Document:

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                                                                   Exhibit 10.21

                               TABLE OF CONTENTS

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ARTICLE I  PURCHASE AND SALE OF ASSETS ................................................    1

         1.1  Purchased Assets.........................................................    1

         1.2  Excluded Assets..........................................................    3

ARTICLE II  PURCHASE PRICE; LIABILITIES; OTHER MATTERS ................................    3

         2.1  Payment of Purchase Price................................................    3

         2.2  Excluded Liabilities.....................................................    4

         2.3  Allocation of the Purchase Price Among the Purchased Assets..............    4

ARTICLE III  CLOSING ..................................................................    4

         3.1  Time and Place of the Closing............................................    4

         3.2  The Sellers' Deliveries at the Closing...................................    4

         3.3  The Buyer's Deliveries at the Closing....................................    5

ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF SELLERS .................................    6

         4.1  Organization, Power and Authority........................................    6

         4.2  Capital Structure........................................................    7

         4.3  Authorization, Binding Obligation........................................    7

         4.4  No Violations or Defaults................................................    7

         4.5  Contracts, Leases and Other Agreements...................................    7

         4.6  Litigation...............................................................    8

         4.7  Sellers' Employees.......................................................    8

         4.8  Labor Relations of Sellers...............................................    8

         4.9  No Untrue or Inaccurate Representations or Warranties....................    9

         4.10  Good Title to and Condition of the Purchased Assets.....................    9

         4.11  Licenses................................................................    9

         4.12  Proprietary Rights......................................................   10

         4.13  Relationships with Customers and Others.................................   10

         4.14  Employee Benefits.......................................................   11

         4.15  Legal Compliance........................................................   12

         4.16  No Unrecorded Fund, No False Entries....................................   12

         4.17  Compliance with Fictitious Name Statutes................................   12

         4.18  Brokers' Fees...........................................................   12
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                               TABLE OF CONTENTS

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         4.19  Year 2000 Compliance....................................................   13

         4.20  Software................................................................   13

         4.21  Billing Practices.......................................................   13

ARTICLE V  REPRESENTATIONS AND WARRANTIES OF THE BUYER ................................   13

         5.1  Organization, Power and Authority........................................   13

         5.2  Authorization, Binding Obligation........................................   13

         5.3  No Violations or Defaults................................................   14

         5.4  Brokers' Fees............................................................   14

ARTICLE VI  ADDITIONAL COVENANTS OF THE PARTIES .......................................   14

         6.1  Conduct of the Business Pending the Closing..............................   14

         6.2  Access to Each Seller's Premises, Records, Vendors and Suppliers.........   15

         6.3  No Other Discussions.....................................................   16

         6.4  Noncompetition Agreement.................................................   16

         6.5  Prorations and Adjustments...............................................   18

         6.6  Holdback Funds...........................................................   18

         6.7  Further Assurances.......................................................   19

         6.8  Disclosure of Breach or Futility.........................................   19

         6.9  Post-Closing Retention of Records........................................   19

         6.10  Termination of Sellers' Employees.......................................   20

         6.11  Accounts Receivable.....................................................   20

         6.12  Taxes...................................................................   20

         6.13  Net Working Capital.....................................................   21

         6.14  Timely Compliance With Employment Related Laws..........................   21

         6.15  401(k) Plan Distribution and Rollover...................................   22

ARTICLE VII  CONDITIONS TO THE OBLIGATION OF THE BUYER ................................   22

         7.1  Accuracy of Representations and Warranties...............................   22

         7.2  Performance of Obligations...............................................   22

         7.3  Philadelphia Health and Education Corporation............................   22

         7.4  No Pending or Threatened Litigation......................................   22

         7.5  No Change to the Business................................................   23
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                               TABLE OF CONTENTS

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         7.6  Closing Deliveries.......................................................   23

ARTICLE VIII  CONDITIONS TO OBLIGATION OF SELLERS .....................................   23

         8.1  Accuracy of the Buyer's Representations and Warranties...................   23

         8.2  Performance of Obligations...............................................   23

         8.3  Closing Deliveries.......................................................   23

         8.4  No Pending or Threatened Litigation......................................   24

ARTICLE IX  CERTAIN ACTIONS AFTER THE CLOSING .........................................   24

         9.1  Power of Attorney........................................................   24

         9.2  Post-Closing Matters.....................................................   24

         9.3  Legal Support Services. .................................................   25

         9.4  Nonassignability of Assets ..............................................   25

         9.5  Third Party Consents and Termination Statements .........................   26

ARTICLE X  INDEMNIFICATION ............................................................   27

         10.1  Survival of Representations and Warranties..............................   27

         10.2  The Buyer's Right to Indemnification....................................   27

         10.3  Sellers' Right to Indemnification.......................................   27

         10.4  Terms and Conditions of Indemnification.................................   27

         10.5  Payment of Indemnity Obligations; Certain Limitations on
               Parent's/Sellers' Indemnity Obligations.................................   29

ARTICLE XI  MISCELLANEOUS .............................................................   29

         11.1  Failure of Conditions; Breach...........................................   29

         11.2  Termination of Obligations by Mutual Agreement..........................   30

         11.3  Risk of Loss of Purchased Assets Prior to Closing.......................   30

         11.4  Disclosure Schedules....................................................   30

         11.5  Binding Effect..........................................................   30

         11.6  Entire Agreement........................................................   31

         11.7  Execution in Counterpart................................................   31

         11.8  Notices.................................................................   31

         11.9  Governing Law...........................................................   32

         11.10  Representation by Counsel..............................................   32
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                               TABLE OF CONTENTS

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         11.11  Assignment, Successors and Assigns.....................................   32

         11.12  Specific Performance...................................................   32

         11.13  Severability...........................................................   32
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                            ASSET PURCHASE AGREEMENT

         This Asset Purchase Agreement (the "Agreement") is made and entered
into this 14th day of May, 1999 by and among ADVANCED HEALTH MANAGEMENT
CORPORATION, a Delaware corporation, INTEGRATED MEDICAL MANAGEMENT, INC., a
Delaware corporation, ADVANCED HEALTH CORPORATION d/b/a AHT CORPORATION, a
Delaware corporation (the "Parent") (each a "Seller" and collectively, the
"Sellers") and PRACTICARE, INC., a Delaware corporation (the "Buyer") (each, a
"Party" and collectively, the "Parties"). This Agreement and each of the
documents, instruments and certificates contemplated or required hereunder or
delivered in connection herewith or therewith or pursuant hereto or thereto,
collectively, are hereinafter referred to as the "Operative Documents".

                                   WITNESSETH:

WHEREAS, subject to the terms and conditions hereof, the Sellers desire to sell,
transfer and assign to the Buyer, and the Buyer desires to purchase and assume
from the Sellers, as set forth herein: (i) substantially all of the assets of
the Sellers which are used in conducting the Sellers' business of providing
physician practice management, billing and consulting services to independent
and hospital-affiliated physician practices and managed care administrative
services as conducted in Sellers' Atlanta, Georgia and Malvern, Pennsylvania
facilities, as well as with respect to Sellers' Mid Atlantic Cardiology, United
Physicians of Brooklyn, Prime Health Network and Mount Kisco consulting
agreements, except as explicitly excluded in Section 1.2 hereof (the
"Business"); and (ii) certain trade and equipment-related payables incurred by
the Sellers in the ordinary course of the Business for the purchase price
specified herein.

         NOW, THEREFORE, in order to consummate said purchase and sale, and in
consideration of the mutual representations, warranties, agreements, covenants
and conditions set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                   ARTICLE I

                           PURCHASE AND SALE OF ASSETS

         1.1      PURCHASED ASSETS.

         Each Seller agrees to sell, transfer, assign and deliver to the Buyer
at the Closing (defined in Section 3.1 below), free and clear of all liens,
pledges, options, security interests, charges, mortgages and encumbrances of
every kind (hereinafter, "Encumbrances"), subject: (i) to the obtaining of all
required consents or UCC-3 termination statements (other than from Progress Bank
which shall be obtained pursuant to Section 9.5(b) hereto); (ii) only to those
Encumbrances which exist on the Closing Date and are specifically described in
SCHEDULE 1.1(c) hereto; and (iii) to statutory liens for current Taxes (defined
in Section 4.10(c) below) or assessments not yet due or delinquent and
mechanics', carriers', workers', repairers' and other similar liens arising or
incurred in the ordinary course of business relating to obligations as to which
there is no default on the part of the Sellers (each, a "Permitted
Encumbrance"), for the Cash Purchase Price (defined in Section 2.1(a) below) and
on the terms and subject to the conditions set forth in this
<PAGE>   6
Agreement, all of such Seller's right, title and interest in and to all of the
properties and assets used in the conduct of the Business as conducted by the
Sellers on the date hereof, as set forth below (collectively, the "Purchased
Assets"). For purposes of clarity, the Sellers and the Buyer agree that those
assets of the Sellers which are set forth in Section 1.2 hereof are specifically
excluded from the purchase and sale described herein and such assets will remain
the property of and continue to be owned by the respective Sellers from and
after the Closing Date. The Purchased Assets shall be:

                  (a) each Seller's equipment, supplies, leasehold improvements,
furniture, fixtures and other fixed assets set forth in SCHEDULE 1.1(a) attached
hereto and made a part hereof (collectively, the "Fixed Assets");

                  (b) each Seller's receivables set forth in SCHEDULE 1.1(b)
relating to the Business (the "Purchased Receivables");

                  (c) each Seller's rights and benefits accruing to such Seller
under all orders, contracts, leases and agreements made by such Seller, and each
Seller's vendor and supplier relationships as the same relate to the Business,
as set forth in SCHEDULE 1.1(c) (collectively, the "Purchased Contract and Other
Rights");

                  (d) each Seller's: (i) accounting records and such other
records in whatever form needed as are reasonably necessary to collect the
Purchased Receivables and pay the Assumed Liabilities; (ii) each Seller's
operating data and operating records in whatever form and media which pertain to
the Business, including supplier lists, manuals, correspondence, mailing lists,
account lists, Works (as defined in various contracts included in the Purchased
Contract and Other Rights, except as specifically excluded on SCHEDULE 1.1(d))
and other similar documents and records as specified in SCHEDULE 1.1(d); and
(iii) advertising and sales materials as specified in SCHEDULE 1.1(d);

                  (e) the proprietary rights owned or licensed by each Seller
and used in the conduct of the Business, including, without limitation, all
trademarks, service marks and designs, trade names, trade secrets, technology,
software, operating systems, know-how, slogans, copyrights, processes, operating
rights, interfaces and other similar intangible property and rights relating to
the Business, as set forth in SCHEDULE 1.1(e) (collectively, the "Purchased
Proprietary Rights");

                  (f) each Seller's prepaid expenses relating to the Business
and as set forth in SCHEDULE 1.1(f), subject to adjustment as provided in
Section 6.5 below;

                  (g) each Seller's right and interest in and to the telephone
and facsimile numbers set forth in the attached SCHEDULE 1.1(g);

                  (h) each Seller's licenses and permits which pertain to the
Purchased Assets, the Business and/or the operation and conduct thereof, to the
extent transferable, as set forth in SCHEDULE 1.1(h); and

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                  (i) each Seller's right, title and interest in and to all of
the goodwill associated with the Purchased Assets, the Business and/or the
conduct and operation thereof (the "Purchased Goodwill").

         1.2      EXCLUDED ASSETS.

                  (a) Notwithstanding anything to the contrary in Section 1.1
above, the Purchased Assets shall exclude the following assets of each Seller
(each an "Excluded Asset"): (i) the Purchase Price (as hereinafter defined) and
each Seller's other rights under this Agreement; (ii) any shares of the capital
stock of each Seller which are owned and held by such Seller as treasury shares;
(iii) each Seller's corporate minute books and stock records; (iv) cash on hand
(subject to proration obligations under Section 6.5 hereof) and all marketable
securities of each Seller (other than security deposits); (v) Advanced Health
Management Corporation's investment, and ownership interest, in Southern State
Eyecare, LLC; and (vi) all other assets which are not defined herein as
Purchased Assets.

                                   ARTICLE II

                   PURCHASE PRICE; LIABILITIES; OTHER MATTERS

         2.1      PAYMENT OF PURCHASE PRICE.

                  (a) In full consideration for performance of this Agreement by
each Seller, and delivery to the Buyer of the Purchased Assets, the Buyer
agrees, subject to the terms, conditions and limitations set forth in this
Agreement, to: (i) pay THREE MILLION ONE HUNDRED THIRTY-NINE THOUSAND DOLLARS
($3,139,000) (the "Cash Purchase Price") to the Sellers; and (ii) assume: (x)
the trade payables (the "Trade Payables") of the Sellers described in SCHEDULE
2.1(a)(ii)(x) attached hereto; (y) the equipment-related payables (the "Cap
Lease Obligations") of the Sellers described in SCHEDULE 2.1(a)(ii)(y) attached
hereto, and (z) the obligations of the Sellers arising and to be performed after
the Closing Date pursuant to the Purchased Contract and Other Rights ((x)
through (z), collectively, the "Assumed Liabilities").

                  (b) The Buyer will pay the Cash Purchase Price at the Closing
by: (i) delivering to or on behalf of the Sellers an amount equal to TWO MILLION
SIX HUNDRED EIGHTY-NINE THOUSAND DOLLARS ($2,689,000) (the "Closing Payment") by
wire transfer of immediately available funds in such amounts and to such
account(s) as are set forth in SCHEDULE 2.1(b); and (ii) delivering FOUR HUNDRED
FIFTY THOUSAND DOLLARS ($450,000) (the "Holdback Funds") to State Street Bank
and Trust Company, as escrow agent (the "Holdback Escrow Agent"), for the
benefit of the Sellers, and to secure the Sellers' obligations hereunder,
pursuant to the terms and conditions of an escrow agreement (the "Holdback
Escrow Agreement") in the form attached hereto as Exhibit A, subject to offset
as hereinafter provided (to be delivered to the Sellers in accordance with
SCHEDULE 2.3 upon the Holdback Termination Date (as defined in Section 6.6).

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         2.2      EXCLUDED LIABILITIES.

         Except for the Assumed Liabilities, the Buyer does not assume and shall
not be liable for any of the debts, obligations or liabilities of any nature
whatsoever of any Seller, the Business or any other business of any Seller.

         2.3      ALLOCATION OF THE PURCHASE PRICE AMONG THE PURCHASED ASSETS.

         The Sellers and the Buyer agree that the Purchase Price shall be
allocated among the Purchased Assets and the noncompetition and nonsolicitation
agreement set forth in Section 6.4 hereof (the "Noncompetition Agreement") in
the manner set forth on the attached SCHEDULE 2.3. Each Seller acknowledges and
agrees that: (i) the Buyer is expressly relying on such Seller entering into the
Noncompetition Agreement; (ii) the Buyer's obligations hereunder are expressly
conditioned on such Seller entering into the Noncompetition Agreement; and (iii)
a portion of the Purchase Price paid hereunder is in consideration of such
Seller entering into the Noncompetition Agreement. Each Seller and the Buyer
agree that they will prepare and file their respective Tax Returns in accordance
with the allocation set forth on Schedule 2.3 hereto. Each Seller and the Buyer
further agree that they will prepare and file asset acquisition statements on
Form 8594 (and any equivalent statements) with their respective federal income
tax returns (and other Tax Returns (defined herein)) for the taxable year that
includes the Closing Date.

                                  ARTICLE III

                                     CLOSING

         3.1      TIME AND PLACE OF THE CLOSING.

         Subject to the satisfaction or waiver of all conditions to the
obligations of each Seller and the Buyer to consummate the transactions
contemplated hereby (other than conditions with respect to actions the
respective parties will take at the Closing itself), the closing of the
transactions contemplated by this Agreement (the "Closing") shall take place at
the offices of McDermott, Will & Emery, 50 Rockefeller Plaza, New York, New
York, or such other place as mutually agreed to by the Parent and the Buyer,
commencing at 10:00 a.m. local time on the later of: (a) May 14, 1999; or (b)
such other date as the Parent and the Buyer may mutually agree (the "Closing
Date").

         3.2      THE SELLERS' DELIVERIES AT THE CLOSING.

         At the Closing, each Seller shall execute and deliver or cause to be
delivered to the Buyer, properly executed and acknowledged by the Sellers where
applicable:

                  (a) General Assignment and Assumption Agreement and Bill of
Sale (the "Bill of Sale") in the form attached hereto as Exhibit B, executed by
the Sellers, and such other instruments, certificates, powers of attorney,
leases, assignments and other transfer documents and agreements, in each case in
such form as is satisfactory to the Buyer and its counsel, and as are necessary
to transfer the Purchased Assets to the Buyer as provided herein;

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                  (b) Pay off letter evidencing discharge of indebtedness under
the Loan Agreement dated June 26, 1997 between Integrated Medical Management,
Inc. and Progress Bank, in the form attached hereto as Exhibit C;

                  (c) Corporate resolutions of each Seller, certified as of the
Closing Date by such Seller's Secretary, authorizing such Seller to undertake
the transactions contemplated hereunder and authorizing such Seller's
signatories to execute this Agreement and the other Operative Documents to which
such Seller is a party, such resolutions having been duly adopted and being in
full force and effect on the Closing Date;

                  (d) Certified copies of each Seller's Certificate of
Incorporation and By-laws, each as amended to date;

                  (e) A Certificate of each Seller's Secretary, certifying as to
the incumbency and genuine signature of each officer of such Seller executing
any of the Operative Documents;

                  (f) A Good-Standing Certificate with respect to each Seller
issued by the Secretary of State of: (i) such Seller's state of incorporation;
and (ii) any other state in which any Seller is authorized to do business as a
foreign corporation, each such certificate to be dated within ten (10) days of
the Closing Date;

                  (g) A certificate of the Chief Executive Officer and the
Treasurer in such capacity and on behalf of each Seller, dated the Closing Date
and in form reasonably satisfactory to the Buyer, certifying that the conditions
precedent set forth in Article VII have been satisfied;

                  (h) The Holdback Escrow Agreement executed by the Sellers;

                  (i) An opinion of O'Sullivan, Graev & Karabell, LLP, special
counsel to the Sellers, in the form attached hereto as Exhibit D, dated as of
the Closing Date and addressed to the Buyer; and

                  (j) Certification from each Seller under Section 1445(b)(2) of
the Internal Revenue Code of 1986, as amended, and the rules and regulations
thereunder, stating such Seller's taxpayer identification number and that such
Seller is not a foreign Person, substantially in the form of Exhibit E attached
hereto.

         3.3      THE BUYER'S DELIVERIES AT THE CLOSING.

         At the Closing, the Buyer shall execute and deliver or cause to be
delivered to the Sellers, properly executed and acknowledged where applicable:

                  (a) Corporate resolutions, certified as of the Closing Date by
the Buyer's Secretary, authorizing the Buyer to undertake the transactions
contemplated hereunder and authorizing the Buyer's signatories to execute this
Agreement and the

                                      -5-
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other Operative Documents to which the Buyer is a party, such resolutions having
been duly adopted and being in full force and effect on the Closing Date;

                  (b) The Closing Payment;

                  (c) The following Certificates, each to be dated the Closing
Date and in form reasonably satisfactory to the Sellers: (i) a Certificate of
the Buyer's Secretary certifying as to the incumbency and genuine signature of
each of the officers of the Buyer executing the Operative Documents; and (ii) a
Certificate of the Buyer's President, in such capacity and on behalf of the
Buyer, certifying that the conditions precedent set forth in Article VIII have
been satisfied;

                  (d) A Good-Standing Certificate issued by the Secretary of
State of the State of Delaware, such certificate to be dated within ten (10)
days of the Closing Date;

                  (e) The Holdback Escrow Agreement executed by the Buyer;

                  (f) Certified copies of the Buyer's Certificate of
Incorporation and By-laws, each as amended to date;

                  (g) An opinion of McDermott, Will & Emery, counsel to the
Buyer, in the form attached hereto as Exhibit F, dated as of the Closing Date
and addressed to the Sellers; and

                  (h) The Bill of Sale.

                                   ARTICLE IV

                    REPRESENTATIONS AND WARRANTIES OF SELLERS

         As a material inducement to the Buyer to enter into this Agreement and
to consummate the transactions contemplated hereunder, each Seller hereby,
jointly and severally, represents and warrants to the Buyer, as of the date of
execution of this Agreement and as of the Closing Date, as follows:

         4.1      ORGANIZATION, POWER AND AUTHORITY.

         Each Seller is a corporation duly organized, validly existing and in
good standing under the laws of such Seller's respective state of incorporation,
and is qualified as a foreign corporation in such states where qualification is
necessary for the conduct of the Business, except where failure to be so
qualified would not have a Material Adverse Effect (as defined below), and has
full corporate power and authority to: (i) own, lease and operate its properties
and to carry on the Business as it is now being conducted; (ii) enter into this
Agreement and to sell, convey, assign, transfer and deliver the Purchased Assets
for which it has an ownership interest in to the Buyer as provided herein; and
(iii) carry out the other transactions and agreements contemplated hereby.

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         4.2      CAPITAL STRUCTURE.

         Except as set forth in SCHEDULE 4.2, each Seller, except for Parent, is
a wholly-owned subsidiary of Parent.

         4.3      AUTHORIZATION, BINDING OBLIGATION.

         The execution and delivery of the Operative Documents to which any
Seller is a party, and the consummation of the transactions contemplated
thereby, have been duly authorized by all requisite corporate action of such
Seller. Each such Operative Document constitutes the legally valid and binding
obligation of such Seller and is enforceable against such Seller in accordance
with its respective terms, except to the extent that such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to creditors' rights generally and to general principles of
equity.

         4.4      NO VIOLATIONS OR DEFAULTS.

         The execution, delivery and compliance with and performance by each
Seller of the Operative Documents to which it is a party do not and will not:
(i) violate the Certificate of Incorporation or By-laws, or other similar
organizational documents, of any Seller, or any law, statute, rule, regulation,
order, judgment or decree to which any Seller is subject, except where such
violation would not reasonably be expected to have a material adverse effect on
the Purchased Assets, the Business, or the financial condition or results of
operations thereof (a "Material Adverse Effect"); (ii) conflict with, or result
in or constitute a default under, or breach or violation of, or grounds for
termination of, or an event which, with notice or the lapse of time, or both,
would constitute a default under, or breach or violation of, or grounds for
termination of, any agreement or instrument to which any Seller is a party, or
by which any Seller or any of the Purchased Assets which it is assigning and
selling hereunder may be bound, except for such conflicts, breaches, defaults,
violations or grounds for termination, which individually or in the aggregate,
would not reasonably be expected to result in a Material Adverse Effect; (iii)
result in the creation or imposition of any encumbrance (other than a Permitted
Encumbrance) upon any of the Purchased Assets which it is assigning or selling
hereunder; (iv) require any approval or consent which has not been obtained
prior to the Closing of any Person under the organizational documents of any
Seller, or under any contract, agreement or other instrument to which any Seller
is a party or by which any Seller or the Purchased Assets which it is assigning
and selling hereunder are bound or to which any Seller or the Purchased Assets
are subject, except for failures to obtain approvals and consents, which
individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect; or (v) result in the termination, modification or
cancellation of any license, permit, franchise, governmental authorization or
approval which is necessary for the conduct of the Business (provided the
Sellers make no representations or warranty herein as to the transferability of
the license identified on SCHEDULE 4.11).

         4.5      CONTRACTS, LEASES AND OTHER AGREEMENTS.

         SCHEDULE 1.1(c) sets forth a complete list of all Purchased Contract
and Other Rights used in the Business, including a description of the
significant terms and conditions of all

                                      -7-
<PAGE>   12
Purchased Contract and Other Rights that arose under any oral agreement. Copies
of all written Purchased Contract and Other Rights have been delivered to the
Buyer and are true, complete and correct in all material respects. With respect
to each such lease, contract, commitment and agreement listed on SCHEDULE
1.1(c): (a) with the exception of any oral agreement, as to which no
representation and warranty is made in this Section 4.5(a), each is the legal,
valid, binding and enforceable obligation of, and is in full force and effect
with respect to: (i) the Seller which is a party thereto; and (ii) to the
Knowledge of the Sellers, all other parties thereto except in each instance as
such enforcement shall be limited by bankruptcy and creditors rights laws, and
general principles of equity; (b) except as set forth on SCHEDULE 4.20, no
Seller, and to the Knowledge of the Sellers, no other party, to any such
Purchased Contract and Other Right is in breach or default, and, to the
Knowledge of the Sellers, no event has occurred which, with notice or the lapse
of time, would constitute a breach or default, or permit termination,
modification or acceleration thereunder. For purposes of this Agreement,
"Knowledge" shall mean the knowledge of each Seller after due and reasonable
inquiry.

         4.6      LITIGATION.

         SCHEDULE 4.6 sets forth each instance in which any Seller: (a) is
subject to any outstanding injunction, judgment, order, decree, ruling or charge
which relates to or is binding upon the Purchased Assets and/or the Business; or
(b) is a party or is threatened in writing to be made a party to any action,
suit, proceeding, hearing or investigation of, in or before any court or
quasi-judicial or administrative agency of any federal, state, local or foreign
jurisdiction or before any arbitrator the subject of which relates to the
Purchased Assets and/or the Business. None of the actions, suits, proceedings,
hearings and investigations set forth in SCHEDULE 4.6, if decided adversely to
such Seller, could result in any Material Adverse Effect after the Closing.

         4.7      SELLERS' EMPLOYEES.

                  (a) SCHEDULE 4.7(a) sets forth a true and complete list of all
employees of the Sellers who are principally involved in the Business at the
Malvern and Atlanta facilities and certain specified employees at the New York
facility showing date of hire, hourly rate or salary, bonus or other basis of
compensation and job title (the "Affected Employees").

         There are no employment or consulting contracts or arrangements (other
than those terminable at will) with any employees or consultants of or
associated with the Business and the Purchased Assets, except as described in
SCHEDULE 4.7(b).

         4.8      LABOR RELATIONS OF SELLERS.

         No Seller is a party to or bound by any collective bargaining agreement
or any other agreement with a labor union, and there has been no effort by any
labor union during the twenty-four (24) months prior to the date hereof to
organize any employees of any Seller into one or more collective bargaining
units. There is not pending nor threatened any labor dispute, strike or work
stoppage by the Affected Employees which affects or which may affect the
Business or which may interfere with the continued operation of the Business by
employees of the Business.

                                      -8-
<PAGE>   13
There is no unfair labor practice complaint pending, or to the Knowledge of the
Sellers, threatened against any Seller before the National Labor Relations
Board.

         4.9      NO UNTRUE OR INACCURATE REPRESENTATIONS OR WARRANTIES.

         The representations and warranties of the Sellers contained in this
Agreement and the schedules hereto do not contain any untrue statement of a
material fact nor do they omit to state a material fact necessary in order to
make the statements and information contained therein, taken as a whole, not
misleading. There is no fact that materially adversely affects the ability of
any Seller to perform its obligations under this Agreement and to consummate the
transactions contemplated hereby, that has not been set forth and described in
this Agreement or a schedule hereto.

         4.10     GOOD TITLE TO AND CONDITION OF THE PURCHASED ASSETS.

                  (a) Each Seller has good title to, or a valid leasehold
interest in or license to, all of the Purchased Assets which it shall sell and
assign hereunder and has full legal right, power, and authority to sell, assign,
transfer and deliver such Purchased Assets, free and clear of all Encumbrances,
except for the Encumbrances listed and described in SCHEDULE 1.1(c) and the
Permitted Encumbrances, and subject to the obtaining of all required consents.

                  (b) The Fixed Assets currently in use are in good operating
order, repair and condition, reasonable wear and tear excepted.

                  (c) The Purchased Assets are free and clear of all
Encumbrances that arose in connection with any failure (or alleged failure) to
pay any Tax. For purposes of this Agreement:

                           (i) "Tax" shall mean any federal, state, local, or
foreign income, gross receipts, business, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Section 59A of the Code), customs duties, capital stock
franchise, profits, withholding, social security (or similar) unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add on minimum, estimated, or other
tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.

                           (ii) "Tax Return" shall mean all returns, reports,
statements, forms, or other documents or information required to be filed with a
taxing authority by a Seller with respect to the Taxes of such Seller.

         4.11     LICENSES.

                  (a) SCHEDULE 4.11 attached hereto contains a complete list of
all governmental licenses, approvals, permits and authorizations held by each
Seller which are currently used by the Sellers, including without limitation,
all licenses

                                      -9-
<PAGE>   14
associated with the Purchased Proprietary Rights (each a "License" and
collectively, "Licenses").

                  (b) To the Knowledge of the Sellers, each License is valid and
in full force and effect as of the date hereof. There is not pending or, to any
Seller's Knowledge, threatened any investigation or proceeding which could
result in the termination, revocation, limitation, suspension, restriction or
impairment of any License or the imposition of any fine, penalty or other
sanction for violation of any requirements of any License.

         4.12     PROPRIETARY RIGHTS.

                  (a) Except as set forth in SCHEDULE 4.12(a), the Purchased
Proprietary Rights include all proprietary rights used in the operation of the
Purchased Assets and the conduct of the Business as presently operated and
conducted by the Sellers.

                  (b) Each Seller owns or has the right to use pursuant to
license, sublicense, agreement or permission all Purchased Proprietary Rights
applicable to it and used in the operation of the Business as presently
conducted. Each item of Purchased Proprietary Rights owned or used by any Seller
immediately prior to the Closing hereunder will be owned or available for use by
the Buyer on identical terms and conditions immediately subsequent to the
Closing hereunder. Each Seller has taken all necessary action to maintain and
protect each item of Purchased Proprietary Rights that such Seller owns or uses.

                  (c) No Seller has interfered with, infringed upon or
misappropriated, while operating the Purchased Assets or conducting the
Business, any trademarks, trade names, service marks, trade secrets, technology,
software, operating systems, know-how, slogans, copyrights, processes, operating
rights and other similar intangible property and rights (collectively,
"Intellectual Property") of third parties, and no Seller has ever received in
writing any charge, complaint, claim, demand or notice alleging any such
interference, infringement, misappropriation or violation (including any claim
that any Seller must license or refrain from using any Intellectual Property
rights of any third party). No Seller has any Knowledge that any third party has
interfered with, infringed upon, misappropriated or otherwise come into conflict
with any Intellectual Property rights of any Seller being transferred to the
Buyer hereunder.

                  (d) With respect to the conduct of the Business, no Seller:
(i) owns any patents or patent registration, issued or pending; (ii) holds any
rights under patent licenses or patent agreements; or (iii) except as set forth
in SCHEDULE 4.12(d), has granted any license, agreement, right or other
permission to any third party with respect to its Intellectual Property.

         4.13     RELATIONSHIPS WITH CUSTOMERS AND OTHERS.

                                      -10-
<PAGE>   15
                  (a) Except as set forth on SCHEDULE 4.13, no Seller has
received, within ninety (90) days prior to the date of this Agreement, from any
current customer, representing more than 1% of the revenue of the Business any
written communication providing notice of any changes in its practices that
would have a Material Adverse Effect.

                  (b) No Seller has had any direct or indirect ownership
interest in any customer, supplier or competitor of any Seller associated with
the Business, any Person from or to whom any Seller leases real or personal
property, or any Person with whom any Seller is doing business.

         4.14     EMPLOYEE BENEFITS.

                  (a) SCHEDULE 4.14(a) identifies each "employee benefit plan",
as defined in Section 3(3) of ERISA, that: (i) is subject to any provision of
ERISA; (ii) is maintained, administered, or contributed to by any Seller or any
of its Affiliates (for purposes of this Agreement, an "Affiliate" shall mean any
person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified); and (iii) covers any employee or former employee of any Seller
(each, an "Employee Plan").

                  (b) Determination letters have been received by each Seller
confirming that each Employee Plan of such Seller which is intended to be
qualified under Section 401(a) of the Code is so qualified in form and no Seller
knows of any fact or conditions giving rise to a material likelihood that any
such plan would not be treated as so qualified by the Internal Revenue Service.

                  (c) SCHEDULE 4.14(c) identifies each employment, severance or
similar contract or arrangement (whether or not written) or any plan, policy,
fund, program or contract or arrangement (whether or not written) providing for
compensation, bonus, profit sharing, stock option, or other stock related rights
or other forms of incentive or deferred compensation, vacation benefits,
insurance coverage (including any self insured arrangements), health or medical
benefits, disability benefits, workers' compensation, supplemental unemployment
benefits, severance benefits and post employment or retirement benefits
(including compensation, pension, health, medical or life insurance or other
benefits) that: (i) is not an Employee Plan; (ii) is entered into, maintained,
administered or contributed to, as the case may be, by any Seller or any Sellers
Affiliates; and (iii) covers any Affected Employee (each a "Benefit Arrangement"
and collectively, "Benefit Arrangements").

                  (d) No Seller contributes to, has ever contributed to, or has
ever been required to contribute to any multiemployer plan or pension plan
subject to Title IV of ERISA and has no Liability (including withdrawal
liability under any multiemployer plan or pension plan subject to Title IV of
ERISA.

                  (e) No Seller maintains, has ever maintained or contributed
to, and has ever been required to contribute to, any Employee Plan or Benefit
Arrangement

                                      -11-
<PAGE>   16
providing medical, health or life insurance or other welfare type benefits for
Affected Employees, their spouses or their dependents (other than in accordance
with Code Section 4980B).

         4.15     LEGAL COMPLIANCE.

                  (a) Each Seller and its predecessor and Affiliates, if any,
have complied in all material respects with all laws (including, without
limitation, environmental protection laws and regulations, civil rights laws,
fire codes, confidentiality laws, record and document maintenance laws, zoning
ordinances, building, occupancy and use restrictions, and public and
occupational health and safety codes) applicable to the Purchased Assets and the
Business (including rules, regulations, codes, plans, injunctions, judgments,
orders, ordinances, decrees, rulings and charges thereunder) of any court or
federal, state, county, municipal, local or foreign governments (and all
agencies, commissions, boards, bureaus, or instrumentalities thereof).

                  (b) All financial records, patient records and other
documentation which each Seller is required to maintain under all federal, state
and local laws, rules, ordinances, regulations and orders applicable to the
Purchased Assets and the Business have been continuously maintained, in a timely
manner, for the requisite periods under applicable law.

                  (c) Except as set forth in SCHEDULE 4.15(c) attached hereto,
each Seller, and the Business, is in full compliance in all material respects
with all applicable health care laws, rules and regulations, including those
relating to the payment or receipt of illegal remuneration, including 42 U.S.C.
Section 1320a-7b(b) (the Medicare/Medicaid anti-kickback statute), 42 U.S.C.
1395nn (the Stark Statute), 42 U.S.C. Section 1320a-7a, 42 U.S.C. Section
1320a-7b(a), 42 U.S.C. Section 1320a-7b(c) and any applicable state law
governing kickbacks and matters similar to such federal statutes (collectively,
the "Fraud and Abuse Laws").

         4.16     NO UNRECORDED FUND, NO FALSE ENTRIES.

         No officer, partner, employee or agent of any Seller has: (i) knowingly
established or maintained any unrecorded fund (whether cash or assets) for any
purpose related to the Business; or (ii) intentionally made any false entries on
any books or records furnished in connection herewith to the Buyer.

         4.17     COMPLIANCE WITH FICTITIOUS NAME STATUTES.

         Except as set forth in SCHEDULE 4.17, no Seller conducts the Business
or any portion thereof under any fictitious name.

4.18     BROKERS' FEES.

         Except as set forth in SCHEDULE 4.18, no Seller has any liability or
obligation to pay any fees or commissions to any broker, finder or agent with
respect to the transactions contemplated

                                      -12-
<PAGE>   17
by the Operative Documents, and there are no such fees or commissions incurred
by or on behalf of any Seller for which the Buyer could become liable or
obligated.

         4.19     YEAR 2000 COMPLIANCE.

         Med-E-Net(TM) is Year 2000 Compliant when used in accordance with all
applicable documentation. For the purposes of this Agreement, "Year 2000
Compliant" means being capable of accurately processing, providing and/or
receiving date data from, into and between the twentieth and twenty-first
centuries, and leap year calculations. Notwithstanding anything in this
Agreement to the contrary, this warranty is offered only to the extent that any
and all interfacing equipment, hardware or software made, distributed or
provided by third parties is also Year 2000 Compliant and properly exchanges
date data with Med-E-Net(TM).

         4.20     SOFTWARE.

         Except as set forth in SCHEDULE 4.20, all software used in connection
with the Purchased Assets and the Business is properly licensed. All software
necessary to conduct the Business, as the Business is currently being conducted,
is listed in SCHEDULE 1.1(e) attached hereto.

         4.21     BILLING PRACTICES.

         All billing practices of each Seller to all third party payors,
including Medicare, Medicaid and any other governmental payment programs (the
"Government Programs") and private insurance companies, have been in material
compliance with all applicable laws, regulations and policies of such third
party payors and Government Programs.

                                   ARTICLE V

                   REPRESENTATIONS AND WARRANTIES OF THE BUYER

         As a material inducement to each Seller to enter into this Agreement
and to consummate the transactions contemplated hereunder, the Buyer hereby
represents and warrants to each Seller as of the date of execution of this
Agreement and as of the Closing Date as follows:

         5.1      ORGANIZATION, POWER AND AUTHORITY.

         The Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the state of Delaware, and has full corporate power
and authority to: (i) own, lease and operate its properties and to carry on its
business as it is now being conducted; (ii) enter into this Agreement; and (iii)
carry out the other transactions and agreements contemplated hereby.

         5.2      AUTHORIZATION, BINDING OBLIGATION.

         The execution and delivery of the Operative Documents to which the
Buyer is a party, and the consummation of the transactions contemplated thereby,
have been duly authorized by all requisite corporate action of the Buyer. Each
such Operative Document constitutes the legally valid and binding obligation of
the Buyer and is enforceable against the Buyer in accordance with its respective
terms, except to the extent the same may be subject to and

                                      -13-
<PAGE>   18
affected by applicable bankruptcy, receivership, insolvency, reorganization,
moratorium, fraudulent conveyance or other laws affecting the enforcement of the
rights and remedies of creditors generally.

         5.3      NO VIOLATIONS OR DEFAULTS.

         The execution, delivery and compliance with and performance by the
Buyer of the Operative Documents to which it is a party do not and will not: (i)
violate the Certificate of Incorporation or By-laws of the Buyer, or any law,
statute, rule, regulation, order, judgment or decree to which the Buyer is
subject, except where such violation would not reasonably be expected to have a
Material Adverse Effect; (ii) conflict with, or result in or constitute a
default under, or breach or violation of, or grounds for termination of, or an
event which, with notice or the lapse of time, or both, would constitute a
default under, or breach or violation of, or grounds for termination of, any
agreement or instrument to which the Buyer is a party, or by which the Buyer or
any of its assets or properties is bound, except for such conflicts, breaches,
defaults, violations or grounds for termination, which individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect; (iii) require any approval or consent which has not been obtained prior
to the Closing of any Person under the organizational documents of the Buyer, or
under any contract, agreement or other instrument (other than the Operative
Documents) to which the Buyer is a party or by which the Buyer is bound or to
which the Buyer is subject, except for failures to obtain approvals and
consents, which individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect; or (iv) result in the
termination, modification or cancellation of any license, permit, franchise,
governmental authorization or approval which is necessary for the conduct of the
Business.

         5.4      BROKERS' FEES.

         Except as set forth in SCHEDULE 5.4, the Buyer has no liability or
obligation to pay any fees or commissions to any broker, finder or agent with
respect to the transactions contemplated by the Operative Documents, and there
are no such fees or commissions incurred by or on behalf of the Buyer for which
the Sellers could become liable or obligated.

                                   ARTICLE VI

                       ADDITIONAL COVENANTS OF THE PARTIES

         6.1      CONDUCT OF THE BUSINESS PENDING THE CLOSING.

         From the date hereof until the Closing Date, each Seller shall conduct
its respective portion of the Business in the ordinary course consistent with
past practice and shall use its commercially reasonable efforts to preserve
intact 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 date hereof until the Closing
Date, no Seller will:

                  (a) adopt or propose any change in its certificate of
incorporation or bylaws;

                                      -14-
<PAGE>   19
                  (b) merge or consolidate with any entity or acquire a material
amount of assets from any entity;

                  (c) sell, lease, license or otherwise dispose of any of the
Purchased Assets;

                  (d) (i) take any action that would make any representation or
warranty of any Seller hereunder inaccurate in any material respect at, or as of
any time prior to, the Closing Date; or (ii) omit to take any action necessary
to prevent any such representation or warranty from being inaccurate in any
material respect at any such time;

                  (e) absent approval of the Buyer, amend, terminate, or
otherwise waive its rights under any Purchased Contract and Other Rights or any
Purchased Proprietary Rights applicable to such Seller; or (f) agree or commit
to do any of the foregoing.

         6.2      ACCESS TO EACH SELLER'S PREMISES, RECORDS, VENDORS AND
                  SUPPLIERS.

                  (a) Pending the Closing, each Seller will: (i) give the Buyer,
its counsel, financial advisors, auditors and other authorized representatives
reasonable access during normal business hours to the offices, properties, books
and records of such Seller pertaining to the Business, the Purchased Assets, any
Employee Plan or any Benefit Arrangement; (ii) furnish to the Buyer, its
counsel, financial advisors, auditors and other authorized representatives such
financial and operating data and other information relating to that Seller's
portion of the Business and the Purchased Assets as such Persons may reasonably
request; and (iii) instruct the employees, counsel and financial advisors of
such Seller to cooperate reasonably with the Buyer in its review of the Business
and the Purchased Assets. The foregoing shall be conducted in such manner as not
to interfere unreasonably with the conduct of the Business. Notwithstanding the
foregoing, the Buyer shall not have access to personnel records of any Seller
relating to individual performance or evaluation records, medical histories or
other information which in such Seller's good faith opinion is sensitive or the
disclosure of which could subject such Seller to risk of material liability. No
investigation by the Buyer or other information received by the Buyer shall
operate as a waiver or otherwise affect any representation, warranty or
agreement given or made by any Seller hereunder.

                  (b) Pending the Closing, each Seller will allow and consent,
which consent shall not be unreasonably withheld, to the contact by the Buyer
and its representatives of each such Seller's vendors, suppliers or clients who
are parties to the agreements which form a part of the Purchased Contract and
Other Rights and the Purchased Proprietary Rights, which the Buyer reasonably
deems necessary to be contacted in order to consummate the transactions
contemplated hereby; provided, however, that any contact and any information
obtained by the Buyer as a result of any such contact shall not affect the right
of the Buyer to rely on the representations and warranties made by each Seller
in or pursuant to any of the Operative Documents; and provided, further, that
the Buyer and its representatives will hold in strict confidence all

                                      -15-
<PAGE>   20
documents and information concerning each Seller so obtained through such
contact, and, if the sale of the Purchased Assets pursuant hereto shall not be
consummated, such confidence shall be maintained.

                  (c) On and after the Closing Date, each Party shall afford the
other and its representatives reasonable access during normal business hours to,
and the right to make copies of, all such books and records of such Party
pertaining to the Business and the Purchased Assets in connection with the
preparation, documentation and/or handling of any financial statements, tax
returns, tax audits, reports to governmental or regulatory agencies, and any
third-party litigations, disputes, claims or controversies, except to the extent
that such access would, in the good faith opinion of the Party so requested,
waive any privilege otherwise available and necessary to such Party with respect
to any pending litigation, claim, dispute or controversy to which such Party is
or could reasonably be expected to become a party to at the time of such access;
provided, that any such access by any Party shall not unreasonably interfere
with the conduct of the business of the other. Each Party will hold, and will
use its best efforts to cause its officers, directors, employees, accountants,
counsel, consultants, advisors and agents to hold, in confidence, unless
compelled to disclose by judicial or administrative process or by other
requirements of law, all confidential documents and information concerning the
other Party provided to it pursuant to this Section 6.2(c). Any Party shall bear
all out-of-pocket costs and expenses (including, without limitation, attorneys'
fees, but excluding reimbursement for general overhead, salaries and employee
benefits), reasonably incurred in connection with the foregoing.

                  (d) After the Closing, each Party and each of its Affiliates
will hold, and will use their best efforts to cause their respective officers,
directors, employees, accountants, counsel, consultants, advisors and agents to
hold, in confidence, unless compelled to disclose by judicial or administrative
process or by other requirements of law, all confidential documents and
information concerning the Business and the Purchased Assets, including any
derivative documents containing confidential information furnished to such Party
by the other, except to the extent that such information can be shown to have
been: (i) previously known on a nonconfidential basis by such Party, (ii) in the
public domain through no fault of such Party or its Affiliates or (iii) later
lawfully acquired by such Party from sources other than those related to its
prior ownership of its portion of the Business and the Purchased Assets. The
obligation of each Party and its Affiliates to hold any such information in
confidence shall be satisfied if they exercise the same care with respect to
such information as they would take to preserve the confidentiality of their own
similar information.

         6.3      NO OTHER DISCUSSIONS.

         Prior to the Closing Date, no Seller will enter into any discussion or
negotiate with or entertain or accept the unsolicited offer of any other party
concerning the potential sale of all or any part of the Purchased Assets or
stock of such Seller to, or the merger or consolidation of such Seller with, any
Person other than the Buyer.

         6.4      NONCOMPETITION AGREEMENT.

                                      -16-
<PAGE>   21
                  (a) As an inducement to the Buyer to enter into this Agreement
and to consummate the transactions contemplated hereby, no Seller, nor any of
its respective subsidiaries, for a period of three (3) years following the
Closing Date, without the prior written consent of the Buyer, shall: (i)
directly or indirectly engage, whether or not such engagement shall be as a
partner, stockholder, member, or other owner or manager, in any Competitive
Business (as defined below) engaged in business within the following states:
Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New
York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia,
North Carolina, South Carolina, Georgia, Alabama and Florida; (ii) affirmatively
assist or induce any other Person (including, without limitation, any officer or
director of any Competitive Business) to engage in any Competitive Business in
any manner described in the foregoing clause (i); provided, however, the Buyer
is then engaged, whether directly or indirectly, as a partner, stockholder,
member, or other owner or manager in any aspect of the Competitive Business. For
purposes of this Section 6.4 "Competitive Business" shall mean any business
engaged in physician practice management, billing or consulting services to
independent or hospital-affiliated or other healthcare facility-affiliated
physician practices or managed care administrative services. Anything contained
in this Section 6.4 to the contrary notwithstanding, the following shall not
constitute a breach of this Section 6.4:

                           (i) Providing consulting services in connection with
the purchase, sale, use, training, maintenance, installation, and/or
implementation of software, information technology, and/or information services
to independent or hospital-affiliated or other healthcare facility-affiliated
physician practices or any other Person;

                           (ii) Developing, manufacturing, selling and/or
providing software, information technology, and/or information services to the
Competitive Business or otherwise;

                           (iii) Entering into any agreement with any Person to
develop, sell, market, and/or provide any software, information technology,
and/or information services;

                           (iv) Providing any services, including, but not
limited to billing services, in connection with laboratory and/or pharmacy
functions; or

                           (v) Having any ownership interest in Southern State
Eye Care, L.L.C., Patient Care Dynamics, LLC, and ACRM, Inc.

         In the event that the provisions contained in this Section 6.4 shall
ever be deemed to exceed the time or geographic limits or any other limitations
permitted by applicable law in any jurisdiction, then such provisions shall be
deemed reformed in such jurisdiction to preserve the effect thereof to the
maximum extent permitted by applicable law. Notwithstanding the provisions of
Section 10.1 hereof, the provisions of this Section 6.4 shall survive the
Closing for a period of three (3) years.

                                      -17-
<PAGE>   22
                  (b) No Seller nor any of the Seller's respective Subsidiaries
shall, directly or indirectly, recruit or otherwise seek to induce by any means
(other than by general advertisement for such position or in response to an
initiative by an employee responding to such general advertisement) any Affected
Employee at any time during the one (1) year period following the Closing Date,
to terminate his or her employment, to violate any agreement with or duty to the
Buyer or any Affiliate of the Buyer, or to hire any such Affected Employee.

                  (c) No Seller nor any of its respective Subsidiaries shall
directly or indirectly, solicit or encourage any Person who is or will be (as a
result of the transactions contemplated hereby) a customer or supplier of the
Buyer or any of its Affiliates to terminate its relationship with the Buyer or
any of its Affiliates.

                  (d) Each Seller acknowledges and agrees that, because legal
remedies may be inadequate in the event of a breach of, or other failure to
perform, any of the covenants and obligations set forth in this Section 6.4, the
Buyer may, in addition to obtaining any damages available to it, enforce this
Section 6.4 by injunction and other equitable remedies. Each Seller also
acknowledges and agrees that no breach by the Buyer or any of its respective
Affiliates of, or other failure by such Person to perform, any of its covenants
and obligations under any of the Operative Documents or otherwise shall relieve
the Sellers or any of their respective Affiliates of any of the obligations
under this Section 6.4.

         6.5      PRORATIONS AND ADJUSTMENTS.

         Each Seller and the Buyer agree that the following items shall be
prorated as of the Closing Date with respect to the conduct of the Business
during the month in which the Closing occurs in accordance with the provisions
of this Section 6.5: (i) fees generated; (ii) expenses; and (iii) interest on
the Capitalized Leases. All adjustments with respect to the foregoing relating
to any period of time on or prior to the Closing Date shall be credited or
charged, as applicable, to the Sellers, and all adjustments relating to any
period of time after the Closing Date shall be credited or charged, as
applicable, to the Buyer.

         The Parties further agree to complete such proration as soon as
practicable following the Closing Date, but in no event later than the six month
anniversary of the Closing Date.

         6.6      HOLDBACK FUNDS.

         The Holdback Funds shall be deposited in escrow by the Buyer and held
by the Holdback Escrow Agent, pursuant to the terms of the Holdback Escrow
Agreement, in an interest bearing account to be invested in such a manner as is
agreed upon by the Parent and the Buyer until the six (6) month anniversary of
the Closing Date, unless a claim for indemnification is made by the Buyer within
such six-month period (the "Holdback Termination Date"). If a claim for
indemnification is made by the Buyer against any Seller prior to the Holdback
Termination Date, only such amounts which are: (i) subject to offset pursuant to
Section 6.13; or (ii) subject to such claim may be held beyond the Holdback
Termination Date until resolution of such claim pursuant to Article X hereof.
All income earned on the Holdback Funds shall be the property of

                                      -18-
<PAGE>   23
the Sellers to the same extent as the Holdback Funds, but shall be available to
pay any Seller's indemnification obligations hereunder. Thereafter, any
remaining interest not used to pay any Seller's indemnification obligations
shall be distributed in accordance with the disposition of the Holdback Funds.
Such interest income shall be reported for Tax purposes as income of the Parent.

         6.7      FURTHER ASSURANCES.

         Each of the Parties hereto, upon the request from time to time of the
other Parties hereto and without further consideration, will do each and every
act and thing as may be necessary or reasonably requested to consummate the
transactions contemplated hereby (including, without limitation, the orderly
transfer to the Buyer of the Purchased Assets and assumption by the Buyer of the
Assumed Liabilities), including without limitation: (i) by executing,
acknowledging and delivering assurances, assignments and other documents and
instruments, furnishing information and copies of documents, books and records
(including without limitation tax records); (ii) filing reports, returns,
applications, filings and other documents and instruments with governmental
authorities; and (iii) cooperating with each other Party hereto in exercising
any right or pursuing any claim, whether by litigation or otherwise, other than
rights and claims running against the Party from whom or which such cooperation
is requested. This Section 6.7 shall survive the Closing for an unlimited period
of time.

         6.8      DISCLOSURE OF BREACH OR FUTILITY.

         If, prior to Closing, any Party acquires Knowledge of: (a) a material
misrepresentation or material breach by any other Party; or (b) an event,
occurrence or circumstance making satisfaction of a condition in Article VII
hereof unlikely, the Party acquiring such Knowledge shall give prompt written
notice thereof to each other Party in sufficient detail to permit a reasonable
analysis thereof.

         6.9      POST-CLOSING RETENTION OF RECORDS.

         For the requisite periods under applicable law after the Closing Date,
each Party shall preserve and retain such corporate, accounting, legal, auditing
and other books and records pertaining to the Purchased Assets and the Business
in accordance with Section 1.1(d) thereof; provided, however, such period shall
be extended in the event that any action, suit, proceeding or investigation has
been commenced or is pending or threatened at the expiration of such period and
such extension shall continue until any such action, suit, proceeding or
investigation has been settled or resolved with finality or is no longer pending
or threatened. Notwithstanding the foregoing, a Party may discard or destroy any
of such books and records prior to the end of such period or period of extension
if such Party has given the other Party at least sixty (60) days prior written
notice of such Party's intent to discard or destroy such books and records and
has given the other Party the opportunity to take possession of any or all of
such books and records within said (60) day period. Such Party shall afford the
other Party and their representatives reasonable access during normal business
hours to, and the right to make copies of, all such books and records applicable
to it, for any legitimate purpose (including, without limitation, in connection
with the preparation, documentation and/or handling of any financial statements,
Tax Returns, Tax audits, reports to governmental or regulatory agencies,
litigations, disputes, claims or

                                      -19-
<PAGE>   24
controversies); provided, that any such access by such Party shall not
unreasonably interfere with the conduct of the business of the other. Each Party
will hold, and will use its best efforts to cause its officers, directors,
employees, accountants, counsel, consultants, advisors and agents to hold, in
confidence, unless compelled to disclose by judicial or administrative process
or by other requirements of law, all confidential documents and information
concerning the other Party provided to it pursuant to this Section 6.9. Each
Party shall bear all out-of-pocket costs and expenses (including, without
limitation, attorneys' fees, but excluding reimbursement for general overhead,
salaries and employee benefits), reasonably incurred in connection with the
foregoing. The obligation of each Party and its Affiliates to hold any such
information in confidence shall be satisfied if they exercise the same care with
respect to such information as they would take to preserve the confidentiality
of their own similar information.

         6.10     TERMINATION OF SELLERS' EMPLOYEES.

         Each Seller shall terminate, by notice in the form attached hereto as
Exhibit G and effective as of the Closing Date, all Affected Employees of such
Seller, which termination shall include termination of the active participation
of the Affected Employees in all of the Employee Plans and Benefit Arrangements
covering such Affected Employees. Each Seller shall pay all salaries, wages, and
benefits, including severance benefits and all accrued paid time off, including,
without limitation, accrued vacation and sick time off and all other like
benefits, if any, earned with respect to employment or services rendered to or
on behalf of the Sellers on or before the Closing Date or pursuant to any
retention bonus to which the Affected Employees become entitled. From and after
the Closing Date, each Seller shall remain exclusively liable for the payment to
the Affected Employees of all severance benefits and all benefits specifically
not assumed by the Buyer as an Assumed Liability, including, without limitation,
accrued vacation, sick or other like paid time off, if any. Each Seller shall
remain responsible for and shall retain any and all statutory or contractual
liabilities and obligations relating in any manner to its employees, including
the Affected Employees, former employees, their dependents and beneficiaries,
arising in connection with events or circumstances incurred or existing on or
prior to the Closing Date. Each Seller acknowledges and agrees that Buyer is
under no obligation to hire any of the Affected Employees or any former
employees of any Seller (excepting those whose names the Buyer has initialed on
SCHEDULE 4.7(A) for such term and on such conditions as the Buyer, in its sole
discretion, may determine).

         6.11     ACCOUNTS RECEIVABLE.

         After the Closing, the Sellers shall permit the Buyer to collect, in
the name of the appropriate Seller, all Purchased Receivables and other items
which shall be transferred hereunder, and to endorse with the name of such
Seller, all checks, receivables or other items received in payment for services
or items provided by the Business. Each Seller shall transfer and deliver to the
Buyer all cash and other property that each Seller may receive after the Closing
in respect of such Purchased Receivables or other items within ten (10) business
days of such receipt. To effectuate the terms and provisions of this Section
6.11, the Sellers shall designate and appoint the Buyer as their
attorney-in-fact as provided in Section 9.1 hereof.

         6.12     TAXES.

                                      -20-
<PAGE>   25
         Each Party shall be liable for, and shall timely pay, any and all
gains, transfer, sales, use, recording, registration, documentary, stamp, and
other Taxes that may result from, or be incurred in connection with,
consummation of the transactions contemplated by this Agreement which such Party
is required to pay under applicable law.

         6.13     NET WORKING CAPITAL.

         The Cash Purchase Price shall be increased or decreased, as applicable,
to the extent the Net Working Capital at Closing is greater than or less than
$400,000. As used herein, "Net Working Capital" shall equal an amount equal to:
(i) the AR Balance (as defined herein); minus (ii) the amount of the Trade
Payables at Closing; minus (iii) the amount of the Cap Lease Obligations at
Closing. A final adjustment based on the actual Net Working Capital at Closing
shall be made within six months of Closing. As used herein: (i) "AR Balance"
shall mean the accounts receivable of the Business at the Closing, with any
balance for services performed during the month in which the Closing occurs, to
be prorated for the number of days elapsed in such month, as the Buyer, using
commercially reasonable efforts, collects within six months of the Closing. The
Parties agree that any amounts collected after the Closing from a third party in
respect of the Purchased Contract and Other Rights, shall be credited to such
third party's then most aged payable, unless such third party specifies
otherwise in writing, providing a description of the dispute in such case ; (ii)
"Trade Payables" shall mean the Trade Payables assumed by the Buyer hereunder;
and (iii) "Cap Lease Obligations" shall mean the amount of the Cap Lease
Obligations assumed by the Buyer hereunder at the Closing determined in
accordance with generally accepted accounting principles.

         In the event that the Net Working Capital exceeds $400,000, the amount
of such excess shall be paid promptly by the Buyer to one or more account(s) to
be designated by the Sellers in writing. In the event that the Net Working
Capital is less than $400,000, the amount of such deficit shall be paid promptly
by the Sellers to an account to be designated by the Buyer. The Sellers agree
that the amount of such deficit shall first be paid to the Buyer out of amounts
held in the Holdback Escrow. To the extent that the Holdback Escrow is
insufficient to cover such deficit, the Sellers shall pay to the Buyer such
additional amount as is necessary to complete reimbursement to the Buyer of the
deficit amount. The Buyer and Sellers agree that the Net Working Capital shall
be calculated, and any payments owing to any Party in respect thereof shall be
paid promptly upon acceptance of such calculation in accordance with the
provisions of this Section 6.13, on or before the six month anniversary of the
Closing Date. In the event that the Parties are unable to agree on the Net
Working Capital, the Parties will work together in good faith for a period of
ten days in order to reach agreement as to the Net Working Capital. If, after
such ten-day period, the Parties remain unable to agree as to the Net Working
Capital, each Party shall submit its respective supporting documentation to KPMG
Peat Marwick, LLP (the "Independent Accountant"). The Independent Account shall
review such supporting documentation and determine the Net Working Capital,
which determination shall be final and binding upon the Parties. The cost of the
Independent Accountant shall be borne equally among the Parties.

         6.14     TIMELY COMPLIANCE WITH EMPLOYMENT RELATED LAWS.

                                      -21-
<PAGE>   26
         Each Seller shall be responsible for timely compliance with all
federal, state and local laws respecting the effect to any of the Affected
Employees of the transactions contemplated by this Agreement, including without
limitation, the Worker Adjustment and Retraining Notification Act, 29 U.S.C.
Section 2101, et. Seq. ("WARN"). The Buyer acknowledges and agrees that it shall
bear any such responsibility with respect to the actions it takes after the
Closing Date. Each Seller agrees that it will not take any action which causes
the notice provisions of WARN to be applicable to the transactions contemplated
by this Agreement.

         6.15     401(k) PLAN DISTRIBUTION AND ROLLOVER.

         Each Seller represents and warrants that benefits shall not be
distributed from such Seller's existing Section 401(k) plans to the Affected
Employees after the Closing unless such Seller either terminates such plan on or
before the Closing or subsequently receives a favorable determination letter
from the IRS providing that such distribution is provided for under the terms of
such plan and does not violate the distribution requirements under Section
401(k)(2)(B)(i)(II) and 401(k)(10) of the Internal Revenue Code of 1986, as
amended. Any determination letter request by any Seller shall include a
disclosure of this asset sale and a description of the tax-qualified plan
covering such Affected Employee established by the Buyer following the Closing.

                                  ARTICLE VII

                    CONDITIONS TO THE OBLIGATION OF THE BUYER

         The obligation of the Buyer to purchase the Purchased Assets shall be
subject to the fulfillment at or prior to the Closing Date of each of the
following conditions:

         7.1      ACCURACY OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties set forth in Article IV hereof shall
be true, complete and correct in all material respects at and as of the date
hereof, and as of the Closing Date with the same force and effect as though made
at and as of that time.

         7.2      PERFORMANCE OF OBLIGATIONS.

         Each Seller shall have performed in all material respects all of the
covenants and agreements to be performed and completed by it under the Operative
Documents prior to the Closing.

         7.3      PHILADELPHIA HEALTH AND EDUCATION CORPORATION.

         The Buyer shall have entered into (or Advanced Health Management
Corporation shall have entered into and shall have assigned to the Buyer as of
the Closing all of its rights and obligations under) the management services
agreement with Philadelphia Health and Education Corporation, substantially in
the form attached hereto as Exhibit H.

         7.4      NO PENDING OR THREATENED LITIGATION.

                                      -22-
<PAGE>   27
         No action, suit, or proceeding shall be pending or threatened before
any court or quasi-judicial or administrative agency of any Federal, state,
local or foreign jurisdiction or before any arbitrator wherein an unfavorable
injunction, judgment, order, decree, ruling or charge would: (i) prevent
consummation of any of the transactions contemplated by this Agreement; (ii)
cause any of the transactions contemplated by this Agreement to be rescinded
following consummation; or (iii) affect adversely the right of the Buyer to own
the Purchased Assets to be acquired hereunder and to operate the Business in or
substantially in the same manner as previously operated (and no such injunction,
judgment, order, decree, ruling or charge shall be in effect).

         7.5      NO CHANGE TO THE BUSINESS.

                  (a) Financial Condition. No material adverse change in the
operations, financial condition or otherwise of the Business shall have occurred
since December 31, 1998 and no fact shall have arisen which has or reasonably
could be expected to have a Material Adverse Effect; and

                  (b) Loss, Damage, Destruction. No loss, damage or destruction
(whether or not covered by insurance) to any of the Purchased Assets shall have
occurred, from the date hereof up and through the Closing Date, which has or
reasonably could be expected to have a Material Adverse Effect.

         7.6      CLOSING DELIVERIES.

         Each Seller shall have delivered to the Buyer in form reasonably
satisfactory to the Buyer and its counsel all of the documents, agreements,
certificates, instruments, information and other materials required to be
delivered by it in accordance with the provisions of Section 3.2 hereof.

                                  ARTICLE VIII

                       CONDITIONS TO OBLIGATION OF SELLERS

         The obligation of the Sellers to sell the Purchased Assets shall be
subject to the fulfillment at or prior to the Closing Date of each of the
following conditions:

         8.1      ACCURACY OF THE BUYER'S REPRESENTATIONS AND WARRANTIES.

         The representations and warranties of the Buyer set forth in Article V
hereof shall be true, complete and correct in all material respects at and as of
the date hereof, and as of the Closing Date with the same force and effect as
though made at and as of that time.

         8.2      PERFORMANCE OF OBLIGATIONS.

         The Buyer shall have performed in all material respects all of the
covenants and agreements to be performed and complied with by it under the
Operative Documents prior to the Closing.

         8.3      CLOSING DELIVERIES.

                                      -23-
<PAGE>   28
         The Buyer shall have delivered to the Sellers, in form reasonably
satisfactory to the Sellers and its counsel, all of the documents, agreements,
certificates, instruments, information and other materials required to be
delivered by it in accordance with the provisions of Section 3.3 hereof.

         8.4      NO PENDING OR THREATENED LITIGATION.

         No action, suit, or proceeding shall be pending or threatened before
any court or quasi-judicial or administrative agency of any Federal, state,
local or foreign jurisdiction or before any arbitrator wherein an unfavorable
injunction, judgment, order, decree, ruling or charge would: (i) prevent
consummation of any of the transactions contemplated by this Agreement; (ii)
cause any of the transactions contemplated by this Agreement to be rescinded
following consummation of the same.

                                   ARTICLE IX

                        CERTAIN ACTIONS AFTER THE CLOSING

         9.1      POWER OF ATTORNEY.

         Effective as of and after the Closing Date, each Seller hereby
irrevocably appoints the Buyer as such Seller's agent and attorney-in-fact, with
full power and authority in the place of such Seller and in the name of such
Seller, from time to time in the Buyer's discretion, to collect the Purchased
Receivables. Such right shall include the right to endorse the name of the
appropriate Seller on any checks received on account of such Purchased
Receivable, to deposit all amounts received by the Buyer on account of the
Purchased Receivables and otherwise to treat the Purchased Receivables as the
Buyer's property. Each Seller agrees that it will promptly tender to the Buyer
any payments received by it with respect to the Purchased Receivables.

         9.2      POST-CLOSING MATTERS.

         Any asset that is determined by the Parties' agreement, or, absent such
agreement, determined by arbitration or litigation, to be or otherwise relate to
an Excluded Asset and that is or comes into the possession, custody or control
of the Buyer (or its successors in interest or assigns, or its respective
Affiliates) shall forthwith be transferred, assigned or conveyed by the Buyer
(or its respective successors in interest or assigns and its respective
Affiliates) to the appropriate Seller, and until such transfer, assignment and
conveyance, the Buyer (and its respective successors in interest and assigns and
its respective Affiliates) shall not have any right, title or interest in such
asset but instead shall hold such asset in trust for the benefit of such Seller.
Any asset (including all remittances and mail and other communications) that is
determined by the Parties' agreement or, absent such agreement, determined by
arbitration or litigation, to be or otherwise relate to a Purchased Asset and
that is or comes into the possession, custody or control of any Seller or any
Affiliate of any Seller (or its respective successors in interest or assigns)
shall forthwith be transferred, assigned and conveyed by such Seller or the
applicable Affiliate of such Seller (or its respective successors in interest or
assigns) to the Buyer and until such transfer, assignment and conveyance, such
Seller or the applicable Affiliate of such Seller (and its respective successors
in interest and assigns) shall not have any right, title or

                                      -24-
<PAGE>   29
interest in such Purchased Asset, but instead shall hold such asset in trust for
the benefit of the Buyer. The terms of this Section 9.2 shall survive the
Closing for an unlimited period of time.

         9.3      LEGAL SUPPORT SERVICES.

         The Buyer agrees to make available to any Seller such Affected
Employees as may be requested by such Seller, in accordance with the provisions
set forth in this Section 9.3, in order to assist such Seller in the defense,
prosecution or investigation of claims made by or against any Seller and for the
enforcement of rights held by any Seller (collectively, "Legal Support
Services"). The Buyer shall have no obligation to render Legal Support Services
in those instances in which interests of any Seller directly conflict with the
interests of the Buyer. The Legal Support Services shall be rendered in
accordance with any Seller's reasonable request therefor, after giving due
regard to the operations and needs of the Buyer. The Sellers shall be solely
responsible for the reasonable out-of-pocket cost of such Legal Support
Services.

         9.4      NONASSIGNABILITY OF ASSETS.

                  (a) Notwithstanding any provision of this Agreement to the
contrary, to the extent that any Purchased Asset described in this Agreement as
being sold, assigned, transferred or conveyed ("Transferred") to the Buyer (a
"Commitment") or any claim, right or benefit arising thereunder or resulting
therefrom (collectively with all Commitments, the "Interests"), is not capable
of being Transferred without the approval, consent or waiver of the issuer
thereof or the other party thereto, or if such Transfer or attempted Transfer
would be invalid, would destroy or eliminate the Interests related thereto, or
would constitute a breach of a Commitment or a violation of any applicable law,
this Agreement shall not constitute a Transfer thereof, or an attempted Transfer
thereof in the absence of such approval, consent or waiver. The obligations of
the Buyer and the Sellers with respect to such Interests will be governed by
clause (b) hereof.

                  (b) The Parties shall co-operate in good faith to take all
actions that may be reasonably necessary to complete the Transfer of the
Purchased Assets. At all times after the Closing Date, the Parties shall take
all actions that may be reasonably required for the purpose of giving to the
Parties the full benefit of all the provisions of this Agreement in respect of
the Interests, including using their reasonable commercial efforts to cause any
third party to execute such documents and take such other actions as may be
reasonably required for such purpose. The Sellers and the Buyer will use their
reasonable commercial efforts to obtain any consent, substitution, approval or
amendment required to novate, reissue or assign all Interests. If the Sellers or
the Buyer are unable to obtain any such required consent, approval, substitution
or amendment, the Sellers (or their Affiliates) shall continue to be bound by
such Commitments and, unless not permitted by applicable law or the terms
thereof, the Buyer shall, as agent for the Seller (or its Affiliates) or as
subcontractor, pay, perform and discharge fully all the obligations (except for
any obligations that are Excluded Liabilities) of the Sellers (or their
Affiliates) thereunder arising or to be performed after the Closing Date. The
Seller (or its Affiliates) shall promptly, without further consideration, pay
and remit to the Buyer all money, rights and other consideration received in
respect of such performance by the Buyer after payment of any Taxes and
reasonable out of pocket costs due from the

                                      -25-
<PAGE>   30
Seller (or its Affiliates) with respect to such receipt. The Sellers (or their
Affiliates) shall exercise their rights and options under all such Commitments
promptly and in such manner as may be reasonably directed by the Buyer, and the
Sellers and their Affiliates shall not terminate any commitment without the
Buyer's prior consent. Furthermore, to the extent that a Commitment expires
without having been Transferred to the Buyer, the Sellers shall use their
commercially reasonable efforts to cause such Commitments to be renewed or
issued at the Buyer's request. If and when any such approval, consent or waiver
shall be obtained or such Commitment shall otherwise become assignable or able
to be novated, the assignment by the Sellers of the Interests and the assumption
by the Buyer of the Assumed Liabilities related to such Interests shall become
effective automatically as of such time, without further action on the part of
the Sellers, the Buyer or any of their respective Affiliates, and without
payment of further consideration. To the extent that the assignment of any
Interest or the proceeds thereof pursuant to this Section 1.3 is prohibited by
any applicable law, the assignment provisions of this paragraph shall operate to
create a subcontract or agency with the Buyer to perform each relevant,
unassignable Commitment, subject to its terms, and the subcontract price shall
be equal to the money, rights and other consideration received by the Sellers
(net of any Taxes imposed on the Sellers or any of its Affiliates with respect
to such money, rights or other consideration) in respect of the performance by
the Buyer under such subcontract.

                  (c) The provisions of this Section 1.3 shall not apply to the
licenses and permits listed on SCHEDULE 1.1(h) hereof.

                  (d) Notwithstanding the provisions of Section 10.1 hereof, the
provisions of this Section 9.4 shall survive the Closing until the expiration of
all Interests, after giving effect to the provisions of 9.4(b) above.

         9.5      THIRD PARTY CONSENTS AND TERMINATION STATEMENTS

                  (a) Notwithstanding anything else herein, the Buyer hereby
acknowledges that the Sellers have not obtained and shall not deliver at
Closing: (i) any third party consents required for the valid transfer and
assignment of any of the Purchased Assets; or (ii) any UCC-3 termination
statements (the "Termination Statements") and that such non-deliveries do not
constitute a breach of any representation, warranty or covenant of the Seller,
give rise to any indemnification right of the Buyer or constitute a failure or
non-fulfillment of any condition precedent to the Buyer's obligations hereunder.

                  (b) The Sellers shall deliver executed UCC-3 termination
statements from Progress Bank to the Buyer, in form and substance suitable for
filing with the appropriate filing office and reasonably satisfactory to the
Buyer within five business days of the Closing and shall deliver to the Buyer a
copy of the promissory note evidencing Integrated Medical Management, Inc.'s
indebtedness to Progress Bank marked "Paid in Full" as soon as is practicable
following the Closing.

                  (c) Nothing set forth in this Section 9.5 shall limit the
Seller's obligations set forth in Section 9.4.

                                      -26-
<PAGE>   31
                                   ARTICLE X

                                 INDEMNIFICATION

         10.1     SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         All the representations and warranties contained in Articles iv and v
and all covenants contained herein, unless otherwise indicated, shall survive
the Closing for a period of twenty-four (24) months from the Closing; provided,
however, that as to any representation or warranty related to any tax, such
representation or warranty shall survive until the later of: (a) twenty-four
(24) months following the Closing; or (b) the thirtieth day following the
expiration of any applicable statute of limitations.

         10.2     THE BUYER'S RIGHT TO INDEMNIFICATION.

         Subject to Section 10.5, the Parent, on behalf of itself and each of
its successors and assigns, hereby agrees to indemnify and hold harmless the
Buyer and its Affiliates (the "Buyer Indemnitees") from and against: (i) any and
all losses, obligations, liabilities, damages, claims, deficiencies, costs and
expenses (including, but not limited to, the amount of any settlement and all
reasonable legal and other expenses incurred in connection with the
investigation, prosecution or defense of the matter) (collectively,
"Liabilities"), which may be asserted against or sustained or incurred by the
Buyer Indemnitees in connection with, arising out of, or relating to (a) the
Excluded Liabilities, (b) any inaccuracy in, misrepresentation or breach of any
of the representations, warranties, agreements and covenants made by any Seller
in the Operative Documents; and (ii) any and all costs and expenses (including,
but not limited to, reasonable legal expenses) incurred by the Buyer Indemnitees
in connection with the enforcement of their respective rights under the
Operative Documents.

         10.3     SELLERS' RIGHT TO INDEMNIFICATION.

         The Buyer hereby agrees to indemnify and hold harmless each Seller and
its Affiliates (the "Seller Indemnitees") from and against: (i) any and all
Liabilities which may be asserted against or sustained or incurred by the Seller
Indemnitees in connection with, arising out of, or relating to any inaccuracy
in, misrepresentation or breach of any of the representations, warranties,
agreements and covenants made by the Buyer in the Operative Documents including,
without limitation, the payment and/or performance by the Buyer of the Assumed
Liabilities as provided herein; and (ii) any and all costs and expenses
(including, but not limited to, reasonable legal expenses) incurred by the
Seller Indemnitees in connection with the enforcement of their respective rights
under the Operative Documents.

         10.4     TERMS AND CONDITIONS OF INDEMNIFICATION.

         The obligations and liabilities of the indemnifying parties hereunder
shall be subject to the following terms and conditions:

                                      -27-
<PAGE>   32
                  (a) Notice of Claims; Dispute of Liability. Any Party claiming
any right of indemnification under the indemnity agreements contained in Section
10.2 or Section 10.3 above (an "Indemnified Party") shall promptly notify the
Party or Parties from whom indemnification is sought (the "Indemnifying
Parties") pursuant to the provisions hereof, specifying the nature of the claim
and the amount or the estimated amount thereof and giving notice of any fact
upon which such Indemnified Party intends to base a claim for indemnification
hereunder (a "Claim Notice"). In the case of a third party's claim or threatened
claim against an Indemnified Party hereunder (a "Third Party Claim"), the
Indemnifying Parties shall have thirty (30) days (the "Notice Period") to notify
the Indemnified Party whether or not they dispute their liability for
indemnification of such claim; provided, however, that the Notice Period for a
Third Party Claim shall be reduced if the date on which a responsive pleading or
other document is required to be filed giving effect to any available extension
occurs sooner than thirty (30) days following receipt of a Claim Notice
therefor. In the event the Indemnifying Parties shall have disputed their
liability for any Third Party Claim in accordance with the provisions of this
Section 10.4(a), the Indemnified Party shall have the right to control the
defense or settlement of such claim, in its sole discretion and at its expense;
provided, however, that the Indemnified Party shall be reimbursed by the
Indemnifying Parties for the costs and expenses of such defense if it shall
thereafter be found that such Third Party Claim was subject to indemnification
by the Indemnifying Parties hereunder. If an Indemnifying Party does not notify
the Indemnified Party within the Notice Period that it disputes liability for a
claim for which it has received a Claim Notice, such Indemnifying Party shall be
liable to pay the indemnity amount to the Indemnified Party.

                  (b) Claims Against an Indemnitee. In the event any Third Party
Claim is brought against an Indemnified Party with respect to which the
Indemnifying Parties may have liability under the indemnity agreement contained
in Section 10.2 or 10.3 above, the Indemnifying Parties shall elect to either:
(i) defend against such Third Party Claim; or (ii) fund the fees and expenses of
the defense thereof, which election shall be made within the Notice Period. The
counsel selected by the Indemnifying Parties to defend an Indemnified Party in
any such Third Party Claim shall be subject to the consent of such Indemnified
Party, which consent shall not be unreasonably withheld or delayed. The
Indemnified Party shall have the right to employ its own counsel in any case
defended by the Indemnifying Parties, but the fees and expenses of such counsel
shall be at such Indemnified Party's expense unless (a) both the employment of
such counsel and the payment of such fees and expenses shall have been
specifically authorized by the Indemnifying Parties in connection with the
defense of such Third Party Claim, or (b) such Indemnified Party shall have
reasonably concluded and specifically notified the Indemnifying Parties that
there may be specific defenses available to it which are different from or
additional to those available to the Indemnifying Parties or that such Third
Party Claim involves or could have an effect upon matters beyond the scope of
the indemnity agreement contained in Section 10.3 above, in any of which events
the Indemnifying Parties, to the extent made necessary by such defenses, shall
not have the right to direct the defense of such Third Party Claim on behalf of
such Indemnified Party. In such case, only that portion of such fees and

                                      -28-
<PAGE>   33
expenses reasonably related to matters covered by the indemnity agreement
contained in said Section 10.3 shall be borne by the Indemnifying Parties.

                  (c) Access to Information. The Indemnified Party shall be kept
fully informed of any Third Party Claim for which it has sought indemnification
under this Article X at all stages thereof. The Indemnifying Parties shall make
available to the Indemnified Party and its attorneys and accountants all books
and records of the Indemnifying Parties relating to such Third Party Claim and
the Parties hereto agree to render to each other such assistance as they may
reasonably require of each other in order to ensure the proper and adequate
defense of any such Third Party Claim.

                  (d) Settlement of Claims. If the Indemnifying Parties are
defending a Third Party Claim on behalf of an Indemnified Party hereunder, they
shall not settle such claim without first obtaining the written consent of the
Indemnified Party or Parties, which consent shall not be unreasonably withheld
or delayed.

         10.5     PAYMENT OF INDEMNITY OBLIGATIONS; CERTAIN LIMITATIONS ON
                  PARENT'S/SELLERS' INDEMNITY OBLIGATIONS.

         Any and all amounts due for indemnity hereunder shall be paid promptly
as indemnifiable damages or losses are incurred, as follows: (i) in the case of
a Buyer Indemnitee, pursuant to the Holdback Escrow Agreement, to the extent
Holdback Funds are available therefor; (ii) in the event Holdback Funds are not
available therefor or in the case of a Seller Indemnitee, within thirty (30)
days after written demand therefor; provided, however, that no Party shall have
the obligation, nor, in the case of a Buyer Indemnitee, shall any Holdback Funds
be used, to indemnify any Indemnitee for any Liabilities under Section 10.2 or
10.3 above, as applicable, which may be asserted against or sustained or
incurred by such Indemnitee in connection with, arising out of, or relating to
any inaccuracy in, misrepresentation, breach or alleged breach of any of the
representations, warranties, agreements and covenants made by any Party in the
Operative Documents which do not relate to: (i) the Purchased Assets; or (ii)
the Parties' agreement with respect to Excluded Liabilities set forth in Section
2.3 above, unless and until the aggregate indemnifiable amount of such
Liabilities for the Buyer or one or more of the Sellers as a group, as the case
may be, equals or exceeds $50,000; and provided, further, however, that in the
event the Buyer, any Seller, or the Sellers as a group indemnify and pay,
pursuant to Section 10.2 or 10.3 above to any Indemnitee, or the Indemnitees as
a group, indemnifiable amounts in the aggregate equal to the Purchase Price,
irrespective of whether such indemnifiable amounts were paid solely out of funds
of the Buyer, or one or more of the Sellers, (or in the case of any Seller, in
combination with payments from the Holdback Funds, no Party shall have any
further obligation to indemnify any Indemnitee for any indemnifiable amounts
pursuant to Section 10.2 or 10.3. Payments shall be made in accordance with the
Indemnified Party's reasonable instruction at the time.

                                   ARTICLE XI

                                  MISCELLANEOUS

         11.1     FAILURE OF CONDITIONS; BREACH.

                                      -29-
<PAGE>   34
                  (a) Failure of Conditions to Sellers' Performance. In the
event that any of the conditions set forth in Article VIII of this Agreement
have not been satisfied on or before the Closing Date, time being of the
essence, and each Seller has satisfied its material obligations hereunder, then,
unless each Seller has given the Buyer prior written notice of such Seller's
decision to waive such conditions, any Seller may terminate this Agreement
without prejudice to any rights and remedies available to any Seller.

                  (b) Failure of Conditions to the Buyer's Performance. In the
event that any of the conditions set forth in Article VII of this Agreement have
not been satisfied on or before the Closing Date, time being of the essence, and
the Buyer has satisfied its material obligations hereunder, then, unless the
Buyer has given each Seller prior written notice of the Buyer's decision to
waive such conditions, the Buyer may terminate this Agreement without prejudice
to any rights and remedies available to the Buyer.

                  (c) The Buyer may terminate this Agreement by giving written
notice to each Seller at any time prior to the Closing in the event any Seller
has breached any representation, warranty or covenant contained in this
Agreement in any material respect.

                  (d) Any Seller may terminate this Agreement by giving written
notice to the Buyer at any time prior to the Closing in the event the Buyer has
breached any representation, warranty or covenant contained in this Agreement in
any material respect.

         11.2     TERMINATION OF OBLIGATIONS BY MUTUAL AGREEMENT.

         Anything to the contrary herein notwithstanding, this Agreement may be
terminated and the transactions contemplated hereby may be abandoned by the
mutual written consent of all of the Parties hereto at any time prior to the
Closing Date, and no Party shall have any liability for any costs, expenses,
losses of anticipated profits or any further obligation for breach of warranty
or otherwise to any other party to the Operative Documents.

         11.3     RISK OF LOSS OF PURCHASED ASSETS PRIOR TO CLOSING.

         The risk of any loss to the properties to be sold by each Seller
hereunder and all liability with respect to injury and damage occurring in
connection therewith shall be the sole responsibility of such Seller until the
completion of the Closing.

         11.4     DISCLOSURE SCHEDULES.

         Any item listed on any schedule attached hereto and made a part hereof
by either Party shall be deemed to have been disclosed to the other Party on all
such schedules for purposes hereof.

         11.5     BINDING EFFECT.

                                      -30-
<PAGE>   35
         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

         11.6     ENTIRE AGREEMENT.

         This Agreement together with the other Operative Documents contains the
entire agreement of the Parties with respect to the purchase of the Purchased
Assets and the other transactions contemplated herein, and supersede all prior
understandings and agreements of the Parties with respect to the subject matter
hereof. Any reference herein to this Agreement shall be deemed to include the
exhibits and schedules attached hereto and any reference herein to the Operative
Documents shall be deemed to include the exhibits and schedules attached
thereto.

         11.7     EXECUTION IN COUNTERPART.

         This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which together shall constitute one
and the same agreement.

         11.8     NOTICES.

         All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been given if delivered personally,
sent by Federal Express or other similar overnight delivery service providing
evidence of receipt, or mailed via certified mail, return receipt requested,
postage prepaid as follows:

If to the Sellers:         Advanced Health Corporation
                           560 White Plains Road, 2nd Floor
                           White Plains, New York 10591
                           Attn:  Chief Executive Officer
                           and General Counsel

with a copy to:            O'Sullivan, Graev & Karabell, LLP
                           30 Rockefeller Plaza
                           New York, New York 10112
                           Attn:  Jonathan Rosenberg, Esq.

If to the Buyer:           PractiCare, Inc.
                           4 Griffin Road North
                           Windsor, Connecticut 06095
                           Attn:  President

with a copy to:            McDermott, Will & Emery
                           28 State Street
                           Boston, Massachusetts 02109
                           Attn:  Michael L. Blau, Esq.

         Any Party may change the address to which notices hereunder are to be
sent to it by giving written notice of such change of address in the manner
herein provided for giving notice. Any notice delivered personally shall be
deemed to have been given on the date it is so delivered,

                                      -31-
<PAGE>   36
and any notice delivered by registered or certified mail shall be deemed to have
been given on the date it is received.

         11.9     GOVERNING LAW.

         This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be
performed therein.

         11.10    REPRESENTATION BY COUNSEL.

         Each Party hereto represents and agrees that it has been represented by
legal counsel in connection with the negotiation, formation and execution of
this Agreement.

         11.11    ASSIGNMENT, SUCCESSORS AND ASSIGNS.

         This Agreement and the rights and obligations of each Seller hereunder
shall not be assignable or transferable by any Seller without the prior written
consent of the Buyer. The Buyer, on or after the Closing Date, may assign or
transfer this Agreement and its rights and obligations hereunder, including,
without limitation, the Noncompetition Agreement, without the prior written
consent of any Seller. All of the terms and provisions of this Agreement shall
be binding on and inure to the benefit of the Parties' respective successors and
permitted assignees.

         11.12    SPECIFIC PERFORMANCE.

         The Sellers acknowledge that the Business and the Purchased Assets are
unique, that a failure by the Sellers to complete the transactions contemplated
by this Agreement will cause irreparable injury to the Buyer, and that actual
damages for any such failure may be difficult to ascertain and may be
inadequate. Accordingly, the Buyer shall be entitled to specific performance of
any of the provisions of this Agreement in addition to any other legal or
equitable remedies to which the Buyer may otherwise be entitled for a failure by
the Seller to complete the transactions contemplated by this Agreement.

         11.13    SEVERABILITY.

         Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -32-
<PAGE>   37
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day and year first above written.

                                      SELLERS:

                                      ADVANCED HEALTH MANAGEMENT
                                      CORPORATION

                                      By:   /s/ Jeffrey M. Sauerhoff
                                            ----------------------------------
                                            Name: Jeffrey M. Sauerhoff
                                            Title: Chief Financial Officer

                                      INTEGRATED MEDICAL MANAGEMENT, INC.

                                      By:   /s/ Jeffrey M. Sauerhoff
                                            ----------------------------------
                                            Name: Jeffrey M. Sauerhoff
                                            Title: Chief Financial Officer

                                      ADVANCED HEALTH CORPORATION
                                      d/b/a AHT CORPORATION

                                      By:    /s/ Jeffrey M. Sauerhoff
                                             ----------------------------------
                                             Name: Jeffrey M. Sauerhoff
                                             Title: Chief Financial Officer

                                      BUYER:

                                      PRACTICARE, INC.

                                      By:    /s/ C. Douglas Collins
                                             ----------------------------------
                                             Name: C. Douglas Collins, MD
                                             Title: President
<PAGE>   38
                                    SCHEDULES

Schedule 1.1(a)        Fixed Assets
Schedule 1.1(b)        Purchased Receivables
Schedule 1.1(c)        Purchased Contract and Other Rights; Assumed Encumbrances
Schedule 1.1(d)        Purchased Operating Data and Records
Schedule 1.1(e)        Purchased Proprietary Rights
Schedule 1.1(f)        Prepaid Expenses
Schedule 1.1(g)        Telephone and Facsimile Numbers
Schedule 1.1(h)        Licenses and Permits
Schedule 2.1(a)(ii)(x) Assumed Ordinary Trade Payables
Schedule 2.1(a)(ii)(y) Assumed Equipment-Related Payables
Schedule 2.1(b)        Fed Funds Wire Transfer Instructions
Schedule 2.3           Purchase Price Allocation
Schedule 4.2           Capital Structure
Schedule 4.6           Litigation
Schedule 4.7(a)        Affected Employees
Schedule 4.7(b)        Employees; Employment Terms
Schedule 4.11          Licenses
Schedule 4.12(a)       Corporate Services
Schedule 4.12(d)       Proprietary Rights
Schedule 4.13          Relationships with Customers
Schedule 4.14(a)       Employee Plans
Schedule 4.14(c)       Benefit Arrangements
Schedule 4.15(c)       Non-Compliance with Health Care Laws, Rules or
                       Regulations
Schedule 4.17          Compliance with Fictitious Name Statutes
Schedule 4.18          Brokers' Fees of Sellers
Schedule 4.20          Software
Schedule 5.4           Brokers' Fees of Buyer
Schedule 11.7          Finders' Fees

EXHIBITS

Exhibit A   Form of Holdback Escrow Agreement
Exhibit B   Form of General Assignment and Assumption Agreement and Bill of Sale
Exhibit C   Progress Bank Payoff Letter
Exhibit D   Form of Opinion of Special Counsel to the Sellers
Exhibit E   Form of Section 1445(b)(2) Certification
Exhibit F   Form of Opinion of Counsel to the Buyer
Exhibit G   Form of Termination Notice
Exhibit H   PHEC Management Services Agreement
<PAGE>   39
                            ASSET PURCHASE AGREEMENT

                                  by and among

                     ADVANCED HEALTH MANAGEMENT CORPORATION,

                             a Delaware corporation,

                      INTEGRATED MEDICAL MANAGEMENT, INC.,

                             a Delaware corporation,

                          ADVANCED HEALTH CORPORATION,
                             d/b/a AHT CORPORATION,

                             a Delaware corporation

                                 as the Sellers,

                                       and

                                PRACTICARE, INC.,

                             a Delaware corporation

                                  as the Buyer

                               Dated May 14, 1999
<PAGE>   40
                                    EXHIBIT A

                            HOLDBACK ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "Agreement") is made and entered into as of
the __ day of May, 1999, by and between ADVANCED HEALTH MANAGEMENT CORPORATION,
a Delaware corporation, INTEGRATED MEDICAL MANAGEMENT, INC., a Delaware
corporation and ADVANCED HEALTH CORPORATION d/b/a AHT CORPORATION, a Delaware
corporation ("Parent") (collectively, "Sellers"), PRACTICARE, INC., a Delaware
corporation ("Buyer") and State Street Bank and Trust Company ("Escrow Agent").

                                R E C I T A L S:

         WHEREAS, Sellers and Buyer have entered into that certain Asset
Purchase Agreement, dated May , 1999 (the "Asset Purchase Agreement") for the
sale by Sellers, and the purchase by Buyer, of certain of Sellers' assets; and

         WHEREAS, a condition to the obligation of Buyer and Sellers to
consummate the transactions contemplated by the Asset Purchase Agreement is that
this Agreement shall have been executed and delivered; and

         WHEREAS, unless otherwise defined herein, the capitalized terms used in
this Agreement shall have those meanings set forth in the Asset Purchase
Agreement, a copy of which is attached hereto; and

         WHEREAS, this Agreement is the Escrow Agreement regarding those certain
holdback funds contemplated by Section 2.1(b) of the Asset Purchase Agreement.

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

1. Recitals. The foregoing recitals are true and correct and form a part of this
Agreement.

2. Escrowed Proceeds. At the time of the execution of this Agreement, Buyer
shall deliver to Escrow Agent $450,000, in accordance with the terms and
conditions of the Asset Purchase Agreement (the "Holdback Funds"). All parties
acknowledge that the Holdback Funds will be held by Escrow Agent in a segregated
account and that such interest as is earned thereon will be reported on Parent's
EIN number.

3. Operation of Holdback Escrow. The Buyer and the Sellers agree and acknowledge
that the Holdback Funds shall be governed in accordance with Section 6.6 of the
Asset Purchase Agreement.
<PAGE>   41
4. Investment of the Holdback Funds. The Escrow Agent shall invest the Holdback
Funds in either treasury obligations of the United States government or in a
money market fund which maintains deposit insurance which is adequate to cover
such Holdback Funds. The Escrow Agent shall not be liable or responsible in any
manner for any loss or depreciation resulting from any such investment or for
any costs in connection therewith. All earnings received from the investment of
the Holdback Funds shall be credited to, and shall become a part of, the
Holdback Fund (and any losses on such investments shall be debited from the
Holdback Funds). The Escrow Agent shall have no liability for any investment
losses, including any losses on any investment required to be liquidated prior
to maturity in order to make a payment required hereunder.

5. Escrow Agent's Duties.

         (a) The Escrow Agent shall be obligated only for the performance of
such duties as are specifically set forth herein, and as set forth in any
additional written escrow instructions which Escrow Agent may receive after the
date of this Agreement which are signed by an officer of Buyer, Parent and
Escrow Agent, each of which are ministerial (and shall not be construed to be
fiduciary) in nature, and no implied duties or obligations of any kind shall be
read into this Agreement against or on the part of the Escrow Agent.

         (b) If Escrow Agent receives notice from either Buyer or Parent to
release any or all Holdback Funds (a "Release Notice") to such party (the
"Requesting Party"), Escrow Agent shall deliver a copy of such Release Notice to
the other party not requesting such release (the "Non-Requesting Party") by
certified mail, return receipt requested. If Escrow Agent does not receive a
written objection (an "Objection Notice") to such release from the
Non-Requesting Party within ten (10) business days of the date upon which the
copy of such Release Notice was received by the Non-Requesting Party, as
indicated on the certified mail receipt, Escrow Agent shall release to the
Requesting Party the exact amount of Holdback Funds requested by the Requesting
Party. If Escrow Agent does receive a written objection to such release from the
Non-Requesting Party within such ten (10) business day period, Escrow Agent
shall continue to hold, and shall not release, such disputed portion of the
Holdback Funds requested by the Requesting Party until otherwise directed by
written notice from both Buyer and Parent. The Escrow Agent shall release or
distribute the Holdback Funds promptly (i) to the Requesting Party in accordance
with either the Release Notice or joint instructions as set forth above; (ii) to
the Sellers, in the absence of any Release Notice or Objection Notice from
either the Buyer or the Parent, received by the Escrow Agent at 5:00 p.m.
Eastern Time upon the six month anniversary of this Agreement; or (iii) to the
Sellers, such portion of the Holdback Funds which is not the subject of any
Release Notice between the Buyer and the Sellers upon the six month anniversary
of this Agreement.

         (c) The Escrow Agent is hereby expressly authorized to respond to
orders or process of courts of law, and is hereby expressly authorized to comply
with any final order, decree or judgement of a court in the United States of
America, the time for perfection of an appeal of such order, decree and judgment
having expired; provided, however, the Escrow Agent shall not be

                                      -2-
<PAGE>   42
obligated to take any legal or other action hereunder which might in its
judgment involve or cause it to incur any expense or liability unless it shall
have been furnished with acceptable indemnification. In case Escrow Agent obeys
or complies with any such order, judgment or decree of any court, Escrow Agent
shall not be liable to any of the parties hereto or to any other person by
reason of such compliance, notwithstanding any such order, judgment or decree
being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction.

         (d) The Escrow Agent shall not be liable in any respect on account of
the identity, authority or rights of the parties hereto executing or delivering
or purporting to execute or deliver this Agreement, unless the Escrow Agent has
actual knowledge to the contrary.

         (e) The Escrow Agent shall not be liable for the expiration of any
rights under any statute of limitations with respect to this Agreement.

         (f) In performing any duties under this Agreement, Escrow Agent shall
not be liable to any party for damages, losses, or expenses, except for gross
negligence or willful misconduct on the part of Escrow Agent. In no event shall
the Escrow Agent be liable for indirect, punitive, special or consequential
damage or loss (including but not limited to lost profits) whatsoever, even if
the Escrow Agent has been informed of the likelihood of such loss or damage and
regardless of the form of action. Further, Escrow Agent shall not incur any such
liability for: (i) any act or failure to act made or omitted in good faith; or
(ii) any action taken or omitted in reliance upon any instrument, properly given
and consistent with the provisions contained in this Agreement, including any
written statement of affidavit provided for in this Agreement that Escrow Agent
shall in good faith believe to be genuine, nor will Escrow Agent be liable or
responsible for forgeries, fraud, impersonations, or determining the scope of
any representative authority. In addition, Escrow Agent may consult with legal
counsel, including in-house counsel, in connection with Escrow Agent's duties
under this Agreement and shall be fully protected in any act taken, suffered, or
permitted by him/her in good faith in accordance with the written advice of
counsel. The Escrow Agent is not responsible for determining and verifying the
authority of any person acting or purporting to act on behalf of any party to
this Agreement, unless the Escrow Agent has actual knowledge to the contrary.

         (g) The Escrow Agent may resign at any time upon giving at least thirty
(30) days written notice to the parties; provided, however, that no such
resignation shall become effective until the appointment of a successor escrow
agent which shall be accomplished as follows: the parties shall use their best
efforts mutually to agree on a successor escrow agent within thirty (30) days
after receiving such notice. If the parties fail to agree upon a successor
escrow agent within such time, Escrow Agent shall have the right to appoint a
successor escrow agent. The successor escrow agent shall execute and deliver an
instrument accepting such appointment and it shall, without further acts be
vested with all the estates, properties, rights, powers and duties of the
predecessor escrow agent as if originally named as escrow agent. Upon
appointment of a successor escrow agent and transfer of the Holdback Funds
(together with all interest and dividends earned thereon) to the successor
escrow agent, Escrow Agent shall be

                                      -3-
<PAGE>   43
discharged from any further duties and liability under this Agreement.
Notwithstanding anything else herein, any company into which Escrow Agent may be
merged or with which it may be consolidated, or any company to whom Escrow Agent
may transfer a substantial amount of its escrow business, shall be the successor
to Escrow Agent without the execution or filing of any paper or any further act
on the part of any of the parties anything herein to the contrary
notwithstanding.

6. Fees and Costs. The Buyer agrees to pay and reimburse the Escrow Agent for
its attorney's fees and expenses incurred in connection with the preparation of
this Agreement and to pay all fees of Escrow Agent for performance of its duties
hereunder in accordance with the standard fee schedule of Escrow Agent. The
Buyer shall also reimburse Escrow Agent for all reasonable expenses incurred by
it in performance of its duties under this Agreement. It is understood that the
fees and usual charges agreed upon for services of Escrow Agent shall be
considered compensation for ordinary services as contemplated by this Agreement.
In the event that the conditions of this Agreement are not promptly fulfilled,
or if Escrow Agent renders any service not provided for in this Agreement, or if
the parties hereto request a substantial modification of its terms, or if any
controversy arises, or if Escrow Agent is made a party to, or intervenes in, any
litigation pertaining to the Holdback Funds or its subject matter, the Buyer and
Sellers agree, jointly and severally, to pay or reimburse the Escrow Agent for
such extraordinary services and for all costs, attorney's fees, including
allocated costs of in-house counsel, and expenses occasioned by such default,
delay, controversy or litigation.

7. Further Provisions Relating to Holdback Funds. It is understood and agreed
that Escrow Agent shall:

         (a)      Not be charged with any knowledge of or be bound by or be
                  under any duty to enforce any of the terms or conditions of
                  the Asset Purchase Agreement;

         (b)      Be protected in acting upon any notice, written request,
                  certificate approval, consent or other paper believed by it to
                  be genuine and to be signed by the proper party or parties;

         (c)      Be conclusively deemed to have given and delivered any notice
                  required to be given or delivered hereunder if the same is in
                  writing, signed by it and mailed, by registered or certified
                  mail, in a sealed, postage prepaid wrapper, addressed to the
                  appropriate party at its address herein set out;

         (d)      Be entitled to consult with its counsel, including in-house
                  counsel, and shall not be liable for any action taken or
                  admitted by it in accordance with the opinion and advice of
                  such counsel whether such counsel be a member of its staff or
                  independent counsel;

         (e)      Be indemnified and held harmless by Buyer and Sellers, and
                  their respective successors and assigns, jointly and
                  severally, against any and all claims made against Escrow
                  Agent by reason of its acting or failing to act in connection
                  with

                                      -4-
<PAGE>   44
                  any of the transactions contemplated hereby and against any
                  and all losses, claims, damages, liabilities, actions, suits
                  or proceedings at law or in equity or any other expenses,
                  including reasonable attorneys' fees, it may sustain or with
                  which it may be threatened by reason of it acting as Escrow
                  Agent under this Agreement, except such claims which are
                  occasioned by its gross negligence or willful misconduct; and

         (f)      Not be liable to Buyer or Sellers, or to any other person or
                  entity, with respect to any action taken or omitted to be
                  taken by Escrow Agent in good faith (except where such action
                  amounts to gross negligence on the part of the Escrow Agent).

         (g)      The Escrow Agent shall have no more or less responsibility or
                  liability on account of any action or omission of any
                  book-entry depository, securities intermediary or other
                  subescrow agent employed by the Escrow Agent than any such
                  book-entry depository, securities intermediary or other
                  subescrow agent has to the Escrow Agent, except to the extent
                  that such action or omission or any book-entry depository,
                  securities intermediary or other subescrow agent was caused by
                  the Escrow Agent's own gross negligence, bad faith or willful
                  misconduct in breach of this Agreement.

                  The foregoing indemnification and agreement to hold harmless
                  of this Section 7 shall survive the termination of this
                  Agreement.

8. Controversies; Escrow Agent's Right to Interplead. If any controversy arises
between the parties, or with any other party, concerning the subject matter of
this Agreement, its terms or conditions, Escrow Agent will not be required to
determine the controversy or to take any action regarding it. The Escrow Agent
may (at its sole option and election) hold all documents and cash balances until
such dispute shall have been settled either by the mutual written agreement of
the parties involved or by a final order, decree or judgment of a court in the
United States of America, the time for perfection of an appeal of such order,
decree and judgment having expired. The Escrow Agent may, but shall be under no
duty whatsoever to, institute or defend any legal proceedings which relate to
the Holdback Funds. In such event, Escrow Agent will not be liable for any
damage, costs or liabilities. Furthermore, in the event that any controversy
should arise between Buyer and Sellers during the term of this Agreement
concerning the right to any of the Holdback Funds, Escrow Agent shall have the
right to interplead any or all of the Holdback Funds into a court of competent
jurisdiction located in the Commonwealth of Massachusetts, for the purpose of
determining the party or parties entitled thereto. All costs, expenses, charges
and reasonable attorneys' fees incurred by Escrow Agent due to the interpleader
action shall be borne jointly and severally by the Buyer and the Sellers.

9. Termination of Escrow Agent's Liability. The Escrow Agent's responsibilities
and liabilities hereunder shall terminate upon payment by Escrow Agent of the
Holdback Funds in accordance with the provisions of this Agreement. In addition,
Escrow Agent's liability hereunder shall terminate upon its interpleading such
Holdback Funds.

                                      -5-
<PAGE>   45
10. Notices. Any notice or other communication required or which may be given
hereunder shall be in writing and either be delivered personally or be mailed,
certified or registered mail, postage prepaid, and shall be deemed given when so
delivered personally, or if mailed, five (5) days after the date of mailing, as
follows:

   If to Buyer to:          PractiCare, Inc.
                            4 Griffin Road North
                            Windsor, CT 06095
                            Attn:  President
                            Tel: (860) 688-5370
                            Fax: (860) 688-5990

   with a copy to:          McDermott, Will & Emery
                            28 State Street
                            Boston, MA  02109
                            Attn:  Michael L. Blau, Esq.
                            Tel: (617) 535-4010
                            Fax: (617) 535-3800

   If to Sellers:           c/o Advanced Health Corporation
                            555 White Plains Road, 5th Floor
                            Tarrytown, NY  10591
                            Attn:  President and General Counsel
                            Tel:  (914) 524-4200
                            Fax: (914) 332-1741

   If to Escrow Agent to:   State Street Bank & Trust Company
                            Corporate Trust Department, Fourth Floor
                            2 International Place
                            Boston, MA  02110
                            Attn:  PractiCare/Advanced Health Escrow
                            Tel: (617) 664-5311
                            Fax: (617) 664-5374

         The parties may change the persons and addresses to which the notices
or other communications are to be sent by giving written notice of any such
change in the manner provided herein for giving notice.

         (a)      Wiring Instructions. Any funds to be paid to or by the Escrow
                  Agent hereunder shall be sent by wire transfer pursuant to the
                  following instructions (or by such method or payment and
                  pursuant to such instruction as may have been given in advance
                  and in writing to or by the Escrow Agent, as the case may be,
                  in accordance with Section 10(a) above);

                                      -6-
<PAGE>   46
                  If to Buyer to:        Bank: ________________
                                         ABA #: _______________
                                         A/C#:  _______________
                                         Attn:  _______________
                                         Ref:  ________________

                  If to Sellers:         Bank: Bank of New York
                                         ABA #: 021000018
                                         A/C#: 670-1262466
                                         Attn:  _______________
                                         Ref:  ________________

                  If to Escrow Agent to: State Street Bank & Trust Company
                                         ABA#:  0110 0002 8
                                         A/C#:  9903-990-1
                                         Attn:  Corporate Trust Department
                                         Ref:  122240-010
                                         Fax:  617-664-5374

11. Waiver. No waiver by a party of any default or nonperformance hereunder
shall be deemed a waiver of any subsequent default or nonperformance. No waiver
shall be effective unless in writing, and signed by the party or parties to
which the performance of duty is owed. No delay in the serving of any right or
remedy shall constitute a waiver of any right or remedy.

12. Independent Covenants. The parties agree that each of the covenants and
provisions contained in this Agreement shall be deemed severable and construed
as independent of any other covenant or provision.

13. Severability. If all or any portion of a covenant or provision in this
Agreement is held invalid, unreasonable or unenforceable by a court or agency
having valid jurisdiction in an unappealed final decision, the remaining
covenants and provisions shall remain valid and enforceable. The parties hereto
agree to be bound by any lesser covenant or provision contained within the terms
of such covenant or provision that imposes the maximum duty permitted by law, as
if the resulting covenant or provision were separately stated in, and made a
part of this Agreement.

14. Modifications and Amendments. This Agreement may not be, and shall not be
construed to have been modified, amended, rescinded, canceled, or waived, in
whole or in part, except if done so in writing and executed by the parties
hereto.

15. Governing Law. The validity, interpretation and enforcement of this
Agreement shall be governed by, and construed and enforced in accordance with
the laws of the Commonwealth of Massachusetts without giving effect to its
conflicts of laws provisions, and to the exclusion of the law of any other
forum.

                                      -7-
<PAGE>   47
16. Exclusive Jurisdiction; Venue. EACH PARTY AGREES TO SUBMIT TO THE EXCLUSIVE
PERSONAL JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN
COMMONWEALTH OF MASSACHUSETTS FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN
CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND
ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN
THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. In any such action or
proceeding, the parties each hereby absolutely and irrevocably (i) waives
personal service of any summons, compliant, declaration or other process, and
(ii) agrees that the service thereof may be made by certified or registered
first class mail directed to such party, as the case may be, at their respective
addresses in accordance with Section 10 hereof.

17. Waiver of Jury Trial. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH
PARTY HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL
RIGHTS TO A TRIAL BY JURY OF ANY ISSUES SO TRIABLE.

18. No Third Party Beneficiary. No party other than the parties hereto has, or
shall have, any lien, claim or security interest in the Holdback Funds or any
part thereof. No financing statement under the Uniform Commercial Code is on
file, or will be filed, in any jurisdiction claiming a security interest in or
describing (whether specifically or generally) the Holdback Funds or any part
thereof.

19. Counterparts. This Agreement may be executed by each party upon a separate
counterpart, and in such case one copy of this Agreement shall consist of enough
of such copies to reflect the signature of all of the parties to this Agreement.
This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, and it shall not be necessary in making proof of this
Agreement or the terms of this Agreement to produce or account for more than one
of such counterparts.

20. Assignment. No party may assign any of its rights or delegate any of its
obligations hereunder without the prior written consent of the other parties.
This Agreement binds, inures to the benefit of and is enforceable by the
respective successors and permitted assigns of the parties and it does not
confer any rights on any other persons or entities.

21. Tax-Related Terms.

         (a)      Certification of Tax Indemnification Number. The Parent hereto
                  agrees to provide the Escrow Agent with a certified tax
                  identification number by signing and returning a Form W-9 (or
                  Form W-8, in case of non-U.S. persons) to the Escrow Agent
                  prior to the date on which any income earned on the investment
                  of the Holdback Funds is credited to the Holdback Escrow. The
                  Parent understands that, in the event its tax identification
                  numbers is not certified to the Escrow Agent, the Internal
                  Revenue Code, as amended from time to time, may require
                  withholding of a portion of any interest or other income
                  earned on the investment

                                      -8-
<PAGE>   48
                  of the Holdback Funds.

         (b)      Tax Indemnification. Each of the Buyer, on the one hand, and
                  the Sellers, on the other hand, agree, jointly and severally,
                  (i) to assume any and all obligations imposed now or hereafter
                  by any applicable tax law with respect to any payment or
                  distribution of the Holdback Funds or performance of other
                  activities under this Agreement, (ii) to instruct the Escrow
                  Agent in writing with respect to the Escrow Agent's
                  responsibilities for withholding and other taxes, assessments
                  or other governmental charges, and to instruct the Escrow
                  Agent with respect to any certifications and governmental
                  reporting that may be required under any laws or regulations
                  that may be applicable in connection with its acting as Escrow
                  Agent under this Agreement, and (iii) to indemnify and hold
                  the Escrow Agent harmless from any liability or obligation on
                  account of taxes, assessments, additions for late payment,
                  interest, penalties, expenses and other governmental charges
                  that may be assessed or asserted against the Escrow Agent in
                  connection with or relating to any payment made or other
                  activities performed under the terms of this Agreement,
                  including, without limitation, any liability for the
                  withholding or deduction of (or the failure to withhold or
                  deduct) the same, and any liability for failure to obtain
                  proper certifications or to report properly to governmental
                  authorities in connection with this Agreement, including costs
                  and expenses (including reasonable legal fees and expenses),
                  interest and penalties. The foregoing indemnification and
                  agreement to hold harmless shall survive the termination of
                  this Agreement.

22. Force Majeure. The Escrow Agent shall not be responsible for delays or
failures in performance resulting from acts beyond its control. Such acts shall
include but not be limited to acts of God, strikes, lockouts, riots, acts of
war, epidemics, governmental regulations superimposed after the fact, fire,
communication line failures, computer viruses, power failures, earthquakes or
other disasters.

23. Reproduction of Documents. This Agreement and all documents relating
thereto, including, without limitation, (a) consents, waivers and modifications
which may hereafter be executed, and (b) certificates and other information
previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, optical disk, micro-card, miniature photographic or
other similar process. The parties agree that any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and whether or not such
reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction of such
reproduction shall likewise be admissible in evidence.

                [Remainder of this Page Intentionally Left Blank]

                                      -9-
<PAGE>   49
         WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first set forth above

                                      SELLERS

                                      ADVANCED HEALTH
                                        MANAGEMENT CORPORATION

Attest:__________________________
                                      By:_____________________________
                                      Name:
                                      Its:

                                      INTEGRATED MEDICAL MANAGEMENT, INC.

Attest:__________________________
                                      By:_____________________________
                                      Name:
                                      Its:

                                      ADVANCED HEALTH CORPORATION
                                        d/b/a AHT CORPORATION

Attest:__________________________
                                      By:_____________________________
                                      Name:
                                      Its:

                                      BUYER

                                      -10-
<PAGE>   50
                                      PRACTICARE, INC.

Attest:__________________________
                                      By: /s/ C. Douglas Collins
                                          ------------------------------
                                      Name: C. Douglas Collins, MD
                                      Its: President

                                      ESCROW AGENT

                                      STATE STREET BANK AND
                                        TRUST COMPANY

Attest:__________________________
                                      By: /s/ Arthur L. Blakeslee
                                          ------------------------------
                                      Name: Arthur L. Blakeslee
                                      Its: President

                                      -11-
<PAGE>   51
                                    EXHIBIT B
                GENERAL ASSIGNMENT AND ASSUMPTION OF LIABILITIES
                                AND BILL OF SALE

ADVANCED HEALTH MANAGEMENT
CORPORATION, INTEGRATED
MEDICAL MANAGEMENT, INC. and
ADVANCED HEALTH CORPORATION
d/b/a AHT CORPORATION,                               PRACTICARE, INC.,
Assignors                                      to    Assignee

         Pursuant to and in accordance with the terms and provisions of that
certain Asset Purchase Agreement, dated as of May , 1999 (the "Agreement") by
and among Advanced Health Management Corporation, a Delaware corporation,
Integrated Medical Management, Inc., a Delaware corporation and Advanced Health
Corporation d/b/a AHT Corporation, a Delaware corporation (the "Parent") (each
an "Assignor" and collectively, the "Assignors") and PractiCare, Inc., a
Delaware corporation (the "Assignee") and for the consideration therein
specified, Assignors do hereby (subject to Section 9.4 of the Agreement) sell,
convey, deliver, assign and transfer to Assignee, free and clear of any
Encumbrance except as permitted therein, and Assignee does hereby acquire from
Assignors, all of Assignors' right, title and interest in and to the Purchased
Assets, namely:

                  (a)      each Assignor's equipment, supplies, leasehold
                           improvements, furniture, fixtures and other fixed
                           assets set forth in Schedule 1.1(a) to the Agreement;

                  (b)      each Assignor's receivables relating to the Business
                           as set forth in Schedule 1.1(b) to the Agreement;

                  (c)      each Assignor's rights and benefits accruing to such
                           Assignor under all orders, contracts, leases and
                           agreements made by such Assignor, and each Assignor's
                           vendor and supplier relationships as the same relate
                           to the Business, as set forth in Schedule 1.1(c) to
                           the Agreement;

                  (d)      each Assignor's operating data and operating records
                           in whatever form and media which pertain to: (i) the
                           Purchased Assets, including any accounting records
                           and such other records as are reasonably necessary to
                           collect the Purchased Receivables and pay the Assumed
                           Liabilities; (ii) the Business, including supplier
                           lists, manuals, correspondence, mailing lists,
                           account lists, Works (as defined in various contracts
                           included in the Purchased Contract and Other Rights
                           except as specifically excluded on SCHEDULE 1.1 (d))
                           and other similar documents and records as specified
                           in Schedule 1.1(d) to the Agreement; and (iii)
                           advertising and sales materials as specified in
                           Schedule 1.1(d) to the Agreement;
<PAGE>   52
                  (e)      the proprietary rights owned or licensed by each
                           Assignor and used in the conduct of the Business,
                           including, without limitation, all trademarks,
                           service marks and designs, trade names, trade
                           secrets, technology, software, operating systems,
                           know-how, slogans, copyrights, processes, operating
                           rights, Marks (as defined in various contracts
                           included in the Purchased Contract and Other Rights,
                           to the extent permitted thereby) and other similar
                           intangible property and rights relating to the
                           Business, as set forth in Schedule 1.1(e) to the
                           Agreement;

                  (f)      each Assignor's prepaid expenses relating to the
                           Business and as set forth in Schedule 1.1(f) to the
                           Agreement, subject to adjustment as provided in
                           Section 6.5 therein;

                  (g)      each Assignor's right and interest in and to the
                           telephone and facsimile numbers set forth in Schedule
                           1.1(g) to the Agreement;

                  (h)      each Assignor's licenses and permits which pertain to
                           the Purchased Assets, the Business and/or the
                           operation and conduct thereof, to the extent
                           transferable, as set forth in Schedule 1.1(h) to the
                           Agreement; and

                  (i)      each Assignor's right, title and interest in and to
                           all of the goodwill associated with the Purchased
                           Assets, the Business and/or the conduct and operation
                           thereof.

         TO HAVE AND TO HOLD the same, with the appurtenances thereof, unto
Assignee, its successors and assigns, forever, to its own use and behalf.

         Pursuant to Section 2.1 of the Agreement, the Assignee hereby assumes
and agrees to pay or discharge when due in accordance with their respective
terms only: (a) the ordinary trade payables of the Assignors, which payables
have arisen in the ordinary course of the Business and which are more fully
described in Schedule 2.1(a)(ii)(x) to the Agreement; (b) the equipment-related
payables of the Assignors, which payables have arisen in the ordinary course of
the Business and which are more fully described in Schedule 2.1(a)(ii)(y) to the
Agreement; and (c) the obligations of the Assignors arising and to be performed
after the Closing Date pursuant to the Purchased Contract and Other Rights and
Purchaser Proprietary Rights. The Assignee expressly does not assume and will
not have any responsibility, however, with respect to any other obligation or
liability of any Assignor.

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings respectively ascribed to them in the Agreement.

         This General Assignment and Assumption of Liabilities and Bill of Sale
shall be effective for all purposes upon its delivery and shall inure to the
benefit of, and shall be binding upon and enforceable against, each of the
undersigned and their respective successors and assigns. This

                                      -2-
<PAGE>   53
General Assignment and Assumption of Liabilities and Bill of Sale may be
executed in any number of counterparts, each of which shall be an original and
all of which shall constitute one and the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -3-
<PAGE>   54
         IN WITNESS WHEREOF, each of the undersigned has caused this instrument
to be executed under seal by its duly authorized officer, respectively, as of
May __, 1999.

ASSIGNORS:                                ASSIGNEE:

ADVANCED HEALTH MANAGEMENT                PRACTICARE, INC.
CORPORATION

By: ________________________________      By: ______________________________
Name:                                     Name:
Title:                                    Title:

INTEGRATED MEDICAL MANAGEMENT,
INC.

By: ________________________________
Name:
Title:

ADVANCED HEALTH CORPORATION
d/b/a AHT CORPORATION

By: ________________________________
Name:
Title:

                                      -4-
<PAGE>   55
                                   EXHIBIT E

                TRANSFEROR'S CERTIFICATION OF NON-FOREIGN STATUS
                    UNDER TREAS. REG. SECTION 1.1445-2(b)(2)

                  Section 1445 of the Internal Revenue Code of 1986, as amended
(the "Code"), provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. To inform the transferee
that withholding of tax is not required upon the disposition of a U.S. real
property interest by Integrated Medical Management, Inc., a Delaware corporation
(the "Seller"), the undersigned hereby certifies the following on behalf of the
Seller:

                  1. The Seller is not a foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the
Code and the Income Tax Regulations);

                  2. The Seller's U.S. employer identification number is
__-_______; and

                  3. The Seller's office address is __________________________.

                  The Seller understands that this certification may be
disclosed to the Internal Revenue Service by the transferee and that any false
statement contained herein could be punished by fine, imprisonment, or both.

                  Under penalties of perjury I declare that I have examined this
certification and to the best of my knowledge and belief it is true, correct and
complete, and I further declare that I have authority to sign this document on
behalf of the Seller.

                                              INTEGRATED MEDICAL MANAGEMENT, INC

                                              __________________________________
                                              Name:
                                              Title:
                                              Date:<PAGE>   1
                                                                   Exhibit 10.22

                          SECURITIES PURCHASE AGREEMENT

                                 BY AND BETWEEN

                                 AHT CORPORATION
                                 AS THE COMPANY

                                       AND

                                  CYBEAR, INC.
                                AS THE PURCHASER

                              DATED: MARCH 27, 2000
<PAGE>   2
                          SECURITIES PURCHASE AGREEMENT

         AGREEMENT, dated March 27, 2000, by and between AHT CORPORATION, a
Delaware corporation (the "Company"), and CYBEAR, INC., a Delaware corporation
(the "Purchaser").

                                R E C I T A L S:

         WHEREAS, the Company is currently contemplating raising up to
$4,000,000 in a private placement of debt securities (the "Offering"); and

         WHEREAS, the Company desires to sell and issue to the Purchaser, and
the Purchaser desires to purchase from the Company, $4,000,000 aggregate
principal amount of the Company's 10% Senior Secured Convertible Note due March
31, 2001 (the "Convertible Note"), with terms and conditions as set forth in the
form of Convertible Note attached hereto as EXHIBIT A (with such changes and
modifications as may be approved by the Purchaser); and

         WHEREAS, in order to induce the Purchaser to enter into the
transactions described in this Agreement, the Company desires to issue to the
Purchaser warrants to purchase 300,000 shares of the Company's common stock,
$.01 par value (the "Common Stock") on the terms and conditions described in the
Common Stock Purchase Warrant in the form attached hereto as EXHIBIT B (with
such changes and modifications as may be approved by the Purchaser) (the
"Warrants"); and

         WHEREAS, the Convertible Note will be convertible into shares of Common
Stock, and the Purchaser will have registration rights with respect to such
shares of Common Stock issuable upon conversion as set forth in the Registration
Rights Agreement in the form attached hereto as EXHIBIT C; and

         WHEREAS, the Purchaser will have certain registration rights with
respect to the shares of Common Stock issuable upon exercise of the Warrants as
set forth in the Registration Rights Agreement;

         NOW, THEREFORE, in consideration of the foregoing premises and the
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

1.       DEFINITIONS

1.1      Definitions. The following terms, as used herein, have the following
         meanings:

         "Affiliate" means, with respect to any Person (the "Subject Person"),
(i) any other Person (a "Controlling Person") that directly, or indirectly
through one or more intermediaries, Controls the Subject Person or (ii) any
other Person (other than the Subject Person or a Consolidated Subsidiary
<PAGE>   3
of the Subject Person) which is Controlled by or is under common Control with a
Controlling Person.

         "Agreement" means this Securities Purchase Agreement, as amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

         "Asset Sale" has the meaning set forth in Section 8.7.

         "Average Market Price" means, for any security as of any date, the
average of the closing price on the Nasdaq Market as reported by Bloomberg or,
if the Nasdaq Market is not the principal trading market for such security, the
closing price of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the closing price of such security in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no closing price is reported for such security by
Bloomberg, then the average of the high bid prices of any market makers for such
security as reported in the "pink sheets" by the National Quotation Bureau,
Inc., in each case for the thirty (30) consecutive Trading Days immediately
prior to such date.

         "Balance Sheet Date" has the meaning set forth in Section 4.7.

         "Benefit Arrangement" means at any time an employee benefit plan within
the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan
and which is maintained or otherwise contributed to by the Company.

         "Benefit Plans" has the meaning set forth in Section 4.9(b).

         "Bloomberg" means Bloomberg, L.P.

         "Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in New York, New York and Miami, Florida are authorized
or required by law to close.

         "Capital Reorganization" has the meaning set forth in Section 11.5.

         "Change of Control" means:

                  (i) after the date of this Agreement any Person, other than
         the Purchaser or an Affiliate of the Purchaser, shall have acquired
         beneficial ownership (within the meaning of Rules 13d-3 and 13d-5
         promulgated by the SEC pursuant to the Exchange Act) of 33.3% or more
         of the outstanding shares of Common Stock of the Company;

                  (ii) a transfer of all or substantially all of the assets of
         the Company to any Person, other than the Purchaser or an Affiliate of
         the Purchaser, in a single transaction or series of related
         transactions;

                  (iii) a consolidation, merger or amalgamation of the Company
         with or into another Person, other than the Purchaser or an Affiliate
         of the Purchaser, (other than a merger (x) which does not result in any
         reclassification, conversion, exchange or cancellation of

                                       2
<PAGE>   4
         outstanding shares of Common Stock or in which the Company is the
         surviving entity, (y) which is effected solely to change the
         jurisdiction of incorporation of the Company and results in a
         reclassification, conversion or exchange of outstanding shares of
         Common Stock solely into shares of Common Stock or (z) consummated in
         compliance with Section 8.5 hereof); or

                  (iv) individuals constituting the Board of Directors of the
         Company on the date hereof (together with any new Directors whose
         election by such Board of Directors or whose nomination for election by
         the stockholders of the Company (x) was approved by a vote of at least
         50.1% of the Directors then still in office who were either Directors
         as of the date hereof or whose election or nomination for election was
         previously so approved or (y) supported by the Purchaser or its
         Affiliates, cease for any reason to constitute at least a majority of
         the Board of Directors of the Company then in office; or

         "Closing" has the meaning set forth in Section 2.3.

         "Closing Date" means March 27, 2000.

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

         "Company" means AHT Corporation, a Delaware corporation, and its
successors.

         "Company Corporate Documents" means the certificate of incorporation
and by-laws of the Company.

         "Consolidated Subsidiary" means at any date with respect to any Person,
any Subsidiary or other entity, the accounts of which would be consolidated with
those of such Person in its consolidated financial statements if such statements
were prepared as of such date.

         "Control" (including, with correlative meanings, the terms
"Controlling," "Controlled by" and under "common Control with"), as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities, by contract or
otherwise .

         "Conversion Date" shall mean the date of delivery (including delivery
via telecopy) of a Notice of Conversion for all or a portion of the Convertible
Note by the holder thereof to the Company if such day is a Business Day, or the
next succeeding Business Day if the date of delivery is not a Business Day.

         "Conversion Price" means the lower of (i) 80% of the Average Market
Price per share of Common Stock on the Conversion Date; or (ii) $4.34.

         "Conversion Shares" has the meaning set forth in Section 4.5.

         "Convertible Note" means the Company's 10% Senior Secured Convertible
Note substantially in the form set forth as EXHIBIT A hereto.

                                       3
<PAGE>   5
         "Deadline" has the meaning set forth in Section 10.1.

         "Debt" of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes, or other similar instruments
issued by such Person, (iii) all obligations of such Person as lessee which (y)
are capitalized in accordance with GAAP or (z) arise pursuant to sale-leaseback
transactions, (iv) all reimbursement obligations of such Person in respect of
letters of credit or other similar instruments, (v) all Debt of others secured
by a Lien on any asset of such Person, whether or not such Debt is otherwise an
obligation of such Person and (vi) all Debt of others Guaranteed by such Person.

         "Default" means any event or condition which constitutes an Event of
Default or which, with the giving of notice or lapse of time or both would,
unless cured or waived, will constitute an Event of Default.

         "Default Interest Rate" has the meaning set forth in the Convertible
Note.

         "Derivative Securities" has the meaning set forth in Section 10.6.

         "Directors" means the individuals then serving on the Board of
Directors or similar such management council of the Company.

         "Environmental Laws" means any and all federal, state, municipal, local
and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or other
governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment, including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the cleanup or other
remediation thereof.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, or any successor statute.

         "ERISA Group" means the Company and each Subsidiary and all members of
a controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with the Company or any
Subsidiary, are treated as a single employer under the Code.

         "Event of Default" has the meaning set forth in Section 12 hereof.

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

         "Fixed Price(s)" has the meaning set forth in Section 11.1.

         "GAAP" has the meaning set forth in Section 1.2.

                                       4
<PAGE>   6
         "Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing (whether by virtue
of partnership arrangements, by agreement to keep well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain a minimum net
worth, financial ratio or similar requirements, or otherwise) any Debt of any
other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Debt or (ii) entered into for the purpose of assuring in any other manner the
holder of such Debt of the payment thereof or to protect such holder against
loss in respect thereof (in whole or in part); PROVIDED that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course
of business. The term Guarantee used as a verb has a corresponding meaning.

         "Guaranty Agreement" means the Guaranty Agreement of even date herewith
between Advanced Health Technologies Corporation, Advanced Health Management
Corporation, and Advanced Health Bukstel and Halfpenny Corporation, each a
Delaware corporation and wholly owned subsidiary of the Company, in the form
attached hereto as EXHIBIT H.

         "Hazardous Materials" means any hazardous materials, hazardous wastes,
hazardous constituents, hazardous or toxic substances or petroleum products
(including crude oil or any derivative or fraction thereof), defined or
regulated as such in or under any Environmental Laws.

         "Intellectual Property" has the meaning set forth in Section 4.20.

         "Issuer Registration Statement" means a registration statement filed by
the Company which seeks to register the sale of securities by the Company for
cash.

         "License Agreement" means the Co-Marketing and License Agreement of
even date herewith between the Purchaser and Advanced Health Technologies
Corporation, a wholly owned subsidiary of the Company, in the form attached
hereto as EXHIBIT G.

         "Lien" means, any lien, mechanic's lien, materialmen's lien, lease,
easement, charge, encumbrance, mortgage, conditional sale agreement, title
retention agreement, agreement to sell or convey, option, claim, title
imperfection, encroachment or other survey defect, pledge, restriction, security
interest or other adverse claim, whether arising by contract or under law or
otherwise (including, without limitation, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of any financing statement under the Uniform Commercial Code or comparable law
of any jurisdiction in respect of any of the foregoing).

         "Liquidated Damages Amount" has the meaning set forth in Section 8.2.

         "Listing Applications" shall have the meaning set forth in Section 4.4.

         "Material Adverse Effect" means for a specified party, a material
adverse effect on (a) the business, operations, property or condition of the
specified party taken as a whole, (b) the ability of the specified party to
perform its material obligations under this Agreement, or (c) the validity or
enforceability against the specified party of this Agreement or the rights or
remedies of any other party

                                       5
<PAGE>   7
hereunder to such an extent that such Agreement or the rights or remedies of any
other party hereunder to such an extent that such other party would be deprived
of the practical realization of the benefits contemplated by this Agreement to
be derived by such other party from this Agreement, including the exhibits to
this Agreement, and on the transactions contemplated hereby or by the agreements
or instruments to be entered into in connection herewith, and; provided,
however, that the existence of a Material Adverse Effect shall be deemed not to
include (x) the adverse impact, if any, of changes in laws, rules, regulations,
interpretations or other promulgations of any governmental authority, or changes
in GAAP, regulatory accounting requirements and market conditions applicable to
companies in the same line of business as the specified party, or (y) the impact
of the fees and expenses of all counsel, accountants and financial advisors, and
the other costs and expenses reasonably incurred by the specified party, in
connection with this Agreement and the transactions contemplated by this
Agreement.

         "Material Plan" means at any time a Plan or Plans having aggregate
Unfunded Liabilities in excess of $500,000.

         "Maturity Date" shall mean the date of maturity of the Convertible
Note; specifically, March 31, 2001.

         "Maximum Number of Shares" shall mean 2,213,550 shares of Common Stock,
which amount is equal to 19.9% of the outstanding Common Stock on the Closing
Date, less 300,000 for Warrants.

         "Multiemployer Plan" means at any time an employee pension benefit plan
within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group is then making or accruing an obligation to make contributions or
has within the preceding five plan years made contributions, including for these
purposes any Person which ceased to be a member of the ERISA Group during such
five year period.

         "Nasdaq Market" means the Nasdaq Stock Market's National Market.

         "Net Cash Proceeds" means, with respect to any transaction, the total
amount of cash proceeds received by the Company or any Subsidiary less (i)
underwriters' fees, brokerage commissions, professional fees and other customary
out-of-pocket expenses payable in connection with such transaction, and (ii) in
the case of dispositions of assets, (A) actual transfer taxes and income taxes
payable with respect to such dispositions, and (B) the amount of Debt, if any,
secured by a Lien on the asset or assets disposed of and required to be, and
actually repaid by the Company or any Subsidiary in connection therewith, and
any trade payables specifically relating to such asset or assets sold by the
Company or any Subsidiary that are not assumed by the purchaser of such asset or
assets.

         "Notice of Conversion" means the form to be delivered by the holder of
the Convertible Note upon conversion of all or a portion thereof to the Company
substantially in the form of EXHIBIT D attached hereto.

         "Notice of Exercise" means the form to be delivered by a holder of a
Warrant upon exercise of all or a portion thereof to the Company.

                                       6
<PAGE>   8
         "Offering" has the meaning set forth in the Recitals.

         "Other Taxes" has the meaning set forth in Section 3.6(d).

         "Par Value Redemption Price" has the meaning set forth in Section
3.3(a).

         "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

         "Permits" means all domestic and foreign licenses, franchises, grants,
authorizations, permits, easements, variances, exemptions, consents,
certificates, orders and approvals necessary to own, lease and operate the
properties of, and to carry on the business of the Company and the Subsidiaries.

         "Permitted Debt" has the meaning set forth in Section 8.1.

         "Person" means an individual, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company,
government (or any agency or political subdivision thereof) or other entity of
any kind.

         "Plan" means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the
minimum funding standards under the Code and either (i) is maintained, or
contributed to, by any member of the ERISA Group for employees of any member of
the ERISA Group or (ii) has at any time within the preceding five years been
maintained, or contributed to, by any Person which was at such time a member of
the ERISA Group for employees of any Person which was at such time a member of
the ERISA Group.

         "Premium Price" shall mean a dollar amount equal to: (i) one hundred
twenty percent (120%) of the principal amount of the Convertible Note then
outstanding, plus (ii) all accrued and unpaid interest (including Default
Interest, if any) thereon.

         "Purchase Price" means the purchase price for the Securities set forth
in Section 2.2 hereof.

         "Purchaser" means Cybear, Inc., a Delaware corporation, and its
successors and assigns.

         "Registrable Securities" has the meaning set forth in Section 10.4(a).

         "Registration Default" has the meaning set forth in Section 10.4(e).

         "Registration Default Notice" has the meaning set forth in Section
10.4(f).

         "Registration Maintenance Period" has the meaning set forth in Section
10.4(d).

         "Registration Rights Agreement" means the agreement between the Company
and the Purchaser dated the Closing Date substantially in the form set forth in
EXHIBIT C attached hereto.

         "Required Effectiveness Date" has the meaning set forth in Section
10.4(d).

                                       7
<PAGE>   9
         "Required Registration Statement" means a registration statement on
which the Registrable Securities are listed pursuant to the Registration Rights
Agreement.

         "Rights Offering" has the meaning set forth in Section 11.3.

         "SEC" means the Securities and Exchange Commission or any entity
succeeding to all of its material functions.

         "SEC Reports" shall have the meaning set forth in Section 4.7.

         "Securities" means the Convertible Note, the Warrants and, as
applicable, the Conversion Shares and the Warrant Shares.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Security Agreement" means the agreement between the Purchaser, the
Company and Advanced Health Technologies Corporation, Advanced Health Management
Corporation, and Advanced Health Bukstel and Halfpenny Corporation (each a
Delaware corporation and wholly owned subsidiary of the Company) dated the
Closing Date substantially in the form set forth in EXHIBIT E attached hereto.

         "Share Reorganization" has the meaning set forth in Section 11.2.

         "Significant Subsidiary" has the meaning ascribed to it under the
regulations promulgated under the Securities Act.

         "Solvency Certificate" shall mean a certificate executed by the chief
financial officer of the Company as to the solvency of the Company, the adequacy
of its capital and its ability to pay its debts, all after giving effect to the
issuance and sale of the Convertible Note and the completion of the offering
(including without limitation the payment of any fees or expenses in connection
therewith).

         "Special Distribution" has the meaning set forth in Section 11.4.

         "Subordination Terms" means with respect to any Debt the terms of
subordination set forth in EXHIBIT F hereto and which terms shall be set forth
in the instrument evidencing or governing such Debt.

         "Subsidiary" means, with respect to any Person, any corporation or
other entity of which a majority of the capital stock or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time directly
or indirectly owned by such Person. Unless specified to the contrary,
"Subsidiary" means a Subsidiary of the Company.

         "Subsidiary Corporate Documents" means the certificates of
incorporation and by-laws of each Subsidiary.

                                       8
<PAGE>   10
         "Taxes" has the meaning set forth in Section 3.5(a).

         "Trading Day" shall mean any Business Day in which the Nasdaq Market or
other automated quotation system or exchange on which the Common Stock is then
traded is open for trading for at least four (4) hours.

         "Transaction Agreements" means this Agreement, the Convertible Note,
the Warrants, the Registration Rights Agreement, the License Agreement, the
Security Agreement and the Guaranty Agreement.

         "Transfer" means any disposition of Securities that would constitute a
sale thereof under the Securities Act.

         "Unfunded Liabilities" means, with respect to any Plan at any time, the
amount (if any) by which (i) the present value of all benefits under such Plan
exceeds (ii) the fair market value of all Plan assets allocable to such benefits
(excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the ERISA Group to the
PBGC or any other Person under Title IV of ERISA.

         "Warrants" means the Common Stock Purchase Warrants to purchase 300,000
shares of Common Stock issued to the Purchaser on the Closing Date in the form
of EXHIBIT B hereto

         "Warrant Shares" has the meaning set forth in Section 4.5.

                                       9
<PAGE>   11
1.2      Accounting Terms And Determinations. Unless otherwise specified herein,
all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to
be delivered hereunder shall be prepared, in accordance with generally accepted
accounting principles as in effect from time to time, applied on a consistent
basis (except for changes concurred in by the Company's independent public
accountants) ("GAAP"). All references to "dollars," "Dollars" or "$" are to
United States dollars unless otherwise indicated.

2.       PURCHASE AND SALE OF SECURITIES

2.1      Purchase and Sale of Convertible Note. Subject to the terms and
conditions set forth herein, the Company agrees to issue and sell to the
Purchaser, and the Purchaser agrees to purchase from the Company, on the Closing
Date, the Convertible Note in the principal amount of $4,000,000. In connection
with the purchase and sale of the Convertible Note, the Company will issue to
the Purchaser the Warrants to purchase 300,000 shares of Common Stock in the
form of EXHIBIT B hereto.

2.2      Purchase Price. The purchase price for the Convertible Note shall be
100% of the principal amount thereof. One Dollar ($1.00) of the purchase price
of the Convertible Note shall be allocated to the Warrants. The aggregate
consideration payable by the Purchaser to the Company for the Convertible Note
and the Warrants shall be $4,000,000 (the "Purchase Price").

2.3      Closing and Form of Payment.

             (a) On the Closing Date, payment of the Purchase Price by the
Purchaser, subject to the satisfaction of all terms and conditions set forth
herein, shall be made by wire transfer to the Company of immediately available
funds.

             (b) The closing of the transactions contemplated by this Agreement
shall occur on the Closing Date at the offices of the Company (the "Closing").
At the Closing, the Company shall deliver to the Purchaser (A) the Convertible
Note issued to the Purchaser as of the Closing Date, and (B) the Warrants issued
to the Purchaser as of the Closing Date, against payment of the Purchase Price.

3.       PAYMENT TERMS OF CONVERTIBLE NOTE

3.1      Payment Mechanics. The Company will pay all sums becoming due on the
Convertible Note by the method and at the address specified for such purpose as
the Purchaser shall specify to the Company in writing for such purpose, without
the presentation or surrender of the Convertible Note or the making of any
notation thereon, except that upon written request of the Company made
concurrently with or reasonably promptly after payment or prepayment in full of
this Convertible Note, the Purchaser shall surrender the Convertible Note for
cancellation, reasonably promptly after any such request, to the Company at its
principal executive office. All payments to the Purchaser shall be made for the
Purchaser's benefit to the Purchaser. Prior to any sale or other disposition of
the Convertible Note, the Purchaser will, at its election, either endorse
thereon the amount of principal paid thereon and the last date to which interest
has been paid thereon or surrender the Convertible Note to the Company in
exchange for a new Convertible Note. The Company will afford

                                       10
<PAGE>   12
the benefits of this Section 3.1 to any transferee of the Convertible Note
purchased under this Agreement and that has made the same agreement relating to
this Convertible Note as the Purchaser has in this Section 3.1; PROVIDED that
such transferee is an "accredited investor" under Rule 501 of the Securities
Act.

3.2      Voluntary Prepayment. Following the Closing Date, the Company, at any
time and from time to time, upon not less than thirty (30) days prior written
notice ("Prepayment Notice") to the Purchaser, shall have the right to redeem
all, but not less than all, of the outstanding principal amount of the
Convertible Note then outstanding at the Premium Price. The Purchaser will have
Conversion Rights until the close of business on the date immediately preceding
the date fixed for redemption.

3.3      Mandatory Payments.

             (a) Interest Payments: Par Value Redemption. Commencing on the
Closing Date and continuing thereafter until the Maturity Date, the Company
shall pay to Purchaser on a quarterly basis interest computed at a rate equal to
ten percent (10%) per annum on the outstanding principal balance of the
Convertible Note outstanding from time to time during such quarterly period. The
first quarterly interest payment shall be due on June 30, 2000. Two subsequent
quarterly interest payments shall be made, one on September 30, 2000 and the
other on December 31, 2000. On March 31, 2001 the remaining outstanding
principal balance of the Convertible Note plus all accrued and unpaid interest
thereon shall be due and payable in full (including, without limitation, Default
Interest, if any) (the unpaid principal balance of the Convertible Note, plus
all accrued and unpaid interest thereon, including Default Interest, if any, is
herein referred to as the "Par Value Redemption Price").

             (b) Change of Control Premium Price Redemption. Upon the occurrence
of a Change of Control of the Company and for a period of six months thereafter,
the Purchaser shall have the right to cause the Company to redeem the principal
amount of the Convertible Note then outstanding, together with all accrued and
unpaid interest (including Default Interest, if any) thereon at the Premium
Price, upon ten (10) days prior written notice.

3.4      Prepayment Procedures.

             (a) Any prepayment or redemption of the Convertible Note pursuant
to Sections 3.2 or 3.3 above shall be deemed to be effective and consummated
(for purposes of determining the Premium Price, the amount of accrued and unpaid
interest and the time at which the Holder shall thereafter not be entitled to
deliver a Notice of Conversion for the Convertible Note) on the date the
redemption is consummated.

             (b) Within five (5) Business Days after (i) the Maturity Date or
(ii) the effective date of a prepayment or redemption of the Convertible Note as
specified in Section 3.4(a) above, the Company shall deliver by wire transfer in
immediately available funds the applicable prepayment/redemption price to the
Purchaser. If the Purchaser does not receive payment of any amounts due for
prepayment or on redemption of the Convertible Note by reason of the Company's
failure to make payment at the times prescribed above for any reason, the
Company shall pay to the

                                       11
<PAGE>   13
Purchaser on demand (i) interest on the sums not paid when due at an annual rate
equal to the Default Interest Rate; and (ii) all costs of collection, including,
but not limited to, reasonable attorneys' fees and costs, whether or not any
suit or other formal proceedings are instituted.

             (c) Any Notice of Conversion delivered by the Purchaser (including
delivery via telecopy) to the Company prior to the (i) Maturity Date or (ii)
effective date of a redemption specified in Section 3.4(a) above, shall be
honored by the Company and the conversion of the Convertible Note shall be
deemed effected on the Conversion Date. In addition, between the effective date
of redemption specified in Section 3.4(a) above and the date the Company is
required to deliver the redemption proceeds to the Purchaser, the Purchaser may
deliver a Notice of Conversion to the Company, PROVIDED that such notice will be
(i) of no force or effect if the Company timely pays the redemption proceeds to
the Purchaser when due or (ii) honored on or as of the date the Notice of
Conversion if the Company fails to timely pay the redemption proceeds to the
Purchaser when due.

3.5      Payment of Additional Amounts. Any and all payments by the Company
hereunder or under the Convertible Note to the Purchaser shall be made without
deduction or withholding for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto (all such taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as "Taxes") unless such Taxes are
required by law or the administration thereof to be deducted or withheld. If the
Company shall be required by law or the administration thereof to deduct or
withhold any Taxes from or in respect of any sum payable under the Convertible
Note (i) the Company shall make such deductions or withholdings; and (ii) the
Company shall forthwith pay the full amount deducted or withheld to the relevant
taxation or other authority in accordance with applicable law.

4.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants to the Purchaser as of the Closing
Date the following:

4.1      Organization and Qualification. The Company and each Significant
Subsidiary is a corporation (or other legal entity) duly organized, validly
existing and in good standing under the laws of its jurisdiction of
incorporation, with full power and authority to own, lease, use and operate its
properties and to carry on its business as and where now owned, leased, used,
operated and conducted. The SEC Reports sets forth a list of all Significant
Subsidiaries and the jurisdiction in which each is incorporated. The Company and
each of its Significant Subsidiaries is duly qualified to conduct business as a
foreign corporation and is in good standing in every jurisdiction in which the
nature of the business conducted by it makes such qualification necessary,
except where such failure would not have a Material Adverse Effect.

4.2      Authorization and Execution.

             (a) Except as contemplated by Section 7.9, the Company has all
requisite corporate power and authority to enter into and perform the
Transaction Agreements and to consummate the transactions contemplated hereby
and thereby and to issue the Securities in accordance with the terms hereof and
thereof.

                                       12
<PAGE>   14
             (b) Except as contemplated by Section 7.9, the execution, delivery
and performance by the Company of each Transaction Agreement and the issuance by
the Company of the Securities have been duly and validly authorized and no
further consent or authorization of the Company, its Board of Directors or its
shareholders is required.

             (c) The Transaction Agreements have been duly executed and
delivered by the Company.

             (d) The Transaction Agreements constitute, and upon execution and
delivery thereof by the Purchaser , will constitute, a valid and binding
agreement of the Company, in each case enforceable against the Company in
accordance with its respective terms, subject to (i) applicable bankruptcy,
insolvency or similar laws affecting the enforceability of creditors rights
generally and (ii) equitable principles of general applicability.

                                       13
<PAGE>   15
4.3      Capitalization. As of December 31, 1999, the authorized, issued and
outstanding capital stock of the Company is as set forth on Schedule 4.3 hereto.
All of such outstanding shares of capital stock are, or upon issuance will be,
duly authorized, validly issued, fully paid and non-assessable. No shares of
capital stock of the Company are subject to preemptive rights of the
stockholders of the Company or any liens or encumbrances imposed through the
actions or failure to act of the Company. Other than as set forth in the SEC
Reports or as disclosed in Schedule 4.3, as of the date hereof, (i) there are no
outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of the Company
or any of its Subsidiaries, or other arrangements, in each case under which the
Company or any of its Subsidiaries is or may become bound to issue additional
shares of capital stock of the Company or any of its Subsidiaries, and (ii)
there are no agreements or arrangements under which the Company or any of its
Subsidiaries are obligated to register the sale of any of its or their
securities under the Securities Act (except pursuant to the Registration Rights
Agreement) and (iii) there are no anti-dilution or price adjustment provisions
contained in any security issued by the Company (or in any agreement providing
rights to security holders) that will be triggered by the issuance of the
Convertible Note, Conversion Shares, Warrants or Warrant Shares. The Company has
made available to the Purchaser true and correct copies of the Company's SEC
Reports, and the terms of all securities convertible into or exercisable for
Common Stock and the material rights of the holders thereof in respect thereto.

4.4      Governmental Authorization. The execution and delivery by the Company
of the Transaction Agreements will not, the issuance and sale by the Company of
the Securities will not, and the consummation of the transactions contemplated
hereby and by the other Transaction Agreements will not, require any action by
or in respect of, or filing with, any governmental body, agency or governmental
official except (a) such actions or filings that have been undertaken or made
prior to the date hereof and that will be in full force and effect (or as to
which all applicable waiting periods have expired) on and as of the date hereof
or which are not required to be filed on or prior to the Closing Date, (b) such
actions or filings that, if not obtained, would not result in a Material Adverse
Effect, (c) the additional share notice ("Listing Applications") to be filed
with the Nasdaq Market relating to the shares of Common Stock issuable upon
conversion of the Convertible Note and exercise of the Warrants and (d) the
filing of a "Form D" as described in Section 7.13 below.

4.5      Issuance of Shares. Subject to the matters contemplated by Section 7.9,
upon conversion in accordance with the terms of the Convertible Note, or upon
exercise in accordance with the terms of the Warrants (assuming the payment of
the exercise price set forth in the Warrants), the shares of Common Stock issued
upon conversion of the Convertible Note (the "Conversion Shares") or exercise of
the Warrants (the "Warrant Shares") shall be duly and validly issued and
outstanding, fully paid and nonassessable, free and clear of any taxes, Liens
and charges with respect to issuance and shall not be subject to preemptive
rights or similar rights of any other stockholders of the Company. Assuming the
representations and warranties of the Purchaser herein are true and correct in
all material respects, each of the Securities will have been issued in material
compliance with all applicable United States federal securities laws. The
Company understands and acknowledges that, in certain circumstances, the
issuance of the Conversion Shares could dilute the ownership interests of other
stockholders of the Company. The Company further acknowledges that its
obligation to issue the Conversion Shares upon conversion of the Convertible
Note in accordance with this

                                       14
<PAGE>   16
Agreement and the Convertible Note is absolute and unconditional regardless of
the dilutive effect that such issuance may have on the ownership interests of
other stockholders of the Company.

4.6      No Conflicts. The execution and delivery by the Company of the
Transaction Agreements to which it is a party will not, the issuance and sale by
the Company of the Securities will not and the consummation of the transactions
contemplated hereby and by the other Transaction Agreements will not, as of the
date hereof, contravene or constitute a default under or violation of (i) any
provision of applicable law or regulation, (ii) the Company Corporate Documents,
(iii) any agreement, judgment, injunction, order, decree or other material
instrument binding upon the Company or any Subsidiary or any of their respective
assets, or result in the creation or imposition of any Lien on any asset of the
Company or any Subsidiary, except in the case of (i) or (ii) hereof where such
contravention or default would not have a Material Adverse Effect. The Company
and each Subsidiary is in compliance with and conforms to all statutes, laws,
ordinances, rules, regulations, orders, restrictions and all other legal
requirements of any domestic or foreign government or any instrumentality
thereof having jurisdiction over the conduct of its businesses or the ownership
of its properties, except in each case where such failure would not have a
Material Adverse Effect.

4.7      Financial Information and Sec Reports. Since December 31, 1998, the
Company has timely filed all forms, reports and documents with the SEC required
to be filed by it under the Exchange Act through the date hereof (all of the
foregoing filed prior to the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents (other than exhibits)
incorporated by reference therein, being referred to herein collectively as the
"SEC Reports"). The Company has made available to the Purchaser true and
complete copies of the SEC Reports, except for such exhibits and incorporated
documents, as well as the Company's unaudited financial statements for the year
ended December 31, 1999 which the Company intends to file after the completion
of its audit as part of its Annual Report on Form 10-K for the fiscal year ended
December 31, 1999 (the "1999 Statement"). Such SEC Reports, at the time filed
complied in all material respects in light of the circumstances when made with
the requirements of the Exchange Act and the rules and regulations of the SEC
thereunder applicable to such SEC Reports. The SEC Reports (including without
limitation, the financial statements or schedules included therein) do not
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The audited and
unaudited consolidated balance sheets of the Company and its Subsidiaries
contained in the SEC Reports and the 1999 Statement, and the related
consolidated statements of income, changes in stockholders' equity and changes
in cash flows for the periods then ended, including the footnotes thereto,
except as indicated therein, (i) complied in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto, (ii) have been prepared in accordance with GAAP
consistently applied throughout the periods indicated, except that the unaudited
financial statements do not contain notes and may be subject to normal audit
adjustments and normal annual adjustments and (iii) fairly present the financial
condition of the Company and its Subsidiaries at the dates indicated and the
consolidated results of their operations and cash flows for the periods then
ended. Since December 31, 1999 (the "Balance Sheet Date"), except as disclosed
in the SEC Reports, the 1999 Statement or otherwise disclosed to the Purchaser
in writing, there has been (i) no material adverse change in the assets or
liabilities, or in the business or financial condition, or in the results of
operations, of the Company

                                       15
<PAGE>   17
and its Subsidiaries, whether as a result of any legislative or regulatory
change, revocation of any license or rights to do business, fire, explosion,
accident, casualty, labor trouble, flood, drought, riot, storm, condemnation,
act of God, public force or otherwise and (ii) no material adverse change in the
assets or liabilities, or in the business or financial condition, or in the
results of operations of the Company and its Subsidiaries except in the ordinary
course of business.

4.8      Litigation. Except as disclosed in the SEC Reports or in Schedule 4.8,
there is no action, suit or proceeding pending or, to the knowledge of the
Company, threatened against the Company or any Subsidiary, before any court or
arbitrator or any governmental body, agency or official which is reasonably
likely to have a Material Adverse Effect.

4.9      Compliance with ERISA and Other Benefit Plans.

             (a) Each member of the ERISA Group has fulfilled its obligations
under the minimum funding standards of ERISA and the Code with respect to each
Plan and is in compliance in all material respects with the presently applicable
provisions of ERISA and the Code with respect to each Plan. No member of the
ERISA Group has (i) sought a waiver of the minimum funding standard under
Section 412 of the Code in respect of any Plan, (ii) failed to make any required
contribution or payment to any Plan or Multiemployer Plan or in respect of any
Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement,
which has resulted or could result in the imposition of a Lien or the posting of
a bond or other security under ERISA or the Code or (iii) incurred any liability
under Title IV of ERISA other than a liability to the PBGC for premiums under
Section 4007 of ERISA.

             (b) The benefit plans not covered under clause (a) above (including
profit sharing, deferred compensation, stock option, employee stock purchase,
bonus, retirement, health or insurance plans, collectively the "Benefit Plans")
relating to the employees of the Company are duly registered where required by,
and are in good standing in all material respects under, all applicable laws.
All required employer and employee contributions and premiums under the Benefit
Plans to the date hereof have been made, the respective fund or funds
established under the Benefit Plans are funded in accordance with applicable
laws, and no past service funding liabilities exist thereunder.

             (c) No Benefit Plans have any unfunded liabilities, either on a
"going concern" or "winding up" basis and determined in accordance with all
applicable laws and actuarial practices and using actuarial assumptions and
methods that are reasonable in the circumstances. No event has occurred and no
condition exists with respect to any Benefit Plans that has resulted or could
reasonably be expected to result in any pension plan having its registration
revoked or wound up (in whole or in part) or refused for the purposes of any
applicable laws or being placed under the administration of any relevant pension
benefits regulatory authority or being required to pay any taxes or penalties
(in any material amounts) under any applicable laws.

4.10     Environmental Matters. The costs and liabilities associated with
Environmental Laws (including the cost of compliance therewith) are unlikely to
have a Material Adverse Effect. Each of the Company and the Subsidiaries
conducts its businesses in compliance in all material respects with all
applicable Environmental Laws.

                                       16
<PAGE>   18
4.11     Taxes. All United States federal, state, county, municipal, local or
foreign income tax returns and all other material tax returns (including foreign
tax returns) which are required to be filed by or on behalf of the Company and
each Subsidiary have been filed and all material taxes due pursuant to such
returns or pursuant to any assessment received by the Company and each
Subsidiary have been paid except those being disputed in good faith and for
which adequate reserves have been established. The charges, accruals and
reserves on the books of the Company and each Subsidiary in respect of taxes or
other governmental charges have been established in accordance with GAAP.

4.12     Investments, Joint Ventures. Except set forth on Schedule 4.12, the
Company has no Significant Subsidiaries or other direct or indirect Investment
in any Person, and the Company is not a party to any partnership, management,
shareholders' or joint venture or similar agreement, other than as set forth in
the SEC Reports.

                                       17
<PAGE>   19
4.13     Not an Investment Company. Neither the Company nor any Subsidiary is an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

4.14     No Solicitation; No Integration with Other Offerings. No form of
general solicitation or general advertising was used by the Company or, to the
best of its actual knowledge, any other Person acting on behalf of the Company,
in connection with the offer and sale of the Securities. Neither the Company,
nor, to its knowledge, any Person acting on behalf of the Company, has, either
directly or indirectly, sold or offered for sale to any Person (other than the
Purchaser) any of the Securities or, within the six months prior to the date
hereof, any other similar security of the Company except as contemplated by this
Agreement, and the Company represents that neither itself nor any Person
authorized to act on its behalf (except that the Company makes no representation
as to the Purchaser and its Affiliates) will sell or offer for sale any such
security to, or solicit any offers to buy any such security from, or otherwise
approach or negotiate in respect thereof with, any Person or Persons so as
thereby to cause the issuance or sale of any of the Securities to be in
violation of any of the provisions of Section 5 of the Securities Act. The
issuance of the Securities to the Purchaser will not be integrated with any
other issuance of the Company's securities (past, current or future) which
requires stockholder approval under the rules of the Nasdaq Market.

4.15     Permits. Each of the Company and its Subsidiaries has all material
Permits; (b) all such Permits are in full force and effect, and each of the
Company and its Subsidiaries has fulfilled and performed all material
obligations with respect to such Permits; and (c) no event has occurred which
allows, or after notice or lapse of time would allow, revocation or termination
by the issuer thereof or which results in any other material impairment of the
rights of the holder of any such Permit.

4.16     Leases. Except as disclosed in the SEC Reports, neither the Company nor
any Subsidiary is a party to any capital lease obligation with a value greater
than $100,000 or to any operating lease with an aggregate annual rental greater
than $100,000 during the life of such lease.

4.17     Public Utility Holding Company. Neither the Company nor any Subsidiary
is, or will be upon the issuance and sale of the Securities and the use of the
proceeds described herein, subject to regulation under the Public Utility
Holding Company Act of 1935, as amended, the Federal Power Act, the Interstate
Commerce Act or to any federal or state statute or regulation limiting its
ability to issue and perform its obligations under any Transaction Agreement.

4.18     Intellectual Property Rights.

             (a) Except as set forth on Schedule 4.18 attached hereto, each of
the Company and its Subsidiaries owns, or is licensed under, and has the rights
to use, as applicable, all of the patents, trademarks, tradenames, service
marks, service names, trade secrets, protected computer software (including,
without limitation, any source or object codes therefor or documentation
relating thereto) and copyright registrations, and applications therefor,
including all Internet domain names registered with any third party, technology
rights and licenses, franchises, know-how, processes, inventions and
intellectual property rights necessary for and material to the conduct of its
business (collectively, "Material Intellectual Property").

                                       18
<PAGE>   20
             (b) Schedule 4.18 contains a true and complete list of all Material
Intellectual Property, therefor owned by or licensed to the Company or its
Subsidiaries on the date hereof, including all Internet domain names registered
with any third party. Except as set forth in Schedule 4.18, the Company or its
Subsidiaries owns, or is a valid licensee of all Material Intellectual Property
used in its business as currently conducted. Neither the Company, its
Subsidiaries or, to the Company's and its Subsidiaries' knowledge, its
predecessors has materially interfered with or misappropriated the intellectual
property of others, and none of the Material Intellectual Property as used in
the business conducted by such entity infringes in any material manner upon or
otherwise violates the intellectual property of others, nor to the Company's and
its Subsidiaries' knowledge with respect to predecessors, has any person
asserted a claim of such material infringement or violation of intellectual
property against any such entity. Except as set forth on Schedule 4.18, neither
the Company nor its Subsidiaries has licensed or sublicensed its rights in any
Material Intellectual Property, except non-exclusive licenses in the ordinary
course of business, forms of which license agreements and a list of which
licensees, the Company has delivered or made available to the Purchaser.

             (c) To the Company's and its Subsidiaries' knowledge, except as
described on Schedule 4.18 or disclosed in the SEC Reports, no officer, director
or employee of the Company or its Subsidiaries has entered into any contract
other than on behalf of the Company or such Subsidiary and with the Company's
authorization, which requires such officer, director or employee to assign any
interest in any Material Intellectual Property.

             (d) The Material Intellectual Property owned or licensed by the
Company or its Subsidiaries is sufficient to continue to operate the business as
conducted on the date hereof.

             (e) Except as set forth on Schedule 4.18, there are no settlements,
forbearances to sue, consents, judgments, or orders of which the Company or a
Subsidiary is a party or of which it is aware and which (i) restrict the
Company's or a Subsidiary's rights to use any Material Intellectual Property
owned by or licensed to the Company or such Subsidiary or (ii) permit third
parties to use any Material Intellectual Property.

             (f) Except as set forth in Section 12 hereof or on Schedule 4.18,
the consummation of the transactions contemplated hereby will not result in the
material loss or impairment of Company's or a Subsidiary's right to own or use
any of the Material Intellectual Property, nor will require the consent of any
government authority or third party in respect of such Material Intellectual
Property.

4.19     Insurance. The Company and its Subsidiaries maintain insurance in at
least such amounts and cover such risks such that any uninsured loss would not
have a Material Adverse Effect. All insurance coverages of the Company and its
Subsidiaries are in full force and effect and there are no past due premiums in
respect of any such insurance.

4.20     Title to Properties. The Company and its Subsidiaries have good and
marketable title to all their respective properties reflected on the financial
statements referred to in Section 4.7 as being owned by the Company.

                                       19
<PAGE>   21
4.21     Internal Accounting Controls. The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of
the Company's Board of Directors, to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences, where non-compliance therewith could not reasonably
be expected, in the aggregate, to have a Material Adverse Effect.

4.22     Standstill. The Company shall comply with the terms and provisions of
Section 8.3 and has no intention of violating the terms and provisions of such
Section.

5.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

         Purchaser hereby represents and warrants to the Company that:

5.1      Authorization and Execution.

             (a) The execution, delivery and performance of the Transaction
Agreements, to the extent the Purchaser has executed such agreements and the
purchase of the Securities pursuant hereto are within the Purchaser's corporate
powers, and have been duly and validly authorized by all requisite corporate
action;

             (b) The Transaction Agreements have been duly executed and
delivered by the Purchaser.

             (c) The execution and delivery by the Purchaser of the Transaction
Agreements to which it is a party does not, and the consummation of the
transactions contemplated hereby and thereby will not, contravene or constitute
a default under or violation of (i) any provision of applicable law or
regulation, or (ii) any agreement, judgment, injunction, order, decree or other
instrument binding upon Purchaser.

5.2      Acquisition for Investment. The Purchaser is acquiring the Convertible
Note and the Warrants, and will acquire the Conversion Shares and the Warrant
Shares, for its own account for investment and not with a view towards the
public sale or distribution thereof within the meaning of the Securities Act;
and the Purchaser has no intention of making any distribution, within the
meaning of the Securities Act, of the Securities except in compliance with the
registration requirements of the Securities Act or pursuant to an exemption
therefrom; PROVIDED, however, that by making this representation the Purchaser
does not agree to hold the securities for any minimum or specified period of
time (unless any such holding period is required by the terms of any such
exemption being relied on by the Purchaser); and PROVIDED that the disposition
of the Purchaser's property shall at all times be and remain within its control.

5.3      Accredited Investor. The Purchaser is an "accredited investor" as that
term is defined in Rule 501 of Regulation D under the Securities Act by reason
of Rule 501(a)(3) thereof;

                                       20
<PAGE>   22
5.4      Reoffers and Resales. The Purchaser will not, directly or indirectly,
offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) any of the Securities
unless registered under the Securities Act, pursuant to an exemption from
registration under the Securities Act or in a transaction not requiring
registration under the Securities Act;

5.5      Company Reliance. The Purchaser understands that (a) the Convertible
Note is being offered and sold and the Warrants are being issued to the
Purchaser, (b) upon conversion of the Convertible Note, the Conversion Shares
will be issued to the Purchaser, (c) upon exercise of the Warrants, the Warrant
Shares will be issued to the Purchaser, in each such case in reliance on one or
more exemptions from the registration requirements of the Securities Act,
including, without limitation, Regulation D, and exemptions from state
securities laws and that the Company is relying upon the truth and accuracy of,
and the Purchaser's compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Purchaser set forth herein
in order to determine the availability of such exemptions and the eligibility of
the Purchaser to acquire or receive an offer to acquire the Securities; and the
information with respect to the Purchaser provided to the Company by the
Purchaser is accurate and complete in all material respects;

5.6      Information Provided. The Purchaser and its advisors, if any, have
requested, received and considered all information relating to the business,
properties, operations, condition (financial or other), results of operations or
prospects of the Company and information relating to the offer and sale of the
Convertible Note and issuance of the Warrants, and the offer of the Conversion
Shares and the Warrant Shares deemed relevant by them (assuming the accuracy and
completeness of the SEC Reports and of the Company's responses to the
Purchaser's requests); the Purchaser and its advisors, if any, have been
afforded the opportunity to ask questions of the Company concerning the terms of
the offering of the Securities and the business, properties, operations,
condition (financial or other), results of operations and prospects of the
Company and have received satisfactory answers to any such inquiries (assuming
the accuracy and completeness of the SEC Reports and the Company's responses to
the Purchaser's requests); without limiting the generality of the foregoing, the
Purchaser has had the opportunity to obtain and to review the SEC Reports and
the Schedules hereto in connection with its decision to purchase the Convertible
Note and to acquire the Warrants, the Purchaser has relied solely upon the SEC
Reports, the Schedules hereto, the representations, warranties, covenants and
agreements of the Company set forth in this Agreement and to be contained in the
other Transaction Documents, as well as any independent investigation of the
Company completed by the Purchaser or its advisors, if any, and is not relying
on any oral representation, statement or promise of any employee or agent of the
Company; the Purchaser understands that its investment in the Securities
involves a high degree of risk.

5.7      Absence of Approvals. The Purchaser understands that no United States
federal or state agency or any other government or governmental agency has
passed on or made any recommendation or endorsement of the Securities;

5.8      Purchaser Status. The Purchaser is not a "broker" or "dealer" as those
terms are defined in the Exchange Act which is required to be registered with
the SEC pursuant to Section 15 of the Exchange Act.

                                       21
<PAGE>   23
5.9      Standstill. The Purchaser shall comply with the terms and provisions of
Section 8.3 and has no intention of violating the terms and provisions of such
Section.

6.       CONDITIONS PRECEDENT TO PURCHASE OF SECURITIES

6.1      Conditions Precedent to the Purchaser's Obligation to Purchase. The
obligation of the Purchaser to purchase the Convertible Note and Warrants at the
Closing is subject to the satisfaction, on or before the Closing Date of each of
the following conditions, PROVIDED that these conditions are for Purchaser's
sole benefit and may be waived by Purchaser at any time in its sole discretion:

             (a) The Company shall have executed and delivered to the Purchaser
the Transaction Agreements;

             (b) The Company shall have delivered to the Purchaser duly executed
certificates representing the Convertible Note and the Warrants in accordance
with Section 2.3 hereof;

             (c) The Company shall have delivered the Solvency Certificate;

             (d) The representations and warranties of the Company contained in
each Transaction Agreement shall be true and correct in all material respects as
of the date when made and as of the Closing Date as though made at such time
(except for representations and warranties that speak as of a specified date)
and the Company shall have performed, satisfied and complied in all material
respects with all covenants, agreements and conditions required by such
Transaction Agreements to be performed, satisfied or complied with by it at or
prior to the Closing Date. The Purchaser shall have received an Officer's
Certificate, executed by the chief executive officer of the Company, dated as of
the Closing Date, to the foregoing effect and as to such other matters as may be
reasonably requested by the Purchaser;

             (e) The Company shall have received all governmental, board of
directors, shareholders and third party consents and approvals necessary in
connection with the issuance and sale of the Securities;

             (f) All applicable waiting periods in respect to the issuance and
sale of the Securities shall have expired without any action having been taken
by any competent authority that could restrain, prevent or impose any materially
adverse conditions thereon or that could seek or threaten any of the foregoing;

             (g) The Purchaser shall have received an opinion, dated the Closing
Date, of O'Sullivan Graev & Karabell LLP, counsel to the Company, in a form
acceptable to the Purchaser, as to certain matters relating to the Company and
the transactions contemplated by this Agreement;

             (h) All fees and expenses due and payable by the Company on or
prior to the Closing Date shall have been paid;

             (i) The Company Corporate Documents and the Subsidiary Corporate
Documents, if any, shall be in full force and effect and no term or condition
thereof shall have been amended, waived or otherwise modified without the prior
written consent of the Purchaser;

                                       22
<PAGE>   24
             (j) There shall exist no action, suit, investigation, litigation or
proceeding pending or threatened in any court or before any arbitrator or
governmental instrumentality that challenges the validity of or purports to
affect this Agreement or any other Transaction Agreement, or other transaction
contemplated hereby or thereby or that could reasonably be expected to have a
Material Adverse Effect, or any material adverse effect on the enforceability of
the Transaction Agreements or the Securities or the rights of the Purchaser;

             (k) The Purchaser shall have confirmed receipt of the Convertible
Note and the Warrants to be issued, duly executed by the Company;

             (l) Immediately before and after the Closing Date, no Default or
Event of Default shall have occurred and be continuing; and

             (m) The Purchaser shall have received all other opinions,
resolutions, certificates, instruments, agreements or other documents as it
shall reasonably request.

6.2      Conditions to the Company's Obligations. The obligations of the Company
to issue and sell the Securities to the Purchaser pursuant to this Agreement are
subject to the satisfaction, at or prior to the Closing Date, of the following
conditions:

             (a) The representations and warranties of the Purchaser contained
herein shall be true and correct in all material respects on the Closing Date
and the Purchaser shall have performed and complied in all material respects
with all agreements required by this Agreement to be performed or complied with
by the Purchaser at or prior to the Closing Date;

             (b) The issue and sale of the Securities by the Company shall not
be prohibited by any applicable law, court order or governmental regulation;

             (c) Receipt by the Company of duly executed counterparts of the
Transaction Agreements signed by the Purchaser; and

             (d) The Company shall have received payment of the Purchase Price
of the Convertible Note.

7.       AFFIRMATIVE COVENANTS

         The Company hereby agrees that, from and after the date hereof for so
long as the Convertible Note remains outstanding (except for Sections 7.1(a),
7.8, 7.9, 7.10 and 7.11, which shall apply for so long as the Convertible Note
or Warrants remain outstanding) and for the benefit of the Purchaser:

7.1      Information. The Company will deliver to each holder of the Convertible
Note:

             (a) promptly upon the filing thereof, copies of (i) all
registration statements (other than the exhibits thereto and any registration
statements on Form S-8 or its equivalent), (ii) all reports on Forms 10-K, 10-Q
and 8-K (or their equivalents) which the Company or any Subsidiary has filed
with the SEC and (iii) any material press releases issued by the Company or any
Subsidiary;

                                       23
<PAGE>   25
             (b) within five Business Days after the Company's Chief Executive
Officer or Chief Financial Officer obtains knowledge of a Default or Event of
Default , a certificate of the chief financial officer of the Company setting
forth the details thereof and the action which the Company is taking or proposes
to take with respect thereto;

             (c) promptly upon the mailing thereof to the shareholders of the
Company generally, copies of all financial statements, reports and proxy
statements so mailed and any other document generally distributed to
shareholders;

             (d) if and when any member of the ERISA Group (i) gives or is
required to give notice to the PBGC of any "reportable event" (as defined in
Section 4043 of ERISA) with respect to any Plan which might constitute grounds
for a termination of such Plan under Title IV of ERISA, or knows that the plan
administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or
required to be given to the PBGC; (ii) receives notice of complete or partial
withdrawal liability under Title IV of ERISA or notice that any Multiemployer
Plan is in reorganization, is insolvent or has been terminated, a copy of such
notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent
to terminate, impose liability (other than for premiums under Section 4007 of
ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of
such notice; (iv) applies for a waiver of the minimum funding standard under
Section 412 of the Code, a copy of such application; (v) gives notice of intent
to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and
other information filed with the PBGC; (vi) gives notice of withdrawal from any
Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to
make any required payment or contribution to any Plan or Multiemployer Plan or
in respect of any Benefit Arrangement or makes any amendment to any Plan or
Benefit Arrangement which has resulted or could result in the imposition of a
Lien or the posting of a bond or other security, a certificate of the chief
financial officer or the chief accounting officer of the Company setting forth
details as to such occurrence and action, if any, which the Company or
applicable member of the ERISA Group is required or proposes to take; and

             (e) promptly following the commencement thereof, notice and a
description in reasonable detail of any material litigation or proceeding to
which the Company or any Subsidiary is a party which the Company is required to
disclose in its SEC Reports.

7.2      Payment of Obligations. The Company and its Subsidiaries will pay and
discharge, at or before maturity, all their respective material obligations,
including, without limitation, tax liabilities, except where the same may be
contested in good faith by appropriate proceedings and will maintain, in
accordance with GAAP, appropriate reserves for the accrual of any of the same.

7.3      Maintenance of Property; Insurance. The Company and each Subsidiary
will keep, all property useful and reasonably necessary in its business in good
working order and condition, ordinary wear and tear excepted. In addition, the
Company and each Subsidiary will maintain insurance in at least such amounts and
against such risks as it has insured against as of the Closing Date.

                                       24
<PAGE>   26
7.4      Maintenance of Existence. The Company will continue to engage in
business of the same general type as now conducted by the Company, and will
preserve, renew and keep in full force and effect its respective corporate
existence and their respective material rights, privileges and franchises
necessary or desirable in the normal conduct of business except as permitted
pursuant to Section 8.5.

7.5      Compliance with Laws. The Company and each Subsidiary will comply, in
all material respects, with all federal, state, municipal, local or foreign
applicable laws, ordinances, rules, regulations, municipal by-laws, codes and
requirements of governmental authorities (including, without limitation,
Environmental Laws and ERISA and the rules and regulations thereunder) except
(i) where compliance therewith is contested in good faith by appropriate
proceedings or (ii) where non-compliance therewith could not reasonably be
expected, in the aggregate, to have a Material Adverse Effect.

7.6      Inspection of Property, Books and Records. The Company and each
Subsidiary will keep proper books of record and account in accordance with GAAP;
and will permit, during normal business hours upon reasonable notice, the
Purchaser or an Affiliate thereof, as representatives of the Purchaser, to visit
and inspect any of their respective properties, upon reasonable prior notice, to
examine and make abstracts from any of their respective books and records and to
discuss their respective affairs, finances and accounts with their respective
executive officers and independent public accountants, all at such reasonable
times at Purchaser's expense. The Purchaser and any such Affiliate shall
maintain the confidentiality of any information of the Company disclosed to it.

7.7      Investment Company Act. The Company will not be or become an open-end
investment trust, unit investment trust or face-amount certificate company that
is or is required to be registered under Section 8 of the Investment Company Act
of 1940, as amended.

7.8      Supplemental Information. If at any time the Company is not subject to
the requirements of Section 13 or 15(d) of the Exchange Act, the Company will
promptly furnish at its expense, upon request, for the benefit of the holders
from time to time of Securities, and prospective purchasers of Securities,
information satisfying the information requirements of Rule 144 under the
Securities Act.

7.9      Reserved Shares and Listings.

             (a) The Purchaser acknowledges that the Company does not presently
have sufficient authorized but unissued shares of Common Stock to deliver to the
Purchaser upon exercise of the Warrants and conversion of the Convertible Notes.
No later than July 14, 2000, the Company shall have taken all action necessary,
including, without limitation, calling a meeting of shareholders to amend its
certificate of incorporation to authorize a sufficient number of shares to
enable the Company to issue the Maximum Number of Shares plus the shares
issuable upon exercise of the Warrant;

             (b) Subject to Section 7.9(a), the Company shall at all times have
authorized, and reserved for the purpose of issuance, a sufficient number of
shares of Common Stock to provide for the full conversion of the outstanding
Convertible Note and issuance of the Conversion Shares (based on the Maximum
Number of Shares under the Convertible Note), and the exercise in full of the
Warrants and the issuance of the Warrant Shares (based on the exercise price of
the Warrants in

                                       25
<PAGE>   27
effect from time to time). The Company shall not reduce the number of shares of
Common Stock reserved for issuance upon conversion of the Convertible Note and
exercise of the Warrants without the prior written consent of the Purchaser.

             (c) The Company shall promptly secure the listing of the Conversion
Shares and Warrant Shares upon each national securities exchange or automated
quotation system, if any, upon which the shares of Common Stock are then listed
(subject to official notice of issuance) and shall maintain, so long as any
other shares of Common Stock shall be so listed, such listing of all Conversion
Shares and Warrant Shares from time to time issuable upon conversion or exercise
of the Convertible Note and Warrants. The Company will obtain and maintain the
listing and trading of its Common Stock on the Nasdaq Market, the Nasdaq
SmallCap Market, the New York Stock Exchange, Inc., or the American Stock
Exchange Inc., and will comply in all respects with the Company's reporting,
filing and other obligations under the bylaws or rules of the National
Association of Securities Dealers, Inc. (the "NASD") and such exchanges, as
applicable. The Company shall promptly provide to the Purchaser copies of any
notices it receives from Nasdaq regarding the continued eligibility of the
Common Stock for listing on the Nasdaq Market.

             (d) On or prior to the date that the SEC declares effective the
Required Registration Statement, the Company shall properly file all Listing
Applications with the Nasdaq Market associated with the shares of Common Stock
covered by such registration statement.

                                       26
<PAGE>   28
7.10     Issuance of Shares of Common Stock. Upon receipt of a Notice of
Conversion or Notice of Exercise, as applicable, the Company shall immediately
issue irrevocable instructions to its transfer agent to issue certificates,
registered in the name of the Purchaser or its nominee, for the Conversion
Shares or Warrant Shares, as applicable, in such amounts as specified from time
to time by the Purchaser to the Company upon proper conversion of the
Convertible Note or exercise of the Warrants. Upon conversion of the Convertible
Note in accordance with its terms, and/or exercise of the Warrants in accordance
with their terms, the Company will, and will use its best lawful efforts to
cause its transfer agent to, issue one or more certificates representing shares
of Common Stock in such name or names and in such denominations specified by
Purchaser in a Notice of Conversion or Notice of Exercise, as the case may be.
As long as a Required Registration Statement contemplated by the Registration
Rights Agreement shall remain effective, the shares of Common Stock issuable
upon conversion of Convertible Note or exercise of the Warrants, if transferred
pursuant to such Required Registration Statement, shall be issued to any
transferee of such shares from Purchaser without any restrictive legend. Nothing
in this Section 7.12 shall affect in any way Purchaser's obligations to comply
with all securities laws applicable to Purchaser upon resale of such shares of
Common Stock, including any prospectus delivery requirements.

7.11     Form D; Blue Sky Laws. The Company agrees to file a "Form D" with
respect to the Securities as required under Regulation D of the Securities Act
and to provide a copy thereof to the Purchaser promptly after such filing. The
Company shall, on or before the Closing Date, take such action as the Company
shall reasonable determine is necessary to qualify the Securities for sale to
the Purchaser at the Closing pursuant to this Agreement under applicable
securities or "blue sky" laws of the states of the United States (or to obtain
an exemption from such qualification), and shall provide evidence of any such
action so taken to the Purchaser on or prior to the Closing Date.

8.       NEGATIVE COVENANTS

         The Company or the Purchaser, as the case may be, hereby agrees that,
from and after the date hereof for so long as the Convertible Note remains
outstanding and for the benefit of the other party:

8.1      Limitation on Debt or Other Liabilities. The Company will not itself,
and will not permit any Subsidiary to, create, assume, incur or in any manner
become liable in respect of, including, without limitation, by reason of any
business combination transaction (all of which are referred to herein as
"incurring"), any Debt; PROVIDED that the following items of Debt shall be
excluded from such calculation (such Debt being referred to as "Permitted
Debt"):

             (a) Debt not in excess of $1,000,000 aggregate principal amount
which is outstanding on the date hereof and which would be reflected on a
consolidated balance sheet of the Company as of the date hereof prepared in
accordance with GAAP;

             (b) Non-recourse Debt not in excess of $1,000,000 aggregate
principal amount which Debt, by its terms, bars the lender thereof from action
against the Company or any Subsidiary, as borrower, if the security value falls
below the amount required to repay such Debt;

                                       27
<PAGE>   29
             (c) Debt not in excess of $2,000,000 aggregate principal amount
incurred in connection with equipment leases to which the Company or its
Subsidiaries are a party incurred in the ordinary course of business; and

             (d) Debt not in excess of $5,000,000 aggregate principal amount
incurred in connection with trade accounts payable, imbalances and refunds
arising in the ordinary course of business.

             (e) Debt which is subordinated to this Convertible Note as to
payment on the Subordination Terms set forth in EXHIBIT E or on such other terms
as shall have been approved in advance of the incurrence of such Debt by the
Purchaser as evidenced by the written approval of the Purchaser given prior to
the incurrence of such Debt and for which no payment of principal of such Debt
is scheduled to be due prior to the date that is six months after the Maturity
Date; so long as in the case of Debt permitted by the preceding clauses (b)
through (e), at the time of incurrence of such Debt no Event of Default has
occurred and is continuing or would result from such incurrence and no event
which, with notice or passage of time, or both, would become an Event of Default
has occurred and is continuing or would result from such incurrence.

8.2      Exclusivity. For a period of thirty (30) days from March 17, 2000 (the
"Exclusivity Period"), the Company will not, and will not permit its officers,
directors, employees, agents or representatives to enter into or participate in
material discussions with any third party other than the Purchaser and its
Affiliates concerning (i) the possible acquisition or sale of the Company or of
substantially all of its stock or assets, including its technology; or (ii) an
agreement to loan One Million Dollars ($1,000,000) or more to the Company or
similar financing arrangement. If the Company breaches this provision, the
Company shall pay Purchaser, as liquidated damages, the sum of Two Million
Dollars ($2,000,000) without the necessity of proof by the Company of actual
damages (the "Liquidated Damages Amount"). The parties acknowledge that the
Liquidated Damages Amount is a fair and reasonable measure of the damages that
the Purchaser would sustain as a result of the breach of this provision, and
that the amount of actual damages in the event of such breach would be
impossible to ascertain. The parties acknowledge and agree that, in addition to
all other remedies available (at law or otherwise) to Purchaser, Purchaser shall
be entitled to equitable relief (including injunction and specific performance)
as a remedy for any breach or threatened breach of this provision.

8.3      Standstill. For a period of two years after the Closing, the Company
and the Purchaser shall not and shall cause their Affiliates to refrain from,
directly or indirectly, alone or in concert with others, acquiring, offering to
acquire (by purchase, gift or otherwise) or selling short the securities of the
other party hereto, or otherwise in any manner seeking to depress the price of
the securities of the other party hereto through trading in the securities of
such party or derivatives of such securities.

8.4      Transactions with Affiliates. The Company and each Subsidiary will not,
directly or indirectly, pay any funds to or for the account of, make any
investment in (whether by acquisition of stock or indebtedness, by loan,
advance, transfer of property, guarantee or other agreement to pay, purchase or
service, directly or indirectly, any Debt, or otherwise), lease, sell, transfer
or otherwise dispose of any assets, tangible or intangible, to, or participate
in, or effect any transaction in

                                       28
<PAGE>   30
connection with any joint enterprise or other joint arrangement with, any
Affiliate, except, (i) pursuant to those agreements specifically identified on
Schedule 8.4 attached hereto (with a copy of such agreements annexed to such
Schedule 8.4) (ii) on terms to the Company or such Subsidiary no less favorable
than terms that could be obtained by the Company or such Subsidiary from a
Person that is not an Affiliate of the Company upon negotiation at arms' length,
as determined in good faith by the Board of Directors of the Company or (iii)
with and among the Company and its Subsidiaries; PROVIDED that no determination
of the Board of Directors shall be required with respect to any such
transactions entered into in the ordinary course of business.

8.5      Merger or Consolidation. The Company will not, in a single transaction
or a series of related transactions, (i) consolidate with or merge with or into
any other Person, or (ii) permit any other Person to consolidate with or merge
into it, unless (w) either (A) the Company shall be the survivor of such merger
or consolidation or (B) the surviving Person shall expressly assume by
supplemental agreement all of the obligations of the Company under the
Securities and this Agreement; (x) immediately before and immediately after
giving effect to such transaction (including any indebtedness incurred or
anticipated to be incurred in connection with the transaction), no Default or
Event of Default shall have occurred and be continuing; (y) if the Company is
not the surviving entity, such surviving entity's common shares shall be listed
on either The New York Stock Exchange, American Stock Exchange, or the Nasdaq
Stock Market's National Market or the Nasdaq Small Cap Market and (z) the
Company has delivered to the Purchaser an officers' certificate stating that
such consolidation, merger or transfer complies with this Agreement, that the
surviving Person agrees to be bound by all of the agreements and covenants set
forth in the Transaction Agreements as if such surviving Person is the Company,
and that all conditions precedent in this Agreement relating to such transaction
have been satisfied.

8.6      Restrictions on Certain Amendments. Neither the Company nor any
Subsidiary will waive any provision of, amend, or suffer to be amended, any
provision of such entity's existing indebtedness, any Company Corporate Document
or Subsidiary Corporate Document if such amendment, in the Company's reasonable
judgment, would materially adversely affect the Purchaser without the prior
written consent of the Purchaser, which such consent shall not be unreasonably
withheld.

                                       29
<PAGE>   31
8.7      Limitation on Asset Sales. Neither the Company nor any Subsidiary will
consummate an Asset Sale unless (a) it receives consideration in cash at the
time of such Asset Sale at least equal to the fair market value of the assets
sold or otherwise disposed of (as determined in good faith by the Company's
Board of Directors) and (b) the Net Cash Proceeds of such sale are used either
(i) to purchase similar assets in the same line of business of equivalent value
within twelve (12) months of the date of the Asset Sale or (ii) to immediately
redeem or prepay the Convertible Note or (iii) for a combination of purchases
and prepayment permitted by the foregoing clauses (i) and (ii). As used herein,
"Asset Sale" means any sale, lease, transfer or other disposition (or series of
related sales, leases, transfers or dispositions) of shares of capital stock of
a Subsidiary (other than directors' qualifying shares), property or other assets
(each referred to for the purposes of this definition as a "disposition"),
including any disposition by means of a merger, consolidation or similar
transaction (other than as permitted under Section 8.5), other than a
disposition of property or assets in the ordinary course of business.

8.8      Limitation on Subsidiaries. Neither the Company nor any Subsidiary
shall permit the creation of any Subsidiaries in which the Company, directly or
indirectly, does not own at least a majority of the outstanding equity
interests, unless approved by the Purchaser, which such consent shall not be
unreasonably withheld.

8.9      Limitation on Stock Repurchases. So long as the Convertible Note is
outstanding, the Company shall not, without the prior written consent of the
Purchaser, redeem, repurchase or otherwise acquire (whether for cash or in
exchange for property or other securities or otherwise) in any rolling twelve
(12) month period more than five percent (5%) of the shares of capital stock of
the Company or any warrants, rights or options to purchase or acquire any such
shares held by persons others than the Purchaser.

9.       LIMITATION ON TRANSFERS

9.1      Restrictions on Transfer. From and after their respective dates of
issuance, none of the Securities shall be transferable except upon the
conditions specified in this Section 9, which conditions are intended to ensure
compliance with the provisions of the Securities Act in respect of the Transfer
of any of such Securities or any interest therein. Purchaser will use its best
efforts to cause any proposed transferee of any Securities held by it to agree
to take and hold such Securities subject to the provisions and upon the
conditions specified in this Section 9.

9.2      Restrictive Legends.

             (a) Each certificate for Securities issued to Purchaser or to a
subsequent transferee shall (except as contemplated by Section 7.12 and Section
9.1 hereof) include a legend in substantially the following form:

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
                  UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING SUCH
                  SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT
                  SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
                  ONLY (A) TO THE CORPORATION, (B) PURSUANT TO THE EXEMPTION
                  FROM REGISTRATION UNDER

                                       30
<PAGE>   32
                  THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF
                  AVAILABLE, OR (C) IF REGISTERED UNDER THE SECURITIES ACT.

9.3      Notice of Proposed Transfers. Prior to any proposed Transfer of the
Securities other than a transfer (i) registered under the Securities Act, (ii)
to an affiliate of Purchaser which is an "accredited investor" within the
meaning of Rule 501(a) under the Securities Act, PROVIDED that any such
transferee shall agree to be bound by the terms of this Agreement, and (iii) to
be made in reliance on Rule 144 under the Securities Act, the holder thereof
shall give written notice to the Company of such holder's intention to effect
such Transfer, setting forth the manner and circumstances of the proposed
Transfer, which shall be accompanied by (A) an opinion of counsel to the
Company, confirming that such transfer does not give rise to a violation of the
Securities Act, (B) representation letters in form and substance reasonably
satisfactory to the Company to ensure compliance with the provisions of the
Securities Act and (C) letters in form and substance reasonably satisfactory to
the Company from each such transferee stating such transferee's agreement to be
bound by the terms of this Agreement and the Registration Rights Agreement. Such
proposed Transfer may be effected only if the Company shall have received such
notice of transfer, opinion of counsel, representation letters and other letters
referred to in the immediately preceding sentence, whereupon the holder of such
Securities shall be entitled to Transfer such Securities in accordance with the
terms of the notice delivered by the holder to the Company.

10.      ADDITIONAL AGREEMENTS AMONG THE PARTIES

10.1     Liquidated Damages.

             (a) The Company shall, and shall use its best efforts to cause its
transfer agent to, issue and deliver shares of Common Stock within five (5)
trading days of delivery of a properly completed Notice of Conversion or Notice
of Exercise, as applicable (the "Deadline") to the Purchaser (or any party
receiving Securities by Transfer from Purchaser) at the address of the Purchaser
set forth in the Notice of Conversion or Notice of Exercise, as the case may be.
Consistent with Section 7.12 hereof, if such Notice of Conversion or Notice of
Exercise, as applicable, is delivered while a Required Registration Statement is
effective, such certificates shall be delivered without restrictive legend if
such shares are being transferred pursuant to such Required Registration
Statement. The Company understands that a delay in the issuance of such
certificates after the Deadline could result in economic loss to the Purchaser.

             (b) Without in any way limiting the Purchaser's right to pursue
other remedies, including actual damages and/or equitable relief, the Company
agrees that if delivery of the Conversion Shares or Warrant Shares following
delivery of a properly completed Notice of Conversion or Notice of Exercise is
more than one (1) Business Day after the Deadline, the Company shall pay to the
Purchaser as liquidated damages and not a penalty $1,000 per day in cash, for
each of the first two (2) days beyond the Deadline and $2,500 per day in cash
for each day thereafter that the Company fails to deliver such Common Stock.
Such cash amount shall be paid to the Purchaser by the fifth day of the month
following the month in which it has accrued or, at the option of the Purchaser
(by written notice to the Company by the first day of the month following the
month in which it has accrued).

                                       31
<PAGE>   33
10.2     Conversion Notice. The Company agrees that, in addition to any other
remedies which may be available to the Purchaser, including, but not limited to,
the remedies available under Section 10.1, in the event the Company fails for
any reason (other than as a result of actions taken by Purchaser in breach of
this Agreement) to effect delivery to Purchaser of certificates as contemplated
by Section 10.1 representing the shares of Common Stock on or prior to the
Deadline after conversion of the Convertible Note, or certificates contemplated
by Section 10.1 after exercise of any Warrant, Purchaser will be entitled, if
prior to the delivery of such certificates, to revoke the Notice of Conversion
or Notice of Exercise, as applicable, by delivering a notice to such effect to
the Company whereupon the Company and the Purchaser shall each be restored to
their respective positions immediately prior to delivery of such Notice of
Conversion or Notice of Exercise.

10.3     Delivery of Source Code. Within five (5) days of the Closing Date, the
Company shall deliver to the Purchaser in escrow, the Source Code and the
Commentary (each as defined in the License Agreement) for the software programs
entitled "Dr. Chart" and "@Rx," together will all necessary codes, keys and all
similar types of access information in order to access all such Source Code and
to customize, modify, and manipulate the related software programs. The
Purchaser shall deposit materials in a secure, environmentally safe, locked
facility which is accessible only to authorized representatives of the
Purchaser. The Purchaser shall have the obligation to use its best efforts to
protect and maintain the confidentiality of the deposit materials. The Purchaser
shall not disclose, transfer, make available, or use the deposit materials and
shall not disclose the contents of the deposit material to any third party or to
any unauthorized personnel. Upon the occurrence of an Event of Default which
remains uncured for a period of thirty (30) days, the Company shall grant to the
Purchaser a perpetual, non-exclusive, non-transferable, limited license to use
and copy "Dr. Chart" and "@Rx", in source code form, and to create derivative
works therefrom, thirty (30) days from such Event of Default if such Event of
Default remains uncured. The Purchaser will acknowledge and agree that such
license shall not commence unless and until such Event of Default occurs and
remains uncured for a period of thirty (30) days, and the Purchaser shall have
no right to use any source code unless and until the occurrence and continuance
of such Event of Default.

10.4     Registration Rights; Additional Registration Statements.

             (a) The Company shall grant the Purchaser registration rights
covering the Conversion Shares and Warrant Shares (the "Registrable Securities")
on the terms set forth in the Registration Rights Agreement.

             (b) At any time during the period ending on the first date that
follows a total of 90 days following the effectiveness of a Required
Registration Statement during which there has been no (i) Registration Default
relating to such Required Registration Statement or (ii) any other delay in the
ability of the Purchaser to sell the Common Stock pursuant to such Required
Registration Statement, the Company agrees that it will not cause any
registration statement (other than a Required Registration Statement or an
Issuer Registration Statement) to be declared effective by the SEC.

             (c) At any time during the period beginning on the date Purchaser
demands registration pursuant to the Registration Rights Agreement and ending on
the date of the effectiveness of a Required Registration Statement filed
pursuant to such demand, the Company

                                       32
<PAGE>   34
agrees that it will not file any registration statement (other a Required
Registration Statement or an Issuer Registration Statement) without the written
consent of the Purchaser.

             (d) A "Registration Default" shall have occurred if

                 (i) a registration statement on which the Registrable
Securities are listed pursuant to the Registration Rights Agreement (a "Required
Registration Statement") is not declared effective by the SEC within 120 days of
the filing thereof (the "Required Effectiveness Date"); or

                 (ii) such effectiveness is not maintained for a continuous
period of at least 90 days (the "Registration Maintenance Period"), and provided
the Purchaser has not unreasonably delayed providing any information concerning
the Purchaser as selling shareholder as may be reasonably requested by the
Company for inclusion in such Required Registration Statement; or

                 (iii) the Company has filed or caused to be declared effective
a registration statement (other than a Required Registration Statement or an
Issuer Registration Statement) in breach of Sections 10.4(b) or (c).

11.      ADJUSTMENT OF FIXED PRICE

11.1     Reorganization. The Conversion Price, and the Maximum Number of Shares
(collectively, the "Fixed Prices") shall be adjusted as hereafter provided.

11.2     Share Reorganization. If and whenever the Company shall subdivide the
outstanding shares of Common Stock into a greater number of shares, consolidate
the outstanding shares of Common Stock into a smaller number of shares, issue
Common Stock or securities convertible into or exchangeable for shares of Common
Stock as a stock dividend to all or substantially all the holders of Common
Stock, or make a distribution on the outstanding Common Stock to all or
substantially all the holders of Common Stock payable in Common Stock or
securities convertible into or exchangeable for Common Stock, any of such events
being herein called a "Share Reorganization," then in each such case the
applicable Fixed Price shall be adjusted, effective immediately after the record
date at which the holders of Common Stock are determined for the purposes of the
Share Reorganization or, if no record date is fixed, the effective date of the
Share Reorganization, by multiplying the applicable Fixed Price in effect on
such record or effective date, as the case may be, by a fraction of which:

            (a) the numerator shall be the number of shares of Common Stock
outstanding on such record or effective date (without giving effect to the
transaction); and

            (b) the denominator shall be the number of shares of Common Stock
outstanding after giving effect to such Share Reorganization, including, in the
case of a distribution of securities convertible into or exchangeable for shares
of Common Stock, the number of shares of Common Stock that would have been
outstanding if such securities had been converted into or exchanged for Common
Stock on such record or effective date.

                                       33
<PAGE>   35
11.3     Rights Offering. If and whenever the Company shall issue to all or
substantially all the holders of Common Stock, rights, options or warrants under
which such holders are entitled, during a period expiring not more than
forty-five (45) days after the record date of such issue, to subscribe for or
purchase Common Stock (or Derivative Securities), at a price per share (or, in
the case of Derivative Securities, at an exchange or conversion price per share
at the date of issue of such securities) of less than 95% of the Market Price of
the Common Stock on such record date (any such event being herein called a
"Rights Offering"), then in each such case the applicable Fixed Price shall be
adjusted, effective immediately after the record date at which holders of Common
Stock are determined for the purposes of the Rights Offering, by multiplying the
applicable Fixed Price in effect on such record date by a fraction of which:

            (a) the numerator shall be the sum of the number of shares of Common
Stock outstanding on such record date, and a number obtained by dividing:

                 (i) either, (x) the product of the total number of shares of
Common Stock so offered for subscription or purchase and the price at which such
shares are so offered, or (y) the product of the maximum number of shares of
Common Stock into or for which the convertible or exchangeable securities so
offered for subscription or purchase may be converted or exchanged and the
conversion or exchange price of such securities, or, as the case may be, by

                 (ii) the Market Price of the Common Stock on such record date;
and

            (b) the denominator shall be the sum of the number of shares of
Common Stock outstanding on such record date, and the number of shares of Common
Stock so offered for subscription or purchase (or, in the case of Derivative
Securities), the maximum number of shares of Common Stock for or into which the
securities so offered for subscription or purchase may be converted or
exchanged).

To the extent that such rights, options or warrants are not exercised prior to
the expiry time thereof, the applicable Fixed Price shall be readjusted
effective immediately after such expiry time to the applicable Fixed Price which
would then have been in effect upon the number of shares of Common Stock (or
Derivative Securities) actually delivered upon the exercise of such rights,
options or warrants.

11.4     Special Distribution. If and whenever the Company shall issue or
distribute to all or substantially all the holders of Common Stock shares of the
Company of any class, other than Common Stock, rights, options or warrants, or
any other assets (excluding cash dividends and equivalent dividends in shares
paid in lieu of cash dividends in the ordinary course); and if such issuance or
distribution does not constitute a Share Reorganization or a Rights Offering
(any such event being herein called a "Special Distribution"), then in each such
case the applicable Fixed Price shall be adjusted, effective immediately after
the record date at which the holders of Common Stock are determined for purposes
of the Special Distribution, by multiplying the applicable Fixed Price in effect
on such record date by a fraction of which:

            (a) the numerator shall be the difference between (i) the product of
the number of shares of Common Stock outstanding on such record date and the
Market Price of the Common

                                       34
<PAGE>   36
Stock on such date; and (ii) the fair market value, as determined by the
Directors (whose determination shall be conclusive), to the holders of Common
Stock of the shares, rights, options, warrants, evidences of indebtedness or
other assets issued or distributed in the Special Distribution (net of any
consideration paid therefor by the holders of Common Stock), and

            (b) the denominator shall be the product of the number of shares of
Common Stock outstanding on such record date and the Market Price of the Common
Stock on such date.

11.5     Capital Reorganization. If and whenever there shall occur a
reclassification or redesignation of the shares of Common Stock or any change of
the shares of Common Stock into other shares, other than in a Share
Reorganization, a consolidation, merger or amalgamation of the Company with, or
into another body corporate, or the transfer of all or substantially all of the
assets of the Company to another body corporate, (any such event being herein
called a "Capital Reorganization"), then in each such case the holder who
exercises the right to convert Convertible Note or exercise the Warrants after
the effective date of such Capital Reorganization shall be entitled to receive
and shall accept, upon the exercise of such right, in lieu of the number of
shares of Common Stock to which such holder was theretofore entitled upon the
exercise of the conversion privilege, the aggregate number of shares or other
securities or property of the Company or of the body corporate resulting from
such Capital Reorganization that such holder would have been entitled to receive
as a result of such Capital Reorganization if, on the effective date thereof,
such holders had been the holder of the number of shares of Common Stock to
which such holder was theretofore entitled upon conversion of the Convertible
Note; PROVIDED, however, that no such Capital Reorganization shall be
consummated in effect unless all necessary steps shall have been taken so that
the holder of the Convertible Note shall thereafter be entitled to receive such
number of shares or other securities of the Company or of the body corporate
resulting from such Capital Reorganization, subject to adjustment thereafter in
accordance with provisions the same, as nearly as may be possible, as those
contained above.

11.6     Adjustment Rules. The following rules and procedures shall be
applicable to adjustments made in this Section 11:

            (a) no adjustment in the applicable Fixed Price shall be required
unless such adjustment would result in a change of at least 1% in the applicable
Fixed Price then in effect; PROVIDED, however, that any adjustments which, but
for the provisions of this clause would otherwise have been required to be made,
shall be carried forward and taken into account in any subsequent adjustment;

            (b) no adjustment in the applicable Fixed Price shall be made
pursuant to this Article 11 in respect of the issue from time to time of Common
Stock to holders of Common Stock who exercise an option to receive substantially
equivalent dividends in Common Stock in lieu of receiving cash dividends in the
ordinary course; and

            (c) if a dispute shall at any time arise with respect to any
adjustment of the applicable Fixed Price, such dispute shall be conclusively
determined by the auditors of the Company or, if they are unable or unwilling to
act, by a firm of independent chartered accountants selected by the

                                       35
<PAGE>   37
Directors of the Company and any such determination shall be binding upon the
Company and Purchaser.

11.7     Certificate as to Adjustment. The Company shall from time to time
promptly after the occurrence of any event which requires an adjustment in the
applicable Fixed Price deliver to the Purchaser a certificate specifying the
nature of the event requiring the adjustment, the amount of the adjustment
necessitated thereby, the applicable Fixed Price after giving effect to such
adjustment and setting forth, in reasonable detail, the method of calculation
and the facts upon which such calculation is based.

11.8     Notice to Purchaser. If the Company shall fix a record date for: any
Share Reorganization (other than the subdivision of outstanding Common Stock
into a greater number of shares or the consolidation of outstanding Common Stock
into a smaller number of shares), any Rights Offering, any Special Distribution,
any Capital Reorganization (other than a reclassification or redesignation of
the Common Stock into other shares), or any cash dividend, the Company shall,
not less than 10 days prior to such record date or, if no record date is fixed,
prior to the effective date of such event, give to the Purchaser notice of the
particulars of the proposed event or the extent that such particulars have been
determined at the time of giving the notice.

12.      EVENTS OF DEFAULT

12.1     Events of Default. Each of the following events is an "Event of
Default" under this Agreement and the Transaction Agreements:

            (a) failure by the Company to pay or prepay when due, all or any
part of the principal on the Convertible Note (whether by virtue of the
agreements specified in this Agreement or the Convertible Note) and the
continuance of such failure for thirty (30) days);

            (b) failure by the Company or any of its Subsidiaries to pay or
prepay when due, all or any part of the principal on the Permitted Debt and the
continuance of such failure for thirty (30) days);

            (c) failure by the Company to pay (i) within thirty (30) days of the
due date thereof any interest on the Convertible Note or (ii) within thirty (30)
days following the delivery of notice to the Company of any fees or any other
amount payable (not otherwise referred to in (a) above or this clause (b)) by
the Company under this Agreement;

            (d) failure by the Company to timely comply with the requirements of
Section 10.1(a) or (b) hereof, which failure is not cured within thirty (30)
days of such failure;

            (e) an event of default or breach shall have occurred and continued
for thirty (30) days after notice from the Purchaser under any Transaction
Agreement;

                                       36
<PAGE>   38
            (f) failure on the part of the Company or any of its Subsidiaries to
observe or perform any covenant contained in any part of Sections 7 or 8 of this
Agreement and continuation of such default for thirty (30) days after notice;

            (g) the Company shall have its Common Stock delisted or suspended
from the Nasdaq Market for at least fifteen (15) consecutive Trading Days and is
unable to obtain a listing on either the New York Stock Exchange, the American
Stock Exchange, the Nasdaq Stock Market's SmallCap Market or the Nasdaq Market
within such fifteen (15) Trading Days;

            (h) the Company or any of its Subsidiaries has commenced a voluntary
case or other proceeding seeking liquidation, winding-up, reorganization or
other relief with respect to itself or its debts under any bankruptcy,
insolvency, moratorium or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, or has consented
to any such relief or to the appointment of or taking possession by any such
official in an involuntary case or other proceeding commenced against it, or has
made a general assignment for the benefit of creditors;

            (i) an involuntary case or other proceeding has been commenced
against the Company or any of its Subsidiaries seeking liquidation, winding-up,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency, moratorium or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, and
such involuntary case or other proceeding shall remain undismissed and unstayed
for a period of sixty (60) days, or an order for relief has been entered against
the Company under the federal bankruptcy laws as now or hereafter in effect;

            (j) any representation, warranty, certification or statement made by
the Company or any of its Subsidiaries in any Transaction Agreement or which is
contained in any certificate, document or financial or other statement furnished
at any time under or in connection with any Transaction Agreement shall prove to
have been untrue in any material respect when made and such breach shall
continue for thirty (30) days after notice; or

            (k) any member of the ERISA Group has failed to pay when due an
amount or amounts aggregating in excess of $100,000 which it shall have become
liable to pay under Title IV of ERISA; or notice of intent to terminate a
Material Plan has been filed under Title IV of ERISA by any member of the ERISA
Group, any plan administrator or any combination of the foregoing; or the PBGC
has instituted proceedings under Title IV of ERISA to terminate, to impose
liability (other than for premiums under Section 4007 of ERISA) in respect of,
or to cause a trustee to be appointed to administer any Material Plan; or a
condition has existed by reason of which the PBGC is entitled to obtain a decree
adjudicating that any Material Plan must be terminated; or there has occurred a
complete or partial withdrawal from, or a default, within the meaning of Section
4219(c) (5) of ERISA, with respect to, one or more Multiemployer Plans which
could cause one or more members of the ERISA Group to incur a current payment
obligation in excess of $100,000;

                                       37
<PAGE>   39
12.2     Default Remedies. If one or more of the above Events of Default shall
have occurred and be continuing, then, and in every such occurrence, the
Purchaser shall have the right to, by notice to the Company:

            (a) declare the Convertible Note to be, and the Convertible Note
shall thereon become immediately due and payable, PROVIDED that in the case of
any of the Events of Default specified in paragraph (h) or (i) above with
respect the Company or any Subsidiary, then, without any notice to the Company
or any other act by any Purchaser, the entire amount of the Convertible Note
shall become immediately due and payable;

            (b) convert the Convertible Note at fifty percent (50%) of the
Conversion Price;

            (c) exercise its rights under the Security Agreement; and

            (d) exercise its rights under the License Agreement, including the
extension of the term of the License Agreement to a perpetual license and the
release of the Purchaser of its obligation to make any payments to the Company
pursuant thereto;

PROVIDED further, if any Event of Default has occurred and is continuing, and
irrespective of whether the Convertible Note has been declared immediately due
and payable hereunder, any Purchaser may proceed to protect and enforce the
rights of Purchaser by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained
herein or in the Convertible Note, or for an injunction against a violation of
any of the terms hereof or thereof, or in aid of the exercise of any power
granted hereby or thereby or by law or otherwise.

12.3     Powers and Remedies Cumulative. No right or remedy herein conferred
upon or reserved to the Purchaser is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
Every power and remedy given by the Convertible Note or by law may be exercised
from time to time, and as often as shall be deemed expedient, by the Purchaser.

13.      MISCELLANEOUS

13.1     Notices. All notices, demands and other communications to any party
hereunder shall be in writing (including telecopier or similar writing) and
shall be given to such party at the address set forth below, or such other
address as such party may hereafter specify for the purpose to the other
parties. Each such notice, demand or other communication shall be effective (i)
if given by telecopy, when such telecopy is transmitted to the telecopy number
specified below, (ii) if given by mail, four (4) days after such communication
is deposited in the mail with first class postage prepaid, addressed as
aforesaid or (iii) if given by any other means, when delivered at the address
specified in or pursuant to this Section.

                                       38
<PAGE>   40
         If to Company:    AHT Corporation
                           555 White Plains Road
                           Tarrytown, NY 10591
                           Telecopy: (914) 332-1741
                           Attn:   Jonathan Edelson, Chairman and
                                   Chief Executive Officer
                                   Eddy Friedfeld, General Counsel

         with a copy to:   John Suydam
                           O'Sullivan Graev & Karabell, LLP
                           30 Rockefeller Plaza
                           New York, NY 10112
                           Telecopy: (212) 728-5950

         If to Purchaser:  Cybear, Inc.
                           5000 Blue Lake Drive, Suite 200
                           Boca Raton, FL 33431
                           Telecopy: (561) 994-2828
                           Attn: Timothy E. Nolan, President and
                                 Chief Operating Officer

         with a copy to:   Charles J. Rennert
                           Berman Wolfe Rennert Vogel & Mandler, P.A.
                           Bank of America Tower
                           100 Southeast 2nd Street, Suite 3500
                           Miami, FL 33131
                           Telecopy: 305-373-6036

13.2     No Waivers; Amendments. No failure or delay on the part of any party in
exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. No provision of this Agreement may be amended,
supplemented or waived unless such amendment, supplement or waiver is in writing
and is signed by the Company and the Purchaser.

13.3     Indemnification.

            (a) The Company agrees to indemnify and hold harmless the Purchaser,
its Affiliates, and each Person, if any, who controls Purchaser, or any of its
Affiliates, within the meaning of the Securities Act or the Exchange Act (each a
"Controlling Person"), and the respective partners, agents, employees, officers
and directors of Purchaser, its Affiliates and any such Controlling Person (each
an "Indemnified Party" and collectively, the "Indemnified Parties"), from and
against any and all losses, claims, damages, liabilities and expenses
(including, without limitation, and as incurred, reasonable costs of
investigating, preparing or defending any such claim or action, whether or not
such Indemnified Party is a party thereto, PROVIDED that the Company shall not
be obligated to advance such costs to any Indemnified Party other than the
Purchaser unless it has received from such Indemnified Party an undertaking to
repay to the Company the costs so advanced if it should be determined by final
judgment of a court of competent jurisdiction that such Indemnified Party was

                                       39
<PAGE>   41
not entitled to indemnification hereunder with respect to such costs) which may
be incurred by such Indemnified Party in connection with any investigative,
administrative or judicial proceeding brought or threatened that relates to or
arises out of, or is in connection with any activities contemplated by any
Transaction Agreement or any other services rendered in connection herewith;
PROVIDED that the Company will not be responsible for any claims, liabilities
losses, damages or expenses that are determined by final judgment of a court of
competent jurisdiction to result from such Indemnified Party's gross negligence,
willful misconduct or bad faith.

            (b) If any action shall be brought against an Indemnified Party with
respect to which indemnity may be sought against the Company under this
Agreement, such Indemnified Party shall promptly notify the Company in writing
and the Company, at its option, may, assume the defense thereof, including the
employment of counsel reasonably satisfactory to such Indemnified Party and
payment of all reasonable fees and expenses. The failure to so notify the
Company shall not affect any obligations the Company may have to such
Indemnified Party under this Agreement or otherwise unless the Company is
materially adversely affected by such failure. Such Indemnified Party shall have
the right to employ separate counsel in such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party, unless: (i) the Company has failed to assume
the defense and employ counsel or (ii) the named parties to any such action
(including any impleaded parties) include such Indemnified Party and the
Company, and such Indemnified Party shall have been advised by counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the Company, in which case, if such
Indemnified Party notifies the Company in writing that it elects to employ
separate counsel at the expense of the Company, the Company shall not have the
right to assume the defense of such action or proceeding on behalf of such
Indemnified Party, PROVIDED, however, that the Company shall not, in connection
with any one such action or proceeding or separate but substantially similar or
related actions or proceedings in the same jurisdiction arising out of the same
general allegations or circumstances, be responsible hereunder for the
reasonable fees and expenses of more than one such firm of separate counsel, in
addition to any local counsel, which counsel shall be designated by the
Purchaser. The Company shall not be liable for any settlement of any such action
effected without the written consent of the Company (which shall not be
unreasonably withheld) and the Company agrees to indemnify and hold harmless
each Indemnified Party from and against any loss or liability by reason of
settlement of any action effected with the consent of the Company. In addition,
the Company will not, without the prior written consent of the Purchaser, settle
or compromise or consent to the entry of any judgment in or otherwise seek to
terminate any pending or threatened action, claim, suit or proceeding in respect
to which indemnification or contribution may be sought hereunder (whether or not
any Indemnified Party is a party thereto) unless such settlement, compromise,
consent or termination includes an express unconditional release of the
Purchaser and the other Indemnified Parties, satisfactory in form and substance
to the Purchaser, from all liability arising out of such action, claim, suit or
proceeding.

            (c) If for any reason the foregoing indemnity is unavailable
(otherwise than pursuant to the express terms of such indemnity) to an
Indemnified Party or insufficient to hold an Indemnified Party harmless, then in
lieu of indemnifying such Indemnified Party, the Company shall contribute to the
amount paid or payable by such Indemnified Party as a result of such claims,
liabilities, losses, damages, or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and by the Purchaser on the other from the

                                       40
<PAGE>   42
transactions contemplated by this Agreement or (ii) if the allocation provided
by clause (i) is not permitted under applicable law, in such proportion as is
appropriate to reflect not only the relative benefits received by the Company on
the one hand and the Purchaser on the other, but also the relative fault of the
Company and the Purchaser as well as any other relevant equitable
considerations. Notwithstanding the provisions of this Section 13.3, the
aggregate contribution of all Indemnified Parties shall not exceed the amount of
interest and fees actually received by the Purchaser pursuant to this Agreement.
It is hereby further agreed that the relative benefits to the Company on the one
hand and the Purchaser on the other with respect to the transactions
contemplated hereby shall be determined by reference to, among other things,
whether any untrue or alleged untrue statement of material fact or the omission
or alleged omission to state a material fact related to information supplied by
the Company or by the Purchaser and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. No Person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation

            (d) The indemnification, contribution and expense reimbursement
obligations set forth in this Section 13.3: (i) shall be in addition to any
liability the Company may have to any Indemnified Party at common law or
otherwise, (ii) shall survive the termination of this Agreement and the other
Transaction Agreements and the payment in full of the Convertible Note and (iii)
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of the Purchaser or any other Indemnified
Party.

13.4     Expenses: Documentary Taxes. The Company agrees to pay (i) all
reasonable out-of-pocket expenses of the Purchaser, including fees and
disbursements of counsel, in connection with any waiver or consent hereunder or
under any other Transaction Document or any amendment hereof or thereof and (ii)
all reasonable out-of-pocket expenses of the Purchaser and each holder of
Securities, including fees and disbursements of counsel, in connection with any
collection, bankruptcy, insolvency and other enforcement proceedings resulting
therefrom. In addition, the Company agrees to pay any and all stamp, transfer
and other similar taxes, assessments or charges payable in connection with the
execution and delivery of any Transaction Agreement or the issuance of the
Securities to the Purchaser, excluding its assigns.

13.5     Payment. The Company agrees that, so long as Purchaser shall own the
Convertible Note purchased by it from the Company hereunder, the Company will
make payments to Purchaser of all amounts due thereon by wire transfer by 1:00
P.M. (Eastern Standard Time) on the date of payment.

13.6     Usury. It is the intention of the parties to comply with all applicable
usury laws. Accordingly, it is agreed that notwithstanding any provision to the
contrary in the Transaction Agreements, in no event shall the Transaction
Agreements require the payment or permit the collection of interest in excess of
the maximum amount permitted by such laws. If any such excess of interest is
contracted for, charged or received under the Transaction Agreements, or in the
event the maturity of the indebtedness evidenced by such Transaction Agreements
is accelerated in whole or in part, so that under any such circumstance, the
amount of interest contracted for, charged or received shall exceed the maximum
amount of interest permitted by

                                       41
<PAGE>   43
the applicable usury laws, then in any such event (a) the provisions of this
paragraph shall govern or control, (b) neither the Company nor any other person
or entity now or hereafter liable for repayment of the Convertible Note shall be
obligated to pay the amount of such interest not permitted by the applicable
usury laws, (c) any such excess which may have been collected shall be refunded
to the Company and (d) the effective rate of interest for the Convertible Note
shall be automatically reduced to the maximum lawful rate allowed under
applicable usury laws.

13.7     Successors and Assigns. This Agreement, the Schedules and Exhibits
hereto, and the documents and instruments and other agreements among the parties
hereto referenced herein: (a) constitute the entire agreement among the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof; (b) shall be binding upon the Company and upon the
Purchaser and its successors and assigns; (c) are not intended to confer upon
any other person any rights or remedies hereunder; and (d) shall not be assigned
by operation of law or otherwise except as otherwise specifically provided,
except that Purchaser may assign its rights and delegate its respective
obligations hereunder and thereunder to Andrx Corporation or another of its
Affiliates. All provisions hereunder purporting to give rights to Purchaser and
its affiliates or to holders of Securities are for the express benefit of such
Persons and their successors and assigns.

13.8     Brokers. The Company represents and warrants that it has not employed
any broker, finder, financial advisor or investment banker who would be entitled
to any brokerage, finder's or other fee or commission payable by the Company or
the Purchaser in connection with the sale of the Securities. Purchaser hereby
warrants that it has not employed any broker, finder, financial advisor or
investment banker who would be entitled to any brokerage, finder's or other fee
or commission payable by the Company in connection with the sale of the
Securities.

13.9     CHOICE OF LAW. THIS AGREEMENT AND ALL CLAIMS ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY TRANSACTION AGREEMENT, WHETHER ASSERTED IN CONTRACT OR
TORT, SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF DELAWARE. EACH PARTY HERETO HEREBY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES DISTRICT COURT IN THE SOUTHERN DISTRICT OF
FLORIDA AND OF ANY FLORIDA STATE COURT SITTING IN PALM BEACH COUNTY, FLORIDA FOR
PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH
A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

13.10    Waiver of Jury Trial. The parties hereto each knowingly, voluntarily
and intentionally waive their respective rights to a trial by jury in respect of
any litigation related to or arising from this Agreement, or any course of
conduct, course of dealing, statement or actions of any of the parties hereto.

                                       42
<PAGE>   44
13.11    Further Assurance. The Company and the Purchaser shall each take such
further actions as requested by any party hereto which are necessary, desirable
or proper to carry out the purposes of this Agreement and each Transaction
Agreement.

13.12    Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated unless a failure of consideration
would result thereby.

13.13    Survival. All provisions contained in this Agreement (unless
specifically noted to the contrary) shall survive the payment in full of the
Convertible Note and shall remain operative and in full force and effect.

13.14    Counterparts. This Agreement may be executed by telecopy signature and
in any number of counterparts each of which shall be an original with the same
effect as if the signatures there to and hereto were upon the same instrument.

                         [signatures on following page]

                                       43
<PAGE>   45
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers, as of the date first
above written.

AHT CORPORATION                                 CYBEAR, INC.

By: /s/ Jonathan Edelson                         By: /s/ Eric Moscow
   ---------------------------                      ---------------------------
Name: Jonathan Edelson                          Name: Eric Moskow, M.D.
Title: Chairman and Chief Executive Officer     Title: Executive Vice President

                                       44
<PAGE>   46
                                    EXHIBIT A

                   FORM OF 10% SENIOR SECURED CONVERTIBLE NOTE
<PAGE>   47
                                    EXHIBIT B

                                 FORM OF WARRANT
<PAGE>   48
                                    EXHIBIT C

                      FORM OF REGISTRATION RIGHTS AGREEMENT
<PAGE>   49
                                    EXHIBIT D

                          FORM OF NOTICE OF CONVERSION

         The undersigned hereby irrevocably elects to convert $__________ of the
Company's 10% Senior Secured Convertible Note (the Convertible Note") into
shares of Common Stock of AHT Corporation, par value $.01 per share, according
to the conditions set forth in such Convertible Note, as of the date written
below.

         If Shares are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer and other taxes and charges
payable with respect thereto.

         Date of Conversion:         _________, 20__

         Applicable
         Conversion Price:          $_________ per share

         Signature of Holder:        ___________________________

                                     Name:_____________________

                                     Title: _____________________

         SSN or EIN of Holder:       ____________________

         Address of Holder:          ____________________________

                                     ____________________________

SHARES ARE TO BE REGISTERED IN THE FOLLOWING NAME:

         Name:                      ____________________

         SSN or EIN:                ____________________

         Address:                   ____________________________

                                     ____________________________

         Telephone Number:          (___) ___-____
         Fax Number:                (___) ___-____

SHARES ARE TO BE SENT OR DELIVERED TO THE FOLLOWING ACCOUNT:

         Account Name:              ____________________

         Address:                   ____________________________

                                     ____________________________
<PAGE>   50
                                    EXHIBIT E

                           FORM OF SECURITY AGREEMENT
<PAGE>   51
                                    EXHIBIT F

                               SUBORDINATION TERMS

         Any Debt to be issued as permitted by clause (e) of the definition of
Permitted Debt in the Securities Purchase Agreement shall contain the following
provisions and no provision inconsistent with the following provisions:

                           ARTICLE __ -- SUBORDINATION

1.       AGREEMENT OF SUBORDINATION. The Company covenants and agrees, and each
holder of the indebtedness created by this instrument (this "Debt") by its
acceptance hereof or thereof covenants and agrees, expressly for the benefit of
holders of Senior Debt, that this Debt shall be issued subject to the provisions
of this Article; and each person holding this Debt, whether upon original issue
or upon transfer, assignment or exchange thereof, accepts and agrees to be bound
by such provisions.

The payment of the principal of, premium, if any, and interest on this Debt
(including, without limitation, upon any redemption or repurchase of this Debt)
shall, to the extent and in the manner hereinafter set forth, be subordinated
and subject in right of payment to the prior payment in full of all Senior Debt
in cash or other payment satisfactory to the holders of such Senior Debt.

No provision of this Article shall prevent the occurrence of any default or
event of default with respect to this Debt.

2.       PAYMENTS TO HOLDERS OF THIS DEBT.

(a)(1) No payment shall be made with respect to the principal of, premium, if
any, or interest on this Debt (including, without limitation, the redemption
price with respect to any of this Debt to be called for redemption in accordance
with its terms or any repurchase of this Debt) if:

(i) a default in the payment of principal, premium, if any, interest or other
obligations in respect of the Senior Debt occurs and is continuing (a "Payment
Default"), unless and until such Payment Default shall have been cured or waived
or shall have ceased to exist; or

(ii) a default, other than a Payment Default, on any Senior Debt occurs and is
continuing that then permits holders of such Senior Debt to accelerate its
maturity and the holder of this Debt (or indenture trustee or other
representative thereof) receives a notice of the default (a "Payment Blockage
Notice") from a holder of Senior Debt, a representative of the holder of such
Senior Debt or the Company (a "Non-Payment Default").

If the holder of this Debt (or indenture trustee or representative thereof)
receives any Payment Blockage Notice pursuant to the immediately preceding
clause (ii), no subsequent Payment Blockage Notice shall be effective for
purposes of this Section __ unless and until (A) at least 365 days shall have
elapsed since the initial effectiveness of the immediately prior Payment
Blockage Notice and (B) all scheduled payments of principal, premium, if any,
and interest on this Debt that have become due and are required by the terms of
this Debt to be paid in cash have been paid in full in cash. No

<PAGE>   52
Non-Payment Default that existed or was continuing on the date of delivery of
any Payment Blockage Notice to the holder of this Debt (or indenture trustee or
other representative thereof) shall be, or be made, the basis for a subsequent
Payment Blockage Notice, unless such Non-Payment Default is based upon facts or
events arising after the date of delivery of such Payment Blockage Notice.

(2) The Company may and shall resume payments on and distributions in respect of
this Debt upon: (A) in the case of a Payment Default, the date upon which any
such Payment Default is cured or waived or ceases to exist, or (B) in the case
of a Non-Payment Default, the earlier of (a) the date upon which such default is
cured or waived or ceases to exist or (b) 179 days after the applicable Payment
Blockage Notice is received by the holder of this Debt (or indenture trustee or
other representative thereof) if the maturity of such Senior Debt has not been
accelerated and no Payment Default with respect to any Senior Debt has occurred
which has not been cured or waived (in which case clause (A) shall be
applicable), unless this Section __ otherwise prohibits the payment or
distribution at the time of such payment or distribution.

(b) A "Reorganization" shall include and mean any dissolution, winding up, total
or partial liquidation or reorganization of the Company, or any similar
transaction resulting in any payment or distribution of cash, securities or
other property ("Distributions") to creditors, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceedings.

(c) Upon any Reorganization, all amounts due or to become due upon all Senior
Debt shall first be paid in full in cash or other payment satisfactory to the
holders of such Senior Debt, or payment thereof provided for in cash or other
payment satisfactory to the holders of such Senior Debt, before any Distribution
is made to, for, or on account of this Debt or any portion thereof (including,
without limitation, any Distribution in connection with a payment of principal,
interest or premium or the redemption or repurchase of all or any portion of
this Debt) (other than Distributions in the form of junior securities as defined
in Section 7).

(d) Upon any Reorganization, all Distributions (other than Distributions in the
form of Junior Securities) on account of this Debt shall be made by the Company
or by any receiver, trustee in bankruptcy, liquidating trustee, agent, assignee
for the benefit of creditors or other person making such Distribution directly
to the holders of Senior Debt (pro rata to such holders on the basis of the
respective amounts of Senior Debt held by such holders, or as otherwise required
by law or a court order or the terms of any subordination as between or among
such Senior Debt) or their respective representative or representatives, as
their respective interests may appear, to the extent necessary to pay all Senior
Debt in full in cash or other payment satisfactory to the holders of such Senior
Debt, after giving effect to any concurrent payment or distribution to or for
the holders of Senior Debt, before any Distribution is made on account of this
Debt.

(e) In the event that, notwithstanding the foregoing, a Distribution (other than
a Distribution in the form of Junior Securities) on account of this Debt is
received by a holder thereof (or indenture trustee or other representative
thereof) from the Company (including, without limitation, by way of set-off) or
from the holder (or indenture trustee or other representative thereof) of any
indebtedness subordinated to this Debt, such Distribution shall be held by the
recipient or recipients thereof in trust for the benefit of, and shall be paid
over or delivered to, the holders of Senior Debt, or their

                                      F-2
<PAGE>   53
respective representative or representatives, in the same manner and fashion as
the Company is obligated to make the same under paragraphs (d) and (e) above.

(f) In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities (including, without limitation, by way of set-off or
otherwise), prohibited by the foregoing, shall be received by any holder of this
Debt (or indenture trustee or other representative thereof) before all Senior
Debt is paid in full in cash or other payment satisfactory to the holders of
such Senior Debt, or provision is made for such payment in accordance with its
terms in cash or other payment satisfactory to the holders of such Senior Debt,
such payment or distribution shall be held by the recipient or recipients in
trust for the benefit of, and shall be paid over or delivered to, the holders of
Senior Debt or their respective representative or representatives, as their
respective interests may appear, as calculated by the Company, for application
to the payment of all Senior Debt remaining unpaid to the extent necessary to
pay all Senior Debt in full in cash or other payment satisfactory to the holders
of such Senior Debt, after giving effect to any concurrent payment or
distribution (or provision therefor) to or for the holders of such Senior Debt.

(g) In the event of the acceleration of this Debt because of an event of default
or any amount of principal of or premium on this Debt becomes due prior to the
maturity date of this Debt, no payment or distribution (other than junior
securities) shall be made any holder of this Debt (or indenture trustee or other
representative thereof) in respect of the principal of, premium, if any, or
interest on this Debt (including, without limitation, any redemption or
repurchase price of any of this Debt called for redemption in accordance with
its terms or submitted for redemption or repurchase at the option of the holder
of this Debt in accordance with its terms, as the case may be), until all Senior
Debt has been paid in full in cash or other payment satisfactory to the holders
of such Senior Debt or such acceleration is rescinded in accordance with the
terms of this Debt. If payment of this Debt is accelerated because of an event
of default, the Company, the holder of this Debt (or indenture trustee or other
representative thereof) shall promptly notify holders of the Senior Debt of such
acceleration.

(h) Except as shall be specifically prohibited by this Section _, nothing
contained in this Article shall prevent the Company from making any scheduled
payment of principal or interest on this Debt.

3.       SUBROGATION OF THIS DEBT. Subject to the payment in full of all Senior
Debt in cash or other payment satisfactory to the holders of such Senior Debt,
the rights of the holders of this Debt shall be subrogated to the extent of the
payments or distributions made to the holders of such Senior Debt pursuant to
the provisions of this Article (equally and ratably with the holders of all
indebtedness of the Company which by its express terms is subordinated to Senior
Debt to substantially the same extent as this Debt is subordinated and is
entitled to like rights of subrogation) to the rights of the holders of Senior
Debt to receive payments or distributions of cash, property or securities of the
Company applicable to the Senior Debt until the principal of (and premium, if
any) and interest on this Debt shall be paid in full; and, for the purposes of
such subrogation, no payments or distributions to the holders of the Senior Debt
of any cash, property or securities to which the holders of this Debt would be
entitled except for the provisions of this Article, and no payment over pursuant
to the provisions of this Article, to or for the benefit of the holders of
Senior Debt by holders of this Debt (or indenture trustee or other
representative thereof), shall, as among the Company, its creditors other

                                      F-3
<PAGE>   54
than holders of Senior Debt, and the holders of this Debt, be deemed to be a
payment by the Company to or on account of the Senior Debt; and no payments or
distributions of cash, property or securities to or for the benefit of the
holders of this Debt pursuant to the subrogation provisions of this Article,
which would otherwise have been paid to the holders of Senior Debt, shall be
deemed to be a payment by the Company to or for the account of this Debt.

4.       PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS. It is understood that the
provisions of this Article are and are intended solely for the purposes of
defining the relative rights of the holders of this Debt, on the one hand, and
the holders of the Senior Debt, on the other hand. Nothing contained in this
Article or in the terms of this Debt is intended to or shall impair, as among
the Company, its creditors other than the holders of Senior Debt, and the
holders of this Debt, the obligation of the Company, which is absolute and
unconditional, to pay to the holders of this Debt the principal of (and premium,
if any) and interest on this Debt as and when the same shall become due and
payable in accordance with its terms, or is intended to or shall affect the
relative rights of the holders of this Debt and creditors of the Company other
than the holders of the Senior Debt, nor shall anything herein or therein
prevent any holder of this Debt from exercising all remedies otherwise permitted
by applicable law upon default under this Debt, subject to the rights, if any,
under this Article of the holders of Senior Debt in respect of cash, property or
securities of the Company received upon the exercise of any such remedy.

5.       RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING AGENT. Upon
any payment or distribution of assets of the Company referred to in this
Article, the holders of this Debt shall be entitled to rely upon any order or
decree made by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, dissolution, winding-up, liquidation, reorganization
or similar case or proceeding is pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, custodian, agent, assignee for the
benefit of creditors, or other person making such payment or distribution,
delivered to the holders of this Debt (or indenture trustee or other
representative thereof), for the purpose of ascertaining the persons entitled to
participate in such distribution, the holders of the Senior Debt and other
indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article.

6.       NO IMPAIRMENT OF SUBORDINATION. No right of any present or future
holder of any Senior Debt to enforce subordination as herein provided shall at
any time in any way be prejudiced or impaired by any act or failure to act on
the part of the Company or by any act or failure to act, in good faith, by any
such holder, or by any noncompliance by the Company with the terms, provisions
and covenants of the Convertible Note or the documents, agreements and
instruments relating thereto or to this Debt, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with.

7.       CERTAIN CONVERSIONS DEEMED PAYMENT. If this Debt is convertible into
securities of the Company, for the purposes of this Article only, (1) the
issuance and delivery of junior securities upon conversion of this Debt in
accordance with such conversion rights shall not be deemed to constitute a
payment or distribution on account of the principal of (or premium, if any) or
interest on this Debt or on account of the purchase or other acquisition of this
Debt, and (2) the payment, issuance or delivery of cash, property or securities
(other than junior securities) upon conversion of this Debt

                                      F-4
<PAGE>   55
shall be deemed to constitute payment on account of the principal of (and
premium, if any) and interest on this Debt. For the purposes of this Section,
the term "junior securities" means (a) shares of any stock of any class of the
Company, (b) securities of the Company that are subordinated in right of payment
to all Senior Debt to substantially the same extent as, or to a greater extent
than, this Debt is so subordinated as provided in this Article and (c)
securities, if any, into which this Debt becomes convertible in connection with
any business combination transaction if so provided in the terms of this Debt.
Nothing contained in this Article or elsewhere in the terms of this Debt is
intended to or shall impair, as among the Company, its creditors other than
holders of Senior Debt and the holders of this Debt, the right, if any, which is
absolute and unconditional, of the holder of this Debt, if by the terms of this
Debt this Debt is convertible into securities of the Company, to convert this
Debt in accordance with the terms of this Debt.

8.       SENIOR DEBT ENTITLED TO RELY. The holders of Senior Debt shall have the
right to rely upon this Article, and no amendment or modification of the
provisions contained herein shall diminish the rights of such holders unless
such holders shall have agreed in writing thereto.

9.       DEFINITIONS. As used in this Article, the following terms shall have
the following meanings:

                  "Company" means AHT Corporation, a Delaware corporation, and
shall include its successors and assigns.

                  "Convertible Note" means the 10% Senior Secured Convertible
Note due 2001 at any one time outstanding not in excess of the original
aggregate authorized amount of $4,000,000, issued by the Company pursuant to the
Securities Purchase Agreements, including any such note issued upon transfer
thereof or in lieu of any such note that is mutilated, destroyed, lost or
stolen.

                  "Securities Purchase Agreement" means the Securities Purchase
Agreement, dated March 27, 2000, by and between the Company and Cybear, Inc., as
amended from time to time.

                  "Senior Debt" means the principal of, premium, if any, and
interest on (including any interest accruing after the filing of a petition by
or against the Company under any bankruptcy law, whether or not allowed as a
claim after such filing in any proceeding under such bankruptcy law), and any
other payment, due pursuant to the Convertible Note and all renewals,
extensions, refundings, deferrals, amendments or modifications of the
Convertible Note, whether outstanding at the time of issuance of this Debt or
thereafter incurred or created; unless in the case of any such renewal,
extension, refunding, amendment, modification or supplement, the instrument or
other document creating or evidencing the same or the assumption or guarantee of
the same expressly provides that such renewal, extension, refunding, amendment,
modification or supplement is not superior in right of payment to, or is pari
passu with, this Debt.

                                      F-5
<PAGE>   56
                                    EXHIBIT G

                            FORM OF LICENSE AGREEMENT
<PAGE>   57
                                    EXHIBIT H

                           FORM OF GUARANTY AGREEMENT

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