Document:

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                                                                   EXHIBIT 10.14

                             CONTRIBUTION AGREEMENT

                                   MADE AS OF

                                DECEMBER 27, 2000

                                  BY AND AMONG

                              INFOCURE CORPORATION,
                                  ("INFOCURE")

                              PRACTICEWORKS, INC.,
                               ("PRACTICEWORKS"),

                          DENTSPLY INTERNATIONAL INC.,
                                  ("DENTSPLY"),

                                  CERAMCO INC.,
                                  ("CERAMCO"),

                                       AND

                                  SOFTDENT LLC
                                ("SOFTDENT LLC")

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                             CONTRIBUTION AGREEMENT

         THIS CONTRIBUTION AGREEMENT, dated as of the 27th day of December, 2000
(the "EFFECTIVE DATE"), by and among (i) InfoCure Corporation, a Delaware
corporation ("INFOCURE"), (ii) PracticeWorks Inc., a Delaware corporation
("PRACTICEWORKS"), (iii) Dentsply International Inc., a Delaware corporation
("DENTSPLY"), (iv) Ceramco Inc., a Delaware corporation ("CERAMCO"), and (v)
SoftDent LLC, a Delaware limited liability company ("SOFTDENT LLC").

                              W I T N E S S E T H :

         WHEREAS, prior to the Closing Date, Ceramco will transfer (the
"SOFTDENT ASSET TRANSFER") certain SoftDent Assets (as defined in Section 1)
owned by it, subject to certain SoftDent Assumed Liabilities (as defined in
Section 1) to SoftDent LLC in return for all the membership interests (the
"MEMBERSHIP INTERESTS") in SoftDent LLC;

         WHEREAS, on the Closing Date, Ceramco will transfer the Membership
Interests to PracticeWorks in exchange for shares of PracticeWorks preferred
stock;

         WHEREAS, InfoCure has contributed, or will on or prior to the Closing
Date contribute (the "PRACTICEWORKS ASSET TRANSFER"), certain PracticeWorks
Assets (as defined in Section 1), subject to certain PracticeWorks Assumed
Liabilities (as defined in Section 1), to PracticeWorks in exchange for shares
of PracticeWorks common stock;

         WHEREAS, for federal income tax purposes, it is intended that the
transfers by InfoCure and Ceramco pursuant to this Agreement qualify as a
tax-deferred exchange under Section 351 of the Internal Revenue Code of 1986, as
amended; and

         WHEREAS, the parties hereto desire to set forth their rights, duties
and obligations.

         NOW, THEREFORE, in consideration of the premises and the mutual
promises and covenants contained herein, and on the terms and subject to the
conditions herein set forth, the parties hereto, intending to be legally bound,
hereby agree as follows:

1.       DEFINITIONS.

         For purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 1:

         "AFFILIATE" - with respect to any Person, a Person controlling,
controlled by or under common control with such Person.

         "AFFILIATED GROUP" - any affiliated group within the meaning of
I.R.C.ss.1504(a).

         "APPLICABLE PRACTICEWORKS CONTRACT" - as defined in Section 4.9 A.

         "APPLICABLE PRACTICEWORKS INTELLECTUAL PROPERTY" - as defined in
Section 4.10 A.

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         "APPLICABLE SOFTDENT CONTRACT" - any Contract (i) under which Company
has or may acquire any rights; (ii) under which Company has or may become
subject to any obligation or liability; or (iii) by which Company or any of the
assets owned or used by Company is or may become bound.

         "APPLICABLE SOFTDENT INTELLECTUAL PROPERTY" - as defined in Section
3.22 A.

         "BENEFIT PLAN" - a deferred compensation, bonus, stock option, stock
purchase or other employee benefit plan or fringe benefit plan, agreement,
commitment or arrangement which is neither a Pension Plan nor a Welfare Plan.

         "BREACH" - a "Breach" of a representation, warranty, covenant,
obligation or other provision of this Agreement will be deemed to have occurred
if there is or has been any inaccuracy in or breach of, or any failure to
perform or comply with, such representation, warranty, covenant, obligation or
other provision and the term "Breach" means any such inaccuracy, breach or
failure.

         "CERAMCO" - as defined in the first paragraph of this Agreement.

         "CERTIFICATE OF DESIGNATION" - the Certificate of Designation, Powers,
Preferences and Rights of Preferred Stock of PracticeWorks filed with the
Corporations Division of the Secretary of the State of Delaware on or about the
Effective Date in substantially the form attached hereto as EXHIBIT A.

         "CLOSING" - as defined in Section 2.3.

         "CLOSING DATE" - the date and time as of which the Closing actually
takes place.

         "COBRA" - as defined in Section 3.14.5.

         "COMPANY" - Prior to the SoftDent Asset Transfer, Ceramco, and
following the SoftDent Asset Transfer, SoftDent LLC.

         "CONSENT" - any approval, consent, ratification, waiver or other
authorization (including any Governmental Authorization).

         "CONTEMPLATED TRANSACTIONS" - all of the transactions contemplated by
this Agreement, including, without limitation:

                  A.       The contribution of the PracticeWorks Assets by
InfoCure to PracticeWorks in exchange for PracticeWorks' issuance of
PracticeWorks Common Shares to InfoCure;

                  B.       The contribution of the Membership Interests by
Ceramco to PracticeWorks in exchange for PracticeWorks' issuance of
PracticeWorks Preferred Shares to Ceramco;

                  C.       The assumption by PracticeWorks of the PracticeWorks
Assumed Liabilities;

                  D.       The execution, delivery and performance of this
Agreement, the Restrictive Covenant Agreements and the other agreements and
documents referenced in Section 2.5.A; and

                  E.       The performance by the parties hereto of their
respective covenants and obligations under this Agreement.

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         "CONTRACT" - any agreement, contract, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

         "DAMAGES" - any loss, liability, claim, damages (excluding incidental
and consequential damages), expense (including, without limitation,
out-of-pocket costs of investigation and defense and reasonable attorneys'
fees), whether or not involving a third party.

         "DEALER" - any independent salesperson, distributor, sublicensor or
other remarketer or sales organization which is considered by the Company to be
a "Value Added Reseller" of the software products of the SoftDent Business.

         "DEALER AGREEMENTS" - as defined in Section 3.28.

         "DEALER AGREEMENT CLAIM" - as defined in Section 9.1 A(iv).

         "DENTSPLY" - as defined in the first paragraph of this Agreement.

         "DENTSPLY PLANS" - as defined in Section 3.14.1.

         "ENCUMBRANCE" - any charge, claim, community property interest,
condition, equitable interest, lien, option, pledge, security interest, right of
first refusal, or legal or contractual restriction of any kind, including any
restriction on use, voting, transfer, receipt of income or exercise of any other
attribute of ownership.

         "ENVIRONMENTAL LAWS" - as defined in Section 3.19.

         "ERISA" - the Employee Retirement Income Security Act of 1974, as
amended, and regulations and rules issued pursuant to that Act, as amended.

         "ERISA AFFILIATE" - any person which would be required to be aggregated
with Dentsply, Ceramco, SoftDent LLC and/or any subsidiary thereof under I.R.C.
ss.414(b), (c), (m) and/or (o) at any time on or prior to the Closing Date.

         "FORM 10" - as defined in Section 4.7.

         "GAAP" - generally accepted accounting principles of the United States,
applied on a basis consistent with the basis on which the Financial Statements
were prepared.

         "GOVERNMENTAL AUTHORIZATION" - any approval, consent, license, permit,
waiver or other authorization issued, granted, given or otherwise made available
by or under the authority of any Governmental Body or pursuant to any Legal
Requirement.

         "GOVERNMENTAL BODY" - any:

                  A.       Nation, state, county, city, town, village, district
or other jurisdiction of any nature;

                  B.       Federal, state, local, municipal, foreign or other
government;

                  C.       Governmental or quasi-governmental authority of any
nature (including any governmental agency, branch, department, official or
entity and any court or other tribunal); or

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                  D.       Body exercising or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature.

         "HSR ACT" - the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

         "INDEMNIFICATION CLAIM" - as defined in Section 9.4 A(i).

         "INDEMNIFIABLE DAMAGES" means SoftDent Indemnifiable Damages,
PracticeWorks Indemnifiable Damages or InfoCure Indemnifiable Damages, as
applicable.

         "INDEMNIFIED PARTY" - as defined in Section 9.4 A(i).

         "INDEMNIFYING PARTY" - as defined in Section 9.4 A(i).

         "INFOCURE" - as defined in the first paragraph of this Agreement.

         "INFOCURE INDEMNIFIABLE DAMAGES" - as defined in Section 9.3A.

         "INFOCURE INDEMNIFIED PARTY" - as defined in Section 9.3.

         "INFOCURE INDEMNIFYING PARTY" - as defined in Section 9.3.

         "IRC" - the Internal Revenue Code of 1986, as amended, and regulations
issued by the IRS pursuant to the Internal Revenue Code, as amended.

         "IRS" - the United States Internal Revenue Service, and, to the extent
relevant, the United States Department of the Treasury.

         "INTELLECTUAL PROPERTY" - (i) all inventions (whether patentable or
not), invention disclosures, improvements, trade secrets, proprietary
information, proprietary processes or formulae, franchises, licenses, know how,
technology, technical data and customer lists, and all documentation relating to
any of the foregoing, (ii) documentation, specifications, user manuals, designs,
drawings and other literary works, (iii) Software, (iv) customer lists,
maintenance and warranty records, databases and data collections and other
confidential or proprietary business information, (v) trademarks, servicemarks,
tradenames, logos, domain names, internet addresses and other proprietary
indicia or addresses and all goodwill associated therewith, and (vi) all
documentation related to any of the foregoing.

         "INTELLECTUAL PROPERTY RIGHTS" - any or all forms of legal rights and
protections that may be obtained for, or may pertain to, the Intellectual
Property, in any country of the world, including all right, title and interest
arising under common and statutory law to all: (i) Patents; (ii) all copyrights,
copyright registrations and applications therefore and all other rights
corresponding thereto; (iii) all rights to all mask works, mask work
registrations and applications therefore; (iv) all industrial designs and any
registrations and applications therefore; (v) all trade names, logos, domain
names, URLs, common law trademarks and service marks; (vi) trademark and service
mark registrations and applications therefore and all goodwill associated
therewith; (vii) any similar, corresponding or equivalent rights relating to
intangible intellectual property; and (viii) all applications, registrations,
issuances, divisions, continuations, renewals, reissuances and extensions of the
foregoing.

         "KNOWLEDGE" - means with respect to any corporate party hereto, with
respect to any matter in question, knowledge of the executive officers of such
party after reasonable inquiry and with respect to any

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individual parties hereto, actual knowledge. As to the Company, relating to the
SoftDent Business, executive officers shall consist of the executive officers of
Ceramco and the following management personnel: Jeffrey Lyon, Robert Chassion,
Scott Leeper, Larry Greenspan, Kathleen McGrath and, solely as to Section 3.28
hereof, Mark Dilatush.

         "LEGAL REQUIREMENT" - any federal, state, local, municipal, foreign,
international or other administrative order, constitution, law, ordinance,
regulation, statute or treaty.

         "LICENSE GRANTED" - a license or other agreement under which a Person
grants rights to others in Intellectual Property.

         "LICENSE RECEIVED" - a license or other agreement under which a Person
is granted rights by others in Intellectual Property.

         "MEMBERSHIP INTERESTS" - as defined in the first recital to this
Agreement.

         "MOST RECENT BALANCE SHEET" - as defined in Section 3.4 B.

         "ORDER" - any award, decision, injunction, judgment, order, ruling,
subpoena or verdict entered, issued, made or rendered by any court,
administrative agency, or other Governmental Body or by any arbitrator.

         "ORDINARY COURSE OF BUSINESS" - an action taken by a Person will be
deemed to have been taken in the "Ordinary Course of Business" only if:

                  A.       Such action is reasonably consistent with the past
practices of such Person and is taken in the ordinary course of the normal
day-to-day operations of such Person; and

                  B.       Such action is not required to be authorized by the
board of directors of such Person (or by any Person or group of Persons
exercising similar authority).

         "ORGANIZATIONAL DOCUMENTS" - (i) the Articles or Certificate of
Incorporation and the Bylaws of a corporation; (iii) the Articles or Certificate
of Formation and the Operating Agreement of a limited liability company; (iii)
any charter or similar document adopted or filed in connection with the
creation, formation or organization of a Person and (iv) any amendment to any of
the foregoing.

         "PATENTS" - all United States and foreign patents and applications
therefore and all reissues, divisions, renewals, extensions, provisionals,
continuations and continuations-in-part thereof.

         "PENSION PLAN" - an employee pension benefit plan as such term is
defined in ERISA ss.3(2).

         "PERSON" - any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.

         "PLAN" - as defined in Section 3.14.1.

         "PRACTICEWORKS" - as defined in the first paragraph of this Agreement.

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          "PRACTICEWORKS ASSETS" - all of the assets owned by InfoCure or any of
its Affiliates used solely in the PracticeWorks Business.

          "PRACTICEWORKS ASSET TRANSFER" - as defined in the recitals of this
Agreement.

         "PRACTICEWORKS ASSUMED LIABILITIES" - all liabilities and obligations
of InfoCure or any of its Affiliates relating solely to the PracticeWorks
Business.

         "PRACTICEWORKS BUSINESS" - the business of developing, marketing,
licensing and supporting InfoCure's information management technology to
dentists, orthodontists and oral and maxillofacial surgeons (as conducted by
InfoCure or any of its Affiliates prior to the Effective Date).

         "PRACTICEWORKS COMMON SHARES" - _______[NEED TO FILL IN] shares of
PracticeWorks common stock, $.01 par value per share, which are issuable
pursuant to Section 2.1 of this Agreement.

         "PRACTICEWORKS DISCLOSURE SCHEDULE" - the Disclosure Schedule
previously delivered by InfoCure and PracticeWorks, which Disclosure Schedule
has been arranged in paragraphs corresponding to the numbered and lettered
paragraphs contained in Article 4. Unless otherwise specified, capitalized terms
used in the PracticeWorks Disclosure Schedule shall be as defined in this
Agreement.

         "PRACTICEWORKS INDEMNIFIABLE DAMAGES" - as defined in Section 9.2 A.

         "PRACTICEWORKS INDEMNIFIED PARTY" - as defined in Section 9.2.

         "PRACTICEWORKS INDEMNIFYING PARTY" - as defined in Section 9.2.

         "PRACTICEWORKS MATERIAL ADVERSE EFFECT" - any change, event, violation,
inaccuracy, circumstance or effect that is materially adverse to the business,
assets, liabilities, financial condition or results of operations of the
PracticeWorks Business.

          "PRACTICEWORKS PREFERRED SHARES" - 32,000 shares of PracticeWorks
preferred stock, $.01 par value per share, which are issuable pursuant to
Section 2.2 of this Agreement, and are further described in the Certificate of
Designation.

         "PRE-CLOSING TAX PERIOD" - as defined in Section 9.1 B(i).

         "POST-CLOSING TAX PERIOD" - as defined in Section 9.1 B(i).

         "PROCEEDING" - any action, arbitration, audit, hearing, investigation
(but only investigations of which the applicable Person has Knowledge),
litigation or suit (whether civil, criminal, administrative, investigative or
informal) commenced (to the Knowledge of the applicable Person), brought,
conducted or heard by or before, or otherwise involving, any Governmental Body
or arbitrator.

         "RELATED PERSON" - with respect to a specified Person:

                  A.       Any Affiliate of such specified Person;

                  B.       Any Person that holds a Material Interest in such
specified Person;

                  C.       Each Person that serves as a director, officer,
partner, executor or trustee of such specified Person (or in a similar
capacity);

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                  D.       Any Person in which such specified Person holds a
Material Interest; and

                  E.       Any Person with respect to which such specified
Person serves as a general partner or a trustee (or in a similar capacity).

                  For purposes of this definition, "Material Interest" means
direct or indirect beneficial ownership (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended) of voting securities or other
voting interests representing at least twenty-five percent (25%) of the
outstanding voting power of a Person or equity securities or other equity
interests representing at least twenty-five percent (25%) of the outstanding
equity securities or equity interests in a Person.

         "REPRESENTATIVE" - with respect to a particular Person, any director,
officer, agent or other representative of such Person, including legal counsel,
accountants and financial advisors.

         "RESTRICTIVE COVENANT AGREEMENTS" - as defined in Section 2.5.A(iii).

         "SECURITIES ACT" - the Securities Act of 1933, as amended or any
successor law, and regulations and rules issued pursuant to that Act or any
successor law.

         "SOFTDENT ACCOUNTS RECEIVABLE" - as defined in Section 3.8.

         "SOFTDENT ASSETS" - all of the assets owned by Ceramco or any of its
Affiliates used solely in the SoftDent Business which shall constitute all of
the assets of SoftDent LLC at Closing.

         "SOFTDENT ASSET TRANSFER" - as defined in the first recital to this
Agreement.

          "SOFTDENT ASSUMED LIABILITIES" - all liabilities and obligations of
Ceramco or any of its Affiliates relating solely to the SoftDent Business which
shall constitute all of the liabilities and obligations of SoftDent LLC at
Closing.

         "SOFTDENT BUSINESS" - the business of developing, marketing, licensing
and supporting Company's SoftDent software product (as conducted by Company and
its Affiliates prior to the Effective Date).

         "SOFTDENT DISCLOSURE SCHEDULE" - the Disclosure Schedule previously
delivered by Dentsply and Ceramco, which Disclosure Schedule has been arranged
in paragraphs corresponding to the numbered and letter paragraphs contained in
Article 3. Unless otherwise specified, capitalized terms used in the SoftDent
Disclosure Schedule shall be as defined in this Agreement.

         "SOFTDENT FINANCIAL STATEMENTS" - as defined in Section 3.4.

         "SOFTDENT INDEMNIFIABLE DAMAGES" - as defined in Section 9.1 A.

         "SOFTDENT INDEMNIFIED PARTY" - as defined in Section 9.1.

         "SOFTDENT INDEMNIFYING PARTY" - as defined in Section 9.1.

         "SOFTDENT LEASES" - as defined in Section 3.7 A.

         "SOFTDENT LICENSES GRANTED" - as defined in Section 3.22 E.

         "SOFTDENT LICENSES RECEIVED" - as defined in Section 3.22 D.

         "SOFTDENT LLC" - as defined in the first paragraph of this Agreement.

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         "SOFTDENT MATERIAL ADVERSE EFFECT" - any change, event, violation,
inaccuracy, circumstance or effect that is materially adverse to the business,
assets, liabilities, financial condition or results of operations of the
SoftDent Business.

         "SOFTDENT PERSONNEL" - as defined in Section 3.13(e).

         "SOFTDENT REGISTERED INTELLECTUAL PROPERTY" - as defined in Section
3.22 C.

         "SOFTWARE" - source code, object code, designs, flow charts,
algorithms, display screens, firmware, development tools, files, records and
data, all media on which any of the foregoing is recorded and other materials
related to computer software.

         "TAX" - (i) any and all federal, territorial, state, local and foreign
taxes, assessments and other governmental charges, duties, impositions and
liabilities relating to taxes, including taxes based upon or measured by gross
receipts, income, profits, sales, use and occupation, and value added, ad
valorem, transfer, franchise, withholding, payroll, recapture, employment,
excise and property taxes and escheatment payments, together with all interest,
penalties and additions imposed with respect to such amounts and any obligations
under any agreements or arrangements with any other person with respect to such
amounts and including any liability for taxes of a predecessor entity; (ii) any
liability for the payment of any amounts of the type described in clause (i) as
a result of being or ceasing to be a member of an affiliated, consolidated,
combined or unitary group for any period (including, without limitation, any
liability under Treas. Reg. ss.1.1502-6 or any comparable provision of foreign,
state or local law); and (iii) any liability for the payment of any amounts of
the type described in clause (i) or (ii) as a result of any express or implied
obligation to indemnify any other person or as a result of any obligations under
any agreements or arrangements with any other person with respect to such
amounts and including any liability for taxes of a predecessor entity.

         "TAX RETURN" - any return (including any information return), report,
statement, schedule, notice, form, or other document or information 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.

         "THIRD PARTY CLAIM" - as defined in Section 9.4 B(i).

         "THREATENED" - a claim, Proceeding, dispute, action or other matter
will be deemed to have been "Threatened" if any demand or statement has been
made in writing or any notice has been given in writing that would lead a
prudent Person to conclude that such a claim, Proceeding, dispute, action or
other matter is likely to be asserted, commenced, taken or otherwise pursued in
the future.

         "WELFARE PLAN" - an employee welfare benefit plan as such term is
defined in ERISA ss.3(1).

2.       CONTRIBUTION.

         2.1.     INFOCURE AGREEMENT TO CONTRIBUTE ASSETS; ASSUMPTION OF
LIABILITIES. On or before the Closing Date, as a contribution of capital,
InfoCure shall contribute all of its right, title and interest in and to the
PracticeWorks Assets to PracticeWorks, such PracticeWorks Assets to be listed in
that certain Distribution Agreement between InfoCure and PracticeWorks
referenced in the Form 10, and PracticeWorks shall accept as a contribution of
capital from InfoCure, all right, title and interest of InfoCure in and to the
PracticeWorks Assets. At the Closing, PracticeWorks shall assume all of the
PracticeWorks Assumed Liabilities which first accrue or are to be performed or
satisfied from and after the Closing, such

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PracticeWorks Assumed Liabilities to be listed in that certain Distribution
Agreement between InfoCure and PracticeWorks referenced in the Form 10. At the
Closing, PracticeWorks shall issue the PracticeWorks Common Shares to InfoCure,
which shares upon issuance shall be fully-paid and non-assessable.

         2.2.     CERAMCO AGREEMENT TO CONTRIBUTE ASSETS TO SOFTDENT LLC;
ASSUMPTION OF LIABILITIES BY SOFTDENT LLC; CERAMCO AGREEMENT TO CONTRIBUTE
MEMBERSHIP INTERESTS. Subject to the terms and conditions of this Agreement,
prior to the Closing, (i) Ceramco shall assign, transfer and deliver to SoftDent
LLC, as a contribution of capital, all of its right, title and interest in and
to the SoftDent Assets, such SoftDent Assets to be listed on SCHEDULE 2.2
attached hereto, and Ceramco and SoftDent LLC shall accept as a contribution of
capital from Ceramco, all right, title and interest of Ceramco in and to the
SoftDent Assets free and clear of any Encumbrances, other than the SoftDent
Assumed Liabilities and (ii) SoftDent LLC shall assume all of the SoftDent
Assumed Liabilities which first accrue or are to be performed or satisfied from
and after the date of the SoftDent Asset Transfer, such SoftDent Assumed
Liabilities to be listed on SCHEDULE 2.2 attached hereto. Subject to the terms
and conditions of this Agreement, at the Closing, Ceramco shall assign, transfer
and deliver to PracticeWorks, as a contribution of capital, the Membership
Interests, and PracticeWorks shall accept as a contribution of capital from
Ceramco, all right, title and interest to the Membership Interests. The
Membership Interests shall not be subject to any liens, claims or other
encumbrances. At the Closing, PracticeWorks shall issue the PracticeWorks
Preferred Shares to Ceramco, which shares upon issuance shall be fully-paid and
non-assessable.

         2.3.     CLOSING. The closing of the Contemplated Transactions (the
"CLOSING") will take place at the offices of Morris, Manning & Martin, L.L.P.,
at 1600 Atlanta Financial Center, 3343 Peachtree Road, N.E., Atlanta, Georgia
30326, at 10:00 a.m. (local time) upon the later of (a) satisfaction of the
condition set forth in Sections 6.10 and 7.8 below (b) five business days
following satisfaction of the conditions set forth in Sections 6.4 and 7.4
below, or (c) at such other time and place as the parties may agree (the
"CLOSING DATE").

                  Except as otherwise provided in Section 8 hereof, failure to
consummate the Contemplated Transactions provided for in this Agreement on the
date and time and at the place determined pursuant to this Section 2.3 will not
result in the termination of this Agreement and will not relieve any party of
any obligation under this Agreement.

         2.4.     CLOSING OBLIGATIONS.  At the Closing:

                  A.       Ceramco will deliver to PracticeWorks:

                           (i)      Membership Certificates. Certificates
representing the Membership Interests, duly endorsed (or accompanied by duly
executed stock powers) for transfer to PracticeWorks;

                           (ii)     Member Release Agreements. Member Release
Agreements properly executed by Dentsply and Ceramco, substantially in the form
of EXHIBIT B attached hereto;

                           (iii)    Opinion of Counsel. An opinion dated the
Closing Date from Morgan, Lewis and Bockius LLP, counsel for Dentsply, Ceramco
and SoftDent LLC, substantially in the form of EXHIBIT C attached hereto;

                           (iv)     Restrictive Covenant Agreements. A
restrictive covenant agreement from each of Dentsply and Ceramco, substantially
in the form of EXHIBIT D hereto (collectively, "RESTRICTIVE COVENANT
AGREEMENTS");

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                            (v)      Directors and Shareholder Resolutions; Good
Standing Certificate. A certified copy of the resolutions of the directors and
shareholders of Ceramco and of the managers and the sole member of SoftDent LLC
approving the Contemplated Transactions and certificates evidencing the good
standing of Ceramco and SoftDent LLC as of a recent practicable date;

                           (vi)     Minute Books; Member's Certificate.
The original minute books of SoftDent LLC to PracticeWorks. The minute books
shall contain minutes and consents of all of the sole member's actions and
meetings, canceled certificates of all previously issued, but no longer
outstanding, membership interests of SoftDent LLC, the resignations of all
officers and managers of SoftDent LLC effective the close of business on the
Closing Date, copies of the Certificate of Formation of SoftDent LLC and any
amendments thereto certified by the office of the Secretary of State of
Delaware, and the Operating Agreement of SoftDent LLC. In addition, SoftDent LLC
shall have delivered to PracticeWorks and its legal counsel a certificate of
SoftDent LLC's sole member relating to (i) SoftDent LLC 's Certificate of
Formation stating that such certificate has not been amended since the date
of certification by the Delaware Secretary of State, (ii) the Operating
Agreement of SoftDent LLC, stating that such agreement has not been amended from
the form presented, (iii) resolutions adopted by SoftDent LLC's member
authorizing and directing the execution and delivery of this Agreement by
SoftDent LLC, and (iv) the incumbency and genuineness of the signature of each
officer of SoftDent LLC executing this Agreement and the SoftDent Closing
Documents;

                           (vii)    Bill of Sale and Assignment. A bill of sale
and assignment agreement transferring all of Ceramco's right, title and interest
in and to the SoftDent Assets substantially in the form attached hereto as
Exhibit E; and

                           (viii)   Assumption Agreement. An assumption
agreement assuming the SoftDent Assumed Liabilities substantially in the form
attached hereto as Exhibit F.

                  B.       PracticeWorks will deliver to Ceramco and InfoCure:

                           (i)      Common Shares. In exchange for the
contribution of the PracticeWorks Assets by InfoCure and the assumption by
PracticeWorks of the PracticeWorks Assumed Liabilities, as set forth in this
Agreement, InfoCure will receive the PracticeWorks Common Shares; and

                           (ii)     Preferred Shares. In exchange for the
contribution of the Membership Interests by Ceramco, as set forth in this
Agreement, Ceramco will receive the PracticeWorks Preferred Shares.

                  C.       InfoCure shall have delivered to PracticeWorks bills
of sale and assignment agreements transferring all of InfoCure's right, title
and interest in and to the PracticeWorks Assets substantially in the form
attached hereto as Exhibit G.

                  D.       PracticeWorks shall have delivered to InfoCure
assumption agreements assuming the PracticeWorks Assumed Liabilities
substantially in the form attached hereto as Exhibit H.

                  E.       PracticeWorks will deliver to Dentsply and Ceramco:

                           (i)      Opinion of Counsel. An opinion dated the
Closing Date from Morris, Manning & Martin, L.L.P., counsel for InfoCure and
PracticeWorks, substantially in the form of EXHIBIT I attached hereto;

                                      -11-
<PAGE>   12

                           (ii)     Registration Rights Agreement. A
Registration Rights Agreement, substantially in the form attached hereto as
EXHIBIT J; and

                           (ii)     Directors and Shareholder Resolutions; Good
Standing Certificate. Certified copies of the resolutions of the directors of
InfoCure and of the directors and shareholders of PracticeWorks approving the
Contemplated Transactions. InfoCure and PracticeWorks shall have delivered to
Dentsply and Ceramco certificates evidencing the good standing of InfoCure and
Ceramco as of a recent practicable date. PracticeWorks shall have delivered to
Dentsply and Ceramco a copy, certified by the Secretary of State of Delaware of
the Certificate of Incorporation of PracticeWorks as in effect on the Closing
Date reflecting the filing of the Certificate of Designation and a copy,
certified by the Secretary of PracticeWorks, of the By-laws of PracticeWorks as
in effect on the Closing Date.

3.       REPRESENTATIONS AND WARRANTIES OF DENTSPLY, CERAMCO AND SOFTDENT LLC.

         As of the Effective Date hereof and as of the Closing Date, each of
Dentsply, Ceramco and SoftDent LLC, jointly and severally, hereby represents and
warrants to PracticeWorks as follows (subject to such exceptions as are
specifically disclosed in writing in the SoftDent Disclosure Schedule):

         3.1.     ORGANIZATION AND GOOD STANDING.

                  A.       SCHEDULE 3.1(A) of the SoftDent Disclosure Schedule
contains a complete and accurate list of Ceramco's name, its jurisdiction of
incorporation and other jurisdictions in which it is authorized to do business
on account of the SoftDent Business. All of the capital stock of Ceramco is held
by Dentsply.

                           Ceramco is a corporation duly organized, validly
existing, and in good standing under the laws of Delaware, with full corporate
power and authority to conduct its business as it is now being conducted, to own
or use the properties and assets that it purports to own or use, and to perform
all its obligations under Applicable SoftDent Contracts.

                           Ceramco is duly qualified to do business as a foreign
corporation and is in good standing under the laws of each state or other
jurisdiction in which either the ownership or use of the properties owned or
used by it in connection with the SoftDent Business, or the nature of the
activities conducted by it in connection with the SoftDent Business, requires
such qualification, except where the failure to be so qualified would not have a
SoftDent Material Adverse Effect.

                  B.       SCHEDULE 3.1(B) of the SoftDent Disclosure Schedule
contains a complete and accurate list of SoftDent LLC's name, its jurisdiction
of incorporation and other jurisdictions in which it is authorized to do
business.

                           SoftDent LLC is a limited liability company duly
organized, validly existing, and in good standing under the laws of Delaware,
with full power and authority to conduct its business as it is now being
conducted, to own or use the properties and assets that it purports to own or
use, and to perform all its obligations under Applicable SoftDent Contracts.

                           SoftDent LLC is duly qualified to do business as a
foreign corporation and is in good standing under the laws of each state or
other jurisdiction in which either the ownership or use of the

                                      -12-
<PAGE>   13

properties owned or used by it, or the nature of the activities conducted by it,
requires such qualification, except where the failure to be so qualified would
not have a SoftDent Material Adverse Effect.

         3.2.     AUTHORITY; NO CONFLICT.

                  A.       This Agreement has been duly and validly authorized,
executed and delivered by Dentsply, Ceramco and SoftDent LLC, and, assuming the
due authorization, execution and delivery hereof by InfoCure and PracticeWorks,
constitutes the legal, valid, and binding obligation of Dentsply, Ceramco and
SoftDent LLC, enforceable against Dentsply, Ceramco and SoftDent LLC in
accordance with its terms. Upon the execution and delivery by Dentsply, Ceramco
and SoftDent LLC of the Restrictive Covenant Agreements, as applicable
(collectively, "SOFTDENT'S CLOSING DOCUMENTS"), SoftDent's Closing Documents
will constitute the legal, valid, and binding obligations of Dentsply, Ceramco
and SoftDent LLC, enforceable against Dentsply, Ceramco and SoftDent LLC in
accordance with their respective terms.

                           Dentsply, Ceramco and SoftDent LLC have the absolute
and unrestricted right, power (corporate or otherwise), authority, and capacity
to execute and deliver this Agreement and SoftDent's Closing Documents and to
perform their obligations under this Agreement and SoftDent's Closing Documents.
No additional corporate proceedings on the part of Dentsply or Ceramco or
proceedings as a limited liability company of SoftDent LLC are necessary to
authorize the execution and delivery of this Agreement and SoftDent's Closing
Documents

                  B.       Except as set forth in SCHEDULE 3.2 of the SoftDent
Disclosure Schedule, neither the execution and delivery of this Agreement nor
the consummation or performance of any of the Contemplated Transactions will,
directly or indirectly (with or without notice or lapse of time):

                           (i)      Contravene, conflict with, or result in a
violation of (1) any provision of the Organizational Documents of Dentsply,
Ceramco or SoftDent LLC in effect on the date hereof or (2) any resolution
adopted by the board of directors or the stockholders of Dentsply or Ceramco or
the managers or member of SoftDent LLC in effect on the date hereof;

                           (ii)     Contravene, conflict with, or result in a
violation of any Legal Requirement or any Order to which Dentsply, Ceramco or
SoftDent LLC, or any of the SoftDent Assets, is subject;

                           (iii)    To the Knowledge of such parties contravene,
conflict with, or result in a violation of any of the terms or requirements of
any Governmental Authorization held by Dentsply, Ceramco or SoftDent LLC;

                           (iv)     To the Knowledge of such parties contravene,
conflict with, or result in a violation or breach of any provision of, or give
any Person the right to declare a default or exercise any remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate, or modify,
any Applicable SoftDent Contract; or

                           (v)      Result in the imposition or creation of any
material Encumbrance upon or with respect to any of the SoftDent Assets,

         except, in the cases of clauses (ii) through (v) for any such
contravention, conflict, violation or liability as would not have a SoftDent
Material Adverse Effect.

                  Except as set forth in SCHEDULE 3.2 of the SoftDent Disclosure
Schedule, neither Ceramco nor SoftDent LLC is required to give any notice to or
obtain any Consent from any Person in connection with

                                      -13-
<PAGE>   14

the execution and delivery of this Agreement or the consummation or performance
of any of the Contemplated Transactions.

         3.3.     CAPITALIZATION. The authorized and issued equity securities of
SoftDent LLC consist of one hundred (100) membership interests, of which
________ (_______)[NEED TO FILL IN] are issued and outstanding and constitute
the Membership Interests. Ceramco is the sole member of SoftDent LLC. Ceramco is
and will be immediately prior to the Closing Date the record and beneficial
owner and holder of the Membership Interests, free and clear of all
Encumbrances. With the exception of the Membership Interests (which are owned by
Ceramco), no other equity interests or securities of SoftDent LLC are
outstanding. All of the outstanding equity securities of SoftDent LLC have been
duly authorized and validly issued and are fully paid and nonassessable. There
are no Contracts relating to the issuance, sale, or transfer of any equity
securities or other securities of SoftDent LLC.

                  None of the outstanding equity securities or other securities
of SoftDent LLC was issued in violation of the Securities Act or any other Legal
Requirement. SoftDent LLC does not own, nor does it have any Contract to
acquire, any equity securities or other securities of any Person or any direct
or indirect equity or ownership interest in any other business.

         3.4.     FINANCIAL STATEMENTS. Attached to SCHEDULE 3.4 of the SoftDent
Disclosure Schedule are:

                  A.       Unaudited balance sheets of the SoftDent Business, as
of December 31 in each of the years 1998 and 1999, and the related consolidated
statements of income, changes in stockholders' equity, and cash flow for each of
the fiscal years then ended.

                  B.       Unaudited balance sheet of the SoftDent Business, as
of November 30, 2000 (the "MOST RECENT BALANCE SHEET"), and the related profit
and loss statement for the eleven (11) month period ending on November 30, 2000.

                  C.       The foregoing financial statements and related notes
(collectively referred to as the "SOFTDENT FINANCIAL STATEMENTS") fairly present
the financial condition and the results of operations, changes in stockholders'
equity, and cash flow of the SoftDent Business as at the respective dates of and
for the periods referred to in such financial statements, all in accordance with
GAAP, subject to the absence of notes and, in the case of interim financial
statements, to normal recurring year-end adjustments (the effect of which will
not, individually or in the aggregate, result in a SoftDent Material Adverse
Effect).

                  D.       The SoftDent Financial Statements reflect the
consistent application of such accounting principles throughout the periods
involved.

         3.5.     BOOKS AND RECORDS. The books of account, minute book,
membership interest record book, and other records of SoftDent LLC, all of which
have been made available to InfoCure and PracticeWorks, are complete and correct
in all material respects and have been maintained in accordance with sound
business practices.

                  The minute book of SoftDent LLC contains accurate and complete
records of all meetings held of, and action taken by, the members and the
managers of SoftDent LLC, and no meeting of any such members or managers has
been held for and no material action has been taken at any meeting for which
minutes have not been prepared and are not contained in such minute book. All of
those books and records will be transferred to PracticeWorks within a reasonable
time following the Closing Date.

                                      -14-
<PAGE>   15

         3.6.     TITLE TO PROPERTIES; ENCUMBRANCES.

                  A.       SCHEDULE 3.6 of the SoftDent Disclosure Schedule
contains a complete and accurate list of all tangible SoftDent Assets,
including, but not limited to, vehicles, equipment, furniture, and fixtures and
all other items of personal property of Company that are used solely in the
SoftDent Business indicating, with respect to each, those which are owned by
Company and those which are leased by Company.

                  B.       Company has (a) with respect to those assets listed
on SCHEDULE 3.6 as "owned," good and merchantable title to all such assets, free
and clear of all liens, claims, charges, security interests, and other
encumbrances of any kind and of any nature, except as disclosed on SCHEDULE 3.6,
and (b) with respect to assets listed on SCHEDULE 3.6, as "leased," a valid, and
enforceable leasehold interest.

                  C.       All of the tangible SoftDent Assets are in good
operating condition (normal wear and tear excepted), are reasonably fit for the
purposes for which such properties are presently used, are adequate and usable
for the continued operation of the SoftDent Business as the same is presently
conducted, and none of such properties are in need of maintenance or repairs
except for ordinary, routine maintenance and repairs, the cost of which will not
vary materially from historic patterns.

         3.7.     REAL PROPERTY LEASES.

                  A.       Company does not hold any interest in real property
used solely in the SoftDent Business (including, but not limited to, any
interest as a fee owner or any interest as lessor, lessee, sublessor, sublessee,
assignor, assignee or guarantor or other surety) except for the leasehold
interests described on SCHEDULE 3.7 (the "SOFTDENT LEASES"), true and complete
copies of which have been delivered to PracticeWorks, and such Schedule
specifies in the case of each SoftDent Lease the name of the lessor, sublessor,
lessee or sublessee thereunder, the lease term and the basic annual rental and
other items paid or payable with respect thereto.

                  B.       Company has valid, binding and enforceable leases and
subleases with respect to the SoftDent Leases free and clear of all liens,
claims and encumbrances of any kind, except that the enforceability of the
SoftDent Leases may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors' rights
generally and (ii) equitable principles which may limit the availability of
certain equitable remedies (such as specific performance). Neither Company nor,
to the Knowledge of Company, any other party to any such lease has breached any
provision of, or is in default in any respect under, the terms of such lease,
nor does there exist any event which with notice or the lapse of time or both
would constitute a breach or cause a default in any respect under the terms of
any such lease, except for any such breach, default or event as would not have a
SoftDent Material Adverse Effect. Except as set forth on SCHEDULE 3.7 of the
SoftDent Disclosure Schedule, the Contemplated Transactions do not require the
consent of any lessor under, and will not result in the termination of any
SoftDent Lease.

                  C.       The copies of the SoftDent Leases heretofore provided
by Ceramco to PracticeWorks are true, correct and complete copies of such
leases. The SoftDent Leases have not been modified or amended since the
commencement of the terms specified in the respective leases, except as
disclosed in the copies made available to PracticeWorks.

                  D.       To Company's Knowledge, the buildings, plants and
structures used solely in the SoftDent Business are structurally sound, are in
good operating condition and repair, and are adequate for the uses to which they
are being put, and none of such buildings, plants or structures is in need of
maintenance or

                                      -15-
<PAGE>   16

repairs except for ordinary, routine maintenance and repairs that are not
material in nature or cost. The building, plants and structures used solely in
the SoftDent Business are sufficient for the continued conduct of the SoftDent
Business after the Closing in substantially the same manner as conducted prior
to the Closing.

         3.8.     ACCOUNTS RECEIVABLE. All accounts receivable of Ceramco that
are reflected on the Most Recent Balance Sheet and all accounts receivable of
Company relating to the SoftDent Business that will be reflected on the
accounting records of Company as of the Closing Date (collectively, the
"SOFTDENT ACCOUNTS RECEIVABLE") represent or will represent, in all material
respects, valid obligations arising from sales actually made or services
actually performed in the Ordinary Course of Business. Unless paid prior to the
Closing Date, the SoftDent Accounts Receivable are or will be as of the Closing
Date collectible, in all material respects, net of the respective reserves shown
on the Most Recent Balance Sheet.

                  SCHEDULE 3.8 of the SoftDent Disclosure Schedule contains a
complete and accurate list of all SoftDent Accounts Receivable as of October 31,
2000, which list sets forth the aging of such SoftDent Accounts Receivable.

                  Except as expressly provided for in this Agreement, Ceramco
will cause all indebtedness owed to SoftDent LLC by Ceramco to be paid in full
prior to Closing.

         3.9.     INVENTORY. All inventory included in the SoftDent Assets,
whether or not reflected in the Financial Statements, consists of a quality and
quantity usable and salable in the Ordinary Course of Business, except for
immaterial amounts of obsolete items and items of below-standard quality, all of
which have been written off or written down to net realizable value in the Most
Recent Balance Sheet or on the accounting records of Company as of the Closing
Date, as the case may be. The quantities of each item of inventory (whether raw
materials, work-in-process, or finished goods) are not excessive, but are
reasonable in the present circumstances of the SoftDent Business.

         3.10.    NO UNDISCLOSED LIABILITIES. Except as set forth in SCHEDULE
3.10 of the SoftDent Disclosure Schedule, Company has no liability or obligation
of any nature relating to the SoftDent Business in excess of $25,000 (whether
known or unknown and whether absolute, accrued, contingent, or otherwise) except
for liabilities or obligations reflected or reserved against in the Most Recent
Balance Sheet and current liabilities incurred in the Ordinary Course of
Business since the date thereof.

         3.11.    CUSTOMERS AND SUPPLIERS. SCHEDULE 3.11 sets forth an accurate
list of all customers representing 5% or more of the revenues of the SoftDent
Business in any of the periods covered by the Financial Statements. None of the
suppliers of the SoftDent Business nor any of the customers listed in SCHEDULE
3.11 has canceled or otherwise terminated or, to the knowledge of Company has
threatened in writing delivered to Company to cancel or otherwise terminate its
relationship with Ceramco relating to the SoftDent Business.

         3.12.    TAXES.

                  3.12.1.  Ceramco has not been a member of an Affiliated Group
filing a consolidated federal income Tax Return other than a group the common
parent of which is Dentsply. Dentsply, Ceramco and SoftDent LLC each have timely
filed all Tax Returns required to be filed by them with respect to Ceramco and
SoftDent LLC, including, without limitation, all federal, state and local Tax
Returns, have not extended the time to file any Tax Returns that otherwise
currently would be due, and have paid in full or made adequate provision by the
establishment of reserves for all Taxes and other charges which have become due

                                      -16-
<PAGE>   17

or which are attributable to the conduct of the SoftDent Business prior to
Closing. All such Tax Returns were correct and complete in all material
respects. Dentsply and Ceramco will continue to make adequate provision for all
such Taxes and other charges for all periods through the Closing Date.

                  3.12.2.  Neither Ceramco nor SoftDent LLC has any liability
for Taxes of any person other than Ceramco or SoftDent LLC (i) under Treasury
Regulation ss.1.1502-6 (or any similar provision of state, local or foreign
law); (ii) as a transferee or successor; (iii) by contract (including, without
limitation, a tax sharing agreement) or (iv) otherwise. None of Dentsply,
Ceramco or SoftDent LLC has any Knowledge of any tax deficiency proposed or
threatened against Ceramco or SoftDent LLC or the Affiliated Group of which
Dentsply is the common parent. There are no tax liens upon any property or
assets of Ceramco and SoftDent LLC. No written claim has been made to Dentsply,
Ceramco or SoftDent LLC by an authority in a jurisdiction where either the
Affiliated Group of which Dentsply is the common parent, Ceramco or SoftDent LLC
does not file a Tax Return that any of them is or may be subject to taxation by
that jurisdiction.

                  3.12.3.  Dentsply, Ceramco and SoftDent LLC have made all
payments of estimated Taxes when due in amounts sufficient to avoid the
imposition of any penalty with respect to Ceramco, SoftDent LLC or the
Affiliated Group of which Dentsply is the common parent.

                  3.12.4.  All Taxes and other assessments and levies which
Dentsply, Ceramco or SoftDent LLC was required by law to withhold or to collect
on behalf of Ceramco or SoftDent LLC or any of their employees, independent
contractors, creditors, stockholders or other third parties have been duly
withheld and collected, and have been paid over to the proper governmental
entity.

                  3.12.5.  The Tax Returns of Ceramco, SoftDent LLC or the
Affiliated Group of which Dentsply is the common parent have not been audited by
any tax authorities, nor are any such audits in process. There are no
outstanding agreements or waivers extending the statute of limitations
applicable to any Tax Returns of Ceramco, SoftDent LLC or the Affiliated Group
of which Dentsply is the common parent for any period.

                  3.12.6.  SCHEDULE 3.12.6 lists to the best of Company's
Knowledge, all Tax Returns filed with any Governmental Body with respect to
Dentsply, Ceramco or SoftDent LLC, as applicable, with respect to the SoftDent
Business for taxable periods ended on or after March 18, 1998, indicates those
Tax Returns that have been audited, and indicates those Tax Returns that
currently are the subject of audit. Ceramco has delivered to PracticeWorks
correct and complete copies of all federal income Tax Returns, examination
reports, and statements of deficiencies assessed against or agreed to by
Dentsply, Ceramco or SoftDent LLC, as applicable, with respect to the SoftDent
Business, since March 18, 1998.

                  3.12.7.  Neither Ceramco nor SoftDent LLC has filed a consent
under IRC Section 341(f) concerning collapsible corporations. Neither Ceramco
nor SoftDent LLC has made any payments, is not obligated to make any payments,
or is party to any agreement that under certain circumstances could obligate it
to make any payments that will not be deductible pursuant to IRC Sections 280G,
404 or 162(m). There is no contract, agreement, plan or arrangement to which
Ceramco or SoftDent LLC is a party or by which it is bound to compensate any
individual for excise taxes paid pursuant to IRC Section 4999. Neither Ceramco
nor SoftDent LLC is, nor has either been during the applicable period specified
in IRC Section 897(c)(1)(A)(ii), a United States real property holding
corporation within the meaning of IRC Section 897(c)(2). Dentsply, Ceramco and
SoftDent LLC have disclosed on their federal income Tax Returns all positions
taken therein that could give rise to a substantial understatement of federal
income Tax within the meaning of IRC Section 6662. Neither Ceramco nor SoftDent
LLC is a party or has any obligation under any Tax allocation, indemnity or
sharing agreement.

                                      -17-
<PAGE>   18

         3.13.    NO MATERIAL ADVERSE CHANGE. Since November 30, 2000, except as
set forth on SCHEDULE 3.13 of the SoftDent Disclosure Schedule and except for
execution and delivery of this Agreement, Company has conducted the SoftDent
Business in the Ordinary Course of Business and there has not been with respect
to the SoftDent Business:

                  (a)      any SoftDent Material Adverse Effect;

                  (b)      any damage, destruction or loss (whether or not
covered by insurance) affecting the SoftDent Assets or the SoftDent Business in
excess of $25,000 in the aggregate of all such damage, destruction and losses;

                  (c)      (i) any change in the authorized equity securities of
SoftDent LLC or in its securities outstanding, (ii) any change in Ceramco's
ownership interests in SoftDent LLC, (iii) any grant of any options, warrants,
calls, conversion rights or commitments with respect to SoftDent LLC's equity
securities, (iv) the declaration, setting aside or payment of any dividend or
other distribution (whether in cash, stock or property) or payment in respect of
equity securities of SoftDent LLC, (v) any direct or indirect purchase,
redemption, retirement, or other acquisition by SoftDent LLC of any equity
securities, (vi) the issuance of any security convertible into an equity
security of SoftDent LLC, or (vii) any split, combination or reclassification of
any of SoftDent LLC's equity securities;

                  (d)      any issuance, delivery, sale, pledge or other
encumbrance or proposal for any of the foregoing by SoftDent LLC with respect
to, any equity securities or any securities convertible into equity securities,
or subscriptions, rights, warrants or options to acquire any equity securities
or any securities convertible into equity securities, or entry into other
agreements or commitments of any character obligating SoftDent LLC to issue any
such equity securities or convertible securities;

                  (e)      any increase in the compensation or fringe benefits
payable or to become payable by Company to any of its officers, directors, or
employees who are solely engaged in the SoftDent Business or any independent
contractors, other than Dealers engaged on behalf of the SoftDent Business
(collectively, "SOFTDENT PERSONNEL"), except for ordinary and customary bonuses
and salary increases for employees in accordance with past practice or any
payment by Company of any bonus to any SoftDent Personnel, except for bonuses
made to any such SoftDent Personnel consistent with past practice, or any
granting by Company of any increase in severance or termination pay to any
SoftDent Personnel or any entry by Company and any SoftDent Personnel into any
currently effective employment, severance, termination or indemnification
agreement or any agreement the benefits of which are contingent or the terms of
which are materially altered upon the occurrence of a transaction involving the
SoftDent Business of the nature contemplated hereby;

                  (f)      any work interruptions, labor grievances or claims
filed that are likely to have a SoftDent Material Adverse Effect;

                  (g)      any loan to, or any other transaction with, or any
bonuses paid in excess of an aggregate of $25,000 to, any Related Person of
Company, and, in any event, any such transaction was on fair and reasonable
terms no less favorable to Company than would be obtained in a comparable arm's
length transaction with a person which is not such a Related Person;

                  (h)      any collective bargaining agreement;

                                      -18-
<PAGE>   19

                  (i)      any adoption, amendment, modification, or termination
of any bonus, profit sharing, incentive, severance, or other plan, contract, or
commitment for the benefit of any SoftDent Personnel (or taken any such action
with respect to any other Plan);

                  (j)      any licensing or other agreement by Company with
regard to the acquisition or disposition of any Intellectual Property Rights
relating to the SoftDent Business other than in the Ordinary Course of Business;

                  (k)      any sale or transfer, or any agreement to sell or
transfer, any material assets, properties or rights of the SoftDent Business to
any person, including, without limitation, Dentsply and its Affiliates, other
than in the Ordinary Course of Business;

                  (l)      any material change by Company in its accounting
methods, principles or practices in connection with the SoftDent Business,
except as required by concurrent changes in GAAP;

                  (m)      any revaluation by Company of any of the SoftDent
Assets, including, without limitation, writing down the value of capitalized
inventory or writing off notes or accounts receivable other than in the Ordinary
Course of Business;

                  (n)      any cancellation, or agreement to cancel, any
indebtedness or other obligation owing to Company relating to the SoftDent
Business other than settlement of SoftDent Accounts Receivable made in the
Ordinary Course of Business;

                  (o)      any increase, creation, assumption, prepayment or
guaranty of any indebtedness of Company relating solely to the SoftDent
Business, other than accounts payable incurred in the Ordinary Course of
Business, or any extension or modification of any existing indebtedness;

                  (p)      any purchase or acquisition of, or agreement, plan or
arrangement to purchase or acquire, by merging or consolidating with, or by
purchasing any equity interest in or a portion of the assets of, or by any other
manner, any property, rights, assets, corporation, partnership, association or
other business organization or division thereof, or enter into any joint
ventures, strategic partnerships or alliances outside of the Ordinary Course of
Business;

                  (q)      any of the SoftDent Assets made subject to any
Encumbrance;

                  (r)      any change made or authorized in the Organizational
Documents of SoftDent LLC;

                  (s)      any adverse change or any threat of any adverse
change in Company relations with, or any loss or threat of loss of, any of its
major customers, brokers or partners (except Dealers);

                  (t)      any change in any banking or safe deposit
arrangements;

                  (u)      any capital expenditures by Company relating to the
SoftDent Business except in the Ordinary Course of Business and not exceeding
$25,000 in the aggregate of all such capital expenditures;

                  (v)      any repeated, recurring or prolonged shortage,
cessation or interruption of communications, customer access, supplies or
utility services;

                  (w)      any breach, amendment, acceleration, modification,
cancellation or termination, by Company or, to the Knowledge of Company, any
other party thereto, of any agreement, contract, lease, or

                                      -19-
<PAGE>   20

license relating solely to the SoftDent Business to which Company is a party or
by which it is bound nor has Company modified, canceled or waived or settled any
debts or claims held by it or waived or settled any rights or claims, whether or
not in the Ordinary Course of Business which is likely to have a SoftDent
Material Adverse Effect;

                  (x)      any transaction by Company outside the Ordinary
Course of Business; or

                  (y)      any agreement to do any of the foregoing.

         3.14.    EMPLOYEE BENEFITS MATTERS.

                  3.14.1.  SCHEDULE 3.14.1 lists each Pension Plan, each Welfare
Plan, and each Benefit Plan sponsored or maintained by or on behalf of, or to
which contributions are or were made by Dentsply, Ceramco, SoftDent LLC and/or
any of their ERISA Affiliates within the last seven (7) years that provide or
provided benefits, compensation or other remuneration to, or for the benefit of,
current or former employees of Dentsply and/or any subsidiary or any other
individual who provides services to Dentsply and/or any subsidiary (including,
but not limited to, any shareholder, officer, director, employee or consultant),
or any spouse, child or other dependent of such current or former employee or
other individual (collectively, the "DENTSPLY PLANS"). Only current employees of
Dentsply and its subsidiaries participate in the Dentsply Plans, except as
required by I.R.C. ss.4980B and/or ERISA ss.ss.601-609. Copies of all Dentsply
Plans and, to the extent applicable, all related trust agreements, actuarial
reports, and valuations for the most recent three (3) years, all summary plan
descriptions, prospectuses, Annual Report Form 5500's or similar forms (and
attachments thereto) for the most recent three (3) years, all IRS or U.S.
Department of Labor determination letters, and any related documents requested
by InfoCure or PracticeWorks, including all amendments, modifications and
supplements thereto, all material employee and/or participant communications
relating to each of the Dentsply Plans, and all insurance contracts,
administrative services agreements or contracts, have been delivered to
InfoCure, and all of the same are true, correct and complete.

                  3.14.2.  With respect to each Dentsply Plan to the extent
applicable:

                           A.       No litigation or administrative or other
proceeding or investigation is pending or threatened involving such Plan or any
administrator, fiduciary, employee, contributing employer, contractor or agent
of such Plan.

                           B.       To the Knowledge of Dentsply, Ceramco and/or
SoftDent LLC, such Plan has been administered and operated in substantial
compliance with, and has been amended to comply with, all applicable laws,
rules, and regulations for which amendments were required to have been adopted
as of the date of this Agreement, including, without limitation, ERISA, the IRC,
and the regulations issued under ERISA and the IRC.

                           C.       Dentsply and each of its ERISA Affiliates
has made and as of the Closing Date will have made or accrued, all payments and
contributions required, or reasonably expected to be required, to be made under
the provisions of such Plan or required to be made under applicable laws, rules
and regulations, with respect to any period prior to the Closing Date, such
amounts to be determined using the ongoing actuarial and funding assumptions of
the Plan if applicable.

                           D.       On the Closing Date each such Plan that is a
Pension Plan will be fully funded in an amount sufficient to pay all liabilities
(whether or not vested) accrued as of the Closing Date or adequate reserves will
be set up on Dentsply's books and records therefore.

                                      -20-
<PAGE>   21

                           E.       Each such Plan has been administered and
operated only in the ordinary and usual course and in accordance with its terms,
and there has not been in the four (4) years prior hereto any increase in the
liabilities of such Plan beyond increases typically experienced by employers
similar to Dentsply.

                           F.       No such Plan is a multi-employer plan (as
defined in ERISAss.3(37) or ss.4001(a)(3)), is not a single-employer plan (as
defined in ERISA ss.4001(a)(15)), or a defined benefit plan (as defined in ERISA
ss.3(35).

                           G.       To the Knowledge of Dentsply, Ceramco and/or
SoftDent LLC, no Person has engaged in any "prohibited transaction" (as defined
in ERISA ss.406 or Code ss.503(b) or ss.4975) with respect to such Plan on or
prior to the Closing Date, and no Person who would be a fiduciary with respect
to such Plan has breached any of his responsibilities or obligations imposed
upon fiduciaries under Title I of ERISA which would subject Ceramco, SoftDent
LLC or any ERISA Affiliate, or any Person whom Ceramco or SoftDent LLC has an
obligation to indemnify, to any material liability.

                           H.       Such Plan contains provisions which allow
benefits under the Plan to be discontinued at any time and for any reason, and
which allow the Plan to be terminated (or SoftDent LLC's participation in the
Plan to be terminated) by Ceramco and/or SoftDent LLC at any time and for any
reason, and, if such Plan were terminated (or SoftDent LLC's participation in
such Plan were terminated) on or prior to the Closing Date, no additional
liability would be incurred by Ceramco or SoftDent LLC by such action.

                           I.       All material communications to participants
and beneficiaries with respect to each such Plan by Dentsply, Ceramco and/or
SoftDent LLC on or prior to the Closing Date have reflected accurately the
documents and operations of such Plan, and neither Ceramco nor SoftDent LLC has,
as of the Closing Date, any liability under any applicable law by reason of all
material communications or failure to communicate with respect to or in
connection with such Plan.

                           J.       No such Plan provides benefits to any
retiree or other former employee, or any other Person who is not performing
services for Ceramco, except as required by I.R.C.ss.4980B and/or ERISA
ss.ss.601-609.

                           K.       No liability to the Pension Benefit Guaranty
Corporation ("PBGC") has been incurred or will be incurred as of the Closing
Date by Dentsply, Ceramco, SoftDent LLC or any ERISA Affiliate.

                           L.       Neither Dentsply, Ceramco, SoftDent LLC nor
any of their ERISA Affiliates have ceased operations at any facility or
withdrawn from any Pension Plan in a manner which could subject Ceramco,
SoftDent LLC or any ERISA Affiliate to liability under ERISA ss.ss.4062, 4063 or
4064, and no events have occurred or will occur on or prior to the Closing Date
which might give rise to any liability of Ceramco, SoftDent LLC or any ERISA
Affiliate to the PBGC under Title IV of ERISA or which could reasonably be
anticipated to result in any claims being made against Ceramco, SoftDent LLC or
ERISA Affiliate by the PBGC.

                           M.       No entitlement to any benefit (including,
but not limited to, severance pay, unemployment compensation or payment
contingent upon a change in control or ownership of SoftDent LLC) from any such
Plan shall arise, and no acceleration or increase in benefits due any Person
shall occur, by reason of the consummation of the transactions contemplated by
this Agreement.

                                      -21-
<PAGE>   22

                           N.       Neither the execution and delivery of this
Agreement nor the consummation of the Contemplated Transactions will (i) result
in any payment (including severance, unemployment compensation, golden
parachute, bonus or otherwise) becoming due to any shareholder, director or
employee of Company under any Employee Plan or otherwise, (ii) increase any
benefits otherwise payable under any Employee Plan, or (iii) result in the
acceleration of the time of payment or vesting of any such benefits. Company is
neither a party to nor obligated under any agreement, plan, contract or other
arrangements that will result, separately or in the aggregate, in the payment of
any "excess parachute payment" within the meaning of Section 28OG of the Code.

                  3.14.3.  There exists no Pension Plan, Welfare Plan or Benefit
Plan of any ERISA Affiliate (such affiliation being determined immediately prior
to the Closing Date, and not thereafter) of Dentsply, Ceramco or SoftDent LLC
which could possibly result in any liability (under any applicable law) being
imposed upon SoftDent LLC after the Closing Date.

                  3.14.4.  The participants and beneficiary records with respect
to each Plan providing benefits to employees or other Persons performing
services for Company and their spouses, dependents, etc., are in the custody of
Company (or an agent of Company who must, upon demand, provide such records to
Company), and such records accurately state the history of each participant and
beneficiary in connection with each such Plan and accurately state the benefits
earned by and/or owed to each such participant and beneficiary.

                  3.14.5.  Neither Company, nor any of its ERISA Affiliates, nor
any of their agents, employees servants, independent contractors, attorneys,
representatives, actuaries, accountants, officers, or directors, has, prior to
the Closing, materially violated any of the health continuation requirements of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
("COBRA"), the requirements of the Family Medical Leave Act of 1993, as amended,
the requirements of the Women's Health and Cancer Rights Act, as amended, the
requirements of the Newborns' and Mothers' Health Protection Act of 1996, as
amended, the requirements of Title VII of the Civil Rights Act of 1964 and/or
the Civil Rights Act of 1991 and/or 42 U.S.C. ss.1981, all as amended, the
requirements of the Age Discrimination in Employment Act of 1967, the Age
Discrimination Claims Assistance Act of 1988, and the Older Workers' Benefit
Protection Act, all as amended, the requirements of the Americans with
Disabilities Act, as amended, the requirements of ERISA, or any similar
provisions of state law applicable to employees of Company which could result in
liability for SoftDent LLC. None of the Plans promises or provides retiree
medical or other retiree welfare benefits to any person except as required by
applicable law, and Company has not represented, promised or contracted (whether
in oral or written form) to provide such retiree benefits to any employee,
former employee, director, consultant or other person, except to the extent
required by statute.

                  3.14.6.  Company: (i) is in material compliance with all
applicable foreign, federal, state and local laws, rules and regulations
respecting employment, employment practices, terms and conditions of employment,
immigration, and wages and hours, in each case, with respect to current and
former employees, consultants and directors; (ii) has withheld and reported all
amounts required by law or by agreement to be withheld and reported with respect
to wages, salaries and other payments to current and former employees,
consultants and directors; (iii) is not liable for any arrears of wages or any
taxes or any penalty for failure to comply with any of the foregoing; and (iv)
is not liable for any payment to any trust or other fund governed by or
maintained by or on behalf of any governmental authority, with respect to
unemployment compensation benefits, social security or other benefits or
obligations for current and former employees, consultants and directors (other
than routine payments to be made in the normal course of business and consistent
with past practice). Except as disclosed on SCHEDULE 3.14 of the SoftDent
Disclosure Schedule, there are no pending, threatened or reasonably anticipated
claims or actions against Company under any worker's compensation policy or
long-term disability policy in connection with the SoftDent Business.

                                      -22-
<PAGE>   23

         3.15.    COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL
                  AUTHORIZATIONS.

                  A.       To its Knowledge, Company is, and at all times since
March 18, 1998 has been, in compliance with each material Legal Requirement that
is or was applicable to the conduct or operation of the SoftDent Business or the
ownership or use of any of the SoftDent Assets, except for any noncompliance as
would not have a SoftDent Material Adverse Effect. To the Company's Knowledge,
no event has occurred or circumstance exists that (with or without notice or
lapse of time) (i) is likely to constitute or result in a violation by Company
of, or a failure on the part of Company to comply with, any material Legal
Requirement or (ii) is likely to give rise to any obligation on the part of
Company to undertake, or to bear all or any portion of the cost of, any remedial
action of any nature pursuant to a material Legal Requirement. Company has not
received, at any time since March 18, 1998, any written notice or other written
communication from any Governmental Body or any other Person regarding (i) any
actual, alleged, or Threatened violation of, or failure to comply with, any
material Legal Requirement or (ii) any actual, alleged, or threatened obligation
on the part of Company to undertake, or to bear all or any portion of the cost
of, any material remedial action of any nature, in each case relating to the
SoftDent Business.

                  B.       Company does not hold any Governmental Authorizations
in connection with the SoftDent Business, and, to the Knowledge of Company, no
Governmental Authorization is necessary to conduct the SoftDent Business.

                  C.       The execution, delivery and performance by Dentsply,
Ceramco and SoftDent LLC of this Agreement requires no action by or in respect
of, or filing with, any governmental body, agency, official or authority other
than compliance with any applicable requirements of the HSR Act.

                  D.       Company is not required to comply with Legal
Requirements governing franchises or related to any business opportunity statute
to conduct or operate the SoftDent Business or to enter into or perform under
the Dealer Agreements.

         3.16.    LEGAL PROCEEDINGS; ORDERS.

                  A.       Except as set forth in SCHEDULE 3.16 of the SoftDent
Disclosure Schedule, there is no pending Proceeding:

                           (i)      That has been commenced by or against
Company that, to its Knowledge, is likely to have a SoftDent Material Adverse
Effect; or

                           (ii)     That challenges, or is likely to have the
effect of preventing, delaying, making illegal, or otherwise interfering with,
any of the Contemplated Transactions; or

                           (iii)    That, to the Knowledge of Company, has been
commenced by or against any of the officers of Company (but only in their
capacity as such).

                  B.       Except as set forth in SCHEDULE 3.16 of the SoftDent
Disclosure Schedule, to the Knowledge of Company, no such Proceeding has been
Threatened. Ceramco has delivered to PracticeWorks copies of all pleadings and
material correspondence, and other material documents relating to each
Proceeding listed in SCHEDULE 3.16 of the SoftDent Disclosure Schedule.

                  C.       Except as set forth in SCHEDULE 3.16 of the SoftDent
Disclosure Schedule:

                                      -23-
<PAGE>   24

                           (i)      There is no Order to which Company or any of
the SoftDent Assets, are subject;

                           (ii)     To its Knowledge, Company is not subject to
any Order that relates to the SoftDent Business or any of the SoftDent Assets;
and

                           (iii)    To the Knowledge of Company, no officer,
director, agent, or employee of Company is subject to any Order that prohibits
such officer, director, agent, or employee from engaging in or continuing any
conduct, activity, or practice relating to the SoftDent Business.

                  D.       Except as set forth in SCHEDULE 3.16 of the SoftDent
Disclosure Schedule:

                           (i)      Company is, and at all times since December
31, 1998, each has been, in compliance with all of the terms and requirements of
each Order (if any) relating to the SoftDent Business to which Company, or any
SoftDent Assets, is or has been subject, except for any noncompliance as would
not have a SoftDent Material Adverse Effect;

                           (ii)     To the Knowledge of the Company, no event
has occurred or circumstance exists that is likely to constitute or result in
(with or without notice or lapse of time) a violation of or failure to comply
with any term or requirement of any Order relating to the SoftDent Business to
which Company or any SoftDent Assets is subject, except for any violation or
noncompliance as would not have a SoftDent Material Adverse Effect; and

                           (iii)    Company has not received, at any time since
December 31, 1998, any written notice or other written communication from any
Governmental Body or any other Person regarding any actual, alleged, or
threatened violation of, or failure to comply with, any term or requirement of
any Order relating to the SoftDent Business to which Company or any SoftDent
Assets, is or has been subject.

         3.17.    CONTRACTS; NO DEFAULTS.

                  A.       SCHEDULE 3.17(A) of the SoftDent Disclosure Schedule
contains a complete and accurate list, and Ceramco has delivered (other than
agreements on standard forms, the forms of which have been provided pursuant to
this Agreement) to PracticeWorks true and complete copies, of:

                           (i)      Each Applicable SoftDent Contract that
involves performance of services or delivery of goods or materials by Company of
an amount or value annually in excess of $25,000;

                           (ii)     Each Applicable SoftDent Contract that
involves performance of services or delivery of goods or materials to Company of
an amount or value annually in excess of $25,000;

                           (iii)    Each Applicable SoftDent Contract that was
not entered into in the Ordinary Course of Business and that involves
expenditures or receipts of Company annually in excess of $25,000;

                           (iv)     Each lease, rental or occupancy agreement,
license, installment and conditional sale agreement, and other Applicable
SoftDent Contract affecting the ownership of, leasing of, title to, use of, or
any leasehold or other interest in, any personal property (except personal
property leases and installment and conditional sales agreements having a value
per item or aggregate payments annually of less than $25,000 and with terms of
less than one (1) year);

                                      -24-
<PAGE>   25

                           (v)      Each employment or consulting agreement,
contract or commitment with any officer or director or senior management
employee Company engaged solely in the SoftDent Business;

                           (vi)     Each joint venture, partnership, and other
similar Applicable SoftDent Contract involving a sharing of profits, losses,
costs, or liabilities by Company with any other Person;

                           (vii)    Each Applicable SoftDent Contract that is a
joint marketing or development agreement under which Company has continuing
obligations to jointly market any product, technology or service and which may
not be canceled without penalty upon notice of ninety (90) days or less, or any
Applicable SoftDent Contract pursuant to which Company has continuing
obligations to jointly develop any intellectual property that will not be owned,
in whole or in part, by Company and which may not be canceled without penalty
upon notice of ninety (90) days or less;

                           (viii)   Each Applicable SoftDent Contract currently
in force to provide source code to any third party for any product or technology
that is material to the SoftDent Business;

                           (ix)     Each mortgage, indenture, guarantee, loan or
credit agreement, security agreement or other agreement or instrument relating
to the borrowing of money or extension of credit or granting any Encumbrance on
any SoftDent Assets;

                           (x)      Each settlement agreement relating to the
SoftDent Business entered into within two (2) years prior to the date of this
Agreement;

                           (xi)     Each Applicable SoftDent Contract containing
covenants that in any way purport to restrict the business activity of Company
or limit the freedom of Company to engage in the SoftDent Business or to compete
with any Person in the SoftDent Business;

                           (xii)    Each Applicable SoftDent Contract with any
stockholder of Ceramco or any of such stockholder's Affiliates (other than
SoftDent LLC);

                           (xiii)   Each Applicable SoftDent Contract under
which Company has advanced or loaned any amount to any SoftDent Personnel (other
than advances of expenses in the Ordinary Course of Business);

                           (xiv)    Each advertising services, e-commerce or
other Applicable SoftDent Contract involving the promotion of products and
services of third parties by Company;

                           (xv)     Each Applicable SoftDent Contract pursuant
to which Company is obligated to provide maintenance, support or training for
its services or products;

                           (xvi)    Each power of attorney relating to the
SoftDent Business that is currently effective and outstanding;

                           (xvii)   To Company's Knowledge, each Applicable
SoftDent Contract entered into other than in the Ordinary Course of Business
that contains or provides for an express undertaking by Company to be
responsible for consequential damages;

                           (xvii)   Each written warranty, guaranty, and or
other similar undertaking with respect to contractual performance extended by
Company relating to the SoftDent Business other than in the Ordinary Course of
Business; and

                                      -25-
<PAGE>   26

                           (xix)    Each written amendment, supplement, and
modification in respect of any of the foregoing.

                  B.       Except as set forth in SCHEDULE 3.17(B) of the
SoftDent Disclosure Schedule, to Company's Knowledge, no officer, director,
agent or employee of Company is bound by any Contract that purports to limit the
ability of such officer, director, agent or employee to (1) engage in or
continue any conduct, activity, or practice relating to the SoftDent Business or
(2) assign to Company or to any other Person any rights to any invention,
improvement, or discovery.

                  C.       To Company's Knowledge, each Contract identified or
required to be identified in SCHEDULE 3.17(A) of the SoftDent Disclosure
Schedule is in full force and effect and is valid and enforceable in accordance
with its terms, except to the extent that enforceability thereof may be limited
by (i) applicable bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting creditors' rights generally and (ii) equitable principles which
may limit the availability of certain equitable remedies (such as specific
performance).

                  D.       Except as set forth in SCHEDULE 3.17(D) of the
SoftDent Disclosure Schedule:

                           (i)      Company is, and at all times since March 18,
1998, has been, in full compliance with all material terms and requirements of
each Applicable SoftDent Contract under which Company has or had any obligation
or liability or by which Company or any of the SoftDent Assets is or was bound,
except for any failure to comply as would not have a SoftDent Material Adverse
Effect;

                           (ii)     To Company's Knowledge, no event has
occurred or circumstance exists that (with or without notice or lapse of time)
is likely to contravene, conflict with, or result in a violation or breach of,
or give Company or any other Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate, or modify, any Applicable SoftDent Contract, except for any of the
foregoing as would not have a SoftDent Material Adverse Effect; and

                           (iii)    Company has not given to or received from
any other Person, at any time since March 18, 1998, any written notice or other
written communication regarding any material actual, alleged or threatened
violation or breach of, or default under, any Applicable SoftDent Contract.

         3.18.    INSURANCE. SCHEDULE 3.18 of the SoftDent Disclosure Schedule
contains a complete and accurate list of all insurance policies carried by
Dentsply or Ceramco relating to the SoftDent Business or the SoftDent Assets.
All premiums payable under all such policies have been paid, and Dentsply or
Ceramco, as the case may be, is in compliance with the terms of such policies,
except to the extent that any noncompliance would not have a SoftDent Material
Adverse Effect. Such policies of insurance are of the type and in amounts
customarily carried by persons having business similar to the SoftDent Business.
There have been no Threatened terminations of, or material premium increases
with respect to, any of such policies.

         3.19.    ENVIRONMENTAL MATTERS. Company has complied with and is in
compliance with all federal, state, local and foreign statutes, laws,
ordinances, regulations, rules, notices, permits, judgments, orders and decrees
applicable to it, to the SoftDent Business or to the SoftDent Assets relating to
the protection of the environment (collectively, "ENVIRONMENTAL LAWS")
including, without limitation, Environmental Laws relating to air, water, land
and the generation, storage, use, handling, transportation, treatment or
disposal of Hazardous Wastes, Hazardous Materials and Hazardous Substances (as
such terms are defined in any applicable Environmental Law), except to the
extent that noncompliance with any Environmental Laws, either singly or in the
aggregate, does not and would not (i) have a SoftDent Material Adverse Effect or
(ii)

                                      -26-
<PAGE>   27

necessitate a material expenditure by or on behalf of SoftDent LLC. Company has
obtained and complied with all necessary permits and other approvals necessary
to treat, transport, store, dispose of and otherwise handle Hazardous Wastes,
Hazardous Materials and Hazardous Substances and has reported, to the extent
required by all Environmental Laws, all past and present sites owned and
operated by Company, where Hazardous Wastes, Hazardous Materials or Hazardous
Substances have been treated, stored, disposed of or otherwise handled except
where the failure to so comply or report would not have a SoftDent Material
Adverse Effect. There have been no "releases" or threats of "releases" (as
defined in any Environmental Laws) at, from, in or on any property owned or
operated by Company except as permitted by Environmental Laws and except for
such instances that would not have a SoftDent Material Adverse Effect. There is
no on-site or off-site location to which Company has transported or disposed of
Hazardous Wastes, Hazardous Materials and Hazardous Substances or arranged for
the transportation or disposal of Hazardous Wastes, Hazardous Materials and
Hazardous Substances that is the subject of any federal, state, local or foreign
enforcement action or any other investigation that could reasonably be expected
to lead to any claim against either SoftDent LLC or PracticeWorks for any
clean-up cost, remedial work, damage to natural resources or personal injury
(other than claims that would not have a SoftDent Material Adverse Effect)
including, but not limited to, any claim under (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, (ii)
the Resource Conservation and Recovery Act, (iii) the Hazardous Materials
Transportation Act, or (iv) comparable state and local statutes and regulations.

         3.20.    EMPLOYEES.

                  A.       SCHEDULE 3.20 of the SoftDent Disclosure Schedule
contains a complete and accurate list of the following information for each
employee of Company engaged solely in the SoftDent Business, including each
employee on leave of absence or layoff status: employee; name; job title;
current compensation; vacation accrued (as of November 30, 2000); and date of
hire for purposes of benefit accrual, vesting and eligibility to participate
(where applicable) under the Pension Plans, Welfare Plans and Benefit Plans.
Except as set forth on SCHEDULE 3.20, each such employee has entered into a form
"Non-Disclosure Agreement" substantially in the form attached to SCHEDULE 3.20
and each such employee executed his or her non-disclosure agreement prior to or
on the first day of said employee's employment with Company, as a condition of
employment with Company.

                  B.       To the Knowledge of Company, no employee of Company
engaged solely in the SoftDent Business is a party to, or is otherwise bound by,
any agreement or arrangement, including any confidentiality, noncompetition, or
proprietary rights agreement, between such employee and any other Person that
adversely affects or will affect (i) the performance of his or her duties as an
employee of Company or (ii) the ability of Company to conduct the SoftDent
Business.

         3.21.    LABOR RELATIONS; COMPLIANCE. Company has not been nor is it a
party to any collective bargaining or other organized labor Contract relating to
the SoftDent Business. Since March 18, 1998, there has not been, and there is
not presently pending or existing, and to Company's Knowledge there is not
Threatened:

                  A.       Any strike, slowdown, picketing, work stoppage or
employee grievance process;

                  B.       Any Proceeding against or affecting Company in
connection with the SoftDent Business relating to the alleged violation of any
Legal Requirement pertaining to labor relations or employment matters, including
any charge or complaint filed by an employee or union with the National Labor
Relations Board, the Equal Employment Opportunity Commission, or any comparable
Governmental

                                      -27-
<PAGE>   28

Body, organizational activity, or other labor or employment dispute against or
affecting the SoftDent Business or any premises on which the SoftDent Business
is conducted; or

                  C.       Any application for certification of a collective
bargaining agent.

                  D.       There is no lockout of any employees by Company, and
no such action is contemplated by Company. To the Knowledge of Company, it has
complied with all Legal Requirements relating to employment, equal employment
opportunity, nondiscrimination, immigration, wages, hours, benefits, collective
bargaining, the payment of social security and similar taxes, occupational
safety and health and plant closing in connection with the SoftDent Business,
except for any noncompliance as would not have a SoftDent Material Adverse
Effect.

         3.22.    INTELLECTUAL PROPERTY RIGHTS OF CERAMCO.

                  A.       Definitions. As used in this Section 3.22 and in
addition to any other terms defined herein, the term "APPLICABLE SOFTDENT
INTELLECTUAL PROPERTY" shall mean any Intellectual Property that is owned by or
licensed to Company that relates solely to the SoftDent Business. SCHEDULE
3.22(A) sets forth a complete and accurate list of all Applicable SoftDent
Intellectual Property.

                  B.       Ownership. Company owns, or is licensed or otherwise
possesses legally and sufficient enforceable rights to use all of the
Applicable SoftDent Intellectual Property free and clear of all Encumbrances or
other rights or agreements that may interfere with Company's use thereof in its
business as currently conducted. Without limiting the foregoing: (i) Company is
the exclusive owner of all trademarks and trade names used in connection with
the operation or conduct of the SoftDent Business; (ii) Company owns
exclusively, or has a license or otherwise possesses legally and sufficient
enforceable rights to use, and has good title to, all copyrighted works that are
Applicable SoftDent Intellectual Property; and (iii) to the extent that any
Patents would be infringed by any Applicable SoftDent Intellectual Property
Company is the exclusive owner of, or has a license or otherwise possesses
legally and sufficient enforceable rights to use, such Patents. Ceramco has all
rights necessary to transfer to SoftDent LLC Ceramco's full right, title and
interest to the Applicable SoftDent Intellectual Property. The Applicable
SoftDent Intellectual Property constitutes all the Intellectual Property used in
and/or necessary to the conduct of the SoftDent Business as it currently is
conducted or is reasonably contemplated to be conducted. No proceeding is
pending or threatened against Company and/or its officers, employees or
consultants to the effect that any Intellectual Property Right of Company in and
to the Applicable SoftDent Intellectual Property is invalid or unenforceable by
Company. Company has not received notice from any third party that the operation
of the SoftDent Business infringes or misappropriates the Intellectual Property
of any third party or constitutes unfair competition or trade practices under
the laws of any jurisdiction.

                  C.       Registered Intellectual Property Rights. SCHEDULE
3.22(C) sets forth a complete and accurate list (by name, number, jurisdictions
and owner) all patents and patent applications; all registered and unregistered
Marks; all registered and, if material, unregistered copyrights and mask works;
and any other issuances, filings, certifications, registrations and applications
related to any other Intellectual Property Rights owned by Company regarding the
Applicable SoftDent Intellectual Property (collectively, "SOFTDENT REGISTERED
INTELLECTUAL PROPERTY"). SCHEDULE 3.22(C) lists any proceedings or actions
before any court, tribunal (including the United States Patent and Trademark
Office or equivalent authority anywhere in the world) related to any of
Applicable SoftDent Intellectual Property.

                  D.       License Received. Except for customary shrink-wrap
licenses for commercial software, all Licenses Received by Company that relate
solely to the SoftDent Business are listed in SCHEDULE 3.22(D) ("SOFTDENT
LICENSES RECEIVED"). All SoftDent Licenses Received are in full force and effect
and, except where such defaults will not have a SoftDent Material Adverse
Effect, Company is in compliance with the terms and requirements of such
Licenses and, to the Knowledge of Company, there is no

                                      -28-
<PAGE>   29

default by any party thereto. True and complete copies of the SoftDent Licenses
Received, and any amendments thereto, have been provided to PracticeWorks.
Following the SoftDent Asset Transfer, SoftDent LLC will be permitted to
exercise all of Ceramco's rights under the SoftDent Licenses Received to the
same extent Ceramco would have been able to had the Contemplated Transactions
not occurred and without the payment of any additional amounts or consideration
other than ongoing fees, royalties or payments which Ceramco would otherwise be
required to pay. Neither this Agreement nor the Contemplated Transactions,
including the assignment to SoftDent LLC of any contracts or agreements to which
Ceramco is a party, will result in (i) Company's granting to any third party any
right to or with respect to any Intellectual Property Right owned by, or
licensed to, Company, or (ii) Company's being bound by, or subject to, any
non-compete or other restriction on the operation or scope of the SoftDent
Business.

                  E.       License Granted. All Licenses Granted by Company in
the Applicable SoftDent Intellectual Property are listed in SCHEDULE 3.22(E)
("SOFTDENT LICENSES GRANTED"). All SoftDent Licenses Granted are in full force
and effect, and, except where such defaults will not have a SoftDent Material
Adverse Effect, Company is in compliance with the terms and requirements of such
SoftDent Licenses Granted and, to the Knowledge of Company, there is no default
by any party thereto. True and complete copies of the SoftDent Licenses Granted,
and any amendments thereto, have been provided or made available to
PracticeWorks. (i) Company has not granted any rights or interests in all source
code developed by it, and (ii) since Company developed the source code, it has
neither provided, licensed nor disclosed the source code of the products to any
person or entity that is not an employee of the Company, except with appropriate
protections as to the confidentiality thereof.

                  F.       Protective Agreements. Company has taken commercially
reasonable security measures (including, without limitation, entering into
appropriate work product, confidentiality and nondisclosure agreements with
officers, directors, employees and consultants of Company and other persons with
access to the Applicable SoftDent Intellectual Property, to protect the
confidentiality and ownership of all Applicable SoftDent Intellectual Property,
including all source code developed by Company. To Company's Knowledge, there
has not been any breach by any party to any such work product, confidentiality
or non-disclosure agreement. All persons who have contributed to or participated
in the conception and development of the Applicable SoftDent Intellectual
Property on behalf of Company have been full-time employees of Company hired to
prepare such works within the scope of employment or have signed appropriate
work product agreements assigning all Intellectual Property Rights in the
Applicable SoftDent Intellectual Property to Company.

                  G.       Absence of Claims. No claims have been asserted by
any person or entity to rights in any of the Applicable SoftDent Intellectual
Property. To the Knowledge of Company, the use of the Applicable SoftDent
Intellectual Property by Company and its licensees has not and does not infringe
on the Intellectual Property Rights of any third party. No claim has been
asserted by any person to the effect that any current or former employee of
Company has violated the provisions of any work product or nondisclosure
agreement with such person, or has disclosed any proprietary information of such
person to Company or any third party. The consummation of the Contemplated
Transactions will neither violate nor result in the breach, modification,
cancellation, termination or suspension of any contracts, licenses and
agreements related to the Applicable SoftDent Intellectual Property or cause the
forfeiture, modification or termination or give right of forfeiture,
modification or termination of any Applicable SoftDent Intellectual Property or
in any way impair the right of Company to use, sell, license or dispose of or to
bring any action for the infringement of any Applicable SoftDent Intellectual
Property or portion thereof.

                                      -29-
<PAGE>   30

                  H.       Adequacy of Software Documentation. The Software
contained in the Applicable SoftDent Intellectual Property includes the user
documentation and other materials that may be reasonably necessary to render
such materials understandable and usable by a trained computer operator. The
Software also includes any source code, programs (including compilers),
workbenches, tools, and higher level language used by Ceramco for the
development, maintenance and implementation of the Software.

                  I.       Year 2000 Compliance. Other than as set forth on
SCHEDULE 3.22(I) of the SoftDent Disclosure Schedule, Company has not received
any written notice or other written communication from any Person regarding any
actual, alleged, or Threatened claim that any of the Applicable SoftDent
Intellectual Property (i) will not record, store, process, calculate and present
calendar dates falling on and after (and if applicable, spans of time including)
January 1, 2000, or will not calculate information dependent on or relating to
such dates in the same manner, or with the same functionality, data integrity
and performance, as the products record, store, process, calculate and present
calendar dates on or before December 31, 1999, or calculate any information
dependent on or relating to such dates (collectively, "YEAR 2000 COMPLIANT"),
(ii) lost functionality with respect to the introduction of records containing
dates falling on or after January 1, 2000, or (iii) is interoperable with other
products that may reasonably deliver records to such Person's products or
receive records from such Person's products, or interact with such Person's
products. All of Company's Information Technology (as defined below) is Year
2000 Compliant, and has not caused an interruption in the ongoing operations of
the SoftDent Business on or after January 1, 2000. For purposes of the
foregoing, the term "INFORMATION TECHNOLOGY" shall mean and include all
software, hardware, firmware, telecommunications systems, network systems,
embedded systems and other systems, components and/or services (other than
general utility services including gas, electric, telephone and postal) that are
owned or used by Company relating to the SoftDent Business, or purchased by
Company from third-party suppliers.

         3.23     CERTAIN PAYMENTS. Since December 31, 1998, neither Company
nor, to Company's Knowledge, any director, officer or agent of Company or any
other Person associated with or acting for or on behalf of Company, has directly
or indirectly on behalf of Company, in connection with the SoftDent Business:

                  A.       Made any illegal contribution, gift, bribe, rebate,
payoff, influence payment, kickback, or other payment to any Person, private or
public, regardless of form, whether in money, property, or services (i) to
obtain favorable treatment in securing business; (ii) to pay for favorable
treatment for business secured; (iii) to obtain special concessions or for
special concessions already obtained, for or in respect of Company or any
Affiliate of Company or (iv) in violation of any Legal Requirement.

                  B.       Established or maintained any fund or asset that has
not been recorded in the books and records of Company, except for funds or
assets of a de minimis and non-material nature.

         3.24.    DISCLOSURE. To the Knowledge of Dentsply, Ceramco and SoftDent
LLC, no representation or warranty of Dentsply, Ceramco or SoftDent LLC in this
Agreement and no statement in the SoftDent Disclosure Schedule omits to state a
material fact necessary to make the statements herein or therein, in light of
the circumstances in which they were made, not misleading.

         3.25.    POTENTIAL CONFLICTS OF INTEREST. To the Knowledge of Company,
no officer, director or shareholder of Company:

                  A.       Owns or holds, directly or indirectly, any interests
in or is an officer, director, employee or consultant of, any business, entity
or organization which is (or is engaged in business as) a

                                     - 30 -
<PAGE>   31

competitor, supplier or customer of the SoftDent Business (except stock holdings
of less than one percent (1%) held for investment purposes in securities of
publicly held and traded companies);

                  B.       Owns or holds, directly or indirectly, in whole or in
part, any property or rights (tangible or intangible) that Company uses in the
conduct of the SoftDent Business; or

                  C.       Owns or holds (directly or indirectly) any debt or
other obligation of SoftDent LLC, is owed any distributions by SoftDent LLC, or
owes any amount to SoftDent LLC.

         3.26.    BROKERS OR FINDERS. Neither Dentsply, Ceramco nor SoftDent
LLC, nor any of their respective officers and agents, has incurred any
obligation or liability, contingent or otherwise, for brokerage or finders' fees
or agents' commissions or other similar payment in connection with this
Agreement, and Dentsply and Ceramco will indemnify and hold InfoCure,
PracticeWorks and SoftDent LLC harmless from any such payment alleged to be due
by or through Dentsply, Ceramco or SoftDent LLC as a result of the action of
Dentsply, Ceramco, SoftDent or any of their respective officers or agents.

         3.27     INVESTMENT INTENT. Ceramco is acquiring the PracticeWorks
Preferred Shares for its own account and not with a view to their distribution
within the meaning of Section 2(11) of the Securities Act. Ceramco acknowledges
that the PracticeWorks Preferred Shares have not been registered, and represents
and warrants that Ceramco is an "accredited investor" as such term is defined in
rule 501 of Regulation D under the Security Act.

         3.28.    DEALER CONTRACTS; NO DEFAULTS.

                  A.       SCHEDULE 3.28(A) of the SoftDent Disclosure Schedule
contains a complete and accurate list, and Ceramco has delivered to
PracticeWorks true and complete copies, of all contracts, agreements, licenses,
commitments or arrangements in effect with respect to the marketing,
distribution, licensing or promotion of the Applicable SoftDent Intellectual
Property by any independent salesperson, distributor, sublicensor, dealer,
value-added reseller, original equipment manufacturer or other remarketer or
sales organization.

                  B.       Each Contract identified or required to be identified
in SCHEDULE 3.28(A) of the SoftDent Disclosure Schedule (the "DEALER
AGREEMENTS") is in full force and effect and is valid and enforceable in
accordance with its terms, except that the enforceability of the Dealer
Agreements may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors' rights
generally and (ii) equitable principles which may limit the availability of
certain equitable remedies (such as specific performance).

                  C.       Company is, and at all times has been, in full
compliance with all material terms and requirements of each Dealer Agreement
under which such party has or had any obligation or liability or by which such
party or any of the assets owned or used by such party is or was bound, except
where such noncompliance would have a SoftDent Material Adverse Effect.

                  D.       To Company's Knowledge, or except as set forth in
Schedule 3.28(i), each material obligation or liability under any Dealer
Agreement under which Company has or had any rights is, and at all times has
been, enforced by Company and no action or inaction on the part of Company with
regard to the Dealers or the Dealer Agreements has acted as a waiver of any
rights of Company under the Dealer Agreements, except where such lack of
enforcement, action or inaction would have a SoftDent Material Adverse Effect.

                  E.       To Company's Knowledge, or except as set forth in
Schedule 3.28(i), no event has occurred or circumstance exists that (with or
without notice or lapse of time) is likely to contravene, conflict

                                     - 31 -
<PAGE>   32

with, or result in a violation or breach of, or give Company or other Person the
right to declare a default or exercise any remedy under, or to accelerate the
maturity or performance of, or to cancel, terminate, or modify, any Dealer
Agreement.

                  F.       SCHEDULE 3.28(F) of the SoftDent Disclosure Schedule
contains true and complete copies of all correspondence that relates to the
Dealer Agreements that may, in the reasonable judgment of PracticeWorks, be
deemed to be amendments thereof or notices of default thereunder. Other than as
disclosed on SCHEDULE 3.28(F) of the SoftDent Disclosure Schedule, neither
Dentsply, Ceramco nor SoftDent LLC has received from any Person, at any time,
any written notice or other written communication regarding any actual, alleged
or threatened violation or breach of, or default under, any Dealer Agreement by
Dentsply, Ceramco or SoftDent LLC.

                  G.       To its Knowledge, Company has not received any notice
or other communication (whether oral or written) from any Dealer regarding any
claim, actual, alleged, or Threatened, that products of Dentsply or Ceramco,
other than that sold by the SoftDent Business, should be offered or sold on an
exclusive or non-exclusive basis by the Dealers.

                  H.       There is no pending Proceeding against Company
regarding a claim of right by any Dealer to sell products of Company, other than
those relating to the SoftDent Business.

                  I.       SCHEDULE 3.28(I) of the SoftDent Disclosure Schedule
sets forth the actual sales quota of Dental Medical Association, all other
Dealers that have Dealer Agreements and the National Sales Quota, as defined in
the Dealer Agreements, currently in effect. SCHEDULE 3.28(I) also includes a
true and accurate list of all Dealers that have not met their sales quota for
then current term of their Dealer Agreement. To the Company's Knowledge, the
National Sales Quota will not be met for fiscal 2000.

                  J.       Company did not assume or accept assignment in whole
or in part of any rights or obligations under (i) that certain Dealer Agreement
(the "PSS/PSSI DEALER AGREEMENT"), dated as of January 1, 1993, between
Professional Software Solutions, Inc. ("PSS") and Professional Software
Solutions of Illinois, Inc. ("PSSI") in conjunction with Dentsply's and
Ceramco's acquisition of the assets of the SoftDent Business pursuant to that
certain Asset Purchase and Sale Agreement, dated March 17, 1998, by and between
Dentsply and SoftDent, Inc., or (ii) that certain Agreement, dated as of August
18, 1995, by and between PSS and PSSI whereby PSS agreed that in the event of
any sale of PSS, a merger, consolidation or other transfer of a substantial
portion of PSS' business to a third party it would include the PSS/PSSI Dealer
Agreement as a part of such transaction and cause the transferee to agree in
writing to PSSI that such Dealer Agreement would be valid binding and
enforceable against such transferee.

4.       REPRESENTATIONS AND WARRANTIES OF PRACTICEWORKS AND INFOCURE.

         As of the Effective Date hereof and as of the Closing Date,
PracticeWorks and InfoCure hereby represents and warrants, severally, but not
jointly, to each of Dentsply, Ceramco and SoftDent LLC as follows (subject to
such exceptions as are specifically disclosed in writing in the PracticeWorks
Disclosure Schedule attached hereto (which PracticeWorks Disclosure Schedule
shall be arranged in paragraphs corresponding to the numbered and lettered
paragraphs contained in this Article 4):

         4.1.     ORGANIZATION AND GOOD STANDING. PracticeWorks is a corporation
duly organized, validly existing, and in good standing under the laws of the
State of Delaware. InfoCure is a corporation duly organized, validly existing,
and in good standing under the laws of the State of Delaware. PracticeWorks has

                                     - 32 -
<PAGE>   33

previously furnished to Dentsply and Ceramco complete and correct copies of its
Certificate of Incorporation and Bylaws as currently in effect.

         4.2.     AUTHORITY; NO CONFLICT.

                  A.       This Agreement has been duly and validly authorized,
executed and delivered by PracticeWorks and InfoCure, and, assuming the due
authorization, execution and delivery hereof by Dentsply, Ceramco and SoftDent
LLC, constitutes the legal, valid, and binding obligation of PracticeWorks and
InfoCure, enforceable against PracticeWorks and InfoCure in accordance with its
terms.

                  B.       PracticeWorks and InfoCure have the absolute and
unrestricted right, power (corporate or otherwise), authority, and capacity to
execute and deliver this Agreement and to perform their obligations under this
Agreement. No additional corporate proceedings on the part of PracticeWorks or
InfoCure are necessary to authorize the execution and delivery of this
Agreement.

                  C.       Neither the execution and delivery of this Agreement
nor the consummation or performance of any of the Contemplated Transactions
will, directly or indirectly (with or without notice or lapse of time):

                           (i)      Contravene, conflict with, or result in a
violation of (1) any provision of the Organizational Documents of PracticeWorks
or InfoCure in effect on the date hereof or (2) any resolution adopted by the
board of directors or the stockholders of PracticeWorks or InfoCure in effect on
the date hereof;

                           (ii)     Contravene, conflict with, or result in a
violation of any Legal Requirement or any Order to which PracticeWorks or
InfoCure, or any of the PracticeWorks Assets, is subject;

                           (iii)    To the Knowledge of such parties
contravene,, conflict with, or result in a violation of any of the terms or
requirements of any Governmental Authorization held by PracticeWorks or
InfoCure;

                           (iv)     To the Knowledge of such parties
contravene,, conflict with, or result in a violation or breach of any provision
of, or give any Person the right to declare a default or exercise any remedy
under, or to accelerate the maturity or performance of, or to cancel, terminate,
or modify, any Contract; or

                           (v)      Result in the imposition or creation of any
material Encumbrance upon or with respect to any of the PracticeWorks Assets;

         except, in the cases of clauses (ii) through (v) for any such
contravention, conflict, violation or liability as would not have a Material
Adverse Effect.

                  D.       Neither PracticeWorks nor InfoCure is required to
give any notice to or obtain any Consent from any Person in connection with the
execution and delivery of this Agreement or the consummation or performance of
any of the Contemplated Transactions other than compliance with any applicable
requirements of the HSR Act.

         4.3.     CAPITALIZATION. The authorized equity securities of
PracticeWorks consist of 100,000,000 PracticeWorks Common Shares, of which
100 are issued and outstanding and are the only outstanding
shares of capital stock, equity interests or securities of PracticeWorks, and
(ii) 20,000,000

                                     - 33 -
<PAGE>   34

PracticeWorks Preferred Shares, of which none are issued and outstanding. All of
the outstanding equity securities of PracticeWorks have been, and when issued
the PracticeWorks Preferred Shares will be, duly and validly authorized and
validly issued and are and will be fully paid and nonassessable. Other than as
set forth on SCHEDULE 4.3 of the PracticeWorks Disclosure Schedule, there are no
outstanding options, warrants, rights, Contracts, arrangements or understandings
to subscribe for, purchase or issue any capital stock of PracticeWorks or any
security convertible into or exercisable or exchangeable for capital stock of
PracticeWorks.

         4.4.     INVESTMENT INTENT. PracticeWorks is acquiring the Membership
Interests for its own account and not with a view to their distribution within
the meaning of Section 2(11) of the Securities Act. PracticeWorks acknowledges
that the Shares have not been registered, and represents and warrants that
PracticeWorks is an "accredited investor" as such term is defined in rule 501 of
Regulation D under the Security Act.

         4.5.     CERTAIN PROCEEDINGS. There is no pending Proceeding that has
been commenced against PracticeWorks and that challenges, or may have the effect
of preventing, delaying, making illegal, or otherwise interfering with, any of
the Contemplated Transactions. To PracticeWorks' Knowledge, no such Proceeding
has been Threatened.

         4.6.     BROKERS OR FINDERS. Neither PracticeWorks nor InfoCure, nor
any of their respective officers and agents, has incurred any obligation or
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement, and
PracticeWorks and InfoCure will indemnify and hold Dentsply, Ceramco and
SoftDent LLC harmless from any such payment alleged to be due by or through
PracticeWorks or InfoCure as a result of the action of PracticeWorks, InfoCure,
or any of their respective officers or agents.

         4.7.     PRACTICEWORKS INFORMATION. PracticeWorks has delivered to
Ceramco copies of the Form 10-12B, filed with the SEC on or about November 12,
2000, and all amendments thereto (the "FORM 10"). All of the information
contained in the Form 10 is true, correct and complete in all material respects
as of the date hereof and as of the respective dates of the information set
forth therein, and the information contained in the Form 10, as of the date
hereof and as of its respective dates, does not contain any untrue statement of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances under which such statements were made. Notwithstanding the
foregoing, assumptions and projections included in the Form 10 shall not be
deemed to be statements of fact and PracticeWorks makes no representations with
respect thereto, other than that such assumptions and projections were made or
projected by PracticeWorks in good faith based on the information known to
PracticeWorks as of the Effective Date and on the date of the Form 10.

         4.8.     ACCOUNTS RECEIVABLE. All accounts receivable of PracticeWorks
that are reflected in the From 10 and all accounts receivable of InfoCure
relating to the PracticeWorks Business that will be reflected on the accounting
records of PracticeWorks as of the Closing Date (collectively, the
"PRACTICEWORKS ACCOUNTS RECEIVABLE") represent or will represent, in all
material respects, valid obligations arising from sales actually made or
services actually performed in the Ordinary Course of Business. Unless paid
prior to the Closing Date, the PracticeWorks Accounts Receivable are or will be
as of the Closing Date collectible, in all material respects, net of the
respective reserves shown in the Form 10.

         4.9.     CONTRACTS; NO DEFAULTS.

                                     - 34 -
<PAGE>   35

                  A.       To PracticeWorks' Knowledge, each Contract identified
or required to be identified in the Form 10 ("APPLICABLE PRACTICEWORKS
CONTRACTS") is in full force and effect and is valid and enforceable in
accordance with its terms, except to the extent that enforceability thereof may
be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws affecting creditors' rights generally and (ii) equitable
principles which may limit the availability of certain equitable remedies (such
as specific performance).

                  B.       (i)      InfoCure, prior to the PracticeWorks Asset
Transfer, and PracticeWorks, after the PracticeWorks Asset Transfer, is in
compliance with the terms and requirements of each Applicable PracticeWorks
Contract under which InfoCure, prior to the PracticeWorks Asset Transfer, and
PracticeWorks, after the PracticeWorks Asset Transfer, has any obligation or
liability or by which InfoCure, prior to the PracticeWorks Asset Transfer, and
PracticeWorks, after the PracticeWorks Asset Transfer, or any of the
PracticeWorks Assets is bound, except for any failure to comply as would not
have a PracticeWorks Material Adverse Effect;

                           (ii)     To PracticeWorks' Knowledge, no event has
occurred or circumstance exists that (with or without notice or lapse of time)
is likely to contravene, conflict with, or result in a violation or breach of,
or give PracticeWorks or any other Person the right to declare a default or
exercise any remedy under, or to accelerate the maturity or performance of, or
to cancel, terminate, or modify, any Applicable PracticeWorks Contract, except
for any of the foregoing as would not have a PracticeWorks Material Adverse
Effect; and

                           (iii)    InfoCure, prior to the PracticeWorks Asset
Transfer, and PracticeWorks, after the PracticeWorks Asset Transfer, has not
given to or received from any other Person, at any time since December 31, 1998,
any written notice or other written communication regarding any material actual,
alleged or threatened violation or breach of, or default under, any Applicable
PracticeWorks Contract.

         4.10.    INTELLECTUAL PROPERTY RIGHTS OF PRACTICEWORKS.

                  A.       Definitions. As used in this Section 4.10, the term
"APPLICABLE PRACTICEWORKS INTELLECTUAL PROPERTY" shall mean any Intellectual
Property that is owned by or licensed to InfoCure that relates solely to the
PracticeWorks Business.

                  B.       Ownership. InfoCure, prior to the PracticeWorks Asset
Transfer, and PracticeWorks, after the PracticeWorks Asset Transfer, owns, or is
licensed or otherwise possesses legally and sufficient enforceable rights to use
all of the Applicable PracticeWorks Intellectual Property. InfoCure has all
rights necessary to transfer to PracticeWorks InfoCure's full right, title and
interest to the Applicable PracticeWorks Intellectual Property. The Applicable
PracticeWorks Intellectual Property constitutes all the Intellectual Property
used in and/or necessary to the conduct of the PracticeWorks Business as it
currently is conducted or is reasonably contemplated to be conducted. No
proceeding is pending or threatened against InfoCure, prior to the PracticeWorks
Asset Transfer, and PracticeWorks, after the PracticeWorks Asset Transfer, to
the effect that any Intellectual Property Right of InfoCure, prior to the
PracticeWorks Asset Transfer, and PracticeWorks, after the PracticeWorks Asset
Transfer, in and to the Applicable PracticeWorks Intellectual Property is
invalid or unenforceable by InfoCure, prior to the PracticeWorks Asset Transfer,
and PracticeWorks, after the PracticeWorks Asset Transfer. InfoCure, prior to
the PracticeWorks Asset Transfer, and PracticeWorks, after the PracticeWorks
Asset Transfer, has not received notice from any third party that the operation
of the PracticeWorks Business infringes or misappropriates the Intellectual
Property Rights of any third party.

                                     - 35 -
<PAGE>   36

                  C.       License Received. All Licenses Received by InfoCure,
prior to the PracticeWorks Asset Transfer, and PracticeWorks, after the
PracticeWorks Asset Transfer, that relate solely to the PracticeWorks Business
("PRACTICEWORKS LICENSES RECEIVED") are in full force and effect, and, except
where such defaults will not have a PracticeWorks Material Adverse Effect,
InfoCure, prior to the PracticeWorks Asset Transfer, and PracticeWorks, after
the PracticeWorks Asset Transfer, is in compliance with the terms and
requirements of such Licenses and, to the Knowledge of PracticeWorks, there is
no default by any party thereto. Following the Closing Date, PracticeWorks will
be permitted to exercise all of InfoCure's rights under the PracticeWorks
Licenses Received to the same extent InfoCure would have been able to had the
Contemplated Transactions not occurred and without the payment of any additional
amounts or consideration other than ongoing fees, royalties or payments which
InfoCure would otherwise be required to pay.

                  D.       License Granted. All Licenses Granted by InfoCure,
prior to the PracticeWorks Asset Transfer, and PracticeWorks, after the
PracticeWorks Asset Transfer, in the Applicable PracticeWorks Intellectual
Property ("PRACTICEWORKS LICENSES GRANTED") are in full force and effect, and,
except where such defaults will not have a PracticeWorks Material Adverse
Effect, InfoCure, prior to the PracticeWorks Asset Transfer, and PracticeWorks,
after the PracticeWorks Asset Transfer, is in compliance with the terms and
requirements of such PracticeWorks Licenses Granted and, to the Knowledge of
PracticeWorks, there is no default by any party thereto.

                  E.       Protective Agreements. InfoCure, prior to the
PracticeWorks Asset Transfer, and PracticeWorks, after the PracticeWorks Asset
Transfer, has taken commercially reasonable security measures (including,
without limitation, entering into appropriate work product, confidentiality and
nondisclosure agreements with officers, directors, employees and consultants of
InfoCure, prior to the PracticeWorks Asset Transfer, and PracticeWorks, after
the PracticeWorks Asset Transfer, and other persons with access to the
Applicable PracticeWorks Intellectual Property), to protect the confidentiality
and ownership of all Applicable PracticeWorks Intellectual Property, including
all source code developed by InfoCure, prior to the PracticeWorks Asset
Transfer, and PracticeWorks, after the PracticeWorks Asset Transfer. To
PracticeWorks' Knowledge, there has not been any breach by any party to any such
work product, confidentiality or non-disclosure agreement. All persons who have
contributed to or participated in the conception and development of the
Applicable PracticeWorks Intellectual Property on behalf of InfoCure, prior to
the PracticeWorks Asset Transfer, or PracticeWorks, after the PracticeWorks
Asset Transfer, have been full-time employees of InfoCure, prior to the
PracticeWorks Asset Transfer, or PracticeWorks, after the PracticeWorks Asset
Transfer, hired to prepare such works within the scope of employment or have
signed appropriate work product agreements assigning all Intellectual Property
Rights in the Applicable PracticeWorks Intellectual Property to InfoCure.

                  F.       Absence of Claims. No claims have been asserted by
any person or entity to rights in any of the Applicable PracticeWorks
Intellectual Property. To the Knowledge of PracticeWorks, the use of the
Applicable PracticeWorks Intellectual Property by InfoCure, prior to the
PracticeWorks Asset Transfer, and PracticeWorks, after the PracticeWorks Asset
Transfer, and its licensees has not and does not infringe on the Intellectual
Property Rights of any third party. No claim has been asserted by any person to
the effect that any current or former employee of InfoCure, prior to the
PracticeWorks Asset Transfer, or PracticeWorks, after the PracticeWorks Asset
Transfer, has violated the provisions of any work product or nondisclosure
agreement with such person, or has disclosed any proprietary information of such
person to InfoCure, prior to the PracticeWorks Asset Transfer, or PracticeWorks,
after the PracticeWorks Asset Transfer, or any third party.

                                     - 36 -
<PAGE>   37

                  G.       Adequacy of Software Documentation. The Software
contained in the Applicable PracticeWorks Intellectual Property includes the
user documentation and other materials that may be reasonably necessary to
render such materials understandable and usable by a trained computer operator.
The Software also includes any source code, programs (including compilers),
workbenches, tools, and higher level language used by InfoCure, prior to the
PracticeWorks Asset Transfer, and PracticeWorks, after the PracticeWorks Asset
Transfer, for the development, maintenance and implementation of the Software.

         4.11.    FINANCIAL STATEMENTS. Each set of consolidated financial
statements (including, in each case, any related notes thereto) contained in the
Form 10 was prepared in accordance with GAAP applied on a consistent basis
throughout the periods involved (except as may be indicated in the notes thereto
or, in the case of unaudited statements, do not contain footnotes as permitted
by the Securities Act) and each is true and correct as of the date prepared, and
fairly presents the consolidated financial position of the PracticeWorks
Business, PracticeWorks and their respective subsidiaries as the respective
dates thereof and the consolidated results of its operations and cash flows for
the periods indicated, except that the unaudited interim financial statements
were or are subject to normal adjustments which were not or are not expected to
be material in amount.

5.       ADDITIONAL COVENANTS

         5.1.     SOFTDENT CONDUCT OF BUSINESS PRIOR TO THE CLOSING. From the
Effective Date through the Closing Date, Dentsply, Ceramco and SoftDent LLC
covenant and agree that Company shall conduct the SoftDent Business in the
ordinary course consistent with past practice and shall use its best efforts to
preserve intact (as it relates to the SoftDent Business) its business
organizations and relationships with third parties and to keep available the
services of its present officers and employees. Without limiting the generality
of the foregoing, from the Effective Date until the Closing Date, Company will
not (i) issue any equity securities of SoftDent LLC or declare or make any
payment on account of the purchase, redemption, retirement or acquisition of any
Membership Interests, (ii) make any distributions to the SoftDent LLC members,
(iii) incur any indebtedness from borrowed money for the SoftDent Business
except in the Ordinary Course of Business consistent with past practice, (iv)
subject the SoftDent Assets to any additional Encumbrances, (v) adopt or propose
any change in the Organizational Documents of SoftDent LLC, other than as
required for the consummation of the Contemplated Transactions, (vi) merge or
consolidate the SoftDent Business with any other Person, acquire for the
SoftDent Business a material amount of assets of any other Person or make any
additional capital expenditure as it relates to the SoftDent Business or acquire
any additional fixed assets for the SoftDent Business, (vii) sell, lease,
license or otherwise dispose of any material assets or property of the SoftDent
Business except (1) pursuant to existing contracts or commitments of the
SoftDent Business and (2) in the ordinary course consistent with past practice;
provided, however, that in no event will Company sell, lease, license or
otherwise dispose of any SoftDent Asset or Assets having a value greater than
$50,000 singly or $100,000 in the aggregate without the prior written consent of
PracticeWorks; and provided further, that nothing in this subparagraph (vii)
shall prevent Company, as it relates to the SoftDent Business, from selling
inventory or licensing the SoftDent Business software to Dealers and customers
in the Ordinary Course of Business consistent with past practice, (viii) renew
(whether by exercise of option or otherwise) or amend in any respect any
Contract or any lease identified in the SoftDent Disclosure Schedule without the
prior written consent of PracticeWorks, (xi) enter into any new Contract or
Dealer Agreement for the SoftDent Business without prior written consent of
PracticeWorks, (x) increase compensation or benefits to any officer, director or
employee of Company solely engaged in the SoftDent Business, or pay any bonus,
severance or termination pay to such officer, director or employee of Company
solely engaged in the SoftDent Business, or (xi) permit Company to agree or
commit to do any of the foregoing, as related to the SoftDent Business.

                                     - 37 -
<PAGE>   38

 5.2.     PRACTICEWORKS CONDUCT OF BUSINESS PRIOR TO THE CLOSING. From the
Effective Date through the Closing Date, InfoCure and PracticeWorks covenant and
agree that each shall conduct the PracticeWorks Business in the ordinary course
consistent with past practice and shall use its best efforts to preserve intact
(as it relates to the PracticeWorks Business) its business organizations and
relationships with third parties and to keep available the services of its
present officers and employees. Without limiting the generality of the
foregoing, from the Effective Date until the Closing Date, PracticeWorks will
not (and, as to clauses (iii), (iv), (vi) and (vii), InfoCure will not) (i)
other than as necessary to consummate the Contemplated Transactions, issue any
equity securities or declare or make any payment on account of the purchase,
redemption, retirement or acquisition of any shares of capital stock, (ii) other
than as necessary to consummate the Contemplated Transactions, declare any
dividends on its capital stock or make any distributions to its shareholders,
(iii) incur any indebtedness from borrowed money for the PracticeWorks Business
except in the Ordinary Course of Business consistent with past practice, (iv)
subject the PracticeWorks Assets to any additional Encumbrances, (v) adopt or
propose any change in the PracticeWorks Organizational Documents, other than as
required for the consummation of the Contemplated Transactions, (vi) other than
as necessary to consummate the Contemplated Transactions, merge or consolidate
the PracticeWorks Business with any other Person, acquire for the PracticeWorks
Business a material amount of assets of any other Person or make any additional
capital expenditure as it relates to the PracticeWorks Business or acquire any
additional fixed assets for the PracticeWorks Business, (vii) other than as
necessary to consummate the Contemplated Transactions, sell, lease, license or
otherwise dispose of any material assets or property of the PracticeWorks
Business except (1) pursuant to existing contracts or commitments of the
PracticeWorks Business and (2) in the ordinary course consistent with past
practice; provided, however, that, other than as necessary to consummate the
Contemplated Transactions, in no event will InfoCure or PracticeWorks sell,
lease, license or otherwise dispose of any PracticeWorks Asset or Assets having
a value greater than $50,000 singly or $100,000 in the aggregate; and provided
further, that nothing in this subparagraph (vii) shall prevent InfoCure or
PracticeWorks from selling inventory or licensing the PracticeWorks Business
software in the Ordinary Course of Business consistent with past practice,
(viii) other than as necessary to consummate the Contemplated Transactions,
renew (whether by exercise of option or otherwise) or amend in any respect any
Contract or any lease identified in the PracticeWorks Disclosure Schedule
without the prior written consent of Ceramco, (xi) materially increase
compensation or benefits to any officer, director or employee of PracticeWorks,
or pay any bonus, severance or termination pay to such officer, director or
employee of PracticeWorks, or (xi) permit PracticeWorks to agree or commit to do
any of the foregoing.

         5.3.     PRACTICEWORKS ACCESS TO INFORMATION. From the date hereof
through the Closing Date, Dentsply, Ceramco and SoftDent LLC agree to (i)
provide PracticeWorks and its independent accountants, legal counsel,
environmental consultants and other authorized representatives with full access
to Company's properties, facilities, books, records, financial operating data,
contracts and other materials of Company related to the SoftDent Business at
reasonable times for the purpose of PracticeWorks' conducting a complete and
thorough investigation, analysis and review of Company relating to the SoftDent
Business, (ii) furnish to PracticeWorks, its independent accountants, legal
counsel, environmental consultants and other authorized representatives such
financial and operating data and other information relating to SoftDent Business
as such Persons may reasonably request, and (iii) instruct the employees,
counsel and financial and other advisors of SoftDent Business to cooperate with
PracticeWorks in its investigation of Company related to the SoftDent Business;
provided, however, that no investigation pursuant to this Section shall limit or
otherwise affect any representation or warranty given by Dentsply, Ceramco and
SoftDent LLC hereunder.

         5.4.     DENTSPLY ACCESS TO INFORMATION. From the date hereof through
the Closing Date, PracticeWorks agrees to (i) provide Company and its
independent accountants, legal counsel, environmental consultants and other
authorized representatives with full access to PracticeWorks' properties,
facilities, books, records, financial operating data, contracts and other
materials of PracticeWorks related to the PracticeWorks Business at reasonable
times for the purpose of Company's conducting a complete and

                                     - 38 -
<PAGE>   39

thorough investigation, analysis and review of PracticeWorks relating to the
PracticeWorks Business, (ii) furnish to Company, its independent accountants,
legal counsel, environmental consultants and other authorized representatives
such financial and operating data and other information relating to
PracticeWorks Business as such Persons may reasonably request, and (iii)
instruct the employees, counsel and financial and other advisors of
PracticeWorks Business to cooperate with Company in its investigation of
PracticeWorks related to the PracticeWorks Business; provided, however, that no
investigation pursuant to this Section shall limit or otherwise affect any
representation or warranty given by PracticeWorks hereunder.

         5.5.     CONSENTS; SATISFACTION OF CLOSING CONDITIONS. Each party
hereto will obtain, at its sole cost and expense, all consents from third
parties necessary or advisable in order to permit the consummation of the
Contemplated Transactions without impairing the validity or effectiveness of any
lease or other contract, related to the SoftDent Business or the PracticeWorks
Business, as the case may be, to which a party hereto is a party, and to obtain
the satisfaction on or before the Closing Date of the conditions specified in
Section 6.3 or Section 7.3, as the case may be.

         5.6.     NOTICES OF CERTAIN EVENTS. The Parties shall promptly notify
each other of:

                  A.       any notice or other communication from any Person
alleging that the consent of such Person is or may be required in connection
with the Contemplated Transactions;

                  B.       any notice or other communication (other than any
routine or incidental notice or communication) from any governmental or
regulatory agency or authority in connection with the Contemplated Transactions;

                  C.       any actions, suits, claims, investigations or
proceedings commenced or, to the Knowledge of the parties hereto, threatened
against, relating to or involving or otherwise affecting the SoftDent Business
or the PracticeWorks Business which, if pending on the date of this Agreement,
would have been required to have been disclosed pursuant to this Agreement, or
which relate to the consummation of the Contemplated Transactions; and

                  D.       any fact or circumstance which would make any
representation or warranty untrue or inaccurate in any material respect as of
the Closing Date.

         5.7.     HART-SCOTT-RODINO FILING. PracticeWorks, Dentsply, Ceramco and
SoftDent LLC (as applicable) shall make appropriate filings of the Notification
and Report Form pursuant to the HSR Act with respect to the Contemplated
Transactions promptly upon the execution by the parties of this Agreement, and
in no event later than within ten business days following the date hereof.
PracticeWorks shall pay all of the filing costs and expenses of an "acquiring
person" (as such term is defined in the HSR Act).

         5.8.     ASSUMPTION OF LEASE OBLIGATIONS. PracticeWorks shall perform
or assure the performance of all obligations of the lessee under all assigned
and assumed SoftDent Leases, and PracticeWorks shall assume all guarantees of
such SoftDent Leases as to which Dentsply is currently obligated. To the extent
Dentsply remains a guarantor of any such SoftDent Lease, PracticeWorks shall
indemnify Dentsply for all damages, costs and expenses Dentsply incurs as a
result of any acts taken against Dentsply pursuant to such guarantees.

6.       CONDITIONS PRECEDENT TO PRACTICEWORKS' OBLIGATION TO CLOSE.

                                     - 39 -
<PAGE>   40

         PracticeWorks' obligation to issue the Preferred Shares to Ceramco and
to take the other actions required to be taken by PracticeWorks at the Closing
is subject to the satisfaction, at or prior to the Closing, of each of the
following conditions (any of which may be waived by PracticeWorks, in whole or
in part):

         6.1.     ACCURACY OF REPRESENTATIONS. All of Dentsply's, Ceramco's and
SoftDent LLC's representations and warranties in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), must have been accurate in all material respects on the date this
Agreement was executed, and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date except to the extent such
representations and warranties speak as of an earlier date.

         6.2.     CERAMCO'S AND SOFTDENT LLC'S PERFORMANCE.

                  A.       All of the covenants and obligations that Ceramco or
SoftDent LLC is required to perform or to comply with pursuant to this Agreement
at or prior to the Closing (considered collectively), and each of these
covenants and obligations (considered individually), must have been duly
performed and complied with in all material respects.

                  B.       Each document required to be delivered pursuant to
Section 2.5 must have been delivered.

         6.3.     CONSENTS. Each of the Consents identified in SCHEDULE 3.2 of
the SoftDent Disclosure Schedule must, except as otherwise noted on SCHEDULE
3.2, have been obtained and must be in full force and effect.

         6.4.     HSR ACT. Any filing and waiting period (and any extension
thereof) requirements under the HSR Act applicable to the consummation of the
transactions contemplated hereby shall have expired or been terminated and no
order, ruling or decision shall have been issued under the HSR Act prohibiting
the consummation of the Contemplated Transactions.

         6.5.     ADDITIONAL DOCUMENTS. Ceramco and SoftDent LLC shall deliver
such other documents as PracticeWorks may reasonably request for the purpose of
(i) evidencing the accuracy of any of Ceramco's and SoftDent LLC's
representations and warranties; (ii) evidencing the performance by Ceramco or
SoftDent LLC of, or the compliance by Ceramco or SoftDent LLC with, any covenant
or obligation required to be performed or complied with by Ceramco or SoftDent
LLC as the case may be; (iii) evidencing the satisfaction of any condition
referred to in this Section 5 or (iv) otherwise facilitating the consummation or
performance of any of the Contemplated Transactions.

         6.6.     NO PROCEEDINGS. There must not have been commenced or
Threatened against Dentsply or PracticeWorks, or against any Person affiliated
with Dentsply or PracticeWorks, any Proceeding (i) involving any challenge to,
or seeking Damages or other relief in connection with, any of the Contemplated
Transactions or (ii) that is likely to have the effect of preventing, delaying,
making illegal, or otherwise interfering with any of the Contemplated
Transactions.

         6.7.     NO CLAIM REGARDING STOCK OWNERSHIP OR SALE PROCEEDS. There
must not have been made or Threatened by any Person any claim asserting that
such Person is the holder or the beneficial owner of, or has the right to
acquire or to obtain beneficial ownership of, any membership interest in, or any
other voting, equity, or ownership interest in, SoftDent LLC.

                                     - 40 -
<PAGE>   41

         6.8.     RESTRICTIVE COVENANT AGREEMENTS. Each of Dentsply and Ceramco
shall have entered into Restrictive Covenant Agreements substantially in the
form attached hereto as EXHIBIT D and such agreements shall be in full force and
effect.

         6.9.     EMPLOYMENT AGREEMENTS. The persons identified by PracticeWorks
on or prior to January 1, 2001, shall have entered into Employment Agreements in
a form agreeable to PracticeWorks and such agreements shall be in full force and
effect.

         6.10.    SPIN-OFF. The Form 10 shall be declared effective by the SEC
and InfoCure shall have completed all actions necessary to consummate the
distribution of the PracticeWorks Common Shares to the stockholders of InfoCure
as more fully described in the Form 10.

7.       CONDITIONS PRECEDENT TO CERAMCO'S OBLIGATION TO CLOSE.

         Ceramco's obligation to contribute the Membership Interests and to take
the other actions required to be taken by Ceramco or SoftDent LLC at the Closing
is subject to the satisfaction, at or prior to the Closing, of each of the
following conditions (any of which may be waived by Ceramco, in whole or in
part):

         7.1.     ACCURACY OF REPRESENTATIONS. All of PracticeWorks' and
InfoCure's representations and warranties in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), must have been accurate in all material respects on the date this
Agreement was executed and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date except to the extent such
representations and warranties speak as of an earlier date.

         7.2.     PRACTICEWORKS' PERFORMANCE.

                  A.       All of the covenants and obligations that
PracticeWorks and InfoCure are each required to perform or to comply with
pursuant to this Agreement at or prior to the Closing (considered collectively),
and each of these covenants and obligations (considered individually), must have
been performed and complied with in all material respects.

                  B.       PracticeWorks and InfoCure must have delivered each
of the documents required to be delivered by PracticeWorks or InfoCure pursuant
to Section 2.4.

         7.3.     CONSENTS. Each of the Consents identified in SCHEDULE 3.2 of
the SoftDent Disclosure Schedule, except as otherwise noted on SCHEDULE 3.2,
must have been obtained and must be in full force and effect.

         7.4.     HSR ACT. Any filing and waiting period (and any extension
thereof) requirements under the HSR Act applicable to the consummation of the
transactions contemplated hereby shall have expired or been terminated and no
order, ruling or decision shall have been issued under the HSR Act prohibiting
the consummation of the Contemplated Transactions or materially interfering with
or imposing any conditions on PracticeWorks' ownership of, or ability to
supervise the operations of, SoftDent LLC.

         7.5.     ADDITIONAL DOCUMENTS. PracticeWorks and InfoCure shall have
delivered to Ceramco and such other documents as Ceramco may reasonably request
for the purpose of (i) evidencing the accuracy of any representation or warranty
of PracticeWorks or InfoCure; (ii) evidencing the performance by PracticeWorks
and InfoCure of, or the compliance by PracticeWorks and InfoCure with, any
covenant or obligation required to be performed or complied with by
PracticeWorks or InfoCure; (iii) evidencing the

                                     - 41 -
<PAGE>   42

satisfaction of any condition referred to in this Section 6 or (iv) otherwise
facilitating the consummation of any of the Contemplated Transactions.

         7.6.     NO PROCEEDING. There must not have been commenced or
Threatened against Dentsply or PracticeWorks, or against any Person affiliated
with Dentsply or PracticeWorks, any Proceeding (i) involving any challenge to,
or seeking Damages or other relief in connection with, any of the Contemplated
Transactions or (ii) that is likely to have the effect of preventing, delaying,
making illegal, or otherwise interfering with any of the Contemplated
Transactions.

         7.7.     SPIN-OFF. The Form 10 shall be declared effective by the SEC
and InfoCure shall have completed all actions necessary to consummate the
distribution of the PracticeWorks Common Shares to the stockholders of InfoCure
as more fully described in the Form 10.

8.       TERMINATION.

         8.1.     TERMINATION EVENTS. This Agreement may, by notice given prior
to or at the Closing, be terminated:

                  A.       By either PracticeWorks or Ceramco if a material
Breach of any provision of this Agreement has been committed by the other party
and such Breach has not been waived and cannot be or has not been cured within
20 days after the giving of written notice by the non-breaching party to the
breaching party;

                  B.       (i)      By PracticeWorks if any of the conditions in
Section 6 have not been satisfied as of the Closing Date or if satisfaction of
such a condition is or becomes impossible (other than through the failure of
InfoCure or PracticeWorks to comply with its obligations under this Agreement)
and PracticeWorks has not waived such condition on or before the Closing Date;

                           (ii)     By Ceramco, if any of the conditions in
Section 7 has not been satisfied as of the Closing Date or if satisfaction of
such a condition is or becomes impossible (other than through the failure of
Dentsply, Ceramco or SoftDent LLC to comply with its obligations under this
Agreement) and Ceramco has not waived such condition on or before the Closing
Date; or

                  C.       By mutual consent of PracticeWorks and Ceramco; or

                  D.       By either PracticeWorks or Ceramco if the Closing has
not occurred (other than through the failure of any party seeking to terminate
this Agreement to comply fully with its obligations under this Agreement) on or
before March 31, 2001, or such later date as the parties may agree upon.

         8.2.     EFFECT OF TERMINATION. Each party's right of termination under
Section 8.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination will not be an election
of remedies. If this Agreement is terminated pursuant to Section 8.1, all
further obligations of the parties under this Agreement will terminate, except
that the obligations in Sections 10.6 and 10.8 will survive; provided, however,
that if this Agreement is terminated by a party because of the Breach of the
Agreement by the other party or because one or more of the conditions to the
terminating party's obligations under this Agreement is not satisfied as a
result of the other party's failure to comply with its obligations under this
Agreement, the terminating party's right to pursue all legal remedies will
survive such termination unimpaired.

                                     - 42 -
<PAGE>   43

9.       INDEMNIFICATION; REMEDIES.

         9.1.     AGREEMENTS BY DENTSPLY AND CERAMCO TO INDEMNIFY. Except as
provided below, Dentsply and Ceramco, jointly and severally (the "SOFTDENT
INDEMNIFYING PARTIES"), agree that they will indemnify and hold PracticeWorks,
InfoCure and SoftDent LLC (the "SOFTDENT INDEMNIFIED PARTIES") harmless in
respect of the aggregate of all SoftDent Indemnifiable Damages (as defined
below).

                  A.       For this purpose, "SOFTDENT INDEMNIFIABLE DAMAGES"
means the aggregate of all damages incurred or suffered by SoftDent Indemnified
Parties resulting from:

                           (i)      Any inaccurate representation or warranty
made by Dentsply, Ceramco or SoftDent LLC in or pursuant to this Agreement or in
the SoftDent Disclosure Schedule or certificates delivered in connection
herewith; or

                           (ii)     Any default in the performance of any of the
covenants or agreements made by Dentsply, Ceramco or SoftDent LLC in this
Agreement;

                           (iii)    Any claim by any person for brokerage or
finder's fees or commissions or similar payments based upon any agreement or
understanding alleged to have been made by any such person with Dentsply,
Ceramco or SoftDent LLC (or any person acting on their behalf) in connection
with any of the Contemplated Transactions; or

                           (iv)     Any claim, transaction cost or other expense
(including attorneys fees) reasonably incurred by any Person that arises out of
or is incurred in effectuating any of the following: (a) actions taken prior to
Closing by, or failures to act prior to Closing by, any such SoftDent
Indemnifying Parties under or related to the Dealer Agreements, (b) the
assignment to SoftDent LLC of the Dealer Agreements, (c) termination of the
Dealer Agreements by reasonable action whether before or after Closing, or (d)
the attempted termination by SoftDent LLC of the Dealer Agreements after Closing
pursuant to the reasonable procedures described in that certain letter from
SoftDent LLC to PracticeWorks, dated of even date herewith (any such claim, a
"DEALER AGREEMENT CLAIM").

                  B.       Tax Indemnification and Other Tax Matters.

                           (i)      Notwithstanding anything to the contrary in
this Agreement, SoftDent Indemnifying Parties shall, jointly and severally,
indemnify, save and hold harmless the SoftDent Indemnified Parties from and
against any and all damages, losses, costs, claims, expenses and liabilities
including without limitation, interest, penalties, reasonable attorneys' fees
and expenses, incurred in connection with, arising out of, resulting from or
relating to (i) any fact inconsistent with, or any untruth or inaccuracy of, any
representation or warranty of Dentsply or Ceramco contained in Section 3.12,
(ii) any and all Taxes attributable to Ceramco and/or the SoftDent Business (A)
with respect to all periods ending on or prior to the Closing Date and (B) with
respect to any period beginning before the Closing and ending after the Closing
Date, but only with respect to the portion of such period up to and including
the Closing Date (such portion shall be referred to herein as the "PRE-CLOSING
TAX PERIOD" and the portion of such period after the Closing Date shall be
referred to herein as the "POST-CLOSING TAX PERIOD").

                           (ii)     For purposes of this Section 9.1.B, Tax or
Taxes shall include the amount of Taxes which would have been paid but for the
application of any credit or net operating or capital loss deduction
attributable to periods or portions of a period beginning after the Closing
Date.

                                     - 43 -
<PAGE>   44

                           (iii)    Any Taxes for a period including a
Pre-Closing Tax Period and a Post-Closing Tax Period shall be apportioned
between such Pre-Closing Tax Period and such Post-Closing Tax Period, based, in
the case of real and personal property Taxes, on a per diem basis and, in the
case of other Taxes, on the basis of a closing of the books as of the Closing
Date.

                           (iv)     Without limiting the foregoing provisions of
this Section 9.1.B, the definition of "SoftDent Indemnifiable Damages" above
shall include any claim or right to indemnification pursuant to this Section
9.1.B

                  C.       Indemnification Limitations. The obligation of
SoftDent Indemnifying Parties to indemnify the SoftDent Indemnified Parties
under this Agreement shall be subject to each of the following:

                           (i)      Each of the representations and warranties
made by Dentsply, Ceramco and SoftDent LLC in this Agreement, the SoftDent
Disclosure Schedule, any supplement to the SoftDent Disclosure Schedule, and any
other certificate or document delivered pursuant to this Agreement, shall
survive for a period of two (2) years following the Closing; provided, however,
(A) that the representations and warranties made by Dentsply, Ceramco and
SoftDent LLC to the extent they relate to Ceramco's title to the Membership
Interests and the approval of this Agreement and the Contemplated Transactions
by Dentsply and Ceramco shall survive forever; (B) that the representations and
warranties made by Ceramco in Section 3.12 hereof ("Tax Matters") shall in each
case survive until the six (6) month anniversary of the later of (1) the date on
which the applicable period of limitation on assessment or refund of tax has
expired or (2) the date on which the applicable taxable year (or portion
thereof) has closed; (C) that the representations and warranties made by Ceramco
in Sections 3.19 ("Environmental Matters") and 3.14 ("Employee Benefits
Matters") shall survive until the fifth anniversary of the Closing Date; and (D)
that the representations and warranties made by Dentsply, Ceramco and SoftDent
LLC in Section 3.28 ("Dealer Contracts") shall in each case survive until five
years from the Closing Date.

                           (ii)     No claim for the recovery of SoftDent
Indemnifiable Damages may be asserted by any SoftDent Indemnified Party against
SoftDent Indemnifying Parties or their successors in interest after such
representations and warranties shall be thus extinguished; provided, however,
that claims first asserted in writing within the applicable period shall not
thereafter be barred. It is further agreed that there shall be no recovery
against any SoftDent Indemnifying Parties of any amount under this Section 9
that would be recoverable under insurance of Dentsply or Ceramco in effect on
the date hereof or any insurance maintained by PracticeWorks. In addition,
SoftDent Indemnifying Parties shall have no liability with respect to SoftDent
Indemnifiable Damages (A) until the total of all such damages exceeds $320,000
(the "SOFTDENT BASKET AMOUNT") in which event SoftDent Indemnifying Parties
shall be obligated to indemnify the SoftDent Indemnified Parties as provided
herein for all such Indemnifiable Damages in excess of the SoftDent Basket
Amount or (B) to the extent that the total of all SoftDent Indemnifiable Damages
exceeds $32.0 million. Notwithstanding the foregoing, the SoftDent Basket Amount
shall not apply with respect to (i) any breaches of representations and
warranties contained in Sections 3.3 ("Capitalization"), 3.10 ("Undisclosed
Liabilities"), 3.12 ("Taxes") or 3.27 ("Brokers or Finders"), (ii) legal and
accounting fees incurred by SoftDent LLC in connection with this Agreement or
the transactions contemplated hereby remaining unpaid after the Closing or (iii)
Dealer Agreement Claims.

                           (iii)    Notwithstanding anything herein to the
contrary, as to SoftDent Indemnifiable Damages arising under subsection 9.1A(iv)
only, the SoftDent Indemnifying Parties shall be responsible to indemnify the
SoftDent Indemnified Parties for only fifty percent (50%) of the first
$1,260,000 of such SoftDent Indemnifiable Damages. The obligation set forth in
this Section 9.1C(iii) shall survive until five years from the Closing Date.

                                     - 44 -
<PAGE>   45

         9.2.     AGREEMENTS BY PRACTICEWORKS TO INDEMNIFY. PracticeWorks (the
"PRACTICEWORKS INDEMNIFYING PARTY") agrees to indemnify and hold Dentsply and
Ceramco (the "PRACTICEWORKS INDEMNIFIED PARTIES") harmless in respect of the
aggregate of all PracticeWorks Indemnifiable Damages.

                  A.       For this purpose, "PRACTICEWORKS INDEMNIFIABLE
DAMAGES" means the aggregate of all Damages incurred or suffered by any of
PracticeWorks Indemnified Parties resulting from:

                           (i)      Any inaccurate representation or warranty
made by PracticeWorks pursuant to this Agreement or in the PracticeWorks
Disclosure Schedule or certificates delivered in connection herewith;

                           (ii)     Any default in the performance of any of the
covenants or agreements made by PracticeWorks in this Agreement; or

                           (iii)    Any claim by any person for brokerage or
finder's fees or commissions or similar payments based upon any agreement or
understanding alleged to have been made by any such person with PracticeWorks
(or any person acting on their behalf) in connection with any of the
Contemplated Transactions.

                  B.       The foregoing obligation of PracticeWorks
Indemnifying Parties to indemnify PracticeWorks Indemnified Parties shall be
subject to each of the following:

                           (i)      Each of the representations and warranties
made by PracticeWorks in Article 4 of this Agreement shall survive for a period
of two (2) years after the Closing Date, and thereafter all such representations
and warranties shall be extinguished; and

                           (ii)     No claim for the recovery of PracticeWorks
Indemnifiable Damages pursuant to Section 9.2.A(i) may be asserted by
PracticeWorks Indemnified Parties against PracticeWorks Indemnifying Parties or
their successors in interest after such representations and warranties shall be
thus extinguished; provided, however, that claims first asserted in writing
within the applicable period shall not thereafter be barred. In addition,
PracticeWorks Indemnifying Parties shall have no liability with respect to
PracticeWorks Indemnifiable Damages (A) until the total of all such damages
exceeds $320,000 (the "PRACTICEWORKS BASKET AMOUNT") in which event
PracticeWorks Indemnifying Parties shall be obligated to indemnify the
PracticeWorks Indemnified Parties as provided herein for all such Indemnifiable
Damages in excess of the PracticeWorks Basket Amount or (B) to the extent that
the total of all PracticeWorks Indemnifiable Damages exceeds $32.0 million.
Notwithstanding the foregoing, the PracticeWorks Basket Amount shall not apply
with respect to (i) any breaches of representations or warranties contained in
Section 4.6 ("Brokers or Finders"), or (ii) any obligations contained in Section
5.8.

         9.3      AGREEMENTS BY INFOCURE TO INDEMNIFY. InfoCure (the "INFOCURE
INDEMNIFYING PARTY") agrees to indemnify and hold Dentsply and Ceramco (the
"INFOCURE INDEMNIFIED PARTIES") harmless in respect of the aggregate of all
InfoCure Indemnifiable Damages.

                  A.       For this purpose, "INFOCURE INDEMNIFIABLE DAMAGES"
means the aggregate of all Damages incurred or suffered by any of InfoCure
Indemnified Parties resulting from:

                           (i)      Any inaccurate representation or warranty
made by InfoCure pursuant to this Agreement or in the PracticeWorks Disclosure
Schedule or certificates delivered in connection herewith;

                                     - 45 -
<PAGE>   46

                           (ii)     Any default in the performance of any of the
covenants or agreements made by InfoCure in this Agreement;

                           (iii)    Any claim by any person for brokerage or
finder's fees or commissions or similar payments based upon any agreement or
understanding alleged to have been made by any such person with InfoCure (or any
person acting on its behalf) in connection with any of the Contemplated
Transactions; or

                           (iv)     To the extent that PracticeWorks becomes
liable for PracticeWorks Indemnifiable Damages for the breach of the
representations and warranties set forth in Sections 4.8, 4.9, 4.10 and 4.11
hereof and does not have sufficient assets to pay such claim in full within
ninety (90) days after an acknowledgment of or a final, non-appealable
adjudication that such claim is due, then InfoCure shall be jointly and
severally liable with PracticeWorks for the amount of such unpaid claim.

                  B.       The foregoing obligation of InfoCure Indemnifying
Parties to indemnify InfoCure Indemnified Parties shall be subject to each of
the following:

                           (i)      Each of the representations and warranties
made by InfoCure in Article 4 of this Agreement shall survive for a period of
two (2) years after the Closing Date, and thereafter all such representations
and warranties shall be extinguished; and

                           (ii)     No claim for the recovery of InfoCure
Indemnifiable Damages pursuant to Section 9.3.A(i) may be asserted by InfoCure
Indemnified Parties against InfoCure Indemnifying Parties or their successors in
interest after such representations and warranties shall be thus extinguished;
provided, however, that claims first asserted in writing within the applicable
period shall not thereafter be barred. In addition, InfoCure Indemnifying
Parties shall have no liability with respect to InfoCure Indemnifiable Damages
(A) until the total of all such damages exceeds $320,000 (the "INFOCURE BASKET
AMOUNT") in which event InfoCure Indemnifying Parties shall be obligated to
indemnify the InfoCure Indemnified Parties as provided herein for all such
Indemnifiable Damages in excess of the InfoCure Basket Amount or (B) to the
extent that the total of all InfoCure Indemnifiable Damages exceeds $32.0
million. Notwithstanding the foregoing, the InfoCure Basket Amount shall not
apply with respect to any breaches of representations or warranties contained in
Section 4.6 ("Brokers or Finders").

         9.4.     INDEMNIFICATION PROCEDURES.

                  A.       General.

                           (i)      A party seeking indemnification (an
"INDEMNIFICATION CLAIM") pursuant to Sections 9.1, 9.2 or 9.3 (an "INDEMNIFIED
PARTY") shall give prompt notice to the party from whom such indemnification is
sought (the "INDEMNIFYING PARTY") of the assertion of any claim for
Indemnifiable Damages or the commencement of any action, suit or proceeding, in
respect of which indemnity may be sought hereunder, including the basis on which
indemnification is sought and the amount of asserted Indemnifiable Damages, and
will give the Indemnifying Party such information with respect thereto as the
Indemnifying Party may reasonably request, but failure to give such notice shall
not relieve the Indemnifying Party of any liability hereunder (except to the
extent that the Indemnifying Party has suffered actual prejudice thereby).

                                     - 46 -
<PAGE>   47

                           (ii)     If the Indemnification Claim involves a
Third Party Claim (as defined below), the procedures set forth in Section 9.4.B
hereof shall be observed by the Indemnified Party and the Indemnifying Party.

                           (iii)    If the Indemnification Claim involves a
matter other than a Third Party Claim, the Indemnifying Party shall have thirty
(30) days to object to such Indemnification Claim by delivery of a written
notice of objection to the Indemnified Party specifying in reasonable detail the
basis for such objection. Failure to timely so object shall constitute a final
and binding acceptance of the Indemnification Claim by the Indemnifying Party on
behalf of all Indemnified Parties, and the Indemnification Claim shall be paid
in accordance with Section 9.6 hereof. If an objection is timely interposed by
the Indemnifying Party and the dispute is not resolved by the Indemnified Party
and the Indemnifying Party within fifteen (15) days from the date the
Indemnified Party receives such objection, such dispute shall be resolved by
arbitration as provided in Section 9.8 of this Agreement.

                  B.       Third Party Claims.

                           (i)      Within fifteen (15) days of receipt of
notice from the Indemnified Party of the commencement of or assertion of any
claim or action, suit or proceeding by a person not a party to this Agreement
(other than an affiliate of any party hereto) in respect of which indemnity may
be sought hereunder , except with respect to Dealer Agreement Claims (a "THIRD
PARTY CLAIM"), the Indemnifying Party shall notify the Indemnified Party (A)
whether the Indemnifying Party disputes liability to the Indemnified Party with
respect to the Third Party Claim and, if so, the basis of such dispute and (B)
whether the Indemnifying Party elects to exercise its right hereunder to assume
the defense and control the settlement of such Third Party Claim; provided,
however, that (I) the Indemnified Party is hereby authorized (but not obligated)
at its expense to file any motion, answer or other pleading or to take any other
action which the Indemnified Party shall reasonably deem necessary or
appropriate to protect its interest and (II) the Indemnifying Party shall not
have the right to assume the defense and control the settlement of such Third
Party Claim to the extent that such claim seeks, in addition to or in lieu of
monetary damages, any injunctive or other equitable relief against the
Indemnified Party. If the Indemnifying Party does not defend the Indemnified
Party against a Third Party Claim, whether by failure of the Indemnifying Party
to give the Indemnified Party timely notice as provided herein or otherwise, the
Indemnified Party, without waiving any rights against the Indemnifying Party,
may defend against such Third Party Claim and the Indemnified Party shall be
entitled to recover from the Indemnifying Party all Indemnifiable Damages with
respect to such Third Party Claim.

                           (ii)     If, in the reasonable opinion of the
Indemnified Party, any Third Party Claim or the litigation or resolution thereof
involves an issue or matter which could have a Material Adverse Effect on the
business, operations assets, properties or prospects of the Indemnified Party
(including, without limitation, the administration of the tax returns and
responsibilities under the tax laws of the Indemnified Party), the Indemnified
Party shall have the right to control the defense, compromise and settlement of
such Third Party Claim undertaken by the Indemnifying Party, and the costs and
expenses of the Indemnified Party in connection therewith shall be included as
part of the indemnification obligations of the Indemnifying Party hereunder.

                           (iii)    The Indemnifying Party or the Indemnified
Party, as the case may be, shall have the right to participate in (but not
control), at its own expense, the defense of any Third Party Claim which the
other is defending as provided in this Agreement.

                                     - 47 -
<PAGE>   48

                           (iv)     The Indemnifying Party, if it shall have
assumed the defense of any Third Party Claim as provided in this Agreement,
shall not consent to a settlement of, or the entry of any judgment arising from,
any such Third Party Claim except by order of a court of competent jurisdiction
without the prior written consent of the Indemnified Party (which consent shall
not be unreasonably withheld or delayed). The Indemnifying Party shall not,
without the prior written consent of the Indemnified Party, enter into any
compromise or settlement that commits the Indemnified Party to take, or to
forbear to take, any action or that does not provide for a complete release by
such third party of the Indemnified Party. The Indemnified Party shall have the
sole and exclusive right to settle any Third Party Claim, on such terms and
conditions as it deems reasonably appropriate, to the extent such Third Party
Claim involves equitable or other non-monetary relief against the Indemnified
Party, and unless the Indemnifying Party shall have assumed the defense of such
Third Party Claim, shall have the right to settle any Third Party Claim
involving monetary damages with the written consent of the Indemnifying Party,
which consent shall not be unreasonably withheld or delayed. Consent shall be
presumed in the case of settlements of $20,000 or less where the party whose
consent is required has not responded within five (5) business days of notice of
a proposed settlement. If the Indemnifying Party shall have assumed the defense
of any Third Party Claim, the Indemnified Party shall not consent to a
settlement of, or the entry of any judgment arising from, any such Third Party
Claim without the prior written consent of the Indemnified Party (which consent
shall not be unreasonably withheld or delayed), except that no such consent
shall be required to the extent that a Third Party Claim that involves equitable
or other non-monetary relief against the Indemnified Party.

                           (v)      Regardless of whether the Indemnifying Party
chooses to defend or prosecute any Third Party Claim (including for purposes of
this paragraph (v) only, Dealer Agreement Claims), all the parties hereto shall
cooperate in the defense or prosecution thereof and shall furnish such records,
information and testimony, and attend such conferences, discovery proceedings,
hearings, trials and appeals, as may be reasonably requested in connection
therewith. The parties to this Agreement shall execute such powers of attorney
as may reasonably be necessary or appropriate to permit participation of counsel
selected by any party hereto and, as may reasonably be related to any such claim
or action, shall provide access to the counsel, accountants and other
representatives of each party during normal business hours to such properties,
personnel, books, tax records, contracts, commitments and other business records
of such other party as may reasonably be requested and will furnish to such
other party copies of all such documents as may reasonably be requested
(certified, if requested).

         9.5.     SOLE REMEDY. In the event that the Closing occurs, the right
to payment of Indemnifiable Damages as provided in this Section 9 shall be the
sole and exclusive remedy of any Indemnified Party under this Agreement against
any Indemnifying Party in respect of the Contemplated Transactions.

         9.6.     MANNER AND AMOUNT OF INDEMNIFICATION.

                  A.       Indemnification by Dentsply or Ceramco. Any
indemnification payment made by a SoftDent Indemnifying Party may be made, at
the option of the SoftDent Indemnifying Party, in cash or by the delivery to
PracticeWorks of an aggregate number of shares of PracticeWorks Common Stock, or
of PracticeWorks Preferred Stock convertible into PracticeWorks Common Stock,
having a value equal to the amount of the SoftDent Indemnifiable Damages, such
value to be measured by the Original Purchase Price per share, as defined in the
Certificate of Designation.

                  B.       Indemnification by PracticeWorks. Any indemnification
payment made by a PracticeWorks Indemnifying Party may be made, at the option of
the PracticeWorks Indemnifying Party, in cash or by the delivery to Ceramco of
PracticeWorks Common Stock having a value equal to the amount of

                                     - 48 -
<PAGE>   49

the PracticeWorks Indemnifiable Damages, such value to be measured by the
Original Purchase Price per share.

                  C.       Time for Payment. Payment shall be made under this
Article 9 when either (i) the Indemnifying Party and the Indemnified Party agree
on the amount of Indemnifiable Damages or (ii) the amount of Indemnifiable
Damages is finally determined pursuant to Section 9.8 below.

                  D.       Adjustments. The parties will make appropriate
adjustments for any Tax benefits or Tax detriments in determining Indemnifiable
Damages.

                  E.       Subsequent Disclosure. No Indemnified Party shall be
entitled to any indemnity for Indemnifiable Damages to the extent that the
existence of such Indemnifiable Damages, the breach of covenant or warranty or
the falsity of the representation upon which such Indemnifiable Damages would be
based is disclosed in the SoftDent Disclosure Schedule (in the case of a
SoftDent Indemnified Party) or the PracticeWorks Disclosure Schedule (in the
case of a PracticeWorks Indemnified Party); provided that any such
misrepresentation or breach of warranty or covenant so disclosed after execution
and delivery of this Agreement and prior to Closing shall not affect the right
of InfoCure, PracticeWorks, or Dentsply, as the case may be, to elect not to
close the transactions contemplated by this Agreement to the extent provided in
Section 6 or Section 7, as the case may be.

         9.7.     NO LIABILITY OR CONTRIBUTION BY SOFTDENT LLC. The parties
hereto acknowledge that because PracticeWorks will become directly or indirectly
the owner of SoftDent LLC as a result of the Contemplated Transactions,
PracticeWorks shall not be required to assert any claim arising out of any
breach of covenant or breach of any representation or warranty contained in this
Agreement or the SoftDent Disclosure Schedule, or any supplement thereto,
against SoftDent LLC. Instead, any such claim shall be asserted against Dentsply
or Ceramco who hereby assumes all liability therefore in accordance with, and
subject to the conditions and restrictions of this Section 9. Furthermore,
SoftDent LLC shall not have any liability to PracticeWorks as a result of any
misrepresentation or breach of representation or warranty by SoftDent LLC
contained in this Agreement, the SoftDent Disclosure Schedule, or any supplement
thereto, or closing certificates, instruments, agreements, or other writing
delivered by, or on behalf of, Dentsply, Ceramco or SoftDent LLC pursuant to
this Agreement or in connection with the Contemplated Transactions, or the
breach of any covenant or agreement of Dentsply, Ceramco or SoftDent LLC
contained in this Agreement or in the SoftDent Disclosure Schedule or any
supplement thereto, or in any certificate, instrument, agreement, or other
writing delivered to PracticeWorks by, or on behalf of, Dentsply, Ceramco or
SoftDent LLC pursuant to the provisions of this Agreement or in connection with
the Contemplated Transactions, and Dentsply and Ceramco shall not have any right
of indemnification or contribution against SoftDent LLC on account of any event
or condition occurring or existing prior to or on the date hereof with respect
to the SoftDent Business.

         9.8.     ARBITRATION. All disputes arising under this Section 9 shall
be submitted to and settled by arbitration. Arbitration shall be by three (3)
arbitrators selected in accordance with the rules of the American Arbitration
Association, Cobb County, Georgia ("AAA"), by the AAA. The hearing before the
arbitrator shall be held in Atlanta, Georgia and shall be conducted in
accordance with the rules existing at the date thereof of the AAA, to the extent
not inconsistent with this Agreement. The decision of the arbitrator shall be
final and binding as to any matters submitted to them under this Section 9. All
costs and expense incurred in connection with any such arbitration proceeding
and those incurred in any civil action to enforce the same shall be borne by the
party against which the decision is rendered.

                                     - 49 -
<PAGE>   50

10.      GENERAL PROVISIONS.

         10.1     TAX MATTERS. The following provisions shall govern the
allocation of responsibility among InfoCure, PracticeWorks, Dentsply and Ceramco
for certain tax matters following the Closing Date:

                  A.       Tax Sharing Agreements. Any tax sharing agreement
between Dentsply, Ceramco and/or SoftDent LLC and any other member of the
Affiliated Group of which Ceramco is a member will be terminated as of the
Closing Date and will have no further effect for any taxable year (whether the
current year, a future year or a past year).

                  B.       Returns for Periods Through the Closing Date.
Dentsply will include the income of Ceramco (including any deferred income
triggered into income by Reg. ss.1.1502-13 and Reg. ss.1.1502-14 and any excess
loss accounts taken into income under Reg. ss.1.1502-19) on the Dentsply
consolidated federal income Tax Returns and any similar unitary or combined
state income Tax Returns for all periods through the Closing Date and pay any
federal or state income Taxes attributable to such income. After the Closing
Date, SoftDent LLC will furnish Tax information to Dentsply for inclusion in
Dentsply's federal consolidated income Tax Return and any similar unitary or
combined state income Tax Return for the period which includes the Closing Date
in accordance with Dentsply's past custom and practice. Dentsply will allow
PracticeWorks and InfoCure an opportunity to review and comment upon such Tax
Returns (including any amended returns) to the extent that they relate to
SoftDent LLC. Dentsply will take no position on such returns that relate to
SoftDent LLC that would adversely affect SoftDent LLC or PracticeWorks after the
Closing Date unless such position would be reasonable in the case of a person
that owned SoftDent LLC and PracticeWorks both before and after the Closing
Date. For purposes of such Tax Returns, the income of Ceramco will be
apportioned to the period up to and including the Closing Date and the period
after the Closing Date by closing the books of Ceramco as of the end of the
Closing Date. With respect to Tax Returns other than consolidated federal income
Tax Returns and unitary or combined state income Tax Returns, PracticeWorks
shall prepare or cause to be prepared, and file or cause to be filed, all Tax
Returns for SoftDent LLC for all periods ending on or prior to the Closing Date
which are required to be filed after the Closing Date. PracticeWorks shall
permit Dentsply or Ceramco to review and comment on each such material Tax
Return described in the preceding sentence prior to filing. Dentsply or Ceramco
shall reimburse PracticeWorks for Taxes of SoftDent LLC with respect to any
period on or prior to the Closing Date within fifteen (15) days of written
notice thereof by PracticeWorks (but no earlier than fifteen (15) days prior to
the date such Taxes are due) to the extent such Taxes are not reflected in the
reserve for Tax liability in the Most Recent Balance Sheet. Notwithstanding the
foregoing, any Tax Returns of SoftDent LLC relating to the reporting year 2000
that have not been filed as of the Closing Date shall be prepared and filed by
Dentsply.

                  C.       Audits and Cooperation. After the Closing Date,
Dentsply will provide PracticeWorks with written notice of any audits,
litigation or other proceedings with respect to Dentsply's consolidated federal
income Tax Returns and/or unitary or combined state income Tax Returns to the
extent that such audit, litigation or other proceeding relates to Ceramco or
SoftDent LLC. Dentsply will not settle any such audit, litigation, or other
proceeding in a manner which would adversely affect SoftDent LLC or
PracticeWorks after the Closing Date unless such settlement would be reasonable
in the case of a person that owned SoftDent LLC and PracticeWorks both before
and after the Closing Date. Further, InfoCure, PracticeWorks, Dentsply, Ceramco
and SoftDent LLC shall cooperate fully, as and to the extent reasonably
requested by the other party, in connection with the filing of Tax Returns
pursuant to this Section and any audit, litigation or other proceeding with
respect to Taxes. Such cooperation shall include the retention and (upon the
other party's request) the provision of records and information which are
reasonably relevant to any such audit, litigation or other proceeding and making
employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. InfoCure,
PracticeWorks,

                                     - 50 -
<PAGE>   51

Dentsply and Ceramco agree (1) to retain all books and records with respect to
Tax matters pertinent to the SoftDent Business or the PracticeWorks Business
relating to any taxable period beginning before the Closing Date until the
expiration of the statute of limitations (and any extensions thereof) of the
respective taxable periods, and to abide by all record retention agreements
entered into with any taxing authority and (2) to give the other party
reasonable written notice prior to transferring, destroying or discarding any
such books and records and, if the other party so requests, to allow the other
party to take possession of such books and records. InfoCure, PracticeWorks,
Dentsply and Ceramco further agree, upon request, to use their best efforts to
obtain any certificate or other document from any governmental authority or any
other Person as may be necessary to mitigate, reduce or eliminate any Tax that
could be imposed (including, but not limited to, with respect to the
transactions contemplated hereby).

                  D.       Carryovers. After the Closing Date, Dentsply will not
elect to retain any net operating loss carryovers or capital loss carryovers of
SoftDent LLC under Reg.ss.1.1502-20(g). After the Closing Date, PracticeWorks
will not elect to carry back any post-Closing losses or other items of SoftDent
LLC to pre-Closing tax periods.

                  E.       Transfer Taxes. All transfer, documentary, sales,
use, stamp, registration and other such Taxes and fees (including any penalties
and interest) incurred in connection with the transfer of the SoftDent Assets
and the Membership Interests shall be paid by Ceramco when due, and all
transfer, documentary, sales, use, stamp, registration and other such Taxes and
fees (including any penalties and interest) incurred in connection with the
transfer of the PracticeWorks Assets shall be paid by InfoCure when due. The
party responsible for such costs will, at its own expense, file all necessary
Tax Returns and other documentation with respect to all such transfer,
documentary, sales, use, stamp, registration and other Taxes and fees, and, if
required by applicable law, PracticeWorks will, and will cause its affiliates
to, join in the execution of any such Tax Returns and other documentation.

         10.2.    EMPLOYEES. Following the Closing, PracticeWorks shall permit
the employees of SoftDent LLC to participate in PracticeWorks' employee benefit
plans and programs on a substantially similar basis (including satisfaction of
eligibility requirements) as PracticeWorks provides employee benefits to its
employees, giving credit for all service with Dentsply, Ceramco and SoftDent
LLC, to the same extent prior to the Closing Date under the corresponding
benefit plan or program of Dentsply or SoftDent LLC, without duplication of
benefits as permitted by applicable law.

         10.3.    NO DEEMED REPRESENTATION OR WARRANTY. None of Dentsply,
Ceramco or SoftDent LLC shall be deemed to have made to InfoCure or
PracticeWorks, and neither InfoCure nor PracticeWorks shall be deemed to have
made to Dentsply, Ceramco or SoftDent LLC, any representation or warranty other
than as expressly made by such party in this Agreement. Without limiting the
generality of the foregoing, and notwithstanding any otherwise express
representation or warranty made by a party in this Agreement, no party makes any
representation or warranty to any other party with respect to:

                  A.       Any projections, estimates or budgets heretofore
delivered to or made available to such other party of future revenues, expenses
or expenditures or future results of operations; or

                  B.       Except as expressly covered by a representation and
warranty contained in this Agreement, any other information or document
(financial or otherwise) made available to such other party or its counsel,
accountants or advisers with respect to such party.

                                     - 51 -
<PAGE>   52

         10.1.    CERTAIN ACKNOWLEDGEMENTS. InfoCure and PracticeWorks each
acknowledge that:

                  A.       It has had the opportunity to visit with Ceramco and
SoftDent LLC and meet with their respective officers and other representatives
to discuss the business and the assets, liabilities, financial condition, cash
flow and operations of Ceramco and SoftDent LLC;

                  B.       All materials and information requested by InfoCure
or PracticeWorks have been provided to InfoCure or PracticeWorks to their
reasonable satisfaction;

                  C.       It has made its own independent examination,
investigation, analysis and evaluation of Ceramco and SoftDent LLC, including
InfoCure's and PracticeWorks' own estimate of the value of the SoftDent
Business; and

                  D.       It has undertaken such due diligence (including a
review of the assets, liabilities, books, records and contracts of Ceramco and
SoftDent LLC) as InfoCure and PracticeWorks each deem adequate, including that
described above.

         10.1.    EXPENSES. Except as otherwise expressly provided in this
Agreement, each party to this Agreement will bear its respective expenses
incurred in connection with the preparation, execution, and performance of this
Agreement and the Contemplated Transactions, including all fees and expenses of
agents, representatives, counsel, and accountants.

         10.6.    PUBLIC ANNOUNCEMENTS. Any public announcement or similar
publicity with respect to this Agreement or the Contemplated Transactions will
be issued, if at all, at such time and in such manner as InfoCure and Dentsply
may jointly agree, except to the extent that disclosure is required by Legal
Requirements. Unless consented to in advance by InfoCure, in the case of
disclosure by Dentsply, Ceramco or SoftDent LLC, or by Dentsply, in the case of
disclosure by InfoCure or PracticeWorks, unless required by Legal Requirements
or until public disclosure of the Contemplated Transactions has been made by the
parties to this Agreement, prior to the Closing each of the parties to this
Agreement shall keep this Agreement strictly confidential and may not make any
disclosure of this Agreement to any Person (other than their respective
Representatives).

                  The parties will consult with each other concerning the means
by which Ceramco's employees, customers, and suppliers and others having
dealings with Ceramco will be informed of the Contemplated Transactions, and
InfoCure or PracticeWorks will have the right to be present for any such
communication.

         10.7.    CONFIDENTIALITY. Between the date of this Agreement and the
Closing Date, parties will maintain in confidence, and will cause the directors,
officers, employees, agents, and advisors of InfoCure and PracticeWorks, on the
one hand and Dentsply, Ceramco and SoftDent LLC, on the other hand, to maintain
in confidence, and not use to the detriment of any other party any written,
oral, or other information obtained in confidence from another party in
connection with this Agreement or the Contemplated Transactions, unless:

                  A.       Such information is already known to such party or to
others not bound by a duty of confidentiality or such information becomes
publicly available through no fault of such party;

                  B.       The use of such information is necessary or
appropriate in making any filing or obtaining any consent or approval required
for the consummation of the Contemplated Transactions; or

                                     - 52 -
<PAGE>   53

                  C.       The furnishing or use of such information is required
by or necessary or appropriate in connection with legal proceedings.

                  If the Contemplated Transactions are not consummated, each
party will return or destroy as much of such written information as the other
party may reasonably request.

      10.8.    NOTICES. All notices, consents, waivers, and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (i) delivered by hand (with written confirmation of
receipt); (ii) sent by telecopier (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested or
(iii) when received by the addressee, if sent by a nationally recognized
overnight delivery service, in each case to the appropriate addresses and
telecopier numbers set forth below (or to such other addresses and telecopier
numbers as a party may designate by notice to the other parties):

                  Dentsply:               Dentsply International Inc.
                                          570 W. College Avenue
                                          York, PA  17404
                                          Attention:  General Counsel
                                          Telecopy No.: (717) 849-4753

                  With a copy to: Morgan Lewis & Bockius, LLP
                                          One Oxford Centre, 32nd floor
                                          Pittsburgh, PA 15219
                                          Attention:  Ellen P. Mercer
                                          Telecopy No.: 412.560.3399

                  Ceramco:                Ceramco Inc.
                                          570 W. College Avenue
                                          York, PA  17404
                                          Attention:  Secretary
                                          Telecopy No.: (717) 849-4753

                  With a copy to: Morgan Lewis & Bockius, LLP
                                          One Oxford Centre, 32nd floor
                                          Pittsburgh, PA 15219
                                          Attention: Ellen P. Mercer
                                          Telecopy No.: 412.560.3399

                  InfoCure:       InfoCure Corporation
                                          239 Ethan Allen Highway
                                          Attention: General Counsel
                                          Telecopy No.: (203) 438-6741

                  With a copy to: Morris, Manning & Martin, L.L.P.
                                          1600 Atlanta Financial Center
                                          3343 Peachtree Road, N.E.
                                          Atlanta, Georgia 30326-1044
                                          Attention: Richard L. Haury, Jr., Esq.
                                          Telecopy No.: (404) 365-9532

                                     - 53 -
<PAGE>   54

                  PracticeWorks:  PracticeWorks, Inc.
                                          1765 The Exchange
                                          Suite 450
                                          Atlanta, Georgia 30339
                                          Attention: Richard Perlman, Chairman
                                          Telecopy No.:

                  With a copy to: Morris, Manning & Martin, L.L.P.
                                          1600 Atlanta Financial Center
                                          3343 Peachtree Road, N.E.
                                          Atlanta, Georgia 30326-1044
                                          Attention: Richard L. Haury, Jr., Esq.
                                          Telecopy No.: (404) 365-9532

         10.9.    JURISDICTION; SERVICE OF PROCESS. Any action or proceeding
seeking to enforce any provision of, or based on any right arising out of, this
Agreement may be brought against any of the parties in the courts of the State
of Georgia, County of Cobb, or, if it has or can acquire jurisdiction, in the
United States District Court for the Northern District of Georgia, and each of
the parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to
venue laid therein. Process in any action or proceeding referred to in the
preceding sentence may be served on any party anywhere in the world.

         10.10.   FURTHER ASSURANCES. The parties agree (i) to furnish upon
request to each other such further information; (ii) to execute and deliver to
each other such other documents and (iii) to do such other acts and things, all
as the other party may reasonably request for the purpose of carrying out the
intent of this Agreement and the documents referred to in this Agreement.
Dentsply, Ceramco and SoftDent LLC will afford PracticeWorks and PracticeWorks'
accountants, counsel and other representatives reasonable access to its
properties, books, records and personnel during the period prior to the Closing
Date to obtain all information concerning the SoftDent Business as PracticeWorks
may reasonably request to assist PracticeWorks in causing to be filed such
documents with the SEC and other Governmental Bodies as may be necessary to
fulfill PracticeWorks obligations hereunder. InfoCure and PracticeWorks will
provide Dentsply and Ceramco with a copy of all such filings concurrently with
their filing and will notify Dentsply and Ceramco as promptly as practicable
after receipt of any comments from any such Governmental Body. No information or
knowledge obtained in any investigation pursuant to this Section 10.10 will
affect or be deemed to modify any representation or warranty contained herein or
the conditions to the obligations of any party to this Agreement to consummate
the Contemplated Transactions.

         10.11.   WAIVER. Except as provided in Section 9.4, the rights and
remedies of the parties to this Agreement are cumulative and not alternative.
Neither the failure nor any delay by any party in exercising any right, power,
or privilege under this Agreement or the documents referred to in this Agreement
will operate as a waiver of such right, power, or privilege, and no single or
partial exercise of any such right, power, or privilege will preclude any other
or further exercise of such right, power, or privilege or the exercise of any
other right, power, or privilege. To the maximum extent permitted by applicable
law:

                  A.       No claim or right arising out of this Agreement or
the documents referred to in this Agreement can be discharged by one party, in
whole or in part, by a waiver or renunciation of the claim or right unless in
writing signed by the other party;

                                     - 54 -
<PAGE>   55

                  B.       No waiver that may be given by a party will be
applicable except in the specific instance for which it is given; and

                  C.       No notice to or demand on one party will be deemed to
be a waiver of any obligation of such party or of the right of the party giving
such notice or demand to take further action without notice or demand as
provided in this Agreement or the documents referred to in this Agreement.

         10.12.   ENTIRE AGREEMENT AND MODIFICATION. This Agreement supersedes
all prior agreements between the parties with respect to its subject matter and
constitutes (along with the documents referred to in this Agreement) a complete
and exclusive statement of the terms of the agreement between the parties with
respect to its subject matter. This Agreement may not be amended except by a
written agreement executed by the party to be charged with the amendment.

         10.13.   DISCLOSURE SCHEDULE. In the event of any inconsistency between
the statements in the body of this Agreement and those in the SoftDent
Disclosure Schedule or the PracticeWorks Disclosure Schedule (other than an
exception expressly set forth as such in such Disclosure Schedule with respect
to a specifically identified representation or warranty), the statements in the
body of this Agreement will control.

         10.14.   ASSIGNMENTS, SUCCESSORS AND NO THIRD-PARTY RIGHTS. Dentsply,
Ceramco and, prior to the Closing, SoftDent LLC, may not assign any of their
respective rights under this Agreement without the prior consent of InfoCure,
and InfoCure, PracticeWorks and, following the Closing, SoftDent LLC, may not
assign any of their respective under this Agreement without the prior consent of
Dentsply, which, in each case, will not be unreasonably withheld. Subject to the
preceding sentence, this Agreement will apply to, be binding in all respects
upon, and inure to the benefit of the successors and permitted assigns of the
parties.

                  Nothing expressed or referred to in this Agreement will be
construed to give any Person other than the parties to this Agreement any legal
or equitable right, remedy, or claim under or with respect to this Agreement or
any provision of this Agreement. This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the parties to this
Agreement and their successors and assigns.

         10.15.   SEVERABILITY. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

         10.16.   SECTION HEADINGS; CONSTRUCTION. The headings of Sections in
this Agreement are provided for convenience only and will not affect its
construction or interpretation. All references to "Section" or "Sections" refer
to the corresponding Section or Sections of this Agreement. All words used in
this Agreement will be construed to be of such gender or number as the
circumstances require. Unless otherwise expressly provided, the word "including"
does not limit the preceding words or terms.

         10.17.   TIME OF ESSENCE. With regard to all dates and time periods set
forth or referred to in this Agreement, time is of the essence.

         10.18.   GOVERNING LAW. This Agreement will be governed by the laws of
the State of Delaware without regard to conflicts of laws principles.

         10.19.   COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute
one and the same agreement.

                                     - 55 -
<PAGE>   56

                    [SIGNATURES BEGIN ON THE FOLLOWING PAGE]

                                     - 56 -
<PAGE>   57

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

PARENT:                                       PRACTICEWORKS:

InfoCure Corporation                          PracticeWorks, Inc.

By:                                           By:
   ----------------------------------            ------------------------------
Title:                                        Title:
      -------------------------------               ---------------------------

Date:                                         Date:
     --------------------------------              ----------------------------

DENTSPLY:                                     CERAMCO:

Dentsply International Inc.                   Ceramco Inc.

By:                                           By:
   ----------------------------------            ------------------------------
Title:                                        Title:
      -------------------------------               ---------------------------

Date:                                         Date:
     --------------------------------              ----------------------------

SOFTDENT LLC:

SoftDent LLC

By:
   ----------------------------------
Title:
      -------------------------------

Date:
     --------------------------------

                                     - 57 -
<PAGE>   58
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----

<S>      <C>                                                                                                       <C>
1.       DEFINITIONS..........................................................................................        2

2.       CONTRIBUTION.........................................................................................        9
         2.1.     InfoCure Agreement to Contribute Assets; Assumption of Liabilities..........................        9
         2.2.     Ceramco Agreement to Contribute Assets to SoftDent LLC; Assumption of Liabilities
                  by SoftDent LLC; Ceramco Agreement to Contribute Membership Interests.......................       10
         2.3.     Closing.....................................................................................       10
         2.4.     Closing Obligations.........................................................................       10

3.       REPRESENTATIONS AND WARRANTIES OF DENTSPLY, CERAMCO AND SOFTDENT LLC.................................       12
         3.1.     Organization and Good Standing..............................................................       12
         3.2.     Authority; No Conflict......................................................................       13
         3.3.     Capitalization..............................................................................       14
         3.4.     Financial Statements........................................................................       14
         3.5.     Books and Records...........................................................................       14
         3.6.     Title to Properties; Encumbrances...........................................................       15
         3.7.     Real Property Leases........................................................................       15
         3.8.     Accounts Receivable.........................................................................       16
         3.9.     Inventory...................................................................................       16
         3.10.    No Undisclosed Liabilities..................................................................       16
         3.11.    Customers and Suppliers.....................................................................       16
         3.12.    Taxes.......................................................................................       16
         3.13.    No Material Adverse Change..................................................................       18
         3.14.    Employee Benefits Matters...................................................................       20
         3.15.    Compliance With Legal Requirements; Governmental Authorizations.............................       23
         3.16.    Legal Proceedings; Orders...................................................................       23
         3.17.    Contracts; No Defaults......................................................................       24
         3.18.    Insurance...................................................................................       26
         3.19.    Environmental Matters.......................................................................       26
         3.20.    Employees...................................................................................       27
         3.21.    Labor Relations; Compliance.................................................................       27
         3.22.    Intellectual Property Rights of Ceramco.....................................................       28
         3.23.    Certain Payments............................................................................       30
         3.24.    Disclosure..................................................................................       30
         3.25.    Potential Conflicts of Interest.............................................................       30
         3.26.    Brokers or Finders..........................................................................       31
         3.27.    Investment Intent...........................................................................       31
         3.28.    Dealer Contracts; No Defaults...............................................................       31

4.       REPRESENTATIONS AND WARRANTIES OF PRACTICEWORKS AND INFOCURE.........................................       32
         4.1.     Organization and Good Standing..............................................................       32
         4.2.     Authority; No Conflict......................................................................       33
         4.3.     Capitalization..............................................................................       33
         4.4.     Investment Intent...........................................................................       34
         4.5.     Certain Proceedings.........................................................................       34
</TABLE>

<PAGE>   59

<TABLE>
         <S>      <C>                                                                                                <C>
         4.6.     Brokers or Finders..........................................................................       34
         4.7.     PracticeWorks Information...................................................................       34
         4.8.     Accounts Receivable.........................................................................       34
         4.9.     Contracts; No Defaults......................................................................       34
         4.10.    Intellectual Property Rights of PracticeWorks...............................................       35
         4.11.    Financial Statements........................................................................       37

5.       ADDITIONAL COVENANTS.................................................................................       37
         5.1.     SoftDent Conduct of Business Prior to the Closing...........................................       37
         5.2.     PracticeWorks Conduct of Business Prior to the Closing......................................       38
         5.3.     PracticeWorks Access to Information.........................................................       38
         5.4.     Dentsply Access to Information..............................................................       38
         5.5.     Consents; Satisfaction of Closing Conditions................................................       39
         5.6.     Notices of Certain Events...................................................................       39
         5.7.     Hart-Scott-Rodino Filing....................................................................       39
         5.8.     Assumption of Lease Obligations.............................................................       39

6.       CONDITIONS PRECEDENT TO PRACTiCEWORKS' OBLIGATION TO CLOSE...........................................       39
         6.1.     Accuracy of Representations.................................................................       40
         6.2.     Ceramco's and SoftDent LLC's Performance....................................................       40
         6.3.     Consents....................................................................................       40
         6.4.     HSR Act.....................................................................................       40
         6.5.     Additional Documents........................................................................       40
         6.6.     No Proceedings..............................................................................       40
         6.7.     No Claim Regarding Stock Ownership or Sale Proceeds.........................................       40
         6.8.     Restrictive Covenant Agreements.............................................................       41
         6.9.     Employment Agreements.......................................................................       41
         6.10.    Spin-Off....................................................................................       41

7.       CONDITIONS PRECEDENT TO CERAMCO'S OBLIGATION TO CLOSE................................................       41
         7.1.     Accuracy of Representations.................................................................       41
         7.2.     PracticeWorks' Performance..................................................................       41
         7.3.     Consents....................................................................................       41
         7.4.     HSR Act.....................................................................................       41
         7.5.     Additional Documents........................................................................       41
         7.6.     No Proceeding...............................................................................       42
         7.7.     Spin-Off....................................................................................       42

8.       TERMINATION..........................................................................................       42
         8.1.     Termination Events..........................................................................       42
         8.2.     Effect of Termination.......................................................................       42

9.       INDEMNIFICATION; REMEDIES............................................................................       43
         9.1.     Agreements by Dentsply and Ceramco to Indemnify.............................................       43
         9.2.     Agreements by PracticeWorks to Indemnify....................................................       45
         9.3.     Agreements by InfoCure to Indemnify.........................................................       45
         9.4.     Indemnification Procedures..................................................................       46
         9.5.     Sole Remedy.................................................................................       48
         9.6.     Manner and Amount of Indemnification........................................................       48
         9.7.     No Liability or Contribution by SoftDent LLC................................................       49
         9.8.     Arbitration.................................................................................       49

10.      GENERAL PROVISIONS...................................................................................       50
         10.1.    Tax Matters.................................................................................       50
</TABLE>

<PAGE>   60

<TABLE>

         <S>      <C>                                                                                                <C>
         10.2.    Employees...................................................................................       51
         10.3.    No Deemed Representation or Warranty........................................................       51
         10.4.    Certain Acknowledgements....................................................................       52
         10.5.    Expenses....................................................................................       52
         10.6.    Public Announcements........................................................................       52
         10.7.    Confidentiality.............................................................................       52
         10.8.    Notices.....................................................................................       53
         10.9.    Jurisdiction; Service of Process............................................................       54
         10.10.   Further Assurances..........................................................................       54
         10.11.   Waiver......................................................................................       54
         10.12.   Entire Agreement and Modification...........................................................       55
         10.13.   Disclosure Schedule.........................................................................       55
         10.14.   Assignments, Successors and No Third-Party Rights...........................................       55
         10.15.   Severability................................................................................       55
         10.16.   Section Headings; Construction..............................................................       55
         10.17.   Time of Essence.............................................................................       55
         10.18.   Governing Law...............................................................................       55
         10.19.   Counterparts................................................................................       55
</TABLE>

                                    EXHIBITS

<TABLE>
                  <S>                              <C>
                  EXHIBIT A                        Form of Certificate of Designation.

                  EXHIBIT B                        Form of Member Release Agreement.

                  EXHIBIT C                        Form of Opinion of Company's Counsel.

                  EXHIBIT D                        Form of Restrictive Covenant Agreement.

                  EXHIBIT E                        Form of Bill of Sale and Assignment by Ceramco

                  EXHIBIT F                        Form of Assumption Agreement relating to the
                                                   SoftDent Assumed Liabilities

                  EXHIBIT G                        Form of Bill of Sale and Assignment by InfoCure

                  EXHIBIT H                        Form of Assumption Agreement relating to the
                                                   PracticeWorks Assumed Liabilities

                  EXHIBIT I                        Form of Opinion of PracticeWorks' Counsel.

                  EXHIBIT J                        Form of Registration Rights Agreement.
</TABLE><PAGE>   1

                                                                   EXHIBIT 10.19

                              AMENDED AND RESTATED

                AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

                                  BY AND AMONG

                MEDICAL DYNAMICS, INC., A COLORADO CORPORATION,

                  INFOCURE CORPORATION, A DELAWARE CORPORATION

                                      AND

              CADI ACQUISITION CORPORATION, A COLORADO CORPORATION

                            DATED: OCTOBER 10, 2000
<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          -----
<S>  <C>    <C>                                                           <C>
1.   DEFINITIONS........................................................    A-2
     1.1.   "Affiliate".................................................    A-2
     1.2.   "Best Efforts"..............................................    A-2
     1.3.   "Breach"....................................................    A-2
     1.4.   "Closing"...................................................    A-2
     1.5.   "Closing Date"..............................................    A-2
     1.6.   "Code"......................................................    A-2
     1.7.   "Company Disclosure Schedule"...............................    A-2
     1.8.   "Company Material Adverse Effect"...........................    A-2
     1.9.   "Consent"...................................................    A-2
     1.10.  "Contemplated Transactions".................................    A-2
     1.11.  "Contract"..................................................    A-3
     1.12.  "Damages"...................................................    A-3
     1.13.  "Effective Time"............................................    A-3
     1.14.  "Encumbrance"...............................................    A-3
     1.15.  "Environmental Requirements"................................    A-3
     1.16.  "ERISA".....................................................    A-3
     1.17.  "ERISA Affiliate"...........................................    A-3
     1.18.  "Exchange Act"..............................................    A-3
     1.19.  "Facilities"................................................    A-3
     1.20.  "GAAP"......................................................    A-3
     1.21.  "Governmental Authorization"................................    A-3
     1.22.  "Governmental Body".........................................    A-3
     1.23.  "HSR Act"...................................................    A-3
     1.24.  "IRS".......................................................    A-4
     1.25.  "Knowledge".................................................    A-4
     1.26.  "Legal Requirement".........................................    A-4
     1.27.  "Order".....................................................    A-4
     1.28.  "Ordinary Course of Business"...............................    A-4
     1.29.  "Organizational Documents"..................................    A-4
     1.30.  "Parent Disclosure Schedule"................................    A-4
     1.31.  "Parent Material Adverse Effect"............................    A-4
     1.32.  "Person"....................................................    A-4
     1.33.  "Plan"......................................................    A-4
     1.34.  "Proceeding"................................................    A-4
     1.35.  "Related Person"............................................    A-5
     1.36.  "Representative"............................................    A-5
     1.37.  "Securities Act"............................................    A-5
     1.38.  "Subsidiary"................................................    A-5
     1.39.  "Tax Returns"...............................................    A-5
     1.40.  "Taxes".....................................................    A-6
     1.41.  "Threatened"................................................    A-6
2.   MERGER.............................................................    A-6
     2.1.   The Merger..................................................    A-6
     2.2.   Effective Time; Closing.....................................    A-6
     2.3.   Effect of the Merger........................................    A-6
     2.4.   Articles of Incorporation; Bylaws; Directors and Officers...    A-6
</TABLE>

                                       A-i
<PAGE>   3

<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          -----
<S>  <C>    <C>                                                           <C>
     2.5.   Effect on Capital Stock.....................................    A-7
     2.6.   Exchange of Certificates....................................    A-9
     2.7.   Lost, Stolen or Destroyed Certificates......................   A-10
     2.8.   No Further Ownership Rights in Company Common Stock.........   A-11
     2.9.   Additional Actions..........................................   A-11
     2.10.  Tax and Accounting Consequences.............................   A-11
     2.11.  Automatic Conversion of Parent Preferred Stock Into
              PracticeWorks Preferred Stock.............................   A-11
3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY......................   A-11
     3.1.   Organization, Good Standing, Corporate Power and
              Subsidiaries..............................................   A-11
     3.2.   Authority; No Conflict......................................   A-12
     3.3.   Capitalization..............................................   A-13
     3.4.   SEC Filings; Financial Statements...........................   A-14
     3.5.   Books and Records...........................................   A-15
     3.6.   Real Property Interests.....................................   A-15
     3.7.   Condition and Sufficiency of Assets.........................   A-15
     3.8.   Accounts Receivable.........................................   A-15
     3.9.   Inventory...................................................   A-16
     3.10.  No Undisclosed Liabilities..................................   A-16
     3.11.  Taxes.......................................................   A-16
     3.12.  No Company Material Adverse Effect..........................   A-17
     3.13.  Employee Benefits Matters...................................   A-17
     3.14.  Compliance With Legal Requirements; Governmental
              Authorizations............................................   A-20
     3.15.  Legal Proceedings; Orders...................................   A-21
     3.16.  Absence of Certain Changes and Events.......................   A-22
     3.17.  Contracts; No Defaults......................................   A-23
     3.18.  Insurance...................................................   A-25
     3.19.  Environmental Matters.......................................   A-25
     3.20.  Employees...................................................   A-26
     3.21.  Government Contracts........................................   A-27
     3.22.  Intellectual Property Rights of the Company.................   A-27
     3.23.  Certain Payments............................................   A-33
     3.24.  Relationships With Related Persons..........................   A-33
     3.25.  Brokers or Finders..........................................   A-33
     3.26.  Labor Relations; Compliance.................................   A-33
     3.27.  Disclosure Documents........................................   A-34
     3.28.  Disclosure..................................................   A-34
     3.29.  Vote Required...............................................   A-34
     REPRESENTATIONS, WARRANTIES AND DISCLAIMERS OF MERGER SUB AND
4.   PARENT.............................................................   A-34
     4.1.   Organization................................................   A-34
     4.2.   Authorization...............................................   A-35
     4.3.   Absence of Restrictions and Conflicts.......................   A-35
     4.4.   Capitalization of Parent and Merger Sub.....................   A-36
     4.5.   SEC Filings; Financial Statements...........................   A-36
     4.6.   Litigation..................................................   A-37
     4.7.   Registration Statement; Proxy Statement.....................   A-37
     4.8.   Certain Proceedings.........................................   A-37
     4.9.   Brokers or Finders..........................................   A-37
</TABLE>

                                      A-ii
<PAGE>   4

<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          -----
<S>  <C>    <C>                                                           <C>
5.   CERTAIN AGREEMENTS OF THE PARTIES..................................   A-37
     5.1.   No Solicitation.............................................   A-37
     5.2.   Public Disclosure...........................................   A-39
     5.3.   Reasonable Efforts; Notification............................   A-39
     5.4.   Third Party Consents........................................   A-40
     5.5.   Indemnification.............................................   A-40
     5.6.   Nasdaq Listing..............................................   A-41
     5.7.   Reimbursement of Employee Costs and Expenses................   A-41
     5.8.   Provision of Loan By Parent to Company......................   A-41
     5.9.   PracticeWorks Spin-off......................................   A-41
6.   ADDITIONAL COVENANTS OF THE PARTIES................................   A-41
     6.1.   Mutual Covenants............................................   A-41
     6.2.   Covenants of the Company....................................   A-44
     6.3.   Form S-8....................................................   A-46
     6.4.   Stock Options and Warrants..................................   A-46
7.   CONDITIONS.........................................................   A-47
     7.1.   Mutual Conditions...........................................   A-47
     7.2.   Conditions to Obligations of Merger Sub and Parent..........   A-48
     7.3.   Conditions to Obligations of the Company....................   A-49
8.   TERMINATION........................................................   A-50
     8.1.   Termination.................................................   A-50
     8.2.   Notice of Termination; Effect of Termination................   A-51
     8.3.   Fees and Expenses...........................................   A-51
     8.4.   Amendment...................................................   A-53
     8.5.   Extension; Waiver...........................................   A-53
     8.6.   Special Parent Payment......................................   A-53
9.   MISCELLANEOUS......................................................   A-53
     9.1.   Survival of Representations and Warranties..................   A-53
     9.2.   Notices.....................................................   A-53
     9.3.   Further Assurances..........................................   A-54
     9.4.   Waiver......................................................   A-54
     9.5.   Entire Agreement and Modification...........................   A-54
     9.6.   Assignments, Successors and No Third-Party Rights...........   A-55
     9.7.   Section Headings, Construction..............................   A-55
     9.8.   Time of Essence.............................................   A-55
     9.9.   Governing Law...............................................   A-55
     9.10.  Counterparts................................................   A-55
</TABLE>

EXHIBITS:

<TABLE>
<S>          <C>
Exhibit A    Form of Shareholder Agreement.
Exhibit B    Form of Certificate of Designation.
Exhibit C-1  Form of Employment Agreement for Daniel L. Richmond.
Exhibit C-2  Form of Employment Agreement for Chae U. Kim.
Exhibit D    Form of Norton Lidstone, P.C. Legal Opinion.
Exhibit E    Form of Morris, Manning & Martin, L.L.P. Legal Opinion.
</TABLE>

                                      A-iii
<PAGE>   5

                              AMENDED AND RESTATED
                AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

     THIS AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
(this "Agreement"), is made and entered into as of this 10th day of October,
2000, by and among INFOCURE CORPORATION, a Delaware corporation ("Parent"), CADI
ACQUISITION CORPORATION, a Colorado corporation and a wholly-owned subsidiary of
Parent ("Merger Sub") and MEDICAL DYNAMICS, INC., a Colorado corporation
("Company").

                                   RECITALS:

     A. Upon the terms and subject to the conditions of this Agreement and in
accordance with the Colorado Business Corporation Act ("Colorado Law"), Parent,
Merger Sub and Company intend to enter into a transaction pursuant to which
Merger Sub will be merged with and into Company.

     B. The Board of Directors of Company (i) has determined that the Merger (as
defined in Section 2.1.) is consistent with and in furtherance of the long-term
business strategy of Company and fair to, and in the best interests of, Company
and its shareholders; (ii) has approved and declared advisable this Agreement,
and has approved the Merger and the other transactions contemplated by this
Agreement and (iii) has determined to recommend that the shareholders of Company
adopt and approve this Agreement and approve the Merger.

     C. The Board of Directors of Parent (i) has determined that the Merger is
consistent with and in furtherance of the long-term business strategy of Parent
and is fair to, and in the best interests of, Parent and its stockholders; (ii)
has approved this Agreement, the Merger and the other transactions contemplated
by this Agreement; (iii) has approved the issuance of shares of common stock,
$.001 par value per share, of Parent ("Parent Common Stock") pursuant to the
Merger and (iv) has approved the issuance of shares of Series A preferred stock,
$.001 par value per share, of Parent ("Parent Preferred Stock"), having the
designations, preferences and rights set forth on EXHIBIT B, pursuant to the
Merger.

     D. Concurrently with the execution of this Agreement, and as a condition
and inducement to Parent's willingness to enter into this Agreement (i) Edwin L.
Adair, M.D. and Pat Horsley Adair; (ii) Daniel L. Richmond; (iii) Chae U. Kim
and (iv) Van A. Horsley (such individuals collectively referred to as the
"Principal Shareholders") are entering into Shareholder Agreements in the form
attached hereto as EXHIBIT A (the "Shareholder Agreements").

     E. The parties intend, by executing this Agreement, to adopt a plan of
reorganization within the meaning of Section 368 of the Internal Revenue Code of
1986, as amended (the "Code").

     F. This Agreement amends and restates in its entirety that certain original
Agreement and Plan Merger and Reorganization dated December 21, 1999, as amended
by that First Amendment to the Agreement and Plan of Merger dated April 10,
2000, and as further amended by that certain Second Amendment to the Agreement
and Plan of Merger dated June 21, 2000.

                                       A-1
<PAGE>   6

     NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

1. DEFINITIONS.

     The following terms shall have the following meanings:

     1.1. "AFFILIATE" is used in this Agreement to indicate a relationship with
one (1) or more persons and when used shall mean any corporation or organization
of which such person is an executive officer, director or partner or is directly
or indirectly the beneficial owner of ten percent (10%) or more of any class of
equity securities or financial interest therein; any trust or other estate in
which such person has a beneficial interest or as to which such person serves as
trustee or in any similar fiduciary capacity; any relative or spouse of such
person, or any relative of such spouse (such relative being related to the
person in question within the second degree); or any person that directly, or
indirectly through one (1) or more intermediaries, controls or is controlled by,
or is under common control with, the person specified.

     1.2. "BEST EFFORTS" means the efforts that a prudent Person desirous of
achieving a result would reasonably use in similar circumstances to ensure that
such result is achieved as expeditiously as possible; provided, however, that an
obligation to use Best Efforts under this Agreement does not require the Person
subject to that obligation to take actions that would result in a materially
adverse change in the benefits of this Agreement and the Contemplated
Transactions to such Person.

     1.3. "BREACH" means a "breach" of a representation, warranty, covenant,
obligation, or other provision of this Agreement and will be deemed to have
occurred if there is or has been any inaccuracy in or any failure to perform or
comply with, such representation, warranty, covenant, obligation, or other
provision.

     1.4. "CLOSING" is defined in this Agreement in Section 2.2.

     1.5. "CLOSING DATE" is defined in this Agreement in Section 2.2.

     1.6. "CODE" means the Internal Revenue Code of 1986, as amended, including
regulations or other authoritative notices or rulings issued by the Internal
Revenue Service thereunder.

     1.7. "COMPANY DISCLOSURE SCHEDULE" is defined in this Agreement in Section
3.

     1.8. "COMPANY MATERIAL ADVERSE EFFECT" means a material adverse effect on
the financial condition, results of operation, business or properties of the
Company and Subsidiary taken as a whole.

     1.9. "CONSENT" means any approval, consent, ratification, waiver, or other
authorization (including any Governmental Authorization).

     1.10. "CONTEMPLATED TRANSACTIONS" means all of the transactions
contemplated by this Agreement, including, without limitation:

          A. The Merger; and

          B. The performance by Merger Sub, Parent and the Company of their
     respective covenants and obligations under this Agreement.

                                       A-2
<PAGE>   7

     1.11. "CONTRACT" means any agreement, contract, subcontract, lease, binding
understanding, instrument, note, option, warranty, purchase order, license,
sublicense, insurance policy, benefit plan, commitment, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

     1.12. "DAMAGES" means any loss, liability, claim, damages, expense
(including, without limitation, costs of investigation and defense and
reasonable attorneys' fees) or diminution of value, whether or not involving a
third party.

     1.13. "EFFECTIVE TIME" is defined in this Agreement in Section 2.2.

     1.14. "ENCUMBRANCE" means any security interest, mortgage, lien, charge,
adverse claim or restriction of any kind, including, but not limited to, any
restriction on the use, voting, transfer, receipt of income or other exercise of
any attributes of ownership.

     1.15. "ENVIRONMENTAL REQUIREMENTS" means federal, state and local laws
relating to pollution or protection of the environment, including laws or
provisions relating to emissions, discharges, releases or threatened releases of
pollutants, contaminants, or hazardous or toxic materials, substances, or wastes
into air, surface water, groundwater, or land, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling of pollutants, contaminants or hazardous or toxic
materials, substances, or wastes.

     1.16. "ERISA" means the Employee Retirement Income Security Act of 1974 or
any successor law, and regulations and rules issued pursuant to that Act or any
successor law.

     1.17. "ERISA AFFILIATE" means any Person which would be required to be
aggregated with the Company under Code sec. 414(b), (c), (m) and/or (o) and/or
under ERISA sec. 4001(a)(14) at any time during the period beginning seven (7)
years prior to the Closing Date and ending immediately prior to the Closing.

     1.18. "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

     1.19. "FACILITIES" means any real property, leaseholds, or other interests
currently or formerly owned or operated by the Company or any Subsidiary and any
buildings, plants, structures, or equipment (including motor vehicles, tank
cars, and rolling stock) currently or formerly owned or operated by the Company
or any Subsidiary.

     1.20. "GAAP" means generally accepted United States accounting principles,
applied on a basis consistent with the basis on which the financial statements
referred to in Section 3.4. were prepared.

     1.21. "GOVERNMENTAL AUTHORIZATION" means any approval, consent, license,
permit, waiver, or other authorization issued, granted, given, or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.

     1.22. "GOVERNMENTAL BODY" means any national, state or municipal or other
local government, state or municipal or other local governmental body, any
subdivision, agency, commission or authority thereof, or any quasi-governmental
or private body exercising any regulatory or taxing authority thereunder.

     1.23. "HSR ACT" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, 15 U.S.C. sec. 18a, et seq.

                                       A-3
<PAGE>   8

     1.24. "IRS" means the United States Internal Revenue Service or any
successor agency, and, to the extent relevant, the United States Department of
the Treasury.

     1.25. "KNOWLEDGE" means an individual will be deemed to have "Knowledge" of
a particular fact or other matter if such individual is actually aware of such
fact or other matter, or a prudent individual given his position with the
Company could be expected to discover or otherwise become aware of such fact or
other matter. A Person (other than an individual) will be deemed to have
"Knowledge" of a particular fact or other matter if any individual who is
serving or has served within the last five (5) years as a director, executive,
officer, partner, executor or trustee of such Person (or in any similar
capacity) has, or at any time had, Knowledge of such fact or other matter.

     1.26. "LEGAL REQUIREMENT" means any federal, state, local, municipal or
other administrative order, constitution, law, ordinance, principle of common
law, regulation, statute, or treaty.

     1.27. "ORDER" means any award, decision, injunction, judgment, order,
ruling or verdict entered, issued, made or rendered by any court, administrative
agency or other Governmental Body or by any arbitrator.

     1.28. "ORDINARY COURSE OF BUSINESS" means an action taken by a Person will
be deemed to have been taken in the "Ordinary Course of Business" only if such
action is consistent with the past practices of such Person and is taken in the
ordinary course of the normal day-to-day operations of such Person. In the case
of Company, the term "Ordinary Course of Business" shall include the changes in
the Company's operations since December 21, 1999 taken at the specific request
of Parent, including, but not limited to: (i) Company's cessation of marketing
and selling of it's Computer Age Dentist software product; (ii) Company's
compensating sales personnel who are selling the PracticeWorks product; (iii)
Company's termination of approximately thirty-five (35) employees and (iv) the
other changes in Company's business resulting therefrom as disclosed in the
reports filed by the Company under the Exchange Act.

     1.29. "ORGANIZATIONAL DOCUMENTS" means (i) the Articles of Incorporation
and the Bylaws of a corporation; (ii) any charter or similar document adopted or
filed in connection with the creation, formation, or organization of a Person
and (iii) any amendment to any of the foregoing.

     1.30. "PARENT DISCLOSURE SCHEDULE" is defined in this Agreement in Section
4.

     1.31. "PARENT MATERIAL ADVERSE EFFECT" means a material adverse effect on
the financial condition, results of operation, business or properties of the
Parent and all of it subsidiaries taken as a whole.

     1.32. "PERSON" means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.

     1.33. "PLAN" as defined in Section 3.13.A. of this Agreement.

     1.34. "PROCEEDING" means any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Body or arbitrator.

                                       A-4
<PAGE>   9

     1.35. "RELATED PERSON" means with respect to a particular individual:

          A. Each other member of such individual's Family;

          B. Any Person that is directly or indirectly controlled by such
     individual or one (1) or more members of such individual's Family;

          C. Any Person in which such individual or members of such individual's
     Family hold (individually or in the aggregate) a Material Interest; and

          D. Any Person with respect to which such individual or one (1) or more
     members of such individual's Family serves as a director, officer, partner,
     executor, or trustee (or in a similar capacity).

          With respect to a specified Person other than an individual:

          A. Any Person that directly or indirectly controls, is directly or
     indirectly controlled by, or is directly or indirectly under common control
     with such specified Person;

          B. Any Person that holds a Material Interest in such specified Person;

          C. Each Person that serves as a director, officer, partner, executor,
     or trustee of such specified Person (or in a similar capacity);

          D. Any Person in which such specified Person holds a Material
     Interest;

          E. Any Person with respect to which such specified Person serves as a
     general partner or a trustee (or in a similar capacity); and

          F. Any Related Person of any individual described in clause B. or C.

          For purposes of this definition, (i) the "Family" of an individual
     includes (1) the individual's spouse and (2) any other natural person who
     is related to the individual or the individual's spouse within the second
     degree and (ii) "Material Interest" means direct or indirect beneficial
     ownership (as defined in Rule 13d-3 under the Securities Exchange Act of
     1934) of voting securities or other voting interests representing at least
     five percent (5%) of the outstanding voting power of a Person or equity
     securities or other equity interests representing at least five percent
     (5%) of the outstanding equity securities or equity interests in a Person.

     1.36. "REPRESENTATIVE" means with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor, or other representative
of such Person, including legal counsel, accountants, and financial advisors.

     1.37. "SECURITIES ACT" means the Securities Act of 1933 or any successor
law, and regulations and rules issued pursuant to that Act or any successor law.

     1.38. "SUBSIDIARY" shall mean Computer Age Dentist, Inc., a California
corporation.

     1.39. "TAX RETURNS" means any return, report, information return or other
document (including any related or supporting information) filed or required to
be filed with any Governmental Body in connection with the determination,
assessment or collection of any Taxes or the administration of any laws,
regulations or administrative requirements relating to any Taxes.

                                       A-5
<PAGE>   10

     1.40. "TAXES" means all taxes, charges, fees, levies, interest, penalties,
additions to tax or other assessments, including, but not limited to, income,
excise, property, sales, use, value added and franchise taxes and customs
duties, imposed by any Governmental Body and any payments with respect thereto
required under any tax-sharing agreement.

     1.41. "THREATENED" means a claim, Proceeding, dispute, action, or other
matter will be deemed to have been "Threatened" if any demand or statement has
been made (orally or in writing) or any notice has been given (orally or in
writing), or any other event has occurred or any other circumstances exist, that
would lead a prudent Person to conclude that such a claim, Proceeding, dispute,
action or other matter is likely to be asserted, commenced, taken or otherwise
pursued in the future.

2. MERGER.

     2.1. THE MERGER.  At the Effective Time and subject to and upon the terms
and conditions of this Agreement, Merger Sub shall be merged with and into
Company (the "Merger"), the separate corporate existence of Merger Sub shall
cease and Company shall continue as the surviving corporation under the
corporate name it possesses immediately prior to the Effective Time. Company as
the surviving corporation after the Merger is sometimes hereinafter referred to
as the "Surviving Corporation."

     2.2. EFFECTIVE TIME; CLOSING.  Subject to the provisions of this Agreement,
the parties hereto shall cause the Merger to be consummated by filing Articles
of Merger with the Secretary of State of the State of Colorado in accordance
with the relevant provisions of Colorado Law (the "Articles of Merger") (the
time of such filing (or such later time as may be agreed in writing by Company
and Parent and specified in the Articles of Merger) being the "Effective Time")
as soon as practicable on or after the Closing Date (as herein defined). The
closing of the Merger (the "Closing") shall take place at the offices of Morris,
Manning & Martin, L.L.P., 1600 Atlanta Financial Center, 3343 Peachtree Road,
N.E., Atlanta, Georgia 30326, at a time and date to be specified by the parties,
which shall be no later than the second (2nd) business day after the
satisfaction or waiver of the conditions set forth in Section 7., or at such
other time, date and location as the parties hereto agree in writing (the
"Closing Date").

     2.3. EFFECT OF THE MERGER.  At the Effective Time, the effect of the Merger
shall be as provided in this Agreement and the applicable provisions of Colorado
Law. Without limiting the generality of the foregoing, and subject thereto, at
the Effective Time all the property, rights, privileges, powers and franchises
of Company and Merger Sub shall vest in the Surviving Corporation, and all
debts, liabilities and duties of Company and Merger Sub shall become the debts,
liabilities and duties of the Surviving Corporation.

     2.4. ARTICLES OF INCORPORATION; BYLAWS; DIRECTORS AND OFFICERS.  At the
Effective Time, the Articles of Incorporation of Company, as in effect
immediately prior to the Effective Time, shall be the Articles of Incorporation
of the Surviving Corporation and thereafter shall continue to be its Articles of
Incorporation (until amended as provided under Colorado Law).

     The Bylaws of Company, as in effect immediately prior to the Effective
Time, shall be the Bylaws of the Surviving Corporation and thereafter shall
continue to be its bylaws (until amended as provided therein and under Colorado
Law).

     The initial directors and officers of the Surviving Corporation shall be
the directors and the officers of Merger Sub who are serving in such capacities
immediately prior to the

                                       A-6
<PAGE>   11

Effective Time, and such directors and officers shall continue to serve as the
directors and officers of the Surviving Corporation in accordance with the
bylaws of the Surviving Corporation.

     2.5. EFFECT ON CAPITAL STOCK.  Subject to the terms and conditions of this
Agreement, at the Effective Time, by virtue of the Merger and without any action
on the part of Merger Sub, Company or the holders of any of the following
securities, the following shall occur:

     A. CONVERSION OF COMPANY COMMON STOCK.  Each share of common stock, $.001
par value per share, of Company (the "Company Common Stock") issued and
outstanding immediately prior to the Effective Time, other than any shares of
Company Common Stock to be canceled pursuant to Section 2.5.B. and any
Dissenting Shares (as defined and to the extent provided in Section 2.5.), will
be canceled and extinguished and automatically converted (subject to Section
2.5.F.) into the right to receive (i) .06873 of a share, unless adjusted as
provided for herein, of Parent Common Stock ("Common Exchange Ratio") and (ii)
0.07558 of a share of Parent Preferred Stock, such shares to be represented by
depository receipts representing 0.100 per share of Parent Preferred Stock
rounded up to the nearest 1/100th share of Parent Preferred Stock. When used
herein unless the context otherwise requires, the term "Parent Preferred Stock"
also includes the depository receipts.

     B. CANCELLATION OF COMPANY-OWNED STOCK.  Each share of Company Common Stock
held by Company or any direct or indirect wholly-owned subsidiary of Company
immediately prior to the Effective Time shall be canceled and extinguished
without any conversion thereof.

     C. WARRANTS.  All warrants to purchase Company Common Stock (collectively,
the "Warrants") then outstanding shall be terminated and replaced with new
warrants to purchase Parent Common Stock in the manner described in Section 6.4.

     D. STOCK OPTIONS.  All options (collectively, the "Options") to purchase
Company Common Stock then outstanding under the Company's stock option plans
referenced in SCHEDULE 3.3 (collectively, the "Company Stock Option Plans")
shall be terminated and replaced with new options to purchase Parent Common
Stock in the manner described in Section 6.4.

     E. ADJUSTMENTS TO CONVERSION.  The conversion rights of holders of Company
Common Stock shall be adjusted to reflect fully the effect of any stock split,
reverse split, stock dividend (including any dividend or distribution of
securities convertible into Company Common Stock, Parent Common Stock or Parent
Preferred Stock), reorganization, recapitalization or other like change with
respect to Company Common Stock, Parent Common Stock or Parent Preferred Stock
occurring after the date hereof and prior to the Effective Time.

     F. FRACTIONAL SHARES.  As of the Effective Time, all such shares of Company
Common Stock shall no longer be outstanding and shall automatically be canceled
and retired and shall cease to exist, and each certificate previously
representing any such shares shall thereafter represent only the right to
receive a certificate representing the shares of Parent Common Stock and Parent
Preferred Stock into which such Company Common Stock was converted in the
Merger. The holders of such certificates previously evidencing such shares of
the Company Common Stock outstanding immediately prior to the Effective Time
shall cease to have any rights with respect to such shares of the Company

                                       A-7
<PAGE>   12

Common Stock as of the Effective Time except as otherwise provided herein or by
law. Such certificates previously representing shares of the Company Common
Stock shall be exchanged for certificates representing whole shares of Parent
Common Stock and Parent Preferred Stock issued in consideration therefor upon
the surrender of such certificates in accordance with the provisions of Section
2.6., without interest. No fractional shares of Parent Common Stock or Parent
Preferred Stock will be issued in connection with the Merger, but in lieu
thereof, the holder of any shares of Company Common Stock who would otherwise be
entitled to receive (i) a fraction of a share of Parent Common Stock shall
receive cash in an amount equal to the value of such fractional shares, which
shall be equal to the fraction of a share of Parent Common Stock that would
otherwise be issued multiplied by Four and 93/100 Dollars ($4.93) or (ii) a
depository receipt representing less than 0.10 of a share of Parent Preferred
Stock shall receive cash in an amount equal to the value of such depository
receipt, which shall be equal to the fraction of a share of Parent Preferred
Stock less than 0.10 share that would otherwise be issued multiplied by Five and
44/100 Dollars ($5.44).

     G. CONDITIONAL STOCK.  If any shares of Company Common Stock outstanding
immediately prior to the Effective Time are unvested or are subject to a
repurchase option, risk of forfeiture or other condition under any applicable
restricted stock purchase agreement or other agreement with the Company, then
the shares of Parent Common Stock and Parent Preferred Stock issued in exchange
for such shares of Company Common Stock will also be unvested and subject to the
same repurchase option, risk of forfeiture or other condition, and the
certificates representing such shares of Parent Common Stock and Parent
Preferred Stock may accordingly be marked with appropriate legends. The Company
shall take all action that may be necessary to ensure that, from and after the
Effective Time, Parent is entitled to exercise any such repurchase option or
other right set forth in any such restricted stock purchase agreement or other
agreement.

     H. ODD LOT CASH-OUT.  Notwithstanding Sections 2.5.A. and 2.5.F. above, any
holder, owning in the aggregate, one hundred (100) or fewer shares of Company
Common Stock ("Odd Lot Shareholder"), shall instead receive cash in an amount
equal to 75/100 Dollars ($.75) per share of Company Common Stock held by such
Odd Lot Shareholder.

     I. DISSENTERS RIGHTS.

     (i) Notwithstanding any provision of this Agreement to the contrary, any
shares of Company Common Stock held by a holder who has demanded and perfected
appraisal or dissenters' rights for such shares in accordance with Colorado Law
and who, as of the Effective Time, has not effectively withdrawn or lost such
appraisal or dissenters' rights (the "Dissenting Shares") shall not be converted
into or represent a right to receive the consideration set forth pursuant to
this Section 2.5., but the holder thereof shall only be entitled to such rights
as are granted by Colorado Law.

     (ii) Notwithstanding the provisions of subsection (i), if any holder of
shares of Company Common Stock who demands appraisal of such shares under
Colorado Law shall effectively withdraw or lose (through failure to perfect or
otherwise) the right to appraisal, then, as of the later of the Effective Time
and the occurrence of such event, such holder's shares shall automatically be
converted into and represent only the right to receive Parent Common Stock,
Parent Preferred Stock and payment for any fractional share as provided in this
Section 2.5., without interest thereon, upon surrender of the certificate
representing such shares.

                                       A-8
<PAGE>   13

     (iii) The Company shall give Parent (1) prompt notice of any written
demands for appraisal of any shares of Company Common Stock, withdrawals of such
demands, and any other instruments served pursuant to Colorado Law and received
by the Company and (2) the opportunity to participate in all negotiations and
proceedings with respect to demands for appraisal under Colorado Law. The
Company shall not, except with the prior written consent of Parent, voluntarily
make any payment with respect to any demands for appraisal of capital stock of
the Company or offer to settle or settle any such demands.

     2.6. EXCHANGE OF CERTIFICATES.

     A. EXCHANGE AGENT; PARENT TO PROVIDE COMMON STOCK.  Promptly after the
Effective Time, Parent shall supply, or shall cause to be supplied, to or for
the account of a bank or trust company designated by Parent (the "Exchange
Agent"), for exchange in accordance with this Section 2.6., through the Exchange
Agent, certificates evidencing the Parent Common Stock and Parent Preferred
Stock issuable pursuant to Section 2.5. in exchange for outstanding shares of
Company Common Stock, and cash in an amount sufficient for payment in lieu of
fractional shares pursuant to Section 2.5.F. and any dividends or other
distributions to which holders of shares of Company Common Stock may be entitled
pursuant to Section 2.6.C.

     B. EXCHANGE PROCEDURES.  As soon as reasonably practicable after the
Effective Time, Parent shall cause the Exchange Agent to mail to each holder of
record (as of the Effective Time) of a certificate or certificates which
immediately prior to the Effective Time evidenced outstanding shares of Company
Common Stock (the "Certificates") whose shares were converted into shares of
Parent Common Stock and Parent Preferred Stock pursuant to Section 2.5., cash in
lieu of any fractional shares pursuant to Section 2.5.F. and any dividends or
other distributions to which holders of shares of Company Common Stock may be
entitled pursuant to Section 2.6.C. (i) a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the
Certificates shall pass, only upon proper delivery of the Certificates to the
Exchange Agent and shall be in such form and have such other provisions as
Parent may reasonably specify) and (ii) instructions for use in effecting the
surrender of the Certificates in exchange for certificates evidencing shares of
Parent Common Stock and Parent Preferred Stock, cash in lieu of any fractional
shares pursuant to Section 2.5.F. and any dividends or other distributions
pursuant to Section 2.6.C. Upon surrender of a Certificate for cancellation to
the Exchange Agent or to such other agent or agents as may be appointed by
Parent, together with such letter of transmittal, duly completed and validly
executed in accordance with the instructions thereto, and such other customary
documents as may be required pursuant to such instructions, the holder of such
Certificate shall be entitled to receive in exchange thereof (i) certificates
evidencing that number of whole shares of Parent Common Stock and Parent
Preferred Stock into which such holder's shares of Company Common Stock were
converted at the Effective Time; (ii) any dividends or other distributions to
which such holder is entitled pursuant to Section 2.6.C. and (iii) cash in lieu
of fractional shares to which such holder is in entitled pursuant to Section
2.5.F., and the Certificate so surrendered shall forthwith be canceled. In the
event of a transfer of ownership of shares of Company Common Stock which is not
registered in the transfer records of the Company as of the Effective Time,
Parent Common Stock and Parent Preferred Stock and cash may be issued and paid
in accordance with this Section 2. to a transferee if the Certificate evidencing
such shares is presented to the Exchange Agent, accompanied by all documents
required to evidence and effect such transfer pursuant to this Section 2.6. and
by evidence that any applicable stock transfer taxes have been paid. Until so
surrendered, each outstanding Certificate that, prior to the Effective

                                       A-9
<PAGE>   14

Time, represented shares of Company Common Stock will be deemed from and after
the Effective Time, for all corporate purposes, other than the payment of
dividends, to evidence only the ownership of the number of full shares of Parent
Common Stock and Parent Preferred Stock into which such shares of Company Common
Stock shall have been so converted and the right to receive an amount in cash in
lieu of the issuance of any fractional shares in accordance with Section 2.5.F.
and any dividends or distributions payable pursuant to Section 2.6.C.

     C. DISTRIBUTIONS WITH RESPECT TO UNEXCHANGED SHARES.  No dividends or other
distributions declared or made after the Effective Time, with respect to Parent
Common Stock or Parent Preferred Stock with a record date after the Effective
Time, shall be paid to the holder of any unsurrendered Certificate until the
holder of such Certificate shall surrender such Certificate or comply with the
lost instrument procedure set forth in Section 2.7. Subject to applicable law,
following surrender of any such Certificate, there shall be paid to the record
holder of the certificates representing whole shares of Parent Common Stock and
Parent Preferred Stock issued in exchange therefor, without interest, at the
time of such surrender, the amount of dividends or other distributions with a
record date after the Effective Time theretofore paid with respect to such whole
shares of Parent Common Stock and Parent Preferred Stock.

     D. TRANSFERS OF OWNERSHIP.  If any certificate for shares of Parent Common
Stock or Parent Preferred Stock is to be issued in a name other than that in
which the Certificate surrendered in exchange therefor is registered, it will be
a condition of the issuance thereof that the Certificate so surrendered will be
properly endorsed and otherwise in proper form for transfer and that the person
requesting such exchange will have paid to Parent or any person designated by it
any transfer or other taxes required by reason of the issuance of a certificate
for shares of Parent Common Stock or Parent Preferred Stock in any name other
than that of the registered holder of the Certificate surrendered, or
established to the satisfaction of Parent or any agent designated by it that
such tax has been paid or is not payable.

     E. REQUIRED WITHHOLDING.  Each of the Exchange Agent, Parent and the
Surviving Corporation shall be entitled to deduct and withhold from any
consideration payable or otherwise deliverable pursuant to this Agreement to any
holder or former holder of Company Common Stock such amounts as may be required
to be deducted or withheld therefrom under the Code or under any provision of
state, local or foreign tax law or under any other applicable legal requirement.
To the extent such amounts are so deducted or withheld, such amounts shall be
treated for all purposes under this Agreement as having been paid to the person
to whom such amounts would otherwise have been paid.

     F. NO LIABILITY.  Notwithstanding anything to the contrary in this Section
2.6., neither the Exchange Agent, Parent, Merger Sub nor the Company shall be
liable to any holder of shares of Company Common Stock, Parent Common Stock or
Parent Preferred Stock for any amount properly paid to a public official
pursuant to any applicable abandoned property, escheat or similar law.

     2.7. LOST, STOLEN OR DESTROYED CERTIFICATES.  In the event any Certificates
shall have been lost, stolen or destroyed, the Exchange Agent shall issue in
exchange for such lost, stolen or destroyed Certificates, upon the making of an
affidavit of that fact by the holder thereof, such shares of Company Common
Stock as may be required pursuant to Section 2.5.; provided, however, that
Parent may, in its sole discretion and as a condition precedent to the issuance
thereof, require the owner of such lost, stolen or destroyed Certificates to
deliver a bond in such sum as it may reasonably direct as indemnity against

                                      A-10
<PAGE>   15

any claim that may be made against Parent or the Exchange Agent with respect to
the Certificates alleged to have been lost, stolen or destroyed.

     2.8. NO FURTHER OWNERSHIP RIGHTS IN COMPANY COMMON STOCK.  All shares of
Parent Common Stock and Parent Preferred Stock issued upon the surrender for
exchange of shares of Company Common Stock in accordance with the terms hereof
(including any cash paid in respect thereof pursuant to Sections 2.5.F. and
2.6.C.) shall be deemed to have been issued in full satisfaction of all rights
pertaining to such shares of Company Common Stock, and there shall be no further
registration of transfers on the records of the Surviving Corporation of shares
of Company Common Stock which were outstanding immediately prior to the
Effective Time. If, after the Effective Time, certificates are presented to the
Surviving Corporation for any reason, they shall be cancelled and exchanged as
provided in this Section 2.

     2.9. ADDITIONAL ACTIONS.  If, at any time after the Effective Time, the
Surviving Corporation or Parent shall consider or be advised that any deeds,
bills of sale, assignments, assurances or any other actions or things are
necessary or desirable to vest, perfect or confirm of record or otherwise in the
Surviving Corporation its right, title or interest in, to or under any of the
rights, properties or assets of the Company or otherwise to carry out the
purposes of this Agreement, the officers and directors of the Surviving
Corporation shall be authorized to execute and deliver, in the name and on
behalf of the Company, all such deeds, bills of sale, assignments and assurances
and to take and do, in the name and on behalf of the Company, all such other
actions and things as may be necessary or desirable to vest, perfect or confirm
any and all right, title and interest in, to and under such rights, properties
or assets in the Surviving Corporation or otherwise to carry out the purposes of
this Agreement.

     2.10. TAX AND ACCOUNTING CONSEQUENCES.  It is intended by the parties
hereto that the Merger shall constitute a reorganization within the meaning of
Section 368 of the Code. The parties hereto adopt this Agreement as a "plan of
reorganization" within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the
United States Income Tax Regulations.

     2.11. AUTOMATIC CONVERSION OF PARENT PREFERRED STOCK INTO PRACTICEWORKS
PREFERRED STOCK.  All Parent Preferred Stock issued pursuant to Section 2.5.
shall be subject to automatic exchange into shares of PracticeWorks Preferred
Stock upon a spin-off of Parent's PracticeWorks division as further described in
EXHIBIT B hereto (the "PracticeWorks Spin-off"). The PracticeWorks Spin-off,
while expected, is at InfoCure's discretion and subject to, among other things,
appropriate consents (including consents of senior lenders) and no guarantee is
made hereunder that the PracticeWorks Spin-off will occur.

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     As of September 25, 2000 and as of the Closing Date, Company represents and
warrants to Merger Sub and Parent, subject to such exceptions as are
specifically disclosed in writing in the disclosure schedule and referencing a
specific representation supplied by the Company to Merger Sub and Parent dated
as of September 25, 2000 and certified by a duly authorized officer of Company
(the "Company Disclosure Schedule"), as follows:

     3.1. ORGANIZATION, GOOD STANDING, CORPORATE POWER AND SUBSIDIARIES.

     A. SCHEDULE 3.1.A of the Company Disclosure Schedule contains a complete
and accurate list of the Company and each Subsidiary's name, its jurisdiction of
incorporation, other jurisdictions in which it is authorized to do business.

                                      A-11
<PAGE>   16

     The Company and the Subsidiary are each a corporation duly organized,
validly existing, and in good standing under the laws of the jurisdiction in
which it is organized, with full corporate power and authority to conduct its
business as it is now being conducted and to own or use the properties and
assets that it purports to own or use.

     The Company and the Subsidiary are each duly qualified or licensed to do
business as a foreign corporation and is in good standing under the laws of each
state or other jurisdiction in which either the ownership or use of the
properties owned or used by it, or the nature of the activities conducted by it,
requires such qualification, except where the failure to be so qualified or
licensed would not result in a Company Material Adverse Effect.

     B. The Company and Subsidiary have delivered to Merger Sub copies of the
Organizational Documents of the Company and Subsidiary, as currently in effect.

     C. Neither Company nor Subsidiary has agreed nor is obligated to make nor
be bound by any Contract under which it may become obligated to make, any future
investment in or capital contribution to any other entity. Neither the Company
nor the Subsidiary owns, directly or indirectly, any equity or similar interest
convertible, exchangeable or exercisable for, any equity or similar interest in,
any corporation, partnership, joint venture or other business association or
entity.

     3.2. AUTHORITY; NO CONFLICT.

     A. The Company has all necessary corporate power and authority to execute
and deliver this Agreement and to perform its obligations hereunder and, subject
only to obtaining the approval of the shareholders of the Company of the Merger
(the "Shareholder Approval"), to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement by Company and the
consummation by Company of the transactions contemplated hereby have been duly
and validly approved by the Company Board of Directors, as required by
applicable law and the Company Board of Directors has, as of the date of this
Agreement, determined (i) that the Merger is advisable and fair to, and in the
best interests of Company and its shareholders and (ii) to recommend that the
shareholders of Company approve and adopt this Agreement and approve the Merger.

     This Agreement is, or when executed and delivered by the Company will be, a
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as to the effect, if any, of (i) applicable
bankruptcy and other similar laws affecting the rights of creditors generally
and (ii) rules of law governing specific performance, injunctive relief and
other equitable remedies.

     B. Except as set forth in SCHEDULE 3.2 of the Company Disclosure Schedule,
neither the execution and delivery of this Agreement by the Company nor, after
obtaining the Shareholder Approval, the consummation or performance of any of
the Contemplated Transactions will, directly or indirectly (with or without
notice or lapse of time):

          (i) Contravene, conflict with, or result in a violation of any
     provision of the Organizational Documents of the Company or the Subsidiary;

          (ii) Contravene, conflict with, or result in a violation of, or give
     any Governmental Body or, to the Knowledge of the Company, other Person the
     right to challenge any of the Contemplated Transactions or to exercise any
     remedy or obtain any relief under, any Legal Requirement or any Order to
     which the Company or the

                                      A-12
<PAGE>   17

     Subsidiary, or any of the assets owned or used by the Company or the
     Subsidiary, may be subject;

          (iii) Subject to the filing of the Articles of Merger with the
     Colorado Secretary of State, contravene, conflict with, or result in a
     violation of any of the terms or requirements of, or give any Governmental
     Body the right to revoke, withdraw, suspend, cancel, terminate, or modify,
     any Governmental Authorization that is held by the Company or the
     Subsidiary or that otherwise relates to the business of, or any of the
     assets owned or used by the Company or the Subsidiary;

          (iv) Cause the Company or the Subsidiary to become subject to, or to
     become liable for the payment of, any Tax;

          (v) Cause any of the assets owned by the Company or the Subsidiary to
     be reassessed or revalued by any taxing authority or other Governmental
     Body;

          (vi) Contravene, conflict with, or result in a violation or breach of
     any provision of, or give any Person the right to declare a default or
     exercise any remedy under, or to accelerate the maturity or performance of,
     or to cancel, terminate, or modify, any material Contract to which Company
     or the Subsidiary is a party or by which Company or the Subsidiary or its
     or any of their respective properties are bound or affected; or

          (vii) Result in the imposition or creation of any Encumbrance upon or
     with respect to any of the assets owned or used by the Company or the
     Subsidiary.

          C. Except as set forth in SCHEDULE 3.2 of the Company Disclosure
     Schedule and such other consents, authorizations, filings, approvals and
     registrations which, if not obtained or made, would not have a Company
     Material Adverse Effect or have a material adverse effect on the ability of
     the parties to consummate the Merger, the Company and the Subsidiary are
     not or will not be required to give any notice to or obtain any Consent
     from any Person in connection with the execution and delivery of this
     Agreement or the consummation or performance of any of the Contemplated
     Transactions.

     3.3. CAPITALIZATION.  The authorized capital stock of the Company consists
of (i) thirty million (30,000,000) shares of Company Common Stock, par value
$.001 per share and five million (5,000,000) shares of Preferred Stock, $.001
par value per share ("Company Preferred Stock"). At the close of business on
August 21, 2000 (i) thirteen million two hundred forty thousand sixty-six
(13,240,066) shares of Company Common Stock were issued and outstanding, all of
which are validly issued, fully paid and nonassessable; (ii) no shares of
Company Common Stock were held in treasury by Company or by any Subsidiary;
(iii) three million one hundred twenty-five thousand eight hundred thirty-seven
(3,125,837) shares of Company Common Stock were reserved for issuance upon the
exercise of outstanding options to purchase Company Common Stock under the
Company Stock Option Plans; (iv) one million three hundred forty-nine thousand
(1,349,000) shares of Company Common Stock were available for future grant under
the Company Stock Option Plans and (v) one hundred fifty thousand (150,000)
shares of Company Common Stock were reserved for future issuance upon conversion
of warrants of the Company. As of August 31, 2000, no shares of Company
Preferred Stock were issued or outstanding. SCHEDULE 3.3 of the Company
Disclosure Schedule sets forth the following information with respect to each
Option and Warrant (as defined in Section 6.4.) outstanding as of the date of
this Agreement: (i) the name and address of

                                      A-13
<PAGE>   18

the optionee or warrant holder; (ii) the particular plan pursuant to which such
Option was granted; (iii) the number of shares of Company Common Stock subject
to such Option or Warrant; (iv) the exercise price of such Option or Warrant;
(v) the date on which such Option or Warrant was granted; (vi) the applicable
vesting schedule and (vii) the date on which such Option or Warrant expires.
Company has made available to Parent accurate and complete copies of all stock
option plans pursuant to which the Company has granted such Options that are
currently outstanding and the form of all stock option agreements and
instruments evidencing such Options and Warrants. Except as set forth in
SCHEDULE 3.3, all shares of Company Common Stock subject to issuance as
aforesaid, upon issuance on the terms and conditions specified in the instrument
pursuant to which they are issuable, would be duly authorized, validly issued,
fully paid and nonassessable. There are no commitments or agreements of any
character to which the Company is bound obligating the Company to accelerate the
vesting of any Option as a result of the Merger. All outstanding shares of
Company Common Stock, all outstanding Options and Warrants, and all outstanding
shares of capital stock of Subsidiary have been issued and granted in compliance
with (i) all applicable securities laws and other applicable Legal Requirements
and (ii) all requirements set forth in applicable Contracts. Except for
securities Company owns free and clear of all Encumbrances, as of the date of
this Agreement, there are no equity securities, partnership interests or similar
ownership interests of any class of equity security of Subsidiary, or any
security exchangeable or convertible into or exercisable for such equity
securities, partnership interests or similar ownership interests, issued,
reserved for issuance or outstanding. Except as set forth in SCHEDULE 3.3, there
are no subscriptions, options, warrants, equity securities, partnership
interests or similar ownership interests, calls, rights (including preemptive
rights), commitments or agreements of any character to which Company or
Subsidiary is a party or by which it is bound obligating Company or Subsidiary
to issue, deliver or sell, or cause to be issued, delivered or sold, or
repurchase, redeem or otherwise acquire, or cause the repurchase, redemption or
acquisition of, any shares of capital stock, partnership interests or similar
ownership interest s of the Company or Subsidiary or obligating the Company or
Subsidiary to grant, extend, accelerate the vesting of or enter into any such
subscription, option, warrant, equity security, call, right, commitment or
agreement. As of the date of this Agreement, except as contemplated by this
Agreement and except as set forth in SCHEDULE 3.3, there are no registration
rights and there is no voting trust, proxy, rights plan, anti-takeover plan or
other agreement or understanding to which the Company or Subsidiary is a party
or by which they are bound with respect to any equity security of any class of
the Company or with respect to any equity security, partnership interest or
similar ownership interest of any class of Subsidiary. Stockholders of the
Company will not be entitled to dissenters' rights under applicable state law in
connection with the Merger.

     3.4. SEC FILINGS; FINANCIAL STATEMENTS.

     A. Company has made available to Parent a correct and complete copy of each
report, schedule, registration statement and definitive proxy statement filed by
Company with the Securities and Exchange Commission ("SEC") since September 1,
1998 (the "Company SEC Reports"), which are all the forms, reports and documents
required to be filed by Company with the SEC since September 1, 1998. The
Company SEC Reports (i) were prepared in accordance with the requirements of the
Securities Act or the Exchange Act, as the case may be and (ii) did not at the
time they were filed (and if amended or superseded by a filing prior to the date
of this Agreement then on the date of such filing) contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light

                                      A-14
<PAGE>   19

of the circumstances under which they were made, not misleading. None of
Company's Subsidiaries is required to file any reports or other documents with
the SEC.

     B. Each set of consolidated financial statements (including, in each case,
any related notes thereto) contained in the Company SEC Reports was prepared in
accordance with GAAP (except as may be indicated in the notes thereto or, in the
case of unaudited statements, do not contain footnotes as permitted by Form 10-Q
of the Exchange Act) and each fairly presents the consolidated financial
position of Company and the Subsidiary at the respective dates thereof and the
consolidated results of its operations and cash flows for the periods indicated,
except that the unaudited interim financial statements were or are subject to
normal adjustments which were not or are not expected to be material in amount.

     C. Company has previously furnished to Parent a complete and correct copy
of any amendments or modifications, which have not yet been filed with the SEC,
but which are required to be filed, to agreements, documents or other
instruments which previously had been filed by Company with the SEC pursuant to
the Securities Act or the Exchange Act.

     3.5. BOOKS AND RECORDS.  The books of account, stock record books, and
other records of the Company and the Subsidiary, all of which have been made
available to Merger Sub and Parent, are complete and correct in all material
respects.

     The minute books of the Company and the Subsidiary made available to
counsel for Parent are the only minute books of the Company and the Subsidiary
and contain a reasonably accurate summary, in all material respects, of all
meetings held of, and corporate action taken by, the stockholders, the Board of
Directors and committees of the Board of Directors of Company and the Subsidiary
since the time of its incorporation. At the Closing, all of those books and
records will be in the possession of the Company.

     3.6. REAL PROPERTY INTERESTS.  Neither the Company nor the Subsidiary owns
real property. SCHEDULE 3.6 of the Company Disclosure Schedule contains a
complete and accurate list of all leaseholds or other interests in real property
of the Company and the Subsidiary. The Company has delivered or made available
to Merger Sub and Parent copies of the lease agreements and other instruments by
which the Company and the Subsidiary acquired such leasehold and other real
property interests.

     3.7. CONDITION AND SUFFICIENCY OF ASSETS.  Except as set forth on SCHEDULE
3.7 of the Company Disclosure Schedule, to the Company's Knowledge, the
buildings, plants, structures and equipment of the Company and the Subsidiary
are structurally sound, are in good operating condition and repair, subject to
normal wear and tear, and are adequate for the uses to which they are being put.

     3.8. ACCOUNTS RECEIVABLE.  All accounts receivable of the Company and the
Subsidiary that are reflected on the Financial Statements or on the accounting
records of the Company as of the Closing Date (collectively, the "Accounts
Receivable") represent or will represent valid obligations arising from sales
actually made or services actually performed in the Ordinary Course of Business.

     Unless paid prior to the Closing Date, the Accounts Receivable are or will
be as of the Closing Date current and collectible net of the respective reserves
shown on the Financial Statements or on the accounting records of the Company
and the Subsidiary as of the Closing Date (which reserves are adequate and
calculated consistent with past practice).

                                      A-15
<PAGE>   20

     Subject to such reserves, each of the Accounts Receivable either has been
or will be collected in full, without any set-off, within one hundred fifty
(150) days on which it first becomes due and payable. To the Knowledge of the
Company, there is no contest, claim, or right of set-off, other than returns in
the Ordinary Course of Business, under any material Contract with any obligor of
an Accounts Receivable relating to the amount or validity of such Accounts
Receivable.

     SCHEDULE 3.8 of the Company Disclosure Schedule contains a complete and
accurate list of all Accounts Receivable as of September 25, 2000, which list
sets forth the aging of such Accounts Receivable.

     3.9. INVENTORY.  All inventory of the Company and the Subsidiary, whether
or not reflected in the Financial Statements, consists of a quality and quantity
usable and salable in the Ordinary Course of Business, except for obsolete items
and items of below-standard quality, all of which have been or will be written
off or written down to net realizable value in the Financial Statements or on
the accounting records of the Company and the Subsidiary as of the Closing Date,
as the case may be.

     3.10. NO UNDISCLOSED LIABILITIES.  Except as set forth in SCHEDULE 3.10 of
the Company Disclosure Schedule, neither the Company nor the Subsidiary have any
liabilities or obligations of any nature (whether known or unknown and whether
absolute, accrued, contingent or otherwise) except for liabilities or
obligations reflected or reserved against in the Financial Statements and not
heretofore paid or discharged and current liabilities incurred in the Ordinary
Course of Business since June 30, 1999.

     3.11. TAXES.

     A. Except as set forth on SCHEDULE 3.11 to the Company Disclosure Schedule,
the Company and the Subsidiary have timely filed all Tax Returns that they were
required to file. All such Tax Returns were correct and complete in all material
respects. The Company and the Subsidiary have paid in full or made adequate
provision by the establishment of reserves for all Taxes which have become due
or which are attributable to the conduct of the Company's and the Subsidiary's
business prior to August 31, 2000. The Company and the Subsidiary will continue
to make adequate provision for all such Taxes for all periods through the
Closing Date. The Company and the Subsidiary are not the beneficiaries of any
extension of time within which to file any Tax Return.

     Except as set forth on SCHEDULE 3.11, the Company has no Knowledge of any
Tax deficiency proposed or Threatened against the Company or the Subsidiary.
There are no Tax liens upon any property or assets of the Company or the
Subsidiary to secure the payment of any delinquent Taxes.

     Except as set forth on SCHEDULE 3.11, the Company and the Subsidiary have
made all payments of estimated Taxes when due in amounts sufficient to avoid the
imposition of any penalty.

     B. Except as set forth on SCHEDULE 3.11, all Taxes and other assessments
and levies which the Company or the Subsidiary were required by law to withhold
or to collect have been duly withheld and collected, and have been paid over to
the proper Governmental Body.

     C. Except as set forth in SCHEDULE 3.11, the Tax Returns of the Company and
the Subsidiary have never been audited by the IRS or other Governmental Body,
nor are any such audits in process. Except as set forth in SCHEDULE 3.11, there
are no outstanding

                                      A-16
<PAGE>   21

agreements or waivers extending the statute of limitations applicable to any Tax
Returns of the Company or the Subsidiary for any period.

     D. For federal income tax purposes, the Company and the Subsidiary have a
taxable year ending on September 30 in each year.

     E. The Company has not filed a consent under Code sec. 341(f) concerning
collapsible corporations. The Company and the Subsidiary have not made any
material payments, are not obligated to make any material payments, and are not
a party to any agreement that under any circumstances could obligate it to make
any material payments that will not be deductible under Code sec. 280G. The
Company and the Subsidiary have not been a United States real property holding
corporation within the meaning of Code sec. 897(c)(2) during the applicable
period specified in Code sec. 897(c)(1)(A)(ii). The Company and the Subsidiary
are not a party to any Tax allocation or sharing agreement. Except with respect
to the Subsidiary, the Company (i) has not been a member of an affiliated group
filing a consolidated federal income Tax Return and (ii) has no liability for
the Taxes of any Person under Reg. sec. 1.1502-6 (or any similar provision of
state, local, or foreign law), as a transferee or successor, by contract, or
otherwise.

     F. The Company's and the Subsidiary's Tax basis in its assets for purposes
of determining its future amortization, depreciation and other federal income
tax deductions is accurately reflected on the Company's and the Subsidiary's
books and records in all material respects.

     3.12. NO COMPANY MATERIAL ADVERSE EFFECT.  Since June 30, 1999, there has
not been any Company Material Adverse Effect, and to the Company's Knowledge, no
event has occurred and no circumstance exists that may result in a Company
Material Adverse Effect other than with respect to general domestic or
international economic conditions and other than the changes in the Company's
financial condition, business and operations as disclosed in Company's reports
filed under the Exchange Act, which changes are continuing to date.

     3.13. EMPLOYEE BENEFITS MATTERS.

     A. SCHEDULE 3.13.1 lists all plans, programs, and similar agreements,
commitments or arrangements (including, but not limited to, any bonus, profit
sharing, pension, deferred compensation, stock option, stock purchase, fringe
benefit, severance, post-retirement, scholarship, tuition reimbursement,
disability, sick leave, vacation, commission, retention or other arrangements),
whether oral or written, sponsored or maintained by or on behalf of, or to which
contributions are or were made by, Company and/or any ERISA Affiliate within the
last seven (7) years that provide or provided benefits, compensation or other
remuneration to, or for the benefit of, current or former employees of Company
and/or any ERISA Affiliate or any or any other individual who provides services
to the Company and/or any ERISA Affiliate (including, but not limited to, any
shareholder, officer, director, employee or consultant), or any spouse, child or
other dependent of such current or former employee or other individual ("Plan"
or "Plans"). Except as disclosed on SCHEDULE 3.13.1, there are no other benefits
to which any current or former employees of Company and/or any ERISA Affiliate
or any or any other individual who provides services to the Company and/or any
ERISA Affiliate (including, but not limited to, any shareholder, officer,
director, employee or consultant), or any spouse, child or other dependent of
such current or former employee or other individual is entitled or for which the
Company and/or any ERISA Affiliate has any obligation. Except as set forth on

                                      A-17
<PAGE>   22

SCHEDULE 3.13.1, only current employees of Company participate in the Plans,
except as required by I.R.C. sec. 4980B and/or ERISA sec.sec. 601-609. Copies of
all Plans and, to the extent applicable, all related trust agreements, actuarial
reports, and valuations for the most recent three (3) years, all summary plan
descriptions, prospectuses, Annual Report Form 5500's or similar forms (and
attachments thereto) for the most recent three (3) years, all Internal Revenue
Service determination letters, and any related documents requested by Buyer,
including all amendments, modifications and supplements thereto, all material
employee and/or participant communications relating to each such Plan, and all
insurance contracts, administrative services agreements or contracts, have been
delivered to Buyer, and all of the same are true, correct and complete.

     B. With respect to each Plan to the extent applicable:

          (i) No litigation or administrative or other proceeding or
     investigation, claim, lawsuit, arbitration or other action is pending or
     threatened involving such Plan or any administrator, fiduciary, employee,
     contributing employer, contractor or agent of such Plan, other than routine
     claims for benefits in the ordinary course for such Plan.

          (ii) Such Plan has been administered and operated in compliance with,
     and has been amended to comply with, all applicable laws, rules, and
     regulations, including, without limitation, ERISA, the Code, and the
     regulations issued under ERISA and the Code.

          (iii) Company and ERISA Affiliates have made and as of the Closing
     Date will have made or accrued, all payments and contributions required, or
     reasonably expected to be required, to be made under the provisions of such
     Plan or required to be made under applicable laws, rules and regulations,
     with respect to any period prior to the Closing Date, such amounts to be
     determined using the ongoing actuarial and funding assumptions of the Plan
     if applicable.

          (iv) Such Plan is fully funded in an amount sufficient to pay all
     liabilities (whether or not vested) accrued (including liabilities and
     obligations for health care, life insurance and other benefits after
     termination of employment) and claims incurred through August 31, 2000.

          (v) On the Closing Date such Plan will be fully funded in an amount
     sufficient to pay all liabilities (whether or not vested) accrued as of the
     Closing Date (including liabilities and obligations for health care, life
     insurance and other benefits after termination of employment) and claims
     incurred as of the Closing Date, or adequate reserves will be set up on
     Company's books and records, or paid-up insurance will be provided,
     therefor.

          (vi) Such Plan has been administrated and operated only in the
     ordinary and usual course and in accordance with its terms, and there has
     not been in the four (4) years prior hereto any increase in the liabilities
     of such Plan beyond increases typically experienced as a result of changes
     in the workforce.

          (vii) Such Plan is not a multiemployer plan (as defined in ERISA
     sec. 3(37) or 4001(a)(3)), is not a single-employer plan (as defined in
     ERISA sec. 4001(a)(15)), and is not a defined benefit plan (as defined in
     ERISA sec. 3(35)), and is not a plan maintained by more than one employer
     (within the meaning of Code sec. 413(c)).

          (viii) No Person has engaged in any "prohibited transaction" (as
     defined in ERISA sec. 406 or Code sec. 503(b) or 4975) with respect to such
     Plan on or prior to the

                                      A-18
<PAGE>   23

     Closing Date, and no Person who would be a fiduciary with respect to such
     Plan has breached any of his responsibilities or obligations imposed upon
     fiduciaries under Title I of ERISA which would subject Company or any ERISA
     Affiliate, or any Person whom the Company has an obligation to indemnify,
     to any liability.

          (ix) Such Plan contains provisions which allow additional benefits
     under the Plan to be discontinued at any time and for any reason, and which
     allow the Plan to be terminated (or the Company's participation in the Plan
     to be terminated) by the Company at any time and for any reason, and, if
     such Plan were terminated (or the Company's participation in such Plan were
     terminated) on or prior to the Closing Date, no additional liability would
     be incurred by the Company by such action.

          (x) All communications with respect to such Plan by any Person on or
     prior to the Closing Date have reflected accurately the documents and
     operations of such Plan, and no Person has, as of the Closing Date, any
     liability under any applicable law by reason of any communication or
     failure to communicate with respect to or in connection with such Plan.

          (xi) Such Plan does not provide benefits to any former employee, or
     any other Person who is not performing services for the Company, except as
     required by Code sec. 4980B and/or ERISA sec.sec. 601-609.

          (xii) No liability to the Pension Benefit Guaranty Corporation
     ("PBGC") has been incurred or will be incurred as of the Closing Date by
     Company or any ERISA Affiliate, except for PBGC insurance premiums (if
     any), and all such insurance premiums incurred or accrued up to and
     including the Closing Date have been timely paid, or will be timely paid
     prior to the Closing Date.

          (xiii) Neither the Company nor any ERISA Affiliate has ceased
     operations at any facility or withdrawn from such Plan in a manner which
     could subject the Company to liability under ERISA sec. 4062, 4063 or 4064,
     and no events have occurred or will occur on or prior to the Closing Date
     which might give rise to any liability of Company to the PBGC under Title
     IV of ERISA or which could reasonably be anticipated to result in any
     claims being made against Company by the PBGC.

          (xiv) No entitlement to any benefit (including, but not limited to,
     severance pay, unemployment compensation or payment contingent upon a
     change in control or ownership of the Company) from such Plan shall arise,
     and no acceleration or increase in benefits due any Person shall occur, by
     reason of the consummation of the transactions contemplated by this
     Agreement.

          (xv) An ERISA fiduciary insurance policy issued by a licensed
     insurance company is in place covering each and every fiduciary of such
     Plan.

          (xvi) If such Plan purports to provide benefits which qualify for
     tax-favored treatment under Code sec. 79, 105, 106, 117, 120, 125, 127 129
     or 132, the Plan satisfies the requirements of said Code sections.

     C. The participants and beneficiary records with respect to each Plan
providing benefits to employees or other Persons performing services for the
Company and their spouses, dependents, etc., are in the custody of the Company
(or an agent of the Company who must, upon demand, provide such records to the
Company), and such records accurately state the history of each participant and
beneficiary in connection with each

                                      A-19
<PAGE>   24

such Plan and accurately state the benefits earned by and/or owed to each such
participant and beneficiary.

     D. Except as otherwise set forth on SCHEDULE 3.13.2, the Company is not
liable for and neither the Company nor Merger Sub nor Parent will be liable for,
any contribution, Tax, lien, penalty, cost, interest, claim, loss, action, suit,
damage, cost assessment or other similar type of liability or expense of any
ERISA Affiliate (including predecessors thereof) with regard to any Plan
maintained, sponsored or contributed to by an ERISA Affiliate, including,
without limitation, withdrawal liability arising under Title IV of ERISA,
liabilities to the PBGC, or liabilities under Code sec. 412 or ERISA sec. 302.

     3.14. COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS.  For
purposes of this Section 3.14. only, the term "Company" shall be deemed to
include the Company and the Subsidiary.

     A. Except as set forth in SCHEDULE 3.14 of the Company Disclosure Schedule:

          (i) The Company is, and at all times since September 30, 1998 has
     been, in full compliance with each Legal Requirement that is or was
     applicable to it or to the conduct or operation of its business or the
     ownership or use of any of its assets except where the failure to comply
     with a Legal Requirement would not have a Company Material Adverse Effect;

          (ii) To the Knowledge of the Company, no event has occurred or
     circumstance exists that (with or without notice or lapse of time) (1) may
     constitute or result in a violation by the Company of, or a failure on the
     part of the Company to comply with, any Legal Requirement or (2) may give
     rise to any obligation on the part of the Company to undertake, or to bear
     all or any portion of the cost of, any remedial action of any nature except
     for events or circumstances which in the aggregate would not have a Company
     Material Adverse Effect; and

          (iii) The Company has not received, at any time since September 30,
     1998, any written notice or other written communication from any
     Governmental Body or any other Person regarding (1) any actual, alleged,
     possible, or potential violation of, or failure to comply with, any Legal
     Requirement or (2) any actual, alleged, possible, or potential obligation
     on the part of the Company to undertake, or to bear all or any portion of
     the cost of, any remedial action of any nature.

     B. The Company has all Governmental Authorizations necessary to conduct its
business as presently conducted. Each Governmental Authorization is valid and in
full force and effect. Except as set forth in SCHEDULE 3.14 of the Company
Disclosure Schedule:

          (i) The Company is, and at all times since September 30, 1998 has
     been, in full compliance with all of the terms and requirements of each
     Governmental Authorization identified or required to be identified in
     SCHEDULE 3.14 of the Company Disclosure Schedule, except where the failure
     to comply with a Governmental Authorization would not have a Company
     Material Adverse Effect;

          (ii) To the Knowledge of the Company, no event has occurred or
     circumstance exists that may (with or without notice or lapse of time) (1)
     constitute or result directly or indirectly in a violation of or a failure
     to comply with any term or requirement of any Governmental Authorization
     listed or required to be listed in SCHEDULE 3.14 of the Company Disclosure
     Schedule or (2) result directly or indirectly

                                      A-20
<PAGE>   25

     in the revocation, withdrawal, suspension, cancellation, or termination of,
     or any modification to, any Governmental Authorization listed or required
     to be listed in SCHEDULE 3.14 of the Company Disclosure Schedule, except
     for events or circumstances which in the aggregate would not have a Company
     Material Adverse Effect;

          (iii) The Company has not received, at any time since September 30,
     1998, any written notice or other written communication from any
     Governmental Body or any other Person regarding (1) any actual or alleged
     violation of or failure to comply with any term or requirement of any
     Governmental Authorization or (2) any actual or potential revocation,
     withdrawal, suspension, cancellation, termination of, or modification to
     any Governmental Authorization; and

          (iv) All applications required to have been filed for the renewal of
     the Governmental Authorizations listed or required to be listed in SCHEDULE
     3.14 of the Company Disclosure Schedule have been duly filed on a timely
     basis with the appropriate Governmental Bodies, and all other filings
     required to have been made with respect to such Governmental Authorizations
     have been duly made on a timely basis with the appropriate Governmental
     Bodies, except where the failure to make such filings in a timely manner
     would not have a Company Material Adverse Effect.

     The Governmental Authorizations listed in SCHEDULE 3.14 of the Company
Disclosure Schedule collectively constitute all of the Governmental
Authorizations that are material to the conduct of the Company's business in the
manner it is currently conducted and to operate such business and to permit the
Company to own and use its assets in the manner in which it currently owns and
uses such assets.

     3.15. LEGAL PROCEEDINGS; ORDERS.

     A. Except as set forth in SCHEDULE 3.15 of the Company Disclosure Schedule,
there is no pending Proceeding:

          (i) That has been commenced by or against the Company or the
     Subsidiary; or

          (ii) To the Knowledge of the Company, that challenges, or that may
     have the effect of preventing, delaying, making illegal, or otherwise
     interfering with, any of the Contemplated Transactions.

     Except as set forth in SCHEDULE 3.15 of the Company Disclosure Schedule, to
the Knowledge of the Company, (i) no such Proceeding has been Threatened and
(ii) no event has occurred or circumstance exists that may give rise to or serve
as a basis for the commencement of any Proceeding that could reasonably be
expected to result in a Company Material Adverse Effect. The Company and the
Subsidiary have delivered to Merger Sub and Parent copies of all pleadings,
correspondence, and other documents relating to each pending Proceeding listed
in SCHEDULE 3.15 of the Company Disclosure Schedule. The Proceedings listed in
SCHEDULE 3.15 of the Company Disclosure Schedule will not have a Company
Material Adverse Effect.

     B. Except as set forth in SCHEDULE 3.15 of the Company Disclosure Schedule:

          (i) There is no Order to which the Company or the Subsidiary, or, to
     the Company's Knowledge, any of the assets owned or used by the Company or
     the Subsidiary, is subject; and

                                      A-21
<PAGE>   26

          (ii) To the Company's Knowledge, no officer, director, or employee of
     the Company or the Subsidiary is subject to any Order that prohibits such
     officer, director, or employee from engaging in or continuing any conduct,
     activity, or practice relating to the business of the Company or the
     Subsidiary as currently conducted.

     C. Except as set forth in SCHEDULE 3.15 of the Company Disclosure Schedule:

          (i) The Company and the Subsidiary are, and at all times since
     September 30, 1998 have been, in full compliance with all of the terms and
     requirements of each Order to which it, or any of the assets owned or used
     by it, is or has been subject, except where the failure to comply would not
     have a Company Material Adverse Effect;

          (ii) To the Knowledge of the Company, no event has occurred or
     circumstance exists that may constitute or result in (with or without
     notice or lapse of time) a violation of or failure to comply with any term
     or requirement of any Order to which the Company or the Subsidiary, or any
     of the assets owned or used by the Company or the Subsidiary, is subject,
     except for events or circumstances which in the aggregate would not have a
     Company Material Adverse Effect; and

          (iii) Neither the Company nor the Subsidiary have received, at any
     time since September 30, 1998, any written notice from any Governmental
     Body or any other Person regarding any actual or alleged violation of, or
     failure to comply with, any term or requirement of any Order to which the
     Company, or any of the assets owned or used by the Company or the
     Subsidiary, is or has been subject.

     3.16. ABSENCE OF CERTAIN CHANGES AND EVENTS.  Except as set forth in
Schedule 3.16 of the Company Disclosure Schedule and in the recent changes in
capitalization as reflected in Section 3.3. hereto, since June 30, 1999, the
Company and the Subsidiary have conducted their businesses only in the Ordinary
Course of Business and there has not been any:

     A. Change in the Company's or the Subsidiary's authorized or issued capital
stock; grant of any stock option or right to purchase shares of capital stock of
the Company or the Subsidiary; issuance of any security convertible into such
capital stock; grant of any registration rights; purchase, redemption,
retirement, or other acquisition by the Company or the Subsidiary of any shares
of any such capital stock; or declaration or payment of any dividend or other
distribution or payment in respect of shares of capital stock;

     B. Amendment to the Organizational Documents of the Company or the
Subsidiary;

     C. Except in the Ordinary Course of Business, payment or increase by the
Company or the Subsidiary of any bonuses, salaries, or other compensation to any
stockholder, director, officer or employee or entry into any employment,
severance, or similar Contract with any director, officer, or employee;

     D. Adoption of, or substantial increase in the payments to or benefits
under, any profit sharing, bonus, deferred compensation, savings, insurance,
pension, retirement, or other employee benefit plan for or with any employees of
the Company or the Subsidiary;

     E. Damage to or destruction or loss of any asset or property of the Company
or the Subsidiary, whether or not covered by insurance that had a Company
Material Adverse Effect;

                                      A-22
<PAGE>   27

     F. Entry into, termination of, or receipt of written notice of termination
of any Contract or transaction involving a total remaining commitment by or to
the Company or the Subsidiary of at least Twenty-Five Thousand and No/100
Dollars ($25,000.00);

     G. Sale (other than sales of inventory in the Ordinary Course of Business),
lease, or other disposition of any asset or property of the Company or the
Subsidiary or mortgage, pledge, or imposition of any Encumbrance on any material
asset or property of the Company or the Subsidiary, including the sale, lease,
or other disposition of any of the Software and Intangibles;

     H. Cancellation or waiver of any claims or rights with a value to the
Company or the Subsidiary in excess of Twenty-Five Thousand and No/100 Dollars
($25,000.00);

     I. Material change in the accounting methods used by the Company or the
Subsidiary; or

     J. Agreement, whether oral or written, by the Company or the Subsidiary to
do any of the foregoing.

     3.17. CONTRACTS; NO DEFAULTS.

     A. SCHEDULE 3.17(A) of the Company Disclosure Schedule contains a complete
and accurate list (other than Customer License Agreements which are disclosed in
Section 3.22.), and the Company has delivered to Merger Sub and Parent true and
complete copies, of:

          (i) Each Contract that involves performance of services or delivery of
     goods or materials by the Company or the Subsidiary of an amount or value
     in excess of Twenty-Five Thousand and No/100 Dollars ($25,000.00);

          (ii) Each Contract that involves performance of services or delivery
     of goods or materials to the Company or the Subsidiary of an amount or
     value in excess of Twenty-Five Thousand and No/100 Dollars ($25,000.00);

          (iii) Except for customer Contracts and inventory and equipment
     purchase orders incurred in the Ordinary Course of Business, each Contract
     that was not entered into in the Ordinary Course of Business and that
     involves expenditures or receipts of the Company or the Subsidiary in
     excess of Twenty-Five Thousand and No/100 Dollars ($25,000.00);

          (iv) Each lease, rental or occupancy agreement, license, installment
     and conditional sale agreement, and other Contract affecting the ownership
     of, leasing of, title to, use of, or any leasehold or other interest in,
     any real or personal property (except personal property leases and
     installment and conditional sales agreements having a value per item or
     aggregate payments of less than Twenty-Five Thousand and No/100 Dollars
     ($25,000.00) and with terms of less than one (1) year) of the Company or
     the Subsidiary;

          (v) Each collective bargaining agreement and other Contract to or with
     any labor union or other employee representative of a group of employees
     relating to the Company or the Subsidiary;

          (vi) Each joint venture, partnership, and other Contract (however
     named) involving a sharing of profits, losses, costs, or liabilities by the
     Company or the Subsidiary with any other Person;

                                      A-23
<PAGE>   28

          (vii) Each Contract containing covenants that in any way purport to
     restrict the business activity of the Company or the Subsidiary or limit
     the freedom of the Company or the Subsidiary to engage in any line of
     business or to compete with any Person;

          (viii) Each Contract (relating to the Company or the Subsidiary)
     providing for payments to or by any Person based on sales, purchases, or
     profits, other than direct payments for goods;

          (ix) Each power of attorney relating to the Company or the Subsidiary
     that is currently effective and outstanding;

          (x) Each Contract relating to the Company or the Subsidiary for
     capital expenditures in excess of Twenty-Five Thousand and No/100 Dollars
     ($25,000.00);

          (xi) Each written warranty, guaranty, and or other similar undertaking
     with respect to contractual performance extended by the Company or the
     Subsidiary other than in the Ordinary Course of Business; and

          (xii) Each amendment, supplement, and modification in respect of any
     of the foregoing.

     B. Except as set forth in SCHEDULE 3.17(B) of the Company Disclosure
Schedule, to the Knowledge of the Company, no officer, director, or employee of
the Company or the Subsidiary is bound by any Contract that purports to limit
the ability of such officer, director or employee to (i) engage in or continue
any conduct, activity, or practice relating to the business of the Company or
any Subsidiary, as currently conducted or (ii) assign to the Company or any
Subsidiary any rights to any invention, improvement, or discovery relating to
the business of the Company or any Subsidiary.

     C. Except as set forth in SCHEDULE 3.17(C) of the Company Disclosure
Schedule, each Contract identified or required to be identified in SCHEDULE
3.17(A) of the Company Disclosure Schedule is in full force and effect, except
as to matters or default which in the aggregate would not have a Company
Material Adverse Effect.

     D. Except as set forth in SCHEDULE 3.17(D) of the Company Disclosure
Schedule:

          (i) The Company and each Subsidiary is in full compliance with all
     material terms and requirements of each Contract under which Company or
     such Subsidiary has or had any obligation or liability or by which Company
     or such Subsidiary or any of the assets owned or used by Company or such
     Subsidiary is or was bound, except where the failure to comply with such
     terms and requirements would not have a Company Material Adverse Effect;

          (ii) To the Knowledge of the Company, each other Person that has or
     had any obligation or liability under any Contract under which the Company
     has or had any rights is in full compliance with all material terms and
     requirements of such Contract;

          (iii) To the Knowledge of the Company, no event has occurred or
     circumstance exists that (with or without notice or lapse of time) may
     contravene, conflict with, or result in a violation or breach of, or give
     the Company or other Person the right to declare a default or exercise any
     remedy under, or to accelerate the maturity or performance of, or to
     cancel, terminate, or modify, any material Contract, except for

                                      A-24
<PAGE>   29

     events or circumstances which in the aggregate would not have a Company
     Material Adverse Effect; and

          (iv) Neither the Company nor any Subsidiary has given to or received
     from any other Person, at any time since March 31, 1999, any written notice
     regarding any actual, alleged, possible, or potential violation or breach
     of, or default under, any material Contract.

     E. There are no renegotiations of or attempts to renegotiate any material
amounts paid or payable to the Company or any Subsidiary under current or
completed Contracts with any Person and the Company has not received any written
demand for such renegotiation.

     3.18. INSURANCE.

     A. The Company has delivered to Merger Sub and Parent:

          (i) True and complete copies of all policies of insurance to which the
     Company or the Subsidiary is a party;

          (ii) True and complete copies of all pending applications for policies
     of insurance; and

          (iii) Any written statement by the auditor of the Financial Statements
     with regard to the adequacy of such entity's coverage or of the reserves
     for claims.

     B. Except as set forth on SCHEDULE 3.18(B) of the Company Disclosure
Schedule:

          (i) All policies to which the Company or the Subsidiary is a party or
     that provide coverage to the Company or the Subsidiary, or any director of
     the Company or the Subsidiary:

             (1) Are in full force and effect, except as to matters or defaults
        which in the aggregate, would not have a Company Material Adverse
        Effect; and

             (2) Taken together in the reasonable judgment of the Company,
        provide adequate insurance coverage for the assets and the operations of
        the Company or any Subsidiary for all risks to which the Company or the
        Subsidiary is normally exposed.

          (ii) Neither the Company nor Subsidiary has received any written
     notice of cancellation or other indication that any insurance policy is no
     longer in full force or effect or will not be renewed or that the issuer of
     any policy is not willing or able to perform its obligations thereunder.

          (iii) The Company and Subsidiary has paid all premiums due and has
     otherwise performed all of its material obligations under each policy to
     which the Company or such Subsidiary is a party or that provides coverage
     to the Company or such Subsidiary or any director thereof, except where the
     failure to so perform would not in the aggregate have a Company Material
     Adverse Effect.

     3.19. ENVIRONMENTAL MATTERS.  Except as set forth in SCHEDULE 3.19 of the
Company Disclosure Schedule, the Company and the Subsidiary have obtained and
are in compliance with all permits, licenses and other authorizations
(collectively, "Permits") required to do business by Environmental Requirements.
To the Company's Knowledge,

                                      A-25
<PAGE>   30

there are no conditions, circumstances, activities, practices, incidents, or
actions (collectively, "Conditions") resulting from the conduct of its business
which Conditions may reasonably form the basis of any claim or suit against the
Company or the Subsidiary based on or related to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport, or handling by the
Company or the Subsidiary, or the emission, discharge, release or Threatened
release by the Company or the Subsidiary into the environment, of any pollutant,
contaminant, or hazardous or toxic materials, substances or wastes.

     3.20. EMPLOYEES.

     A. SCHEDULE 3.20.1 contains a complete and accurate list of the following
information for each employee or director of Company and Subsidiary, including
each employee on leave of absence or layoff status: name of employee or
director; date of hire, job title and "essential functions" (as defined in 29
C.F.R. Section 1630.2(n)); current compensation and any change in compensation
during the past two (2) years; vacation accrued; and service credited for
purposes of vesting and eligibility to participate under Company's Plans to the
extent applicable under such Plans.

     B. No employee or director of Company or Subsidiary is a party to, or is
otherwise bound by, any agreement or arrangement, including any confidentiality,
noncompetition, or proprietary rights agreement, between such employee or
director and any other Person ("Proprietary Rights Agreement") that in any way
adversely affects or will affect (i) the performance of his duties as an
employee or director of Company or Subsidiary or (ii) the ability of Company or
Subsidiary to conduct its business, including any Proprietary Rights Agreement
with Company or Subsidiary by any such employee or director. No key employee of
Company or Subsidiary intends to terminate his employment with Company or
Subsidiary.

     C. SCHEDULE 3.20.2 contains a complete and accurate list of the following
information for each retired employee or director of Company or the Subsidiary,
or their dependents, receiving benefits or scheduled to receive benefits in the
future: name, listing of benefits to which they are entitled and funding
mechanism for such benefits.

     D. SCHEDULE 3.20.3 contains a complete listing of all "covered employees"
and "qualified beneficiaries" (as each is defined in ERISA sec.sec. 607(2) and
(3) and/or Code ss. 4980B(f)(7)) who have experienced a qualifying event (within
the meaning of ERISA sec. 603 and/or Code sec. 4980B(f)(3)) with respect to a
Plan, and/or who are eligible for continuation coverage (within the meaning of
ERISA sec. 602 and/or Code sec. 4980B(f)(2)) and/or whose period for
continuation coverage has not expired. Included in this listing is the current
address for each such individual, the date on which they would have (absent
continuation coverage) lost coverage, whether the individual has elected
continuation coverage, and for individuals who have not yet elected continuation
coverage, the date on which the individual was notified of their right to
continuation coverage.

     E. SCHEDULE 3.20.4 contains a complete listing of all employees who are on
a leave of absence from the Company or the Subsidiary (indicating also whether
or not such leave is pursuant to the Family and Medical Leave Act of 1993, as
amended) and denoting whether such employee is receiving or entitled to receive
health coverage under a Plan during such period of leave.

     3.21. GOVERNMENT CONTRACTS.  Except as set forth in SCHEDULE 3.21 of the
Company Disclosure Schedule, neither the Company nor the Subsidiary have any
business contracts

                                      A-26
<PAGE>   31

with any independent or executive agency, division, subdivision, audit group or
procuring office of the federal government or of a state government, including
any prime contractor of the federal government and any higher level
subcontractor of a prime contractor of the federal government, and including any
employees or agents thereof, in each case acting in such capacity.

     3.22. INTELLECTUAL PROPERTY RIGHTS OF THE COMPANY.  For purposes of this
Section 3.22. only, the term "Company" shall be deemed to include the Company
and the Subsidiary.

     3.22.1. SCHEDULE 3.22.1 (i) contains a complete list of each governmental
filing, whether federal, state, local, foreign or otherwise, related to patents,
copyrights, trademarks, service marks, trade names, maskworks, other Intangibles
and Software (such terms are defined in Section 3.22.2.M.) (collectively
"Registrations") of Company; (ii) identifies each pending Registration of
Company with respect to the Intangibles and Software (defined in Section
4.9.2.M.); (iii) identifies all of Company's applications for or Registrations
regarding the Intangibles and Software which have been withdrawn, abandoned, or
have lapsed or been denied and (iv) specifies any advice to Company with respect
to such Registration or protectability of the Intangibles and Software
summarizing such advice.

     SCHEDULE 3.22.1 also identifies (i) each license agreement or other written
or oral agreement or permission ("License Agreement") and in which Company has
granted to any third party any right with respect to any of the Intangibles or
Software; (ii) each item of the Intangibles and Software used or possessed by
Company that any third party owns and the license, sublicense, agreement or
other permission in connection therewith (the "Third Party License Agreement"),
together with the term thereof, and all royalties or other amounts due thereon
and (iii) each agreement entered into by Company that provides for the sale of
license or access to any source code of the Software, including, without
limitation, any source code escrow agreement ("Source Code Agreement").

     Company has supplied Parent with correct and complete copies of all License
Agreements, Third Party License Agreements and Source Code Agreements.

     Company has complied with all License Agreements, Third Party License
Agreements and Source Code Agreements, and to the best of Company's knowledge,
all other parties to such agreements have complied with all provisions thereof;
and no default or event of default exists under any of the License Agreements,
Third Party License Agreements, or Source Code Agreements.

     3.22.2.

     A. SCHEDULE 3.22.2 is an accurate and complete list and description
(including a name, product description, the language in which it is written and
the type of hardware platform(s) on which it runs) of all of the following:

          (i) All Software owned by Company, whether purchased from a third
     party, developed by or on behalf of Company, currently under development or
     otherwise ("Owned Software").

          (ii) All Software, other than the Owned Software, that is either (x)
     offered or provided by Company, directly or through Distributors, to
     customers of Company or (y) used by Company to provide information or
     services to customers of Company for a fee (collectively, "Customer
     Software"; the Owned Software and the Customer Software are collectively
     referred to as the "Company Software").

                                      A-27
<PAGE>   32

          (iii) All Software, other than Company Software, that is licensed or
     marketed to or from third parties or otherwise used by Company for any
     purpose whatsoever (collectively, "Other Software"), other than Other
     Software that is generally available for license at retail or directly via
     the Internet ("COTS").

     B. To the extent not set forth in SCHEDULE 3.22.1, SCHEDULE 3.22.2
separately sets forth an accurate and complete list and description of each
copyright, trademark, trademark application or registration, service mark,
service mark application or registration, patent application or registration,
and name and logo included in the Intangibles (as defined below in this Section)
owned, marketed or licensed by Company to or from third parties, used or under
development by Company. SCHEDULE 3.22.2 indicates Company's ownership of such
items or the source of Company's right to use such items.

     C. No Software other than the Owned Software, Customer Software and Other
Software is required to operate the Company's businesses as currently conducted
and as contemplated by existing Company Software product and service plans.
SCHEDULE 3.22.2 identifies all individuals who have contributed to the
development of the Owned Software.

     D. Except as explained on SCHEDULE 3.22.2, Company owns and has good and
marketable title to the Owned Software and Intangibles attributable to the Owned
Software, and has the full right to use all of the Customer Software and Other
Software, and Intangibles attributable thereto, as used or required to operate
the Company's businesses as currently conducted and as contemplated in the
future in accordance with Company's written business plans, free and clear of
any liens, claims, charges or encumbrances which would affect the use of such
Software in connection with the operation of the Company's businesses as
currently conducted and as contemplated in the future in accordance with
Company's written business plans.

     E. No rights of any third party not previously obtained are necessary to
market, license, sell, modify, update, and/or create derivative works for any
Software as to which Company takes any such action in its businesses as
currently conducted.

     F. With respect to Software which is licensed by Company to third parties
or used in connection with the providing of services to third parties in the
Company's businesses:

          (i) Company maintains machine-readable master-reproducible copies,
     reasonably complete technical documentation and/or user manuals for the
     most current releases or versions thereof and for all earlier releases or
     versions thereof currently being supported by Company;

          (ii) In each case, the machine-readable copy substantially conforms to
     the corresponding source code listing;

          (iii) Such Software is written in the language set forth on SCHEDULE
     3.22.2, for use on the hardware set forth on SCHEDULE 3.22.2 with standard
     operating systems;

          (iv) Such Software can be maintained and modified by reasonably
     competent programmers familiar with such language, hardware and operating
     systems; and

          (v) In each case the Software operates in accordance with the user
     manual thereof without operating defects of any material nature.

     G. None of the Software or Intangibles listed on SCHEDULE 3.22.1 or
SCHEDULE 3.22.2, or their respective past or current uses by or through Company
has violated or infringed

                                      A-28
<PAGE>   33

upon, or is violating or infringing upon, any Software, patent, copyright, trade
secret or other Intangible of any person. Company has adequately maintained all
trade secrets and copyrights with respect to the Software. Company has performed
all obligations imposed upon it with regard to the Customer Software and Other
Software which are required to be performed by it on or prior to August 31,
2000, and neither Company nor, to the knowledge of Company, any other party, is
in breach of or default thereunder in any respect, nor to Company's knowledge,
is there any event which with notice or lapse of time or both would constitute a
default thereunder.

     H. To the knowledge of Company, no person is violating or infringing upon,
or has violated or infringed upon at any time, any of Company's proprietary
rights to any of the Software or Intangibles listed on either SCHEDULE 3.22.1 or
SCHEDULE 3.22.2.

     I. None of the Software or Intangibles listed on SCHEDULE 3.22.1 and
SCHEDULE 3.22.2 are owned by or registered in the name of any of Company's
shareholders, any current or former owner or shareholder, partner, director,
executive, officer, employee, salesperson, agent, customer, contractor of
Company or its representative nor does any such person have any interest therein
or right thereto, including, but not limited to, the right to royalty payments.
Except as listed on SCHEDULE 3.22.2, Company has granted no third party any
exclusive rights related to any Owned Software.

     J. No litigation is pending and no claim has been made against Company or,
to the knowledge of Company, is threatened, which contests the right of Company
to sell or license to any person or entity or use any of the Owned Software,
Customer Software or Other Software. No former employer of any employee or
consultant of Company has made a claim against Company or, to the knowledge of
Company, against any other person, that Company or such employee or consultant
is misappropriating or violating the Intangibles of such former employer.

     K. Company is not a party to or bound by and, upon the consummation of the
transactions contemplated by this Agreement, will not be a party to or bound by
(as a result of any acts or agreements of Company), any license or other
agreement requiring the payment by Company or its assigns of any royalty or
license payment, excluding such agreements relating to the Customer Software to
the extent such royalty or license payment is expressly set forth on SCHEDULE
3.22.2.

     L. [INTENTIONALLY LEFT BLANK].

     M. For purposes of this Agreement, "Software" means any computer program,
operating system, applications system, microcode, firmware or software of any
nature, whether operational, under development or inactive, including all object
code, source code, technical manuals, compilation procedures, execution
procedures, flow charts, programmers notes, user manuals and other documentation
thereof, whether in machine-readable form, programming language or any other
language or symbols and whether stored, encoded, recorded or written on disk,
tape, film, memory device, paper or other media of any nature.

     "Intangible" means:

          (i) Patents, patent applications, patent disclosures, all re-issues,
     divisions, continuations, renewals, extensions and continuation-in-parts
     thereof and improvements thereto;

                                      A-29
<PAGE>   34

          (ii) Trademarks, service marks, trade dress, logos, trade names, and
     corporate names and registrations and applications for registration thereof
     and all goodwill associated therewith;

          (iii) Copyrights and registrations and applications for registration
     thereof;

          (iv) Maskworks and registrations and applications for registration
     thereof;

          (v) All right, title and interest in all computer software, data and
     documentation (including, without limitation, modifications, enhancements,
     revisions or versions of or to any of the foregoing and prior releases of
     any of the foregoing applicable to any operating environment);

          (vi) Trade secrets and confidential business information (including,
     without limitation, ideas, formulas, compositions, inventions, whether
     patentable or unpatentable and whether or not reduced to practice,
     know-how, manufacturing and production processes and techniques, research
     and development information, drawings, flow charts, processes ideas,
     specifications, designs, plans, proposals, technical data, copyrightable
     works, financial, marketing, and business data, pricing and cost
     information, business and marketing plans, and customer and supplier lists
     and information);

          (vii) Other proprietary rights;

          (viii) All rights necessary to prevent claims of invasion of privacy,
     right of publicity, defamation, infringement of moral rights, or any other
     causes of action arising out of the use, adaptation, modification,
     reproduction, distribution, sale, or exhibition of the Software;

          (ix) All income, royalties, damages and payments due at Closing or
     thereafter with respect to the Owned Software, Customer Software, Other
     Software, or other Intangibles and all other rights thereunder including,
     without limitation, damages and payments for past, present or future
     infringements or misappropriations thereof, the right to sue and recover
     for past, present or future infringements or misappropriations thereof;

          (x) All rights to use all of the foregoing forever; and

          (xi) All other rights in, to, and under the foregoing in all
     countries.

     "Distributor" means Company and any other person or entity that has been
authorized by Company to sell, license or offer to sell or license any Company
Software, other than an employee of Company. Distributors may include, without
limitation, value added resellers, original equipment manufacturers, dealers,
sales agents, and distributors.

     3.22.3. MILLENNIUM COMPLIANCE.

     A. Except as noted in SCHEDULE 3.22.3, the Owned Software and to the best
knowledge of Company, the Customer Software and Other Software, are "Millennium
Compliant." For the purposes of this Agreement "Millennium Compliant" means:

          (i) The functions, calculations, and other computing processes of the
     Owned Software, Other Software and Customer Software (collectively,
     "Processes") perform in an accurate manner regardless of the date in time
     on which the Processes are actually performed and regardless of the date
     input to the Owned Software, Other

                                      A-30
<PAGE>   35

     Software, and Customer Software, whether before, on, or after January 1,
     2000, and whether or not the dates are affected by leap years;

          (ii) The Owned Software, Other Software, and Customer Software accept,
     store, sort, extract, sequence, and otherwise manipulate date inputs and
     date values, and return and display date values, in an accurate manner
     regardless of the dates used, whether before, on, or after January 1, 2000;

          (iii) The Owned Software, Other Software, and Customer Software will
     function without interruptions caused by the date in time on which the
     Processes are actually performed or by the date input to the Owned
     Software, Other Software, and Customer Software, whether before, on, or
     after January 1, 2000;

          (iv) The Owned Software, Other Software, and Customer Software accept
     and respond to two (2) digit year and four (4) digit year date input in a
     manner that resolves any ambiguities as to the century in a defined,
     predetermined, and accurate manner;

          (v) The Owned Software, Other Software, and Customer Software display,
     print, and provide electronic output of date information in ways that are
     unambiguous as to the determination of the century; and

          (vi) The Owned Software, Customer Software, and Other Software have
     been tested by Company to determine whether the Owned Software, Customer
     Software, and Other Software are Millennium Compliant. Company shall
     deliver the test plans and results of such tests upon written request from
     Parent. Company shall notify Parent immediately of the results of any tests
     or any claim or other information that indicates the Owned Software,
     Customer Software, and Other Software are not Millennium Compliant.

     B. Except as set forth in SCHEDULE 3.22.3(B) of the Company Disclosure
Schedule and except as described in the next following sentence, the Company has
inquired as to the Millennium Compliance of the Customer Software and any
computer hardware and devices owned or leased by the Company that operates any
of the Company Software ("Company Hardware") with the vendor thereof, has
obtained assurances that such Customer Software and Company Hardware is
Millennium Compliant, and has tested such Customer Software and Company Hardware
in conjunction with the Owned Software to determine whether the operation of the
Owned Software would result in dated-related failures or errors in such Customer
Software or Company Hardware. In the event that the Company obtains information
that such Customer Software or Company Hardware is not Millennium Compliant or
such Customer Software or Company Hardware fails the testing as described above,
the Company has established and has timely implemented written plans to migrate
the Company and all Company customers off of such Customer Software or Company
Hardware before the Company anticipates that errors or failures in such Customer
Software or Company Hardware will occur.

     C. Except as set forth in SCHEDULE 3.22.3(C) of the Company Disclosure
Schedule and except as described in the next following sentence, the Company has
inquired as to the Millennium Compliance of the Other Software with the vendor
thereof and has obtained assurances that such Other Software is Millennium
Compliant. In the event that the Company obtains information that such Other
Software is not Millennium Compliant, the Company has established and has timely
implemented written plans to migrate the

                                      A-31
<PAGE>   36

Company off of such Other Software before the Company anticipates that errors or
failures in such Other Software will occur.

     D. Each customer of Company identified on SCHEDULE 3.22.3(D) has received a
copy of the correspondence attached to SCHEDULE 3.21.3(D).

     E. SCHEDULE 3.22.3(E) of the Company Disclosure Schedule sets forth true
and correct information called for therein with respect to each customer of
Company.

     3.22.4. Without limiting any of the foregoing, to the best knowledge of
Company, none of Company's current or former officers, executives, directors,
partners, shareholders, employees, salespersons, customers, or independent
contractors have disclosed to (without proper obligation of confidentiality) or
otherwise used or utilized on behalf of any person other than Company, any trade
secrets or proprietary information, including, without limitation, the source
codes for Company Software.

     All License Agreements, Third Party License Agreements, software
development agreements, and any other written agreement between Company and any
third party in which trade secrets or confidential information of Company,
Company's customers, agents, or suppliers are disclosed binds the recipient
thereof to take reasonable steps to protect the proprietary rights of Company
and its customers, agents, and suppliers in such trade secrets and confidential
information.

     SCHEDULE 3.22.4 identifies all individuals who have materially contributed
to the development of the Owned Software.

     3.22.5. COMPANY SOFTWARE:

     A. Performs in accordance with all published specifications for such
Software;

     B. Complies with all other published documentation, descriptions and
literature with respect to such Software; and

     C. Complies with all representations, warranties and other requirements
specified in all of Company's License Agreements.

     3.22.6. Except as set forth on SCHEDULE 3.22.6, none of Company's
shareholders have an ownership right or other interest in any Software or
Intangibles related to the Acquired Business, and no claims have been made or,
to the knowledge of the Company, is threatened, that the Company Software
substantially fails to perform as set forth in Section 3.22.5.

     3.22.7. All Company's contracts with customers (collectively "Customer
Contracts"), whether completed or outstanding, were or are evidenced by written
agreements containing provisions reasonably equivalent to those contained in
SCHEDULE 3.22.7 hereto, with only such changes as would not affect the rights of
Company and would not impose on Company any additional obligations.

     No Customer Contract provided for the transfer to the customer therein of
any Intangibles relating to Company Software as to which Company thereafter
shall have no further rights. No current Customer Contract provides that the
customer therein shall be entitled to sublicense or otherwise transfer to a
third party any of the Intangibles relating to Company Software unless such
third party agrees to be bound by the confidentiality provisions thereof and
agrees to pay Company royalties and other amounts comparable to those under such
Customer Contract.

                                      A-32
<PAGE>   37

     Except as set forth on SCHEDULE 3.22.7, each past or present customer of
Company and each past or present customer of Company to whom Company disclosed
any of the Intangibles relating to Company Software is bound by a
confidentiality provision which requires such past or present customer to take
reasonable steps to protect the rights of Company in the Intangibles relating to
Company Software.

     3.23. CERTAIN PAYMENTS.  To the Knowledge of the Company, neither the
Company or any Subsidiary nor any director, officer, agent, or employee of the
Company or any Subsidiary, nor any other Person associated with or acting for or
on behalf of the Company or any Subsidiary, has directly or indirectly:

     A. On behalf of the Company or any Subsidiary or for the Company's or any
Subsidiary's benefit, made any contribution, gift, bribe, rebate, payoff,
influence payment, kickback, or other payment to any Person, private or public,
regardless of form, whether in money, property, or services in violation of any
Legal Requirement.

     B. Established or maintained any fund or asset on behalf of the Company or
any Subsidiary that has not been recorded in the books and records of the
Company or any Subsidiary.

     3.24. RELATIONSHIPS WITH RELATED PERSONS.  Except as set forth in SCHEDULE
3.24 of the Company Disclosure Schedule, no Related Person of the Company or the
Subsidiary has, or since September 30, 1998, has had, any interest in any
property (whether real, personal, or mixed and whether tangible or intangible),
used in the Company's or the Subsidiary's businesses.

     Except as set forth in SCHEDULE 3.24 of the Company Disclosure Schedule, to
the Knowledge of the Company, no Related Person of the Company or the Subsidiary
owns, or since September 30, 1998, has owned (of record or as a beneficial
owner) an equity interest or any other financial or profit interest in, a Person
that has a material financial interest in any transaction with the Company or
the Subsidiary.

     Except as set forth in SCHEDULE 3.24 of the Company Disclosure Schedule, no
Related Person of the Company is a party to any Contract or commitment with the
Company.

     3.25. BROKERS OR FINDERS.  Except as set forth on SCHEDULE 3.25, neither
the Company, the Subsidiary nor their agents have incurred any obligation or
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement.

     3.26. LABOR RELATIONS; COMPLIANCE.  Neither the Company nor the Subsidiary
have been nor are a party to any collective bargaining or other labor Contract.
There has not been, there is not presently pending or existing, and there is not
Threatened:

     A. Any strike, slowdown, picketing, work stoppage or employee grievance
process;

     B. Any Proceeding against or affecting Company or Subsidiary relating to
the alleged violation of any Legal Requirement pertaining to labor relations or
employment matters, including any charge or complaint filed by an employee or
union with the National Labor Relations Board, the Equal Employment Opportunity
Commission, or any comparable Governmental Body, organizational activity, or
other labor or employment dispute against or affecting any of Company or their
premises; or

     C. Any application for certification of a collective bargaining agent.

                                      A-33
<PAGE>   38

     No event has occurred or circumstance exists that could provide the basis
for any work stoppage or other labor dispute. There is no lockout of any
employees by Company or Subsidiary, and no such action is contemplated by
Company or Subsidiary. Company and Subsidiary have complied in all respects with
all Legal Requirements relating to employment, equal employment opportunity,
nondiscrimination, immigration, wages, hours, benefits, collective bargaining,
the payment of social security and similar taxes, occupational safety and health
and plant closing. The Company and Subsidiary have only employed individuals
authorized to work in the United States.

     Company and Subsidiary are not liable for the payment of any compensation,
Damages, taxes, fines, penalties, or other amounts, however, designated, for
failure to comply with any of the foregoing Legal Requirements.

     3.27. DISCLOSURE DOCUMENTS.  None of the information supplied or to be
supplied by the Company for inclusion in or incorporation by reference in (i)
the Proxy Statement (as defined in Section 6.1.) and (ii) the registration
statement (as defined in Section 4.3.) including the Proxy Statement included
therein, will, in the case of the Proxy Statement, at the time of mailing of the
Proxy Statement to stockholders of the Company, contain any untrue statement of
a material fact or will omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading or will, in the case of
the Registration Statement, at the time the Registration Statement becomes
effective under the Securities Act, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The Proxy Statement will comply as
to form in all material respects with the provisions of the Exchange Act, the
rules and regulations thereunder, except that no representation is made by the
Company with respect to information supplied by Parent or Merger Sub for
inclusion therein.

     3.28. DISCLOSURE.  No representation or warranty made by the Company in
this Agreement or any Exhibit hereto or in the Company Disclosure Schedule, when
taken together, contains or contained (as of the date made) any untrue statement
of a material fact or omits to state a material fact necessary in order to make
the statements or facts contained herein or therein not misleading in light of
the circumstances under which they were made.

     3.29. VOTE REQUIRED.  The affirmative vote of a majority of the votes that
holders of the outstanding shares of Company Common Stock are entitled to vote
with respect to the Merger is the only vote of the holders of any class or
series of Company's capital stock necessary to approve this Agreement and the
transactions contemplated hereby.

4. REPRESENTATIONS, WARRANTIES AND DISCLAIMERS OF MERGER SUB AND PARENT.

     As of September 25, 2000 and as of the Closing Date, Merger Sub and Parent,
jointly and severally, hereby represent and warrant to the Company, subject to
such exceptions as are specifically disclosed in writing in the disclosure
letter and referenced by a specific representation supplied by Parent to Company
dated as of September 25, 2000 and certified by a duly authorized officer of
Parent (the "Parent Disclosure Schedule"), as follows:

     4.1. ORGANIZATION.  Each of Merger Sub and Parent is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, and Merger Sub and Parent each has all
requisite corporate power and authority to own,

                                      A-34
<PAGE>   39

lease and operate its assets and to carry on its business as now being
conducted. Each of Merger Sub and Parent is duly qualified to transact business,
and is in good standing, as a foreign corporation in each jurisdiction where the
character of its activities requires such qualification, except where the
failure to so qualify would not have a material adverse effect on the assets,
liabilities, results of operations, financial condition, business or prospects
of Merger Sub, Parent or their respective subsidiaries taken as a whole.

     4.2. AUTHORIZATION.  Each of Merger Sub and Parent has full corporate power
and authority to execute and deliver this Agreement and to perform its
respective obligations under this Agreement and to consummate the Merger and the
other transactions contemplated hereby (the "Parent/Merger Sub Ancillary
Agreements"). The execution and delivery of this Agreement by Merger Sub and
Parent and the performance by Merger Sub and Parent of their respective
obligations hereunder and the consummation of the Merger, the Parent/Merger Sub
Ancillary Agreements and the other transactions provided for herein have been
duly and validly authorized by all necessary corporate action on the part of
each of Merger Sub and Parent. This Agreement and the Parent/Merger Sub
Ancillary Agreements have been duly executed and delivered by each of Merger Sub
and Parent and each constitutes the legal, valid and binding agreement of Merger
Sub and Parent, enforceable against each of Merger Sub and Parent in accordance
with its terms, subject to applicable bankruptcy, insolvency and other similar
laws affecting the enforceability of creditors' rights generally, general
equitable principles and the discretion of courts in granting equitable
remedies. Each other agreement to be executed by Merger Sub and Parent in
connection with this Agreement will be duly executed and delivered by Merger Sub
and Parent in accordance with its terms, subject to applicable bankruptcy,
insolvency and other similar laws affecting the enforceability of creditors'
rights generally, general equitable principles and the discretion of courts in
granting equitable remedies.

     4.3. ABSENCE OF RESTRICTIONS AND CONFLICTS.  The execution, delivery and
performance of this Agreement, the consummation of the Merger and the other
transactions contemplated by this Agreement, and the fulfillment of and
compliance with the terms and conditions of this Agreement do not and will not,
with the passing of time or the giving of notice or both, violate or conflict
with, constitute a breach of or default under, result in the loss of any
material benefit under, or permit the acceleration of any obligation under, (i)
any term or provision of the Organizational Documents of Merger Sub or Parent;
(ii) any Contract material to the business and operations of Merger Sub or
Parent; (iii) any judgment, decree, injunction or order of any court or
governmental authority or agency to which Merger Sub or Parent is a party or by
which Merger Sub or Parent or any of their respective properties is bound or
(iv) any statute, law, regulation or rule applicable to Merger Sub or Parent, so
as to have, in the case of subsections (ii) through (iv) above, a material
adverse effect on the assets, liabilities, results of operations, financial
condition, business or prospects of Merger Sub or Parent and their respective
subsidiaries taken as a whole. Except for (i) filing of the Articles of Merger;
(ii) the filing of a Form S-4 Registration Statement (the "Registration
Statement") with the Securities and Exchange Commission ("SEC") in accordance
with the Securities Act; (iii) the filing of the Proxy Statement (as defined in
Section 6.1.) with the SEC in accordance with the Exchange Act and (iv) the
filing of such consents, approvals, orders, authorizations, registrations,
declarations and filing as may be required under applicable state securities
laws, no Consent, approval, order or authorization of, or registration,
declaration or filing with, any government agency or public or regulatory unit,
agency, body or authority with respect to Merger Sub or Parent is required in
connection with the execution, delivery or performance of this Agreement by
Merger Sub or Parent or the consummation of the

                                      A-35
<PAGE>   40

Contemplated Transactions contemplated by this Agreement by Merger Sub or
Parent, the failure to obtain which would have a material adverse effect upon
the assets, liabilities, results of operations, financial condition, business or
prospects of Merger Sub or Parent and its subsidiaries taken as a whole.

     4.4. CAPITALIZATION OF PARENT AND MERGER SUB.  The authorized capital stock
of Parent consists of two hundred million (200,000,000) shares of common stock,
$.001 par value per share of which thirty million three hundred fifty-two
thousand seven hundred sixty-five (30,352,765) shares were issued and
outstanding as of December 10, 1999 and two million (2,000,000) shares of
preferred stock, $.001 par value per share, of which zero (0) shares are issued
and outstanding. The authorized capital stock of Merger Sub consists of one
thousand (1,000) shares of common stock, par value $.01 per share, all of which,
as of the date hereof, are issued and outstanding. All of the outstanding shares
of Parent's and Merger Sub's respective capital stock are duly authorized,
validly issued, fully paid and nonassessable. The shares of Parent Common Stock
to be issued pursuant to this Agreement have been duly authorized and, when
issued, will be validly issued, fully paid and nonassessable.

     4.5. SEC FILINGS; FINANCIAL STATEMENTS.

     A. Parent has made available to Company a correct and complete copy of each
report, schedule, registration statement and definitive proxy statement filed by
Parent with the SEC on or after January 1, 1999 (the "Parent SEC Reports"),
which are all the forms, reports and documents required to be filed by Parent
with the SEC since January 1, 1999. The Parent SEC Reports (i) were prepared in
accordance with the requirements of the Securities Act or the Exchange Act, as
the case may be and (ii) did not at the time they were filed (or if amended or
superseded by a filing prior to the date of this Agreement, then on the date of
such filing) contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. None of Parent's subsidiaries is required to file any reports or
other documents with the SEC.

     B. Each set of consolidated financial statements (including, in each case,
any related notes thereto) contained in the Parent SEC Reports was prepared in
accordance with GAAP applied on a consistent basis throughout the periods
involved (except as may be indicated in the notes thereto or, in the case of
unaudited statements, do not contain footnotes as permitted by Form 10-Q of the
Exchange Act) and each fairly represents the consolidated financial position of
Parent and its subsidiaries at the respective dates thereof and the consolidated
results of its operations and cash flows for the periods indicated, except that
the unaudited interim financial statements were or are subject to normal
adjustments which were not or are not expected to be material in amount.

     C. Parent has previously furnished to Company a complete and correct copy
of any amendments or modifications, which have not yet been filed with the SEC,
but which are required to be filed, to agreements, documents or other
instruments which previously had been filed by Parent with the SEC pursuant to
the Securities Act or the Exchange Act.

     4.6. LITIGATION.  Except as may be disclosed in the Parent SEC Reports,
there are no suits, arbitrations, actions, claims, complaints, grievances,
investigations or proceedings pending or, to the Knowledge of Parent or Merger
Sub, Threatened against Parent or Merger Sub that, if resolved against Parent or
Merger Sub could be reasonably expected to

                                      A-36
<PAGE>   41

have a material adverse effect on Parent or Merger Sub on their ability to
consummate the Merger and the other transactions contemplated hereby.

     4.7. REGISTRATION STATEMENT; PROXY STATEMENT.  None of the information
supplied or to be supplied by Parent for inclusion or incorporation by reference
in (i) the S-4 will, at the time the S-4 becomes effective under the Securities
Act, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made, not
misleading and (ii) the Proxy Statement will, at the dates mailed to the
shareholders of Company at the time of the Company Shareholders' meeting (the
"Meeting") and as of the Effective Time, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading. The S-4 will comply as
to form in all material respects with the provisions of the Securities Act and
the rules and regulations promulgated by the SEC thereunder. Notwithstanding the
foregoing, Parent makes no representation or warranty with respect to any
information supplied by the Company which is contained in any of the foregoing
documents.

     4.8. CERTAIN PROCEEDINGS.  There is no pending Proceeding that has been
commenced against Merger Sub or Parent that challenges, or may have the effect
of preventing, delaying, making illegal, or otherwise interfering with, any of
the Contemplated Transactions. To the knowledge of Merger Sub or Parent, no such
Proceeding has been Threatened.

     4.9. BROKERS OR FINDERS.  Except as set forth on SCHEDULE 4.9 of the Parent
Disclosure Schedule, neither Merger Sub or Parent nor any of their respective
officers or agents have incurred any obligation or liability, contingent or
otherwise, for brokerage or finders' fees or agents' commissions or other
similar payment in connection with this Agreement.

5. CERTAIN AGREEMENTS OF THE PARTIES.

     5.1. NO SOLICITATION.

     A. From and after the date of this Agreement until the Effective Time or
termination of this Agreement pursuant to Section 8., Company and Subsidiary
will not, nor will they authorize or permit any of their respective officers,
directors, affiliates or employees or any investment banker, attorney or other
advisor or representative retained by any of them to, directly or indirectly,
(i) solicit, initiate, encourage or induce the making, submission or
announcement of any Acquisition Proposal (as defined below); (ii) participate in
any discussions or negotiations regarding, or furnish to any person any
information with respect to, or take any other action to facilitate any
inquiries or the making of any proposal that constitutes or may reasonably be
expected to lead to, any Acquisition Proposal; (iii) engage in discussions with
any person with respect to any Acquisition Proposal; (iv) approve, endorse or
recommend any Acquisition Proposal or (v) enter into any letter of intent or
similar document or any contract, agreement or commitment contemplating or
otherwise relating to any Acquisition Transaction (as defined below); provided,
however, that nothing contained in this Section 5.1. shall prohibit the Board of
Directors of Company (1) from complying with Rule 14d-9 or 14e-2(a) promulgated
under the Exchange Act with regard to a tender or exchange offer not made in
violation of this Section 5.1. or (2) during the period between mailing of the
Proxy Statement to

                                      A-37
<PAGE>   42

Company's shareholders and receipt of the approval by the shareholders of
Company of this Agreement and the Merger from, in response to an unsolicited,
bona fide written Acquisition Proposal that Company's Board of Directors
reasonably concludes based upon the advice of its independent financial advisors
constitutes a Superior Proposal (as defined below), engaging in discussions with
and furnishing information to the party making such Acquisition Proposal to the
extent (a) the Board of Directors of the Company determines in good faith based
on the advice of its outside legal counsel that its fiduciary obligations under
applicable law require it to do so; (b) (x) at least five (5) days prior to
furnishing any such nonpublic information to, or entering into discussions or
negotiations with, such party, Company gives Parent written notice of Company's
intention to furnish nonpublic information to, or enter into discussions or
negotiations with, such party and (y) Company receives from such party an
executed confidentiality agreement containing customary limitations on the use
and disclosure of all nonpublic written and oral information furnished to such
party by or on behalf of Company and (c) contemporaneously with furnishing any
such nonpublic information to such party, Company furnishes such nonpublic
information to Parent (to the extent such nonpublic information has not been
previously furnished by the Company to Parent). Company and its subsidiaries
will immediately case any and all existing activities, discussions or
negotiations with any parties conducted heretofore with respect to any
Acquisition Proposal. Without limiting the foregoing, it is understood that any
violation of the restrictions set forth in this Section 5.1. by any officer,
director or employee of Company or any of its subsidiaries or any investment
banker, attorney or other advisor or representative of Company or any of its
subsidiaries shall be deemed to be a breach of this Section 5.1. by Company.

     For purposes of this Agreement, (i) "Acquisition Proposal" shall mean any
offer or proposal (other than an offer or proposal by Parent) relating to any
Acquisition Transaction. For the purposes of this Agreement; (ii) "Acquisition
Transaction" shall mean any transaction or series of related transactions other
than the transactions contemplated by this Agreement involving: (1) any
acquisition or purchase from the Company by any person or "group" (as defined
under Section 13(d) of the Exchange Act and the rules and regulations
thereunder) of more than a five percent (5%) interest in the total outstanding
voting securities of the Company or any of its subsidiaries or any tender offer
or exchange offer that if consummated would result in any person or "group" (as
defined under Section 13(d) of the Exchange Act and the rules and regulations
thereunder) beneficially owning five percent (5%) or more of the total
outstanding voting securities of the Company or any of its subsidiaries or any
merger, consolidation, business combination or similar transaction involving the
Company pursuant to which the shareholders of the Company immediately preceding
such transaction hold less than ninety-five percent (95%) of the equity
interests in the surviving or resulting entity of such transaction; (2) any
sale, lease (other than in the ordinary course of business), exchange, transfer,
license (other than in the ordinary course of business), acquisition or
disposition of more than five percent (5%) of the assets of the Company or (3)
any liquidation, dissolution, recapitalization or other significant corporate
reorganization of the Company and (iii) "Superior Proposal" shall mean an
Acquisition Proposal with respect to which (x) Company's Board of Directors
shall have concluded in good faith, after considering applicable state law; on
the basis of the written opinion of independent outside counsel that such action
is necessary to prevent Company's Board of directors from violating its
fiduciary duties to Company's shareholders under applicable law; (y) if any cash
consideration is involved, shall not be subject to any financing contingency,
and with respect to which Company's Board of Directors shall have determined
(based upon the written opinion of Company's independent financial advisors) in
the exercise of its

                                      A-38
<PAGE>   43

fiduciary duties to Company's shareholders that the acquiring party is capable
of consummating the proposed Acquisition Transaction on the terms proposed and
(z) Company's Board of Directors shall have determined in the exercise of its
fiduciary duties to Company's shareholders that the proposed Acquisition
Transaction provides greater value to the shareholders of Company than the
Merger (based upon the written opinion of Company's independent financial
advisors that such Acquisition Transaction is superior to the Merger from a
financial point of view).

     B. In addition to the obligations of Company set forth in paragraph A. of
this Section 5.1., Company as promptly as practicable, and in any event within
twenty-four (24) hours, shall advise Parent orally and in writing of any request
for information which Company reasonably believes would lead to an Acquisition
Proposal or of any Acquisition Proposal, or any inquiry with respect to or which
Company reasonably should believe would lead to any Acquisition Proposal, the
material terms and conditions of such request, Acquisition Proposal or inquiry,
and the identity of the person or group making any such request, Acquisition
Proposal or inquiry. Company will keep Parent informed in all material respects
of the status and details (including material amendments or proposed amendments)
or any such request, Acquisition Proposal or inquiry. In addition to the
foregoing, Company shall (i) provide Parent with at least forty-eight (48) hours
prior notice (or such lesser prior notice as provided to the members of
Company's Board of Directors, but in no event less than eight (8) hours) of any
meeting of Company's Board of Directors at which Company's Board of Directors is
reasonably expected to consider a Superior Offer and (ii) provide Parent with at
least five (5) business days prior written notice of a meeting of Company's
Board of Directors at which Company's Board of Directors is reasonably expected
to recommend a Superior Offer to its shareholders and together with such notice
a copy of the definitive documentation relating to such Superior Offer.

     5.2. PUBLIC DISCLOSURE.  Parent and Company will consult with each other
and agree before issuing any press release or otherwise making any public
statement with respect to the Merger, this Agreement or an Acquisition Proposal
and will not issue any such press release or make any such public statement
prior to such agreement, except as may be required by law or any listing
agreement with a national securities exchange, in which case reasonable efforts
to consult with the other party will be made prior to any such release or public
statement. The parties have agreed to the text of the joint press release
announcing the signing of this Agreement.

     5.3. REASONABLE EFFORTS; NOTIFICATION.

     A. Upon the terms and subject to the conditions set forth in this
Agreement, each of the parties agrees to use all reasonable efforts to take, or
cause to be taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other parties in doing, all things necessary, proper or
advisable to consummate and make effective, in the most expeditious manner
practicable, the Merger and the other transactions contemplated by this
Agreement, including using reasonable efforts to accomplish the following: (i)
the taking of all reasonable acts necessary to cause the conditions precedent
set forth in Section 7. to be satisfied; (ii) the obtaining of all necessary
actions or nonactions, waivers, consents, approvals, orders and authorizations
from Governmental Bodies and the making of all necessary registrations,
declarations and filings (including registrations, declarations and filings with
Governmental Bodies, if any) and the taking of all reasonable steps as may be
necessary to avoid any suit, claim, action, investigation or proceeding by any
Governmental Body; (iii) the obtaining of all necessary consents, approvals or
waivers

                                      A-39
<PAGE>   44

from third parties; (iv) the defending of any suits, claims, actions,
investigations or proceedings, whether judicial or administrative, challenging
this Agreement or the consummation of the transactions contemplated hereby,
including seeking to have any stay or temporary restraining order entered by any
court or other Governmental Body vacated or reversed and (v) the execution or
delivery of any additional instruments necessary to consummate the transactions
contemplated by, and to fully carry out the purposes of, this Agreement. In
connection with and without limiting the foregoing, Company and its Board of
Directors shall, if any state takeover statute or similar statute or regulation
is or becomes applicable to the Merger, this Agreement or any of the
transactions contemplated by this Agreement, use all reasonable efforts to
ensure that the Merger and the other transactions contemplated by this Agreement
may be consummated as promptly as practicable on the terms contemplated by this
Agreement and otherwise to minimize the effect of such statute or regulation on
the Merger, this Agreement and the transactions contemplated hereby.
Notwithstanding anything herein to the contrary, nothing in this Agreement shall
be deemed to require Parent or Company or any subsidiary or affiliate thereof to
agree to any divestiture by itself or any of its affiliates of shares of capital
stock or of any business, assets or property, or the imposition of any material
limitation on the ability of any of them to conduct their business or to own or
exercise control of such assets, properties and stock.

     B. Company shall give prompt notice to Parent of any representation or
warranty made by it contained in this Agreement becoming untrue or inaccurate,
or any failure of Company to comply with or satisfy in any material respect any
covenant, condition or agreement to be complied with or satisfied by it under
this Agreement, in each case, such that the conditions set forth in Section
7.2.A. or 7.2.B. would not be satisfied; provided, however, that no such
notification shall affect the representations, warranties, covenants or
agreements of the parties or the conditions to the obligations of the parties
under this Agreement.

     C. Parent shall give prompt notice to Company of any representation or
warranty made by it or Merger Sub contained in this Agreement becoming untrue or
inaccurate, or any failure of Parent or Merger Sub to comply with or satisfy in
any material respect any covenant, condition or agreement to be complied with or
satisfied by it under this Agreement, in each case, such that the conditions set
forth in Section 7.3.A. or 7.3.B. would not be satisfied; provided, however,
that no such notification shall affect the representations, warranties,
covenants or agreements of the parties or the conditions to the obligations of
the parties under this Agreement.

     5.4. THIRD PARTY CONSENTS.  As soon as practicable following the date
hereof, Parent and Company will each use its commercially reasonable efforts to
obtain any consents, waivers and approvals under any of its or its subsidiaries'
respective agreements, contracts, licenses or leases required to be obtained in
connection with the consummation of the transactions contemplated hereby.

     5.5. INDEMNIFICATION.  From and after the Effective Time, Parent will cause
the Surviving Corporation to fulfill and honor in all respects the obligations
of Company pursuant to any indemnification agreements between Company and its
directors and officers in effect immediately prior to the Effective Time and any
indemnification provisions under the Company Organizational Documents as in
effect on the date hereof. The Certificate of Incorporation and Bylaws of the
Surviving Corporation will contain provisions with respect to exculpation and
indemnification that are at least as favorable to the indemnified parties
thereunder (the "Indemnified Parties") as those contained in the

                                      A-40
<PAGE>   45

Company Organizational Documents as in effect on the date hereof, which
provisions will not be amended, repealed or otherwise modified for a period of
four (4) years from the Effective Time in any manner that would adversely affect
the rights thereunder of the Indemnified Parties, unless such modification is
required by law.

     5.6. NASDAQ LISTING.  Parent agrees to authorize for listing on Nasdaq the
shares of Parent Common Stock issuable and those required to be reserved for
issuance, in connection with the Merger, upon official notice of issuance.

     5.7. REIMBURSEMENT OF EMPLOYEE COSTS AND EXPENSES.  Beginning October 1,
2000 and continuing until the earlier of (i) the termination of this Agreement
pursuant to Section 8 below or (ii) the Closing Date, the Parent will reimburse
the Subsidiary on a monthly basis for all costs and expenses, including salary,
benefits, commissions and travel or related expenses associated with the
following employees of Subsidiary who directly devote all or a portion of their
time and effort to the sales, training or support of the Parent's products and
services: (i) Karen Barbera; (ii) Michelle Peabody-Meyers; (iii) Fran Melda;
(iv) Art Michele; (v) Dan Sands and (vi) Jeff Weiss. The Subsidiary will provide
documentation of such efforts and expenses to the Parent and the Parent will pay
the stated amount within twenty (20) days of receipt of such documentation. If
the Parent disagrees with the amount stated by the Subsidiary, the Parent will
nevertheless pay such amount, subject to recoupment if the Parent's review of
the Subsidiary's books and records indicates that any portion of the amount was
not due. Any dispute on whether any recoupment is due or as to the amount of the
recoupment, will be negotiated between the principals of the Subsidiary and the
Parent and, if not resolved to the parties' satisfaction, will be conclusively
resolved by the independent certified public accountant for the Parent after a
review of records which the Subsidiary may supply to such independent public
accountant.

     5.8. PROVISION OF LOAN BY PARENT TO COMPANY.  Pursuant to that certain
Third Amendment to Loan Documents dated as of October 10, 2000 by and among
Company, Subsidiary and Parent and related documents (the "Loan Documents"),
Parent has agreed to advance an additional Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) to Company and Subsidiary to be used for general working
capital purposes, which advance shall made on or before October 20, 2000 and
upon such advance, the total aggregate principal loan balance outstanding will
be ($1,550,000.00).

     5.9. PRACTICEWORKS SPIN-OFF.  Unless this Agreement is terminated prior to
the Effective Time pursuant to Section 8 below, the parties shall cause the
proposed Merger to be consummated prior to the PracticeWorks Spin-off.

6. ADDITIONAL COVENANTS OF THE PARTIES.

     The parties hereto hereby agree as follows with respect to the period from
and after the date of this Agreement.

     6.1. MUTUAL COVENANTS.

     A. [RESERVED].

     B. Tax-Deferred Treatment. Each of the parties shall use its reasonable
efforts to cause the Merger to constitute a tax-deferred "reorganization" under
Section 368(a) of the Code.

                                      A-41
<PAGE>   46

     C. Confidentiality; Access to Information.

          (i) Prior to the Effective Time and after any termination of this
     Agreement each party hereto will hold, and will use its best efforts to
     cause its officers, directors, employees, accountants, counsel,
     consultants, advisors, affiliates (as such term is used in Rule 12b-2 under
     the Exchange Act) and representatives (collectively, the
     "Representatives"), to hold, in confidence all confidential documents and
     information concerning the other parties hereto and the Subsidiary
     furnished to such party in connection with the transactions contemplated by
     this Agreement, including, without limitation, all analyses, compilations,
     studies or records prepared by the party receiving the information or by
     such party's Representatives, that contain or otherwise reflect or are
     generated from such information (collectively, the "Confidential
     Material"). The party furnishing any Confidential Material is herein
     referred to as the "Delivering Company" and the party receiving any
     Confidential Material is herein referred to as the "Receiving Company."

          (ii) The Receiving Company agrees that the Confidential Material will
     not be used other than for the purpose of the transaction contemplated by
     this Agreement, and that such information will be kept confidential by the
     Receiving Company and its Representatives; provided, however, that (1) any
     of such information may be disclosed to the Representatives who need to
     know such information for the purpose described above (it being understood
     that (a) each such Representative shall be informed by the Receiving
     Company of the confidential nature of such information, shall be directed
     by the Receiving Company to treat such information confidentially and not
     to use it other than for the purpose described above and shall agree to be
     bound by the terms of this Section 6.1.C. and (b) in any event, the
     Receiving Company shall be responsible for any breach of this Agreement by
     any of its Representatives) and (2) any other disclosure of such
     information may be made if the Delivering Company has, in advance,
     consented to such disclosure in writing. The Receiving Company will make
     all reasonable, necessary and appropriate efforts to safeguard the
     Confidential Material from disclosure to anyone other than as permitted
     hereby.

          (iii) Notwithstanding the foregoing, if the Receiving Company or any
     of its Representatives is requested or required (by oral question or
     request for information or documents in legal proceedings, interrogatories,
     subpoena, civil investigative demand or similar process) to disclose any
     Confidential Material, the Receiving Company will promptly notify the
     Delivering Company of such request or requirement so that the Delivering
     Company may seek an appropriate protective order and/or waive the Receiving
     Company's compliance with the provisions or this Agreement. If, in the
     absence of a protective order or the receipt of a waiver hereunder, the
     Receiving Company or any of its Representatives is nonetheless, in the
     reasonable written opinion of the Receiving Company's counsel, compelled to
     disclose Confidential Material to any tribunal, the Receiving Company or
     such Representative, after notice to the Delivering Company, may disclose
     such information to such tribunal. The Receiving Party shall exercise
     reasonable efforts to obtain reliable assurance that confidential treatment
     will be accorded the Confidential Material so disclosed. The Receiving
     Company or such Representative shall not be liable for the disclosure of
     Confidential Material hereunder to a tribunal compelling such disclosure
     unless such disclosure to such tribunal was caused by or resulted from a
     previous disclosure by the Receiving Company or any of its Representatives
     not permitted by this Agreement.

                                      A-42
<PAGE>   47

          (iv) This Section 6.1.C. shall be inoperative as to particular
     portions of the Confidential Material if such information (1) is or becomes
     generally available to the public other than as a result of a disclosure by
     the Receiving Company or its Representatives; (2) was available to the
     Receiving Company on a non-confidential basis prior to its disclosure to
     the Receiving Company by the Delivering Company or the Delivering Company's
     Representatives or (3) becomes available to the Receiving Company on a
     non-confidential basis from a source other than the Delivering Company or
     the Delivering Company's Representatives, provided that such source is not
     known by the Receiving Company, after reasonable inquiry, to be bound by a
     confidentiality agreement with the Delivering Company or the Delivering
     Company's Representatives and is not otherwise prohibited from transmitting
     the information to the Receiving Company by a contractual, legal or
     fiduciary obligation. The fact that information included in the
     Confidential Material is or becomes otherwise available to the Receiving
     Company or its Representatives under clauses (1) through (2) above shall
     not relieve the Receiving Company or its Representatives of the
     prohibitions of the confidentiality provisions of this Section 6.1. with
     respect to the balance of the Confidential Material.

          (v) If this Agreement is terminated, each party hereto will, and will
     use its best efforts to cause its officers, directors, employees,
     accountants, counsel, consultants, advisors and agents to, destroy or
     deliver to the party from whom such Confidential Material was obtained,
     upon request, all documents and other materials, and all copies thereof,
     obtained by such party or on its behalf from any such other parties in
     connection with this Agreement that are subject to such confidence.

     D. Proxy Statement/Registration Statement; Shareholder Approval. Following
the execution of this Agreement, Parent, Merger Sub and the Company will
mutually cooperate to prepare and file with the SEC a preliminary proxy
statement relating to the Merger (the "Proxy Statement") and Parent will prepare
and file with the SEC the Registration Statement in which the Proxy Statement
will be included as a prospectus. Each of Parent, Merger Sub and the Company
will respond to any comments of the SEC and will use its best efforts to have
the Registration Statement declared effective under the Securities Act as
promptly as practicable after such filing and when the Registration Statement is
declared effective by the SEC, the Company will thereafter promptly cause the
Proxy Statement to be mailed to its stockholders. In connection therewith,
Parent, Merger Sub and the Company will prepare and file any other filings
required under the Exchange Act, the Securities Act or any other Federal or blue
sky laws relating to the Merger and the transactions contemplated by this
Agreement (the "Other Filings"). Each party will notify the other party promptly
upon the receipt of any comments from the SEC or its staff and of any
supplements to the Registration Statement, the Proxy Statement or any Other
Filing or for additional information and will supply the other party with copies
of all correspondence between such party or any of its representatives, on the
one hand, and the SEC, or its staff or other government officials, on the other
hand, with respect to the Registration Statement, the Proxy Statement, the
Merger or any Other Filing. The Proxy Statement, the Registration Statement and
the Other Filings will comply in all material respects with all applicable
requirements of law and the rules and regulations promulgated thereunder. Each
party agrees to cooperate with the other to provide all materials, documents,
exhibits and other requested information necessary to assure such compliance.
Whenever any event occurs which is required to be set forth in an amendment or
supplement to the Proxy Statement, the Registration Statement or any Other
Filing, Parent or the Company, as the case may be, will promptly inform the
other party of such

                                      A-43
<PAGE>   48

occurrence and cooperate in filing with the SEC or its staff or any other
government officials, and/or mailing to stockholders of the Company, such
amendment or supplement. The Proxy Statement will also include the approval of
this Agreement and the Merger and the recommendation of the Board of Directors
of the Company to Company's shareholders that they vote in favor of approval of
this Agreement and the Merger, subject to the right of the Board of Directors of
the Company to withdraw its recommendation and recommend a Superior Proposal
determined to be such in compliance with Section 5.1. of this Agreement;
provided, however, that the Board of Directors of Company shall submit this
Agreement to Company's shareholders whether or not at any time subsequent to the
date hereof such board determines that it can no longer make such
recommendation. Promptly after the date hereof, the Company will exercise its
best efforts and take all action necessary in accordance with Colorado law and
its Certificate of Incorporation and Bylaws to convene the Meeting to be held as
promptly as practicable, and in any event within (forty (40)) days after the
declaration of effectiveness of the Registration Statement, for the purpose of
voting upon this Agreement. Unless Company's Board of Directors has withdrawn
its recommendation of this Agreement and the Merger in compliance with Section
5.1., Company shall use all reasonable efforts to solicit from its shareholders
proxies in favor of the approval of this Agreement and the Merger pursuant to
the Proxy Statement and shall take all other action necessary or advisable to
secure the vote or consent of shareholders required by Colorado Law or
applicable stock exchange requirements to obtain such approval. Notwithstanding
any provision in this Agreement to the contrary, the Company acknowledges and
agrees that Parent may, by notice to the Company, postpone the filing of the
Registration Statement, the request to accelerate the declaration of
effectiveness of the Registration Statement, or the mailing of the Proxy
Statement to the Company's shareholders if at any time the Board of Directors of
Parent, in good faith, determines that it would be detrimental to the Parent or
Company for such Registration Statement to be filed or declared effective, or
for such Proxy Statement to be mailed to the shareholders of the Company;
provided, that any such postponement shall not exceed ninety (90) days in
duration.

     6.2. COVENANTS OF THE COMPANY.

     A. CONDUCT OF THE COMPANY'S OPERATIONS.  During the period from the date of
this Agreement to the Effective Time or the date of termination of this
Agreement, the Company and the Subsidiary shall use its reasonable efforts to
maintain and preserve their respective business organizations and to retain the
services of their respective officers and key employees and maintain
relationships with customers, suppliers and other third parties to the end that
their goodwill and ongoing business shall not be impaired in any material
respect. Without limiting the generality of the foregoing, during the period
from the date of this Agreement to the Effective Time, neither the Company nor
Subsidiary shall, except as otherwise expressly contemplated by this Agreement
and the transactions contemplated hereby, without the prior written consent of
Parent, such consent not to be unreasonably withheld or delayed:

          (i) Sell, transfer, lease, pledge, mortgage, encumber or otherwise
     dispose of any of its personal property or assets other than sales or
     leases of inventory or licensing of Intellectual Property Assets in the
     Ordinary Course of Business.

          (ii) Make or propose any changes in its Articles of Incorporation or
     Bylaws.

                                      A-44
<PAGE>   49

          (iii) Merge or consolidate with any other Person or acquire a material
     amount of assets or capital stock of any other Person or enter into any
     confidentiality agreement with any Person other than in the Ordinary Course
     of Business.

          (iv) Incur, create, assume or otherwise become liable for indebtedness
     for borrowed money or assume, guarantee, endorse or otherwise as an
     accommodation become responsible or liable for obligations of any other
     individual, corporation or other entity, or enter into any arrangement
     having the economic effect of any of the foregoing other than in connection
     with the financing of ordinary course trade payables consistent with past
     practice other than its Subsidiaries, except in the Ordinary Course of
     Business.

          (v) Create any subsidiaries.

          (vi) Enter into or modify any employment, severance, termination or
     similar agreements or arrangements with, or grant any bonuses, salary
     increases, severance or termination pay to, any officer, director,
     consultant or employee.

          (vii) Change its method of doing business, in any material respect, or
     change any material method or principle of accounting in a manner that is
     inconsistent with past practice.

          (viii) Settle any Proceeding, whether now pending or hereafter made or
     brought involving an amount in excess of Twenty-Five Thousand and No/100
     Dollars ($25,000.00).

          (ix) Modify, amend or terminate, or waive, release or assign any
     material rights or claims with respect to, any material Contract to which
     the Company or Subsidiary is a party or any confidentiality agreement to
     which the Company or Subsidiary is a party.

          (x) Incur or commit to any capital expenditures, obligations or
     liabilities in respect thereof which in the aggregate exceed or would
     exceed Fifty Thousand and No/100 Dollars ($50,000.00) on a cumulative
     basis.

          (xi) Issue, sell or grant options, warrants or rights to purchase or
     subscribe to, or enter into any arrangement or contract with respect to the
     issuance or sale of any securities of the Company or Subsidiary, or rights
     or obligations convertible into or exchangeable for any securities of the
     Company or Subsidiary, or alter the terms of any presently outstanding
     options or make any changes, by split-up, combination, reorganization or
     otherwise in the capital structure of the Company or Subsidiary.

          (xii) Declare, set aside or pay any dividend or make any other
     distribution or payment with respect to any shares of its capital stock.

          (xiii) Grant any severance or termination pay to any officer or
     employee except pursuant to written agreements outstanding, or policies
     existing, on the date hereof and as previously disclosed in writing or made
     available to Parent, or adopt any new severance plan.

          (xiv) Declare, set aside or pay any dividends on or make any other
     distributions (whether in cash, stock, equity securities or property) in
     respect of any capital stock or split, combine or reclassify any capital
     stock or issue or authorize the issuance of any other securities in respect
     of, in lieu of or in substitution for any capital stock.

                                      A-45
<PAGE>   50

          (xv) Purchase, redeem or otherwise acquire, directly or indirectly,
     any shares of capital stock of Company or Subsidiary, except repurchases of
     unvested shares at cost in connection with the termination of the
     employment relationship with any employee pursuant to stock option or
     purchase agreements in effect on the date hereof.

          (xvi) Engage in any action that could cause the Merger to fail to
     qualify as a "reorganization" under Section 368(a) of the Code, whether or
     not (in each case) otherwise permitted by the provisions of this Section
     6.2.

          (xvii) Engage in any action with the intent to directly or indirectly
     adversely impact any of the transactions contemplated by this Agreement.

          (xviii) Make any tax election that, individually or in the aggregate,
     is reasonably likely to adversely affect in any material respect the tax
     liability or tax attributes of Company or Subsidiary or settle or
     compromise any material income tax liability.

          (xix) Agree in writing or otherwise to take any of the foregoing
     actions.

     B. INTELLECTUAL PROPERTY MATTERS.  The Company shall use its reasonable
efforts to preserve its ownership rights to all of the intellectual property
("Intellectual Property") described in Section 3.22. free and clear of any
Encumbrances and shall use its reasonable efforts to assert, contest and
prosecute any infringement of any issued foreign or domestic patent, trademark,
service mark, trade name or copyright that forms a part of the Intellectual
Property or any misappropriation or disclosure of any trade secret, confidential
information or know-how that forms a part of the Intellectual Property.

     C. SHAREHOLDER AGREEMENTS.  The Company shall deliver or cause to be
delivered to Parent, concurrently with the execution of this Agreement, from
each of the Principal Shareholders, an executed Shareholder Agreement (the
"Shareholder Agreements") in the form attached hereto as EXHIBIT A, agreeing,
among other things, to vote in favor of the Merger.

     6.3. FORM S-8.  Parent agrees to file, if available, for use by Parent, a
registration statement on Form S-8 for the shares of Parent Common Stock
issuable with respect to assumed Options no later than twenty (20) business days
after the Closing Date.

     6.4. STOCK OPTIONS AND WARRANTS.

     A. At the Effective Time, the Company's obligations with respect to each
outstanding Option or Warrant, whether vested or unvested, will be terminated
and such Option or Warrant shall be replaced with an option or warrant, as the
case may be, (such replacement options or warrants shall hereinafter be referred
to collectively as "Parent Securities" or individually as "Parent Security") to
acquire shares of Parent Common Stock equal to the product of the number of
shares of Company Common Stock that were purchasable under such Option or
Warrant immediately prior to the Effective Time multiplied by .1521298, rounded
up to the nearest whole number of shares of Parent Common Stock. The per share
exercise price for the shares of Parent Common Stock issuable upon exercise of
such Parent Security will be equal to the quotient determined by dividing the
exercise price per share of Company Common Stock at which the related Option or
Warrant was exercisable immediately prior to the Effective Time by .1521298 and
rounding the resulting exercise price up to the nearest whole cent. Each Parent
Security shall be evidenced by an option or warrant agreement in a form
acceptable to Parent and shall contain the following additional provisions: (i)
with respect to any Parent Security to be issued to Messrs. Horsley, Bayne and
Bilanich or to individuals who are

                                      A-46
<PAGE>   51

former employees or directors of either Company or Subsidiary as of the date of
this Agreement, the expiration date of such Parent Security shall be the same
expiration date as presently provided in such party's existing option or warrant
agreement with the Company; (ii) with respect to any Parent Security to be
issued to any other party not described in clause (i) above, the expiration date
of such Parent Security shall be the later of (x) one (1) year from the date of
Closing or (y) the thirtieth (30th) day following termination of such employee's
employment with the Company or Subsidiary, but in no event shall such expiration
date extend beyond the expiration date presently provided in such party's
existing option or warrant agreement with the Company and (iii) the Parent
Security shall be subject to automatic exchange for a comparable option or
warrant to acquire PracticeWorks common stock upon the PracticeWorks Spin-off,
adjusted to reflect the exchange rate applicable to other options or warrants of
the Parent which are exchanged in connection with the PracticeWorks Spin-off.

     B. Upon execution of this Agreement, Company will promptly send notice to
each Option or Warrant holder of the proposed termination and exchange of such
holder's Options or Warrants as described above, and the Company further agrees
to take any and all other action as may be required under any existing option or
warrant agreements to effectuate the transactions contemplated by this Section
6.4.

     C. Parent will reserve sufficient shares of Parent Common Stock for
issuance under this Section 6.4. hereof.

7. CONDITIONS.

     7.1. MUTUAL CONDITIONS.  The obligations of the parties hereto to
consummate the Merger shall be subject to the satisfaction at or prior to the
Closing Date of the following conditions:

     A. No temporary restraining order, preliminary or permanent injunction or
other order or decree which prevents the consummation of the Merger shall have
been issued and remain in effect, and no statute, rule or regulation shall have
been enacted by any Governmental Body which prevents the consummation of the
Merger.

     B. [INTENTIONALLY LEFT BLANK].

     C. No Proceeding shall be instituted by any Governmental Body which seeks
to prevent consummation of the Merger or seeking material damages in connection
with the transactions contemplated hereby which continues to be outstanding.

     D. The Registration Statement shall have been declared effective by the SEC
under the Securities Act. No stop order suspending the effectiveness of the
Registration Statement or any part thereof shall have been issued by the SEC and
no proceedings for that purpose and no similar proceeding in respect of the
Proxy Statement shall have been initiated or, to the knowledge of Parent, Merger
Sub or the Company, threatened in writing by the SEC.

     E. The shares of Parent Common Stock issuable to the shareholders of
Company pursuant to this Agreement and such other shares required to be reserved
for issuance in connection with the Merger shall have been authorized for
listing on Nasdaq upon official notice of issuance.

                                      A-47
<PAGE>   52

     F. All waiting periods, if any, under the HSR Act relating to the Merger
will have expired or terminated early.

     G. The Shareholder Approval shall have been obtained.

     H. Parent and Company shall each have received written opinions from their
respective tax counsel in the form and substance reasonably satisfactory to
them, to the effect that the Merger will constitute a reorganization within the
meaning of Section 368(a) of the Code and such opinions shall not have been
withdrawn; provided, however, that if the counsel to either Parent or Company
does not render such opinion, this condition shall nonetheless be deemed to be
satisfied with respect to such party if counsel to the other party renders such
opinion to such party. The parties to this Agreement agree to make such
reasonable representations as requested by such counsel for the purpose of
rendering such opinions.

     7.2. CONDITIONS TO OBLIGATIONS OF MERGER SUB AND PARENT.  The obligations
of Merger Sub and Parent to consummate and effect the Merger shall be subject to
the satisfaction at or prior to the Closing Date of each of the following
conditions, any of which may be waived, in writing, exclusively by Parent:

     A. REPRESENTATIONS AND WARRANTIES.  Each representation and warranty of
Company contained in this Agreement (i) shall have been true and correct as of
December 31, 1999 and (ii) shall be true and correct on and as of the Closing
Date with the same force and effect as if made on and as of the Closing Date
except (1) for such failures to be true and correct that do not in the aggregate
constitute a Company Material Adverse Effect; provided, however, such Company
Material Adverse Effect qualifier shall be inapplicable with respect to
representations and warranties contained in Sections 3.2.A., 3.3., 3.29., 3.30.
and 3.31. and (2) for those representations and warranties which address matters
only as of a particular date (which representations shall have been true and
correct (subject to the qualifications set forth in the preceding clause (1)) as
of such particular date) (it being understood that, for purposes of determining
the accuracy of such representations and warranties, (i) all "Company Material
Adverse Effect" qualifications and other qualifications based on the word
"material" or similar phrases contained in such representations and warranties
shall be disregarded and (ii) any update of or modification to the Company
Disclosure Schedule made or purported to have been made after the date of this
Agreement shall be disregarded).

     B. The Company shall have performed in all material respects each
obligation and agreement and shall have complied in all material respects with
each covenant to be performed and complied with by such parties hereunder prior
to the Effective Time.

     C. Since the date of this Agreement, there shall not have been any Company
Material Adverse Effect or any material adverse effect on the ability of the
Company to consummate the transactions contemplated hereby.

     D. The Company shall have furnished Merger Sub and Parent with a
certificate dated the Closing Date signed on behalf of it by its President to
the effect that the conditions set forth in Sections 7.2.A., B. and C. have been
satisfied.

     E. Daniel L. Richmond and Chae U. Kim shall each have executed an
Employment Agreement, in the forms of which are attached hereto as EXHIBIT C-1
and EXHIBIT C-2, respectively.

                                      A-48
<PAGE>   53

     F. Merger Sub and Parent shall have received the legal opinion, dated the
Closing Date, of Norton Lidstone, P.C., counsel to the Company, in substantially
the form attached hereto as EXHIBIT D.

     G. The Company shall have obtained all material consents, waivers,
approvals, authorizations or orders, including the consents set forth on
SCHEDULE 3.2, and made all filings in connection with the authorization,
execution and delivery of this Agreement by the Company and the consummation by
each of the transactions contemplated hereby.

     H. The Company and Parent shall have fully complied with all of their
obligations and covenants set forth in Section 6.1.D. above.

     I. The total aggregate amount of cash paid by Parent pursuant to Section
2.5.H. shall not exceed Five Hundred Thousand and No/100 Dollars ($500,000.00).

     7.3. CONDITIONS TO OBLIGATIONS OF THE COMPANY.  The obligations of the
Company to consummate and effect the Merger shall be subject to the satisfaction
at or prior to the Closing Date of each of the following conditions, any of
which may be waived, in writing, exclusively by the Company:

     A. Each representation and warranty of Merger Sub and Parent set forth in
Section 4. (i) shall have been true and correct as of September 25, 2000 and
(ii) shall be true and correct on and as of the Closing Date as though made on
and as of the Closing Date except (1) for such failures to be true and correct
that do not in the aggregate constitute a Parent Material Adverse Effect and (2)
for those representations and warranties which address matters only as of a
specified date, which need be true and correct (which representations and
warranties shall have been true and correct (subject to the qualifications set
forth in the preceding clause (1)) as of such particular date (it being
understood that, for purposes of determining the accuracy of such
representations and warranties, (i) all "Parent Material Adverse Effect"
qualifications and other qualifications based on the word "material" or similar
phrases contained in such representations and warranties shall be disregarded
and (ii) any update of or modification to the Parent Disclosure Schedule made or
purported to have been made after the date of this Agreement shall be
disregarded).

     B. Each of Merger Sub and Parent shall have performed in all material
respects each obligation and agreement and shall have complied in all material
respects with each covenant to be performed and complied with by it hereunder at
or prior to the Effective Time.

     C. Since the date of this Agreement, there shall not have been any material
adverse change in the assets, liabilities, results of operations, business or
financial condition of Merger Sub and Parent or any material adverse effect on
the ability of Merger Sub and Parent to consummate the transactions contemplated
hereby.

     D. Each of Merger Sub and Parent shall have furnished the Company with a
certificate dated the Closing Date signed on its behalf by its Chairman,
President or any Vice President to the effect that the conditions set forth in
Sections 7.3.A., B. and C. have been satisfied.

     E. The Company shall have received the legal opinion, dated the Closing
Date, of Morris, Manning & Martin, L.L.P., counsel to Merger Sub and Parent,
substantially in the form attached hereto as EXHIBIT E.

                                      A-49
<PAGE>   54

8. TERMINATION.

     8.1. TERMINATION.  This Agreement may be terminated at any time prior to
the Effective Time, whether before or after the requisite approval of the
shareholders of Company:

     A. By mutual written consent duly authorized by the Boards of Directors of
Parent and Company;

     B. By either Company or Parent if the Merger shall not have been
consummated by December 31, 2000 for any reason; provided, however, that the
right to terminate this Agreement under this Section 8.1.B. shall not be
available to any party whose action or failure to act has been a principal cause
of or resulted in the failure of the Merger to occur on or before such date and
such action or failure to act constitutes a breach of this Agreement;

     C. By either Company or Parent if a Governmental Body shall have issued an
order, decree or ruling or taken any other action, in any case having the effect
of permanently restraining, enjoining or otherwise prohibiting the Merger, which
order, decree, ruling or other action is final and nonappealable;

     D. By either Company or Parent if the required approval of the shareholders
of Company contemplated by this Agreement shall not have been obtained by reason
of the failure to obtain the required vote at a meeting of Company shareholders
duly convened therefor or at any adjournment therefor;

     E. By Company, upon a breach of any representation, warranty, covenant or
agreement on the part of Parent set forth in this Agreement, or if any
representation or warranty of Parent shall have become untrue, in either case
such that the conditions set forth in Section 7.3.A., B. or C. would not be
satisfied as of the time of such breach or as of the time such representation or
warranty shall have become untrue, provided, that if such inaccuracy in Parent's
representations and warranties or breach by Parent is curable by Parent, then
Company may not terminate this Agreement under this Section 8.1.E. for thirty
(30) days after delivery of written notice from Company to Parent of such
breach, provided Parent continues to exercise best efforts to cure such breach
(it being understood that Company may not terminate this Agreement pursuant to
this paragraph E. if such breach by Parent is cured during such thirty (30) day
period);

     F. By Parent, upon a breach of any representation, warranty, covenant or
agreement on the part of Company set forth in this Agreement, or if any
representation or warranty of Company shall have become untrue, in either case
such that the conditions set forth in Section 7.2.A., B. or C. would not be
satisfied as of the time of such breach or as of the time such representation or
warranty shall have become untrue, provided, that if such inaccuracy in
Company's representations and warranties or breach by Company is curable by
Company, then Parent may not terminate this Agreement under this Section 8.1.F.
for thirty (30) days after delivery of written notice from Parent to Company of
such breach, provided Company continues to exercise best efforts to cure such
breach (it being understood that Parent may not terminate this Agreement
pursuant to this paragraph F. if such breach by Company is cured during such
thirty (30) day period);

     G. By Parent, if (i) the Board of Directors of Company withdraws, modifies
or changes its recommendation of this Agreement or the Merger in a manner
adverse to Parent or its stockholders; (ii) the Board of Directors of Company
shall have

                                      A-50
<PAGE>   55

recommended to the shareholders of Company an Acquisition Proposal; (iii) the
Company fails to comply with Section 5.1.; (iv) an Acquisition Proposal shall
have been announced or otherwise become publicly known and the Board of
Directors of Company shall have (1) failed to recommend against acceptance of
such by its shareholders (including by taking no position, or indicating its
inability to take a position, with respect to the acceptance by its shareholders
of an Acquisition Proposal involving a tender offer or exchange offer) or (2)
failed to reconfirm its approval and recommendation of this Agreement and the
transactions contemplated hereby within five (5) business days thereafter; (v)
any of the Principal Shareholders fail to comply with the Shareholder Agreement
or (vi) the Board of Directors of Company resolves to take any of the actions
described above; or

     H. By Company, if the Share Value, as defined below, is less than Three and
45/100 Dollars ($3.45), or by Parent, if the Share Value is greater than Six and
41/100 Dollars ($6.41). Termination of the Agreement by either party pursuant to
this Section 8.1.H. shall require delivery of written notice of termination to
the other party; however, if Company provides notice pursuant to this Section
8.1.H., that notice shall be irrevocable and Parent shall have the option, in
its sole discretion, by giving written notice to Company of such election prior
to Closing to reject the notice and proceed with Closing (i) using an adjusted
Common Exchange Ratio equal to the product of .06873 multiplied by a fraction,
the numerator of which is $3.45 and the denominator of which is the Share Value
or (ii) in lieu of issuing Parent Common Stock as otherwise set forth herein,
pay cash in the amount of $.2372 per share of Company Common Stock. For purposes
hereof, the term "Share Value" shall mean an amount equal to the average closing
price of a share of Parent Common Stock as reported on NASDAQ for the twenty
(20) consecutive trading days immediately preceding the Closing Date.
Termination of the Agreement under this section does not entitle the
non-terminating party to any termination fee, reimbursement of expenses, or
payment of a penalty of any kind.

     8.2. NOTICE OF TERMINATION; EFFECT OF TERMINATION.  Except as otherwise
provided in Section 8.1.H. above, any termination of this Agreement under
Section 8.1. above will be effective immediately upon the delivery of written
notice of the terminating party to the other parties hereto (or such later time
as may be required by Section 8.1.). In the event of the termination of this
agreement as provided in Section 8.2., this Agreement shall be of no further
force or effect, except (i) as set forth in this Section 8.2., Section
6.1.C.(i), Section 8.3. and Section 9., each of which shall survive the
termination of this Agreement and (ii) nothing herein shall relieve any party
from liability for fraud in connection with, or any willful breach of, this
Agreement.

     8.3. FEES AND EXPENSES.

     A. GENERAL.  Except as set forth in this Section 8.3., all fees and
expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such expenses whether
or not the Merger is consummated; provided, however, that Parent and Company
shall share equally all fees and expenses, other than attorneys' and accountants
fees and expenses, incurred (i) in relation to the printing and filing of the
Proxy Statement (including any preliminary materials related thereto) and the
S-4 (including financial statements and exhibits) and any amendments or
supplements thereto or (ii) for the premerger notification and report forms
under the HSR Act.

     B. TERMINATION FEE.

                                      A-51
<PAGE>   56

          (i) In the event that (1) Parent shall terminate this Agreement
     pursuant to Section 8.1.G. or (2) this Agreement shall be terminated (x)
     pursuant to Section 8.1.B. or (y) pursuant to Section 8.1.D. and, in the
     case of either (x) or (y), (a) at or prior to such termination, there shall
     exist or have been proposed an Acquisition Proposal and (b) within nine (9)
     months after such termination, Company shall enter into a definitive
     agreement with respect to any Company Acquisition or any Company
     Acquisition shall be consummated, then, in the case of (1), promptly after
     such termination, or in the case of (2), concurrently with the execution of
     a definitive agreement with respect to, or the consummation of, as
     applicable, such Company Acquisition, Company shall pay to Parent an amount
     in cash equal to Two Hundred Fifty Thousand and No/100 Dollars
     ($250,000.00) (the "Termination Fee").

          (ii) In the event that Parent shall terminate this Agreement pursuant
     to Section 8.1.F., then Company shall promptly reimburse Parent for
     Parent's costs and expenses in connection with this Agreement and the
     transactions contemplated hereby ("Parent's Expenses"), and if, within nine
     (9) months of such termination of this Agreement, Company shall enter into
     a definitive agreement with respect to any Company Acquisition or any
     Company Acquisition involving Company shall be consummated, then
     concurrently with the execution of a definitive agreement with respect to,
     or the consummation of, as applicable, such Company Acquisition, then
     Company shall pay to Parent an amount in cash equal to the amount by which
     the Termination Fee exceeds the amount of Parent's Expenses previously
     reimbursed by Company pursuant hereto.

          (iii) The Company acknowledges that the agreements contained in this
     Section 8.3.B. are an integral part of the transactions contemplated by
     this Agreement, and that, without these agreements, Parent would not enter
     into this Agreement; accordingly, if the Company fails to pay in a timely
     manner the amounts due pursuant to this Section 8.3.B. and, in order to
     obtain such payment, Parent makes a claim that results in a judgment
     against the Company for the amounts set forth in this Section 8.3.B., the
     Company shall pay to Parent its costs and expenses (including attorneys'
     fees and expenses) in connection with such suit, together with interest on
     the amounts set forth in this Section 8.3.B. at the prime rate of interest
     as reported by SunTrust Bank, N.A. in effect on the date such payment was
     required to be made. Payment of the fees described in this Section 8.3.B.
     shall not be in lieu of damages incurred in the event of breach of this
     Agreement. For the purposes of this Agreement, "Company Acquisition" shall
     mean any of the following transactions (other than the transactions
     contemplated by this Agreement): (i) a merger, consolidation, business
     combination, recapitalization, liquidation, dissolution or similar
     transaction involving the Company pursuant to which the shareholders of the
     Company immediately preceding such transaction hold less than fifty percent
     (50%) of the aggregate equity interests in the surviving or resulting
     entity of such transaction; (ii) a sale or other disposition by the Company
     of assets representing in excess of fifty percent (50%) of the aggregate
     fair market value of the Company's business immediately prior to such sale
     or (iii) the acquisition by any person or group (including by way of a
     tender offer or an exchange offer or issuance by the Company), directly or
     indirectly, of beneficial ownership or a right to acquire beneficial
     ownership of shares representing in excess of fifty percent (50%) of the
     voting power of the then outstanding shares of capital stock of the
     Company.

                                      A-52
<PAGE>   57

     8.4. AMENDMENT.  Subject to applicable law, this Agreement may be amended
by the parties hereto at any time by execution of an instrument in writing
signed on behalf of each of Parent, Merger Sub and Company.

     8.5. EXTENSION; WAIVER.  At any time prior to the Effective Time, any party
hereto may, to the extent legally allowed, (i) extend the time for the
performance of any of the obligations or other acts of the other parties hereto;
(ii) waive any inaccuracies in the representations and warranties made to such
party contained herein or in any document delivered pursuant hereto and (iii)
waive compliance with any of the agreements or conditions for the benefit of
such party contained herein. Any agreement on the part of a party hereto to any
such extension or waiver shall be valid only if set forth in an instrument in
writing signed on behalf of such party. Delay in exercising any right under this
Agreement shall not constitute a waiver of such right.

     8.6. SPECIAL PARENT PAYMENT.  In the event that Company shall terminate
this Agreement pursuant to Section 8.1.E., Parent shall pay to Company an amount
in cash equal to Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00),
and Parent hereby waives the right to offset such amount against any amounts due
Parent by Company pursuant to the loan described in Section 5.8.

9. MISCELLANEOUS.

     9.1. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.  The representations and
warranties of Company, Parent and Merger Sub contained in this Agreement shall
terminate at the Effective Time, and only the covenants that by their terms
survive the Effective Time shall survive the Effective Time.

     9.2. NOTICES.  Except as otherwise set forth herein, all notices given in
connection with this Agreement shall be in writing and shall be delivered either
by personal delivery, by telecopy or similar facsimile means, by certified or
registered mail, return receipt requested, or by express courier or delivery
service, addressed to the parties hereto at the following addresses:

<TABLE>
<S>  <C>                     <C>
A.   Company:                Medical Dynamics, Inc.
                             99 Inverness Drive East
                             Englewood, Colorado 80112
                             Attention: Van Horsley, President
                             Telecopy No.: (303) 799-1378
     With a copy to:         Norton Lidstone, P.C.
                             5445 DTC Parkway
                             The Quadrant, Suite 850
                             Englewood, Colorado 80111
                             Attention: Herrick K. Lidstone, Jr., Esq.
                             Telecopy No.: (303) 221-5553
</TABLE>

                                      A-53
<PAGE>   58
<TABLE>
<S>  <C>                     <C>
B.   Merger Sub and Parent:  InfoCure Corporation and CADI Acquisition
                             Corporation
                             1765 The Exchange, Suite 450
                             Atlanta, Georgia 30339
                             Attention: Richard E. Perlman
                             Telecopy No.: (770) 857-1300
     With a copy to:         Morris, Manning & Martin, L.L.P.
                             1600 Atlanta Financial Center
                             3343 Peachtree Road, N.E.
                             Atlanta, Georgia 30326
                             Attention: Richard L. Haury, Jr., Esq.
                             Telecopy No.: (404) 365-9532
</TABLE>

or at such other address and number as either party shall have previously
designated by written notice given to the other party in the manner hereinabove
set forth. Notices shall be deemed given (i) when received, if sent by telecopy
or similar facsimile means (confirmation of such receipt by confirmed facsimile
transmission being deemed receipt of communications sent by telecopy or other
facsimile means) and (ii) when delivered and receipted for (or upon the date of
attempted delivery where delivery is refused), if hand-delivered, sent by
express courier or delivery service, or sent by certified or registered mail,
return receipt requested.

     9.3. FURTHER ASSURANCES.  The parties hereto agree to furnish upon request
to each other such further information, to execute and deliver to each other
such other documents, and to do such other acts and things, all as the other
party hereto may at any time reasonably request for the purpose of carrying out
the intent of this Agreement and the documents referred to herein.

     9.4. WAIVER.  The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay on the part of
any party in exercising any right, power or privilege under this Agreement or
the documents referred to herein shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or privilege preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. To the maximum extent permitted by applicable law, no claim or
right arising out of this Agreement or the documents referred to herein can be
discharged by one party hereto, in whole or in part, by a waiver or renunciation
of the claim or right unless in writing signed by the other party hereto; no
waiver which may be given by a party hereto shall be applicable except in the
specific instance for which it is given; and no notice to or demand on one party
hereto shall be deemed to be a waiver of any obligation of such party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement or the documents referred to
herein.

     9.5. ENTIRE AGREEMENT AND MODIFICATION.  This Agreement, including all
exhibits and schedules hereto, are intended by the parties to this Agreement as
a final expression of their agreement with respect to the subject matter hereof,
and are intended as a complete and exclusive statement of the terms and
conditions of that agreement. This Agreement may not be modified, rescinded or
terminated orally, and no modification, rescission, termination or attempted
waiver of any of the provisions hereof (including this Section) shall be valid
unless in writing and signed by the party against whom the same is sought to be
enforced.

                                      A-54
<PAGE>   59

     9.6. ASSIGNMENTS, SUCCESSORS AND NO THIRD-PARTY RIGHTS.  This Agreement
shall apply to and be binding in all respect upon, and shall inure to the
benefit of, the successors and assigns of the parties hereto. Nothing expressed
or referred to in this Agreement is intended or shall be construed to give any
person or entity other than the parties to this Agreement any legal or equitable
right, remedy or claim under or with respect to this Agreement, or any provision
hereof, it being the intention of the parties hereto that this Agreement and all
of its provisions and conditions are for the sole and exclusive benefit of the
parties to this Agreement, their successors and assigns, and for the benefit of
no other person or entity; provided, however, that the parties hereto consent to
the assignment of interests in this Agreement, including all exhibits and
schedules hereto, as collateral security for the obligations of Parent and
Merger Sub following the Closing to Finova Capital Corporation.

     9.7. SECTION HEADINGS, CONSTRUCTION.  The headings of articles and sections
contained in this Agreement are provided for convenience only. They form no part
of this Agreement and shall not affect its construction or interpretation. All
references to articles and sections in this Agreement refer to the corresponding
articles and sections of this Agreement. All words used herein shall be
construed to be of such gender or number as the circumstances require. Unless
otherwise specifically noted, the words "herein," "hereof," "hereby,"
"hereinabove," "hereinbelow," "hereunder," and words of similar import, refer to
this Agreement as a whole and not to any particular section, subsection,
paragraph, clause or other subdivision hereof.

     9.8. TIME OF ESSENCE.  With regard to all time periods set forth or
referred to in this Agreement, time is of the essence.

     9.9. GOVERNING LAW.  Except to the extent mandatorily governed by Colorado
Law, this Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, regardless of the laws that might otherwise
govern under applicable principles of conflicts of law thereof.

     9.10. COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original copy of this
Agreement, and all of which, when taken together, shall be deemed to constitute,
but one and the same agreement.

                    [SIGNATURES BEGIN ON THE FOLLOWING PAGE]

                                      A-55
<PAGE>   60

     IN WITNESS WHEREOF, the Company, Merger Sub and Parent, by their duly
authorized officers, have each caused this Agreement to be executed as of the
date first written above.

                                          PARENT:

                                          InfoCure Corporation

                                          By:
                                          --------------------------------------
                                          Name:
                                          --------------------------------------
                                          Title:
                                          --------------------------------------

                                          MERGER SUB:

                                          CADI Acquisition Corporation

                                          By:
                                          --------------------------------------
                                          Name:
                                          --------------------------------------
                                          Title:
                                          --------------------------------------

                                          COMPANY:

                                          Medical Dynamics, Inc.

                                          By:
                                          --------------------------------------
                                          Name:
                                          --------------------------------------
                                          Title:
                                          --------------------------------------

                                      A-56

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