Document:

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                                                                     EXHIBIT 4.2
                             THE MACREPORT.NET, INC.

                             2001 STOCK OPTION PLAN

1.       Purpose

         The purpose of this plan (the "Plan") is to secure for THE
MACREPORT.NET, INC. (the "Company") and its shareholders the benefits arising
from capital stock ownership by employees, officers, directors, consultants and
other service providers of the Company or an Affiliate (as that term is defined
in the Plan) who are expected to contribute to the Company's future growth and
success. The Plan is also designed to attract and retain other persons who will
provide services to the Company. Those provisions of the Plan which make express
reference to Section 422 of the Internal Revenue Code of 1986, as amended or
replaced from time to time (the "Code"), shall apply only to Incentive Stock
Options (as that term is defined in the Plan).

2.       Type of Options and Administration

         (a) Types of Options. Options granted pursuant to the Plan shall be
authorized by action of the Board of Directors (the "Board") of the Company (or
the committee appointed by the Board in accordance with Section 2(b) below) and
may be either incentive stock options ("Incentive Stock Options") intended to
meet the requirements of Section 422 of the Code or non-statutory options which
are not intended to meet the requirements of Section 422 of the Code
("Non-Qualified Options").

         (b) Administration. The Plan will be administered by the Board or by a
committee consisting of two or more directors each of whom shall be a
"non-employee director," within the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any
successor rule ("Rule 16b-3"), and an "outside director", within the meaning of
Treasury Regulation Section 1.162-27(e)(3) promulgated under Section 162(m) of
the Code, (the "Committee") appointed by the Board, in each case whose
construction and interpretation of the terms and provisions of the Plan shall be
final, conclusive and binding upon the optionee and all other persons interested
or claiming interests under the Plan. If the Board determines to create a
Committee to administer the Plan, the delegation of powers to the Committee
shall be consistent with applicable laws or regulations (including, without
limitation, applicable state law and Rule 16b-3). The Board or the Committee may
in its sole discretion grant options to purchase any class of the Company's
shares (the "Shares"), and issue Shares upon exercise of such options as
provided in the Plan. The Board or the Committee shall have authority, subject
to the express provisions of the Plan, to construe the respective option
agreements and the Plan; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the respective
option agreements, which need not be identical; and to make all other
determinations in the judgment of the Board or the Committee necessary or
desirable for the administration of the Plan. The Board or the Committee may
correct any defect or supply any omission or reconcile any inconsistency in the
Plan or in any option agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect and it shall be the sole and final judge
of such expediency. No director or person acting

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pursuant to authority delegated by the Board shall be liable for any action or
determination under the Plan made in good faith.

3.       Eligibility

         Options may be granted to persons who are, at the time of grant,
employees, officers, directors, consultants or other service providers of the
Company or any parent or subsidiary of the Company as defined in Sections 424(e)
and 424(f) of the Code ("Affiliate"), provided that Incentive Stock Options may
only be granted to individuals who are employees (within the meaning of Section
3401(c) of the Code) of the Company or any Affiliate. Options may also be
granted to other persons, provided that such options shall be Non-Qualified
Options. A person who has been granted an option may, if he or she is otherwise
eligible, be granted additional options if the Board or the Committee shall so
determine. Notwithstanding anything in the Plan to the contrary, no employee of
the Company or an Affiliate shall be granted options with respect to more than
2,000,000 Shares during any calendar year.

4.       Stock Subject to Plan

         The Shares subject to options granted under the Plan shall be
authorized but unissued Shares or reacquired Shares. Subject to adjustment as
provided in Section 15 below, the maximum number of Shares of the Company which
may be issued and sold under the Plan is 1,000,000. If an option granted under
the Plan shall expire, terminate or is cancelled for any reason without having
been exercised in full, the unpurchased Shares subject to such option shall
again be available for subsequent option grants under the Plan.

5.       Forms of Option Agreements

         As a condition to the grant of an option under the Plan, each recipient
of an option shall execute an option agreement in such form not inconsistent
with the Plan and as may be approved by the Board or the Committee. The terms of
such option agreements may differ among recipients.

6.       Purchase Price

         (a) General. The purchase price per Share issuable upon the exercise of
an option shall be determined by the Board or the Committee at the time of grant
of such option, provided, however, that such exercise price (i) in the case of
Incentive Stock Options, shall not be less than 100% of the Fair Market Value
(as hereinafter defined) of such Shares at the time of grant of such option, and
for Incentive Stock Options granted to a "10% Shareholder" (as defined in
Section 11(b)), shall not be less than 110% of such Fair Market Value, and (ii)
in the case of Non-Qualified Options, shall not be less than 85% of such Fair
Market Value. "Fair Market Value" of a Share as of a specified date for purposes
of the Plan shall mean the closing price of a Share on the principal securities
exchange (including, but not limited to, the Nasdaq SmallCap Market or the
Nasdaq National Market) on which such Shares are traded on the day immediately
preceding the date as of which Fair Market Value is being determined, or on the
next preceding date on which such Shares are traded if no Shares were traded on
such immediately preceding day, or if the Shares are not traded on a securities
exchange, Fair Market Value shall be deemed to be the average of the high bid
and low asked prices of the Shares in the over-the-counter

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market on the day immediately preceding the date as of which Fair Market Value
is being determined or on the next preceding date on which such high bid and low
asked prices were recorded. If the Shares are not publicly traded, Fair Market
Value of a Share (including, in the case of any repurchase of Shares, any
distributions with respect thereto which would be repurchased with the Shares)
shall be determined in good faith by the Board. In no case shall Fair Market
Value be determined with regard to restrictions other than restrictions which,
by their terms, will never lapse.

         (a) Payment of Purchase Price. Options granted under the Plan may
provide for the payment of the exercise price by delivery of cash or a check to
the order of the Company in an amount equal to the exercise price of such
options, or by any other means which the Board determines are consistent with
the purpose of the Plan and with applicable laws and regulations (including,
without limitation, the provisions of Rule 16b-3).

7.       Exercise Option Period

         Subject to earlier termination as provided in the Plan, each option and
all rights thereunder shall expire on such date as determined by the Board or
the Committee and set forth in the applicable option agreement, provided that
such date shall not be later than ten (10) years after the date on which the
option is granted, or as prescribed by Section 11(b) hereinbelow.

8.       Exercise of Options

         Each option granted under the Plan shall be exercisable either in full
or in installments at such time or times and during such period as shall be set
forth in the option agreement evidencing such option, subject to the provisions
of the Plan. Subject to the requirements in the immediately preceding sentence,
if an option is not at the time of grant immediately exercisable, the Board or
the Committee may (i) in the agreement evidencing such option, provide for the
acceleration of the exercise date or dates of the subject option upon the
occurrence of specified events and/or (ii) at any time prior to the complete
termination of an option, accelerate the exercise date or dates of such option.

9.       Nontransferability of Options

         No option granted under this Plan shall be assignable or otherwise
transferable by the optionee, except by will or by the laws of descent and
distribution. An option may be exercised during the lifetime of the optionee
only by the optionee.

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10.      Effect of Termination of Employment or Other Relationship

         (b) Except as provided in Section 11(b) with respect to Incentive Stock
Options and except as may otherwise be determined by the Board or the Committee
at the date of grant of an option, and subject to the provisions of the Plan, an
optionee may exercise an option at any time within three (3) months following
the termination of the optionee's employment or other relationship with the
Company and its Affiliates or within one (1) year if such termination was due to
the death or disability (within the meaning of Section 22(e)(3) of the Code or
any successor provisions thereto) of the optionee (to the extent such option is
otherwise exercisable at the time of such termination) but in no event later
than the expiration date of the option.

         (c) Notwithstanding the foregoing and except as may otherwise be
determined by the Board or the Committee, if the termination of the optionee's
employment or other relationship with the Company and/or its Affiliate is for
cause, the option shall expire immediately upon such termination. The Board or
the Committee shall have the power to determine, in its sole discretion, what
constitutes a termination for cause, whether an optionee has been terminated for
cause, and the date upon which such termination for cause occurs. Any such
determinations shall be final and conclusive and binding upon the optionee and
all other persons interested or claiming interests under the Plan.

11.      Incentive Stock Options

         Options granted under the Plan which are intended to be Incentive Stock
Options shall be subject to the following additional terms and conditions:

         (d) Express Designation. All Incentive Stock Options granted under the
Plan shall, at the time of grant, be specifically designated as such in the
option agreement covering such Incentive Stock Options.

         (e) 10% Shareholder. If any employee to whom an Incentive Stock Option
is to be granted under the Plan is, at the time of the grant of such option, the
owner of stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company (after taking into account the attribution
of stock ownership rules of Section 424(d) of the Code), then the following
special provisions shall be applicable to the Incentive Stock Option granted to
such individual:

                        (i) the purchase price per Share subject to such
         Incentive Stock Option shall not be less than 110% of the Fair Market
         Value of one Share at the time of grant; and

                       (ii) the option exercise period shall not exceed five (5)
         years from the date of grant.

         (f) Dollar Limitation. For so long as the Code shall so provide,
options granted to any employee under the Plan (and any other incentive stock
option plans of the Company) which are intended to constitute Incentive Stock
Options shall not constitute Incentive Stock Options to the extent that such
options, in the aggregate, become exercisable for the first time in any one
calendar

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year for Shares with an aggregate Fair Market Value, as of the respective date
or dates of grant, of more than $100,000.

         (g) Termination of Employment, Death or Disability. No Incentive Stock
Option may be exercised unless, at the time of such exercise, the optionee is,
and has been continuously since the date of grant of his or her option, employed
by the Company or an Affiliate, except that:

                        (i) an Incentive Stock Option may be exercised within
         the period of three (3) months after the date the optionee ceases to be
         an employee of the Company or an Affiliate (or within such lesser
         period as may be specified in the applicable option agreement), to the
         extent it is otherwise exercisable at the time of such cessation,

                       (ii) if the optionee dies while in the employ of the
         Company or an Affiliate, or within three (3) months after the optionee
         ceases to be such an employee, the Incentive Stock Option may be
         exercised by the person to whom it is transferred by will or the laws
         of descent and distribution within the period of one (1) year after the
         date of death (or within such lesser period as may be specified in the
         applicable option agreement), to the extent it is otherwise exercisable
         at the time of the optionee's death, and

                      (iii) if the optionee becomes disabled (within the meaning
         of Section 22(e)(3) of the Code or any successor provisions thereto)
         while in the employ of the Company or an Affiliate, the Incentive Stock
         Option may be exercised within the period of one (1) year after the
         date the optionee ceases to be such an employee because of such
         disability (or within such lesser period as may be specified in the
         applicable option agreement), to the extent it is otherwise exercisable
         at the time of such cessation.

For all purposes of the Plan and any option granted hereunder, "employment"
shall be defined in accordance with the provisions of Section 1.421-7(h) of the
Income Tax Regulations (or any successor regulations). Notwithstanding the
foregoing provisions, no Incentive Stock Option may be exercised after its
expiration date.

12.      Additional Provisions

         (h) Additional Option Provisions. The Board or the Committee may, in
its sole discretion, include additional provisions in option agreements covering
options granted under the Plan, including without limitation, restrictions on
transfer, repurchase rights, rights of first refusal, commitments to pay cash
bonuses or to make, arrange for or guaranty loans or to transfer other property
to optionees upon exercise of options, or such other provisions as shall be
determined by the Board or the Committee, provided that such additional
provisions shall not be inconsistent with the requirements of applicable law and
such additional provisions shall not cause any Incentive Stock Option granted
under the Plan to fail to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code.

         (i) Acceleration, Extension, Etc. The Board or the Committee may, in
its sole discretion (i) accelerate the date or dates on which all or any
particular option or options granted under the Plan may be exercised, or (ii)
extend the dates during which all, or any particular, option

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or options granted under the Plan may be exercised, provided, however, that no
such acceleration or extension shall be permitted if it would (i) cause any
Incentive Stock Option granted under the Plan to fail to qualify as an Incentive
Stock Option within the meaning of Section 422 of the Code, or (ii) cause the
Plan or any option granted under the Plan to fail to comply with Rule 16b-3 (if
applicable to the Plan or such option).

13.      General Restrictions

         (j) Investment Representations. The Board or the Committee may require
any person to whom an option is granted, as a condition of exercising such
option or award, to give written assurances in substance and form satisfactory
to the Board or the Committee to the effect that such person is acquiring the
Shares subject to the option or award for his or her own account for investment
and not with any present intention of selling or otherwise distributing the
same, and to such other effects as the Board or the Committee deems necessary or
appropriate in order to comply with applicable federal and state securities
laws, or with covenants or representations made by the Company in connection
with any public offering of its Shares, including any "lock-up" or other
restriction on transferability.

         (k) Compliance With Securities Law. Each option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that
the listing, registration or qualification of the Shares subject to such option
or award upon any securities exchange or automated quotation system or under any
state or federal law, or the consent or approval of any governmental or
regulatory body, or that the disclosure of non-public information or the
satisfaction of any other condition, is necessary as a condition of, or in
connection with the issuance or purchase of Shares thereunder, except to the
extent expressly permitted by the Board, such option or award may not be
exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval or satisfaction of such condition shall have
been effected or obtained on conditions acceptable to the Board or the
Committee. Nothing herein shall be deemed to require the Company to apply for or
to obtain such listing, registration, qualification, consent or approval, or to
satisfy such condition. In addition, Shares issued upon the exercise of options
may bear such legends as the Company may deem advisable to reflect restrictions
which may be imposed by law, including, without limitation, the Securities Act
of 1933, as amended, any state "blue sky" or other applicable federal or state
securities law.

14.      Rights as a Shareholder

         The holder of an option shall have no rights as a shareholder with
respect to any shares covered by the option (including, without limitation, any
right to vote or to receive dividends or non-cash distributions with respect to
such shares) until the effective date of exercise of such option and then only
to the extent of the Shares so purchased. No adjustment shall be made for
dividends or other rights for which the record date is prior to the date of
exercise.

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15.      Adjustment Provisions for Recapitalizations, Reorganizations and
         Related Transactions

         (l) Recapitalizations and Related Transactions. If, through or as a
result of any recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar transaction (i) the outstanding Shares are
increased, decreased or exchanged for a different number or kind of shares or
other securities of the Company, or (ii) additional Shares or new or different
shares or other non-cash assets are distributed with respect to such Shares or
other securities, an appropriate and proportionate adjustment shall be made in
(x) the maximum number and kind of Shares reserved for issuance under or
otherwise referred to in the Plan, (y) the number and kind of Shares or other
securities subject to any then-outstanding options under the Plan, and (z) the
price for each Share subject to any then-outstanding options under the Plan,
without changing the aggregate purchase price as to which such options remain
exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant
to this Section 15 if such adjustment (A) would cause any Incentive Stock Option
granted under the Plan to fail to qualify as an Incentive Stock Option within
the meaning of Section 422 of the Code, (B) would cause the Plan or any option
granted under the Plan to fail to comply with Rule 16b-3 (if applicable to the
Plan or such option), or (C) would be considered as the adoption of a new plan
requiring shareholder approval.

         (m) Board Authority to Make Adjustments. Any adjustments under this
Section 15 will be made by the Board or the Committee, whose determination as to
what adjustments, if any, will be made and the extent thereof will be final,
binding and conclusive. No fractional shares will be issued under the Plan on
account of any such adjustments.

16.      No Employment Rights

         Nothing contained in the Plan or in any option agreement shall confer
upon any optionee any right with respect to the continuation of his or her
employment or other relationship with the Company or an Affiliate or interfere
in any way with the right of the Company or an Affiliate at any time to
terminate such employment or relationship or to increase or decrease the
compensation of the optionee.

17.      Amendment, Modification or Termination of the Plan

         (n) The Board may at any time modify, amend or terminate the Plan,
provided that to the extent required by applicable law, any such modification,
amendment or termination shall be subject to the approval of the shareholders of
the Company.

         (o) The modification, amendment or termination of the Plan shall not,
without the consent of an optionee, affect his or her rights under an option
previously granted to him or her. With the consent of the optionee affected, the
Board or the Committee may amend or modify outstanding option agreements in a
manner not inconsistent with the Plan. Notwithstanding the foregoing, the Board
shall have the right (but not the obligation), without the consent of the
optionee affected, to amend or modify (i) the terms and provisions of the Plan
and of any outstanding Incentive Stock Option agreements to the extent necessary
to qualify any or all such options for such favorable federal income tax
treatment (including deferral of taxation upon exercise) as may be

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afforded incentive stock options under Section 422 of the Code, (ii) the terms
and provisions of the Plan and the option agreements entered into in connection
with any outstanding options to the extent necessary to ensure the qualification
of the Plan and such options under Rule 16b-3 (if applicable to the Plan and
such options), and (iii) the terms and provisions of the Plan and the option
agreements entered into in connection with any outstanding options to the extent
that the Board determines necessary to preserve the deduction of compensation
paid to certain optionees who are "covered employees," within the meaning of
Treasury Regulation Section 1.162-27(c)(2), as a result of the grant or exercise
of options under the Plan.

18.      Withholding

         (p) The Company shall have the right to deduct and withhold from
payments or distributions of any kind otherwise due to the optionee any federal,
state or local taxes of any kind required by law to be so deducted and withheld
with respect to any Shares issued upon exercise of options under the Plan.
Subject to the prior approval of the Company, which may be withheld by the
Company in its sole discretion, the optionee may elect to satisfy such
obligations, in whole or in part by (i) causing the Company to withhold Shares
otherwise issuable pursuant to the exercise of an option, (ii) delivering to the
Company Shares already owned by the optionee, or (iii) delivering to the Company
cash or a check to the order of the Company in an amount equal to the amount
required to be so deducted and withheld. The Shares delivered in accordance with
method (ii) above or withheld in accordance with method (i) above shall have a
Fair Market Value equal to such withholding obligation as of the date that the
amount of tax to be withheld is to be determined. An optionee who has made (with
the Company's approval) an election pursuant to method (i) or (ii) of this
Section 18(a) may only satisfy his or her withholding obligation with Shares
which are not subject to any repurchase, forfeiture, unfulfilled vesting or
other similar requirements.

         (q) The acceptance of Shares upon exercise of an Incentive Stock Option
shall constitute an agreement by the optionee (i) to notify the Company if any
or all of such Shares are disposed of by the optionee within two (2) years from
the date the option was granted or within one (1) year from the date the shares
were issued to the optionee pursuant to the exercise of the option, and (ii) if
required by law, to remit to the Company, at the time of and in the case of any
such disposition, an amount sufficient to satisfy the Company's federal, state
and local withholding tax obligations with respect to such disposition, whether
or not, as to both (i) and (ii), the optionee is in the employ of the Company or
an Affiliate at the time of such disposition.

19.      Cancellation and New Grant of Options, etc.

         The Board or the Committee shall have the authority to effect, at any
time and from time to time, with the consent of the affected optionee(s) the (i)
cancellation of any or all outstanding options under the Plan and the grant in
substitution therefor of new options under the Plan (or any successor stock
option plan of the Company) covering the same or different numbers of Shares and
having an option exercise price per Share which may be lower or higher than the
exercise price per share of the cancelled options, or (ii) amendment of the
terms of the option agreements entered into in connection with any and all
outstanding options under the Plan to provide an option exercise price per share
which is higher or lower than the then-current exercise price per Share of such
outstanding options.

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20.      Effective Date and Duration of the Plan

         (r) Effective Date. The Plan shall become effective when adopted by the
Board, but no Incentive Stock Option granted under the Plan shall become
exercisable unless and until the Plan shall have been approved by the Company's
shareholders. If such shareholder approval is not obtained within twelve (12)
months after the date of the Board's adoption of the Plan, no options previously
granted under the Plan shall be deemed to be Incentive Stock Options and no
Incentive Stock Options shall be granted thereafter. Amendments to the Plan
shall become effective as of the latest of (i) the date of adoption by the
Board, (ii) the date set forth in the amendments or (iii) in the case of any
amendment requiring shareholder approval (as set forth in Section 17), the date
such amendment is approved by the Company's shareholders. Notwithstanding the
foregoing, no Incentive Stock Option granted on or after the effective date of
such amendment shall become exercisable unless and until such amendment shall
have been approved by the Company's shareholders. If such shareholder approval
is not obtained within twelve (12) months of the Board's adoption of such
amendment, no options granted on or after the effective date of such amendment
shall be deemed Incentive Stock Options and no Incentive Stock Options shall be
granted thereafter. Subject to above limitations, options may be granted under
the Plan at any time after the effective date of the Plan and before the date
fixed for termination of the Plan.

         (s) Termination. Unless sooner terminated by the Board, the Plan shall
terminate upon the close of business on the day next preceding the tenth
anniversary of the date of its adoption by the Board. After termination of the
Plan, no further options may be granted under the Plan; provided, however, that
such termination will not affect any options granted prior to termination of the
Plan.

21.      Governing Law

         The provisions of this Plan shall be governed and construed in
accordance with the laws of the State of New York without regard to the
principles thereof relating to the conflicts of laws.

                                       9<PAGE>

                                                                    EXHIBIT 10.1

                         Michael Adams Consulting, Inc.
                              200 Broadhollow Road
                            Melville, New York 11747

                                                     As of January 1, 2001

The MACReport.Net
200 Broadhollow Road
Melville, New York 1174

                                Re:  Consulting Agreement
Gentlemen:

         Michael Adams Consulting, Inc. ("Michael Adams") hereby agrees to
provide The MACReport.Net (the "Company") with non-exclusive consulting services
on the following terms and conditions:

         1. Services. Michael Adams, to the extent reasonably required in the
conduct of the business of the Company and at the request of the Company, will
provide consulting services to the Company, including, but not limited to
advising and counseling the Company in its public relations, media relations,
and marketing activities, and cultivating and monitoring the Company's media
coverage.

         2. Time Devoted. Michael Adams will train or keep available an adequate
organization of personnel or outside professionals for the performance of its
services under this Agreement. The foregoing notwithstanding, Michael Adams
shall not be required to devote its full time and attention to the performance
of its services under this Agreement, but shall devote only so much of its time
and attention as it deems reasonable or necessary for such purposes. In
addition, the Company recognizes that Michael Adams presently renders and may
continue to render consulting and other services to other companies which may or
may not conduct activities similar to those of the Company. Michael Adams is
free to render such advice and other services, and the Company hereby consents
thereto.

         3. Fees. In consideration of the services to be performed by Michael
Adams, the Company agrees as follows:

         (a) During the term of this Agreement, the Company shall pay Michael
Adams monthly consulting fee of $25,000, commencing on the date hereof.

         4. Reimbursement of Expenses. During the term of this Agreement, the
Company shall reimburse Michael Adams for all reasonable out-of-pocket expenses
incurred by Michael Adams in connection with its services under this Agreement.
Upon request, Michael Adams shall provide the Company with an itemized account
or other evidence of those expenses

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Michael Adams Consulting, Inc.
As of January 1, 2001
Page 2

for which reimbursement then is being sought, all in form reasonably
satisfactory to the Company.

         5. Representations and Warranties; Additional Covenant.

         (a) The Company represents and warrants to Michael Adams that the
execution and performance of this Agreement by the Company has been duly
authorized, and this Agreement constitutes the valid and binding obligation of
the Company, enforceable in accordance with its terms.

         (b) The Company understands that Michael Adams, without independent
investigation, will rely on information supplied to it by the Company. The
Company covenants that all such information provided to Michael Adams by the
Company shall be true, accurate, complete, and correct in all respects.

         6. Term. The term of this Agreement (the "Term") shall commence on the
date hereof, and shall expire on the first anniversary of the date hereof. The
Term shall automatically renew for successive one-year periods unless either
party gives the other written notice of termination at least ninety (90) days
prior to the end of the then current Term.

         7. Termination.

         (a) Section 6 hereof notwithstanding, either party may terminate this
Agreement at any time upon the occurrence of any of the following events:

               (1) The other party's failure to cure any material breach of this
Agreement within 15 days after written notification of such breach by the other
party.

               (2) The other party ceasing to function as a going concern,
declaring bankruptcy or otherwise taking advantage of insolvency laws.

               (3) The other party engaging in any act or failure to act related
to the subject matter of this Agreement which is determined by a court or other
tribunal of competent jurisdiction to be illegal or an unfair or deceptive trade
practice in violation of applicable law or accepted standards of ethical
conduct.

         8. Limitation of Liability. In performing its services under this
Agreement, neither Michael Adams nor any officer, director, employee,
shareholder, or agent of Michael Adams will be liable to the Company or its
creditors for errors of judgment or for any other acts, except for acts of gross
negligence, willful misconduct, or bad faith of Michael Adams or its employees.
Michael Adams will not be accountable for any loss suffered by the Company by
reason of the Company's action or non action on the basis of any advice,
recommendation, or approval of Michael Adams, its officers, directors,
employees, or agents.

<PAGE>

Michael Adams Consulting, Inc.
As of January 1, 2001
Page 3

         9. Indemnification. The Company shall indemnify and hold harmless
Michael Adams and its officers, directors, employees, stockholders, affiliates,
or agents (collectively, the "Consulting Parties") from and against, for and in
respect of, any and all any liabilities, obligations, damages, claims, expenses
(including reasonable legal fees and disbursements), and costs (collectively,
"Liabilities") incurred by them or any of them that arise out of or in
connection with or that relate to services rendered by pursuant to this
Agreement, except to the extent they arise from the gross negligence, willful
misconduct, or bad faith of the Consulting Parties. Michael Adams shall
indemnify and hold harmless the Company and its officers, directors, employees,
stockholders, agents, and affiliates from and against all Liabilities that
incurred by them or any of them that result from the gross negligence, willful
misconduct, or bad faith of the Consulting Parties in performing the services
hereunder.

         10. Confidentiality. In the course of performing its duties hereunder,
Michael Adams may become aware of confidential information of the Company,
including, but not limited to, trade secrets under the Uniform Trade Secrets
Act, technical product data software programs, software code, designs,
prototypes, methods, techniques, business plans, product pricing, sales goals,
marketing information, customer and vendor lists, and other information not
generally available to the public (collectively, "Confidential Information").
Michael Adams shall maintain in confidence and, except as provided in this
Agreement, not use for its own benefit, directly or indirectly, any Confidential
Information received from tile Company, and shall not publish, disseminate, or
disclose any Confidential Information without the express written permission of
the Company, except to the extent necessary to carry out its duties hereunder.
This obligation shall not apply to Confidential Information which (1) was known
to Michael Adams prior to disclosure by the Company, (2) is disclosed to Michael
Adams by a third party without violation of any obligation of confidentiality to
the Company, or (3) which is in the public domain (other than as a result of a
breach of Michael Adams's obligation of confidentiality). Upon request, all
Confidential Information shall be returned to the Company upon the termination
or expiration of this Agreement, with the exception of a single copy which may
be retained in a confidential file solely for the purpose of determining
compliance with this Section. The covenants contained in this Paragraph 10 shall
expire five (5) years after the termination or expiration of this Agreement,
except that technical information shall be kept confidential indefinitely.

         11. Nature of Relationship. Nothing in this Agreement shall be
construed to place Michael Adams and the Company in the relationship of partners
or joint venturers. Neither Michael Adams nor the Company shall represent itself
as the agent or legal representative of the other for any purpose whatsoever,
nor shall either have the power Michael Adams Consulting, Inc. to obligate or
bind the other in any matter whatsoever. Michael Adams, in performing its
services hereunder, shall at all times be an independent contractor.

         12. Miscellaneous.

         (a) This Agreement shall be construed and enforced in accordance with
the laws of the State of New York without regard to principles of conflicts of
laws. The parties to this Agreement, acting for themselves and for their
respective beneficiaries, heirs,

<PAGE>

Michael Adams Consulting, Inc.
As of January 1, 2001
Page 4

successors, and assigns, without regard to domicile, citizenship, or residence,
hereby expressly and irrevocably elect as the sole judicial forum for the
adjudication of any matters arising under or in connection with this Agreement
the courts of the state of New York located in Nassau County and/or the United
States District Court for the Eastern District of New York, and consent and
subject themselves to the jurisdiction of such courts.

         (b) This Agreement constitutes the entire understanding and agreement
between the parties with respect to its subject matter, and there are no
agreements or understandings with respect to the subject matter that are not
contained in this Agreement. This Agreement may be modified only in writing
signed by each party to this Agreement.

         (c) This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

         (d) It is the desire and intent of the parties that the provisions of
this Agreement shall be enforced to the fullest extent permissible under the
laws and public policies applied in each jurisdiction in which enforcement is
sought. Accordingly, if any particular provision of this Agreement shall be
adjudicated to be invalid or unenforceable, such provision of this Agreement
shall be deemed amended to delete therefrom the portion thus adjudicated to be
invalid or unenforceable, such deletion to apply only with respect to the
operation of such provisions of this Agreement in the particular jurisdiction in
which such adjudication is made. In addition, if the scope of any restriction
contained in this Agreement is too broad to permit enforcement thereof to its
fullest extent in any jurisdiction, then such restriction shall be enforced to
the maximum extent permitted by law in such jurisdiction, and Michael Adams
hereby consents and agrees that such scope may be judicially modified
accordingly in any such jurisdiction in any proceeding brought to enforce such
restriction.

         Please indicate your agreement to and acceptance of the provisions of
this Agreement by signing below.

                                             Very truly yours,

                                             Michael Adams Consulting, Inc.

                                             By: /s/ Vito Lucchetti
                                                 -------------------------------
                                                 Vito Lucchetti, CEO

Agreed and accepted as of
the date above written:

The MACReport.Net

By: /s/ Vito Lucchetti
    ----------------------

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