Document:

<PAGE>   1

                              SEPARATION AGREEMENT

         This AGREEMENT (the "Agreement") by and between InfoCure Corporation, a
Delaware corporation with its principal place of business at 239 Ethan Allen
Highway, Ridgefield, CT 06877 (the "Company"), and Frederick L. Fine, an
individual (the "Executive") is entered into this 6th day of June, 2001.

         WHEREAS, the Executive has been employed by the Company as its
President and Chief Executive Officer, and later as its Chairman of the Board of
Directors, pursuant to that certain Employment Agreement dated November 10, 2000
(the "Employment Agreement") attached hereto as Exhibit 1; and

         WHEREAS, the Executive and the Company have agreed to mutually
terminate Executive's relationship with the Company, and the Executive shall
resign from his position as Chairman of the Board of Directors of the Company
and from any other position(s) he currently holds with the Company, and the
Company's Board of Directors (the "Board") has agreed to accept the Executive's
resignation; and

         WHEREAS, the Company and the Executive wish to amicably resolve the
Executive's separation from the Company and establish the Executive's severance
arrangement, the terms of which shall replace and supercede those set forth in
sections 4 and 5 of the Employment Agreement.

         NOW, THEREFORE, in consideration of the promises and conditions set
forth in this Agreement, the sufficiency of which is hereby acknowledged, the
Company and the Executive agree as follows:

         1. SEPARATION. By mutual agreement, the Executive has tendered and the
Board, on behalf of the Company, has accepted the Executive's resignation as the
Company's Chairman of the Board of Directors, as a member of the Board, as an
employee of the Company, and from any and all other position(s) that he may hold
with the Company (including those with any or all of the Company's predecessors,
subsidiaries or affiliates), effective June 6, 2001 (the "Separation Date"). The
Executive and the Company agree that as of the Separation Date, all salary,
benefits and other compensation otherwise payable to the Executive under section
2 of the Employment Agreement will cease, and any benefits the Executive has or
might have under the Employment Agreement, or under any Company-provided benefit
plan, program or practice will terminate, except as required by federal or state
law, or as otherwise described below.

         2. CONSIDERATION. In return for the execution of this Agreement,
including the release of claims in section 3(a) of the Agreement, the Company
agrees to provide the Executive with the following:

         (a)      MONETARY CONSIDERATION. The Company agrees to provide the
                  Executive severance pay in the amount of seven hundred and
                  fifty thousand dollars ($750,000), less any and all applicable
                  local, state and federal taxes and withholdings (the "Monetary
                  Consideration"), in the net amount of four hundred eighty four
                  thousand one hundred twenty five dollars ($484,125.00) within
                  ten (10) days following the Executive's execution of

<PAGE>   2

                  this Agreement (provided that the Executive has not timely
                  revoked his acceptance of this Agreement). The Executive
                  agrees that immediately upon his receipt of the Monetary
                  Consideration, the net amount of the Monetary Consideration
                  shall be applied towards, and the Executive authorizes the
                  Company to apply the net amount of the Monetary Consideration
                  towards: (i) any taxes and withholding payable to the Company
                  as a result of the consideration provided in the Deferred
                  Compensation Agreement between the Executive and Company, (ii)
                  the interest owed by the Executive through and including March
                  31, 2001, in the amount of two hundred and twenty-three
                  thousand seven hundred and seventy-seven dollars
                  ($223,777.00), under the Amended and Restated Promissory Note
                  dated March 5, 2001 and payable to the Company in the
                  principal amount of three million one hundred and fifteen
                  thousand seven hundred and sixteen dollars and thirty-seven
                  cents ($3,115,716.37); and (iii) the interest owed by the
                  Executive through and including March 31, 2001, in the amount
                  of one hundred and ninety-three thousand three hundred
                  thirty-six dollars ($193,336.00), under the Promissory Note
                  dated June 30, 2000 and payable to the Company in the
                  principal amount of two million six hundred and ninety-one
                  thousand eight hundred and eighty-two dollars and twenty-five
                  cents ($2,691,882.25), and a balance in the amount of
                  thirty-two thousand two hundred and fifty-nine dollars and
                  fifty cents ($32,259.50) shall be paid to the Executive. The
                  Executive acknowledges that the Monetary Consideration does
                  not include payment for any wages or other compensation
                  (including, but not limited to reimbursable business expenses)
                  due to him by the Company, including, but not limited to under
                  the Employment Agreement, all of which was paid to the
                  Executive on or before the Separation Date. If the Monetary
                  Consideration is not paid to the Executive within the time
                  specified in this paragraph 2(a), this Agreement shall be null
                  and void.

         (b)      EXTENSION OF MATURITY DATE. The Company agrees to amend the
                  Amended and Restated Promissory Note dated March 5, 2001 and
                  the Promissory Note dated June 30, 2000 (collectively, the
                  "Notes") in the form provided in EXHIBIT A to this Agreement
                  to: (i) extend the maturity dates thereunder to December 31,
                  2002 (the "Maturity Date") and (ii) provide that any interest
                  accrued on the Notes after March 31, 2001 shall be due and
                  payable on the Maturity Date. The Executive agrees to execute
                  the amendment to the Notes in the form provided in EXHIBIT A
                  to this Agreement. The Executive further agrees to execute a
                  pledge agreement, in the form provided in EXHIBIT B to this
                  Agreement, pursuant to which the Executive will grant to the
                  Company a first lien security interest in one million
                  (1,000,000) shares of Company common stock owned by the
                  Executive to be held as security for repayment of the Notes.

         (c)      CONTINUATION OF HEALTH AND DENTAL INSURANCE. The Company
                  agrees to provide the Executive with medical and dental
                  insurance coverage equivalent to the medical and dental
                  insurance coverage enjoyed by the Executive on the Separation
                  Date from the effective date of this

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<PAGE>   3

                  Agreement through June 6, 2003. Thereafter, the Executive will
                  be personally responsible for any and all medical and dental
                  insurance policies, coverage and payments.

         (d)      VESTING OF EQUITY. The Company agrees that as of the effective
                  date of this Agreement: (i) all unexercised and unvested stock
                  options then held by the Employee shall become exercisable in
                  full (the "Vesting Date"); and (ii) the Executive's right to
                  exercise his stock options (except for the options described
                  in section 5 below) will terminate on the date that is five
                  (5) years from the Vesting Date (provided, however, if the
                  Executive violates any of the provisions of section 6 of the
                  Employment Agreement, and does not cure such violation(s) to
                  the Company's reasonable satisfaction within ten (10) days of
                  receiving written notice of such violation from the Company,
                  the right to exercise his stock options shall terminate
                  immediately upon written notice from the Company to the
                  Executive regarding such violation); and further provided that
                  the Executive agrees that upon his exercise of any and all of
                  the stock options he shall either: (x) grant to the Company a
                  first lien security interest in the purchased shares to the
                  Company as collateral for the Notes pursuant to a pledge
                  agreement in the form provided in Exhibit B to this Agreement,
                  or (y) apply any and all proceeds, net of the exercise cost
                  and net of applicable withholding taxes, from the sale of any
                  shares purchased upon exercise of such stock options towards
                  repayment of the Notes. The Executive agrees that his right to
                  exercise stock options from time to time is subject to his
                  delivery to the Company, concurrently with his exercise of the
                  stock option, of payment as determined by the Company of any
                  federal, state or local withholding taxes required by law to
                  be withheld. The Executive acknowledges that the amendments
                  described in this section 2(e) may cause an incentive stock
                  option to be treated as a nonqualified stock option. A list of
                  all options subject to this paragraph 2(a) is attached to this
                  Agreement at Exhibit C. Copies of the Company's 1996 and 2000
                  stock option plans are attached hereto as Exhibit D and E. The
                  terms of this paragraph shall supercede and amend any terms or
                  conditions of any agreements or plans relating to Executive's
                  stock options that are inconsistent with this paragraph.

         (e)      REIMBURSEMENT OF ATTORNEY FEES. The Company agrees to
                  reimburse the Executive for legal fees incurred by him, up to
                  a maximum of fifteen thousand dollars ($15,000), in connection
                  with the negotiation of this Agreement upon the Executive's
                  submission to the Company of an expense report and supporting
                  documentation consistent with the Company's standard business
                  practices.

         (f)      TAXES. The Executive agrees to indemnify the Company and hold
                  the Company harmless from any and all claims or penalties
                  asserted against the Company for any failure to pay taxes due
                  on any consideration provided by the Company pursuant to this
                  Agreement. The Executive expressly acknowledges that the
                  Company has not made, nor herein

                                     - 3 -

<PAGE>   4

                  makes, any representation about the tax consequences of any
                  consideration provided by the Company to the Executive
                  pursuant to this Agreement.

3.       RELEASES.

         (a)      EXECUTIVE RELEASE. In exchange for the consideration outlined
                  in section 2 of this Agreement, which the Executive
                  acknowledges he would not otherwise be entitled to receive,
                  the Executive hereby fully, forever, irrevocably and
                  unconditionally releases, remises and discharges the Company
                  and its current and former officers, directors, stockholders,
                  corporate affiliates, subsidiaries, parent companies, agents,
                  attorneys, and employees (the "Released Parties") from any and
                  all claims, charges, complaints, demands, actions, causes of
                  action, suits, rights, debts, sums of money, costs, accounts,
                  covenants, contracts, agreements, promises, doings, omissions,
                  damages, executions, obligations, liabilities, and expenses
                  (including attorneys' fees and costs), of every kind and
                  nature which he ever had or now has against any and all of the
                  Released Parties, including, but not limited to, all claims
                  arising out of his employment with or separation from the
                  Company, all employment discrimination claims under Title VII
                  of the Civil Rights Act of 1964, 42 U.S.C.ss.2000e ET SEQ.,
                  the Age Discrimination in Employment Act, 29 U.S.C.,ss.621 ET
                  SEQ., the Americans With Disabilities Act of 1990, 42
                  U.S.C.,ss.12101 ET SEQ., and similar state or local statutes,
                  including, but not limited to the Georgia Fair Employment
                  Practices Act, Ga. Code Ann.ss.45-19-20 ET SEQ., the Equal
                  Employment for Persons With Disabilities Law, Ga. Code
                  Ann.ss.34-64-1 ET SEQ., the Age Discrimination Act, Ga. Code
                  Ann.ss.34-1-2, the Human Rights and Opportunities Act, Conn.
                  Gen. Stat.ss.46A-51 ET SEQ. and the Massachusetts Fair
                  Employment Practices Act, M.G.L. c.151B,ss.1 et seq., all as
                  amended; all claims arising out of the Fair Credit Reporting
                  Act, 15 U.S.C.ss.1681 ET SEQ.; the Worker Adjustment and
                  Retraining Notification Act, 29 U.S.Css.2101 ET SEQ.; the
                  Employee Retirement Income Security Act of 1974 ("ERISA"), 29
                  U.S.C.ss.1001 ET seq., all as amended; and all common law
                  claims, including but not limited to, actions in tort,
                  defamation and breach of contract, claims to any additional
                  ownership interest in the Company, contractual or otherwise,
                  including but not limited to claims to additional stock or
                  stock options, and all claims or damages arising out of the
                  Executive's employment with or separation from the Company
                  (including without limitation claims for retaliation) under
                  any common law theory or any federal, state or local ordinance
                  not expressly referenced above. Nothing in this Agreement
                  purports to affect the Executive's ownership of shares in the
                  Company or his ability to exercise options or acquire shares
                  under any stock option or restricted stock agreement with the
                  Company, except as may be limited or amended by this
                  Agreement.

         (b)      COMPANY RELEASE. In exchange for the Executive's execution of
                  this Agreement, including the release of claims in paragraph
                  3(a) above, the

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<PAGE>   5

                  Company hereby fully, forever, irrevocably and unconditionally
                  releases, remises and discharges the Executive and his agents,
                  successors, assigns or heirs from any and all claims, charges,
                  complaints, contracts, agreements, promises, doings,
                  omissions, demands, actions, damages, executions, obligations,
                  liabilities and expenses, of every kind and nature, both in
                  law and equity, arising out of the Executive's employment with
                  the Company and separation from the Company including, but not
                  limited to, damages arising out of all common law tort, breach
                  of contract and other common law claims and damages, and all
                  claims and damages under any federal, state or local statute
                  or ordinances not expressly referenced above specifically
                  excluding, however, any criminal offense under any federal,
                  state or local law.

         4. RETURN OF COMPANY PROPERTY. The Executive agrees that he will return
to the Company, within five (5) days of his execution of this Agreement, all
Company property and equipment in his possession or control, including, but not
limited to: all items defined as "Property" in section 6(A)(ii) of the
Employment Agreement, a Company-provided automobile, a Company-provided cellular
phone, financial information, customer information, customer lists, employee
lists, Company files, notes, contracts, drawings, records, business plans,
specifications, computer-recorded information, computer software, tangible
property, credit cards, entry cards, identification badges, keys, and any
materials of any kind which contain or embody any proprietary or confidential
material of the Company (and all reproductions thereof). The Executive
acknowledges that he has left intact all electronic Company documents, including
those which he developed or helped develop during his employment with the
Company. The Executive further acknowledges that he will cancel, and authorizes
the Company to cancel, all accounts for his benefit, if any, in the Company's
name including, but not limited to: credit cards, telephone charge cards,
cellular phone accounts, pager accounts, automobile accounts and computer
accounts.

         5. CANCELLATION OF OPTION. The Executive agrees and allows the Company
to cancel the stock options previously granted to him by the Company on June 9,
1999 for the purchase of nine hundred thirty-one thousand three hundred and
thirty-four (931,334) shares.

         6. NON-COMPETITION, NON-DISCLOSURE AND NON-SOLICITATION. The Executive
acknowledges his obligation to keep confidential all non-public, Trade Secret
(as defined in section 6(B)(ii) of the Employment Agreement) information and
Confidential Information (as defined in section 6(C)(ii) of the Employment
Agreement) concerning the Company, which he acquired during the course of his
employment and directorship with the Company. The Executive further acknowledges
his non-solicitation obligations as stated in sections 6(E) of the Employment
Agreement, the terms of which shall remain in full force and effect and are
wholly incorporated by reference into this Agreement. The Executive further
acknowledges his non-competition obligations as stated in sections 6(F) of the
Employment Agreement, the terms of which shall remain in full force and effect
for a period of six (6) months from the date hereof and are wholly incorporated
by reference into this Agreement.

         7. NON-DISPARAGEMENT. The Executive understands and agrees that as a
condition for payment to him of the consideration described in section 2 of this
Agreement, he shall not

                                     - 5 -

<PAGE>   6

make any false, disparaging, or derogatory statements in public or private
regarding either the Company, any of the other Released Parties or the Company's
business affairs and financial condition. The Company understands and agrees
that as a condition of the Executive's acceptance of the terms of this
Agreement, it shall direct its directors and its Section 16 officers not to make
any false, disparaging, or derogatory statements regarding the Executive.
Nothing in this section shall bar the Executive or the Company or any Released
Party from providing truthful testimony in any legal proceeding or in
cooperation with any governmental agency or from discussing matters with their
attorneys.

         8. CONFIDENTIALITY. The Executive understands and agrees that the terms
and contents of this Agreement, and the contents of the negotiations and
discussions resulting in this Agreement, shall be maintained as confidential by
the Executive, his agents and representatives, and none of the above shall be
disclosed, except to the extent required by the Securities and Exchange
Commission, federal or state law or as otherwise agreed to in writing by the
authorized agent of each party. Nothing in this section shall bar the Executive
from providing truthful testimony in any legal proceeding or in cooperation with
any governmental agency.

         9. PUBLIC ANNOUNCEMENT. The Company agrees to provide the Executive
with the text of any statement announcing his separation from the Company at
least twenty-four (24) hours in advance of any such statement is released to the
public, and further agrees to allow the Executive to submit to the Company
comments regarding the statement for the Company's consideration.

         10. COOPERATION. For a period of four (4) years following the date of
this Agreement, or such longer period as the Executive and the Company may
mutually agree, the Executive agrees to fully cooperate with the Company with
respect to its corporate relationships and in connection with any defense of or
prosecution by the Company regarding any litigation in which the Company may be
involved as a party or non-party from time to time. The Company agrees to
reimburse the Executive for any reasonable out-of-pocket expenses, including
reasonable attorneys' fees, that he incurs in connection with his cooperation
under this section, subject to his submission to the Company of documentation of
such out-of-pocket expenses and attorneys fees to the Company's reasonable
satisfaction.

         11. NATURE OF AGREEMENT. The Executive and the Company understand and
agree that this Agreement is a resignation agreement and does not constitute an
admission of liability or wrongdoing on the part of any party to this Agreement.

         12. AMENDMENT. This Agreement shall be binding upon the parties and may
not be abandoned, supplemented, changed or modified in any manner, orally or
otherwise, except by an instrument in writing of concurrent or subsequent date
signed by a duly authorized representative of the parties. This Agreement is
binding upon and shall inure to the benefit of the parties and their respective
agents, assigns, heirs, executors, successors and administrators.

         13. VALIDITY. Each party represents and warrants to the other that this
Agreement is valid and binding and enforceable against such party and the
Company represents and warrants that the terms of this Agreement have been
approved through all necessary corporate actions. Should any provision of this
Agreement be declared or be determined by any court of competent

                                     - 6 -

<PAGE>   7

jurisdiction to be illegal or invalid, the validity of the remaining parts,
terms, or provisions shall not be affected and said illegal and invalid part,
term or provision shall be deemed not to be a part of this Agreement.

         14. ENTIRE AGREEMENT. This Agreement contains and constitutes the
entire understanding and agreement between the parties with respect to the
Executive's resignation, severance and settlement and cancels all related
previous oral and written negotiations, agreements, commitments, and writings in
connection therewith, including, but not limited to the Employment Agreement.
Nothing in this section, however, shall modify, cancel or supercede the
Company's obligations under section 2G of the Employment Agreement and the
Executive's obligations provided in section 6 (as modified hereby) of the
Employment Agreement, which are wholly incorporated by reference into this
Agreement and shall remain in full force and effect.

         15. APPLICABLE LAW. This Agreement shall be governed by the laws of the
State of Connecticut, without regard to conflict of laws provisions. The
Executive irrevocably submits to the jurisdiction of the courts of the State of
Connecticut, or if appropriate, a federal court located in Connecticut (which
courts, for purposes of this Agreement, are the only courts of competent
jurisdiction) over any suit, action or other proceeding arising out of, under,
or in connection with this Agreement or its subject matter.

         16. ACKNOWLEDGEMENTS. The Executive acknowledges that he has been given
twenty-one (21) days to consider this Agreement; that the Company advised him to
consult with an attorney of his choosing prior to signing this Agreement; and
that he has consulted an attorney who, in fact, reviewed this Agreement prior to
its execution by the Executive. Further, the Executive acknowledges that the
Company informed him that he may revoke his assent to this Agreement for a
period of seven (7) days after the execution of this Agreement, and the
Agreement shall not be effective or enforceable until the expiration of this
seven (7) day revocation period. The Executive understands and agrees that, by
entering into this Agreement, he is waiving any and all rights or claims he
might have under the Age Discrimination In Employment Act, as amended by the
Older Workers Benefit Protection Act, and that he has received consideration
beyond that to which he was previously entitled.

         17. VOLUNTARY ASSENT. The Executive affirms that no other promises or
agreements of any kind have been made to or with him by any person or entity
whatsoever to cause him to sign this Agreement, and that he fully understands
the meaning and intent of this Agreement. The Executive states and represents
that he has had an opportunity to fully discuss and review the terms of this
Agreement with an attorney. The Executive further states and represents that he
has carefully read this Agreement, understands its contents, freely and
voluntarily assents to all of its terms and conditions, and signs his name to
this Agreement as his own free act.

         18. SUBSEQUENT AGREEMENTS. The Executive agrees to execute such further
agreements and instruments as the Company shall reasonably request in order to
effectuate the provisions of this Agreement

         19. COUNTERPARTS. This Agreement may be executed in two (2) signature
counterparts, each of which shall constitute an original, but all of which taken
together shall constitute one and the same instrument.

                                     - 7 -

<PAGE>   8

         IN WITNESS WHEREOF, all parties have set their hand and seal to this
Agreement as of the date written below.

INFOCURE CORPORATION

By:      /s/ Joseph Walsh                                  Date:  June 6, 2001
         -----------------------------
         Joseph Walsh

EXECUTIVE

/s/ Frederick L. Fine                                      Date:  June 6, 2001
-------------------------------------
Frederick L. Fine

                                     - 8 -<PAGE>   1

                         AMERICAN MEDICAL SYSTEMS, INC.
                     MANAGEMENT INCENTIVE COMPENSATION PLAN
                                    FOR 2001

I.    PURPOSE

AMERICAN MEDICAL SYSTEMS, INC. (AMS) IS DEDICATED TO EXCELLENCE IN PERFORMANCE
AND IN CREATING A STRONG LINK BETWEEN PERFORMANCE AND COMPENSATION. THIS PLAN IS
DESIGNED TO REWARD DESIGNATED MANAGEMENT TEAM MEMBERS OF AMS WITH
PERFORMANCE-BASED COMPENSATION FOR ACHIEVING AND SURPASSING SPECIFIED COMPANY
GOALS. THESE GOALS WILL REINFORCE CONTRIBUTING ELEMENTS TO THE GROWTH AND
FINANCIAL VIABILITY OF AMS. THE PLAN IS DESIGNED TO REWARD OVERALL RESULTS,
REQUIRING A HIGH LEVEL OF INDIVIDUAL CONTRIBUTION AND CROSS-FUNCTIONAL
EFFECTIVENESS ACROSS THE SENIOR LEVELS OF COMPANY MANAGEMENT.

II.   BONUS POTENTIAL

THE PARTICIPANT IS ELIGIBLE TO RECEIVE A PERCENT OF HIS/HER BASE SALARY BASED ON
THE SCHEDULES SET FORTH IN ATTACHMENTS I AND II. NEW ENTRANTS TO THE PLAN MAY
HAVE THEIR TOTAL COMPENSATION BASE/BONUS MIX RECONFIGURED TO POSITION THEM FOR
THEIR BONUS SCHEDULE.

III.  PERFORMANCE MEASURES - COMPANY RESULTS

PERFORMANCE MEASURES MAY VARY SOMEWHAT FROM YEAR TO YEAR; HOWEVER, THEY WILL
TYPICALLY BE ESTABLISHED TO ACHIEVE THE END GOAL OF INCREASED GLOBAL SALES AND
PROFITABILITY. COMPANY RESULTS WILL RECEIVE THE HIGHEST WEIGHT VERSUS INDIVIDUAL
PERFORMANCE.

PERFORMANCE MEASURES WILL BE AS OBJECTIVE AS POSSIBLE AND INCLUDE SPECIFIC TIME
FRAMES AND NUMERICAL MEASURES.

COMPANY RESULTS MEASURES WILL GENERALLY BE CONSISTENT FOR PLAN PARTICIPANTS IN
ANY GIVEN YEAR TO ENSURE COMMON GOALS, ALIGNMENT AND INTERDEPENDENCE AMONG
SENIOR-LEVEL MANAGERS AND THE ORGANIZATION.

SALES RESULTS WILL BE BASED ON GLOBAL SHIPPED SALES FOR THE YEAR PER THE
FORECAST UNLESS OTHERWISE NOTED FOR THE INDIVIDUAL. COMPANY PROFITABILITY WILL
BE BASED ON OPERATING INCOME.

ATTACHMENT I INDICATES THE CURRENT WEIGHTING BY POSITION.

INDIVIDUAL OBJECTIVES WILL BE CUSTOMIZED BY INDIVIDUAL TO EVALUATE STRATEGIC AND
MANAGERIAL INITIATIVES. GENERALLY THEY ARE DEPARTMENT-SPECIFIC OR ARE DEDICATED
TO A CROSS-FUNCTION INITIATIVE FOR WHICH THE INDIVIDUAL IS THE LEADER. THESE
AREAS OF INDIVIDUAL CONTRIBUTION WILL BE EVALUATED AND REWARDED THROUGH THE BASE
SALARY MERIT INCREASE PROCESS.

<PAGE>   2

IV.   PARTICIPATION

PARTICIPANTS IN THIS PLAN EFFECTIVE JANUARY 1, 2001 WILL BE THE VICE PRESIDENTS,
DIRECTORS, AND SELECTED INDIVIDUALS OF THE COMPANY. ANY ADDITIONAL PARTICIPANTS
WILL REQUIRE THE APPROVAL OF THE PRESIDENT AND CEO AND THE BOARD OF DIRECTORS.
EXCEPTIONS OUTSIDE OF THE VICE PRESIDENT LEVEL WOULD NEED TO BE JUSTIFIED
ACCORDING TO RESPONSIBILITY IN THE COMPANY AND DEGREE OF INFLUENCE ON COMPANY
PERFORMANCE.

NEW HIRES AFTER THE FIRST OF THE YEAR MAY BE ABLE TO PARTICIPATE FOR 2001 ON A
PRO-RATED BASIS, PARTICULARLY IF THE START DATE IS BEFORE 10/1/01. IF EMPLOYMENT
OF A PARTICIPANT IS TERMINATED DUE TO HIS/HER PERFORMANCE OR THE INDIVIDUAL
VOLUNTARILY LEAVES THE COMPANY, THE INCENTIVE AWARD IS FORFEITED FOR THAT PLAN
YEAR.

V.    APPROVAL, AUTHORIZATION, AND TERMS

THE MANAGEMENT INCENTIVE PLAN, ITS TERMS, POLICIES, REVISIONS AND MEASURES ARE
UNDER THE FULL APPROVAL OF THE PRESIDENT AND CEO AND THE BOARD OF DIRECTORS. ANY
MODIFICATIONS OR ADJUSTMENTS TO THE PLAN AND PERFORMANCE MEASURES OR
CONSIDERATION OF UNUSUAL TRANSACTIONS MUST BE APPROVED BY THE BOARD OF
DIRECTORS.

PARTICIPATION IN THE PLAN IS NOT AN EMPLOYMENT CONTRACT OR ANY IMPLIED ASSURANCE
OF CONTINUED EMPLOYMENT.

VI.   BONUS PAYMENT

BONUS PAYMENT WILL BE ISSUED AS SOON AS FEASIBLE AFTER THE CLOSE OF THE YEARS'
FINANCIAL STATEMENTS (FIRST QUARTER FOLLOWING THE PLAN YEAR). PAYMENT WILL BE IN
LUMP SUM.

FINANCIAL RESULTS WILL BE ADJUSTED FOR CONSIDERATION OF BOTH POSITIVE AND
NEGATIVE FOREIGN CURRENCY EXCHANGE.

IF AN INDIVIDUAL'S BASE SALARY CHANGES DURING THE YEAR, THE AWARD WOULD BE
PRORATED BASED ON THE NUMBER OF MONTHS IN EACH POSITION.

<PAGE>   3

                                                                    ATTACHMENT 1

MANAGEMENT INCENTIVE COMPENSATION PLAN 2001
COMPANY VS. INDIVIDUAL PERFORMANCE MEASURES

<TABLE>
<CAPTION>
                                              COMPANY PERFORMANCE                                    PERFORMANCE PER KEY/
PARTICIPANTS                                  (SALES/OPERATING INCOME)                              INDIVIDUAL OBJECTIVES
------------                                  ------------------------                              ---------------------
<S>                                           <C>                                                   <C>
PRESIDENT & CEO                               100%                                                            0%
                                              o       70% SALES
                                              o       30% OPERATING INCOME

VP SALES & MARKETING*                         100%                                                            0%
GM & VP INTERNATIONAL*                        o       90% SALES
VP INTERNATIONAL                              o       10% OPERATING INCOME

OTHER VP'S                                    100%                                                            0%
CFO                                           o       60% SALES
Clinical/Regulatory                           o       40% OPERATING INCOME
Human Resources
Manufacturing
Research & Development
CIO

DIRECTORS                                     100%                                                            0%
                                              o       60% SALES
                                              o       40% OPERATING INCOME
</TABLE>

*SALES AND OPERATING INCOME FOR THE VP OF INTERNATIONAL WILL BE PAID BASED ON
100% (INTERNATIONAL SALES AND INTERNATIONAL OPERATING INCOME), WHEREAS VP OF
INTERNATIONAL WILL BE BASED ON SALES AND OPERATING INCOME FOR EUROPE ONLY.
DOMESTIC SALES AND MARKETING VP WILL BE 80% DOMESTIC WEIGHT AND 20%
INTERNATIONAL WEIGHT. ALL OTHERS WILL BE PAID BASED ON COMBINED GLOBAL RESULTS.

NOTE: OPERATING INCOME IS DEFINED AS A % OF SALES. THE TARGET FOR 2001 IS 20% OF
SALES.

<PAGE>   4

                                                                    ATTACHMENT 2

                            MANAGEMENT INCENTIVE PLAN
                                SCHEDULE -- 2001
                         (EXPRESSED AS % OF BASE SALARY)

                                PLAN ACHIEVEMENT

<TABLE>
<CAPTION>
                  BELOW
                   95%          95%          100%         105%          115%         125%         135%         140%         150+%
                  -----         ---          ----         ----          ----         ----         ----         ----         -----
<S>               <C>           <C>          <C>          <C>           <C>          <C>          <C>          <C>          <C>

   PRESIDENT
   % OF BASE        0%          20%           40%         47.5%        62.5%       70% MAX.        --           --            --

     VP'S
   % OF BASE        0%          15%           30%          35%          40%           45%          50%          55%          60%

   DIRECTORS
   % OF BASE        0%          15%           25%          30%          35%           40%          45%          50%          55%
</TABLE>

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