Document:

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                                                                   Exhibit 10.23

                             EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT ("AGREEMENT") dated as of September 6, 2000 by and
between Aetna Inc., a Connecticut corporation, and John W. Rowe, M.D.
("EXECUTIVE") (certain capitalized terms used herein being defined in Article
7).

         WHEREAS, the Board desires to employ Executive in the positions and on
the terms and conditions set forth below, and the Executive desires to accept
such employment; and

         WHEREAS, pursuant to the Merger Agreement Aetna Inc. will be selling
its financial services business and distributing to its shareholders both a cash
dividend and all of the equity securities of its health care business, Aetna
U.S. Healthcare Inc., a Pennsylvania corporation (the "HEALTH CARE BUSINESS")
which, following the consummation of the transactions contemplated by the Merger
Agreement (the "COMPLETION"), will change its name to Aetna Inc.

         WHEREAS, the Company and Executive desire to enter into this Agreement
embodying the terms of such employment;

         NOW THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement, and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

                                    ARTICLE 1

                           POSITION; TERM OF AGREEMENT

         SECTION 1.01. Position. (a) On September 15, 2000 (the "EFFECTIVE
DATE"), Executive shall commence service as the chief executive officer and
president of the Health Care Business and as a member of the Board.

          (b) (i) Upon Completion, Executive shall become the Chief Executive
Officer of the Public Company and, not later than December 31, 2001, shall
become Chairman of the Board.

              (ii) Failing Completion not later than June 30, 2001, Executive
shall become Chief Executive Officer of the Company and, not later than December
31, 2001, shall become Chairman of the Board.
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          (c) In such positions, Executive shall have such duties and authority,
consistent with such positions, as shall be determined from time to time by the
Board; provided, that after Executive becomes Chief Executive Officer of the
Company he shall be the highest ranking executive of the Company and shall
report only to the Board.

          (d) Starting on the Effective Date, during the Employment Term
Executive will devote substantially all of his business time to the performance
of his duties hereunder and will not engage in any other business, profession or
occupation for compensation or otherwise which would conflict with the rendition
of such services either directly or indirectly, without the prior written
consent of the Board; provided that nothing herein shall be deemed to preclude
Executive, subject to the prior written consent of the Board, from serving on
any business, civic or charitable board, as long as such activities do not
materially interfere with the performance of Executive's duties hereunder. If
the Company concludes that it is desirable, upon Company's request Executive
will resign from any boards of directors on which he serves.

         SECTION 1.02. Term. Executive shall be employed by the Company for a
period commencing on the Effective Date and, subject to earlier termination or
extension as provided herein, ending on December 31, 2003 (the "EMPLOYMENT
TERM"). On December 31, 2003 and December 31, 2004, the Employment Term shall
automatically be extended for one additional year unless not later than 180 days
prior to such date the Company or Executive shall have given written notice of
its or his intention not so to extend the Employment Term.

                                    ARTICLE 2

                            COMPENSATION AND BENEFITS

         SECTION 2.01. Base Salary. Starting on the Effective Date, the Company
shall pay Executive an annual base salary (the "BASE SALARY") at the initial
annual rate of $1,000,000, payable in equal monthly installments or otherwise in
accordance with the payroll and personnel practices of the Company from time to
time. Base Salary shall be reviewed annually by the Board or a committee thereof
to which the Board may from time to time have delegated such authority (the
"COMMITTEE") for possible increase (but not decrease) in the sole discretion of
the Board or the Committee, as the case may be.

         SECTION 2.02. Bonus. Subject in each case to Executive's continued
employment as contemplated hereby:

         (a) (i) With respect to each fiscal year all or part of which is
contained in the Employment Term, Executive shall be eligible to participate in
the Company's annual incentive plan, with a target bonus opportunity of 150% of
Base Salary, a threshold bonus opportunity of 75% of Base Salary and a maximum
bonus opportunity of 300% of Base Salary or such other greater amount as the
Committee may determine in its sole

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discretion. Except as provided in Section 2.02(a)(ii) or as may be payable
pursuant to Article 3, Executive is not guaranteed the payment of any annual
bonus.

              (ii) Notwithstanding the foregoing, Executive shall be entitled to
a minimum annual bonus (x) for 2000 of $375,000 and (y) for 2001 of $1,000,000
subject, in each case, to Executive being employed by the Company on the last
day of such year.

          (b) Beginning in 2001, Executive shall be eligible to participate in
the Company's long-term incentive program, with a target long-term award
opportunity of 150% of Base Salary or such greater amount as the Committee may
determine in its sole discretion. As further compensation, Executive will be
eligible, beginning in 2001, to participate in the other compensation
arrangements, including equity-based programs, in which substantially all senior
executives of the Company are generally eligible to participate.

          (c) The Company shall pay to Executive on or as soon as reasonably
practicable after the Effective Date a $2,000,000 sign-on bonus.

          (d) The Company shall pay to Executive on July 3, 2001 a retention
bonus of $1,400,000 (the "RETENTION AMOUNT").

         SECTION 2.03. Initial Option and Restricted Stock Unit Grants. (a) (i)
The Company shall cause the grant on the Effective Date to Executive of (x)
options to purchase 300,000 shares of the Company's common stock with a per
share exercise price equal to 100% of the fair market value of such shares on
the Effective Date (the "BASIC OPTIONS") and (y) options to purchase 200,000
shares of the Company's common stock with a per share exercise price of 133% of
the fair market value of such shares on the Effective Date (the "PREMIUM
OPTIONS"), which options shall, in each case, have a ten (10) year term,
post-termination exercise provisions that, except as otherwise provided herein,
are comparable to such provisions in the form of option previously provided to
Executive, and become exercisable in 3 equal annual installments commencing on
the first anniversary of the Effective Date subject to the Executive's continued
employment hereunder (the exercisability of such awards not to be accelerated by
the Completion) (collectively, "PROVISIONS"). Such grants shall be equitably
adjusted in a manner consistent with the FASB Emerging Issues Task Force Issue
No. 90-9 to reflect the Completion (the adjustment ratio used therefore, the
"ADJUSTMENT RATIO") provided that if such adjustment and the Second Tranche
described in (ii) below would result in the aggregate number of shares
underlying such options exceeding 2,000,000, then a sufficient number of options
shall be cancelled for no consideration to eliminate such excess, such
cancellations, if any, to be first with respect to the Second Tranche, next to
the extent necessary with respect to the Premium Options and last with respect
to the Basic Options.

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                  (ii) On the earlier of (A) immediately after Completion or (B)
         January 1, 2001, the Company shall cause the grant (or if such grant is
         to be made after Completion, shall use its best efforts to cause the
         grant) to Executive of options to purchase 100,000 shares of the
         Company's common stock (multiplied by the Adjustment Ratio if such
         earlier date is the date of the Completion) having the Provisions and
         having a per share exercise price equal to (x) the exercise price of
         the Premium Options (as adjusted in the case of the grant referred to
         in (A) above) or (y) if higher, the fair market value of the underlying
         shares on the grant date (the "SECOND TRANCHE"). Such Second Tranche
         may also include any additional equitable award as the Committee may,
         in its sole discretion, determine.

                  (iii) In the event that, in connection with the Completion,
         the equitable adjustment of the Basic and Premium Options does not
         result in the aggregate amount of such adjusted grants and the Second
         Tranche relating to, after Completion, at least 1,000,000 shares of the
         Company's common stock, the Company shall cause a supplemental grant of
         Company stock options to be made to Executive having the Provisions and
         having an exercise price as to half of such options which is the same
         as for the adjusted Basic Options (or, if higher, the fair market value
         of the underlying shares on the grant date) and as to the other half of
         such options which is the same as for the Second Tranche, such that the
         aggregate number of shares of Company common stock underlying (x) the
         adjusted Basic and Premium Options, (y) the Second Tranche and (z) such
         supplemental option grant shall equal 1,000,000.

          (b) Company shall cause the grant to Executive of 25,000 restricted
stock units on the Effective Date, which units shall vest, subject to
Executive's continued employment with the Company, in three equal annual
installments commencing on the first anniversary of the Effective Date (the
vesting of such award not to be accelerated by the Completion). Such grant,
which shall include dividend equivalent rights and shall be subject to elective
deferral, shall be equitably adjusted entirely into restricted stock units of
Public Company stock to reflect the Completion and shall not entitle the
Executive to a cash distribution upon Completion.

         SECTION 2.04. Life Insurance. During the Employment Term, Company shall
pay an annual premium of $63,000 on life insurance covering Executive and
payable to beneficiaries designated by Executive.

         SECTION 2.05. Employee Benefits. (a) During the Employment Term
Executive shall be eligible for employee benefits (including fringe benefits,
vacation, pension and profit sharing plan participation and life, health,
accident and disability insurance) no less favorable than those benefits made
available generally to senior executives of the Company.

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          (b) On the Effective Date, Executive shall be eligible, upon
termination of employment other than for Cause, for the Company's retiree
medical care benefits under the Company's Medical Plans as in effect from time
to time and, for purposes of eligibility for subsidized benefits thereunder,
shall be credited with two years of service for each full year of service of
Executive with the Company commencing on the Effective Date.

          (c) Upon attaining age 65, Executive shall be entitled to a single
life annuity for his lifetime under the Company's supplemental non-qualified
defined benefit plan of not less than $300,000, offset by the single life
annuity equivalent amount, using the factors identified in said supplemental
non-qualified defined benefit plan, attributable to Company contributions to the
Company's qualified and non-qualified defined contribution and defined benefit
plans (the "PENSION BENEFITS"). Executive shall vest in the Pension Benefits,
subject to continued employment with the Company, in five (5) equal annual
installments commencing on the Effective Date. The Pension Benefit shall be
payable in the form and at the times provided, from time to time, in the
Retirement Plan.

         SECTION 2.06. Business Expenses; Travel; Office. (a) Reasonable travel,
entertainment and other business expenses incurred by Executive in the
performance of his duties hereunder shall be reimbursed by the Company in
accordance with Company policies as in effect from time to time. Executive shall
have access to Company-provided ground and air transportation including, without
limitation, helicopter flights between Hartford, Connecticut and New York, New
York.

          (b) In addition to providing Executive with appropriate office
facilities and support at the Company's headquarters, which shall be Executive's
principal job location, the Company shall make available to Executive office
facilities and support in New York, N.Y.

                                    ARTICLE 3
                                CERTAIN BENEFITS

         SECTION 3.01. Certain Events. (a) A "QUALIFYING EVENT" means any of the
following events:

                  (i) The involuntary termination of Executive's employment by
         the Company, other than (x) for Cause, or (y) by reason of Executive's
         death or Disability; or

                  (ii) Executive's voluntary termination of employment for Good
         Reason, provided that such termination occurs within 90 days after the
         occurrence of any event constituting Good Reason.

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         SECTION 3.02. Right to Certain Benefits. (a) In the event of any
termination of employment during the Employment Term, Executive shall be
entitled to receive from the Company either the Severance Benefits to the extent
and as described in Section 3.03 or the relevant Separation Benefits to the
extent and as described in Section 3.04, as the case may be.

          (b) (i) In the event that a Change in Control occurs during the
Employment Term, subject to Article 4, the stock options and restricted stock
unit awards referred to in Section 2.03 above (collectively, "AWARDS") shall
become immediately vested, nonforfeitable and exercisable as of the date of the
Change in Control and shall remain exercisable until the earlier of (x) the
expiration date of such Award, any termination of employment notwithstanding,
and (y) in the event of any termination of Executive's employment with the
Company, the later of the first anniversary of the date of such termination and
the last date on which such Award would otherwise have been exercisable (such
earlier date, the "TERMINATION DATE").

          (ii) In the event that a Qualifying Event occurs during the Employment
Term, (A) all Awards held by Executive shall become immediately vested,
nonforfeitable and exercisable as of the date of such Event and shall remain
exercisable until the Termination Date and (B) with respect to all other equity
based awards made to Executive during the Employment Term, Executive shall be
credited for vesting purposes with deemed service during the Continuation Period
(in the case of a Qualifying Event occurring during the 24 months following a
Change in Control) or the Payment Period, as the case may be, and such awards
shall remain exercisable for such period as shall be specified in the relevant
plan and/or award document.

         (iii) Each party hereto shall give to the other party 30 days prior
written notice of such party's intent to terminate Executive's employment with
the Company.

         SECTION 3.03. Benefits upon a Qualifying Event after a Change in
Control. Except to the extent provided in Article 4, Section 6.07 and Section
6.08, Executive shall be entitled to the following benefits (the "SEVERANCE
BENEFITS") upon a Qualifying Event within 24 months following a Change in
Control:

         (a) The Company shall pay Executive as soon as practicable a lump sum,
in cash, equal to (i) Executive's earned but unpaid Base Salary and other vested
but unpaid cash entitlements for the period through and including the date of
termination of Executive's employment, including unused earned vacation pay and
unreimbursed documented business expenses (collectively, "ACCRUED COMPENSATION")
and (ii) an amount equal to the product of Executive's annual target bonus
opportunity for the year in which Executive's employment terminates (the "BASIC
BONUS AMOUNT") times a fraction, the numerator of which is the number of days in
such year through the date of termination and the denominator of which is 365
(the "PRO-RATA BONUS AMOUNT"). In addition, Executive shall be entitled to any
other vested benefits earned by Executive for

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the period through and including the date of termination of Executive's
employment under any other employee benefit plans and arrangements maintained by
the Company, in accordance with the terms of such plans and arrangements, except
as modified herein (collectively, "ACCRUED BENEFITS").

          (b) The Company shall pay Executive as soon as practicable a lump sum
amount in cash equal to three times the sum of the amounts set forth in Clauses
(i) and (ii) below:

                  (i) Executive's Base Salary at its highest annual rate in
         effect during the period beginning immediately prior to the date of the
         Change in Control to which such Qualifying Event relates and ending on
         the date of such Qualifying Event; and

                  (ii) the Executive's Basic Bonus Amount.

          (c) In addition, Executive shall be entitled to the benefits set forth
below through and in respect of the period ending on the third anniversary of
the Qualifying Event (the "CONTINUATION PERIOD"):

                  (i) Continued participation in and service credit of one year
         of service for each full year in the Continuation Period under the
         Company's Medical Plans and other welfare benefits plans under the
         terms thereof and hereof;

                  (ii) Payment of the Retention Amount, if not previously paid
         to Executive; and,

                  (iii) Full vesting of the Pension Benefits, if any, and of the
         Executive's previously accrued benefits under the Company's qualified
         and non-qualified defined benefit and defined contribution plans (the
         "RETIREMENT ACCRUALS").

         SECTION 3.04. Separation Payments. Except to the extent provided in
Section 6.07 and Section 6.08, Executive shall be entitled to the benefits set
forth below (the "SEPARATION BENEFITS") upon termination of employment other
than as set forth in Section 3.03:

          (a) Upon any such termination of employment other than by reason of
death or Disability, including Executive's voluntary termination of employment
with or without Good Reason or upon termination of Executive's employment with
or without Cause, Executive shall be entitled to:

                  (i) The Accrued Compensation; and

                  (ii) The Accrued Benefits.

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          (b) Upon a Qualifying Event prior to or more than 24 months after a
Change in Control, the Company shall pay Executive:

                  (i) Cash compensation through the second anniversary of such
         Qualifying Event (the "PAYMENT PERIOD") in equal installments during
         the Payment Period in accordance with the applicable Company payroll
         system, in an amount equal to two times the sum of (i) the Base Salary
         as in effect at the time of such termination and (ii) the Basic Bonus
         Amount;

                  (ii) The Pro-Rata Bonus Amount;

                  (iii) Continued participation in and service credit of one
         year of service for each full year in the Payment Period under the
         Company's Medical Plans and other welfare benefit plans during the
         Payment Period;

                  (iv) Full vesting of the Retirement Accruals and service
         credit for the Payment Period for purposes of calculating the Pension
         Benefits, if any; and

                  (v) The Retention Amount, if not previously paid to Executive.

          (c) Upon termination of Executive's employment by reason of death or
Disability, Executive shall be entitled to:

                  (i) The Accrued Compensation;

                  (ii) The Accrued Benefits; and

                  (iii) Full vesting of the Retirement Accruals.

         SECTION 3.05. Non-Renewal Payments. In the event of the expiration of
the Employment Term on December 31, 2003 or 2004 as a result of the delivery of
the Company's notice of its intention not to extend the Employment Term pursuant
to Section 1.02, Executive shall be entitled to:

          (a) The Accrued Compensation;

          (b) The Accrued Benefits;

          (c) A lump sum cash payment of $3,000,000 if such expiration shall
occur on December 31, 2003 or $1,500,000 if such expiration shall occur on
December 31, 2004; and

          (d) Full vesting of the Pension Benefits, if any, and of the
Retirement Accruals.

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                                    ARTICLE 4

                       CERTAIN TAX REIMBURSEMENT PAYMENTS

         SECTION 4.01. Initial Determinations by Accounting Firm. In the event
that a Change in Control occurs or is expected to occur, the Company shall
retain a national accounting firm selected by the Company and reasonably
acceptable to Executive (the "ACCOUNTING FIRM") to perform the calculations
contemplated by this Article 4. The Accounting Firm shall have discretion to
retain an independent appraiser with adequate expertise (the "APPRAISER") to
provide any valuations necessary for the Accounting Firm's calculations
hereunder. The Company shall pay all the fees and costs associated with the work
performed by the Accounting Firm and any Appraiser retained by the Accounting
Firm. If the Accounting Firm has performed services for any person, entity or
group in connection with the Change in Control, Executive may select an
alternative national accounting firm to be the Accounting Firm. If the Appraiser
otherwise performs work for any of the entities involved in the Change in
Control or their affiliates (or has performed work for any such entity within
the three years preceding the calculations hereunder), then Executive may select
an alternative appraiser of national stature with adequate expertise to be the
Appraiser. The Accounting Firm shall provide promptly to both the Company and
Executive a written report setting forth the calculations required under this
Agreement, together with a detail of all relevant supportive data, valuations
and calculations. All determinations of the Accounting Firm shall be binding on
Executive and the Company. When making the calculations required hereunder,
Executive shall be deemed to pay: (x) Federal income taxes at the highest
applicable marginal rate of Federal income taxation for the taxable year for
which any such calculation is made; and (y) any applicable state and local
income taxes at the highest applicable marginal rate of taxation for the taxable
year for which any such calculation is made, net of the maximum reduction in
Federal income taxes which could be obtained from deduction of such state and
local taxes.

         The Accounting Firm shall determine (the "INITIAL DETERMINATION"):

          (a) the aggregate amount of all payments, benefits and distributions
provided to Executive or for Executive's benefit, whether paid or payable or
distributed or distributable pursuant to the terms of the Agreement or any other
agreement, plan or arrangement of the Company or otherwise (other than any
payment pursuant to this Article 4) which are in the nature of compensation and
contingent upon a Change in Control (valued pursuant to Section 280G of the
Code) (collectively the "PAYMENTS"); and

          (b) the maximum amount of the Payments Executive would be entitled to
receive without being subject to the excise tax imposed by Section 4999 of the
Code (the "PAYMENT CAP") (such excise tax, together with any interest or
penalties with respect to such excise tax, are hereinafter collectively referred
to as the "EXCISE TAX").

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         SECTION 4.02.  Initial Treatment of Payments.

          (a) If the amount of the Payments does not exceed the Payment Cap,
Executive shall be entitled to receive the full amount of the Payments.

          (b) If the amount of the Payments exceeds the Payment Cap by less than
5% of the Payment Cap amount, then, notwithstanding anything to the contrary,
the amount of the Payments payable to Executive shall be reduced to the amount
of the Payment Cap. In the event that the Payments are subject to reduction
hereunder, Executive shall have the right to designate which of the Payments
will be reduced or eliminated.

          (c) If the amount of the Payments exceeds the Payment Cap by 5% or
more of the Payment Cap amount, then the amount of the Payments Executive is
entitled to receive shall not be reduced and the Company shall pay to Executive
an additional payment (a "GROSS-UP PAYMENT") in an amount such that after
payment by Executive of all taxes (including any interest and penalties imposed
with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up
Payment Executive retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payments. All determinations required to be made as to
whether a Gross-Up Payment is required and the amount of such Gross-Up Payment
shall be made by the Accounting Firm.

         SECTION 4.03. Redeterminations Based on IRS or Court Ruling. If after
the date of the Initial Determination (A) Executive becomes entitled to receive
additional Payments (including, without limitation, severance) contingent upon
the same Change in Control, or (B) Executive becomes subject to the terms of any
final binding agreement between Executive and the Internal Revenue Service or
any decision of a court of competent jurisdiction which is not appealable or for
which the time to appeal has lapsed (a "FINAL DETERMINATION") and which is
contrary the Initial Determination, then based upon such additional Payments or
such Final Determination (as the case may be), the Accounting Firm shall
recalculate: (i) the aggregate Payments (such recalculated amount, the
"REDETERMINED PAYMENTS"); and (ii) the maximum amount of the Redetermined
Payments Executive would be entitled to receive without being subject to the
excise tax imposed by Section 4999 of the Code (the "REDETERMINED PAYMENT CAP")
(such excise tax, together with any interest or penalties with respect to such
excise tax, are hereinafter referred to as the "REDETERMINED EXCISE TAX").

         SECTION 4.04.  Reconciliations Based on Redeterminations.

          (a) If the Redetermined Payment Cap is greater than the Payment Cap
(and Executive's Payments were reduced pursuant to Section 4.02(b)), then the
Company shall promptly pay Executive the amount by which the Redetermined
Payment Cap exceeds the Payment Cap, together with interest on such difference
at the applicable Federal rate (as

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defined in Section 1274(d) of the Code)(the "FEDERAL RATE") from the original
Payment due date to the date of actual payment of the difference by the Company.

          (b) If the aggregate value of the Redetermined Payments exceeds the
Redetermined Payment Cap by less than 5%, then, notwithstanding anything to the
contrary, the amount of the Redetermined Payments that Executive is entitled to
receive and retain shall be reduced to the amount of the Redetermined Payment
Cap. In the event that the Redetermined Payments are subject to reduction under
this paragraph and any such portion of the Redetermined Payments have not yet
been paid to Executive, Executive shall have the right to designate which
portion of such unpaid Redetermined Payments should be reduced or eliminated. If
Executive has previously received any Payments in excess of the Redetermined
Payment Cap, such excess Payments shall be deemed for all purposes to be a loan
to Executive made on the date of receipt of such excess Payments, which
Executive shall have an obligation to repay to the Company on demand, together
with interest on such amount at the applicable Federal rate (as defined in
Section 1274(d) of the Code) from the date of Executive's receipt of such excess
Payments to the date of repayment by Executive. Notwithstanding the foregoing,
if any portion of such excess Payments which is to be refunded to the Company
has been paid to any Federal, state or local tax authority, repayment thereof
shall not be required until actual refund or credit of such portion has been
made to Executive, and interest payable to the Company shall not exceed interest
received or credited to Executive by such tax authority for the period it held
such portion. In addition, if, pursuant to a Final Determination, any such
excess Payments are not deemed a loan and as a result Executive is subject to
Redetermined Excise Tax, then Executive shall be treated as if the aggregate
value of the Redetermined Payments exceeds the Redetermined Payment Cap by more
than 5% under Section 4.04(c) and Executive shall be entitled to the
Supplemental Gross-Up Payment, subject to all the attendant conditions set forth
below.

          (c) If the aggregate value of the Redetermined Payments exceeds the
Redetermined Payment Cap by more than 5%, then the amount of the Redetermined
Payments Executive is entitled to receive and retain shall not be reduced and
the Company shall pay to Executive an additional payment (a "SUPPLEMENTAL
GROSS-UP PAYMENT") in an amount such that after payment by Executive of all
taxes (including any interest and penalties imposed with respect to such taxes),
including any Redetermined Excise Tax, imposed on the Supplemental Gross-Up
Payment Executive retains an amount of the Supplemental Gross-Up Payment equal
to the Redetermined Excise Tax imposed upon the Redetermined Payments; provided
that if Executive has previously received a Gross-Up Payment, the amount of the
Supplemental Gross-Up Payment shall be reduced by the amount of the Gross-Up
Payment Executive previously received, so that Executive will be fully
reimbursed, but will not receive duplicative reimbursements. If, however, the
Excise Tax exceeds the Redetermined Excise Tax, the excess Gross-Up Payment that
has been paid to Executive shall be deemed for all purposes to be a loan to
Executive made on the date of receipt of such excess Gross-Up Payment, which
Executive shall have an obligation to repay to the Company on demand, together
with

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interest on such amount at the applicable Federal rate (as defined in Section
1274(d) of the Code) from the date of Executive's receipt of such excess
Gross-Up Payment to the date of repayment by Executive. Notwithstanding the
foregoing, in the event any portion of the Gross-Up Payment to be refunded to
the Company has been paid to any Federal, state or local tax authority,
repayment thereof shall not be required until actual refund or credit of such
portion has been made to Executive, and interest payable to the Company shall
not exceed interest received or credited to Executive by such tax authority for
the period it held such portion. Executive and the Company shall mutually agree
upon the course of action to be pursued (and the method of allocating the
expenses thereof) if Executive's good faith claim for refund or credit is
denied.

         SECTION 4.05.  Procedures with Respect to IRS Claims.

          (a) Executive shall notify the Company in writing of any claim by the
Internal Revenue Service relating to any unpaid excise tax applicable to the
Payments. Such notification shall be given as soon as practicable but no later
than twenty business days after Executive knows of such claim and shall apprise
the Company of the nature of such claim, any assessment under such claim and the
date on which such assessment is requested to be paid. Executive shall not pay
such claim prior to the expiration of the thirty day period following the date
on which Executive gives such notice to the Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due).

          (b) If the Company notifies Executive in writing prior to the
expiration of such period that it desires to contest such claim, Executive
shall:

                  (i) give the Company any information reasonably requested by
         the Company relating to such claim,

                  (ii) take such action in connection with contesting such claim
         as the Company shall reasonably request in writing from time to time
         including, without limitation, accepting legal representation with
         respect to such claim by an attorney reasonably selected by the
         Company,

                  (iii) cooperate with the Company in good faith in order
         effectively to contest such claim, and

                  (iv) permit the Company to participate in any proceedings
         relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax, Redetermined Excise Tax or income tax,
including interest and penalties with respect thereto, imposed as a result of
such representation and payment of costs and expenses.

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Without limitation on the foregoing, the Company shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may, at its sole option,
either direct Executive to pay the tax claimed and sue for a refund or contest
the claim in any permissible manner, and Executive agree to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Executive, on an interest-free basis, and shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax, Redetermined Excise Tax or
income tax, including interest and penalties with respect thereto, imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statue of
limitations relating to payment of taxes for the taxable year of Executive with
respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Company's control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

          (c) If after the receipt by Executive of an amount advanced by the
Company pursuant to the foregoing, Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to the Company's
complying with the requirements of above with respect to any contest of an
excise tax claim) promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon by the taxing authority
after deducting any taxes applicable thereto). If, after the receipt by
Executive of an amount advanced by the Company hereunder, a determination is
made that Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify Executive in writing of its intent to
contest such denial of refund prior to the expiration of thirty days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of the Supplemental Gross-Up Payment required to be paid hereunder.
The forgiveness of such advance shall be considered part of the Supplemental
Gross-Up Payment and subject to gross-up for any taxes (including interest or
penalties) associated therewith.

                                    ARTICLE 5

                           SUCCESSORS AND ASSIGNMENTS

         SECTION 5.01. Successors. Except as provided in Section 5.03, the
Company will require any successor (whether by reason of a Change in Control,
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform the obligations

                                       13
<PAGE>   14
under this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession had taken place.

         SECTION 5.02. Assignment by Executive. This Agreement shall inure to
the benefit of and be enforceable by Executive's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees. If Executive should die or become disabled while any
amount is owed but unpaid to Executive hereunder, all such amounts, unless
otherwise provided herein, shall be paid to Executive's devisee, legatee, legal
guardian or other designee, or if there is no such designee, to Executive's
estate. Executive's rights hereunder shall not otherwise be assignable.

         SECTION 5.03. Completion. Upon Completion, all undertakings by the
Company hereunder shall cease to be obligations of Aetna Inc., a Connecticut
corporation, and shall become obligations of Aetna U.S. Healthcare Inc., a
Pennsylvania corporation (which is to be renamed Aetna Inc.), and its
Subsidiaries and Executive shall have no right to bring any claim or action
hereunder against ING America Insurance Holdings, Inc. or any of its
Subsidiaries or Affiliates.

                                    ARTICLE 6

                                  MISCELLANEOUS

         SECTION 6.01. Notices. Any notice required to be delivered hereunder
shall be in writing and shall be addressed

         if to the Company, to:

              Aetna Inc.
              151 Farmington Avenue
              Hartford, CT 06156
              Fax:   860-273-8340
              Attn:  General Counsel;

         Copies to:

              Davis Polk & Wardwell
              450 Lexington Avenue
              New York, NY 10017
              Fax:   212-450-4800
              Attn:  Lewis B. Kaden

         if to Executive, to Executive's last known address as reflected on the
         books and records of the Company

                                       14
<PAGE>   15
or such other address as such party may hereafter specify for the purpose by
written notice to the other party hereto. Any such notice shall be deemed
received on the date of receipt by the recipient thereof if received prior to
5:00 p.m. in the place of receipt and such day is a business day in the place of
receipt. Otherwise, any such notice shall be deemed not to have been received
until the next succeeding business day in the place of receipt.

         SECTION 6.02. Legal Fees and Expenses. The Company shall pay all legal
fees, costs of litigation, prejudgment interest, and other expenses which are
reasonably incurred by Executive as a result of any conflict between the parties
pertaining to this Agreement which arises within the 24 month period following a
Change in Control or in connection with the termination of Executive's
employment during such period.

         SECTION 6.03. Arbitration. Except as provided in Section 6.16,
Executive shall have the right and option to elect (in lieu of litigation) to
have any dispute or controversy arising under or in connection with this
Agreement settled by arbitration, conducted before a panel of three arbitrators
sitting in a location selected by Executive within 50 miles from the location of
Executive's principal place of employment with the Company, in accordance with
the rules of the American Arbitration Association then in effect. Executive's
election to arbitrate, as herein provided, and the decision of the arbitrators
in that proceeding, shall be binding on the Company and Executive. Judgment may
be entered on the award of the arbitrator in any court having jurisdiction.
Except as provided in Section 6.02, each party shall pay its own expenses of
such arbitration and all common expenses of such arbitration shall be borne
equally by Executive and the Company.

         SECTION 6.04. Unfunded Agreement. The obligations of the Company under
this Agreement represent an unsecured, unfunded promise to pay benefits to
Executive and/or Executive's beneficiaries, and shall not entitle Executive or
such beneficiaries to a preferential claim to any asset of the Company.

         SECTION 6.05. Non-Exclusivity of Benefits. Unless specifically provided
herein, neither the provisions of this Agreement nor the benefits provided
hereunder shall reduce any amounts otherwise payable, or in any way diminish
Executive's rights as an employee of the Company, whether existing now or
hereafter, under any compensation and/or benefit plans (qualified or
nonqualified), programs, policies, or practices provided by the Company, for
which Executive may qualify; provided, however, that the Separation Benefits and
the Severance Benefits shall be in lieu of any severance benefits under any such
plans, programs, policies or practices. Vested benefits or other amounts which
Executive is otherwise entitled to receive under any plan, policy, practice, or
program of the Company (i.e., including, but not limited to, vested benefits
under any qualified or nonqualified retirement plan), at or subsequent to the
date of termination of Executive's employment shall be payable in accordance
with such plan, policy, practice, or program except as expressly modified by
this Agreement.

                                       15
<PAGE>   16
         SECTION 6.06. Employment Status. Nothing herein contained shall
interfere with the Company's right to terminate Executive's employment with the
Company at any time, with or without Cause, subject to the Company's obligation
to provide Severance Benefits or Separation Benefits, if any. Executive shall
also have the right to terminate his employment with the Company at any time
without liability, subject only to his obligations hereunder.

         SECTION 6.07. Mitigation. (a) In no event shall Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to Executive under any of the provisions of this Agreement nor,
except as provided below, shall the amount of any payment or benefit hereunder
be reduced by any compensation earned by Executive as a result of employment by
another employer.

          (b) In the event that, during a Continuation Period or Payment Period,
as the case may be, Executive becomes eligible for health or other welfare
benefits from a new employer which are comparable to and of substantially
equivalent value to Executive's benefits under the Company's Medical Plans or
other welfare plans, Executive's benefits hereunder shall be appropriately
reduced or terminated, in the Company's sole discretion, to the extent of such
comparable benefits available to Executive.

         SECTION 6.08. Entire Agreement. This Agreement represents the entire
agreement between Executive and the Company and its affiliates with respect to
Executive's employment and/or severance rights, and supersedes all prior
discussions, negotiations, and agreements concerning such rights; provided,
however, that any amounts payable to Executive hereunder shall be reduced by any
amounts paid to Executive as required by any applicable local law in connection
with any termination of Executive's employment.

         SECTION 6.09. Tax Withholding. Notwithstanding anything in this
Agreement to the contrary, the Company shall withhold from any amounts payable
under this Agreement all federal, state, city, or other taxes as are legally
required to be withheld.

         SECTION 6.10. Waiver of Rights. The waiver by either party of a breach
of any provision of this Agreement shall not operate or be construed as a
continuing waiver or as a consent to or waiver of any subsequent breach hereof.

         SECTION 6.11. Severability. In the event any provision of the Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Agreement, and the Agreement shall
be construed and enforced as if the illegal or invalid provision had not been
included.

         SECTION 6.12. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Connecticut without
reference to principles of conflict of laws.

                                       16
<PAGE>   17
         SECTION 6.13. Counterparts. This Agreement may be signed in several
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were on the same instrument.

         SECTION 6.14. Indemnification. The Company shall indemnify Executive
(and Executive's legal representatives or other successors) to the fullest
extent permitted by the Certificate of Incorporation and By-Laws of the Company,
as in effect at such time or on the Effective Date, and Executive shall be
entitled to the protection of any insurance policies the Company may elect to
maintain generally for the benefit of its directors and officers (and to the
extent the Company maintains such an insurance policy or policies, Executive
shall be covered by such policy or policies, in accordance with its or their
terms, to the maximum extent of the coverage available for any Company officer
or director), against all costs, charges and expenses whatsoever incurred or
sustained by Executive or Executive's legal representatives at the time such
costs, charges and expenses are incurred or sustained, in connection with any
action, suit or proceeding to which Executive (or Executive's legal
representatives or other successors) may be made a party by reason of
Executive's being or having been a director, officer or employee of the Company,
or any Subsidiary or Executive's serving or having served any other enterprise
as a director, officer, employee or fiduciary at the request of the Company.

         SECTION 6.15. Nondisclosure, Nonsolicitation, Noncompete, and
Nondisparagement.

          (a) (i) Executive shall not (except to the extent required by an order
of a court having competent jurisdiction or under subpoena from an appropriate
government agency) disclose to any third person, whether during or subsequent to
the Executive's employment with the Company, any trade secrets; customer lists;
provider lists; product development and related information; marketing plans and
related information; sales plans and related information; premium on any other
pricing information; operating policies and manuals; research; payment rates;
methodologies; contractual forms; business plans; financial records; or other
financial, commercial, business or technical information related to the Company
or any Subsidiary or Affiliate unless such information has been previously
disclosed to the public by the Company or has become public knowledge other than
by a breach of this Agreement; provided, however, that this limitation shall not
apply to any such disclosure made while the Executive is employed by the
Company, any Subsidiary or Affiliate if such disclosure occurred in connection
with the performance of Executive's job as an employee of the Company, any
Subsidiary or Affiliate;

                 (ii) Executive agrees that upon termination of his employment
with the Company for any reason, he will return to the Company immediately all
memoranda, books, papers, plans, information, letters and other data, and all
copies thereof or therefrom, in any way relating to the business of the Company
and its Affiliates. Executive further agrees that he will not retain or use for
his account at any time any trade

                                       17
<PAGE>   18
names, trademark or other proprietary business designation used or owned in
connection with the business of the Company or its Affiliates.

          (b) (i) While employed by the Company and for two years after the
termination of the Employment Term, the Executive shall not, directly or
indirectly, induce or attempt to induce any employee of the Company, any
Subsidiary or any Affiliate to be employed or perform services elsewhere;

                 (ii) While employed by the Company and for two years after the
termination of the Employment Term, the Executive shall not, directly or
indirectly, induce or attempt to induce any agent or agency, broker,
broker-dealer, financial supplier, registered principal or representative,
supplier or health care provider of the Company, any Subsidiary or Affiliate to
cease or curtail providing services to the Company, any Subsidiary or Affiliate;

                 (iii) While employed by the Company and for two years after the
termination of the Employment Term, unless the termination of Executive's
employment occurs during the 24 month period following a Change in Control, the
Executive shall not, directly or indirectly, solicit or attempt to solicit the
trade of any individual or entity which, at the time of such solicitation, is a
customer of the Company, any Subsidiary or Affiliate, or which the Company, any
Subsidiary or Affiliate is undertaking reasonable steps to procure as a customer
at the time of or immediately preceding termination of employment; provided,
however, that this limitation shall only apply to any product or service which
is in competition with a product or service of the Company, any Subsidiary or
Affiliate;

          (c) (i) While employed by the Company and for one year after the
termination of the Employment Term, unless the termination of Executive's
employment occurs during the 24 month period following a Change in Control, the
Executive shall not, directly or indirectly, (x) engage in the ownership of
(except less than 1% of the outstanding capital stock of any publicly traded
company), (y) become an employee of or (z) act as a consultant or contractor to,
any Competitor (as defined below);

          (ii) Following the termination of the Executive's employment with the
Company, the Executive shall provide assistance to and shall cooperate with the
Company or a Subsidiary or Affiliate, upon its reasonable request and without
additional compensation, with respect to matters within the scope of the
Executive's duties and responsibilities during employment, provided that any
reasonable out-of-pocket expenses incurred in connection with any assistance
Executive has been requested to provide under this provision for items
including, but not limited to transportation, meals, lodging and telephone,
shall be reimbursed by the Company. The Company agrees and acknowledges that it
shall, to the maximum extent possible under the then prevailing circumstances,
coordinate or cause a Subsidiary or Affiliate to coordinate any such request
with the Executive's other commitments and responsibilities to minimize the
degree to which such request interferes with such commitments and
responsibilities.

                                       18
<PAGE>   19
         For purposes of Section 6.15(c)(i), a "COMPETITOR" is any company or
organization that (x) if Executive becomes Chief Executive Officer of the
Company prior to Completion, is a direct and substantial competitor of the
Company in its financial services and international businesses or (y) develops,
administers, operates, offers or solicits offers regarding managed care, health,
life, long-term care or disability coverages, networks, insurance or plans to
employers, employees or individuals; and does not include any hospital, private
medical practice or academic institution that does not own a controlling or
material interest in and does not operate (directly or indirectly), and is not
otherwise an affiliate of, a health insurance company, a managed care company or
a health benefit plan (including an HMO, POS or PPO plan).

          (d) Neither party will at any time (whether during or after
termination of Executive's employment with the Company) knowingly make any
statement, written or oral, or take any other action relating to the other party
that would disparage or otherwise harm such party, its business or his
reputation or, in the case of the Company, the reputation of any of its officers
and directors.

         SECTION 6.16. Material Inducement; Specific Performance.

          (a) If any provision of Section 6.15 is determined by a court of
competent jurisdiction not to be enforceable in the manner set forth in this
Agreement, the Company and Executive agree that it is the intention of the
parties that such provision should be enforceable to the maximum extent possible
under applicable law and that such court shall reform such provision to make it
enforceable in accordance with the intent of the parties.

          (b) Executive acknowledges that a material part of the inducement for
the Company to provide the salary and benefits evidenced hereby is Executive's
covenants set forth in Section 6.15 and that the covenants and obligations of
Executive with respect to nondisclosure and nonsolicitation relate to special,
unique and extraordinary matters and that a violation of any of the terms of
such covenants and obligations will cause the Company irreparable injury for
which adequate remedies are not available at law. Therefore, Executive agrees
that, if Executive shall materially breach any of those covenants following
termination of employment, the Company shall be entitled to an injunction,
restraining order or such other equitable relief (without the requirement to
post a bond) restraining Executive from committing any violation of the
covenants and obligations contained in Section 6.15 and the Company shall have
no further obligation to pay Executive any benefits otherwise payable hereunder,
other than any such breach which occurs during the 24 month period following a
Change in Control or following the termination of Executive's employment during
such period. The remedies in the preceding sentence are cumulative and are in
addition to any other rights and remedies the Company may have at law or in
equity as an arbitrator (or court) shall reasonably determine.

                                       19
<PAGE>   20
                                    ARTICLE 7

                                   DEFINITIONS

         For purposes of this Agreement, the following terms shall have the
meanings set forth below.

         "Accounting Firm" has the meaning accorded such term in Section 4.01.

         "Accrued Benefits" has the meaning accorded such term in Section 3.03.

         "Accrued Compensation" has the meaning accorded such term in Section
3.03.

         "Affiliate" and "Associate" have the respective meanings accorded to
such terms in Rule 12b-2 under the Exchange Act as in effect on the Effective
Date.

         "Agreement" has the meaning accorded such term in the introductory
paragraph of this Agreement.

         "Appraiser" has the meaning accorded such form in Section 4.01.

         "Awards" has the meaning accorded such term in Section 3.02.

         "Base Salary" has the meaning accorded such term in Section 2.01.

         "Basic Bonus Amount" has the meaning accorded such term in Section
3.03.

         "Basic Options" has the meaning accorded such term in Section 2.03.

         "Beneficial Ownership." A Person shall be deemed the "Beneficial
Owner"of, and shall be deemed to "beneficially own," securities pursuant to Rule
13d-3 under the Exchange Act as in effect on the Effective Date.

         "Board" means, prior to Completion, the Board of Directors of Aetna
Inc. (a Connecticut corporation) and, following Completion, the Board of
Directors of Aetna Inc. (a Pennsylvania corporation).

         "Cause" means the occurrence of any one or more of the following:

          (a) Executive's willful and continued failure substantially to perform
the duties of his position (other than as a result of incapacity due to physical
or mental illness) which failure is not remedied within fifteen business days of
written notice from the Company;

                                       20
<PAGE>   21
          (b) Executive's gross negligence or willful malfeasance in the
performance of Executive's duties hereunder; or

          (c) Executive's commission of an act constituting fraud, embezzlement,
or any other act constituting a felony.

         For purposes of this definition, no act or failure to act shall be
deemed "willful" unless effected by Executive not in good faith and without
reasonable belief that such action or failure to act was in the best interests
of the Company.

         "Change in Control" means, and shall be deemed to have occurred upon
any occurrence of any of the following events:

         (a) When any "person" as defined in Section 3(a)(9) of the Exchange Act
and as used in Section 13(d) and 14(d) thereof, including a "group" as defined
in Section 13(d) of the Exchange Act but excluding the Company and any
Subsidiary thereof and any employee benefit plan sponsored or maintained by the
Company or any Subsidiary (including any trustee of such plan acting as
trustee), directly or indirectly, becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act, as amended from time to time), of securities
of the Company representing 20 percent or more of the combined voting power of
the Company's then outstanding securities;

         (b) When, during any period of 24 consecutive months the individuals
who, at the beginning of such period, constitute the Broad (the "Incumbent
Directors") cease for any reason other than death to constitute at least
majority thereof, provided that a Director who was not a Director at the
beginning of such 24-month period shall be deemed to have satisfied such
24-month requirement (and be an Incumbent Director) if such Director was elected
by, or on the recommendation of or with the approval of, at least two-thirds of
the Directors who then qualified as Incumbent Directors either actually (because
they were directors at the beginning of such 24-month period) or by prior
operation of this paragraph (b); or

         (c) The occurrence of a transaction requiring stockholder approval for
the acquisition of the Company by an entity other than the Company or a
Subsidiary through purchase of assets, or by merger, or otherwise.

         Notwithstanding the foregoing, in no event shall a "Change in Control"
be deemed to have occurred (i) as a result of the formation of a Holding
Company, (ii) with respect to Executive, if Executive is part of a "group,"
within the meaning of Section 13(d)(3) of the Exchange Act as in effect on the
Effective Date, which consummates the Change in Control transaction, or (iii) as
a result of the Completion. In addition, for purposes of the definition of
"Change in Control" a Person engaged in business as an underwriter of securities
shall not be deemed to be the "Beneficial Owner" of, or to "beneficially own,"
any securities acquired through such Person's participation in good

                                       21
<PAGE>   22
faith in a firm commitment underwriting until the expiration of forty days after
the date of such acquisition.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Committee" has the meaning accorded such term in Section 2.01.

         "Company" means, prior to Completion, Aetna Inc. (a Connecticut
corporation) and, following Completion, Aetna Inc. (a Pennsylvania corporation)
which is the renamed successor to Aetna U.S. Healthcare Inc.

         "Completion" has the meaning accorded such term in the second "Whereas"
clause of this Agreement.

         "Continuation Period" has the meaning accorded to such term in Section
3.03.

         "Disability" means Long-Term Disability, as such term is defined in the
Disability Plan.

         "Disability Plan" means the long-term disability plan (or any successor
disability and/or survivorship plan adopted by the Company) in which Executive
participates, as in effect immediately prior to the relevant event (subject to
changes in coverage levels applicable to all employees generally covered by such
Plan).

         "Effective Date" has the meaning accorded such term in Section 1.01.

         "Employment Term" has the meaning accorded such term in Section 1.02.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Excise Tax" has the meaning accorded such term in Section 4.01.

         "Executive" has the meaning accorded such term in the introductory
paragraph of this Agreement.

         "Final Determination" has the meaning accorded such term in Section
4.03.

         "Good Reason" means, without Executive's express written consent, the
occurrence of any one or more of the following:

          (a) Executive's failure to be appointed or elected to, removal from,
or failure to be reappointed or reelected to, the positions as specified in
Article 1;

          (b) Any change in Executive's reporting responsibilities, the
assignment to Executive of duties materially inconsistent with Executive's
status, or a material

                                       22
<PAGE>   23
reduction or alteration in the nature thereof, in each case excluding any
designated acting or temporary authorities, responsibilities and status;
provided, however, that, other than during the 24 months following a Change in
Control, any insubstantial or inadvertent act that is remedied by the Company
promptly after receipt of notice thereof given by Executive shall not constitute
Good Reason;

          (c) A reduction by the Company of Executive's Base Salary or total
annual target compensation from the level in effect immediately prior thereto;

          (d) Any failure of a successor of the Company to assume and agree to
perform the Company's entire obligations under this Agreement, as required by
Section 5.01 herein, provided that such successor has received at least ten days
written notice from the Company or Executive of the requirements of Section
5.01; or

          (e) The Company's requiring Executive without his consent to be based
at a location in excess of [75] miles from Executive's principal job location
immediately prior thereto; except for required travel on the Company's business
to an extent consistent with Executive's business travel obligations immediately
prior thereto;

         "Gross-Up Payment" has the meaning accorded such term in Section 4.02.

         "Health Care Business" has the meaning accorded such term in the second
whereas clause.

         "Holding Company" means an entity that becomes a holding company for
the Company or its businesses as a part of any reorganization, merger,
consolidation or other transaction, provided that the outstanding shares of
common stock of such entity and the combined voting power of the then
outstanding voting securities of such entity entitled to vote generally in the
election of directors is, immediately after such reorganization, merger,
consolidation or other transaction, beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the voting stock outstanding immediately
prior to such reorganization, merger, consolidation or other transaction in
substantially the same proportions as their ownership, immediately prior to such
reorganization, merger, consolidation or other transaction, of such outstanding
voting stock.

         "Initial Determination" has the meaning accorded such term in Section
4.01.

         "Medical Plans" means the medical care plans (or any successor medical
plans adopted by the Company) in which Executive participates, as in effect
immediately prior to the relevant event (subject to changes in coverage levels
applicable to all employees generally covered by such Plans).

                                       23
<PAGE>   24
         "Merger Agreement" means the Agreement and Plan of Restructuring and
Merger among ING America Insurance Holdings, Inc., ANB Acquisition Corp., Aetna
Inc. and, for limited purposes only, ING Groep N.V., dated as of July 19, 2000.

         "Payment Cap" has the meaning accorded such term in Section 4.01.

         "Payment Period" has the meaning accorded such term in Section 3.04.

         "Payments" has the meaning accorded such term in Section 4.01.

         "Pension Benefits" has the meaning accorded such term in Section 2.05.

         "Person" means an individual, corporation, partnership, association,
trust or any other entity or organization.

         "Premium Options" has the meaning accorded such term in Section 2.03.

         "Pro-Rata Bonus Amount" has the meaning accorded such term in Section
3.03.

         "Provisions" has the meaning accorded such term in Section 2.03

         "Public Company" means the Company, having become an independent
publicly traded corporation with a class of equity securities registered under
Section 12 of the Exchange Act.

         "Qualifying Event" has the meaning accorded such term in Section 3.01.

         "Redetermined Excise Tax" has the meaning accorded such term in Section
4.03.

         "Redetermined Payments" has the meaning accorded such term in Section
4.03.

         "Redetermined Payment Cap" has the meaning accorded such term in
Section 4.03.

         "Retention Amount" has the meaning accorded such term in Section 2.02.

         "Retirement Accruals" has the meaning accorded such term in Section
3.03.

         "Second Tranche" has the meaning accorded such term in Section 2.03.

         "Separation Benefits" has the meaning accorded such term in Section
3.04.

         "Severance Benefits" has the meaning accorded such term in Section
3.03.

                                       24
<PAGE>   25
         "Subsidiary" of any Person means any other Person of which securities
or other ownership interests having voting power to elect a majority of the
board of directors or other Persons performing similar functions are at the time
directly or indirectly owned by such Person.

         "Supplemental Gross-up Payment" has the meaning accorded such term in
Section 4.04.

         "Termination Date" has the meaning accorded such term in Section 3.02.

                                       25
<PAGE>   26
         IN WITNESS WHEREOF, the Company and Executive have executed this
Agreement, to be effective as of the day and year first written above.

JOHN W. ROWE, M.D.                    AETNA INC.

/s/ John W. Rowe                      By: /s/ Elease E. Wright
                                         Name:   Elease E. Wright
                                         Title:  Senior Vice President,
                                                 Corporate Human Resources

                                       26<PAGE>   1
                                                                   EXHIBIT 10.37

================================================================================

                            ASSET PURCHASE AGREEMENT

                                     among:

                          PRESCIENT TECHNOLOGIES, INC.,
                             a Delaware corporation;

                          STONE & WEBSTER, INCORPORATED
                             A Delaware corporation

                                       and

                            SPATIAL TECHNOLOGY INC.,
                             a Delaware corporation

                          ----------------------------

                            Dated as of June 28, 2000

                          ----------------------------

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               PAGE
<S>                                                                                                            <C>
1.       SALE OF ASSETS; RELATED TRANSACTIONS.....................................................................1

1.1      SALE OF ASSETS...........................................................................................1

         1.1      Purchase Price..................................................................................2

         1.2      Sales Taxes.....................................................................................4

         1.3      Closing.........................................................................................4

2.       REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDER AND THE SELLER.........................................5

         2.1      Due Organization; No Subsidiaries; Etc..........................................................5

         2.2      Certificate of Incorporation and Bylaws; Records................................................5

         2.3      Capitalization..................................................................................6

         2.4      Financial Statements............................................................................6

         2.5      Absence of Changes..............................................................................6

         2.6      Title To Assets.................................................................................6

         2.7      Bank Accounts...................................................................................6

         2.8      Receivables.....................................................................................7

         2.9      Customers; Distributors.........................................................................7

         2.10     Equipment, Etc..................................................................................7

         2.11     Real Property...................................................................................8

         2.12     Proprietary Assets..............................................................................8

         2.13     Contracts.......................................................................................9

         2.14     Liabilities; Major Suppliers....................................................................9

         2.15     Compliance with Legal Requirements.............................................................10

         2.16     Tax Matters....................................................................................11

         2.17     Employees......................................................................................11

         2.18     Benefit Plans; ERISA...........................................................................11

         2.19     Environmental Matters..........................................................................11

         2.20     Performance Of Services........................................................................11

         2.21     Insurance......................................................................................11

         2.22     Related Party Transactions.....................................................................11

         2.23     Proceedings; Orders............................................................................11

         2.24     Authority; Binding Nature Of Agreements........................................................12

         2.25     Non-Contravention; Consents....................................................................12
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)
<TABLE>
<CAPTION>

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         2.26     Brokers........................................................................................12

         2.27     The Stockholder................................................................................12

         2.28     Full Disclosure................................................................................13

3.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.........................................................13

         3.1      Authority; Binding Nature Of Agreements........................................................13

         3.2      Brokers........................................................................................13

4.       COVENANTS...............................................................................................13

4.1      ACCESS AND INVESTIGATION................................................................................13

4.2      OPERATION OF BUSINESS...................................................................................14

         4.2      Filings and Consents...........................................................................15

4.4      NOTIFICATION; UPDATES TO DISCLOSURE SCHEDULE............................................................15

4.5      NONSOLICITATION.........................................................................................16

4.6      BEST EFFORTS............................................................................................16

4.6      COURT APPROVAL..........................................................................................16

4.8      CONFIDENTIALITY.........................................................................................16

         4.3      Operations Following Closing...................................................................16

         4.4      Further Actions................................................................................16

         4.5      Publicity......................................................................................17

         4.6      Change of Name.................................................................................17

         4.7      Use of Premises................................................................................17

         4.8      Restrictions on Transfer.......................................................................17

4.15     REGISTRATION RIGHTS.....................................................................................18

5.       CONDITIONS TO CLOSING...................................................................................19

5.1      CONDITIONS APPLICABLE TO ALL PARTIES....................................................................19

5.2      ADDITIONAL CONDITION APPLICABLE TO THE PURCHASER'S OBLIGATIONS..........................................19

5.3      ADDITIONAL CONDITION APPLICABLE TO STOCKHOLDER'S AND SELLER'S OBLIGATIONS...............................20

6.       INDEMNIFICATION, ETC....................................................................................20

         6.1      Survival Of Representations And Covenants......................................................20

         6.2      Indemnification By The Seller..................................................................21

         6.3      Indemnification By Purchaser...................................................................22
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
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         6.4      Setoff.........................................................................................23

         6.5      Nonexclusivity Of Indemnification Remedies.....................................................23

         6.6      Limitations....................................................................................23

         6.7      Escrow.........................................................................................23

         6.8      Defense Of Third Party Claims..................................................................24

         6.9      Exercise Of Remedies By Indemnitees Other Than Purchaser.......................................25

7.       SECURITIES LAWS COMPLIANCE..............................................................................25

         7.1      Investigation..................................................................................25

         7.2      Accredited Investor............................................................................25

         7.3      Purchase Entirely for Own Account..............................................................25

         7.4      Restricted Securities..........................................................................25

8.       MISCELLANEOUS PROVISIONS................................................................................25

         8.1      Further Assurances.............................................................................25

         8.2      Fees and Expenses..............................................................................26

         8.3      Attorneys' Fees................................................................................26

         8.4      Notices........................................................................................26

         8.5      Time Of The Essence............................................................................27

         8.6      Headings.......................................................................................27

         8.7      Counterparts...................................................................................27

         8.8      Governing Law; Venue...........................................................................28

         8.9      Successors And Assigns; Parties In Interest....................................................28

         8.10     Remedies Cumulative; Specific Performance......................................................29

         8.11     Waiver.........................................................................................29

         8.12     Amendments.....................................................................................29

         8.13     Severability...................................................................................29

         8.14     Entire Agreement...............................................................................30

         8.15     Knowledge......................................................................................30

         8.16     Construction...................................................................................30

         8.17     Court Approval.................................................................................30
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
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Exhibits

Exhibit A         -        Certain Definitions

Exhibit B         -        Form of Escrow Agreement

Exhibit C         -        Form of Assumption Agreement

Exhibit D         -        Forms of Purchaser Noncompetition Agreements

Exhibit E         -        Excluded Assets
</TABLE>

                                       iv
<PAGE>   6

                            ASSET PURCHASE AGREEMENT

                  THIS ASSET PURCHASE AGREEMENT (the "AGREEMENT") is entered
into as of June 28, 2000, by and among PRESCIENT TECHNOLOGIES, INC. a Delaware
corporation (the "SELLER"), STONE & WEBSTER, INCORPORATED, a Delaware
corporation (the "STOCKHOLDER"), and SPATIAL TECHNOLOGY INC., a Delaware
corporation (the "PURCHASER"). Certain capitalized terms used in this Agreement
are defined in Exhibit A.

                                    RECITALS

         A. The Stockholder is the sole shareholder of the Seller.

         B. The Purchaser and the Seller wish to provide for the sale of
substantially all of the assets and certain of the liabilities of the Seller to
the Purchaser on the terms set forth in this Agreement.

                                    AGREEMENT

         The parties to this Agreement, intending to be legally bound, agree as
follows:

1.       SALE OF ASSETS; RELATED TRANSACTIONS.

         1.1 SALE OF ASSETS. The Stockholder and the Seller shall cause to be
sold, assigned, transferred, conveyed and delivered to the Purchaser, at the
Closing (as defined below), good and valid title to the Assets (as defined
below), free of any Encumbrances, on the terms and subject to the conditions set
forth in this Agreement. For purposes of this Agreement, "ASSETS" shall mean and
include: (a) all of the properties, rights, interests and other tangible and
intangible assets of the Seller (wherever located and whether or not required to
be reflected on a balance sheet prepared in accordance with GAAP), including any
assets acquired by the Seller during the Pre-Closing Period; and (b) any other
assets that are owned by the Stockholder or any other Related Party and that are
needed for the conduct of, or are useful in connection with, the business of the
Seller and which are specifically identified prior to Closing; provided,
however, that the Assets shall not include any Excluded Assets. Without limiting
the generality of the foregoing, the Assets shall include:

                           (a) all accounts receivable, notes receivable and
         other receivables of the Seller identified in Part 2.8 of the
         Disclosure Schedule;

                           (b) all inventories and work-in-progress of the
         Seller, and all rights to collect from customers (and to retain) all
         fees and other amounts payable, or that may become payable, to the
         Seller with respect to products sold and/or services performed by or on
         behalf of the Seller on or prior to the Closing Date;

                           (c) all equipment, materials, prototypes, tools,
         supplies and other tangible assets of the Seller identified in Part
         2.10 of the Disclosure Schedule;

                           (d) all advertising and promotional materials
         possessed by the Seller;

                                       1
<PAGE>   7

                           (e) all Proprietary Assets and goodwill of the Seller
         (including the right to use the names "Prescient Technologies, Inc.,"
         "DesignQA," "GeometryQA," "DriveQA," "CertifyQA," "AuditQA," and
         "MyQualityQA" and any and all variations thereof, and the Proprietary
         Assets identified in Part 2.12 of the Disclosure Schedule);

                           (f) all rights of the Seller under the Contracts
         identified in Part 2.13 of the Disclosure Schedule);

                           (g) all Governmental Authorizations held by the
         Seller;

                           (h) all claims (including claims for past
         infringement of Proprietary Assets) and causes of action of the Seller
         against other Persons (regardless of whether or not such claims and
         causes of action have been asserted by the Seller), and all rights of
         indemnity, warranty rights, rights of contribution, rights to refunds,
         rights of reimbursement and other rights of recovery possessed by the
         Seller (regardless of whether such rights are currently exercisable);
         and

                           (i) all books, records, files and data of the Seller.

         1.1      PURCHASE PRICE.

                  (A) The total potential consideration for the sale of the
Assets to the Purchaser shall be 350,000 shares of restricted common stock of
the Purchaser (the "COMMON STOCK") subject in part to the conditions set forth
below plus One Hundred Thousand Dollars ($100,000) payable as follows:

                      (I) at the Closing (as defined below), the Purchaser shall
         transfer to the Seller 300,000 shares of its Common Stock;

                      (II) at the Closing, the Purchaser shall deposit 50,000
         shares of Common Stock (the "ESCROW FUND") in an escrow account (the
         "ESCROW ACCOUNT") to be established as of the Closing Date (as defined
         below) pursuant to an Escrow Agreement among the Seller, the
         Stockholder, the Purchaser and Norwest Bank Colorado, N.A. (the "ESCROW
         AGENT"), substantially in the form of Exhibit B (the "ESCROW
         AGREEMENT");

                      (III) at the Closing, Purchaser shall transfer to Seller's
         designated bank account by wire transfer of immediately available funds
         the amount of $100,000, provided, however, this payment shall only be
         payable in the event that the obligations under the Northrop Grumman
         Corporation Purchase Order (No. 114-D20097 AZ) dated May 4, 2000,
         remain in effect as of the Closing Date and no shipment of product has
         been made under that agreement; and

                      (IV) at the Closing, the Purchaser shall assume the
         Assumed Liabilities by delivering to the Seller an Assumption Agreement
         in substantially the form of Exhibit C (the "ASSUMPTION AGREEMENT");

                                       2
<PAGE>   8

                  (B) The Escrow Fund shall be retained by the Escrow Agent for
not more than twelve (12) months following the Closing Date and shall be repaid
as follows:

                      (i) For a period of six months following the Closing
         Date, the Escrow Fund shall be retained by the Escrow Agent to secure
         the indemnity obligations of the Seller as set forth in Section 6
         below.

                      (ii) Beginning six months after the Closing Date, if
         a commercial agreement is or has been reached between the Purchaser and
         General Motors Corporation ("GM") regarding the purchase by GM of
         products comprising Assets in an amount not less than $250,000, the
         Escrow Fund (less any amount previously released to Purchaser in
         accordance with the terms of the Escrow Agreement and any amount
         retained to honor any pending Claims (as defined in the Escrow
         Agreement) shall be released to Seller.

                      (iii) If the criteria set forth in clause (ii) above
         have not been met, then on the date that is twelve months after the
         Closing Date, the entire remaining Escrow Fund shall be returned to the
         Seller.

                  (C) For purposes of this Agreement "ASSUMED LIABILITIES" shall
mean only the obligations of the Seller under those contracts identified in Part
2.13 of the Disclosure Schedule, but only to the extent such obligations (A) do
not arise from or relate to any Breach by the Seller of any provision of any of
such Contracts, (B) do not arise from or relate to any event, circumstance or
condition occurring or existing on or prior to the Closing Date that, with
notice or lapse of time, would constitute or result in a Breach of any of such
Contracts, and (C) are ascertainable (in nature and amount) solely by reference
to the express terms of such Contracts;

provided, however, that notwithstanding the foregoing, and notwithstanding
anything to the contrary contained in this Agreement, the "Assumed Liabilities"
shall not include, and the Purchaser shall not be required to assume or to
perform or discharge:

                      (1) any Liability of the Stockholder or any other Person,
         except for the Seller;

                      (2) any Liability of the Seller or the Stockholder
         arising out of or relating to the execution, delivery or performance of
         any of the Transactional Agreements, including any liabilities of the
         type referred to in Section 9.2 hereof;

                      (3) any Liability of the Seller or the Stockholder
         arising from or relating to any action taken by the Seller or the
         Stockholder, or any failure on the part of the Seller to take any
         action, at any time after the Closing Date;

                      (4) any Liability of the Seller or the Stockholder
         arising from or relating to (x) any services performed by the Seller
         for any customer, or (y) any claim or Proceeding against the Seller or
         the Stockholder;

                      (5) any Liability of the Seller or the Stockholder for the
         payment of any Tax;

                                       3
<PAGE>   9

                      (6) any Liability of the Seller to any employee or
         former employee of the Seller under or with respect to any employment
         agreement, Employee Benefit Plan, profit sharing plan or medical or
         dental plan or for severance pay;

                      (7) any Liability of the Seller to the Stockholder or any
         other Related Party;

                      (8) any Liability under any Contract, if the Seller
         shall not have obtained, prior to the Closing Date, any Consent
         required to be obtained from any Person with respect to the assignment
         or delegation to the Purchaser of any rights or obligations under such
         Contract;

                      (9) any Liability that is inconsistent with or
         constitutes an inaccuracy in, or that arises or exists by virtue of any
         Breach of, (x) any representation or warranty made by the Seller or the
         Stockholder in any of the Transactional Agreements, or (y) any covenant
         or obligation of the Seller or the Stockholder contained in any of the
         Transactional Agreements;

                      (10) any liability of the Seller or Stockholder to
         the Parthenon Group described in Part 2.26 of the Disclosure Schedule;
         or

                      (11) any other Liability that is not referred to
         specifically as an Assumed Liability in this Section 1.2(b).

The Seller and the Stockholder acknowledge that, on May 1, 2000, in partial
consideration for the transactions contemplated by this Agreement and the
continued use by the Purchaser of Seller's office space located at the 8th Floor
of 245 Summer Street, Boston, Massachusetts referred to in Section 4.7 hereof,
the Purchaser hired substantially all of the employees of the Seller. Seller and
Stockholder hereby expressly release any and all actions or claims either may
have against Purchaser with regard to the hiring of such employees and the
occupation of the office space at no cost to the Purchaser.

         1.2 SALES TAXES. The Seller shall bear and pay, and shall reimburse the
Purchaser and the Purchaser's affiliates for, any sales taxes, use taxes,
transfer taxes, documentary charges, recording fees or similar taxes, charges,
fees or expenses that may become payable in connection with the sale of the
Assets to the Purchaser or in connection with any of the other Transactions.

         1.3 CLOSING.

             (A) The closing of the sale of the Assets to the Purchaser (the
"CLOSING") shall take place at the offices of Cooley Godward LLP in Boulder, CO,
at 10:00 a.m. local time on or before June 26, 2000, provided all of the
conditions set forth in Section 5 have been satisfied or waived by the party
entitled to bring such waiver. The date upon which the Closing occurs is
referred to as the "CLOSING DATE." In the event that the Closing has not
occurred as of June 26, 2000, this agreement shall be void and of no further
effect.

                                        4
<PAGE>   10

             (B) At the Closing:

                 (I) the Seller shall execute and deliver to the Purchaser such
         bills of sale, endorsements, assignments and other documents as may (in
         the reasonable judgment of the Purchaser or its counsel) be necessary
         or appropriate to assign, convey, transfer and deliver to the Purchaser
         good and valid title to the Assets free of any Encumbrances;

                 (II) the Purchaser shall transfer to the Seller any
         consideration called for by Section 1.2(a)(i) through (a)(iv);

                 (III) the parties hereto shall execute and deliver the Escrow
         Agreement, and the Purchaser shall deposit the consideration in the
         Escrow Account as contemplated by Section 1.2(a)(ii); and

                 (IV) the Purchaser shall execute and deliver to the Seller the
         Assumption Agreement.

2.       REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDER AND THE SELLER.

                  The Stockholder and the Seller, jointly and severally,
represent and warrant, to and for the benefit of the Indemnitees, as follows:

         2.1 DUE ORGANIZATION; NO SUBSIDIARIES; ETC. The Seller is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware. The Seller does not have any subsidiaries, and does not own,
beneficially or otherwise, any shares or other securities of, or any direct or
indirect interest of any nature in, any other Entity. The Seller has never
conducted any business under or otherwise used, for any purpose or in any
jurisdiction, any fictitious name, assumed name, trade name or other name, other
than "Prescient Technologies, Inc." or "Stone and Webster Advanced Systems
Development Services, Inc."

         2.2 CERTIFICATE OF INCORPORATION AND BYLAWS; RECORDS. The Seller has
delivered to (or made available for inspection by) the Purchaser accurate and
complete copies of: (i) the certificate of incorporation and bylaws of the
Seller, including all amendments thereto; (ii) the stock records of the Seller;
and (iii) the minutes and other records of the meetings and other proceedings
(including any actions taken by written consent or otherwise without a meeting)
of the Stockholder of the Seller, the board of directors of the Seller and all
committees of the board of directors of the Seller. There have been no meetings
or other proceedings of the Stockholder of the Seller, the board of directors of
the Seller or any committee of the board of directors of the Seller that are not
fully reflected in such minutes or other records. The books of account, stock
records, minute books and other records of the Seller are accurate, up-to-date
and complete, and have been maintained in accordance with sound and prudent
business practices. All of the records of the Seller are in the actual
possession and direct control of the Seller.

         2.3 CAPITALIZATION. The Stockholder is the sole stockholder of the
Seller. Other than as set forth in Part 2.3 of the Disclosure Schedule, there is
no: (a) outstanding subscription, option, call, warrant or right (whether or not
currently exercisable) to acquire any shares of the capital stock or other
securities of the Seller; (b) outstanding security, instrument or obligation

                                       5
<PAGE>   11

that is or may become convertible into or exchangeable for any shares of the
capital stock or other securities of the Seller; or (c) any agreement or
understanding pursuant to which the Seller is or may become obligated to sell or
otherwise issue any shares of its capital stock or any other securities. No
person other than the Stockholder has any right to vote with respect to the sale
of the Assets to the Purchaser or any of the other Transactions.

         2.4 FINANCIAL STATEMENTS. The Seller has delivered to the Purchaser the
following financial statements (collectively, the "FINANCIAL STATEMENTS"): (a)
the unaudited balance sheets of the Seller as of December 31, 1999, December 31,
1998 and December 31, 1997, and the related statements of income and retained
earnings and cash flows for the years then ended; and (b) the unaudited balance
sheet of the Seller as of March 31, 2000 (the "UNAUDITED INTERIM BALANCE
SHEET"), and the related statements of income and retained earnings and cash
flows for the nine months then ended. The Financial Statements are accurate and
complete in all respects, have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the
periods covered (except that the financial statements referred to in clause (b)
of this Section 2.4 do not have notes) and present fairly the financial position
of the Seller as of the respective dates thereof and the results of operations
and cash flows of the Seller for the periods covered thereby.

         2.5 ABSENCE OF CHANGES. Except as set forth in Part 2.5 of the
Disclosure Schedule, since the date of the Unaudited Interim Balance Sheet: (a)
there has not been any material adverse change in, and no event has occurred
that might have a material adverse effect on, the business, condition, assets,
liabilities, operations, financial performance, net income or prospects of
Seller; (b) there has not been any material loss, damage or destruction to, or
any interruption in the use of, any of the assets of Seller; (c) Seller has not
made any capital expenditure, purchased or otherwise acquired, sold or otherwise
transferred, or leased or licensed, any asset to any other Person; (d) Seller
has not entered into any transaction or taken any other action outside the
Ordinary Course of Business; and (e) Seller has not agreed, committed or offered
(in writing or otherwise) to take any of the actions referred to in clauses
"(c)" and "(d)" above.

         2.6 TITLE TO ASSETS. The Seller owns, and has good and valid title to,
all of the all Assets. Except as set forth in Part 2.6 of the Disclosure
Schedule, all of such Assets are owned by the Seller free and clear of any
Encumbrances. Part 2.6 of the Disclosure Schedule identifies all of the assets
that are being leased or licensed to the Seller. Except as set forth in Section
2.6 of the Disclosure Schedule, the Assets will collectively constitute, as of
the Closing Date, all of the properties, rights, interests and other tangible
and intangible assets necessary to enable the Seller to conduct its business in
the manner in which such business is currently being conducted and in the manner
in which such business is proposed to be conducted.

         2.7 BANK ACCOUNTS. Part 2.7 of the Disclosure Schedule accurately sets
forth, with respect to each account maintained by or for the benefit of the
Seller at any bank or other financial institution: (a) the name and location of
the institution at which such account is maintained; (b) the name in which such
account is maintained and the account number of such account; (c) a description
of such account and the purpose for which such account is used; (d) the current
balance in such account; and (e) the names of all individuals authorized to draw
on or

                                       6
<PAGE>   12

make withdrawals from such account. There are no safe deposit boxes or similar
arrangements maintained by or for the benefit of the Seller.

         2.8 RECEIVABLES. Part 2.8 of the Disclosure Schedule provides an
accurate and complete breakdown and aging of all accounts receivable, notes
receivable and other receivables of the Seller as of the Closing Date. Except as
set forth in Part 2.8 of the Disclosure Schedule, all existing accounts
receivable of the Seller (including those accounts receivable reflected on the
Unaudited Interim Balance Sheet that have not yet been collected and those
accounts receivable that have arisen since March 31, 2000 and have not yet been
collected): (i) represent valid obligations of customers of the Seller arising
from bona fide transactions entered into in the Ordinary Course of Business; and
(ii) are current and will be collected in full (without any counterclaim or
setoff) on or before June 30, 2000 (net of an allowance for uncollectible
accounts in an aggregate amount not to exceed $25,000).

         2.9 CUSTOMERS; DISTRIBUTORS. Part 2.9 of the Disclosure Schedule
accurately identifies, and provides an accurate and complete breakdown of the
revenues received from, each customer or other Person that (together which such
customer's or other Person's affiliates) accounted for (i) more than $75,000 of
the gross revenues of the Seller in 1999, 1998, or 1997, or (ii) more than
$25,000 of the gross revenues of the Seller in the first three months of 2000.
Neither the Seller nor the Stockholder has received any notice or other
communication (in writing or otherwise), and neither the Seller nor the
Stockholder has received any other information, indicating that any customer or
other Person identified or required to be identified in Part 2.9 of the
Disclosure Schedule may cease dealing with the Seller or may otherwise reduce
the volume of business transacted by such Person with the Seller below
historical levels. Neither the Seller nor the Stockholder has received any
notice or other communication (in writing or otherwise), or has received any
other information, indicating that any distributor of any of the Seller's
products may cease acting as a distributor of such products or otherwise dealing
with the Seller.

         2.10 EQUIPMENT, ETC. Part 2.10 of the Disclosure Schedule accurately
identifies all equipment, materials, prototypes, tools, supplies and other
tangible assets owned by the Seller, and accurately sets forth the date of
acquisition, original cost and book value of each of said assets. Part 2.10 of
the Disclosure Schedule also accurately identifies all tangible assets leased to
the Seller. Each asset identified or required to be identified in Part 2.10 of
the Disclosure Schedule: (i) is structurally sound, free of defects and
deficiencies and in good condition and repair (ordinary wear and tear excepted);
(ii) complies in all respects with, and is being operated and otherwise used in
full compliance with, all applicable Legal Requirements; and (iii) is adequate
and appropriate for the uses to which it is being put. The assets identified in
Part 2.10 of the Disclosure Schedule are adequate for the conduct of the
business of the Seller in the manner in which such business is currently being
conducted and in the manner in which such business is proposed to be conducted.

         2.11 REAL PROPERTY. The Seller does not own any real property or any
interest in real property, except for the leaseholds created under the real
property leases identified in Part 2.11 of the Disclosure Schedule.

                                       7
<PAGE>   13

         2.12 PROPRIETARY ASSETS.

              (A) Part 2.12(a)(1) of the Disclosure Schedule identifies and
provides a brief description of all Proprietary Assets owned by the Seller. Part
2.12(a)(2) of the Disclosure Schedule identifies and provides a brief
description of each Proprietary Asset that is owned by any other Person and that
is licensed to or used by the Seller (except for any Proprietary Asset that is
licensed to the Seller under any third party software license that (1) is
generally available to the public, and (2) imposes no future monetary obligation
on the Seller) and identifies the license agreement or other agreement under
which such Proprietary Asset is being licensed to or used by the Seller. The
Seller has good and valid title to all of the Proprietary Assets identified in
Part 2.12(a)(1) of the Disclosure Schedule, free of any Encumbrances, and has a
valid right to use and otherwise exploit, and to license others to use and
otherwise exploit, all Proprietary Assets identified in Part 2.12(a)(2) of the
Disclosure Schedule. Except as set forth in Part 2.12(a)(3) of the Disclosure
Schedule, the Seller is not obligated to make any payment to any Person for the
use or other exploitation of any Proprietary Asset. Except as set forth in Part
2.12(a)(4) of the Disclosure Schedule, the Seller is free to use, modify, copy,
distribute, sell, license or otherwise exploit each of the Seller Proprietary
Assets on an exclusive basis (other than Proprietary Assets consisting of
software licensed to the Seller under third party licenses generally available
to the public, with respect to which the Seller's rights are not exclusive).

              (B) The Seller has taken all reasonable measures and precautions
necessary to protect and maintain the confidentiality and secrecy of all Seller
Proprietary Assets (except Seller Proprietary Assets whose value would be
unimpaired by public disclosure) and otherwise to maintain and protect the value
of all Seller Proprietary Assets. The Seller has not disclosed or delivered or
permitted to be disclosed or delivered to any Person, and no Person (other than
the Seller) has access to or has any rights with respect to, the source code, or
any portion or aspect of the source code, of any Seller Proprietary Asset.

              (C) All patents, trademarks, service marks and copyrights that are
registered with any Governmental Body and held by the Seller are valid and
subsisting. None of the Seller Proprietary Assets infringes or conflicts with
any Proprietary Asset owned or used by any other Person. The Seller is not
infringing, misappropriating or making any unlawful use of, and the Seller has
not at any time infringed, misappropriated or made any unlawful use of, or
received any notice or other communication of any actual, alleged, possible or
potential infringement, misappropriation or unlawful use of, any Proprietary
Asset owned or used by any other Person. To the best of the knowledge of the
Seller and the Stockholder, no other Person is infringing, misappropriating or
making any unlawful use of, and no Proprietary Asset owned or used by any other
Person infringes or conflicts with, any Seller Proprietary Asset.

              (D) The Proprietary Assets constitute all the Proprietary Assets
necessary to enable the Seller to conduct its business in the manner in which
such business is being conducted and in the manner in which such business is
proposed to be conducted. The Seller has not licensed any of the Seller
Proprietary Assets to any Person on an exclusive basis. The Seller has not
entered into any covenant not to compete or Contract limiting its ability to
exploit fully any of the Seller Proprietary Assets or to transact business in
any market or geographical area or with any Person. The Seller has, and the
Purchaser will acquire at the Closing, the right to use the

                                       8
<PAGE>   14

name "PRESCIENT TECHNOLOGIES, INC." and variations thereof, and all the product
and service names referred to in Section 1.1(e) hereof.

              (E) Except as set forth in Part 2.12(e) of the Disclosure
Schedule, the Seller has not entered into and is not bound by any Contract under
which any Person has the right to distribute or license any Proprietary Asset.
The Seller has not disclosed or delivered to any Person, or permitted the
disclosure or delivery to any Person, of the source code, or any portion or
aspect of the source code, or any proprietary information or algorithm contained
in any source code, of any Proprietary Asset. No event has occurred, and no
circumstance or condition exists, that (with or without notice or lapse of time)
will, or could reasonably be expected to, result in the disclosure or delivery
to any Person of the source code, or any portion or aspect of the source code,
or any proprietary information or algorithm contained in any source code, of any
Proprietary Asset.

         2.13 CONTRACTS.

              (A) Part 2.13 of the Disclosure Schedule identifies and provides
an accurate and complete description of each Seller Contract being assumed by
the Purchaser. The Seller has delivered to the Purchaser accurate and complete
copies of all Contracts identified in Part 2.13 of the Disclosure Schedule,
including all amendments thereto. Each Seller Contract is valid and in full
force and effect.

              (B) Except as set forth in Part 2.13 of the Disclosure Schedule:
(i) no Person has violated or breached, or declared or committed any default
under, any Seller Contract; (ii) no event has occurred, and no circumstance or
condition exists, that might (with or without notice or lapse of time) (A)
result in a violation or breach of any of the provisions of any Seller Contract,
(B) give any Person the right to declare a default or exercise any remedy under
any Seller Contract, (C) give any Person the right to accelerate the maturity or
performance of any Seller Contract, or (D) give any Person the right to cancel,
terminate or modify any Seller Contract; (iii) the Seller has not received any
notice or other communication (in writing or otherwise) regarding any actual,
alleged, possible or potential violation or breach of, or default under, any
Seller Contract; and (iv) the Seller has not waived any right under any Seller
Contract.

              (C) The Contracts identified in Part 2.13 of the Disclosure
Schedule collectively constitute all of the Contracts necessary to enable the
Seller to conduct its business in the manner in which such business is currently
being conducted and in the manner in which such business is proposed to be
conducted.

         2.14 LIABILITIES; MAJOR SUPPLIERS.

              (A) Except as set forth in Part 2.14 of the Disclosure Schedule,
the Seller has no Liabilities, except for: (i) liabilities identified as such in
the "liabilities" columns of the Unaudited Interim Balance Sheet; (ii) accounts
payable (of the type required to be reflected as current liabilities in the
"liabilities" column of a balance sheet prepared in accordance with GAAP)
incurred by the Seller in bona fide transactions entered into in the Ordinary
Course of Business since March 31, 2000; and (iii) obligations under the Seller
Contracts listed in Part 2.13

                                       9
<PAGE>   15

of the Disclosure Schedule, to the extent that the existence of such obligations
is ascertainable solely by reference to such Seller Contracts.

              (B) Part 2.14 of the Disclosure Schedule accurately identifies,
and provides an accurate and complete breakdown of the amounts paid to, each
supplier or other Person that (together which such Person's affiliates) received
(i) more than $75,000 in the aggregate from the Seller in 1999, 1998 or 1997, or
(ii) more than $25,000 in the aggregate from the Seller from January 1, 2000
through May 31, 2000.

              (C) The Seller has not, at any time, (i) made a general assignment
for the benefit of creditors, (ii) filed, or had filed against it, any
bankruptcy petition or similar filing, (iii) suffered the attachment or other
judicial seizure of all or a substantial portion of its assets, (iv) admitted in
writing its inability to pay its debts as they become due, (v) been convicted
of, or pleaded guilty or no contest to, any felony, or (vi) taken or been the
subject of any action that may have an adverse effect on its ability to comply
with or perform any of its covenants or obligations under any of the
Transactional Agreements.

         2.15 COMPLIANCE WITH LEGAL REQUIREMENTS. Seller is, and has at all
times been, in compliance with each Legal Requirement that is applicable to it
or to the conduct of its business or the ownership or use of any of its assets.
No event has occurred, and no condition or circumstance exists, that might (with
or without notice or lapse of time) constitute or result directly or indirectly
in a material violation by Seller of, or a failure on the part of Seller to
comply materially with, any Legal Requirement, and Seller has not received, at
any time, any notice or other communication (in writing or otherwise) from any
Governmental Body or any other Person regarding any actual, alleged, possible or
potential violation of, or failure to comply with, any Legal Requirement.

         2.16 TAX MATTERS. Each Tax required to have been paid, or claimed by
any Governmental Body to be payable, by Seller has been duly paid in full on a
timely basis. Any Tax required to have been withheld or collected by Seller has
been duly withheld and collected; and (to the extent required) each such Tax has
been paid to the appropriate Governmental Body. Except as set forth in Part 2.16
of the Disclosure Schedule, no claim or other Proceeding is pending or has been
threatened against or with respect to Seller in respect of any Tax.

         2.17 EMPLOYEES. Seller does not have any employees. Seller has no, and
Purchaser shall assume no, liability relating to any current or former employee
of Seller. Seller and Stockholder acknowledge that on May 1, 2000 substantially
all employees of the Seller were terminated by the Seller and subsequently hired
by Purchaser with the consent of Seller and Stockholder.

         2.18 BENEFIT PLANS; ERISA. Seller does not operate or administer any
Employee Benefit Plans. Seller has no, and Purchaser shall assume no, liability
relating to any currently existing or former Employee Benefit Plan.

         2.19 ENVIRONMENTAL MATTERS. The Seller is not liable or potentially
liable for any response cost or natural resource damages under Section 107(a) of
CERCLA, or under any other so-called "superfund" or "superlien" law or similar
Legal Requirement, at or with respect to any

                                       10
<PAGE>   16

site. All property that is leased to, controlled by or used by the Seller, and
all surface water, groundwater, soil and air associated with or adjacent to such
property: (i) is in clean and healthful condition; (ii) is free of any Hazardous
Material and any harmful chemical or physical conditions; and (iii) is free of
any environmental contamination of any nature.

         2.20 PERFORMANCE OF SERVICES. All services that have been performed on
behalf of the Seller were performed properly and in full conformity with the
terms and requirements of all applicable warranties and other Contracts and with
all applicable Legal Requirements. The Purchaser will not incur or otherwise
become subject to any Liability arising directly or indirectly from any services
performed by the Seller. There is no claim pending or being threatened against
the Seller relating to any services performed by the Seller, and, to the best of
the knowledge of the Stockholder and the Seller, there is no basis for the
assertion of any such claim.

         2.21 INSURANCE. Seller maintains adequate insurance in accordance with
industry standards.

         2.22 RELATED PARTY TRANSACTIONS. Except as set forth in Part 2.22 of
the Disclosure Schedule: (a) no Related Party has any direct or indirect
interest of any nature in any of the assets of the Seller; and (b) no Related
Party has any interest in any Contract being assigned hereunder.

         2.23 PROCEEDINGS; ORDERS. Other than the bankruptcy proceeding
described in Section 2.27, there is no pending Proceeding and no Person has
threatened to commence any Proceeding that involves Seller or that otherwise
relates to or might affect the business of Seller or any of the Assets (whether
or not Seller is named as a party thereto) following the Closing, and no event
has occurred that could reasonably be expected to give rise to or serve as a
basis for the commencement of any such Proceeding. There is no order to which
Seller, or any of the assets owned or used by Seller, is subject; and no Related
Party is subject to any order that relates to Seller's business or to any of the
assets of Seller. There is no proposed order that, if issued or otherwise put
into effect, may have an adverse effect on the business, condition, assets,
liabilities, operations, financial performance, net income or prospects of
Seller or on the ability of Seller to effect the Transactions.

         2.24 AUTHORITY; BINDING NATURE OF AGREEMENTS. Each of the Seller and
the Stockholder has the absolute and unrestricted right, power and authority to
enter into and to perform its obligations under each of the Transactional
Agreements to which it is or may become a party; and the execution, delivery and
performance by the Seller of the Transactional Agreements to which it is or may
become a party have been duly authorized by all necessary action on the part of
the Seller and its Stockholder, board of directors and officers. This Agreement
constitutes the legal, valid and binding obligation of the Seller, enforceable
against the Seller and the Stockholder, as applicable, in accordance with its
terms. Upon the execution of each of the other Transactional Agreements at the
Closing, each of such other Transactional Agreements to which the Seller is a
party will constitute the legal, valid and binding obligation of the Seller and
the Stockholder, as applicable, and will be enforceable against the Seller in
accordance with its terms.

                                       11
<PAGE>   17

         2.25 NON-CONTRAVENTION; CONSENTS. Neither the execution and delivery of
any of the Transactional Agreements, nor the consummation or performance of any
of the Transactions, will directly or indirectly (with or without notice or
lapse of time): (a) give any Governmental Body the right to revoke, withdraw,
suspend, cancel, terminate or modify, any Governmental Authorization that is to
be included in the Purchased Assets; (b) give any Person the right to (i)
declare a default or exercise any remedy under any Contract being assigned
hereunder, (ii) accelerate the maturity or performance of any Contract being
assigned hereunder, or (iii) cancel, terminate or modify any Contract being
assigned hereunder; or (c) result in the imposition or creation of any
Encumbrance upon any of the Purchased Assets. Except as set forth in Part 2.15
of the Disclosure Schedule, Seller is not nor will it be required to make any
filing with or give any notice to, or to obtain any Consent from, any Person in
connection with the execution and delivery of any of the Transactional
Agreements or the consummation or performance of any of the Transactions.

         2.26 BROKERS. Neither the Seller nor the Stockholder has agreed or
become obligated to pay, or has taken any action that might result in any Person
claiming to be entitled to receive, any brokerage commission, finder's fee or
similar commission or fee in connection with any of the Transactions other than
the arrangement with The Parthenon Group described in Part 2.26 of the
Disclosure Schedule.

         2.27 THE STOCKHOLDER. As the Stockholder has previously disclosed
publicly, the Stockholder filed a voluntary petition for reorganization under
Chapter 11 of the U.S. Bankruptcy Code (the "CHAPTER 11 CASE"). Other than the
Chapter 11 Case, (a) the Stockholder is not subject to any Order or bound by any
Contract that may have an adverse effect on its ability to comply with or
perform any of its covenants or obligations under any of the Transactional
Agreements; (b) there is no Proceeding pending, and no Person has threatened to
commence any Proceeding, that may have an adverse effect on the ability of the
Stockholder to comply with or perform any of its covenants or obligations under
any of the Transactional Agreements; and (c) no event has occurred, and no
claim, dispute or other condition or circumstance exists, that might directly or
indirectly give rise to or serve as a basis for the commencement of any such
Proceeding.

         2.28 FULL DISCLOSURE. None of the Transactional Agreements contains or
will contain any untrue statement of a material fact; and none of the
Transactional Agreements omits or will omit to state any fact necessary to make
any of the representations, warranties or other statements or information
contained therein not misleading. All of the information set forth in the
Disclosure Schedule, and all other information regarding the Seller and its
business, condition, assets, liabilities, operations, financial performance, net
income and prospects that has been furnished to the Purchaser or any of the
Purchaser's Representatives by or on behalf of the Stockholder or the Seller or
by any Representative of the Stockholder or of the Seller, is accurate and
complete in all respects.

                                       12
<PAGE>   18

         3. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

         The Purchaser represents and warrants, to and for the benefit of the
Seller, as follows:

         3.1 AUTHORITY; BINDING NATURE OF AGREEMENTS. The Purchaser has the
absolute and unrestricted right, power and authority to enter into and perform
its obligations under this Agreement, and the execution and delivery of this
Agreement by the Purchaser have been duly authorized by all necessary action on
the part of the Purchaser and its board of directors. The Purchaser has the
absolute and unrestricted right, power and authority to enter into and perform
its obligations under the Escrow Agreement and the Assumption Agreement, and the
execution, delivery and performance of the Escrow Agreement and the Assumption
Agreement by the Purchaser have been duly authorized by all necessary action on
the part of the Purchaser and its board of directors. This Agreement constitutes
the legal, valid and binding obligation of the Purchaser, enforceable against it
in accordance with its terms. Upon the execution and delivery of the Escrow
Agreement and the Assumption Agreement at the Closing, the Escrow Agreement and
the Assumption Agreement will constitute the legal, valid and binding
obligations of the Purchaser, enforceable against the Purchaser in accordance
with their terms.

         3.2 BROKERS. The Purchaser has not become obligated to pay, and has not
taken any action that might result in any Person claiming to be entitled to
receive, any brokerage commission, finder's fee or similar commission or fee in
connection with any of the Transactions.

4.       COVENANTS

         4.1 ACCESS AND INVESTIGATION. The Stockholder and the Seller shall
ensure that, at all times during the Pre-Closing Period: (a) the Seller and its
Representatives provide the Purchaser and its Representatives with free and
complete access to the Seller's Representatives, personnel and assets and to all
existing books, records, Tax Returns, work papers and other documents and
information relating to the Seller and its business; (b) the Seller and its
Representatives provide the Purchaser and its Representatives with such copies
of existing books, records, Tax Returns, work papers and other documents and
information relating to the Seller and its business as the Purchaser may request
in good faith; and (c) the Seller and its Representatives compile and provide
the Purchaser and its Representatives with such additional financial, operating
and other data and information relating to the Seller and its business as the
Purchaser may request in good faith.

         4.2 OPERATION OF BUSINESS. The Stockholder and the Seller shall ensure
that, during the Pre-Closing Period:

             (A) the Seller conducts its operations in the Ordinary Course of
         Business and in the same manner as such operations have been conducted
         prior to the date of this Agreement;

             (B) the Seller (i) preserves intact its current business
         organization, (ii) maintains its relations and goodwill with all
         suppliers, customers, landlords, creditors, licensors, licensees,
         employees, independent contractors and other Persons having

                                       13
<PAGE>   19

         material business relationships with the Seller, and (iii) promptly
         repairs, restores or replaces any material assets that are destroyed or
         damaged;

             (C) the officers of the Seller confer regularly with the Purchaser
         concerning operational matters and otherwise report regularly to the
         Purchaser concerning the status of the Seller's business, condition,
         assets, liabilities, operations, financial performance and prospects;

             (D) the Purchaser is notified immediately of any inquiry, proposal
         or offer from any Person relating to any Acquisition Transaction;

             (E) the Seller does not (i) declare, accrue, set aside or pay any
         dividend or make any other distribution in respect of any shares of
         capital stock or other securities, or (ii) repurchase, redeem or
         otherwise reacquire any shares of capital stock or other securities;

             (F) the Seller does not sell or otherwise issue any shares of
         capital stock or any other securities;

             (G) the Seller does not effect or become a party to any Acquisition
         Transaction;

             (H) the Seller does not form any subsidiary or acquire any equity
         interest or other interest in any other Entity;

             (I) the Seller does not make any capital expenditure, except for
         capital expenditures that are made in the Ordinary Course of Business
         and that, when added to all other capital expenditures made on behalf
         of the Seller during the Pre-Closing Period, do not exceed $50,000 in
         the aggregate;

             (J) the Seller does not enter into or permit any of its material
         assets to become bound by any Contract;

             (K) the Seller does not incur, assume or otherwise become subject
         to any material Liability, except for current liabilities (of the type
         required to be reflected in the "liabilities" column of a balance sheet
         prepared in accordance with GAAP) incurred in the Ordinary Course of
         Business;

             (L) the Seller does not change any of its methods of accounting or
         accounting practices in any respect; and

             (M) the Seller does not enter into any transaction or take any
         other action that might cause or constitute a Breach of any
         representation or warranty made by the Stockholder or the Seller in
         this Agreement or in the Closing Certificate.

         4.2 FILINGS AND CONSENTS. The Stockholder and the Seller shall ensure
that: (a) all filings, notices and Consents required to be made, given and
obtained in order to consummate

                                       14
<PAGE>   20

the Transactions are made, given and obtained on a timely basis and (b) during
the Pre-Closing Period, the Stockholder and the Seller and their respective
Representatives cooperate with the Purchaser and with the Purchaser's
Representatives, and prepare and make available such documents and take such
other actions as the Purchaser may request in good faith, in connection with any
filing, notice or Consent that the Purchaser is required or elects to make, give
or obtain.

         4.4 NOTIFICATION; UPDATES TO DISCLOSURE SCHEDULE. During the
Pre-Closing Period, the Stockholder and the Seller shall promptly notify the
Purchaser in writing of: (a) the discovery by the Stockholder or the Seller of
any event, condition, fact or circumstance that occurred or existed on or prior
to the date of this Agreement and that caused or constitutes a Breach of any
representation or warranty made by the Stockholder or the Seller in this
Agreement; (b) any event, condition, fact or circumstance that occurs, arises or
exists after the date of this Agreement and that would cause or constitute a
Breach of any representation or warranty made by the Stockholder or the Seller
in this Agreement if (i) such representation or warranty had been made as of the
time of the occurrence, existence or discovery of such event, condition, fact or
circumstance, or (ii) such event, condition, fact or circumstance had occurred,
arisen or existed on or prior to the date of this Agreement; (c) any Breach of
any covenant or obligation of the Stockholder or the Seller; and (d) any event,
condition, fact or circumstance that may make the timely satisfaction of any of
the conditions set forth in Section 5 impossible or unlikely. If any event,
condition, fact or circumstance that is required to be disclosed pursuant to
this Section 4.4 requires any change in the Disclosure Schedule, or if any such
event, condition, fact or circumstance would require such a change assuming the
Disclosure Schedule were dated as of the date of the occurrence, existence or
discovery of such event, condition, fact or circumstance, then the Stockholder
and the Seller shall promptly deliver to the Purchaser an update to the
Disclosure Schedule specifying such change. No such update shall be deemed to
supplement or amend the Disclosure Schedule for the purpose of (i) determining
the accuracy of any representation or warranty made by any of the Stockholder or
the Seller in this Agreement or in the Closing Certificate, or (ii) determining
whether any of the conditions set forth in Section 6 has been satisfied.

         4.5 NONSOLICITATION. The Stockholder and Seller hereby agree that
neither the Stockholder, Seller, nor any of their representatives shall directly
or indirectly solicit, initiate or encourage or enter into discussions or
negotiations regarding, or respond to any inquiries or proposals for, a
competitive bid or a proposal from a third party (a) to purchase all or any
substantial part of the assets to be acquired in the Transaction, whether in a
separate transaction or as part of a plan of reorganization of the Stockholder
or the Seller or (b) the whole for any merger, consolidation, liquidation,
dissolution or similar transaction involving the assets to be acquired in the
Transaction (a "Competing Proposal"). Notwithstanding the foregoing, after the
commencement of its Chapter 11 Case, the Stockholder, the Seller and their
representatives shall be permitted to respond to inquires or requests for
information from any third party interested in submitting a Competing Proposal
after such third party demonstrates to the Stockholder's satisfaction the
financial wherewithal to consummate the transaction contemplated by the
Competing Proposal.

         4.6 BEST EFFORTS. During the Pre-Closing Period, all parties shall use
their Best Efforts to cause the conditions set forth in Section 5 to be
satisfied on a timely basis.

                                       15
<PAGE>   21

         4.6 COURT APPROVAL.. The Stockholder covenants and agrees that it will
promptly seek an order of the court in the Chapter 11 Case approving the sale,
assignment and transfer of the Acquired Assets pursuant to Sections 363 and 365
of the U.S. Bankruptcy Code (the "Sale Order").

         4.8 CONFIDENTIALITY. The Stockholder and the Seller shall ensure that,
during the Pre-Closing Period: (a) neither the Seller nor the Stockholder, nor
any Representative of the Stockholder or of the Seller, issues or disseminates
any press release or other publicity or otherwise makes any disclosure of any
nature (to any supplier, customer, landlord, creditor or employee of the Seller
or to any other Person) regarding any of the Transactions or the existence or
terms of this Agreement, except to the extent that the Seller is required by law
to make any such disclosure; and (b) if the Seller is required by law to make
any such disclosure, the Stockholder and the Seller advise the Purchaser, at
least five business days before making such disclosure, of the nature and
content of the intended disclosure.

         4.3 OPERATIONS FOLLOWING CLOSING. Seller agrees that Seller shall not
transact any business following the Closing Date except as necessary to wind up
its affairs and to be liquidated and dissolved. Prior to the liquidation and
dissolution of Seller, all of its Liabilities shall be fully discharged (other
than the Assumed Liabilities), including (i) all Liabilities to its current and
former employees, (ii) all accounts payable and all short-term and long-term
indebtedness relating to its business and (iii) all Taxes.

         4.4 FURTHER ACTIONS. From and after the Closing Date, Seller shall
cooperate with Purchaser and Purchaser's affiliates and representatives, and
shall execute and deliver such documents and take such other actions as
Purchaser may reasonably request for the purpose of evidencing the Transactions
and putting Purchaser in possession and control of all of the Purchased Assets.
Without limiting the generality of the foregoing, from and after the Closing
Date, Seller shall promptly remit to Purchaser any funds that are received by
Seller under the Contracts being assigned hereunder. Seller hereby irrevocably
authorizes Purchaser to endorse in the name of Seller any check that is made
payable to Seller and that represents the payment of any amount due under any
such assigned Contract. Seller hereby irrevocably nominates, constitutes and
appoints Purchaser as the true and lawful attorney-in-fact of Seller (with full
power of substitution) and authorizes Purchaser, in the name of and on behalf of
Seller, to execute, deliver, acknowledge, certify, file and record any document,
to institute and prosecute any Proceeding and to take any other action that
Purchaser may deem appropriate for the purpose of (a) collecting, asserting,
enforcing or perfecting any claim, right or interest of any kind that is
included in or relates to any of the Purchased Assets, (b) defending or
compromising any claim or Proceeding relating to any of the Purchased Assets or
(c) otherwise carrying out or facilitating any of the Transactions. The power of
attorney referred to in the preceding sentence is coupled with an interest and
shall be irrevocable, and shall survive the liquidation and dissolution of
Seller.

         4.5 PUBLICITY. Except for such disclosures as may be required to
Seller's employees and shareholders and their respective advisors, Seller shall
keep strictly confidential, and Seller shall not use or disclose to any other
Person, any non-public document or other information that relates directly or
indirectly to the business of Seller, Purchaser or any affiliate of Purchaser.

                                       16
<PAGE>   22

         4.6 CHANGE OF NAME. Immediately after the Closing, the Seller shall
change its name to a name that does not include the word "Prescient" or any
variation thereof and that is satisfactory to Purchaser.

         4.7 USE OF PREMISES. For a period ending 60 days after the Closing
Date, the Seller and Stockholder shall permit the Purchaser to use, without
charge to the Purchaser, the premises located at the 8th Floor of 245 Summer
Street, Boston, Massachusetts.

         4.8 RESTRICTIONS ON TRANSFER. Seller agrees not to make any transfer or
disposition of all or any portion of the Common Stock issued as consideration
pursuant to this Agreement unless and until: (a) there is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or (b) (A) the transferee has provided a written representation
reasonably satisfactory to Seller that such transferee is an accredited
investor, as such term is defined in Rule 501 promulgated under the Securities
Act, and agrees to be bound by the terms of this Agreement, (B) the Seller shall
have notified Purchaser of the proposed disposition and shall have furnished
Purchaser with a reasonably detailed statement of the circumstances surrounding
the proposed disposition and (C) Seller shall have furnished Purchaser with an
opinion of counsel, reasonably satisfactory to Purchaser, that such disposition
will not require registration of such shares under the Securities Act; provided,
that, routine sales under Rule 144 promulgated under the Securities Act shall
not require the delivery of such an opinion by Seller; Purchaser shall, as soon
as reasonably practicable following receipt of notice of such sale, instruct its
transfer agent to effect such transactions. Each certificate or warrant
representing Securities shall (unless otherwise permitted by the provisions of
the Agreement) be stamped or otherwise imprinted with a legend substantially
similar to the following:

                  "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
         TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL
         REGISTERED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN
         OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY AND
         ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED."

         4.15 REGISTRATION RIGHTS.

              (A) PIGGYBACK REGISTRATIONS The Purchaser shall notify the Seller
in writing at least fifteen (15) days prior to the filing of any registration
statement under the Securities Act for purposes of a public offering of
securities of the Purchaser (including, but not limited to, registration
statements relating to secondary offerings of securities of the Company, but
excluding registration statements relating to employee benefit plans, "universal
shelves" or with respect to corporate reorganizations or other transactions
under Rule 145 of the Securities Act) and, subject and subordinate to any
outstanding registration rights with respect to the Purchaser's capital stock,
will afford the Seller an opportunity to include in such registration statement
all or part of the shares of Purchaser's Common Stock received as consideration
pursuant to this Agreement (the "Common Stock"). If Seller desires to include in
any such registration statement

                                       17
<PAGE>   23

all or any part of the Common Stock held by it shall, within fifteen (15) days
after the above-described notice from the Company, so notify the Purchaser in
writing. Such notice shall state the intended method of disposition of the
Common Stock by the Seller. If the Seller decides not to include all of its
Common Stock in any registration statement thereafter filed by the Company, the
Seller shall nevertheless continue to have the right to include any Common Stock
in any subsequent registration statement or registration statements as may be
filed by the Purchaser with respect to offerings of its securities, all upon the
terms and conditions set forth herein.

              (B) UNDERWRITING. If the registration statement under which the
Purchaser gives notice under this Section 4.15 is for an underwritten offering,
the Purchaser shall so advise the Seller and, in such event, the right of the
Seller to be included in a registration pursuant to this Section 4.15 shall be
conditioned upon such Holder's participation in such underwriting and the
inclusion of the Seller's Common Stock in the underwriting to the extent
provided herein. The Seller shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting by the Purchaser. Notwithstanding any other provision of this
Section 4.15, if the underwriter determines in good faith that marketing factors
require a limitation of the number of shares to be underwritten, the number of
shares that may be included in the underwriting shall be allocated, first, to
the Purchaser; second, to any other stockholder of the Purchaser which desired
to include securities held by it in such offering and which hold registration
rights pursuant to written agreements entered into prior to the date hereof,
third, to the Seller; and fourth, to any remaining stockholder of the Purchaser
on a pro rata basis. No such reduction shall reduce the securities being offered
by the Purchaser for its own account to be included in the registration and
underwriting. If the Purchaser disapproves of the terms of any such
underwriting, then the Purchaser may elect to withdraw therefrom by written
notice to the Purchaser and the underwriter, delivered at least ten (10)
business days prior to the effective date of the registration statement. Any
shares of Common Stock excluded or withdrawn from such underwriting shall be
excluded and withdrawn from the registration.

              (C) RIGHT TO TERMINATE REGISTRATION. The Purchaser shall have the
right to terminate or withdraw any registration initiated by it under this
Section 4.15 prior to the effectiveness of such registration whether or the
Seller has elected to include securities in such registration.

              (D) TRANSFERABILITY. The Registration Rights granted by this
Section 4.15 shall not be transferable except to a successor in interest to
substantially all of Seller's or Stockholder's business and assets.

5.       CONDITIONS TO CLOSING.

         5.1 CONDITIONS APPLICABLE TO ALL PARTIES. The obligations of all of the
parties hereto to consummate the Transactions are subject to the satisfaction
(or the waiver by the Purchaser, Seller and the Stockholder) of the following
conditions at or prior to the Closing:

             (a) Restraining Action. No judgment, order or decree shall have
been issued or rendered by any court or other governmental body to restrain or
prohibit the Transactions or any material portion of the transactions
contemplated hereby.

                                       18
<PAGE>   24

             (b) Statutory Requirements and Regulatory Approval. All statutory
requirements for the valid consummation of the Transactions shall have been
fulfilled and all appropriate orders, consents and approvals from all regulatory
agencies and other governmental authorities whose order, consent or approval is
required by law for the consummation of the Transactions shall have been
received.

             (c) Entry of Sale Order. The court in the Chapter 11 Case shall
have entered the Sale Order, which order sale have become final and
nonappealable.

         5.2 ADDITIONAL CONDITION APPLICABLE TO THE PURCHASER'S OBLIGATIONS. The
obligations of the Purchaser to consummate the Transactions are also subject to
the satisfaction (or waiver by the Purchaser) of the following condition at or
prior to the Closing:

             (a) Representations, Warranties and Covenants. The representations
         and warranties of Stockholder and the Seller contained in Section 2
         that are qualified as to materiality shall be true and correct and such
         representations and warranties that are not so qualified shall be true
         and correct in all material respects on the Closing Date and
         Stockholder and the Seller shall have performed in all material
         respects all covenants required by this Agreement to be performed by it
         at or prior to the Closing. Stockholder and the Seller shall have
         delivered to the Purchaser on the Closing Date a certificate, dated the
         Closing Date and duly executed by Stockholder and Seller, certifying to
         the fulfillment of the conditions set forth in this paragraph.

             (b) Material Adverse Change. There shall have been no material
         adverse change to the business or assets of the Seller.

         5.3 ADDITIONAL CONDITION APPLICABLE TO STOCKHOLDER'S AND SELLER'S
OBLIGATIONS. Stockholder's and Seller's obligations to consummate the
Transactions are also subject to the satisfaction (or the waiver by Stockholder
and the Seller) of the following condition at or prior to closing:

             (a) Representations, Warranties and Covenants. The representations
and warranties of the Purchaser contained in Section 3 that are qualified as to
materiality shall be true and correct and such representations and warranties
that are not so qualified shall be true and correct in all material respects on
the Closing Date and the Purchaser shall have performed in all material respects
all covenants required by this Agreement to be performed by it at or prior to
the Closing. The Purchaser shall have delivered to the Stockholder on the
Closing Date a certificate, dated the Closing date and duly executed by the
Purchaser, certifying to the fulfillment of the conditions set forth in this
paragraph.

6.       INDEMNIFICATION, ETC..

         6.1 SURVIVAL OF REPRESENTATIONS AND COVENANTS.

             (A) Except as set forth in Sections 6.1(a) and (c) and as limited
by Section 6.1(b), the representations, warranties, covenants and obligations of
each party to this Agreement

                                       19
<PAGE>   25

shall survive (without limitation) the Closing and the sale of the Assets to the
Purchaser for six months following the Closing Date.

             (B) Subject to Section 6.1(d), the representations and warranties
set forth in Section 2.16 shall expire on the fourth anniversary of the Closing
Date; provided, however, that if a Claim Notice (as defined below) relating to
any representation or warranty set forth in any of said Sections is given to the
Seller or the Stockholder on or prior to the fourth anniversary of the Closing
Date, then, notwithstanding anything to the contrary contained in this Section
6.1(c), such representation or warranty shall not so expire, but rather shall
remain in full force and effect until such time as each and every claim
(including any indemnification claim asserted by any Indemnitee under Section
6.2) that is based directly or indirectly upon, or that relates directly or
indirectly to, any Breach or alleged Breach of such representation or warranty
has been fully and finally resolved, either by means of a written settlement
agreement executed on behalf of the Seller or the Stockholder and the Purchaser
or by means of a final, non-appealable judgment issued by a court of competent
jurisdiction.

             (C) Notwithstanding anything to the contrary contained in Section
6.1(c) (and without limiting the generality of anything contained in Section
6.1(a)), if the Stockholder or the Seller had knowledge, on or prior to the
Closing Date, of any circumstance that constitutes or that has given rise or
could be expected to give rise, directly or indirectly, to any Breach of any
representation or warranty set forth in Section 2, then such representation or
warranty shall not expire, but rather shall remain in full force and effect for
an unlimited period of time (regardless of whether any Claim Notice relating to
such representation or warranty is ever given).

             (D) For purposes of this Agreement, a "CLAIM NOTICE" relating to a
particular representation or warranty shall be deemed to have been given if any
Indemnitee, acting in good faith, delivers to the Seller or the Stockholder a
written notice stating that such Indemnitee believes that there is or has been a
possible Breach of such representation or warranty and containing (i) a brief
description of the circumstances supporting such Indemnitee's belief that there
is or has been such a possible Breach, and (ii) a non-binding, preliminary
estimate of the aggregate dollar amount of the actual and potential Damages that
have arisen and may arise as a direct or indirect result of such possible
Breach.

             (E) For purposes of this Agreement, each statement or other item of
information set forth in the Disclosure Schedule or in any update to the
Disclosure Schedule shall be deemed to be a representation and warranty made by
the Stockholder and the Seller in this Agreement.

         6.2 INDEMNIFICATION BY THE SELLER.

             (A) The Seller shall hold harmless and indemnify each of the
Indemnitees from and against, and shall compensate and reimburse each of the
Indemnitees for, any Damages that are directly or indirectly suffered or
incurred by any of the Indemnitees or to which any of the Indemnitees may
otherwise become subject at any time (regardless of whether or not such Damages
relate to any third-party claim) and that arise directly or indirectly from or
as a direct or indirect result of, or are directly or indirectly connected with:

                                       20
<PAGE>   26

                 (I) any Breach of any of the representations or warranties made
         by the Stockholder or the Seller in this Agreement (without giving
         effect to any update to the Disclosure Schedule) or in the Closing
         Certificate or any of the other Transactional Agreements;

                 (II) any Breach of any representation, warranty, statement,
         information or provision contained in the Disclosure Schedule or in any
         other document delivered or otherwise made available to the Purchaser
         or any of its Representatives by or on behalf of the Stockholder, the
         Seller or any Representative of the Stockholder or of the Seller;

                 (III) any Breach of any covenant or obligation of the
         Stockholder or the Seller contained in any of the Transactional
         Agreements;

                 (IV) any Liability of the Seller or of any Related Party, other
         than the Assumed Liabilities;

                 (V) any Liability (other than the Assumed Liabilities) to which
         the Purchaser or any of the other Indemnitees may become subject and
         that arises directly or indirectly from or relates directly or
         indirectly to (A) any product produced or sold or any services
         performed by or on behalf of the Seller, (B) the operation by the
         Seller of its business, or (C) any failure to comply with any bulk
         transfer law or similar Legal Requirement in connection with any of the
         Transactions;

                 (VI) any Proceeding relating directly or indirectly to any
         Breach, alleged Breach, Liability or matter of the type referred to in
         clause (i), (ii), (iii), (iv), or (v) above (including any Proceeding
         commenced by any Indemnitee for the purpose of enforcing any of its
         rights under this Section 6).

             (B) Subject to Section 6.2(c), neither the Seller nor the
Stockholder shall be required to make any indemnification payment pursuant to
Section 6.2(a)(i) for any Breach of the representations and warranties made by
them in this Agreement or in the Closing Certificate until such time as the
total amount of all Damages (including the Damages arising from such Breach and
all other Damages arising from any other Breaches of any representations or
warranties) that have been directly or indirectly suffered or incurred by any
one or more of the Indemnitees, or to which any one or more of the Indemnitees
has or have otherwise become subject, exceeds $25,000. (If the total amount of
such Damages exceeds the $25,000, the Indemnitees shall be entitled to be
indemnified against and compensated and reimbursed for the entire amount of such
Damages, and not merely the portion of such Damages exceeding $25,000.)

             (C) The limitation on the indemnification obligations of the
Stockholder and the Seller that is set forth in Section 6.2(b) shall not apply
to any Breach arising directly or indirectly from any circumstance of which any
of the Stockholder or the Seller had knowledge on or prior to the Closing Date.

                                       21
<PAGE>   27

         6.3 INDEMNIFICATION BY PURCHASER.

             (A) The Purchaser shall hold harmless and indemnify the Seller from
and against, and shall compensate and reimburse the Seller for, any Damages that
are directly or indirectly suffered or incurred by the Seller or to which the
Seller may otherwise become subject at any time (regardless of whether or not
such Damages relate to any third-party claim) and that arise directly or
indirectly from or as a direct or indirect result of, or are directly or
indirectly connected with:

                 (I) any failure on the part of the Purchaser to perform and
         discharge the Assumed Liabilities on a timely basis;

                 (II) any Breach of any representation or warranty made by the
         Purchaser in this Agreement; or

                 (III) any Proceeding relating directly or indirectly to any
         failure or Breach of the type referred to in clause (i) or (ii) above
         (including any Proceeding commenced by the Seller for the purpose of
         enforcing its rights under this Section 6.3).

             (B) Subject to Section 6.3(c), the Purchaser shall not be required
to make any indemnification payment pursuant to Section 6.3(a) for any Breach of
any of its representations and warranties until such time as the total amount of
all Damages (including the Damages arising from such Breach and all other
Damages arising from any other Breaches of its representations or warranties)
that have been directly or indirectly suffered or incurred by the Seller, or to
which the Seller have otherwise become subject, exceeds $25,000 in the
aggregate. (If the total amount of such Damages exceeds $25,000 in the
aggregate, the Seller shall be entitled to be indemnified against and
compensated and reimbursed for the entire amount of such Damages, and not merely
the portion of such Damages exceeding $25,000.)

             (C) The limitation on the indemnification obligations of the
Purchaser that is set forth in Section 6.3(b) shall not apply to any Breach
arising directly or indirectly from any circumstance of which the Purchaser had
knowledge on or prior to the Closing Date.

         6.4 SETOFF. In addition to any rights of setoff or other rights that
the Purchaser or any of the other Indemnitees may have at common law or
otherwise, the Purchaser shall have the right to withhold and deduct any sum
that may be owed to any Indemnitee under this Section 6 from any amount
otherwise payable by any Indemnitee to the Seller or the Stockholder. The
withholding and deduction of any such sum shall operate for all purposes as a
complete discharge (to the extent of such sum) of the obligation to pay the
amount from which such sum was withheld and deducted.

         6.5 NONEXCLUSIVITY OF INDEMNIFICATION REMEDIES. The indemnification
remedies and other remedies provided in this Section 6 shall not be deemed to be
exclusive. Accordingly, the exercise by any Person of any of its rights under
this Section 6 shall not be deemed to be an election of remedies and shall not
be deemed to prejudice, or to constitute or operate as a waiver of, any other
right or remedy that such Person may be entitled to exercise (whether under this

                                       22
<PAGE>   28

Agreement, under any other Contract, under any statute, rule or other Legal
Requirement, at common law, in equity or otherwise).

         6.6 LIMITATIONS. (a) The Seller shall have no liability under this
Section 6 unless a Claim Notice, or notice of facts as to which indemnifiable
Damages are expected to be incurred, shall have been given prior to the end of
the six month period following the Closing Date, except that after such date any
of the Indemnitees may give notice of and may make a claim at any time prior to
the fourth anniversary of the Closing Date relating to any inaccuracy of any
nature in any representations or warranties made by the Seller in either Section
2.6 or 2.16.

             (b) The Seller shall have no liability under this Section 6 in
excess of the Escrow Fund; provided, however, that the Seller may have liability
up to but not in excess of the Purchase Price for any inaccuracy of the
representations and warranties set forth in Section 2.6 or 2.16.

         6.7 ESCROW. The Escrow Fund shall be retained by the Escrow Agent in
accordance with the terms of the Escrow Agreement to reimburse Purchaser for any
Damages pursuant to the terms and conditions of this Section 6. Following any
final and binding determination (whether by non-objection, agreement or
arbitration) that Purchaser is entitled to indemnification or that the Seller is
entitled to the conditional consideration set forth in Section 1.2(b)(ii), the
Purchaser and the Seller shall promptly execute and deliver to the Escrow Agent
a disbursement request instructing the Escrow Agent to deliver the number of
shares of Common Stock of the Escrow Fund equal to Purchaser's Damages or the
contingent consideration comprising the Escrow Fund. The value of the shares of
Common Stock for purposes of indemnity shall be the average closing price for
the 30 trading days prior to the date that the distribution request is submitted
to the Escrow Agent pursuant to the Escrow Agreement.

         6.8 DEFENSE OF THIRD PARTY CLAIMS. In the event of the assertion or
commencement by any Person of any claim or Proceeding (whether against the
Purchaser, against any other Indemnitee or against any other Person) with
respect to which any of the Stockholder or the Seller may become obligated to
indemnify, hold harmless, compensate or reimburse any Indemnitee pursuant to
this Section 6, the Purchaser shall have the right, at its election, to
designate the Seller or the Stockholder to assume the defense of such claim or
Proceeding at the sole expense of the Stockholder and the Seller. If the
Purchaser so elects to designate the Seller or the Stockholder to assume the
defense of any such claim or Proceeding:

             (A) the Seller or the Stockholder shall proceed to defend such
         claim or Proceeding in a diligent manner with counsel satisfactory to
         the Purchaser;

             (B) the Purchaser shall make available to the Seller or the
         Stockholder, as appropriate, any non-privileged documents and materials
         in the possession of the Purchaser that may be necessary to the defense
         of such claim or Proceeding;

             (C) the Seller or the Stockholder, as appropriate, shall keep the
         Purchaser informed of all material developments and events relating to
         such claim or Proceeding;

                                       23
<PAGE>   29

             (D) the Purchaser shall have the right to participate in the
         defense of such claim or Proceeding;

             (E) the Seller or the Stockholder shall not settle, adjust or
         compromise such claim or Proceeding without the prior written consent
         of the Purchaser; and

             (F) the Purchaser may at any time (notwithstanding the prior
         designation of the Seller or the Stockholder to assume the defense of
         such claim or Proceeding) assume the defense of such claim or
         Proceeding.

If the Purchaser does not elect to designate the Seller or the Stockholder to
assume the defense of any such claim or Proceeding (or if, after initially
designating the Seller or the Stockholder to assume such defense, the Purchaser
elects to assume such defense), the Purchaser may proceed with the defense of
such claim or Proceeding on its own. If the Purchaser so proceeds with the
defense of any such claim or Proceeding on its own:

                 (I) all expenses relating to the defense of such claim or
         Proceeding (whether or not incurred by the Purchaser) shall be borne
         and paid exclusively by the Stockholder and the Seller;

                 (II) the Stockholder and the Seller shall make available to the
         Purchaser any documents and materials in the possession or control of
         either of the Stockholder or the Seller that may be necessary to the
         defense of such claim or Proceeding;

                 (III) the Purchaser shall keep the Seller informed of all
         material developments and events relating to such claim or Proceeding;
         and

                 (IV) the Purchaser shall have the right to settle, adjust or
         compromise such claim or Proceeding with the consent of the Seller or
         the Stockholder; provided, however, that such party shall not
         unreasonably withhold such consent.

         6.9 EXERCISE OF REMEDIES BY INDEMNITEES OTHER THAN PURCHASER. No
Indemnitee (other than the Purchaser or any successor thereto or assign thereof)
shall be permitted to assert any indemnification claim or exercise any other
remedy under this Agreement unless the Purchaser (or any successor thereto or
assign thereof) shall have consented to the assertion of such indemnification
claim or the exercise of such other remedy.

7.       SECURITIES LAWS COMPLIANCE

         7.1 INVESTIGATION. The Seller acknowledges that it has had an
opportunity to discuss the business, affairs and current prospects of the
Purchaser with the Purchaser personnel. The Seller further acknowledges having
had access to information about the Purchaser that it has requested or considers
necessary for purposes of purchasing the Purchaser's common stock.

         7.2 ACCREDITED INVESTOR. The Seller is an "accredited investor" within
the meaning of Rule 501 of the rules and regulations promulgated under the
Securities Act of 1933, as amended.

                                       24
<PAGE>   30

         7.3 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made with the
Seller in reliance upon the Seller's representation to the Purchaser, which by
the Seller's execution of this Agreement the Seller hereby confirms, that the
Purchaser's common stock issued as consideration pursuant to Section 1.2 hereof
will be acquired for investment for the Seller's own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof,
and that the Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same.

         7.4 RESTRICTED SECURITIES. Seller understands that the shares of
Purchaser common stock it is acquiring are characterized as "restricted
securities" under the federal securities laws inasmuch as they are being
acquired from the Purchaser in a transaction not involving a public offering and
that under such laws and applicable regulations such securities may be resold
without registration under the Act, only in certain limited circumstances. In
this connection, Seller represents that it is familiar with SEC Rule 144, as
presently in effect, and understands the resale limitations imposed thereby and
by the Act.

8.       MISCELLANEOUS PROVISIONS.

         8.1 FURTHER ASSURANCES. Each party hereto shall execute and/or cause to
be delivered to each other party hereto such instruments and other documents,
and shall take such other actions, as such other party may reasonably request
(prior to, at or after the Closing) for the purpose of carrying out or
evidencing any of the Transactions.

         8.2 FEES AND EXPENSES.

             (A) The Stockholder and the Seller shall bear and pay all fees,
costs and expenses (including all legal fees and expenses payable to Jones,
Walker, Waechter, Poitevent, Carrere and Denegre, L.L.P.) that have been
incurred or that are in the future incurred by, on behalf of or for the benefit
of the Stockholder or the Seller in connection with: (i) the negotiation,
preparation and review of any letter of intent or similar document relating to
any of the Transactions; (ii) the investigation and review conducted by the
Purchaser and its Representatives with respect to the business of the Seller
(and the furnishing of information to the Purchaser and its Representatives in
connection with such investigation and review); (iii) the negotiation,
preparation and review of this Agreement (including the Disclosure Schedule),
the other Transactional Agreements and all bills of sale, assignments,
certificates, opinions and other instruments and documents delivered or to be
delivered in connection with the Transactions; (iv) the preparation and
submission of any filing or notice required to be made or given in connection
with any of the Transactions, and the obtaining of any Consent required to be
obtained in connection with any of the Transactions; and (v) the consummation
and performance of the Transactions.

             (B) Subject to the provisions of Section 9 (including the
indemnification and other obligations of the Seller thereunder), the Purchaser
shall bear and pay all fees, costs and expenses (including all legal fees and
expenses payable to Cooley Godward LLP) that have been incurred or that are in
the future incurred by or on behalf of the Purchaser in connection with: (i) the
negotiation, preparation and review of any letter of intent or similar document
relating to any of the Transactions; (ii) the investigation and review conducted
by the Purchaser and its

                                       25
<PAGE>   31

Representatives with respect to the business of the Seller; (iii) the
negotiation, preparation and review of this Agreement, the other Transactional
Agreements and all bills of sale, assignments, certificates, opinions and other
instruments and documents delivered or to be delivered in connection with the
Transactions; and (iv) the consummation and performance of the Transactions.

             8.3 ATTORNEYS' FEES. If any legal action or other legal proceeding
relating to any of the Transactional Agreements or the enforcement of any
provision of any of the Transactional Agreements is brought against any party to
this Agreement, the prevailing party shall be entitled to recover reasonable
attorneys' fees, costs and disbursements (in addition to any other relief to
which the prevailing party may be entitled).

             8.4 NOTICES. Any notice or other communication required or
permitted to be delivered to any party under this Agreement shall be in writing
and shall be deemed properly delivered, given and received when delivered (by
hand, by registered mail, by courier or express delivery service or by
facsimile) to the address or facsimile telephone number set forth beneath the
name of such party below (or to such other address or facsimile telephone number
as such party shall have specified in a written notice given to the other
parties hereto):

                 if to the Stockholder:

                                    Martin Schaefer, as agent of the Stockholder
                                    Stone & Webster
                                    245 Summer Street
                                    Boston, MA  02210
                                    Facsimile: (617) 589-1322

                 with copy to:

                                    Douglas N. Currault II
                                    Jones, Walker, Waechter, Poitevent, Carrere
                                      and Denegre, L.L.P.
                                    201 St. Charles Avenue, Suite 5100
                                    New Orleans, LA  70170-5100

                 if to the Seller:
                                    Martin Schaefer
                                    Stone & Webster, Incorporated
                                    245 Summer Street
                                    Boston, MA  02210
                                    Facsimile: (617) 589-1322

                                       26
<PAGE>   32

                 if to the Purchaser:

                                    Todd Londa
                                    Vice President of Administration and
                                      Controller
                                    Spatial Technology Inc.
                                    2425 55th Street, Suite 100
                                    Boulder, CO  80301
                                    Facsimile:  (303) 544-3003

                 with copy to:

                                    Michael L. Platt
                                    Cooley Godward LLP
                                    2595 Canyon Boulevard, Suite 250
                                    Boulder, CO  80302

         8.5 TIME OF THE ESSENCE. Time is of the essence of this Agreement.

         8.6 HEADINGS. The underlined headings contained in this Agreement are
for convenience of reference only, shall not be deemed to be a part of this
Agreement and shall not be referred to in connection with the construction or
interpretation of this Agreement.

         8.7 COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one agreement.

         8.8 GOVERNING LAW; VENUE.

             (A) This Agreement shall be construed in accordance with, and
governed in all respects by, the internal laws of the State of Colorado (without
giving effect to principles of conflicts of laws).

             (B) Any legal action or other legal proceeding relating to this
Agreement or the enforcement of any provision of this Agreement may be brought
or otherwise commenced in any state or federal court located in the County of
Denver, Colorado. Each party to this Agreement:

                 (I) expressly and irrevocably consents and submits to the
         jurisdiction of each state and federal court located in the County of
         Denver, Colorado (and each appellate court located in the State of
         Colorado) in connection with any such legal proceeding;

                 (II) agrees that each state and federal court located in the
         County of Denver, Colorado shall be deemed to be a convenient forum;
         and

                 (III) agrees not to assert (by way of motion, as a defense or
         otherwise), in any such legal proceeding commenced in any state or
         federal court located in the

                                       27
<PAGE>   33

         County of Denver, Colorado any claim that such party is not subject
         personally to the jurisdiction of such court, that such legal
         proceeding has been brought in an inconvenient forum, that the venue of
         such proceeding is improper or that this Agreement or the subject
         matter of this Agreement may not be enforced in or by such court.

             (C) The Stockholder and the Seller agree that, if any Proceeding is
commenced against any Indemnitee by any Person in or before any court or other
tribunal anywhere in the world, then such Indemnitee may proceed against the
Stockholder and the Seller in or before such court or other tribunal with
respect to any indemnification claim or other claim arising directly or
indirectly from or relating directly or indirectly to such Proceeding or any of
the matters alleged therein or any of the circumstances giving rise thereto.

             (D) Nothing in this Section 8.8 shall be deemed to limit or
otherwise affect the right of any Indemnitee to commence any legal proceeding
against the Stockholder or the Seller in any forum or jurisdiction.

         8.9 SUCCESSORS AND ASSIGNS; PARTIES IN INTEREST.

             (A) This Agreement shall be binding upon: the Seller and its
successors and assigns (if any); the Stockholder and its successors and assigns
(if any); and the Purchaser and its successors and assigns (if any). This
Agreement shall inure to the benefit of: the Seller; the Stockholder; the
Purchaser; the other Indemnitees (subject to Section 6.6); and the respective
successors and assigns (if any) of the foregoing.

             (B) Other than the obligation to deliver the Purchaser's Common
Stock, the Purchaser may freely assign any or all of its rights under this
Agreement (including its indemnification rights under Section 6), in whole or in
part, to any other Person without obtaining the consent or approval of any other
Person. Neither the Seller nor the Stockholder shall be permitted to assign any
of its rights or delegate any of its obligations under this Agreement without
the Purchaser's prior written consent.

             (C) Except for the provisions of Section 6 hereof, none of the
provisions of this Agreement is intended to provide any rights or remedies to
any Person other than the parties to this Agreement and their respective
successors and assigns (if any). Without limiting the generality of the
foregoing, (i) no employee of the Seller shall have any rights under this
Agreement or under any of the other Transactional Agreements, and (ii) no
creditor of the Seller shall have any rights under this Agreement or any of the
other Transactional Agreements.

         8.10 REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE. The rights and remedies
of the parties hereto shall be cumulative (and not alternative). The Stockholder
and the Seller agree that: (a) in the event of any Breach or threatened Breach
by the Stockholder or the Seller of any covenant, obligation or other provision
set forth in this Agreement, the Purchaser shall be entitled (in addition to any
other remedy that may be available to it) to (i) a decree or order of specific
performance or mandamus to enforce the observance and performance of such
covenant, obligation or other provision, and (ii) an injunction restraining such
Breach or threatened Breach; and (b) neither the Purchaser nor any other
Indemnitee shall be required to provide any bond or

                                       28
<PAGE>   34

other security in connection with any such decree, order or injunction or in
connection with any related action or Proceeding.

         8.11 WAIVER.

             (A) No failure on the part of any Person to exercise any power,
right, privilege or remedy under this Agreement, and no delay on the part of any
Person in exercising any power, right, privilege or remedy under this Agreement,
shall operate as a waiver of such power, right, privilege or remedy; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy.

             (B) No Person shall be deemed to have waived any claim arising out
of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such Person; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.

         8.12 AMENDMENTS. This Agreement may not be amended, modified, altered
or supplemented other than by means of a written instrument duly executed and
delivered on behalf of the Purchaser, the Seller and the Stockholder.

         8.13 SEVERABILITY. In the event that any provision of this Agreement,
or the application of any such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any
extent, the remainder of this Agreement, and the application of such provision
to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful, void or unenforceable, shall not be impaired or otherwise
affected and shall continue to be valid and enforceable to the fullest extent
permitted by law.

         8.14 ENTIRE AGREEMENT. The Transactional Agreements set forth the
entire understanding of the parties relating to the subject matter thereof and
supersede all prior agreements and understandings among or between any of the
parties relating to the subject matter thereof.

         8.15 KNOWLEDGE. For purposes of this Agreement, a Person shall be
deemed to have "knowledge" of a particular fact or other matter if any
Representative of such Person has knowledge of such fact or other matter.

         8.16 CONSTRUCTION.

              (A) For purposes of this Agreement, whenever the context requires:
the singular number shall include the plural, and vice versa; the masculine
gender shall include the feminine and neuter genders; the feminine gender shall
include the masculine and neuter genders; and the neuter gender shall include
the masculine and feminine genders.

                                       29
<PAGE>   35

              (B) The parties hereto agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement.

              (C) As used in this Agreement, the words "include" and
"including," and variations thereof, shall not be deemed to be terms of
limitation, but rather shall be deemed to be followed by the words "without
limitation."

              (D) Except as otherwise indicated, all references in this
Agreement to "Sections" and "Exhibits" are intended to refer to Sections of this
Agreement and Exhibits to this Agreement.

         8.17 COURT APPROVAL. This Agreement is subject to court approval in the
Chapter 11 Case and shall not be binding on either the Stockholder pr the
Purchaser until entry of the Sale Order.

                                       30
<PAGE>   36

         The parties to this Agreement have caused this Agreement to be executed
and delivered as of June 28, 2000.

                                           PRESCIENT TECHNOLOGIES, INC.
                                            a Delaware corporation

                                           By:

                                           Its:

                                           STONE & WEBSTER, INCORPORATED
                                            a Delaware corporation

                                           By:

                                           Its:

                                           SPATIAL TECHNOLOGY INC.,
                                            a Delaware corporation

                                           By:

                                           Its:

                                       31
<PAGE>   37

                                   EXHIBIT A

                               CERTAIN DEFINITIONS

         For purposes of the Agreement (including this Exhibit A):

         ACQUISITION TRANSACTION. "Acquisition Transaction" shall mean any
transaction involving: (a) the sale or other disposition of all or any portion
of the business or assets of the Seller (other than in the Ordinary Course of
Business); (b) the issuance, sale or other disposition of (i) any capital stock
or other securities of the Seller, (ii) any option, call, warrant or right
(whether or not immediately exercisable) to acquire any capital stock or other
securities of the Seller, or (iii) any security, instrument or obligation that
is or may become convertible into or exchangeable for any capital stock or other
securities of the Seller; or (c) any merger, consolidation, business
combination, share exchange, reorganization or similar transaction involving the
Seller.

         AGREEMENT. "Agreement" shall mean the Asset Purchase Agreement to which
this Exhibit A is attached (including the Disclosure Schedule), as it may be
amended from time to time.

         BEST EFFORTS. "Best Efforts" shall mean the efforts that a prudent
Person desiring to achieve a particular result would use in order to ensure that
such result is achieved as expeditiously as possible.

         BREACH. There shall be deemed to be a "Breach" of a representation,
warranty, covenant, obligation or other provision if there is or has been (a)
any inaccuracy in or breach (including any inadvertent or innocent breach) of,
or any failure (including any inadvertent failure) to comply with or perform,
such representation, warranty, covenant, obligation or other provision, or (b)
any claim (by any Person) or other circumstance that is inconsistent with such
representation, warranty, covenant, obligation or other provision; and the term
"Breach" shall be deemed to refer to any such inaccuracy, breach, failure, claim
or circumstance.

         CERCLA. "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act.

         CODE. "Code" shall mean the Internal Revenue Code of 1986, as amended.

         COMPARABLE ENTITIES. "Comparable Entities" shall mean Entities (other
than the Seller) that are engaged in businesses similar to the business of the
Seller.

         CONSENT. "Consent" shall mean any approval, consent, ratification,
permission, waiver or authorization (including any Governmental Authorization).

         CONTRACT. "Contract" shall mean any written, oral, implied or other
agreement, contract, understanding, arrangement, instrument, note, guaranty,
indemnity, representation, warranty, deed, assignment, power of attorney,
certificate, purchase order, work order, insurance policy, benefit plan,
commitment, covenant, assurance or undertaking of any nature.

                                      A-1
<PAGE>   38

         DAMAGES. "Damages" shall include any loss, damage, injury, decline in
value, lost opportunity, Liability, claim, demand, settlement, judgment, award,
fine, penalty, Tax, fee (including any legal fee, expert fee, accounting fee or
advisory fee), charge, cost (including any cost of investigation) or expense of
any nature.

         DISCLOSURE SCHEDULE. "Disclosure Schedule" shall mean the schedule
(dated as of the date of the Agreement) delivered to the Purchaser on behalf of
the Stockholder and the Seller, a copy of which is attached to the Agreement and
incorporated in the Agreement by reference.

         EMPLOYEE BENEFIT PLAN. "Employee Benefit Plan" shall have the meaning
specified in Section 3(3) of ERISA.

         ENCUMBRANCE. "Encumbrance" shall mean any lien, pledge, hypothecation,
charge, mortgage, security interest, encumbrance, equity, trust, equitable
interest, claim, preference, right of possession, lease, tenancy, license,
encroachment, covenant, infringement, interference, Order, proxy, option, right
of first refusal, preemptive right, community property interest, legend, defect,
impediment, exception, reservation, limitation, impairment, imperfection of
title, condition or restriction of any nature (including any restriction on the
transfer of any asset, any restriction on the receipt of any income derived from
any asset, any restriction on the use of any asset and any restriction on the
possession, exercise or transfer of any other attribute of ownership of any
asset).

         ENTITY. "Entity" shall mean any corporation (including any non-profit
corporation), general partnership, limited partnership, limited liability
partnership, joint venture, estate, trust, cooperative, foundation, society,
political party, union, company (including any limited liability company or
joint stock company), firm or other enterprise, association, organization or
entity.

         ERISA. "ERISA" shall mean the Employee Retirement Income Security Act
of 1974.

         ERISA AFFILIATE. "ERISA Affiliate" shall mean any Person that is, was
or would be treated as a single employer with any of the Specified Entities
under Section 414 of the Code.

         EXCLUDED ASSETS. "Excluded Assets" shall mean the assets identified on
Exhibit E (to the extent owned by the Seller on the Closing Date).

         GAAP. "GAAP" shall mean generally accepted accounting principles.

         GOVERNMENTAL AUTHORIZATION. "Governmental Authorization" shall mean
any: (a) permit, license, certificate, franchise, concession, approval, consent,
ratification, permission, clearance, confirmation, endorsement, waiver,
certification, designation, rating, registration, qualification or authorization
issued, granted, given or otherwise made available by or under the authority of
any Governmental Body or pursuant to any Legal Requirement; or (b) right under
any Contract with any Governmental Body.

         GOVERNMENTAL BODY. "Governmental Body" shall mean any: (a) nation,
principality, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; (c) governmental or

                                      A-2
<PAGE>   39

quasi-governmental authority of any nature (including any governmental division,
subdivision, department, agency, bureau, branch, office, commission, council,
board, instrumentality, officer, official, representative, organization, unit,
body or Entity and any court or other tribunal); (d) multi-national organization
or body; or (e) individual, Entity or body exercising, or entitled to exercise,
any executive, legislative, judicial, administrative, regulatory, police,
military or taxing authority or power of any nature.

         HAZARDOUS MATERIAL. "Hazardous Material" shall include: (a) any
petroleum, waste oil, crude oil, asbestos, urea formaldehyde or polychlorinated
biphenyl; (b) any waste, gas or other substance or material that is explosive or
radioactive; (c) any "hazardous substance," "pollutant," "contaminant,"
"hazardous waste," "regulated substance," "hazardous chemical" or "toxic
chemical" as designated, listed or defined (whether expressly or by reference)
in any statute, regulation or other Legal Requirement (including CERCLA and any
other so-called "superfund" or "superlien" law and the respective regulations
promulgated thereunder); (d) any other substance or material (regardless of
physical form) or form of energy that is subject to any Legal Requirement which
regulates or establishes standards of conduct in connection with, or which
otherwise relates to, the protection of human health, plant life, animal life,
natural resources, property or the enjoyment of life or property from the
presence in the environment of any solid, liquid, gas, odor, noise or form of
energy; and (e) any compound, mixture, solution, product or other substance or
material that contains any substance or material referred to in clause (a), (b),
(c) or (d) above.

         INDEMNITEES. "Indemnitees" shall mean the following Persons: (a) the
Purchaser; (b) the Purchaser's current and future affiliates; (c) the respective
Representatives of the Persons referred to in clauses (a) and (b) above; and (d)
the respective successors and assigns of the Persons referred to in clauses (a),
(b) and (c) above.

         LEGAL REQUIREMENT. "Legal Requirement" shall mean any federal, state,
local, municipal, foreign or other law, statute, legislation, constitution,
principle of common law, resolution, ordinance, code, edict, decree,
proclamation, treaty, convention, rule, regulation, ruling, directive,
pronouncement, requirement, specification, determination, decision, opinion or
interpretation issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any
Governmental Body.

         LIABILITY. "Liability" shall mean any debt, obligation, duty or
liability of any nature (including any unknown, undisclosed, unmatured,
unaccrued, unasserted, contingent,indirect, conditional, implied, vicarious,
derivative, joint, several or secondary liability), regardless of whether such
debt, obligation, duty or liability would be required to be disclosed on a
balance sheet prepared in accordance with generally accepted accounting
principles and regardless of whether such debt, obligation, duty or liability is
immediately due and payable.

         ORDER. "Order" shall mean any: (a) order, judgment, injunction, edict,
decree, ruling, pronouncement, determination, decision, opinion, verdict,
sentence, subpoena, writ or award issued, made, entered, rendered or otherwise
put into effect by or under the authority of any court, administrative agency or
other Governmental Body or any arbitrator or arbitration panel; or (b) Contract
with any Governmental Body entered into in connection with any Proceeding.

                                      A-3
<PAGE>   40

         ORDINARY COURSE OF BUSINESS. An action taken by or on behalf of the
Seller shall not be deemed to have been taken in the "Ordinary Course of
Business" unless:

                  (a) such action is recurring in nature, is consistent with the
         past practices of the Seller and is taken in the ordinary course of the
         normal day-to-day operations of the Seller;

                  (b) such action is taken in accordance with sound and prudent
         business practices;

                  (c) such action is not required to be authorized by the
         Stockholder of the Seller, the board of directors of the Seller or
         any committee of the board of directors of the Seller and does not
         require any other separate or special authorization of any nature; and

                  (d) such action is similar in nature and magnitude to actions
         customarily taken, without any separate or special authorization, in
         the ordinary course of the normal day-to-day operations of Comparable
         Entities.

         PERSON. "Person" shall mean any individual, Entity or Governmental
Body.

         PRE-CLOSING PERIOD. "Pre-Closing Period" shall mean the period from the
date of the Agreement through the Closing Date.

         PROCEEDING. "Proceeding" shall mean any action, suit, litigation,
arbitration, proceeding (including any civil, criminal, administrative,
investigative or appellate proceeding and any informal proceeding), prosecution,
contest, hearing, inquiry, inquest, audit, examination or investigation
commenced, brought, conducted or heard by or before, or otherwise involving, any
Governmental Body or any arbitrator or arbitration panel.

         PROPRIETARY ASSET. "Proprietary Asset" shall mean any patent, patent
application, trademark (whether registered or unregistered and whether or not
relating to a published work), trademark application, trade name, fictitious
business name, service mark (whether registered or unregistered), service mark
application, copyright (whether registered or unregistered), copyright
application, maskwork, maskwork application, trade secret, know-how, customer
list, franchise, system, computer software, invention, design, blueprint,
engineering drawing, proprietary product, technology, proprietary right or other
intellectual property right or intangible asset.

         RELATED PARTY. Each of the following shall be deemed to be a "Related
Party": (a) each individual who is, or who has at any time been, an officer of
the Seller; (b) each member of the family of each of the individuals referred to
in clause (a) above; and (c) any Entity (other than the Seller) in which any one
of the individuals referred to in clauses (a) and (b) above holds or held (or in
which more than one of such individuals collectively hold or held), beneficially
or otherwise, a controlling interest or a material voting, proprietary or equity
interest.

         REPRESENTATIVES. "Representatives" shall mean officers, directors,
employees, agents, attorneys, accountants, advisors and representatives.

                                      A-4
<PAGE>   41

         SELLER CONTRACT. "Seller Contract" shall mean any Contract: (a) to
which the Seller is a party; (b) by which the Seller or any of its assets is or
may become bound or under which the Seller has, or may become subject to, any
obligation; or (c) under which the Seller has or may acquire any right or
interest.

         SELLER PROPRIETARY ASSET. "Seller Proprietary Asset" shall mean any
Proprietary Asset owned by or licensed to the Seller or otherwise used by the
Seller.

         TAX. "Tax" shall mean any tax (including any income tax, franchise tax,
capital gains tax, estimated tax, gross receipts tax, value-added tax, surtax,
excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax,
property tax, business tax, occupation tax, inventory tax, occupancy tax,
withholding tax or payroll tax), levy, assessment, tariff, impost, imposition,
toll, duty (including any customs duty), deficiency or fee, and any related
charge or amount (including any fine, penalty or interest), that is, has been or
may in the future be (a) imposed, assessed or collected by or under the
authority of any Governmental Body, or (b) payable pursuant to any tax-sharing
agreement or similar Contract.

         TAX RETURN. "Tax Return" shall mean any return (including any
information return), report, statement, declaration, estimate, schedule, notice,
notification, form, election, certificate or other document or information that
is, has been or may in the future be filed with or submitted to, or required to
be filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection or payment of any Tax or in connection
with the administration, implementation or enforcement of or compliance with any
Legal Requirement relating to any Tax.

         TRANSACTIONAL AGREEMENTS. "Transactional Agreements" shall mean: (a)
the Agreement; (b) the Escrow Agreement; (c) the Assumption Agreement; (d) the
Purchaser Noncompetition Agreement referred to in Section 1.6(b)(iv) of the
Agreement; and (e) the Closing Certificate.

         TRANSACTIONS. "Transactions" shall mean (a) the execution and delivery
of the respective Transactional Agreements, and (b) all of the transactions
contemplated by the respective Transactional Agreements, including: (i) the sale
of the Assets by the Seller to the Purchaser in accordance with the Agreement;
(ii) the assumption of the Assumed Liabilities by the Purchaser pursuant to the
Assumption Agreement; and (iii) the performance by the Seller, the Stockholder
and the Purchaser of their respective obligations under the Transactional
Agreements, and the exercise by the Seller, the Stockholder and the Purchaser of
their respective rights under the Transactional Agreements.

                                      A-5

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