject to each  outstanding
Option,  as well as the price per share of  Common  Stock  covered  by each such
outstanding  Option,  shall be  proportionately  adjusted  for any  increase  or
decrease in the number of issued shares of Common Stock  resulting  from a stock
split,  reverse stock split, stock dividend,  combination or reclassification of
the Common Stock of the Company or the payment of a stock  dividend with respect
to the Common Stock.  Except as expressly  provided  herein,  no issuance by the
Company of shares of stock of any class, or securities  convertible  into shares
of stock of any class,  shall affect,  and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common  Stock  subject
to an Option.

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     (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company,  each Option will terminate immediately prior to the
consummation  of  such  proposed  action,   unless  otherwise  provided  by  the
Committee.  The  Committee  may, in the exercise of its sole  discretion in such
instances,  declare  that any Option  shall  terminate as of a date fixed by the
Committee  and give each  Optionee the right to exercise his or her Option as to
all or any part of the Optioned Stock,  including  Shares as to which the Option
would not otherwise be exercisable.

     (c)  Sale or  Merger.  "Sale"  means:  (i) sale  (other  than a sale by the
Company)  of  securities  entitled  to more than 75% of the voting  power of the
Company in a single  transaction  or a related series of  transactions;  or (ii)
sale of substantially all of the assets of the Company; or (iii) approval by the
stockholders of the Company of a reorganization,  merger or consolidation of the
Company,  as a result  of which the  persons  who were the  stockholders  of the
Company immediately prior to such reorganization, merger or consolidation do not
own securities  immediately  after the  reorganization,  merger or consolidation
entitled  to more than 50% of the  voting  power of the  reorganized,  merged or
consolidated  company.  Immediately  prior to a Sale, each Optionee may exercise
his or her Option as to all Shares then subject to the Option, regardless of any
vesting conditions  otherwise expressed in the Option.  Voting power, as used in
this Section 10(c),  shall refer to those securities  entitled to vote generally
in the election of directors, and securities of the Company not entitled to vote
but which are convertible  into, or exercisable  for,  securities of the Company
entitled to vote  generally in the election of directors  shall be counted as if
converted or exercised,  and each unit of voting  securities shall be counted in
proportion to the number of votes such unit is entitled to cast.

     (d) Purchased  Shares.  No adjustment  under this Section 10 shall apply to
any purchased  Shares  already  deemed issued at the time any  adjustment  would
occur.

     (e) Notice of  Adjustments.  Whenever the  purchase  price or the number or
kind of  securities  issuable  upon the exercise of the Option shall be adjusted
pursuant to Section  10, the Company  shall give each  Optionee  written  notice
setting forth, in reasonable  detail,  the event  requiring the adjustment,  the
amount  of  the  adjustment,  and  the  method  by  which  such  adjustment  was
calculated.

     (f)  Certain  Cash  Payments.  If an  Optionee  would not be  permitted  to
exercise an Option or any portion  thereof (for purposes of this  subsection (f)
only,  each such Option being  referred to as a "Subject  Option") or dispose of
the Shares received upon the exercise  thereof without loss or liability  (other
than a loss or liability for the exercise price,  applicable  withholding or any
associated transactional cost), or if the Board determines that the Optionee may
not be permitted  to exercise the same rights or receive the same  consideration
with  respect to the Sale of the Company as a  stockholder  of the Company  with
respect to any Subject  Options or portion  thereof or the Shares  received upon
the exercise thereof,  then notwithstanding any other provision of this Plan and
unless the Committee shall provide  otherwise in an agreement with such Optionee
with respect to any Subject Options, such Optionee shall have the right, whether
or not the Subject Option is fully  exercisable or may be otherwise  realized by
the Optionee, by giving notice during the 60-day period from and after a Sale to
the  Company,  to elect to surrender  all or part of any Subject  Options to the
Company and to receive cash,  within 30 days of such notice,  in an amount equal
to the amount by which the "Sale Price" (as defined  herein) per share of Common
Stock on the date of such  election  shall  exceed the amount which the Optionee
must pay to exercise  the Subject  Options per share of Common  Stock under such
Subject

                                       8
<PAGE>

Options  (the  "Spread")  multiplied  by the  number of  shares of Common  Stock
granted under the Subject Options as to which the right granted  hereunder shall
be applicable and shall have been exercised;  provided, however, that if the end
of such 60-day  period from and after a Sale is within six months of the date of
grant of a Subject  Option  held by an  Optionee  (except  an  Optionee  who has
deceased  during  such six month  period)  who is an officer or  director of the
Company  (within the meaning of Section 16(b) of the Exchange Act), such Subject
Option shall be canceled in exchange for a payment to the Optionee, effective on
the day which is six months and one day after the date of grant of such  Subject
Option,  equal to the Spread  multiplied by the number of shares of Common Stock
granted under the Subject Option. With respect to any Optionee who is an officer
or director of the Company  (within the meaning of Section 16(b) of the Exchange
Act), the 60-day period shall be extended, if necessary,  to include the "window
period" of Rule 16(b)-3 which first  commences on or after the date of the Sale,
and the  Committee  shall have sole  discretion,  if  necessary,  to approve the
Optionee's exercise hereunder and the date on which the Spread is calculated may
be adjusted,  if necessary,  to a later date if necessary to avoid  liability to
such Optionee under Section 16(b).  For purposes of the Plan, "Sale Price" means
the higher of (a) the highest reported sales price of a share of Common Stock in
any  transaction  reported  on the  principal  exchange on which such shares are
listed or on NASDAQ  during the 60-day period prior to and including the date of
a Sale or (b) if the Sale is the  result  of a  tender  or  exchange  offer or a
corporate transaction,  the highest price per share of Common Stock paid in such
tender or exchange offer or a corporate transaction, except that, in the case of
Incentive Stock Options, such price shall be based only on the Fair Market Value
of the Common Stock on the date such Incentive Stock Option is exercised. To the
extent  that the  consideration  paid in any such  transaction  described  above
consists all or in part of securities or other non-cash consideration, the value
of such  securities or other non-cash  consideration  shall be determined in the
sole discretion of the Committee.

     (g)  Mitigation  of Excise  Tax.  If any  payment or right  accruing  to an
Optionee under this Plan (without the application of this Section), either alone
or together  with other  payments or rights  accruing to the  Optionee  from the
Company  or an  affiliate  ("Total  Payments")  would  constitute  a  "parachute
payment"  (as defined in Section 280G of the Code and  regulations  thereunder),
the  Committee  may in each  particular  instance  determine  to (i) reduce such
payment or right to the largest  amount or greatest right that will result in no
portion of the amount  payable or right accruing under the Plan being subject to
an excise tax under Section 4999 of the Code or being  disallowed as a deduction
under  Section 280G of the Code, or (ii) take such other  actions,  or make such
other  arrangements or payments with respect to any such payment or right as the
Committee may determine in the circumstances.  Any such  determination  shall be
made  by the  Committee  in  the  exercise  of its  sole  discretion,  and  such
determination  shall be  conclusive  and binding on the  Optionee.  The Optionee
shall  cooperate  as may be requested by the  Committee in  connection  with the
Committee's   determination,   including   providing  the  Committee  with  such
information  concerning  such Optionee as the Committee may deem relevant to its
determination.

     11. Time of Granting Options. The date of grant of an Option shall, for all
purposes,  be the date on which the Committee makes the  determination  granting
such  Option.  Notice  of the  determination  shall be  given to each  Employee,
Consultant  or  Outside  Director  to whom an  Option  is so  granted  within  a
reasonable time after the date of such grant. If the Committee cancels, with the
consent of Optionee,  any Option  granted  under this Plan,  and a new Option is
substituted  therefor,  the date that the canceled Option was originally granted
shall be the date used to determine  the earliest  date for  exercising  the new
substituted  Option  under  Section  7 so that the  Optionee  may  exercise  the
substituted

                                       9
<PAGE>

Option at the same time as if the Optionee had held the substituted Option since
the date the canceled Option was granted.

     12. Amendment and Termination of Plan.

     (a) Amendment and Termination.  The Board or the Committee may amend, waive
or  terminate  this  Plan from time to time in such  respects  as it shall  deem
advisable;  provided that, to the extent  necessary to comply with Rule 16b-3 or
with  Section  422 of the Code (or any  other  successor  or  applicable  law or
regulation), the Company shall obtain stockholder approval of any Plan amendment
in such a manner and to such a degree as is required by the applicable law, rule
or regulation.

     (b) Effect of Amendment or  Termination.  Any such amendment or termination
of this Plan shall not affect  Options  already  granted and such Options  shall
remain  in full  force  and  effect  as if this  Plan  had not been  amended  or
terminated,  unless  mutually  agreed  otherwise  between the  Optionee  and the
Committee, which agreement must be in writing and signed by the Optionee and the
Company.

     13. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant
to the exercise of an Option unless the exercise of such Option and the issuance
and  delivery of such Shares  pursuant  thereto  shall  comply with all relevant
provisions  of law,  including,  without  limitation,  the  Securities  Act, the
Exchange  Act, and the rules and  regulations  promulgated  thereunder,  and the
requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

     As a condition  to the  exercise of an Option,  the Company may require the
person  exercising  such Option to represent and warrant at the time of any such
exercise 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 of the
aforementioned relevant provisions of law.

     14. Restrictions on Shares.  Shares of Common Stock issued upon exercise of
an Option shall be subject to the terms and conditions  specified  herein and to
such other terms, conditions and restrictions as the Committee in its discretion
may  determine  or provide in the grant.  The  Company  shall not be required to
issue or deliver  any  certificates  for shares of Common  Stock,  cash or other
property prior to (a) the listing of such shares on any stock exchange (or other
public  market)  on which the  Common  Stock may then be  listed  (or  regularly
traded),  (b) the completion of any registration or qualification of such shares
under federal or state law, or any ruling or regulation of any  government  body
which  the  Committee  determines  to be  necessary  or  advisable,  and (c) the
satisfaction of any applicable  withholding  obligation in order for the Company
or an affiliate to obtain a deduction with respect to the exercise of an Option.
The  Company  may cause  any  certificate  for any  share of Common  Stock to be
delivered to be properly  marked with a legend or other notation  reflecting the
limitations  on transfer of such Common Stock as provided in this Plan or as the
Committee may otherwise require. The Committee may require any person exercising
an Option to make such  representations  and furnish such  information as it may
consider  appropriate in connection  with the issuance or delivery of the shares
of Common Stock in  compliance  with  applicable  law or  otherwise.  Fractional
shares  shall not be  delivered,  but shall be rounded  to the next lower  whole
number of shares.

                                       10
<PAGE>

     15. Stockholder Rights. No person shall have any rights of a stockholder as
to shares of Common Stock subject to an Option until,  after proper  exercise of
the Option or other action required, such shares shall have been recorded on the
Company's  official  stockholder  records as having been issued or  transferred.
Subject to the preceding  Section and upon exercise of the Option or any portion
thereof,  the  Company  will have thirty (30) days in which to issue the shares,
and the Optionee will not be treated as a stockholder for any purpose whatsoever
prior to such issuance.  No adjustment shall be made for cash dividends or other
rights for which the record date is prior to the date such  shares are  recorded
as issued or transferred in the Company's official stockholder  records,  except
as provided herein or in an agreement.

     16. Best  Efforts To  Register.  If there has been a public  offering,  the
Company may register  under the  Securities  Act the Common  Stock  delivered or
deliverable  pursuant  to Options on  Commission  Form S-8 if  available  to the
Company  for  this  purpose  (or  any  successor  or  alternate   form  that  is
substantially  similar  to that form to the  extent  available  to  effect  such
registration),  in  accordance  with the rules and  regulations  governing  such
forms,  as soon as such forms are available for  registration to the Company for
this purpose. The Company will, if it so determines,  use its good faith efforts
to cause the registration  statement to become effective as soon as possible and
will file such supplements and amendments to the  registration  statement as may
be necessary to keep the registration  statement in effect until the earliest of
(a) one year  following  the  expiration of the option period of the last Option
outstanding, (b) the date the Company is no longer a reporting company under the
Exchange  Act and  (c) the  date  all  Optionees  have  disposed  of all  shares
delivered pursuant to any Option. The Company may delay the foregoing actions at
any time and from time to time if the  Committee  determines  in its  discretion
that any such  registration  would materially and adversely affect the Company's
interests or if there is no material benefit to Optionees.

     17. Reservation of Shares. The Company,  during the term of this Plan, will
at all  times  reserve  and keep  available  such  number  of Shares as shall be
sufficient  to permit the exercise of all Options  outstanding  under this Plan.
The inability of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company's counsel to be necessary
to the lawful  issuance  and sale of any Shares  hereunder,  shall  relieve  the
Company of any  liability in respect of the failure to issue or sell such Shares
as to which  such  requisite  authority  shall  not have been  obtained  for any
reason.

     18.  Option  Agreements.  Options  shall be  evidenced  by  written  Option
agreements in such form as the Committee shall approve.

     19. Information to Optionees. To the extent required by applicable law, the
Company  shall  provide  to each  Optionee,  during  the  period  for which such
Optionee has one or more Options  outstanding,  copies of all annual reports and
other information which are provided to all stockholders of the Company.  Except
as  otherwise  noted  in the  foregoing  sentence,  the  Company  shall  have no
obligation or duty to  affirmatively  disclose to any Optionee,  and no Optionee
shall have any right to be advised of, any material  information  regarding  the
Company or any Parent or  Subsidiary  at any time prior to, upon or otherwise in
connection with, the exercise of an Option.

     20. Funding.  Benefits  payable under this Plan to any person shall be paid
directly by the Company.  The Company shall not be required to fund or otherwise
segregate assets to be used for payment of benefits under this Plan.

                                       11
<PAGE>

     21. Indemnification. In addition to such other rights of indemnification as
they may have as  directors or as members of the  Committee,  the members of the
Committee shall be indemnified by the Company  against the reasonable  expenses,
including  attorneys' fees, actually and necessarily incurred in connection with
the defense of any action, suit or proceeding,  or in connection with any appeal
therein,  to which  they or any of them may be a party by reason  of any  action
taken or  failure  to act under or in  connection  with this Plan or any  option
granted  hereunder,  and against all amounts paid by them in settlement  thereof
(provided such settlement is approved by independent  legal counsel  selected by
the Company) or paid by them in  satisfaction  of a judgment in any such action,
suit or proceeding;  provided that within 60 days after  institution of any such
action, suit or proceeding a Committee member shall in writing offer the Company
the  opportunity,  at its own  expense,  to handle  and  defend  the  same.  The
foregoing  right  of  indemnification  shall  not  be  exclusive  and  shall  be
independent of any other rights of  indemnification to which such persons may be
entitled  under the  Company's  Certificate  of  Incorporation  or  by-laws,  by
contract, as a matter of law, or otherwise.

     22.  Controlling  Law. This Plan shall be governed by the laws of the State
of Nevada  applicable to contracts  made and performed  wholly in Nevada between
Nevada residents.

                                       12

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