Document:

SI Daimond OLDER REG Rights

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of October 25, 2001, by and among Cyber Law Reporter, Inc., a corporation duly incorporated and existing under the laws of the State of Texas (the "Company"), and the Investor as named on the signature page hereto (hereinafter referred to as "Investor").

RECITALS:

WHEREAS, pursuant to the Company's offering ("Offering") of up to $20,000,000  excluding any funds paid upon exercise of the Warrants, of Common Stock of the Company pursuant to the Investment Agreement between the Company and the Investor, the Company has agreed to sell and the Investor has agreed to purchase, from time to time as provided in the Investment Agreement, shares of the Company's Common Stock for a maximum aggregate offering amount of $20,000,000;

WHEREAS, under the terms of the Investment Agreement, the Company has agreed to issue to the Investor Warrants defined in the Investment Agreement, to purchase a number of shares of Common Stock, exercisable for five (5) years from their date of issuance (the “Warrants”); and

WHEREAS, pursuant to the terms of the Investment Agreement, the Company has agreed to provide the Investor with certain registration rights with respect to the Common Stock to be issued in the Offering and the Common Stock issuable upon exercise of the Warrants as set forth in this Agreement. 

TERMS:

NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and conditions set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.

Certain Definitions.  As used in this Agreement (including the Recitals above), the following terms shall have the following meanings (such meanings to be equally applicable to both singular and plural forms of the terms defined):

“Business Day” shall have the meaning set forth in the Investment Agreement.

“Closing Bid Price” shall have the meaning set forth in the Investment Agreement.”

“Common Stock” shall mean the common stock of the Company.

“Due Date” shall mean the date that is one hundred eighty (180) days after the date of this Agreement.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

“Filing Deadline” shall mean the date that is one hundred (100) days after the date of this Agreement.

"Holder" shall mean Investor, and any other person or entity owning or having the right to acquire Registerable Securities or any permitted assignee;

“Put” shall have the meaning as set forth in the Investment Agreement.

"Register," "Registered," and "Registration" shall mean and refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule, and the declaration or ordering of effectiveness of such registration statement or document.

“Securities Act” shall mean the Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

“Warrant Shares” shall mean shares of Common Stock issuable upon exercise of any Warrant.

2.

Required Registration. 

2.1

Registerable Securities.  “Registerable Securities” shall mean those shares of the Common Stock of the Company together with any capital stock issued in replacement of, in exchange for or otherwise in respect of such Common Stock, that are: (i) issuable or issued to the Investor pursuant to the Investment Agreement, and (ii) issuable or issued upon exercise of the Warrants; provided, however, that notwithstanding the above, the following shall not be considered Registerable Securities:

Any Common Stock which would otherwise be deemed to be Registerable Securities, if and to the extent that those shares of Common Stock may be resold in a public transaction without volume limitations or other material restrictions without registration under the Securities Act, including without limitation, pursuant to Rule 144 under the Securities Act.

2.2

Filing of Initial Registration Statement.  The Company shall, by the Filing Deadline, file a registration statement ("Registration Statement") on Form S-3 (or other suitable form, at the Company's discretion, but subject to the reasonable approval of Investor), covering the resale of a number of shares of Common Stock as Registerable Securities equal to at least 5,000,000 shares of Common Stock and shall cover, to the extent allowed by applicable law, such indeterminate number of additional shares of Common Stock that may be issued or become issuable as Registerable Securities by the Company pursuant to Rule 416 of the Securities Act.  In the event that the Company has not filed the Registration Statement by the Filing Deadline, then the Company shall pay to Investor an amount equal to $500, in cash, for each Business Day after the Filing Deadline until such Registration Statement is filed, payable within ten (10) Business Days following the end of each calendar month in which such payments accrue.

2.3

Registration Effective Date.  The Company shall use its best efforts to have the Registration Statement declared effective by the SEC (the date of such effectiveness is referred to herein as the “Effective Date”) by the Due Date.

2.4

Shelf Registration.  The Registration Statement shall be prepared as a "shelf" registration statement under Rule 415, and shall be maintained effective until all Registerable Securities are resold pursuant to the Registration Statement.

2.5

Supplemental Registration Statement.  Anytime the Registration Statement does not cover a sufficient number of shares of Common Stock to cover all outstanding Registerable Securities, the Company shall promptly prepare and file with the SEC such Supplemental Registration Statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all such Registerable Securities and shall use its best efforts to cause such Supplemental Registration Statement to be declared effective as soon as possible.

3.

Obligations of the Company.  Whenever required under this Agreement to effect the registration of any Registerable Securities, the Company shall, as expeditiously as possible:

(a)  Prepare and file with the Securities and Exchange Commission (“SEC”) a Registration Statement with respect to such Registerable Securities and use its best efforts to cause such Registration Statement to become effective and to remain effective until all Registerable Securities are resold pursuant to such Registration Statement, notwithstanding any Termination or Automatic Termination (as each is defined in the Investment Agreement) of the Investment Agreement.

(b)  Prepare and file with the SEC such amendments and supplements to such Registration Statement and the prospectus used in connection with such Registration Statement (“Amended Registration Statement”) or prepare and file any additional registration statement (“Additional Registration Statement,” together with the Amended Registration Statement, “Supplemental Registration Statements”) as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Supplemental Registration Statements or such prior registration statement and to cover the resale of all Registerable Securities.

(c)  Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registerable Securities owned by them.

(d)  Use its best efforts to register and qualify the securities covered by such Registration Statement under such other securities or Blue Sky laws of the jurisdictions in which the Holders are located, of such other jurisdictions as shall be reasonably requested by the Holders of the Registerable Securities covered by such Registration Statement and of all other jurisdictions where legally required, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

(e)  As promptly as practicable after becoming aware of such event, notify each Holder of Registerable Securities of the happening of any event of which the Company has knowledge, as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, use its best efforts promptly to prepare a supplement or amendment to the Registration Statement to correct such untrue statement or omission, and deliver a number of copies of such supplement or amendment to each Holder as such Holder may reasonably request.

(f)  Provide Holders with notice of the date that a Registration Statement or any Supplemental Registration Statement registering the resale of the Registerable Securities is declared effective by the SEC, and the date or dates when the Registration Statement is no longer effective.

(g)  Provide Holders and their representatives the opportunity and a reasonable amount of time, based upon reasonable notice delivered by the Company, to conduct a reasonable due diligence inquiry of Company’s pertinent financial and other records and make available its officers and directors for questions regarding such information as it relates to information contained in the Registration Statement.

(h)  Provide Holders and their representatives the opportunity to review the Registration Statement and all amendments or supplements thereto prior to their filing with the SEC by giving the Holder at least ten (10) business days advance written notice prior to such filing.

(i)  Provide each Holder with prompt notice of the issuance by the SEC or any state securities commission or agency of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceeding for such purpose.  The Company shall use its best efforts to prevent the issuance of any stop order and, if any is issued, to obtain the removal thereof at the earliest possible date.

(j)  Use its best efforts to list the Registerable Securities covered by the Registration Statement with all securities exchanges or markets on which the Common Stock is then listed and prepare and file any required filing with the NASD, American Stock Exchange, NYSE and any other exchange or market on which the Common Stock is listed.

4.

Piggyback Registration.  If anytime prior to the date that the Registration Statement is declared effective or during any Ineffective Period (as defined in the Investment Agreement) the Company proposes to register (including for this purpose a registration effected by the Company for shareholders other than the Holders) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than a registration relating solely for the sale of securities to participants in a Company stock plan or a registration on Form S-4 promulgated under the Securities Act or any successor or similar form registering stock issuable upon a reclassification, upon a business combination involving an exchange of securities or upon an exchange offer for securities of the issuer or another entity), the Company shall, at such time, promptly give each Holder written notice of such registration (a “Piggyback Registration Statement”).  Upon the written request of each Holder given by fax within ten (10) days after mailing of such notice by the Company, the Company shall cause to be included in such registration statement under the Securities Act all of the Registerable Securities that each such Holder has requested to be registered (“Piggyback Registration”) to the extent such inclusion does not violate the registration rights of any other security holder of the company granted prior to the date hereof; provided, however, that nothing herein shall prevent the Company from withdrawing or abandoning such registration statement prior to its effectiveness.

5.

Limitation on Obligations to Register under a Piggyback Registration.  In the case of a Piggyback Registration pursuant to an underwritten public offering by the Company, if the managing underwriter determines and advises in writing that the inclusion in the related Piggyback Registration Statement of all Registerable Securities proposed to be included would interfere with the successful marketing of the securities proposed to be registered by the Company, then the number of such Registerable Securities to be included in such Piggyback Registration Statement, to the extent any such Registerable Securities may be included in such Piggyback Registration Statement, shall be allocated among all Holders who had requested Piggyback Registration pursuant to the terms hereof, in the proportion that the number of Registerable Securities which each such Holder seeks to register bears to the total number of Registerable Securities sought to be included by all Holders. If required by the managing underwriter of such an underwritten public offering, the Holders shall enter into an agreement limiting the number of Registerable Securities to be included in such Piggyback Registration Statement and the terms, if any, regarding the future sale of such Registerable Securities.

6.

Dispute as to Registerable Securities.  In the event the Company believes that shares sought to be registered under Section 2 or Section 4 by Holders do not constitute “Registerable Securities” by virtue of Section 2.1 of this Agreement, and the status of those shares as Registerable Securities is disputed, the Company shall provide, at its expense, an Opinion of Counsel, reasonably acceptable to the Holders of the Securities at issue (and satisfactory to the Company’s transfer agent to permit the sale and transfer), that those securities may be sold immediately, without volume limitation or other material restrictions, without registration under the Securities Act, by virtue of Rule 144 or similar provisions.

7.

Furnish Information.  At the Company’s request, each Holder shall furnish to the Company such information regarding Holder, the Registerable Securities held by it, and the intended method of disposition of such securities to the extent required to effect the registration of its Registerable Securities or to determine that registration is not required pursuant to Rule 144 or other applicable provision of the Securities Act.  The Company shall include all information provided by such Holder pursuant hereto in the Registration Statement, substantially in the form supplied, except to the extent such information is not permitted by law.

8.

Expenses.  All expenses, other than commissions and fees and expenses of counsel to the selling Holders, incurred in connection with registrations, filings or qualifications pursuant hereto, including (without limitation) all registration, filing and qualification fees, printers' and accounting fees, fees and disbursements of counsel for the Company, shall be borne by the Company.

9.

Indemnification.  In the event any Registerable Securities are included in a Registration Statement under this Agreement:

(a) 

To the extent permitted by law, the Company will indemnify and hold harmless each Holder, the officers, directors, members, partners, legal counsel, and accountants of each Holder, any underwriter (as defined in the Securities Act, or as deemed by the Securities Exchange Commission, or as indicated in a registration statement) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of Section 15 of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements or omissions: (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, or (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, and the Company will reimburse each such Holder, officer, member, partner, legal counsel, accountant, director, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, officer, director, underwriter or controlling person; provided however, that the above shall not relieve the Company from any other liabilities which it might otherwise have.

(b) 

Each Holder of any securities included in such registration being effected shall indemnify and hold harmless the Company, its directors and officers, each underwriter and each other person, if any, who controls (within the meaning of the Securities Act) the Company or such other indemnified party, against any liability, joint or several, to which any such indemnified party may become subject under the Securities Act or any other statute or at common law, insofar as such liability (or actions in respect thereof) arises out of or is based upon any omission or alleged omission by such Holder to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in such registration statement, preliminary or final prospectus, amendment or supplement thereto in reliance upon and in conformity with information furnished in writing to the Company by such Holder specifically for use therein.  Such Holder shall reimburse any indemnified party for any legal fees incurred in investigating or defending any such liability; provided, however, that such Holder’s obligations hereunder shall be limited to an amount equal to the proceeds to such Holder of the securities sold in any such registration; and provided further, that no Holder shall be required to indemnify any party against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any liability which arises out of the failure of such party to deliver a prospectus as required by the Securities Act.

(c)

Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume, the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the reasonably incurred fees and expenses of one such counsel to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflicting interests between such indemnified party and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 9, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 9.

(d)

In the event that the indemnity provided in paragraphs (a) and/or (b) of this Section 9 is unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company and each Holder agree to contribute to the aggregate claims, losses, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively “Losses”) to which the Company and one or more of the Holders may be subject in such proportion as is appropriate to reflect the relative fault of the Company and the Holders in connection with the statements or omissions which resulted in such Losses.  Relative fault shall be determined by reference to whether any alleged untrue statement or omission relates to information provided by the Company or by the Holders.  The Company and the Holders agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation that does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 9, each person who controls a Holder of Registerable Securities within the meaning of either the Securities Act or the Exchange Act and each director, officer, director, partner, employee and agent of a Holder shall have the same rights to contribution as such holder, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act and each director and officer of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

(e)

The obligations of the Company and Holders under this Section 9 shall survive the resale, if any, of the Common Stock, the completion of any offering of Registerable Securities in a Registration Statement under this Agreement, and otherwise.

10.

Reports Under Exchange Act.  With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration, the Company agrees to:

(a)

make and keep public information available, as those terms are understood and defined in Rule 144; and

(b)

use its best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act.

11.

Amendment of Registration Rights.  Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the written consent of each Holder affected thereby.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder, each future Holder, and the Company.

12.

Notices.  All notices required or permitted under this Agreement shall be made in writing signed by the party making the same, shall specify the section under this Agreement pursuant to which it is given, and shall be addressed if to:

The Company at: 1207 Wisterwood, Houston, Texas 77043; 

(or at such other location as directed by the Company in writing) 

The Holders at Goldbridge Capital, LLC., 1240 Blalock Road, Suite 150, Houston, Texas, 77055 or their last address as shown on the records of the Company.  Any notice, except as otherwise provided in this Agreement, shall be made by fax and shall be deemed given at the time of transmission of the fax.

13.

Termination.  This Agreement shall terminate on the date all Registerable Securities cease to exist (as that term is defined in Section 2.1 hereof); but without prejudice to (i) the parties' rights and obligations arising from breaches of this Agreement occurring prior to such termination (ii) other indemnification obligations under this Agreement.

14.

Assignment.  No assignment, transfer or delegation, whether by operation of law or otherwise, of any rights or obligations under this Agreement by the Company or any Holder, respectively, shall be made without the prior written consent of the majority in interest of the Holders or the Company, respectively; provided that the rights of a Holder may be transferred to a subsequent holder of the Holder's Registerable Securities (provided such transferee shall provide to the Company, together with or prior to such transferee's request to have such Registerable Securities included in a Registration, a writing executed by such transferee agreeing to be bound as a Holder by the terms of this Agreement), and the Company hereby agrees to file an amended registration statement including such transferee as a selling security holder thereunder; and provided further that the Company may transfer its rights and obligations under this Agreement to a purchaser of all or a substantial portion of its business if the obligations of the Company under this Agreement are assumed in connection with such transfer, either by merger or other operation of law (which may include without limitation a transaction whereby the Registerable Securities are converted into securities of the successor in interest) or by specific assumption executed by the transferee.

15.

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas applicable to agreements made in and wholly to be performed in that jurisdiction, except for matters arising under the Securities Act or the Exchange Act, which matters shall be construed and interpreted in accordance with such laws.  Any dispute arising out of or relating to this Agreement or the breach, termination or validity hereof shall be finally settled by the federal or state courts located in Harris County, Texas.

16.

Execution in Counterparts Permitted.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one (1) instrument.

17.

Specific Performance.  The Holder shall be entitled to the remedy of specific performance in the event of the Company’s breach of this Agreement, the parties agreeing that a remedy at law would be inadequate.

18.

Indemnity.  Each party shall indemnify each other party against any and all claims, damages (including reasonable attorney’s fees), and expenses arising out of the first party’s breach of any of the terms of this Agreement.

19.

Entire Agreement; Written Amendments Required.  This Agreement, including the Exhibits attached hereto, the Investment Agreement, the Common Stock certificates,  and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof, and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein.  Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought.

#

#

© Goldbridge Capital, LLC, 2001

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of October 25, 2001.

Cyber Law Reporter, Inc.

By: 

Jonathan Gilchrist, President

Address:

1207 Wisterwood 

Houston, Texas 77043 

INVESTOR:

Goldbridge Capital, LLC 

By: ________________________________

James W. Carroll, President

Address:

1240 Blalock Road, Suite 150

Houston, Texas 77057

Telephone: (713) 266-3700

Facsimile:  (713) 266-3701

#

#

© Goldbridge Capital, LLC, 2001<PAGE>
                                                                     EXHIBIT 4.4

                  CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                           STOCK COMPENSATION PROGRAM

               A. Purposes. This Capitated Disease Management Services Stock
Compensation Program (the "Program") is intended to promote the interests of
Capitated Disease Management Services, Inc. (the "Company"), its direct and
indirect present and future subsidiaries (the "Subsidiaries"), and its
stockholders, by providing eligible persons with the opportunity to acquire a
proprietary interest, or to increase their proprietary interest, in the Company
as an incentive to remain in the service of the Company.

               B. Elements of the Program. In order to maintain flexibility in
the award of benefits, the Program is comprised of five parts -- the Incentive
Stock Option Plan ("Incentive Plan"), the Supplemental Stock Option Plan
("Supplemental Plan"), the Stock Appreciation Rights Plan ("SAR Plan"), the
Performance Share Plan ("Performance Share Plan") and the Stock Bonus Plan
("Stock Bonus Plan"). Copies of the Incentive Plan, Supplemental Plan, SAR Plan,
Performance Share Plan and Stock Bonus Plan are attached hereto as Parts I, II,
III, IV, and V, respectively, and are collectively referred to herein as the
"Plans." The grant of an option, stock appreciation right, performance share, or
stock bonus under one of the Plans shall not be construed to prohibit the grant
of an option, stock appreciation right, performance share, or stock bonus under
any of the other Plans.

               C. Applicability of General Provisions. Unless any Plan
specifically indicates to the contrary, all Plans shall be subject to the
General Provisions of the Program set forth below under the heading "General
Provisions of Stock Compensation Program."

<PAGE>

                GENERAL PROVISIONS OF STOCK COMPENSATION PROGRAM

               Article 1. Administration. The Program shall be administered by
the Board of Directors of the Company (the "Board of Directors") or any duly
created committee appointed by the Board of Directors and charged with
administration of the Program. The Board of Directors, or any duly appointed
committee, when acting to administer the Program, is referred to as the "Program
Administrator." Any action of the Program Administrator shall be taken by
majority vote at a meeting or by unanimous written consent of all members
without a meeting. No Program Administrator or member of the Board of Directors
shall be liable for any action or determination made in good faith with respect
to the Program or with respect to any option, stock appreciation right,
performance share, or stock bonus granted thereunder.

               Article 2. Authority of Program Administrator. Subject to the
other provisions of this Program, and with a view to effecting its purpose, the
Program Administrator shall have the authority: (a) to construe and interpret
the Program; (b) to define the terms used herein; (c) to prescribe, amend, and
rescind rules and regulations relating to the Program; (d) to determine to whom
options, stock appreciation rights, performance shares, and stock bonuses shall
be granted under the Program; (e) to determine the time or times at which
options, stock appreciation rights, performance shares, or stock bonuses shall
be granted under the Program; (f) to determine the number of shares subject to
any discretionary option or stock appreciation right under the Program and the
number of shares to be awarded as performance shares or stock bonuses under the
Program, as well as the option price and the duration of each option, stock
appreciation right, performance share and stock bonus, and any other terms and
conditions of options, stock appreciation rights, performance shares, and stock
bonuses; and (g) to make any other determinations necessary or advisable for the
administration of the Program and to do everything necessary or appropriate to
administer the Program. All decisions, determinations and interpretations made
by the Program Administrator shall be binding and conclusive on all participants
in the Program and on their legal representatives, heirs, and beneficiaries.

               Article 3. Maximum Number of Shares Subject to the Program. The
maximum aggregate number of shares of the Company's Common Stock, par value $.01
per share ("Common Stock"), available pursuant to the Program, subject to
adjustment as provided in Article 6 hereof, shall be 1,000 shares of Common
Stock. Up to 1,000 of such shares may be issued under any Plan that is part of
the Program. If any of the options or stock appreciation rights granted under
the Program expire or terminate for any reason before they have been exercised
in full, the unissued shares subject to those expired or terminated options
and/or stock appreciation rights shall again be available for the purposes of
the Program. If the performance objectives associated with the grant of any
performance shares are not achieved within the specified performance objective
period, or if the performance share grant terminates for any reason before the
performance objective date arrives, the shares of Common Stock associated with
such performance shares shall again be available for the purposes of the
Program. If any stock provided to a recipient as a stock bonus is forfeited, the
shares of Common Stock so forfeited shall again be available for purposes of the
Program. Any shares of Common Stock

<PAGE>

delivered pursuant to the Program may consist, in whole or in part, of newly
issued shares or treasury shares.

               Article 4. Eligibility and Participation. All employees of the
Company and the Subsidiaries, whether or not officers or directors of the
Company or the Subsidiaries, and all consultants of the Company and the
Subsidiaries, whether or not directors of the Company or the Subsidiaries, shall
be eligible to participate in the Program; provided, however, that only
employees of the Company or the Subsidiaries may participate in the Incentive
Plan. The term "employee" shall include any person who has agreed to become an
employee and the term "consultant" shall include any person who has agreed to
become a consultant.

               Article 5. Effective Date and Term of Program. The Program shall
become effective upon its adoption by the Board of Directors and the
stockholders of the Company; provided, however, that awards may be granted under
the Program prior to obtaining stockholder approval of the Program so long as
such awards are contingent upon such stockholder approval being obtained and may
not be exercised prior to such approval. The Program shall continue in effect
for a term of ten years from the date the Program is adopted by the Board of
Directors unless sooner terminated by the Board of Directors.

               Article 6. Adjustments. Subject to the provisions of Articles 18
and 19, in the event that the outstanding shares of Common Stock of the Company
are hereafter increased, decreased, changed into, or exchanged for a different
number or kind of shares or securities through merger, consolidation,
combination, exchange of shares, other reorganization, recapitalization,
reclassification, stock dividend, stock split or reverse stock split, an
appropriate and proportionate adjustment shall be made by the Program
Administrator in the maximum number and kind of shares as to which options,
stock appreciation rights, and performance shares may be granted under the
Program. A corresponding adjustment changing the number or kind of shares
allocated to unexercised options, stock appreciation rights, performance shares
and stock bonuses or portions thereof, which shall have been granted prior to
any such change, shall likewise be made. Any such adjustment in outstanding
options and stock appreciation rights shall be made without change in the
aggregate purchase price applicable to the unexercised portion of the option or
stock appreciation right but with a corresponding adjustment in the price for
each share or other unit of any security covered by the option or stock
appreciation right. In making any adjustment pursuant to this Article 6, any
fractional shares shall be disregarded.

               Article 7. Termination and Amendment of Program. No options,
stock appreciation rights, performance shares or stock bonuses shall be granted
under the Program after the termination of the Program. The Program
Administrator may at any time amend or revise the terms of the Program or of any
outstanding option, stock appreciation right, performance share or stock bonus
issued under the Program, provided, however, that any stockholder approval
necessary or desirable in order to comply with Rule 16b-3 under the Securities
Exchange Act of 1934, as amended, or with Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code") or other applicable law or regulation
shall be obtained prior to the effectiveness of any such amendment or revision.
No amendment, suspension or termination of the Program or of any outstanding
option, stock appreciation right, performance share or stock bonus shall,
without

<PAGE>

the consent of the person who has received an option, stock appreciation right,
performance share or stock bonus, impair any of that person's rights or
obligations under any option, stock appreciation right, performance share or
stock bonus granted under the Program prior to such amendment, suspension or
termination without that person's written consent.

               Article 8. Privileges of Stock Ownership Notwithstanding the
exercise of any options granted pursuant to the terms of the Program or the
achievement of any performance objective specified in any performance share
granted pursuant to the terms of the Program, no person shall have any of the
rights or privileges of a stockholder of the Company in respect of any shares of
stock issuable upon the exercise of his or her option or achievement of his or
her performance objective until certificates representing the shares have been
issued and delivered. No adjustment shall be made for dividends or any other
distributions for which the record date is prior to the date on which any stock
certificate is issued pursuant to the Program.

               Article 9. Reservation of Shares of Common Stock. The Company,
during the term of the Program, will at all times reserve and keep available
such number of shares of its Common Stock as shall be sufficient to satisfy the
requirements of the Program.

               Article 10. Tax Withholding. The exercise of any option, stock
appreciation right or performance share, and the grant of any stock bonus under
the Program, are subject to the condition that, if at any time the Company shall
determine, in its discretion, that the satisfaction of withholding tax or other
withholding liabilities under any state or federal law is necessary or desirable
as a condition of, or in any connection with, such exercise or the delivery or
purchase of shares pursuant thereto, then, in such event, the exercise of the
option, stock appreciation right or performance share or the grant of such stock
bonus or the elimination of the risk of forfeiture relating thereto shall not be
effective unless such withholding tax or other withholding liabilities shall
have been satisfied in a manner acceptable to the Company.

               Article 11. Employment; Service as Director or Consultant.
Nothing in the Program gives to any person any right to continued employment by
or service as a director of or consultant to the Company or the Subsidiaries or
limits in any way the right of the Company, the Subsidiaries or the Company's
stockholders at any time to terminate or alter the terms of that employment or
service.

               Article 12. Investment Letter; Restrictions or Obligation of the
Company to Issue Securities; Restrictive Legend. Any person acquiring Common
Stock or other securities of the Company pursuant to the Program, as a condition
precedent to receiving the shares of Common Stock or other securities, may be
required by the Program Administrator to submit a letter to the Company stating
that the shares of Common Stock or other securities are being acquired for
investment and not with a view to the distribution thereof. The Company shall
not be obligated to sell or issue any shares of Common Stock or other securities
pursuant to the Program unless, on the date of sale and issuance thereof, the
shares of Common Stock or other securities are either registered under the
Securities Act of 1933, as amended, and all applicable state securities laws, or
exempt from registration thereunder. All shares of Common Stock and other
securities issued pursuant to the Program shall bear a restrictive legend
summarizing the

<PAGE>

restrictions on transferability applicable thereto, including those imposed by
federal and state securities laws.

               Article 13. Covenant Against Competition. The Program
Administrator shall have the right to condition the award to an employee of any
option, stock appreciation right, performance share, or stock bonus under the
Program upon the recipient's execution and delivery to the Company of an
agreement not to compete with the Company during the recipient's employment and
for such period thereafter as shall be determined by the Program Administrator.
Such covenant against competition shall be in a form satisfactory to the Program
Administrator.

               Article 14. Rights Upon Termination. If a recipient of an award
under the Program ceases to be a director of the Company or to be employed by or
to provide consulting services to the Company or any Subsidiary (or a
corporation or a parent or subsidiary of such corporation issuing or assuming a
stock option in a transaction to which Section 424(a) of the Code applies), as
the case may be, for any reason other than death or disability, then, unless any
other provision of the Program provides for earlier termination:

               (a) subject to Article 21, all options or stock appreciation
        rights (other than Naked Rights) shall terminate immediately in the
        event the recipient's service or employment is terminated for cause and
        in all other circumstances may be exercised, to the extent exercisable
        on the date of termination, until 30 days after the date of termination
        in all other cases; provided, however, that the Program Administrator
        may, in its discretion, allow such options or stock appreciation rights
        (other than Naked Rights) to be exercised (to the extent exercisable on
        the date of termination) at any time within three months after the date
        of termination;

               (b) subject to Section 5(b) of the SAR Plan, all Naked Rights not
        payable on the date of termination of employment shall terminate
        immediately;

               (c) all performance share awards shall terminate immediately
        unless the performance objectives have been achieved and the performance
        objective period has expired; and

               (d) all stock bonuses which are subject to forfeiture shall be
        forfeited as of the date of termination.

               Article 15. Rights Upon Disability. If a recipient becomes
disabled, within the meaning of Section 22(e)(3) of the Code, while employed by
or rendering consulting services to the Company or any Subsidiary (or a
corporation or a parent or subsidiary of such corporation issuing or assuming a
stock option in a transaction to which Section 424(a) of the Code applies), as
the case may be, then, unless any other provision of the Program provides for
earlier termination:

<PAGE>

               (a) subject to Article 21, all options or stock appreciation
        rights (other than Naked Rights) may be exercised, to the extent
        exercisable on the date of termination, at any time within one year
        after the date of termination due to disability;

               (b) all Naked Rights shall be fully paid by the Company as of the
        date of disability;

               (c) all performance share awards for which all performance
        objectives have been achieved (other than continued employment or
        service on the Vesting Date) shall be paid in full by the Company; all
        other performance shares shall terminate immediately; and

               (d) all stock bonuses which are subject to forfeiture shall be
        forfeited as of the date of disability.

               Article 16. Rights Upon Death of Recipient. If a recipient dies
while employed by or rendering consulting services to the Company or any
Subsidiary (or a corporation or a parent or subsidiary of such corporation
issuing or assuming a stock option in a transaction to which Section 424(a) of
the Code applies), as the case may be, then, unless any other provision of the
Program provides for earlier termination:

               (a) subject to Article 21, all options or stock appreciation
        rights (other than Naked Rights) may be exercised by the person or
        persons to whom the recipient's rights shall pass by will or by the laws
        of descent and distribution, to the extent exercisable on the date of
        death, at any time within one year after the date of death, unless any
        other provision of the Program provides for earlier termination;

               (b) all Naked Rights shall be fully paid by the Company as of the
        date of death;

               (c) all performance share awards for which all performance
        objectives have been achieved (other than continued employment or
        service on the Vesting Date) shall be paid in full by the Company; all
        other performance share awards shall terminate immediately; and

               (d) all stock bonuses which are subject to forfeiture shall be
        forfeited as of the date of death.

               Article 17. Transferability. Options and stock appreciation
rights granted under the Program may not be sold, pledged, assigned or
transferred in any manner by the recipient otherwise than by will or by the laws
of descent and distribution and shall be exercisable (a) during the recipient's
lifetime only by the recipient and (b) after the recipient's death only by the
recipient's executor, administrator or personal representative, provided,
however that the Program Administrator may permit the recipient of a
non-incentive stock option under the Supplemental Plan to transfer the option to
a family member or a trust created for the

<PAGE>

benefit of family members. In the case of such a transfer, the transferee's
rights and obligations with respect to the option shall be determined by
reference to the recipient and the recipient's rights and obligations with
respect to the option had no transfer been made. The recipient shall remain
obligated pursuant to Articles 10 and 12 hereunder if required by applicable
law. Common Stock which represents either performance shares prior to the
satisfaction of the stated performance objectives and the expiration of the
stated performance objective periods or stock bonus shares prior to the time
that they are no longer subject to risk of forfeiture may not be sold, pledged,
assigned or transferred in any manner.

               Article 18 Change in Control. With respect to awards, the Program
Administrator shall have the authority to provide, either at the time any
option, stock appreciation right, performance share or stock bonus is granted or
thereafter, that an option or stock appreciation right shall become fully
exercisable upon the occurrence of a Change in Control Event or that all
restrictions, performance objectives, performance objective periods and risks of
forfeiture pertaining to a performance share or stock bonus award shall lapse
upon the occurrence of a Change in Control Event. As used in the Program, a
"Change in Control Event" shall be deemed to have occurred if:

               (a) any person, firm or corporation (other than Michael S. Miele,
        members of his immediate family, or a trust or other entity established
        for the benefit of Mr. Miele and/or members of his immediate family)
        acquires directly or indirectly the Beneficial Ownership (as defined in
        Section 13(d) of the Securities Exchange Act of 1934, as amended) of any
        voting security of the Company and, immediately after such acquisition,
        the acquirer has Beneficial Ownership of voting securities representing
        50% or more of the total voting power of all the then-outstanding voting
        securities of the Company;

               (b) the individuals who (i) as of the effective date of the
        Program constitute the Board of Directors (the "Original Directors"),
        (ii) thereafter are elected to the Board of Directors and whose election
        or nomination for election to the Board of Directors was approved by a
        vote of at least 2/3 of the Original Directors then still in office
        (such Directors being called "Additional Original Directors"), or (iii)
        are elected to the Board of Directors and whose election or nomination
        for election to the Board of Directors was approved by a vote of at
        least 2/3 of the Original Directors and Additional Original Directors
        then still in office, cease for any reason to constitute a majority of
        the members of the Board of Directors;

               (c) the stockholders of the Company shall approve a merger,
        consolidation, recapitalization, or reorganization of the Company or the
        Company shall consummate any such transaction if stockholder approval is
        not sought or obtained, other than any such transaction which would
        result in holders of outstanding voting securities of the Company
        immediately prior to the transaction having Beneficial Ownership of at
        least 50% of the total voting power represented by the voting securities
        of the surviving entity outstanding immediately after such transaction,
        with the voting power of each such continuing holder relative to such
        other continuing holders being not altered substantially in the
        transaction; or

<PAGE>

               (d) the stockholders of the Company shall approve a plan of
        complete liquidation of the Company or an agreement for the sale or
        disposition by the Company of all or a substantial portion of the
        Company's assets (i.e., 50% or more in value of the total assets of the
        Company).

               Article 19. Mandatory Exercise. Upon the occurrence of or in
anticipation of a contemplated Change in Control Event, the Company may give a
holder of an option or stock appreciation right written notice requiring such
person either (a) to exercise within a period of time established by the Company
after receipt of the notice each option and stock appreciation right to the
fullest extent exercisable at the end of that period, or (b) to surrender such
option or stock appreciation right or any unexercised portion thereof. Any
portion of such option or stock appreciation right which shall not have been
exercised in accordance with the provisions of the Program by the end of such
period shall automatically lapse irrevocably and the holder shall have no
further rights thereunder.

               Article 20. Method of Exercise. Any holder of an option may
exercise his or her option from time to time by giving written notice thereof to
the Company at its principal office, together with payment in full for the
shares of Common Stock to be purchased. The date of such exercise shall be the
date on which the Company receives such notice. Such notice shall state the
number of shares to be purchased. The purchase price of any shares purchased
upon the exercise of any option granted pursuant to the Program shall be paid in
full at the time of exercise of the option by certified or bank cashier's check
payable to the order of the Company or, if permitted by the Program
Administrator, by shares of Common Stock which have been held by the optionee
for at least six months, or by a combination of checks and such shares of Common
Stock. The Program Administrator may, in its sole discretion, permit an optionee
to make "cashless exercise" arrangements, to the extent permitted by applicable
law, and may require optionees to utilize the services of a single broker
selected by the Program Administrator in connection with any cashless exercise.
No option may be exercised for a fraction of a share of Common Stock. If any
portion of the purchase price is paid in shares of Common Stock, those shares
shall be valued at their then Fair Market Value as determined by the Program
Administrator in accordance with Section 4 of the Incentive Plan.

               Article 21. Limitation. Notwithstanding any other provision of
the Program, (a) no option may be granted pursuant to the Program more than ten
years after the date on which the Program was adopted by the Board of Directors,
and (b) any option granted under the Program shall, by its terms, not be
exercisable more than ten years after the date of grant.

               Article 22. Sunday or Holiday. In the event that the time for the
performance of any action or the giving of any notice is called for under the
Program within a period of time which ends or falls on a Sunday or legal
holiday, such period shall be deemed to end or fall on the next day following
such Sunday or legal holiday which is not a Sunday or legal holiday.

               Article 23. Governing Law. The Program shall be governed by and
construed in accordance with the laws of the State of New Jersey.

<PAGE>

               Article 24. Disputes. As a condition of the granting of any
option, the optionee shall be deemed to agree that any dispute or disagreement
which may arise under or as a result of this Program or the individual option
agreement shall be determined by the Board of Directors of the Company, in its
sole discretion and that any interpretation by the Board shall be final, binding
and conclusive.

<PAGE>

                                     PLAN I

                   CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                           INCENTIVE STOCK OPTION PLAN

               Section 1. General. This Capitated Disease Management Services,
Inc. Incentive Stock Option Plan ("Incentive Plan") is Part I of the Company's
Program. The Company intends that options granted pursuant to the provisions of
the Incentive Plan will qualify and will be identified as "incentive stock
options" within the meaning of Section 422 of the Code. Unless any provision
herein indicates to the contrary, the Incentive Plan shall be subject to the
General Provisions of the Program.

               Section 2. Terms and Conditions. The Program Administrator may
grant incentive stock options to any person eligible under Article 4 of the
General Provisions. The terms and conditions of options granted under the
Incentive Plan may differ from one another as the Program Administrator shall,
in its discretion, determine, as long as all options granted under the Incentive
Plan satisfy the requirements of the Incentive Plan.

               Section 3. Duration of Options. Each option and all rights
thereunder granted pursuant to the terms of the Incentive Plan shall expire on
the date determined by the Program Administrator, but in no event shall any
option granted under the Incentive Plan expire later than ten years from the
date on which the option is granted. Notwithstanding the foregoing, any option
granted under the Incentive Plan to any person who owns more than 10% of the
combined voting power of all classes of stock of the Company or a Subsidiary
shall expire no later than five years from the date on which the option is
granted.

               Section 4. Purchase Price. The option price with respect to any
option granted pursuant to the Incentive Plan shall not be less than the Fair
Market Value of the shares on the date of the grant of the option; except that
the option price with respect to any option granted pursuant to the Incentive
Plan to any person who owns more than 10% of the combined voting power of all
classes of stock of the Company shall not be less than 110% of the Fair Market
Value of the shares on the date the option is granted. "Fair Market Value" shall
mean the fair market value of the Common Stock on the date of grant or other
relevant date. If on such date the Common Stock is listed on a stock exchange or
is quoted on the automated quotation system of NASDAQ, the Fair Market Value
shall be the closing sale price (or if such price is unavailable, the average of
the high bid price and the low asked price) on such date. If no such closing
sale price or bid and asked prices are available, the Fair Market Value shall be
determined in good faith by the Program Administrator in accordance with
generally accepted valuation principles and such other factors as the Program
Administrator reasonably deems relevant.

               Section 5. Maximum Amount of Options in Any Calendar Year. The
aggregate Fair Market Value of the Common Stock with respect to which incentive
stock options

<PAGE>

are exercisable for the first time by any employee during any calendar year
(under the terms of the Incentive Plan and all incentive stock option plans of
the Company and the Subsidiaries) shall not exceed $100,000.

               Section 6. Exercise of Options. Unless otherwise provided by the
Program Administrator at the time of grant or unless the installment provisions
set forth herein are subsequently accelerated pursuant to Article 18 of the
General Provisions of the Program or otherwise by the Program Administrator with
respect to any one or more previously granted options, options may only be
exercised to the following extent during the following periods of employment:

<TABLE>
<CAPTION>
                                                          Maximum Percentage of
                                                            Shares Covered by
                         Period Following                  Option Which May be
                          Date of Grant                         Purchased
                         ----------------                 ---------------------
           <S>                                            <C>
           Less than 12 months                                      0%
           12 months or more and less than 24 months               10%
           24 months or more and less than 36 months               20%
           36 months or more and less than 48 months               30%
           48 months or more and less than 60 months               40%
           60 months or more                                      100%
</TABLE>

<PAGE>

                                     PLAN II

                   CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                         SUPPLEMENTAL STOCK OPTION PLAN

               Section 1. General. This Capitated Disease Management Services,
Inc. Supplemental Stock Option Plan ("Supplemental Plan") is Part II of the
Company's Program. Any option granted pursuant to the Supplemental Plan shall
not be an incentive stock option as defined in Section 422 of the Code. Unless
any provision herein indicates to the contrary, this Supplemental Plan shall be
subject to the General Provisions of the Program.

               Section 2. Terms and Conditions. The Program Administrator may
grant supplemental stock options to any person eligible under Article 4 of the
General Provisions. The terms and conditions of options granted under the
Supplemental Plan may differ from one another as the Program Administrator
shall, in its discretion, determine, as long as all options granted under the
Supplemental Plan satisfy the requirements of the Supplemental Plan.

               Section 3. Duration of Options. Each option and all rights
thereunder granted pursuant to the terms of the Supplemental Plan shall expire
on the date determined by the Program Administrator, but in no event shall any
option granted under the Supplemental Plan expire later than ten years from the
date on which the option is granted.

               Section 4. Purchase Price. The option price with respect to any
option granted pursuant to the Supplemental Plan shall be determined by the
Program Administrator at the time of grant.

               Section 5. Exercise of Options. Unless otherwise provided by the
Program Administrator at the time of grant, or unless the installment provisions
set forth herein are subsequently accelerated pursuant to Article 18 of the
General Provisions of the Program or otherwise by the Program Administrator,
with respect to any one or more previously granted options, options may only be
exercised to the following extent during the following periods of employment or
service:

<PAGE>

<TABLE>
<CAPTION>
                                                          Maximum Percentage of
                                                            Shares Covered by
                         Period Following                  Option Which May be
                          Date of Grant                         Purchased
                         ----------------                 ---------------------
         <S>                                              <C>
         Less than 12 months                                        0%
         12 months or more and less than 24 months                 10%
         24 months or more and less than 36 months                 20%
         36 months or more and less than 48 months                 30%
         48 months or more and less than 60 months                 40%
         60 months or more                                        100%
</TABLE>

<PAGE>

                                    PLAN III

                   CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                         STOCK APPRECIATION RIGHTS PLAN

               Section 1. General. This Capitated Disease Management Services,
Inc. Stock Appreciation Rights Plan ("SAR Plan") is Part III of the Company's
Program.

               Section 2. Terms and Conditions. The Program Administrator may
grant stock appreciation rights to any person eligible under Article 4 of the
General Provisions. Stock appreciation rights may be granted either in tandem
with incentive stock options or supplemental stock options as described in
Section 4 of the SAR Plan, or as naked stock appreciation rights as described in
Section 5 of the SAR Plan.

               Section 3. Mode of Payment. At the discretion of the Program
Administrator, payments to recipients upon exercise of stock appreciation rights
may be made in (a) cash by bank check, (b) shares of Common Stock having a Fair
Market Value (determined in the manner provided in Section 4 of the Incentive
Plan) equal to the amount of the payment, (c) a note in the amount of the
payment containing such terms as are approved by the Program Administrator, or
(d) any combination of the foregoing in an aggregate amount equal to the amount
of the payment.

               Section 4. Stock Appreciation Rights in Tandem with Incentive or
Supplemental Stock Options. A SAR granted in tandem with an incentive stock
option or a supplemental stock option (each, an "Option") shall be on the
following terms and conditions:

               (a) Each SAR shall relate to a specific Option or portion of an
        Option granted under the Incentive Plan or the Supplemental Plan, as the
        case may be, and may be granted by the Program Administrator at the same
        time that the Option is granted or at any time thereafter prior to the
        last day on which the Option may be exercised.

               (b) A SAR shall entitle a recipient, upon surrender of the
        unexpired related Option, or a portion thereof, to receive from the
        Company an amount equal to the excess of (i) the Fair Market Value
        (determined in accordance with Section 4 of the Incentive Plan) of the
        shares of Common Stock which the recipient would have been entitled to
        purchase on that date pursuant to the portion of the Option surrendered,
        over (ii) the amount which the recipient would have been required to pay
        to purchase such shares upon exercise of such Option.

               (c) A SAR shall be exercisable only for the same number of shares
        of Common Stock, and only at the same times, as the Option to which it
        relates. SARs shall be subject to such other terms and conditions as the
        Program Administrator may specify.

<PAGE>

               (d) A SAR shall lapse at such time as the related Option is
        exercised or lapses pursuant to the terms of the Program. On exercise of
        the SAR, the related Option shall lapse as to the number of shares
        exercised.

               Section 5. Naked Stock Appreciation Rights. SARs granted by the
Program Administrator as naked stock appreciation rights ("Naked Rights") shall
be subject to the following terms and conditions:

               (a) The Program Administrator may award Naked Rights to
        recipients for periods not exceeding ten years. Each Naked Right shall
        represent the right to receive the excess of (i) the Fair Market Value
        of one share of Common Stock (determined in accordance with Section 4 of
        the Incentive Plan) on the date of exercise of the Naked Right, over
        (ii) the Fair Market Value of one share of Common Stock (determined in
        accordance with Section 4 of the Incentive Plan) on the date the Naked
        Right was awarded to the recipient.

               (b) Unless otherwise provided by the Program Administrator at the
        time of award or unless the installment provisions set forth herein are
        subsequently accelerated pursuant to Article 18 of the General
        Provisions of the Program or otherwise by the Program Administrator with
        respect to any one or more previously granted Naked Rights, Naked Rights
        may only be exercised to the following extent during the following
        periods of employment or service:

<TABLE>
<CAPTION>
                                                         Maximum Percentage of
                         Period Following                 Naked Rights Which
                           Date of Grant                    May be Purchased
                         ----------------                ---------------------
           <S>                                           <C>
           Less than 12 months                                     0%
           12 months or more and less than 24 months              10%
           24 months or more and less than 36 months              20%
           36 months or more and less than 48 months              30%
           48 months or more and less than 60 months              40%
           60 months or more                                     100%
</TABLE>

               (c) The Naked Rights solely measure and determine the amounts to
        be paid to recipients upon exercise as provided in Section 5(a). Naked
        Rights do not represent Common Stock or any right to receive Common
        Stock. The Company shall not hold in trust or otherwise segregate
        amounts which may become payable to recipients of Naked Rights; such
        funds shall be part of the general funds of the Company. Naked Rights
        shall constitute an unfunded contingent promise to make future payments
        to the recipient.

<PAGE>

                                     PLAN IV

                   CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                             PERFORMANCE SHARE PLAN

               Section 1. General. This Capitated Disease Management Services,
Inc. Performance Share Plan ("Performance Share Plan") is Part IV of the
Company's Program. Unless any provision herein indicates to the contrary, the
Performance Share Plan shall be subject to the General Provisions of the
Program.

               Section 2. Terms and Conditions. The Program Administrator may
grant performance shares to any person eligible under Article 4 of the General
Provisions. Each performance share grant shall confer upon the recipient thereof
the right to receive a specified number of shares of Common Stock of the Company
contingent upon the achievement of specified performance objectives within a
specified performance objective period including, but not limited to, the
recipient's continued employment or service as a consultant through the period
set forth in Section 5 of this Performance Share Plan. At the time of an award
of a performance share, the Program Administrator shall specify the performance
objectives, the performance objective period or periods and the period of
duration of the performance share grant. Any performance shares granted under
this Plan shall constitute an unfunded promise to make future payments to the
affected person upon the completion of specified conditions.

               Section 3. Mode of Payment. At the discretion of the Program
Administrator, payments of performance shares may be made in (a) shares of
Common Stock, (b) a check in an amount equal to the Fair Market Value
(determined in the manner provided in Section 4 of the Incentive Plan) of the
shares of Common Stock to which the performance share award relates, (c) a note
in the amount specified above in Section 3(b) containing such terms as are
approved by the Program Administrator, or (d) any combination of the foregoing
in the aggregate amount equal to the amount specified above in Section 3(b).

               Section 4. Performance Objective Period. The duration of the
period within which to achieve the performance objectives shall be determined by
the Program Administrator. The period may not be less than one year nor more
than ten years from the date that the performance share is granted. The Program
Administrator shall determine whether performance objectives have been met with
respect to each applicable performance objective period. Such determination
shall be made promptly after the end of each applicable performance objective
period, but in no event later than 90 days after the end of each applicable
performance objective period. All determinations by the Program Administrator
with respect to the achievement of performance objectives shall be final,
binding on and conclusive with respect to each recipient.

               Section 5. Vesting of Performance Shares. Unless otherwise
provided by the Program Administrator at the time of grant, or unless the
installment provisions set forth herein are subsequently accelerated pursuant to
Article 18 of the General Provisions of the Program or otherwise by the Program
Administrator, with respect to any one or more previously granted

<PAGE>

performance shares, the Company shall pay to the recipient on the date set forth
in Column 1 below ("Vesting Date") the percentage of the recipient's performance
share award set forth in Column 2 below.

<TABLE>
<CAPTION>
                           Column 1                       Column 2
                         Vesting Date                    Percentage
                         ------------                    ----------
               <S>                                       <C>
               1 year from Date of Grant                     25%
               2 years from Date of Grant                    25%
               3 years from Date of Grant                    25%
               4 years from Date of Grant                    25%
</TABLE>

<PAGE>

                                     PLAN V

                   CAPITATED DISEASE MANAGEMENT SERVICES, INC.

                                STOCK BONUS PLAN

               Section 1. General. This Capitated Disease Management Services,
Inc. Stock Bonus Plan ("Stock Bonus Plan") is Part V of the Company's Program.
Unless any provision herein indicates to the contrary, the Stock Bonus Plan
shall be subject to the General Provisions of the Program.

               Section 2. Terms and Conditions. The Program Administrator may
grant bonuses in the form of shares of Common Stock to any person eligible under
Article 4 of the General Provisions. Each such stock bonus shall be forfeited by
the recipient in the event that the recipient's employment by or service as a
director or consultant to the Company or any Subsidiary terminates within the
time periods specified in Section 3 of the Stock Bonus Plan or within such other
time period as the Program Administrator also may provide at the time of grant.
The Program Administrator also may provide at the time of grant that the Common
Stock subject to the stock bonus shall be forfeited by the recipient upon the
occurrence of other events.

               Section 3. Forfeiture of Bonus Shares. Unless otherwise provided
by the Program Administrator at the time of grant, or unless the installment
provisions set forth herein are subsequently accelerated pursuant to Article 18
of the General Provisions of the Program or otherwise by the Program
Administrator with respect to any one or more previously granted bonus shares,
the percentage set forth in Column 2 below of shares of Common Stock issued as a
stock bonus shall be forfeited and transferred back to the Company by the
recipient without payment of any consideration from the Company if the
recipient's employment by or service as a director or consultant to the Company
or any Subsidiary is terminated for any reason during the time periods specified
in Column 1 below:

<TABLE>
<CAPTION>
                       Column 1                             Column 2
                  Employment or Service                Percentage of Bonus
                    Terminated Within             Shares Which are Forfeitable
                  ---------------------           ----------------------------
               <S>                                <C>
               First 12 months after grant                    100%
               First 24 months after grant                     90%
               First 36 months after grant                     80%
               First 48 months after grant                     70%
               First 60 months after grant                     60%
               Beyond 60 months after grant                     0%
</TABLE>

        Section 4. Rights as a Stockholder; Stock Certificates. A recipient
shall have rights as a stockholder with respect to any shares of Common Stock
received as a stock bonus represented by a stock certificate issued in his name
even though all or a portion of such shares

<PAGE>

remains subject to a risk of forfeiture hereunder, except that shares subject to
forfeiture shall not be transferable. Stock certificates representing such
shares which remain subject to forfeiture together with a related stock power
shall be held by the Company, and shall be canceled and returned to the
Company's treasury if thereafter forfeited. Stock certificates representing such
shares which are vested and no longer subject to forfeiture shall be delivered
to the recipient.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]