Document:

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                                                                     EXHIBIT 4.2

                              HEALTH GRADES, INC.
                         1996 EQUITY COMPENSATION PLAN

         The purpose of the Health Grades, Inc. 1996 Equity Compensation Plan
(the "Plan") is to provide (i) designated employees (including employees who are
also officers or directors) of Health Grades, Inc. (the "Company") and its
subsidiaries, (ii) certain consultants and advisors to the Company or its
subsidiaries and (iii) non-employee members of the Board of Directors of the
Company (the "Board") with the opportunity to receive grants of incentive stock
options and nonqualified stock options ("Options"). The Company believes that
the Plan will encourage the participants to contribute materially to the growth
of the Company, thereby benefiting the Company's shareholders, and will align
the economic interests of the participants with those of the shareholders.

         1.       Administration

                  (a) The Plan may be administered by the Board or by a
committee (the "Committee") or two or more directors appointed by the Board.
Notwithstanding the foregoing, the Board of Directors shall exercise the powers
of the Committee with respect to the grant of options to members of the Board
who are not employees of the Company or its subsidiaries or who are members of
the Committee ("Non-Employee Directors"). With respect to employees who are not
officers of the Company, the Board of Directors may delegate certain Committee
powers to a Non-Officer Grant Committee pursuant to the provisions of Section 18
hereof. If no administrative committee is appointed, all references in the Plan
to the "Committee" shall be deemed to refer to the Board.

                  (b) The Committee shall have the sole authority to (i)
determine the individuals to whom Options shall be granted under the Plan, (ii)
determine the type, size and terms of the Options to be granted to each such
individual, (iii) determine the time when the Options will be granted and the
duration of any applicable exercise period, including the criteria for
exercisability and the acceleration of exercisability and (iv) deal with any
other matters arising under the Plan.

                  (c) The Committee shall have full power and authority to
administer and interpret the Plan, to make factual determinations and to adopt
or amend such rules, regulations, agreements and instruments for implementing
the Plan and for the conduct of its business as it deems necessary or advisable,
in its sole discretion. The Committee's interpretations of the Plan and all
determinations made by the Committee pursuant to the powers vested in it
hereunder shall be conclusive and binding on all persons having any interest in
the Plan or in any awards granted hereunder. All powers of the Committee shall
be executed in its sole discretion, in the best interest of the Company, not as
a fiduciary, and in keeping with the objectives of the Plan and need not be
uniform as to similarly situated individuals.

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         2.       Options

                  Options granted under the Plan may be incentive stock options
("Incentive Stock Options") or nonqualified stock options ("Nonqualified Stock
Options") as described in Section 5. All Options shall be subject to the terms
and conditions set forth herein and to such other terms and conditions
consistent with the Plan as the Committee deems appropriate and as are specified
in writing by the Committee to the individual in a grant instrument (the "Grant
Instrument") or an amendment to the Grant Instrument. The Committee shall
approve the form and provisions of each Grant Instrument.

         3.       Shares Subject to the Plan

                  (a) Subject to the adjustment specified below, the aggregate
number of shares of common stock of the Company ("Company Stock") that may be
issued under the Plan is 13,000,000 shares. If the Company Stock becomes
publicly traded as a result of a public offering under the Securities Act of
1933, as amended, the maximum aggregate number of shares of Company Stock that
shall be subject to Options granted under the Plan to any individual during any
calendar year shall be 2,000,000 shares. The shares may be authorized but
unissued shares of Company Stock or reacquired shares of Company Stock,
including shares purchased by the Company on the open market for purposes of the
Plan. If and to the extent Options granted under the Plan terminate, expire, or
are canceled, forfeited, exchanged or surrendered without having been exercised,
the shares subject to such Options shall again be available for purposes of the
Plan.

                  (b) If there is any change in the number or kind of shares of
Company Stock outstanding (i) by reason of a stock dividend, spin off,
recapitalization, stock split, or combination or exchange of shares, (ii) by
reason of a merger, reorganization or consolidation in which the Company is the
surviving corporation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event affecting
the outstanding Company Stock as a class without the Company's receipt of
consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company's payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Options, the maximum number of shares of Company Stock for
which any individual participating in the Plan may receive Options in any year,
the number of shares covered by outstanding Options, the kind of shares issued
under the Plan, and the price per share of such Options shall be appropriately
adjusted by the Committee to reflect any increase or decrease in the number of,
or change in the kind or value of, issued shares of Company Stock to preclude,
to the extent practicable, the enlargement or dilution of rights and benefits
under such Options; provided, however, that any fractional shares resulting from
such adjustment shall be eliminated. Any adjustments determined by the Committee
shall be final, binding and conclusive.

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         4.       Eligibility for Participation

                  (a) All employees of the Company and its subsidiaries
("Employees"), including Employees who are officers or members of the Board, and
Non-Employee Directors shall be eligible to participate in the Plan. Consultants
and advisors who perform services to the Company or any of its subsidiaries
("Key Advisors") shall be eligible to participate in the Plan if the Key
Advisors render bona fide services and such services are not in connection with
the offer or sale of securities in a capital-raising transaction. The term "Key
Advisors" shall include personnel of medical practices that have entered into
and remain subject to management agreements with the Company or any subsidiary,
and the provision of services to those practices shall be considered the
performance of services with respect to the Company for purposes of the Plan.

                  (b) The Committee shall select the Employees, Non-Employee
Directors and Key Advisors to receive Options and shall determine the number of
shares of Company Stock subject to a particular grant in such manner as the
Committee determines. Employees, Key Advisors and Non-Employee Directors who
receive Options under this Plan shall hereinafter be referred to as "Grantees".

         5.       Granting of Options

                  (a) Number of Shares. The Committee shall determine the number
of shares of Company Stock that will be subject to each grant of Options to
Employees, Non-Employee Directors and Key Advisors.

                  (b) Type of Option and Price.

                           (i)      The Committee may grant Incentive Stock
                                    Options that are intended to qualify as
                                    "incentive stock options" within the meaning
                                    of section 422 of the Internal Revenue Code
                                    of 1986, as amended (the "Code"), or
                                    Nonqualified Stock Options that are not
                                    intended so to qualify, or any combination
                                    of Incentive Stock Options and Nonqualified
                                    Stock Options, all in accordance with the
                                    terms and conditions set forth herein.
                                    Incentive Stock Options may be granted only
                                    to Employees. Nonqualified Stock Options may
                                    be granted to Employees, Non-Employee
                                    Directors and Key Advisors.

                           (ii)     The purchase price (the "Exercise Price") of
                                    Company Stock subject to an Option shall be
                                    determined by the Committee and may be equal
                                    to, greater than, or less than the Fair
                                    Market Value (as defined below) of a share
                                    of such Stock on the date the Option is
                                    granted; provided, however, that (x) the
                                    Exercise Price of an Incentive Stock Option
                                    shall be equal to, or greater than, the Fair
                                    Market Value of a share of Company Stock on
                                    the date the Incentive Stock Option is
                                    granted and (y) an Incentive Stock

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                                    Option may not be granted to an Employee
                                    who, at the time of grant, owns stock
                                    possessing more than 10 percent of the total
                                    combined voting power of all classes of
                                    stock of the Company or any parent or
                                    subsidiary of the Company, unless the
                                    Exercise Price per share is not less than
                                    110% of the Fair Market Value of Company
                                    Stock on the date of grant.

                           (iii)    If Company Stock is publicly traded, then
                                    the Fair Market Value per share shall be
                                    determined as follows: (x) if the principal
                                    trading market for the Company Stock is a
                                    national securities exchange or the Nasdaq
                                    National Market, the last reported sale
                                    price thereof on the relevant date or, if
                                    there were no trades on that date, the
                                    latest preceding date upon which a sale was
                                    reported, or (y) if the Company Stock is not
                                    principally traded on such exchange or
                                    market, the mean between the last reported
                                    "bid" and "asked" prices of Company Stock on
                                    the relevant date, as reported on Nasdaq or,
                                    if not so reported, as reported by the
                                    National Daily Quotation Bureau, Inc. or as
                                    reported in a customary financial reporting
                                    service, as applicable and as the Committee
                                    determines. If the Company Stock is not
                                    publicly traded or, if publicly traded, not
                                    subject to reported transactions or "bid" or
                                    "asked" quotations as set forth above, the
                                    Fair Market Value per share shall be as
                                    determined by the Committee.

                  (c) Option Term. The Committee shall determine the term of
each Option. The term of any Option shall not exceed ten years from the date of
grant. However, an Incentive Stock Option that is granted to an Employee who, at
the time of grant, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company, or any parent or
subsidiary of the Company, may not have a term that exceeds five years from the
date of grant.

                  (d) Exercisability of Options. Options shall become
exercisable in accordance with such terms and conditions, consistent with the
Plan, as may be determined by the Committee and specified in the Grant
Instrument or an amendment to the Grant Instrument. The Committee may accelerate
the exercisability of any or all outstanding Options at any time for any reason.

                  (e) Termination of Employment, Disability or Death.

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                           (i)      Except as provided below, an Option may only
                                    be exercised while the Grantee is employed
                                    by, or providing service to, the Company as
                                    an Employee, Key Advisor or member of the
                                    Board. In the event that a Grantee ceases to
                                    be employed by, or provide service to, the
                                    Company for any reason other than
                                    "disability", death, or "termination for
                                    cause", any Option which is otherwise
                                    exercisable by the Grantee shall terminate
                                    unless exercised within 90 days of the date
                                    on which the Grantee ceases to be employed
                                    by, or provide service to, the Company (or
                                    within such other period of time as may be
                                    specified by the Committee), but in any
                                    event no later than the date of expiration
                                    of the Option term. Unless otherwise
                                    specified by the Committee, any portion of
                                    the Grantee's Option that is not otherwise
                                    exercisable as of the date on which the
                                    Grantee ceases to be employed by or provide
                                    service to the Company shall terminate as of
                                    such date.

                           (ii)     In the event the Grantee ceases to be
                                    employed by, or provide service to, the
                                    Company on account of a "termination for
                                    cause" by the Company, any Option held by
                                    the Grantee shall terminate as of the date
                                    the Grantee ceases to be employed by, or
                                    provide service to, the Company.

                           (iii)    In the event the Grantee ceases to be
                                    employed by, or provide service to, the
                                    Company because the Grantee is "disabled",
                                    any Option which is otherwise exercisable by
                                    the Grantee shall terminate unless exercised
                                    within one year after the date on which the
                                    Grantee ceases to be employed by, or provide
                                    service to, the Company (or within such
                                    other period of time as may be specified by
                                    the Committee), but in any event no later
                                    than the date of expiration of the Option
                                    term. Any of the Grantee's Options which are
                                    not otherwise exercisable as of the date on
                                    which the Grantee ceases to be employed by,
                                    or provide service to, the Company shall
                                    terminate as of such date.

                           (iv)     If the Grantee dies while employed by, or
                                    providing service to, the Company or within
                                    90 days after the date on which the Grantee
                                    ceases to be employed, or provide service,
                                    on account of a termination of employment or
                                    service specified in Section 5(e)(i) above
                                    (or within such other period of time as may
                                    be specified by the Committee), any Option
                                    that is otherwise exercisable by the Grantee
                                    shall terminate unless exercised within one
                                    year after the date on which the Grantee
                                    ceases to be employed by, or provide service
                                    to, the Company (or within such other period
                                    of time as may be specified by the
                                    Committee), but in any event no later than

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                                    the date of expiration of the Option term.
                                    Any of the Grantee's Options that are not
                                    otherwise exercisable as of the date on
                                    which the Grantee ceases to be employed by,
                                    or provide service to, the Company shall
                                    terminate as of such date.

                           (v)      For purposes of this Section 5(e):

                                    (1)     The term "Company" shall mean the
                                            Company and its parent and
                                            subsidiary corporations. With
                                            respect to personnel employed by
                                            medical practices that have entered
                                            into, and remain subject to,
                                            management agreements with the
                                            Company or any subsidiary, the term
                                            "Company" shall include any such
                                            medical practice, but only so long
                                            as the practice remains subject to
                                            such management agreement.

                                    (2)     "Employed by, or providing service
                                            to, the Company" shall mean
                                            employment as an Employee or the
                                            provision of services to the Company
                                            as a Key Advisor or member of the
                                            Board (so that, for purposes of
                                            exercising Options, a Grantee shall
                                            not be considered to have terminated
                                            employment or ceased to provide
                                            services until the Grantee ceases to
                                            be an Employee, Key Advisor and
                                            member of the Board).

                                    (3)      "Disability" shall mean a Grantee's
                                             becoming disabled within the
                                             meaning of section 22(e)(3) of the
                                             Code.

                                    (4)     "Termination for cause" shall mean a
                                            finding by the Committee that the
                                            Grantee has breached his or her
                                            employment or service contract with
                                            the Company, or has been engaged in
                                            disloyalty to the Company,
                                            including, without limitation,
                                            fraud, embezzlement, theft,
                                            commission of a felony or proven
                                            dishonesty in the course of his or
                                            her employment or service, or has
                                            disclosed trade secrets or
                                            confidential information of the
                                            Company to persons not entitled to
                                            receive such information. In the
                                            event a Grantee's employment or
                                            service is terminated for cause, in
                                            addition to the immediate
                                            termination of all Options, the
                                            Grantee shall automatically forfeit
                                            all shares underlying any exercised
                                            portion of an Option for which the
                                            Company has not yet delivered the
                                            share certificates, upon refund by
                                            the Company of the Exercise Price
                                            paid by the Grantee for such shares.

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                  (f) Exercise of Options. A Grantee may exercise an Option that
has become exercisable, in whole or in part, by delivering a notice of exercise
to the Company with payment of the Exercise Price. The Grantee shall pay the
Exercise Price for an Option (i) in cash or by check or wire transfer in
immediately available funds, (ii) by delivering shares of Company Stock owned by
the Grantee (including Company Stock acquired in connection with the exercise of
an Option, subject to such restrictions as the Committee deems appropriate) and
having a Fair Market Value on the date of exercise equal to the Exercise Price
or (iii) by such other method as the Committee may approve, including payment
through a broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board. Shares of Company Stock used to exercise an Option shall
have been held by the Grantee for the requisite period of time to avoid adverse
accounting consequences to the Company with respect to the Option. The Grantee
shall pay the Exercise Price and the amount of any withholding tax due (pursuant
to Section 6) at the time of exercise. Shares of Company Stock shall not be
issued upon exercise of an Option until the Exercise Price is fully paid and any
required withholding is made.

                  (g) Limits on Incentive Stock Options. Each Incentive Stock
Option shall provide that, if the aggregate Fair Market Value of the stock on
the date of the grant with respect to which Incentive Stock Options are
exercisable for the first time by a Grantee during any calendar year, under the
Plan or any other stock option plan of the Company or a parent or subsidiary,
exceeds $100,000, then the option, as to the excess, shall be treated as a
Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any
person who is not an Employee of the Company or a parent or subsidiary (within
the meaning of section 424(f) of the Code). If and to the extent that an Option
designated as an Incentive Stock Option fails so to qualify under the Code, the
Option shall remain outstanding according to its terms as a Nonqualified Stock
Option.

         6.       Withholding of Taxes

                  (a) Required Withholding. All Options under the Plan shall be
granted subject to any applicable federal (including FICA), state and local tax
withholding requirements. The Company shall have the right to deduct from wages
paid to the Grantee any federal, state or local taxes required by law to be
withheld with respect to Options, or the Company may require the Grantee or
other person receiving shares upon exercise of an Option to pay to the Company
the amount of any such taxes that the Company is required to withhold.

                  (b) Election to Withhold Shares. If the Committee so permits,
a Grantee may elect to satisfy the Company's income tax withholding obligation
with respect to an Option by having shares withheld up to an amount that does
not exceed the Grantee's maximum marginal tax rate for federal (including FICA),
state and local tax liabilities. The election must be in a form and manner
prescribed by the Committee and shall be subject to the prior approval of the
Committee.

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         7.       Transferability of Options

                  (a) Except as provided below, only the Grantee or his or her
authorized representative may exercise rights under an Option. A Grantee may not
transfer those rights except by will or by the laws of descent and distribution
or, with respect to Nonqualified Options, if permitted in any specific case by
the Committee in its sole discretion, pursuant to a qualified domestic relations
order (as defined under the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the rules thereunder). When a Grantee dies,
the representative or other person entitled to succeed to the rights of the
Grantee ("Successor Grantee") may exercise such rights. A Successor Grantee must
furnish proof satisfactory to the Company of his or her right to receive the
Grant under the Grantee's will or under the applicable laws of descent and
distribution.

                  (b) Notwithstanding the foregoing, the Committee may provide,
in a Grant Instrument, that a Grantee may transfer Nonqualified Stock Options to
family members or other persons or entities according to such terms as the
Committee may determine.

         8        Change of Control of the Company

                  As used herein, a "Change of Control" shall be deemed to have
occurred if:

                  (a) After the effective date of the Plan, any "person" (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes a
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing 35% or more of the
voting power of the then outstanding securities of the Company, except where the
acquisition is approved by the Board;

                  (b) The shareholders of the Company approve (or, if
shareholder approval is not required, the Board approves) an agreement providing
for (i) the merger or consolidation of the Company with another corporation
where the shareholders of the Company, immediately prior to the merger or
consolidation, will not beneficially own, immediately after the merger or
consolidation, shares entitling such shareholders to a majority of all votes to
which all shareholders of the surviving corporation would be entitled in the
election of directors, or where the members of the Board, immediately prior to
the merger or consolidation, would not, immediately after the merger or
consolidation, constitute a majority of the board of directors of the surviving
corporation, (ii) a sale or other disposition of all or substantially all of the
assets of the Company, or (iii) a liquidation or dissolution of the Company;

                  (c) Any person has commenced a tender offer or exchange offer
for 35% or more of the voting power of the then outstanding shares of the
Company; or

                  (d) After this Plan is approved by the shareholders of the
Company, directors are elected such that a majority of the members of the Board
shall have been members of the Board for less than two years, unless the
election or nomination for election of each new director who was not a director
at the beginning of such two-year period was approved by a vote of at

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least two-thirds of the directors then still in office who were directors at the
beginning of such period.

         9.       Consequences of a Change of Control

                  (a) Upon a Change of Control, unless the Committee determines
otherwise, (i) the Company shall provide each Grantee with outstanding Options
written notice of such Change of Control and (ii) all outstanding Options shall
automatically accelerate and become fully exercisable.

                  (b) In addition, upon a Change of Control described in Section
8(b)(i) where the Company is not the surviving corporation (or survives only as
a subsidiary of another corporation), unless the Committee determines otherwise,
all outstanding Options that are not exercised shall be assumed by, or replaced
with comparable options by, the surviving corporation. Any replacement options
shall entitle the Grantee to receive the same amount and type of securities as
the Grantee would have received as a result of the Change of Control had the
Grantee exercised the Options immediately prior to the Change of Control.

                  (c) Notwithstanding the foregoing, subject to subsection (d)
below, in the event of a Change of Control, the Committee may require that
Grantees surrender their outstanding Options in exchange for a payment by the
Company, in cash or Company Stock as determined by the Committee, in an amount
equal to the amount by which the then Fair Market Value of the shares of Company
Stock subject to the Grantee's outstanding Options exceeds the Exercise Price of
the Options.

                  (d) Notwithstanding the foregoing, the Committee making the
determinations under this Section 9 following a Change of Control must be
comprised of the same members as those on the Committee immediately before the
Change of Control. If the Committee members do not meet this requirement, the
automatic provisions of Subsections (a) and (b) shall apply, and the Committee
shall not have discretion to vary them.

                  (e) Notwithstanding anything in the Plan to the contrary, in
the event of a Change of Control, the Committee shall not have the right to take
any actions described in the Plan (including without limitation actions
described in Subsection (c) above) that would make the Change of Control
ineligible for pooling of interest accounting treatment or that would make the
Change of Control ineligible for desired tax treatment if, in the absence of
such right, the Change of Control would qualify for such treatment and the
Company intends to use such treatment with respect to the Change of Control.

         10.      Amendment and Termination of the Plan

                  (a) Amendment. The Board may amend or terminate the Plan at
any time; provided, however, that if the Company Stock becomes publicly traded,
the Board shall not amend the Plan without shareholder approval if such approval
is required by Section 162(m) of the Code and if Section 162(m) is applicable to
the Plan.

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                  (b) Termination of Plan. The Plan shall terminate on the day
immediately preceding the tenth anniversary of its effective date unless
terminated earlier by the Board or unless extended by the Board with the
approval of the shareholders.

                  (c) Termination and Amendment of Outstanding Options. A
termination or amendment of the Plan that occurs after an Option is granted
shall not materially impair the rights of a Grantee unless the Grantee consents
or unless the Committee acts under Section 17(b). The termination of the Plan
shall not impair the power and authority of the Committee with respect to an
outstanding Option. Whether or not the Plan has terminated, an outstanding
Option may be terminated or modified under Sections 9 and 17(b) or may be
amended by agreement of the Company and the Grantee consistent with the Plan.

                  (d) Governing Document. The Plan shall be the controlling
document. No other statements, representations, explanatory materials or
examples, oral or written, may amend the Plan in any manner. The Plan shall be
binding upon and enforceable against the Company and its successors and assigns.

         11.      Funding of the Plan

                  This Plan shall be unfunded. The Company shall not be required
to establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Options under this Plan. In no event shall
interest be paid or accrued on any Options.

         12.      Rights of Participants

                  Nothing in this Plan shall entitle any Employee, Key Advisor
or other person to any claim or right to be granted an Option under this Plan.
Neither this Plan nor any action taken hereunder shall be construed as giving
any individual any rights to be retained by or in the employ of the Company or
any other employment rights.

         13.      No Fractional Shares

                  No fractional shares of Company Stock shall be issued or
delivered pursuant to the Plan or any Option. The Committee shall determine
whether cash, other awards or other property shall be issued or paid in lieu of
such fractional shares or whether such fractional shares or any rights thereto
shall be forfeited or otherwise eliminated.

         14.      Requirements for Issuance of Shares

                  No Company Stock shall be issued or transferred in connection
with any Option hereunder unless and until all legal requirements applicable to
the issuance or transfer of such Company Stock have been complied with to the
satisfaction of the Committee. The Committee shall have the right to condition
any Option granted to any Grantee hereunder on such Grantee's

<PAGE>

undertaking in writing to comply with such restrictions on his or her subsequent
disposition of such shares of Company Stock as the Committee shall deem
necessary or advisable as a result of any applicable law, regulation or official
interpretation thereof and certificates representing such shares may be legended
to reflect any such restrictions. Certificates representing shares of Company
Stock issued under the Plan will be subject to such stop-transfer orders and
other restrictions as may be applicable under such laws, regulations and
interpretations, including any requirement that a legend or legends be placed
thereon.

         15.      Headings

                  Section headings are for reference only. In the event of a
conflict between a title and the content of a Section, the content of the
Section shall control.

         16.      Effective Date of the Plan.

                  Subject to the approval of the Company's shareholders, this
Plan shall be effective on October 15, 1996.

         17.      Miscellaneous

                  (a) Options in Connection with Corporate Transactions and
Otherwise. Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to grant Options under this Plan in connection with the
acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including options
granted to employees thereof who become Employees of the Company, or for other
proper corporate purpose, or (ii) limit the right of the Company to grant stock
options or make other awards outside of this Plan. Without limiting the
foregoing, the Committee may grant Options to an employee of another corporation
who becomes an Employee by reason of a corporate merger, consolidation,
acquisition of stock or property, reorganization or liquidation involving the
Company or any of its subsidiaries in substitution for a stock option or
restricted stock grant made by such corporation. The Committee shall prescribe
the provisions of the substitute Options.

                  (b) Compliance with Law. The Plan, the grant and exercise of
Options, and the obligations of the Company to issue or transfer shares of
Company Stock under Options shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required. The
Committee may revoke any Grant if it is contrary to law or modify a Grant to
bring it into compliance with any valid and mandatory government regulation. The
Committee may also adopt rules regarding the withholding of taxes on payments to
Grantees. The Committee may, in its sole discretion, agree to limit its
authority under this Section.

                  (c) Ownership of Stock. A Grantee or Successor Grantee shall
have no rights as a shareholder with respect to any shares of Company Stock
covered by an Option until the shares are issued or transferred to the Grantee
or Successor Grantee on the stock transfer records of the Company.

<PAGE>

                  (d) Governing Law. The validity, construction, interpretation
and effect of the Plan and Grant Instruments issued under the Plan shall
exclusively be governed by and determined in accordance with the law of the
State of Delaware.

         18.      Non-Officer Grant Committee

                  The Board of Directors may establish a Non-Officer Grant
Committee which, notwithstanding anything in this Plan to the contrary, shall
have the power, solely with respect to employees of the Company that are not
officers of the Company, to grant options, subject to the following terms and
limitations:

                  (a) The Non-Officer Grant Committee may grant options only in
connection with the hiring of new employees or in connection with the promotion
of employees to non-officer positions.

                  (b) The maximum number of shares of Company Stock underlying
option grants made to any individual employee by the Non-Officer Grant Committee
may not exceed 25,000 in any calendar year.

                  (c) The Non-Officer Grant Committee shall grant Incentive
Stock Options to the extent permissible under the Code; otherwise, such options
shall be Non-Qualified Stock Options.

                  (d) The Non-Officer Grant Committee may set such vesting terms
with respect to the options as it deems appropriate; provided, however, that no
more than one-third of the shares of Company Stock underlying an option (subject
to adjustment to avoid fractional shares) may vest in any calendar year, and no
options may vest until the first anniversary of the date of grant.

                  (e) The Exercise Price per share of any options granted by the
Non-Officer Grant Committee shall be at least equal to the Fair Market Value of
a share of Company Stock on the date of grant.

                  (f) The Non-Officer Grant Committee may provide for an option
term shorter than ten years.

                  (g) In all other respects, the options granted by the
Non-Officer Grant Committee shall be governed by the terms of the Grant
Instruments relating to Incentive Stock Options or Non-Qualified Stock Options,
as appropriate and in the form then authorized by the Committee.

                  (h) The Non-Officer Grant Committee powers shall be as
enumerated in this section; the Non-Officer Grant Committee shall not otherwise
perform the functions of the Committee under this Plan.

<PAGE>

                  (i) The Committee may also grant options to non-officer
employees in accordance with the provisions of the Plan.

                  (j) The maximum number of shares underlying options that may
be granted by the Non-Officer Grant Committee in any calendar quarter shall not
exceed 100,000.

Amended :         June 5, 1997
                  July 25, 1997
                  September 12, 1997
                  June 5, 1998
                  March 27, 2000
                  April 25, 2000
                  June 20, 2000
                  June 18, 2001
                  February 7, 2002Exhibit 10.1

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

                                              AGREEMENT

         This Agreement,  made and effective as of January 24, 2002 ("the Effective Date") is by and
between:

         NEW YORK UNIVERSITY  (hereinafter  "NYU"),  a corporation  organized and existing under the
laws of the State of New York and having a place of  business at 70  Washington  Square  South,  New
York, New York 10012

                                                 AND

         St. Lawrence Seaway Corporation  (hereinafter  "CORPORATION"),  a corporation organized and
existing under the laws of the State of Indiana having its principal  office at 320 N. Meridian St.,
Suite 818, Indianapolis, Indiana.

                                              RECITALS

         WHEREAS, NYU is willing to perform the NYU Research Project (as hereinafter defined);

         WHEREAS, CORPORATION is prepared to sponsor the NYU Research Project;

         NOW,  THEREFORE,  in consideration of the mutual promises and agreements  contained herein,
the parties hereto hereby agree as follows:

     1. DEFINITIONS

         Whenever used in this Agreement, the following terms shall have the following meanings:

         a.  "License  Revenue"  shall mean any money or other  consideration  received  by NYU from
             licensing,  assigning,  or otherwise  commercializing  the NYU Patents (as  hereinafter
             defined), including, but not limited to license issuance or maintenance fees, royalties
             on sales, and milestone and success or achievement  payments,  but expressly  excluding
             any funding NYU receives,  the use of which is  restricted to fund further  research at
             NYU related to the NYU Research Project,  or reimbursement for patent or other expenses
             incurred by NYU related to the NYU Patents. License Revenue shall not include any stock
             NYU receives from licensing the NYU Patents,  unless and until such stock is or becomes
             publicly  traded through  registration  under the Securities Act of 1933, or otherwise,
             but shall  include any net cash  proceeds  NYU receives  from  selling such  non-public
             stock, at such time as NYU at its sole discretion sells such stock.

____________________________________________________________________________________________________
                                                                                              Page 1

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

         b.  "NYU  Patents"  shall mean U.S.  Patent  Application  Serial No.  60/225.618,  entitled
             "Androgen  Receptor  Transcriptional  Coregulatory  Proteins  as Targets  for  Androgen
             Receptor-Dependent   Diseases"  and  any  non-provisional,   continuation,   successor,
             divisional, or foreign counterpart application thereof, or any patents issuing thereon.

         c.  "NYU Research  Project" shall mean the  investigations  during the Research  Period (as
             hereinafter  defined) under the supervision of Drs. Michael Garabedian and Samir Taneja
             (hereinafter "the NYU Scientists") in accordance with the research  program,  described
             in annexed Appendix I, which forms an integral part hereof.

         d.  "Option" shall mean the option for CORPORATION to fund the NYU Research  Project during
             the third,  fourth,  and fifth years  following the Effective  Date, in accordance with
             Paragraph 4.b.

         e.  "Option Period" shall mean the period of twenty-one (21) months following the Effective
             Date;  provided however that (i) if CORPORATION  exercises its Option to fund the third
             year of the NYU Research  Project  pursuant to Paragraph  4.b,  then the Option  Period
             shall be extended to be the period of thirty (30) months  following the Effective Date;
             and  (ii) if  CORPORATION  exercises  its  Option  to fund the  fourth  year of the NYU
             Research  Project  between  pursuant to Paragraph  4.b, then the Option Period shall be
             extended to be the period of forty-two (42) months following the Effective Date.

         f.  "Research  Period"  shall mean two (2) year period  commencing  on the  Effective  Date
             hereof and, if  CORPORATION  exercises the Option in accordance  with Paragraph 4.b, an
             additional  period of up to three  (3) years  ("Additional  Years")  commencing  on the
             second anniversary of the Effective Date.

     2. EFFECTIVE DATE

             This  Agreement  shall be effective as of the  Effective  Date and shall remain in full
             force and effect until it expires or is terminated in accordance with Section 9 hereof.

     3. PERFORMANCE OF THE NYU RESEARCH PROJECT

         a.  In  consideration  of the sums to be paid to NYU as set forth in  Section 4 below,  NYU
             undertakes  to  perform  the NYU  Research  Project  under the  supervision  of the NYU
             Scientists  during the Research Period.  If, during the Research Period both of the NYU

____________________________________________________________________________________________________
                                                                                              Page 2

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

             Scientists shall cease to supervise the NYU Research  Project,  then NYU shall endeavor
             to find from among the  scientists  of NYU a  scientist  or  scientists  acceptable  to
             CORPORATION to continue the supervision of the NYU Research Project in place of the NYU
             Scientists  ("Successor  Scientists").  Such  Successor  Scientists  are to be in place
             within forty-five (45) days, provided,  however, that nothing herein contained shall be
             deemed to impose an obligation on NYU to find a replacement for the NYU Scientists, and
             in such event Corporation's sole remedy will be to terminate this Agreement.

         b.  Nothing contained in this Agreement shall be construed as a warranty on the part of NYU
             that any  results  will be achieved by the NYU  Research  Project,  or that the results
             achieved, if any, are or will be commercially exploitable and furthermore, NYU makes no
             warranties which may be achieved in the NYU Research Project.

         c.  Within  sixty (60) days after the end of each year of the  Research  Period,  NYU shall
             prepare a written  report  summarizing  the  results of the work  conducted  on the NYU
             Research Project during the preceding year ("Research Report").

         d.  NYU will have full  authority  and  responsibility  for the NYU Research  Project.  All
             students  and  employees  of NYU who  work on the NYU  Research  Project  will do so as
             employees or students of NYU, and not as employees of CORPORATION.

     4. FUNDING OF THE NYU RESEARCH PROJECT.

         a.  As compensation to NYU for work to be performed on the NYU Research  Project during the
             Research Period,  CORPORATION will pay NYU the total sum of $200,000 payable in 8 equal
             consecutive quarterly  installments of $25,000 each, commencing upon the Effective Date
             and on or before the beginning of each quarter year  thereafter  during the term of the
             Research Period.

         b.  CORPORATION  shall have the Option,  exercisable only by written notice to NYU prior to
             the expiration of the Option Period, to fund the NYU Research Project during the third,
             fourth,  and fifth years  following the Effective  Date. The CORPORATION may during the
             Option Period elect (i) to fund the third,  fourth, and fifth years of the NYU Research
             Project  or (ii) to fund the third year of the NYU  Research  Project.  If  CORPORATION
             exercises  its  Option  to  fund  the  third  year of the NYU  Research  Project,  then
             CORPORATION  shall have the further Option to fund the NYU Research,  then  CORPORATION

____________________________________________________________________________________________________
                                                                                              Page 3

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

             shall have the further  Option to fund the NYU Research  Project for the fourth year of
             the NYU  Research  Project  and the Option  Period  shall be  extended  as set forth in
             Paragraph  1.e(i).  If CORPORATION  exercises its Option to fund the fourth year of the
             NYU Research  Project,  then CORPORATION  shall have the further Option to fund the NYU
             Research  Project for the fifth year of the NYU Research  Project and the Option Period
             shall be extended as set forth in Paragraph  1.e(ii).  If  CORPORATION so exercises its
             Option,  CORPORATION  will pay NYU $100,000 for each  additional year that it funds the
             NYU Research  Project,  for a total  additional sum of $300,000 if all three additional
             years of the NYU Research Project are funded by the CORPORATION,  all to be in addition
             to the amounts paid under  Paragraph  4.a.,  and to be payable in 12 equal  consecutive
             quarterly  installments of $25,000 each,  commencing upon the second anniversary of the
             Effective  Date and on or before the beginning of each quarter year  thereafter  during
             the term of the Research Period.  Notwithstanding anything else herein, the CORPORATION
             may earlier  exercise  the Option to fund all  Additional  Years at any time within the
             Option  Period,  including any  extensions of the Option Period as defined in Paragraph
             1.e(i) or 1.e(ii).

         c.  Nothing in this  Agreement  shall be interpreted to prohibit NYU (or the NYU Scientist)
             from obtaining  additional  financing or research  grants for the NYU Research  Project
             from government  agencies,  which grants or financing may render all or part of the NYU
             Research  Project  and the  results  thereof  subject to the patent  rights of the U.S.
             Government  and its agencies,  as set forth in Title 35 U.S.C.  Section 200 et seq., or
             from any other entity,  provided that such  agreement or financing  does not modify the
             CORPORATION's rights hereunder.

     5. TITLE

         a.  All right,  title and  interest,  in and to any  results,  drawings,  plans,  diagrams,
             specifications,  and other documents arising out of the NYU Research Project shall vest
             solely in NYU.

         b.  Any and all inventions  made by the NYU  Scientists  and/or by employees or students of
             NYU shall be owned solely by NYU.

____________________________________________________________________________________________________
                                                                                              Page 4

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

     6. PATENTS AND PATENT APPLICATIONS

         a.  NYU shall prosecute the NYU Patents at its own expense and shall use reasonable efforts
             to prosecute and protect the NYU Patents,  but shall otherwise take such actions in its
             sole discretion.

         b.  Nothing herein contained shall be deemed to be a warranty by NYU that

                i) NYU can or will be able to obtain any patent or patents on any patent application
             or  applications  in the NYU  Patents or any  portion  thereof,  or that any of the NYU
             Patents will afford adequate or commercially worthwhile protection, or

                ii) that the  manufacture,  use, or sale of any element of the NYU Patents  will not
             infringe any patent(s) of a third party.  If NYU shall receive  infringement  indemnity
             from a party seeking to license and commercialize  the NYU Patents,  NYU shall endeavor
             to have such indemnity available to the CORPORATION.

         c.  If at any time during the term of this Agreement NYU decides that it is undesirable, as
             to one or more countries,  to prosecute or maintain any patents or patent  applications
             within the NYU Patents,  it shall give written notice thereof to CORPORATION,  and upon
             receipt of such  notice  CORPORATION  shall have the right by written  notice to NYU to
             have NYU  continue to  prosecute  or  maintain  such  patent  application  or patent at
             CORPORATION's expense.

     7.  COMMERCIALIZATION OF NYU PATENTS.

         a.  NYU  shall  have the  sole  right  to  commercialize  the NYU  Patents  at  NYU's  sole
             discretion,  through licensing or assigning the NYU Patents to for-profit third parties
             or  otherwise,  and at the  request  of the  CORPORATION,  shall  keep the  CORPORATION
             reasonably apprised of decisions and actions in this regard.

         b.  NYU shall pay to CORPORATION a percentage of any License Revenue  actually  received by
             NYU equal to:

                i) One and one-half  percent (1.5%) if CORPORATION has not previously  exercised the
             Option; and

                ii) An additional  three-quarters  percent (0.75%) for each of the Additional  Years
             for which the  Corporation  has exercised  the Option,  for a total amount of three and
             three-quarters  percent (3.75%) if CORPORATION has previously  exercised the Option for
             all three Additional Years.

____________________________________________________________________________________________________
                                                                                              Page 5

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

         c.  NYU shall pay  CORPORATION  any amounts due under  Paragraph 7.b within sixty (60) days
             after receipt by NYU of any License Review.

         d.  CORPORATION  shall have no right to undertake any use of the NYU Patents and shall have
             no license to the NYU Patents.

     8. PUBLICATION

         a.  NYU and the NYU Scientist shall be free to publish the results of the Research Project.

     9. EXPIRY AND TERMINATION

         a.  Unless  earlier  terminated  pursuant to this Section 9.b or 9.c below,  this  Research
             Agreement will terminate upon the expiration of the Research Period;  provided that the
             provisions  of Sections 7, 8, 11, 12, 13 and 14 hereof shall survive and remain in full
             force and effect after any expiration,  cancellation  or of this  Agreement,  including
             early termination as set forth below.

         b.  At any time prior to expiration of this Agreement  pursuant to Section 9.a. hereof, any
             party may terminate this Agreement for cause, as "cause" is described  below, by giving
             written notice to the other party. Cause for termination by one party of this Agreement
             shall be deemed to exist if the other  party  materially  breaches  or  defaults in the
             performance or observance of any of the provisions of this Agreement and such breach or
             default is not cured within  sixty (60) days after  receipt of written  notice  thereof
             from the  non-breaching  party.  In  addition,  CORPORATION  shall  have  the  right to
             terminate this Agreement (i) on written notice if Successor Scientists are not retained
             as  required  by Section  3(a),  or (ii) on written  notice if NYU gives  notice  under
             Section 6(c) that it wishes to discontinue  prosecution  and maintenance of all patents
             and patent applications within the NYU Patents in the United States.

         c.  Any  party to this  Agreement  may,  upon  giving  notice of  termination,  immediately
             terminate this Agreement upon receipt of notice that any party has become  insolvent or
             has  suspended  business or has filed a voluntary  petition or an answer  admitting the
             jurisdiction  of the U.S.  Bankruptcy  Court in the  material  allegations  of,  or has
             consented to, an involuntary  petition  purporting to be pursuant to any reorganization
             or insolvency  law of any  jurisdiction,  or has made an assignment  for the benefit of
             creditors or has applied for or consented to the  appointment  of a receiver or trustee
             for a substantial part of its property.

____________________________________________________________________________________________________
                                                                                              Page 6

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

         d.  Any amount payable hereunder by CORPORATION to NYU, which has not been paid by the date
             on which such  payment is due,  shall  bear  interest  from such date until the date on
             which such payment is made,  at the rate of two percent (2%) per annum in excess of the
             prime rate prevailing at the Citibank,  N.A., in New York, New York,  during the period
             of arrears.

         e.  Termination  of this  Agreement  shall not relieve the parties of any obligation to the
             other party incurred prior to such termination.

     10. NO ASSIGNMENT

             Neither CORPORATION nor NYU shall have the right to assign, delegate or transfer at any
             time to any  party  other  than an  Affiliate,  in whole or in part,  any or all of the
             rights,  duties and interest herein granted without first obtaining the written consent
             of the other to such assignment,  which consent shall not be unreasonably  withheld. As
             used herein,  the term  "Affiliate"  shall mean any company or other legal entity which
             controls,  or is controlled by, or is under common  control with, the assigning  party;
             control means the holding of greater than fifty percent (50%) of (i) the capital and/or
             (ii) the voting rights and/or (iii) the right to elect or appoint directors.

     11. CONFIDENTIAL INFORMATION

             CORPORATION  shall  maintain  any  and all  results  of the NYU  Research  Project  and
             information related to the NYU Patents provided by NYU hereunder ("NYU Information") in
             confidence  and shall not release or disclose  any  tangible  or  intangible  component
             thereof to any third party without first  receiving the prior written consent of NYU to
             said release or disclosure . This obligation of confidentiality  shall not apply to any
             component  of the NYU  Information  which is party of the  public  domain  prior to the
             Effective Date of this Agreement,  or which becomes a part of the public domain not due
             to some unauthorized act by or omission of CORPORATION after the Effective Date of this
             Agreement,  or which is disclosed to  CORPORATION by a third party who has the right to
             make such disclosure,  or the disclosure of which is required by law or judicial order,
             including the rules and regulations of the Securities and Exchange Commission.

____________________________________________________________________________________________________
                                                                                              Page 7

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

     12. USE OF NAME

             Without the prior written consent of the other party, neither CORPORATION nor NYU shall
             use the name of the other  party or any  adaptation  thereof  or of any  staff  member,
             employee or student, of the other party:

                i) in any product labeling, advertising, promotional or sales literature;

                ii) in connection with any public  offering or private  placement  documentation  or
             prospectus or in  conjunction  with any  application  for regulatory  approval,  unless
             disclosure  is  otherwise  required by law, in which case either party may make factual
             statements concerning the Agreement or file copies of the Agreement after providing the
             other party with an opportunity to comment and reasonable time within which to do so on
             such statement in draft.  Except as provided  herein,  neither NYU nor CORPORATION will
             issue public  announcements  about this Agreement or the status or existence of the NYU
             Research Project without prior written approval of the other party.

     13. MISCELLANEOUS

         a.  In carrying  out this  Agreement  the parties  shall  comply with all local,  state and
             federal laws and  regulation  including but not limited to, the  provisions of Title 35
             United States Code Section 200 et seq. and 15 CFR Section 368 et seq.

         b.  If any provision  this  Agreement is  determined  to be invalid or void,  the remaining
             provisions shall remain in effect.

         c.  This Agreement  shall be deemed to have been made in the State of New York and shall be
             governed and interpreted in all respects under the laws of the State of New York.

         d.  Any dispute  arising under this Agreement  shall be resolved in an action in the courts
             of New York State or the  federal  courts  located in New York  State,  and the parties
             hereby consent to personal jurisdiction of such courts in any such action.

         e.  All payments or notices required or permitted to be given under this Agreement shall be
             given in writing and shall be effective when either personally  delivered or deposited,
             postage  prepaid,  in the United  States  registered  or certified  mail,  addressed as
             follows:

____________________________________________________________________________________________________
                                                                                              Page 8

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

                           To NYU:  New York University School of Medicine
                                    Office of Industrial Liaison
                                    550 First Avenue
                                    New York, NY  10016
                                    Attention:       Abram Goldfinger
                                                     Executive Director,
                                                     Industrial Liaison/Technology Transfer

                                    and

                                    Office of Legal Counsel
                                    New York University
                                    Bobst Library
                                    70 Washington Square South
                                    New York, NY  10012
                                    Attention:       Annette B. Johnson
                                                     Vice Dean and Senior Counsel for
                                                     Medical School Affairs

                           To CORPORATION:

                                    Ned Grier
                                    Gracie Capital
                                    527 Madison Avenue, 11th Floor
                                    New York, NY  10022

                                    and

                                    Joseph Mazella, Esq.
                                    Nutter McClennen & Fish LLP
                                    One International Place
                                    Boston, MA  02110

             or such other address or addresses as either party may be hereafter  specify by written
             notice to the other. Such notices and  communications  shall be deemed effective on the
             date of  delivery  or  fourteen  (14) days  after  having  been sent by  registered  or
             certified mail, whichever is earlier.

         f.  This Agreement (and the annexed Appendices) constitute the entire Agreement between the
             parties and no  variation,  modifications  or waiver of any of the terms or  conditions
             hereof shall be deemed valid unless made in writing and signed by both parties  hereto.
             This Agreement supersedes any and all prior agreements or understandings,  whether oral
             or written, between CORPORATION and NYU.

____________________________________________________________________________________________________
                                                                                              Page 9

THE ST. LAWRENCE SEAWAY CORPORATION - 8-K - Current Report                      Date Filed: 2/8/2002
____________________________________________________________________________________________________

         g.  No waiver by either party of any non-performance or violation by the other party of any
             of the  covenants,  obligations  or agreements of such other party  hereunder  shall be
             deemed to be waiver of any subsequent  violation or  non-performance of the same or any
             other covenant,  agreement or obligation,  nor shall forbearance by any party be deemed
             to be a waiver by such party of its rights or remedies  with respect to such  violation
             or non-performance.

         h.  The descriptive  headings  contained in this Agreement are included for convenience and
             reference  only and shall not be held to expand,  modify or aid in the  interpretation,
             construction or meaning of this Agreement.

         i.  It is not the intent of the  parties  to create a  partnership  or joint  venture or to
             assume partnership responsibility or liability. The obligations of the parties shall be
             limited to those set out herein and such obligations shall be several and not joint.

         IN WITNESS  WHEREOF,  the parties hereto have executed this  Agreement  effective as of the
date and year first above written.

                                                     NEW YORK UNIVERSITY

                                                     By: /s/ Abram Goldfinger
                                                         -------------------------------
                                                          Abram Goldfinger
                                                          Executive Director,
                                                          Industrial Liaison/Technology Transfer

                                                     Date:    9/6/01
                                                           ------------

                                                     CORPORATION

                                                     By: /s/  Joel Greenblatt
                                                         -------------------------------------------
                                                     Name: Joel Greenblatt
                                                     Title: Chief Executive Officer & Chairman

                                                     Date:    1/24/02
                                                           ------------

____________________________________________________________________________________________________
                                                                                             Page 10

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