Joseph S. Rozpad and Kathleen M. Rozpad - Page 3

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               On June 21, 1989, at the Memorial Hospital in Providence,              
          Rhode Island, Dr. Douglas J. Glod operated on Mrs. Rozpad's right           
          foot.  Mrs. Rozpad was scheduled, however, to have an operation             
          on her left foot.  The Rozpads filed a medical malpractice claim            
          in the Superior Court of Rhode Island against the Memorial                  
          Hospital and Dr. Glod.  The Rozpads settled their dispute with              
          the Memorial Hospital, but did not settle with Dr. Glod.                    
               On May 8, 1992, a jury rendered a verdict against Dr. Glod             
          and awarded $2 million to Mrs. Rozpad and $65,000 to Mr. Rozpad.            
          As required by R.I. Gen. Laws sec. 9-21-10 (1985), the court                
          added statutory prejudgment interest to the awards.  On May 18,             
          1992, Dr. Glod filed a motion for a new trial or, in the                    
          alternative, a remittitur of the judgment.  On August 19, 1992,             
          the trial court ordered a new trial, solely on the issue of                 
          damages, unless Mrs. Rozpad agreed to remit all of the jury's               
          verdict in excess of $650,000.  On August 27, 1992, Mrs. Rozpad             
          consented to the remittitur.  On September 14, 1992, the trial              
          court entered judgments for Mrs. Rozpad and Mr. Rozpad of                   
          $650,000 and $65,000, respectively, plus statutory prejudgment              
          interest totaling $250,250.                                                 
               Following the judgment, the Rozpads and Dr. Glod settled               
          their dispute.  The settlement agreement required Dr. Glod to pay           
          the Rozpads $800,000 for a release and discharge of any and all             
          past and future claims.  During the settlement negotiations, the            

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