Document:

<PAGE>   1

                                                                    EXHIBIT 10.1

                          TAX DISAFFILIATION AGREEMENT

         TAX DISAFFILIATION AGREEMENT dated as of __________, 2001, by and
between InfoCure Corporation, a Delaware corporation ("InfoCure"), and
PracticeWorks, Inc., a Delaware corporation ("PracticeWorks").

                                    RECITALS

         A.       InfoCure is the common parent of an affiliated group of
corporations within the meaning of Section 1504(a) of the Internal Revenue Code
of 1986, as amended (the "Code"), which currently files consolidated federal
income tax returns.

         B.       Pursuant to the Agreement and Plan of Distribution dated
_________, 2001 by and between InfoCure and PracticeWorks (the "Distribution
Agreement"), the following transactions will occur: (i) InfoCure Systems, Inc.,
a Georgia corporation ("ISI"), will elect to become a Georgia limited liability
company ("ISI, LLC") pursuant to Section 14-2-1109.1 of the Georgia Business
Corporation Code (the "ISI Conversion"); (ii) InfoCure (directly and through
ISI, LLC) will contribute certain assets and liabilities to PracticeWorks in
exchange for shares of PracticeWorks common stock (the "Contribution
Transaction"), and then (iii) InfoCure will distribute all of the outstanding
shares of the common stock of PracticeWorks pro rata to the holders of InfoCure
common stock (the "Distribution").

         C.       InfoCure and PracticeWorks intend that the ISI Conversion will
qualify as a transaction described in Sections 332 and 337 of the Code, that the
Contribution Transaction and the Distribution will qualify as a reorganization
described in Section 368(a)(1)(D) of the Code, that the Distribution will
qualify as a distribution described in Section 355 of the Code and that none of
such transactions will result in the recognition of any taxable gain or income
to InfoCure, ISI, PracticeWorks or any shareholder of InfoCure or PracticeWorks
(except to the extent of cash received for any fractional share interest in
PracticeWorks stock and any deferred intercompany gain).

         D.       From and after Date of the Distribution, PracticeWorks will
cease to be a member of the InfoCure affiliated group for federal income tax
purposes.

         E.       InfoCure and PracticeWorks desire on behalf of themselves,
their subsidiaries and their successors to set forth their rights and
obligations with respect to taxes due for periods before and after the
Distribution.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

<PAGE>   2

                                   ARTICLE 1.

                                   DEFINITIONS

         1.01     "Affiliate" shall mean any Person that directly or indirectly
through one or more intermediaries, Controls, is Controlled by, or is under
common Control with a specified Person.

         1.02     "Agreement" shall mean this Tax Disaffiliation Agreement dated
________ __, 2001 between InfoCure and PracticeWorks as the same may be amended
from time to time.

         1.03     "Applicable Federal Rate" shall have the meaning set forth in
Section 1274(d) of the Code, compounded quarterly.

         1.04     "Claim" shall have the meaning set forth in Section 5.03(a).

         1.05     "Code" shall have the meaning set forth in the recitals.

         1.06     "Control" or "Controlled" shall mean, with respect to any
Person, the presence of one of the following: (i) the legal, beneficial or
equitable ownership, directly or indirectly, of more than 50% (by vote or value)
of the capital or voting stock (or other ownership or voting interest, if not a
corporation) of such Person or (ii) the ability, directly or indirectly, to
direct the voting of a majority of the directors of such Person's board of
directors or, if the Person does not have a board of directors, a majority of
the positions on any similar body, whether through appointment, voting agreement
or otherwise.

         1.07     "Controlling Party" shall have the meaning set forth in
Section 5.01.

         1.08     "Contribution Transaction" shall have the meaning set forth in
the recitals.

         1.09     "Corporate Restructuring Transactions" shall mean the
transactions undertaken by InfoCure, PracticeWorks, and their respective
Subsidiaries in order to effect the Distribution, which transactions are
described in the Distribution Agreement.

         1.10     "Date of Distribution" shall mean the Distribution Date
specified in the Distribution Agreement.

         1.11     "Distribution" shall have the meaning set forth in the
recitals.

         1.12     "Distribution Agreement" shall have the meaning set forth in
the recitals.

         1.13     "Final Determination" shall mean with respect to any issue (a)
a decision, judgment, decree or other order by any court of competent
jurisdiction, which decision, judgment, decree or other order has become final
and not subject to further appeal, (b) a closing agreement whether or not
entered into under Section 7121 of the Code or any other binding settlement
agreement (whether or not with the Internal Revenue Service) entered into in
connection with or in contemplation of an administrative or judicial proceeding,
or (c) the

                                       2
<PAGE>   3

completion of the highest level of administrative proceedings if a judicial
contest is not or is no longer available.

         1.14     "Fiscal Year 2000" shall mean the period beginning January 1,
2000 and ending on December 31, 2000.

         1.15     "Fiscal Year 2001 Stub Period" shall mean the period beginning
January 1, 2001 and ending on or after the Date of Distribution.

         1.16     "Form 10" shall mean the registration statement on Form 10
(including the related information statement) relating to the Distribution, as
made effective by the Securities and Exchange Commission.

         1.17     "InfoCure" shall have the meaning set forth in the preamble to
this Agreement.

         1.18     "InfoCure Group" shall mean InfoCure and all entities that are
Subsidiaries of InfoCure at any time following the Distribution.

         1.19     "InfoCure Tainting Act" shall mean (a) any breach of any
written representation or covenant relating to the qualification of the ISI
Conversion as a transaction described in Sections 332 and 337 of the Code, the
qualification of the Contribution Transaction as a reorganization described in
Section 368(a)(1)(D) of the Code or relating to the qualification of the
Distribution as a transaction described in Section 355 of the Code, which
representation or covenant is made by InfoCure in connection with the tax
opinion of King & Spalding described in the Form 10, or (b) any action or
actions of or involving any Person (other than PracticeWorks or any Person that
is an Affiliate of PracticeWorks immediately before or immediately after such
action or actions), or any omission or omissions of any Person (other than
PracticeWorks or any Person that is an Affiliate of PracticeWorks immediately
before or immediately after such omission or omissions), of an action or actions
available to it, after the Date of the Distribution, if such breach, action or
omission described in (a) or (b) contributes to a Final Determination that the
Distribution results in the recognition of gain to the InfoCure Group by virtue
of (i) the ISI Conversion failing to qualify for nonrecognition treatment under
the Code, (ii) the Contribution Transaction failing to qualify as a
reorganization under Section 368(a)(1)(D) of the Code, (iii) the Distribution
failing to qualify as a transaction described in Section 355 of the Code, or
(iv) any stock or securities of PracticeWorks failing to qualify as "qualified
property" within the meaning of Sections 355(c)(2) and 361(c)(2) of the Code,
including by reason of the application of Section 355(e) of the Code to the
Distribution.

         1.20     "Indemnitor" shall have the meaning set forth in Section 5.02.

         1.21     "IRS" shall have the meaning set forth in Section 5.03(a).

         1.22     "ISI" shall have the meaning set forth in the recitals to this
Agreement.

                                       3
<PAGE>   4

         1.23     "ISI Conversion" shall have the meaning set forth in the
recitals to this Agreement.

         1.24     "Period After Distribution" shall mean any taxable year or
other taxable period beginning on or after the Date of Distribution and, in the
case of any taxable year or other taxable period that begins before and ends
after the Date of Distribution, that part of the taxable year or other taxable
period that begins after the close of the Date of Distribution.

         1.25     "Period Before Distribution" shall mean any taxable year or
other taxable period that ends on or before the Date of Distribution and, in the
case of any taxable year or other taxable period that begins before and ends
after the Date of Distribution, that part of the taxable year or other taxable
period through the close of the Date of Distribution.

         1.26     "Person" shall mean any individual, partnership, joint
venture, corporation, limited liability company, trust, unincorporated
organization, government or department or agency of a government.

         1.27     "PracticeWorks" shall have the meaning set forth in the
preamble to this Agreement.

         1.28     "PracticeWorks Business" shall mean the business of providing
practice management applications and related services to dental, orthodontic,
and oral and maxillofacial surgery practices.

         1.29     "PracticeWorks Group" shall mean PracticeWorks and all
entities that are Subsidiaries of PracticeWorks at any time following the
Distribution.

         1.30     "PracticeWorks Tainting Act" shall mean (a) any breach of any
written representation or covenant relating to the qualification of the ISI
Conversion as a transaction described in Sections 332 and 337 of the Code, the
qualification of the Contribution Transaction as a reorganization described in
Section 368(a)(1)(D) of the Code or relating to the qualification of the
Distribution as a transaction described in Section 355 of the Code, which
representation or covenant is made by PracticeWorks in connection with the tax
opinion of King & Spalding described in the Form 10, or (b) any action or
actions of or involving any Person (other than InfoCure or any Person that is an
Affiliate of InfoCure immediately before or immediately after such action or
actions), or any omission or omissions of any Person (other than InfoCure or any
Person that is an Affiliate of InfoCure immediately before or immediately after
such omission or omissions), of an action or actions available to it, after the
Date of the Distribution, if such breach, action or omission described in (a) or
(b) contributes to a Final Determination that the Distribution results in the
recognition of gain to the InfoCure Group by virtue of (i) the ISI Conversion
failing to qualify for nonrecognition treatment under the Code, (ii) the
Contribution Transaction failing to qualify as a reorganization under Section
368(a)(1)(D) of the Code, (iii) the Distribution failing to qualify as a
transaction described in Section 355 of the Code or (iv) any stock or securities
of PracticeWorks failing to qualify as "qualified property" within the

                                       4
<PAGE>   5

meaning of Sections 355(c)(2) and 361(c)(2) of the Code, including by reason of
the application of Section 355(e) of the Code to the Distribution.

         1.31     "Restructuring Taxes" means any Taxes resulting from the
Corporate Restructuring Transactions, including, but not limited to, any Taxes
imposed pursuant to or as a result of Section 311 of the Code or Section 1.1502-
13 of the Treasury Regulations (and any applicable similar federal, state, local
or foreign Taxes, together with related interest, penalties and additions to
Tax), but excluding any Taxes imposed as a result of a Final Determination that
the ISI Conversion failed to qualify for nonrecognition treatment under the
Code, that the Contribution Transaction failed to qualify as a reorganization
under Section 368(a)(1)(D) or that the Distribution otherwise failed to meet the
requirements of Section 355 or 361 of the Code for nonrecognition of gain by the
InfoCure Group.

         1.32     "Subsidiary" shall mean a corporation, limited liability
company, partnership, joint venture or other business entity if 50% or more of
the outstanding equity or voting power of such entity is owned directly or
indirectly by the corporation with respect to which such term is used.

         1.33     "Tax" or "Taxes" whether used in the form of a noun or
adjective, shall mean all forms of taxation, whenever created or imposed,
including, but not limited to, taxes on or measured by income, franchise, gross
receipts, sales, use, excise, payroll, personal property (tangible or
intangible), real property, ad-valorem, value-added, leasing, leasing use or
other taxes, levies, imposts, duties, charges or withholdings of any nature
whether imposed by a nation, locality, municipality, government, state,
federation, or other governmental body (a "Taxing Authority"). Whenever the term
"tax" or "taxes" is used (including, without limitation, in the context of any
duty to reimburse another party or indemnify for taxes or refunds or credits of
taxes) it shall include penalties, fines, additions to tax and interest thereon.

         1.34     "Taxing Authority" shall have the meaning set forth in the
foregoing definition of the term "Tax."

         1.35     "Tax Returns" shall mean all reports, returns, information
statements, questionnaires or other documents required to be filed or that may
be filed for any period with any Taxing Authority (whether domestic or foreign)
in connection with any Tax or Taxes (whether domestic or foreign).

                                  ARTICLE II.

              TAX RETURNS, TAX PAYMENTS AND TAX SHARING OBLIGATION

         2.01     OBLIGATIONS TO FILE TAX RETURNS. InfoCure shall timely file or
cause to be filed all Tax Returns with respect to the PracticeWorks Group that
(a) are required to be filed and are due before the Date of Distribution or (b)
are for either Fiscal Year 2000 or the Fiscal Year 2001 Stub Period, and are
filed on a consolidated, combined or unitary basis and include any member of the
PracticeWorks Group with InfoCure or any of its Subsidiaries. PracticeWorks

                                       5
<PAGE>   6

shall timely file or cause to be timely filed any other Tax Return with respect
to the PracticeWorks Group.

         2.02     OBLIGATION TO REMIT TAXES. InfoCure and PracticeWorks shall
each remit or cause to be remitted any Taxes due in respect of any Tax for which
it is required to file a Tax Return and shall be entitled to reimbursement for
such payments only to the extent provided in Section 2.03.

         2.03     TAX SHARING OBLIGATIONS AND PRIOR AGREEMENTS. (a) Other than
liabilities dealt with elsewhere in this Agreement, PracticeWorks shall be
liable for and shall indemnify and hold the InfoCure Group harmless against (i)
any Tax liability of any member of the PracticeWorks Group, and of any member of
the InfoCure Group to the extent that such liability is attributable, as
determined in good faith by InfoCure, to the PracticeWorks Business, for (A) any
Period After Distribution and (B) the Fiscal Year 2000 and (C) any taxable year
or period that begins before and ends on or after the Date of Distribution in
respect of the Period Before Distribution, (ii) any Tax liability resulting from
a Final Determination with respect to an adjustment attributable to any member
of the PracticeWorks Group, or any member of the InfoCure Group to the extent
that such liability is attributable, as determined in good faith by InfoCure, to
the PracticeWorks Business, and (iii) any amount determined to be PracticeWorks'
liability under Section 2.04. PracticeWorks shall be entitled to any refund of
or credit for Taxes of the PracticeWorks Group or amounts owed by PracticeWorks
or for which PracticeWorks is responsible under this Section 2.03(a). Any
liability for Taxes under this Section 2.03(a) shall be measured by the InfoCure
Group's actual liability for Taxes after applying Tax benefits otherwise
available to the InfoCure Group other than Tax benefits that the InfoCure Group
in good faith determines would actually offset Tax liabilities of the InfoCure
Group in other taxable years or periods. Any right to refund under this Section
2.03(a) shall be measured by the actual refund or credit of the InfoCure Group
attributable to the adjustment without regard to offsetting Tax attributes or
liabilities of the InfoCure Group.

                  (b)      Other than liabilities dealt with elsewhere in this
Agreement, InfoCure shall be liable for and shall hold the PracticeWorks Group
harmless against (i) any liability attributable to any member of the InfoCure
Group for Taxes that are not attributable, as determined in good faith by
InfoCure, to the PracticeWorks Business, including any liability asserted
against any member of the PracticeWorks Group under the provisions of Treas.
Reg. ss. 1.1502-6(a) that impose several liability on members of an affiliated
group of corporations that files consolidated returns, or similar provisions of
any foreign, state or local law, in respect of Taxes of any member of the
InfoCure Group that are not attributable to the PracticeWorks Business, and (ii)
any amount determined to be InfoCure's liability under Section 2.04. InfoCure
shall be entitled to any refund of or credit for Taxes for any periods that are
attributable to the InfoCure Group or amounts owed by InfoCure or for which
InfoCure is responsible under this Section 2.03(b).

                  (c)      Except as set forth in this Section 2.03 and in
consideration of the mutual indemnities and other obligations of this Agreement,
any and all prior Tax sharing agreements or

                                       6
<PAGE>   7

practices between any member of the InfoCure Group and any member of the
PracticeWorks Group shall be terminated with respect to the PracticeWorks Group
as of the Date of Distribution.

         2.04     RESTRUCTURING TAXES; OTHER TAXES RELATING TO THE DISTRIBUTION.
(a) GENERALLY. Notwithstanding any other provision of this Agreement to the
contrary, PracticeWorks shall pay, and shall indemnify and hold harmless
InfoCure and any member of the InfoCure Group from and against any and all
Restructuring Taxes and any reasonable expenses (including, but not limited to,
attorney's fees) incurred in defending any audit or examination with respect to
Restructuring Taxes. In the event of a Final Determination that the ISI
Conversion failed to qualify for nonrecognition treatment or that the
Distribution failed to meet the requirements of Sections 355 or 361 of the Code
for nonrecognition of gain by the InfoCure Group, including, without limitation,
by reason of (x) any stock or securities of PracticeWorks failing to qualify as
"qualified property" within the meaning of Sections 355(c)(2) or 361(c)(2) of
the Code or (y) the application of Section 355(e) of the Code to the
Distribution, (other than a Final Determination that the Distribution failed to
qualify for nonrecognition which determination would not have been made but for
an InfoCure Tainting Act or a PracticeWorks Tainting Act), the liability of
InfoCure and PracticeWorks for any Taxes arising from such Final Determination
and any liability to shareholders arising from such Final Determination
(together with any reasonable expense (including, but not limited to, attorney's
fees) incurred in defending against any liability) shall be borne 50 percent by
InfoCure and 50 percent by PracticeWorks. If an InfoCure Tainting Act and a
PracticeWorks Tainting Act both contribute to such a Final Determination, any
such Taxes or liability (together with any reasonable expense (including, but
not limited to, attorney's fees) incurred in defending against any liability)
shall be borne 50 percent by InfoCure and 50 percent by PracticeWorks.

                  (b)      INDEMNIFICATION FOR PRACTICEWORKS TAINTING ACTS.
PracticeWorks covenants that neither PracticeWorks nor any member of the
PracticeWorks Group shall commit or be party to or the subject of any
PracticeWorks Tainting Act which would result in any Tax or liability described
in the following sentence and payable by InfoCure. To the extent that any member
of the InfoCure Group would not have been liable for the following amounts but
for a PracticeWorks Tainting Act, PracticeWorks shall pay, and shall indemnify
and hold harmless the InfoCure Group from and against, (i) any liability of any
member of the InfoCure Group to any Taxing Authority, InfoCure shareholders or
PracticeWorks shareholders (together with any reasonable expenses (including,
but not limited to, attorney's fees) incurred in defending against any such
liability) resulting from a Final Determination that the ISI Conversion failed
to qualify for nonrecognition treatment or that the Distribution failed to meet
the requirements of Sections 355 or 361 of the Code for nonrecognition of gain
by the InfoCure Group, including, without limitation, by reason of (x) any stock
or securities of PracticeWorks failing to qualify as "qualified property" within
the meaning of Sections 355(c)(2) or 361(c)(2) of the Code or (y) the
application of Section 355(e) of the Code to the Distribution, and (ii) any
Taxes and related expenses payable by any member of the InfoCure Group by reason
of the receipt of such payment.

                                       7
<PAGE>   8

                  (c)      INDEMNIFICATION FOR INFOCURE TAINTING ACTS. InfoCure
covenants that neither InfoCure nor any member of the InfoCure Group shall
commit or be party to or the subject of any InfoCure Tainting Act which would
result in any Tax or liability described in the following sentence and payable
by PracticeWorks. To the extent that PracticeWorks would not have been liable
for the following amounts but for an InfoCure Tainting Act, InfoCure shall pay,
and shall indemnify and hold harmless PracticeWorks from and against, (i) any
liability of PracticeWorks to any Taxing Authority, InfoCure shareholders or
PracticeWorks shareholders (together with any reasonable expenses (including,
but not limited to, attorney's fees) incurred in defending against any such
liability) resulting from a Final Determination that the ISI Conversion failed
to qualify for nonrecognition treatment or that the Distribution failed to meet
the requirements of Sections 355 or 361 of the Code for nonrecognition of gain
by the InfoCure Group, including, without limitation, by reason of (x) any stock
or securities of PracticeWorks failing to qualify as "qualified property" within
the meaning of Sections 355(c)(2) or 361(c)(2) of the Code or (y) the
application of Section 355(e) of the Code to the Distribution, and (ii) any
Taxes and related expenses payable by PracticeWorks by reason of the receipt of
such payment.

         2.05     PERIOD THAT INCLUDES THE DATE OF DISTRIBUTION. (a) To the
extent permitted by law or administrative practice, the taxable year of the
PracticeWorks Group shall be treated as closing at the close of the Date of
Distribution.

                  (b)      If it is necessary for purposes of this Agreement to
determine the Tax liability of any member of the PracticeWorks Group for a
taxable year or period that begins on or before and ends after the Date of the
Distribution and is not treated under Section 2.05(a) as closing at the close of
the Date of Distribution, the determination shall be made, in the case of Taxes
that are based upon income or receipts, by assuming that the relevant taxable
period ended at the close of the Date of Distribution, except that any
exemptions, allowances or deductions that are calculated on an annual basis
shall be apportioned on a time basis. In the case of Taxes that are imposed on a
periodic basis, are payable for a taxable period that includes (but does not end
on) the Date of Distribution, and are not based upon or related to income or
receipts, the portion of such Tax that relates to the Period Before Distribution
shall be deemed to be the amount of such Tax for the entire taxable period
multiplied by a fraction the numerator of which is the number of days in the
taxable period ending on the Date of Distribution and the denominator of which
is the number of days in the entire taxable period.

                                  ARTICLE III.

                     CARRYBACKS, DISTRIBUTIONS AND ELECTIONS

         3.01     CARRYBACKS. Any member of the PracticeWorks Group shall be
entitled to carry back any net operating loss or other item from a Period After
Distribution to a Period Before Distribution, except to the extent that InfoCure
determines in good faith that such action will cause an actual increase in the
Taxes for which the InfoCure Group is responsible or will cause an actual
reduction in the amount of any refund of Taxes payable to the InfoCure Group.

                                       8
<PAGE>   9

Any refund of Taxes resulting from any such carryback by a member of the
PracticeWorks Group shall be payable to PracticeWorks as provided in Section
2.03(a).

         3.02     DISTRIBUTIONS AND ELECTIONS. (a) No member of the
PracticeWorks Group shall make any election with respect to Taxes, pay or cause
to be paid any distribution from an Affiliate or take any other action that
shall cause an actual increase in the Taxes for which the InfoCure Group is
responsible or will cause an actual reduction in the amount of any refund of
Taxes payable to the InfoCure Group.

                  (b)      No member of the InfoCure Group shall make any
election with respect to Taxes, pay or cause to be paid any distribution from an
Affiliate or take any other action that shall cause an actual increase in the
Taxes for which the PracticeWorks Group is responsible or will cause an actual
reduction in the amount of any refund of Taxes payable to the PracticeWorks
Group.

                                  ARTICLE IV.

                                    PAYMENTS

         4.01     FISCAL YEAR 2001 STUB PERIOD AND FISCAL YEAR 2000. (a)
PracticeWorks shall determine and pay the final amount owed, if any, under
clause (i)(C) of Section 2.03(a) for the Fiscal Year 2001 Stub Period as
follows: (i) within sixty (60) days from the Date of Distribution, PracticeWorks
shall provide InfoCure with a copy of its Federal and State tax package (except
that standard items such as Internal Revenue Service Form 5471s, boycott
information, FTC receipts and Section 861 information may be provided within one
hundred twenty (120) days from the Date of Distribution) of its Fiscal Year 2001
Stub Period operating and nonoperating tax and financial results; (ii)
PracticeWorks will calculate in accordance with the principles established in
Section 2.03 and submit to InfoCure an estimate of its Fiscal Year 2001 Stub
Period Tax liability, offsetting such liability by the amount, if any,
determined to be owed to PracticeWorks for Fiscal Year 2000 pursuant to Section
4.01(b), to the extent payment has not already been received by PracticeWorks
for such overpayment pursuant to Section 4.01(b); (iii) InfoCure shall have the
right to object in writing to such calculation on or before sixty (60) days
after the date on which such calculation is provided to InfoCure, on the grounds
that there is substantial authority that such calculation is incorrect; PROVIDED
that if InfoCure so objects, InfoCure and PracticeWorks shall promptly submit
the dispute to an independent accounting or law firm acceptable to both InfoCure
and PracticeWorks for prompt resolution, whose decision shall be final and
binding on InfoCure and PracticeWorks, and (x) the party that such accounting or
law firm determines has lost the dispute shall pay all of the fees and expenses
incurred in connection with submitting such dispute; (y) PracticeWorks shall pay
to InfoCure an amount equal to 80% of the amount determined in clause (ii) of
this Section 4.01(a) within ten (10) days after InfoCure lodges an objection
pursuant to clause (iii) of this Section 4.01(a); (z) a determination of the
final amount owed, if any, under clause (ii) of this Section 4.01(a) shall be
made when the InfoCure Group's Fiscal Year 2001 Tax Returns are filed and shall
be paid within thirty (30) days from the date InfoCure notifies PracticeWorks of
any

                                       9
<PAGE>   10

additional amounts due together with interest at a rate equal to the Applicable
Federal Rate from the date on which such Tax Return is filed. Similarly, any
refund owed PracticeWorks over the amount previously determined and paid under
clause (ii) of this Section 4.01(a) shall be refunded by InfoCure within the
same thirty (30) day period together with interest at a rate equal to the
Applicable Federal Rate from the date on which InfoCure receives such refund,
and any claims resulting from carrybacks, tax audits or a Final Determination
shall be handled in the same manner as provided in Articles V, VI, VII, and
VIII.

                  (b)      PracticeWorks shall determine and pay the final
amount owed, if any, under clause (i)(B) of Section 2.03(a) for Fiscal Year 2000
as follows: (i) PracticeWorks shall provide InfoCure with a copy of its Federal
and State tax package, together with standard items such as Internal Revenue
Service Form 5471s, boycott information, FTC receipts and Section 861
information, in the normal InfoCure format and according to the normal InfoCure
schedule, of its Fiscal Year 2000 operating and nonoperating tax and financial
results; (ii) InfoCure shall prepare and file those Tax Returns in respect of
Fiscal Year 2000 that it is obligated to file pursuant to Section 2.01; (iii)
PracticeWorks shall prepare a reconciliation of the amounts PracticeWorks has
paid either directly or indirectly through inter-company charges in respect of
the InfoCure Fiscal Year 2000 consolidated federal Tax Return or any other Tax
Return in respect of Fiscal Year 2000 that InfoCure is required to file pursuant
to Section 2.01 to the calculation of the PracticeWorks Group's final liability
for Fiscal Year 2000 to be determined from such Tax Returns in accordance with
the principles established in Section 2.03(a), and shall provide such
reconciliation to InfoCure within thirty (30) days before the due date for
filing the relevant Tax Return; (iv) InfoCure shall have the right to object in
writing to such reconciliation in accordance with the principles established in
Section 4.01(a)(iii) within fifteen (15) days of delivery of the reconciliation;
(v) if the reconciliation described in clause (iii) of this Section 4.01(b)
indicates that PracticeWorks owes InfoCure money, PracticeWorks shall pay the
balance to InfoCure within thirty (30) days of the delivery of such
reconciliation together with interest at a rate equal to the Applicable Federal
Rate from the date on which such Tax Return was filed. If the reconciliation
shows that InfoCure owes PracticeWorks money and PracticeWorks' overpayment
cannot be applied to PracticeWorks' Fiscal Year 2001 Stub Period Tax liabilities
pursuant to Section 4.01(a)(ii), InfoCure shall pay such balance to
PracticeWorks within five (5) days of InfoCure's receipt of such balance from
the relevant Taxing Authority to the extent that a refund is due from the
relevant Taxing Authority (with no interest) and concurrently with delivery of
the reconciliation to the extent that no refund is due from the relevant Taxing
Authority (together with interest at a rate equal to the Applicable Federal Rate
from the due date of the Tax Return); and (vi) any claims resulting from
carrybacks, tax audits or Final Determination shall be handled in the same
manner as provided in Articles V, VI, VII and VIII.

         4.02     OTHER PAYMENTS. Other payments due to a party under Section
2.03 shall be due not later than twenty (20) days after the receipt or crediting
of a refund or the receipt of notice of a Final Determination that the
indemnified party is liable for an indemnified cost, together with interest at a
rate equal to the Applicable Federal Rate from the date on which the
indemnifying party receives such receipt, credit or notice.

                                       10
<PAGE>   11

         4.03     NOTICE. InfoCure and PracticeWorks shall give each other
prompt written notice of any payment that may be due under this Agreement.

                                   ARTICLE V.

                                   TAX AUDITS

         5.01     GENERAL. Except as provided in Sections 5.02 and 6.02, each of
PracticeWorks and InfoCure shall have sole responsibility for all audits or
other proceedings with respect to Tax Returns that it is required to file under
Section 2.01 (the "Controlling Party"). Except as provided in Section 5.03, the
Controlling Party shall have the sole right to contest the audit or proceeding
and to employ advisors of its choice.

         5.02     INDEMNIFIED CLAIMS IN GENERAL. InfoCure or PracticeWorks shall
promptly notify the other in writing prior to the issuance of an actual notice
of assessment by the relevant Taxing Authority (for example, if by the Internal
Revenue Service, prior to the issuance of a Form 5701 Notice of Proposed
Adjustment) of any proposed adjustment to a Tax Return that may result in
liability of the other party (the "Indemnitor") under this Agreement. If the
Indemnitor is not also the Controlling Party, the Controlling Party shall
provide the Indemnitor with information about the nature and amounts of the
proposed adjustments and shall permit the other party to participate in the
proceeding at its own expense, PROVIDED, HOWEVER, that the Controlling Party
shall not be required to indemnify the Indemnitor if the Controlling Party fails
to notify or provide such information to the Indemnitor, unless the Indemnitor
is materially prejudiced thereby. The Indemnitor shall pay all reasonable
expenses (including, but not limited to, legal and accounting fees) incurred by
the Controlling Party in connection with the assessment or adjustment within
seven (7) days after a written request by the Controlling Party.

         5.03     CERTAIN FEDERAL INCOME TAX CLAIMS. (a) Any issues raised by
the Internal Revenue Service ("IRS") in any tax inquiry, audit, examination,
investigation, dispute, litigation or other proceeding which would result in
federal income tax liability to the Indemnitor which in the aggregate would
equal or exceed $100,000 in any taxable year are defined as a Claim (a "Claim").
Except as provided in Section 5.03(d) and notwithstanding any other provision of
this Agreement that may be construed to the contrary, the Controlling Party
agrees to contest any Claim and not to settle any Claim without prior written
consent of the Indemnitor, PROVIDED that (i) the Controlling Party shall provide
notice to Indemnitor pursuant to Section 5.02 of any Claim, (ii) within thirty
(30) days after notice by the Controlling Party to the Indemnitor of a Claim is
received by the Indemnitor, the Indemnitor shall request in writing that such
Claim be contested, (iii) within thirty (30) days after notice by the
Controlling Party to the Indemnitor of such Claim is received by the Indemnitor,
the Indemnitor shall have provided an opinion of independent tax counsel,
selected by the Indemnitor and reasonably acceptable to the Controlling Party,
to the effect that it is more likely than not that a Final Determination will be
substantially consistent with the Indemnitor's position relating to such Claim,
(iv) the Indemnitor agrees to pay on demand and pays all out-of-pocket costs,
losses and expenses (including, but not limited to, legal and accounting fees)
paid or incurred by the Controlling Party in connection

                                       11
<PAGE>   12

with contesting such Claim, except for a Claim where the expenses are shared
pursuant to Section 2.04(a), and (v) the Controlling Party, after reasonable
consultation with the Indemnitor, shall determine in its sole discretion the
nature of all actions to be taken to contest such Claim, including (1) whether
any action to contest such Claim shall initially be by way of judicial or
administrative proceeding, or both, (2) whether any such Claim shall be
contested by resisting payment thereof or by paying the same and seeking a
refund thereof, and (3) the court or other judicial body before which judicial
action, if any, shall be commenced. To the extent the Indemnitor is not
participating, the Controlling Party shall keep the Indemnitor and, upon request
by the Indemnitor, its counsel informed as to the progress of the contest.

                  (b)      If the Indemnitor requests that the Controlling Party
accept a settlement of a Claim offered by the IRS and if such Claim may, in the
reasonable discretion of the Controlling Party, be settled without prejudicing
any claims the IRS may have with respect to matters other than the transactions
contemplated by the Distribution Agreement, the Controlling Party shall either
accept such settlement offer or agree with the Indemnitor that the Indemnitor's
liability with respect to such Claim shall be limited to the lesser of (i) an
amount calculated on the basis of such settlement offer plus interest owed to
the IRS on the date of eventual payment or (ii) the amount calculated on the
basis of a Final Determination.

                  (c)      If the Controlling Party shall elect to pay the Tax
claimed and seek a refund, the Indemnitor shall lend sufficient funds on an
interest-free basis to the Controlling Party, and with no net after-tax cost to
the Controlling Party, to cover any applicable indemnity obligations of the
Indemnitor. To the extent such refund claim is ultimately disallowed, the loan
or portion thereof equal to the amount of the refund claim so disallowed shall
be applied against the Indemnitor's obligation to make indemnity payments
pursuant to this Agreement. To the extent such refund claim is allowed, the
Controlling Party shall pay to the Indemnitor all amounts advanced to the
Controlling Party with respect to the indemnity obligation within ten (10) days
of the receipt of such refund (or if the Controlling Party would have received
such refund but for the existence of a counterclaim or other claim not
indemnified by the Indemnitor under this Agreement, within ten (10) days of the
final resolution of the contest), plus an amount equal to any interest received
(or that would have been received) from the IRS that is properly attributable to
such amount.

                  (d)      Except as provided below, the Controlling Party shall
not settle a Claim that Indemnitor is entitled to require the Controlling Party
to contest under Section 5.03(a) without the prior written consent of the
Indemnitor. At any time, whether before or after commencing to take any action
pursuant to this Section 5.03 with respect to any Claim, the Controlling Party
may decline to take action with respect to such Claim and may settle such Claim
without the prior written consent of the Indemnitor by notifying the Indemnitor
in writing that the Indemnitor is released from its obligations to indemnify the
Controlling Party with respect to such Claim (which notification shall release
the Indemnitor from such obligations except to the extent the Indemnitor has
agreed in writing that it would be willing to have its liability calculated on
the basis of a settlement offer, as provided in Section 5.03(b), at that point
in the contest) and with respect to any Claim related to such Claim or based on
the outcome of such Claim. If the

                                       12
<PAGE>   13

Controlling Party settles any Claim or otherwise takes or declines to take any
action pursuant to this paragraph, the Controlling Party shall pay to the
Indemnitor any amounts paid or advanced by the Indemnitor with respect to such
Claim (other than amounts payable by the Indemnitor in connection with a
settlement offer pursuant to Section 5.03(b)), plus interest attributable to
such amounts.

                                  ARTICLE VI.

                                   COOPERATION

         6.01     GENERAL. InfoCure and PracticeWorks shall cooperate with each
other in the filing of any Tax Returns and the conduct of any audit or other
proceeding and each shall execute and deliver such powers of attorney and make
available such other documents as are reasonably necessary to carry out the
intent of this Agreement. Each party agrees to notify the other party in writing
of any audit adjustments which do not result in Tax liability but can be
reasonably expected to affect Tax Returns of the other party, or any of its
Subsidiaries, for a Period After Distribution. Each party agrees to treat the
Distribution for all income tax purposes as not causing the recognition of any
gain or loss.

         6.02     COOPERATION WITH RESPECT TO TAX RETURN FILINGS, EXAMINATIONS
AND TAX RELATED CONTROVERSIES.

                  (a)      INFOCURE'S OBLIGATIONS. In addition to any
obligations imposed pursuant to the Distribution Agreement, InfoCure and each
other member of the InfoCure Group shall fully cooperate with PracticeWorks and
its representatives, in a prompt and timely manner, in connection with (i) the
preparation and filing of and (ii) any inquiry, audit, examination,
investigation, dispute, or litigation involving, any Tax Return filed or
required to be filed by or for any member of the PracticeWorks Group for any
taxable period beginning on or before the Distribution Date. Such cooperation
shall include, but not be limited to, (x) the execution and delivery to
PracticeWorks by the appropriate InfoCure Group member of any power of attorney
required to allow PracticeWorks and its counsel to represent InfoCure or such
other InfoCure Group member in any controversy which PracticeWorks shall have
the right to control pursuant to the terms of Section 5.01 of this Agreement,
(y) making available to PracticeWorks, during normal business hours, and within
sixty (60) days of any written request therefor, all books, records and
information, and the assistance of all officers and employees, necessary or
useful in connection with any tax inquiry, audit, examination, investigation,
dispute, litigation or any other matter, and (z) use of its best efforts in
defending PracticeWorks' interests in any tax inquiry, audit, examination,
investigation, dispute, litigation or any other matter for which InfoCure is the
Controlling Party.

                  (b)      PRACTICEWORKS' OBLIGATIONS. Except as otherwise
provided in this Article VI, PracticeWorks shall fully cooperate with InfoCure
and its representatives, in a prompt and timely manner, in connection with (i)
the preparation and filing of and (ii) any inquiry, audit, examination,
investigation, dispute, or litigation involving, any Tax Return filed or
required to be filed by or for any member of the InfoCure Group which includes

                                       13
<PAGE>   14

PracticeWorks or any other member of the PracticeWorks Group. Such cooperation
shall include, but not be limited to, (x) the execution and delivery to InfoCure
by PracticeWorks of any power of attorney required to allow InfoCure and its
counsel to participate on behalf of InfoCure or other InfoCure Group members in
any inquiry, audit or other administrative proceeding and to assume the defense
or prosecution, as the case may be, of any suit, action or proceeding pursuant
to the terms of and subject to the conditions set forth in Section 5.01 of this
Agreement, (y) making available to InfoCure, during normal business hours, and
within sixty (60) days of any written request therefor, all books, records and
information, and the assistance of all officers and employees, necessary or
useful in connection with any tax inquiry, audit, examination, investigation,
dispute, litigation or any other matter, and (z) the use of its best efforts in
defending InfoCure's interests in any tax inquiry, audit, examination,
investigation, dispute, litigation or other matter for which PracticeWorks is
the Controlling Party.

                  (c)      REMEDY FOR FAILURE TO COMPLY. If PracticeWorks
reasonably determines that InfoCure is not for any reason fulfilling its
obligations under Section 6.02(a), or if InfoCure reasonably determines that
PracticeWorks is not for any reason fulfilling its obligations under Section
6.02(b), then InfoCure or PracticeWorks, as the case may be, shall have the
right to appoint, at the expense of the other, an independent entity such as a
nationally-recognized public accounting or law firm to assist the other in
meeting its obligations under this Section 6.02. Such entity shall have complete
access, during normal business hours to all books, records and information, and
the complete cooperation of all officers and employees, of InfoCure or
PracticeWorks, as the case may be. The remedy provided in this Section 6.02(c)
shall not be deemed exclusive.

                                  ARTICLE VII.

                          RETENTION OF RECORDS; ACCESS

         The InfoCure Group and the PracticeWorks Group shall (a) in accordance
with their then current record retention policy, retain records, documents,
accounting data and other information (including computer data) necessary for
the preparation and filing of all Tax Returns in respect of Taxes of the
InfoCure Group or the PracticeWorks Group for any Period Before Distribution or
for the audit of such Tax Returns; and (b) give to the other reasonable access
to such records, documents, accounting data and other information (including
computer data) and to its personnel (insuring their cooperation) and premises,
for the purpose of the review or audit of such Tax Returns to the extent
relevant to an obligation or liability of a party under this Agreement. At any
time after the Date of Distribution that the PracticeWorks Group proposes to
destroy such material or information, they shall first notify the InfoCure Group
in writing and the InfoCure Group shall be entitled to receive such materials or
information proposed to be destroyed.

                                       14
<PAGE>   15

                                 ARTICLE VIII.

                                    DISPUTES

         If InfoCure and PracticeWorks cannot agree on any calculation of any
liabilities under this Agreement, such calculation shall be made by any
independent public accounting firm acceptable to both InfoCure and
PracticeWorks. The decision of such firm shall be final and binding. The fees
and expenses incurred in connection with such calculation shall be borne by the
party that such independent public accounting firm determines has lost the
dispute.

                                  ARTICLE IX.

                           TERMINATION OF LIABILITIES

         Notwithstanding any other provision in this Agreement, any liabilities
determined under this Agreement shall not terminate any earlier than the
expiration of the applicable statute of limitation for such liability. All other
covenants under this Agreement shall survive indefinitely.

                                   ARTICLE X.

                            MISCELLANEOUS PROVISIONS

         Sections 9.4, 9.7, 9.9, 9.10, 9.11, 9.14, 9.15, 9.16, 9.17, 9.18, 9.19,
9.20, 9.21 and 9.22 of the Distribution Agreement shall apply in relevant part
to this Agreement.

                                       15
<PAGE>   16

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                    INFOCURE CORPORATION

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

                                    PRACTICEWORKS, INC.

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

                                       16<PAGE>   1

                                                                   EXHIBIT 10.16

                            STOCK PURCHASE AGREEMENT

                                 BY AND BETWEEN

                           CRESCENT INTERNATIONAL LTD.

                                       AND

                               PRACTICEWORKS, INC.

                          DATED AS OF JANUARY __, 2001

         This STOCK PURCHASE AGREEMENT is entered into as of the __ day of
January, 2001 (this "Agreement"), by and between Crescent International Ltd.
(the "Investor"), an entity organized and existing under the laws of Bermuda,
and PracticeWorks, Inc., a corporation organized and existing under the laws of
the State of Delaware (the "Company").

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Investor,
and the Investor shall purchase, up to $5,000,000 worth of the Preferred Stock
(as defined below); and

         WHEREAS, such investments will be made in reliance upon the provisions
of Section 4(2) ("Section 4(2)"), Section 3(a)(9) ("Section 3(a)(9)") and
Regulation D ("Regulation D") of the U.S. Securities Act of 1933, as amended and
the rules and regulations promulgated thereunder (the "Securities Act"), and/or
upon such other exemption from the registration requirements of the Securities
Act as may be available with respect to any or all of the investments in Common
Stock to be made hereunder.

         NOW, THEREFORE, in consideration of the premises, representations,
warranties, covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, intending to be legally bound hereby, the parties hereto agree as
follows:

                                   ARTICLE I

                               CERTAIN DEFINITIONS

         Section 1.1.  "Affiliate" shall mean any Person that, directly or
indirectly through one or more intermediaries, controls or is controlled by, or
is under direct or indirect common control with any other Person. For the
purposes of this definition, "control," when used with respect to any Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise, and the term "controls" and "controlled" have meanings correlative
to the foregoing.

<PAGE>   2

         Section 1.2.  "Capital Shares" shall mean the Common Stock and
Preferred Stock and any shares of any other class of common stock or preferred
stock whether now or hereafter authorized, having the right to participate in
the distribution of dividends (as and when declared) or assets (upon liquidation
of the Company).

         Section 1.3.  "Certificate of Designations" shall mean the Certificate
of Designations, Powers, Preferences and Rights of the Company, setting forth
the rights, preferences and limitations of the Preferred Stock, as filed by the
Company with the Secretary of State of the State of Delaware prior to the
Closing Date.

         Section 1.4.  "Closing" shall mean the closing of the purchase and sale
of the Preferred Stock pursuant to Section 2.1 hereof.

         Section 1.5.  "Closing Date" shall mean the date of the Closing which
shall take place on (a) the first Trading Day following the last to be fulfilled
or waived of the conditions set forth in Article VII, or (b) such other date as
the parties hereto may agree in writing.

         Section 1.6.  "Common Stock" shall mean the Company's common stock,
$0.01 par value per share.

         Section 1.7.  "Conversion Shares" shall mean all shares of Common Stock
into which the Preferred Stock may be converted.

         Section 1.8.  "Damages" shall mean any and all losses, claims, damages,
liabilities, costs and expenses (including, without limitation, any and all
investigative, legal and other expenses reasonably incurred in connection with,
and any and all reasonable amounts paid in defense or settlement of, any action,
suit or proceeding between any indemnified party and any indemnifying party or
between any indemnified party and any third party, or otherwise, or any claim
asserted).

         Section 1.9.  "Distribution" shall mean the pro rata distribution to
holders of common stock, par value $0.001 per share, of InfoCure Corporation, a
Delaware corporation and the indirect parent of the Company, of all of the
Common Stock of the Company.

         Section 1.10.  "Effective Date" shall mean the date on which the SEC
has declared effective the Registration Statement registering resale of
Registrable Securities as set forth in the Registration Rights Agreement.

         Section 1.11.  "Exchange Act" shall mean the U.S. Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder.

         Section 1.12.  "Legend" shall have the meaning specified in Section 8.1
of this Agreement.

                                       2
<PAGE>   3

         Section 1.13.  "Material Adverse Effect" shall mean any effect on the
business, operations, properties, or financial condition of the Company that is
material and adverse to the Company or to the Company and such other entities
controlling or controlled by the Company, taken as a whole, and/or any
condition, circumstance, or situation that would prohibit or otherwise interfere
with the ability of the Company to enter into and perform its obligations under
any of this Agreement and the Registration Rights Agreement.

         Section 1.14.  "NASD" shall mean the National Association of Securities
Dealers, Inc.

         Section 1.15.  "Outstanding" when used with reference to Common Stock
or Capital Shares (collectively the "Shares"), shall mean, at any date as of
which the number of such Shares is to be determined, all issued and outstanding
Shares, and shall include all such Shares issuable in respect of outstanding
scrip or any certificates representing fractional interests in such Shares;
provided, however, that "Outstanding" shall not refer to any such Shares then
directly or indirectly owned or held by or for the account of the Company.

         Section 1.16.  "Person" shall mean an individual, a corporation, a
partnership, an association, a trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

         Section 1.17.  "Preferred Stock" shall mean shares of Series C
Convertible Preferred Stock, par value $0.01 per share, of the Company.

         Section 1.18.  "Principal Market" shall mean the Nasdaq National
Market, the Nasdaq SmallCap Market, the American Stock Exchange, the Electronic
Bulletin Board or the New York Stock Exchange, whichever is at the time the
principal trading exchange or market for the Common Stock.

         Section 1.19.  "Registrable Securities" shall mean the Conversion
Shares and any securities issued or issuable with respect to any of the
foregoing by way of exchange, stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise. As to any particular Registrable Securities, once
issued such securities shall cease to be Registrable Securities when (w) the
applicable Registration Statement has been declared effective by the SEC and all
such Registrable Securities have been disposed of pursuant to the applicable
Registration Statement, (x) all such Registrable Securities have been sold under
circumstances under which all of the applicable conditions of Rule 144 (or any
similar provision then in force) under the Securities Act ("Rule 144") are met,
(y) all such Registrable Securities have been otherwise transferred to holders
who may trade such shares without restriction under the Securities Act, and the
Company has delivered a new certificate or other evidence of ownership for such
securities not bearing a restrictive legend or (z) in the opinion of counsel to
the Company, which counsel shall be reasonably acceptable to the Investor, all
such Registrable Securities may be sold by the Investor

                                       3
<PAGE>   4

without registration and without any time, volume or manner limitations pursuant
to Rule 144(k) (or any similar provision then in effect) under the Securities
Act.

         Section 1.20.  "Registration Rights Agreement" shall mean the
registration rights agreement by and between the Company and the Investor, in
the form of Exhibit A hereto.

         Section 1.21.  "Registration Statement" shall have the meaning set
forth in the Registration Rights Agreement.

         Section 1.22.  "Regulation D" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.23.  "Representative" of a party shall mean any officer,
director, employee, agent, counsel, accountant, financial advisor, consultant or
other representative of such party.

         Section 1.24.  "SEC" shall mean the U.S. Securities and Exchange
Commission.

         Section 1.25.  "SEC Documents" shall mean all filings made with the SEC
pursuant to the Securities Act or the Exchange Act as of the time in question
until such time the Company no longer has an obligation to maintain the
effectiveness of a Registration Statement as set forth in the Registration
Rights Agreement.

         Section 1.26.  "Section 4(2)" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.27.  "Securities Act" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.28.  "Short Sale" shall have the meaning specified in Rule
3b-3 of the Exchange Act.

         Section 1.29.  "Strategic Investor" shall mean any Person (i) that
intends to participate in the corporate governance of the Company or in the
conduct of its business or (ii) as to whom the Company's Board of Directors has
made a determination in good faith that such Person will develop a material
strategic relationship with the Company, including without limitation an
acquisition of another entity or assets, in connection with and related to the
Company's present or future business.

         Section 1.30.  "Subsidiary" shall mean any Person in which the Company,
directly or indirectly through Subsidiaries or otherwise, beneficially owns more
than 50% of either the equity interests in, or the voting control of, such
Person.

                                       4
<PAGE>   5

         Section 1.31.  "Trading Day" shall mean any day during which the
Principal Market shall be open for business.

         Section 1.32.  "Underwriter" shall mean any underwriter participating
in any disposition of the Registrable Securities on behalf of the Investor
pursuant to a Registration Statement.

                                   ARTICLE II

                      PURCHASE AND SALE OF PREFERRED STOCK

         Section 2.1.  Investments. The Company shall issue and sell and the
Investor shall purchase, on the Closing Date, 100,000 shares of the Preferred
Stock for an investment amount of $5,000,000.

         Section 2.2.  Twenty Percent Limitation. Unless the Company obtains the
requisite approval of its shareholders in accordance with the corporate laws of
Delaware and the applicable rules of the Principal Market, no more than 19.9% of
the Outstanding shares of Common Stock may be issued and sold pursuant to the
conversion of the Preferred Stock, provided, that the Investor has the right to
require the Company to seek such shareholder approval, and upon the written
request of the Investor the Company shall as soon as practicable after such
request prepare and file with the SEC a proxy statement to be distributed to
shareholders of the Company for the purpose of soliciting proxies for use at an
annual or special meeting of shareholders of the Company at which such
shareholder approval is sought and in which proxy statement the Company will
recommend to its shareholders the foregoing approval.

                                  ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

The Investor represents and warrants to the Company that:

         Section 3.1.  Intent. The Investor is entering into this Agreement for
its own account, and the Investor has no view to the distribution of the
Registrable Securities or the Preferred Stock and has no present arrangement
(whether or not legally binding) at any time to sell, assign, transfer, pledge,
encumber, hypothecate or otherwise dispose of the Registrable Securities or the
Preferred Stock to or through any person or entity; provided, however, that by
making the representations herein, the Investor does not agree to hold the
Registrable Securities or the Preferred Stock for any minimum or other specific
term and reserves the right to dispose of the Registrable Securities or the
Preferred Stock at any time pursuant to the Registration Statement and in
accordance with federal and state securities laws applicable to such
disposition.

                                       5
<PAGE>   6

         Section 3.2.  Sophisticated Investor. The Investor is a sophisticated
investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited
investor (as defined in Rule 501 of Regulation D), and the Investor has such
experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in the Common Stock and the Preferred
Stock. The Investor acknowledges that an investment in the Common Stock and the
Preferred Stock is speculative and involves a high degree of risk.

         Section 3.3.  Authority. Each of this Agreement and the Registration
Rights Agreement has been duly authorized by all necessary corporate action and
no further consent or authorization of the Investor, or its Board of Directors
or stockholders is required. Each of this Agreement and the Registration Rights
Agreement was validly executed and delivered by the Investor and each is a valid
and binding agreement of the Investor enforceable against it in accordance with
its terms, subject to applicable bankruptcy, insolvency, or similar laws
relating to, or affecting generally the enforcement of, creditors' rights and
remedies or by other equitable principles of general application.

         Section 3.4.  Not an Affiliate. The Investor is not an officer,
director or "affiliate" (as that term is defined in Rule 405 of the Securities
Act) of the Company.

         Section 3.5.  Organization and Standing. The Investor is duly
organized, validly existing, and in good standing under the laws of Bermuda.

         Section 3.6.  Absence of Conflicts. The execution and delivery of this
Agreement and any other document or instrument contemplated hereby, and the
consummation of the transactions contemplated thereby, and compliance with the
requirements thereof, will not to the Investor's knowledge (a) violate any law,
rule, regulation, order, writ, judgment, injunction, decree or award binding on
the Investor, (b) violate any provision of any indenture, instrument or
agreement to which the Investor is a party or is subject, or by which the
Investor or any of its assets is bound, (c) conflict with or constitute a
material default thereunder, (d) result in the creation or imposition of any
lien pursuant to the terms of any such indenture, instrument or agreement, or
constitute a breach of any fiduciary duty owed by the Investor to any third
party, or (e) require the approval of any third-party (that has not been
obtained) pursuant to any material contract to which the Investor is subject or
to which any of its assets, operations or management may be subject.

         Section 3.7.  Disclosure; Access to Information. The Investor has
received or had access to all documents, records, books and other information
pertaining to Investor's investment in the Company that have been requested by
Investor. The Investor has received and reviewed copies of the SEC Documents.

         Section 3.8.  Manner of Sale. At no time was Investor presented with or
solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of

                                       6
<PAGE>   7

general solicitation or advertising. The Investor has had an existing business
relationship with the Company or its Affiliates since September 1998 and the
Investor did not become aware of the Company as a result of the Company filing a
Form S-1 or Form 10 with the SEC, pursuant to which the Company plans to effect
the Distribution.

         Section 3.9.  Resale Restrictions. Investor acknowledges that any
Registrable Securities and the Preferred Stock to be acquired by Investor have
not been registered under the federal securities laws or any applicable state
securities laws in reliance upon exemptions available for non-public or limited
offerings. Investor understands that it must bear the economic risk of the
investment in the Registrable Securities and the Preferred Stock because the
Registrable Securities and the Preferred Stock have not been so registered and
therefore are subject to restrictions upon transfer such that they may not be
sold or otherwise transferred unless registered under the applicable securities
laws or an exemption from such registration is available. The Investor will not
reoffer, sell, assign, transfer, pledge, encumber, hypothecate or otherwise
dispose of any Registrable Securities or the Preferred Stock in the absence of
an effective registration statement, qualification or authorization relating
thereto under federal and applicable state securities laws or an opinion of
qualified counsel satisfactory to the Company to the effect that the proposed
transaction in the Registrable Securities or the Preferred Stock will neither
constitute or result in any violation of the federal or state securities laws.
Subject to Section 8.1 of this Agreement, any certificate or other document that
may be issued representing any shares of Registrable Securities or the Preferred
Stock may be endorsed with a legend to this effect.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to the Investor that except as set forth in
the schedules included in the Company Disclosure Schedule attached hereto:

         Section 4.1.  Organization of the Company. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted.
Except as set forth in the SEC Documents, the Company does not own more than 50%
of the outstanding capital stock of or control any other Person. The Company is
duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, other than those in which the
failure so to qualify would not have a Material Adverse Effect.

         Section 4.2.  Authority. (i) The Company has the requisite corporate
power and authority to enter into and perform its obligations under this
Agreement and the Registration

                                       7
<PAGE>   8

Rights Agreement and to issue the Conversion Shares and the Preferred Stock;
(ii) the execution and delivery of this Agreement and the Registration Rights
Agreement by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate action, and no further consent or authorization of the Company or its
Board of Directors or stockholders is required; and (iii) each of this Agreement
and the Registration Rights Agreement has been duly executed and delivered by
the Company and constitute valid and binding obligations of the Company
enforceable against the Company in accordance with their respective terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, or similar laws relating to, or affecting generally the enforcement
of, creditors' rights and remedies or by other equitable principles of general
application.

         Section 4.3.  Corporate Documents. The Company has furnished or made
available to the Investor true and correct copies of the Company's Certificate
of Incorporation, as amended and in effect on the date hereof (the
"Certificate"), and the Company's By-Laws, as amended and in effect on the date
hereof (the "By-Laws").

         Section 4.4.  Books and Records. The minute books and other similar
records of the Company and its subsidiaries as made available to Investor prior
to the execution of this Agreement contain a true and complete record, in all
material respects, of all action taken at all meetings and by all written
consents in lieu of meetings of the stockholders, the boards of directors and
committees of the boards of directors of the Company and the subsidiaries. The
stock transfer ledgers and other similar records of the Company and the
subsidiaries as made available to Investor prior to the execution of this
Agreement accurately reflect all record transfers prior to the execution of this
Agreement in the capital stock of the Company and the subsidiaries. Neither the
Company nor any subsidiary has any of such minute books, stock transfer ledgers
and other similar records recorded, stored, maintained, operated or otherwise
wholly or partly dependent upon or held by any means (including any electronic,
mechanical or photographic process, whether computerized or not) which
(including all means of access thereto and therefrom) are not under the
exclusive ownership and direct control of the Company or a subsidiary.

         Section 4.5.  Capitalization. As of the date of this Agreement, the
authorized capital stock of the Company consists of 100,000,000 shares of Common
Stock, of which 100 shares are issued and outstanding. There are no options,
warrants, or rights to subscribe to, securities, rights or obligations
convertible into or exchangeable for or giving any right to subscribe for any
shares of capital stock of the Company. All of the outstanding shares of Common
Stock of the Company have been duly and validly authorized and issued and are
fully paid and nonassessable. On the Closing Date, the outstanding capital stock
of the Company will be as set forth on Schedule 4.5, which shall be delivered to
the Investor two Trading Days prior to the Closing Date, provided that on the
Closing Date, the Company shall have outstanding (i) no more than 32,000 shares
of Series A Convertible Preferred Stock, (ii) no more than 1,000,000 shares of

                                       8
<PAGE>   9

Series B Convertible Preferred Stock, (iii) no other shares of preferred stock
and (iv) except as set forth on such Schedule 4.5, no options, warrants or
rights to subscribe to, securities, rights or obligations convertible into or
exchangeable for or giving any right to subscribe for any shares of preferred
stock of the Company.

         Section 4.6.  Registration and Listing of Common Stock. The Company has
registered its Common Stock pursuant to Section 12(b) or 12(g) of the Exchange
Act and is in full compliance with all reporting requirements of the Exchange
Act, and the Company has applied for the listing or quotation of its Common
Stock, and upon official notice to the Principal Market of the consummation of
the Distribution, such Common Stock will be listed or quoted on the Principal
Market.

         Section 4.7.  Financial Statements. Prior to the execution of this
Agreement, the Company has delivered to the Investor true and complete copies of
the following financial statements, which reflect the Company's operations as a
divisions of Infocure Corporation, a Delaware corporation and the indirect
parent of the Company:

                  (a)      the audited balance sheets of the Company and its
         consolidated subsidiaries as of December 31, 1999 and 1998 and the
         related audited consolidated statements of operations, stockholders'
         equity and cash flows for each of the fiscal years then ended and the
         eleven months ended December 31, 1997, together with a true and correct
         copy of the report on such audited information by BDO Seidman LLP, and
         all letters from such accountants with respect to the results of such
         audits; and

                  (b)      the unaudited balance sheets of the Company and its
         consolidated subsidiaries as of September 30, 2000 and the related
         unaudited consolidated statements of operations and stockholders'
         equity for the portion of the fiscal year then ended.

         The financial statements of the Company delivered to the Investor have
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements) and fairly present in all
material respects the financial position of the Company as of the dates thereof
and the results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments).

         Section 4.8.  SEC Documents. The Company has delivered or made
available to the Investor true and complete copies of the SEC Documents
(including, without limitation, proxy information and solicitation materials).
The Company has not provided to the Investor any information that, according to
applicable law, rule or regulation, should have been disclosed publicly prior to
the date hereof by the Company, but which has not been so disclosed. As of

                                       9
<PAGE>   10

their respective dates, the SEC Documents complied as to form and substance in
all material respects with the requirements of the Securities Act or the
Exchange Act, as the case may be, and other federal, state and local laws, rules
and regulations applicable to such SEC Documents, and none of the SEC Documents
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC
Documents comply as to form and substance in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC or other applicable rules and regulations with respect thereto. Such
financial statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent
they may include summary notes and may be condensed or summary statements) and
fairly present in all material respects the financial position of the Company as
of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

         Section 4.9.  Exemption from Registration; Valid Issuances; New
Issuances. The sale and issuance of the Preferred Stock and the Conversion
Shares in accordance with the terms and on the basis of the representations and
warranties set forth in this Agreement, may and will be properly issued pursuant
to Section 4(2), Section 3(a)(9), Regulation D and/or any applicable state law.
When issued and paid for as provided herein, the Preferred Stock and the
Conversion Shares will be duly and validly issued, fully paid, and
nonassessable. Neither the sales of the Preferred Stock or the Conversion Shares
pursuant to, nor the Company's performance of its obligations under, this
Agreement or the Registration Rights Agreement will (i) result in the creation
or imposition of any liens, charges, claims or other encumbrances upon the
Preferred Stock, the Conversion Shares, or any of the assets of the Company, or
(ii) entitle the holders of Outstanding Capital Shares to preemptive or other
rights to subscribe to or acquire the Capital Shares or other securities of the
Company. The Preferred Stock and the Conversion Shares will not subject the
Investor to personal liability by reason of the ownership thereof. The Preferred
Stock and the Conversion Shares have been duly authorized by the Company, but
have not been issued (whether or not subsequently repurchased by the Company) to
any Person, and when issued to the Investor in accordance with this Agreement
will not have been issued (whether or not subsequently repurchased by the
Company) to any Person other than the Investor.

         Section 4.10.  No General Solicitation or Advertising. In regard to the
transactions contemplated hereby, neither the Company nor any of its Affiliates
nor any distributor or any person acting on its or their behalf (i) has
conducted or will conduct any general solicitation (as that term is used in Rule
502(c) of Regulation D) or general advertising with respect to any of the
Preferred Stock or the Conversion Shares, or (ii) made any offers or sales of
any security or

                                       10
<PAGE>   11

solicited any offers to buy any security under any circumstances that would
require registration of the Preferred Stock or the Conversion Shares under the
Securities Act.

         Section 4.11.  No Conflicts. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including without limitation the issuance of
the Preferred Stock and the Conversion Shares do not and will not (i) result in
a violation of the Certificate or By-Laws or (ii) conflict with, or constitute a
material default (or an event that with notice or lapse of time or both would
become a material default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, indenture,
instrument or any "lock-up" or similar provision of any underwriting or similar
agreement to which the Company is a party, or (iii) result in a violation of any
federal, state, local or foreign law, rule, regulation, order, judgment or
decree (including federal and state securities laws and regulations) applicable
to the Company or by which any property or asset of the Company is bound or
affected nor is the Company otherwise in violation of, conflict with or in
default under any of the foregoing (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect);
provided, however, that for purposes of the Company's representations and
warranties as to violations of foreign law, rule or regulation referenced in
clause (iii), such representations and warranties are made only to the best of
the Company's knowledge insofar as the execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby are or may be affected by the status of the
Investor under or pursuant to any such foreign law, rule or regulation. The
business of the Company is not being conducted in violation of any law,
ordinance or regulation of any governmental entity, except for possible
violations that either singly or in the aggregate do not and will not have a
Material Adverse Effect. The Company is not required under federal, state or
local law, rule or regulation to obtain any consent, authorization or order of,
or make any filing or registration with, any court or governmental agency in
order for it to execute, deliver or perform any of its obligations under this
Agreement or issue and sell the Preferred Stock or the Conversion Shares in
accordance with the terms hereof (other than any SEC, NASD or state securities
filings that may be required to be made by the Company subsequent to the
Closing, any registration statement that may be filed pursuant hereto, and any
shareholder approval required by the rules applicable to companies whose common
stock trades on the Principal Market); provided that, for purposes of the
representation made in this sentence, the Company is assuming and relying upon
the accuracy of the relevant representations and agreements of the Investor
herein.

         Section 4.12.  No Material Adverse Change. Except as set forth in the
SEC Documents, since December 31, 1999, no event has occurred that would have a
Material Adverse Effect on the Company.

         Section 4.13.  No Undisclosed Liabilities. Except as set forth in the
SEC Documents, the Company has no liabilities or obligations that are material,
individually or in the aggregate, other

                                       11
<PAGE>   12

than those incurred in the ordinary course of the Company's businesses since
December 31, 1999 and which, individually or in the aggregate, do not or would
not have a Material Adverse Effect on the Company.

         Section 4.14.  No Undisclosed Events or Circumstances. Since December
31, 1999, no event or circumstance has occurred or exists with respect to the
Company or its businesses, properties, prospects, operations or financial
condition, that, under applicable law, rule or regulation, requires public
disclosure or announcement prior to the date hereof by the Company but which has
not been so publicly disclosed or announced.

         Section 4.15.  No Integrated Offering. Neither the Company, nor any of
its Affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would require registration of the
Preferred Stock or the Conversion Shares under the Securities Act.

         Section 4.16.  Litigation and Other Proceedings. Except as set forth in
the SEC Documents, there are no lawsuits or proceedings pending or to the best
knowledge of the Company threatened, against the Company, nor has the Company
received any written or oral notice of any such action, suit, proceeding or
investigation, which have had or might have a Material Adverse Effect. Except as
set forth in the SEC Documents, no judgment, order, writ, injunction or decree
or award has been issued by or, so far as is known by the Company, requested of
any court, arbitrator or governmental agency which has resulted in or might
result in a Material Adverse Effect.

         Section 4.17.  No Misleading or Untrue Communication. The Company, any
Person representing the Company and, to the knowledge of the Company, any other
Person selling or offering to sell the Preferred Stock or the Conversion Shares
in connection with the transactions contemplated by this Agreement, have not
made, at any time, any communication in connection with the offer or sale of the
same which contained any untrue statement of a material fact or omitted to state
any material fact necessary in order to make the statements, in the light of the
circumstances under which they were made, not misleading.

         Section 4.18.  Material Non-Public Information. The Company is not in
possession of, nor has the Company or its agents disclosed to the Investor, any
material non-public information that (i) if disclosed, would, or could
reasonably be expected to have, a an effect on the price of the Common Stock and
(ii) according to applicable law, rule or regulation, should have been disclosed
publicly by the Company prior to the date hereof but which has not been so
disclosed.

                                   ARTICLE V

                            COVENANTS OF THE INVESTOR

                                       12
<PAGE>   13

         Section 5.1.  Compliance. The Investor's trading activities with
respect to shares of the Company's Preferred Stock and Conversion Shares will be
in compliance with all applicable state and federal securities laws, rules and
regulations and the rules and regulations of the Principal Market on which the
Company's Common Stock is listed.

         Section 5.2.  Short Sale. Neither the Investor nor any of its
Affiliates will directly or indirectly engage in any Short Sale of the Preferred
Stock or the Conversion Shares.

                                   ARTICLE VI

                            COVENANTS OF THE COMPANY

         Section 6.1.  Registration Rights. The Company shall cause the
Registration Rights Agreement to remain in full force and effect, and the
Company shall comply in all respects with the terms thereof.

         Section 6.2.  Reservation of Common Stock. As of the date hereof, the
Company has available and the Company shall reserve and keep available at all
times, free of preemptive rights, shares of Common Stock for the purpose of
enabling the Company to satisfy any obligation to issue the Conversion Shares,
such amount of shares of Common Stock to be reserved shall be calculated based
upon the conversion price of the Preferred Stock set forth in the Certificate of
Designations. The number of shares so reserved from time to time, as theretofore
increased or reduced as hereinafter provided, may be reduced by the number of
shares actually delivered.

         Section 6.3.  Listing of Common Stock. The Company shall use its best
efforts to maintain the listing or quotation of the Common Stock on a Principal
Market, and as soon as practicable will cause the Conversion Shares to be listed
on the Principal Market. The Company further shall, if the Company applies to
have the Common Stock traded on any other Principal Market, include in such
application the Conversion Shares, and shall take such other action as is
necessary or desirable in the opinion of the Investor to cause the Common Stock
to be listed on such other Principal Market as promptly as possible. The Company
shall use its best efforts to continue the listing and trading of its Common
Stock on the Principal Market (including, without limitation, maintaining
sufficient net tangible assets) and will comply in all respects with the
Company's reporting, filing and other obligations under the bylaws or rules of
the NASD and the Principal Market.

         Section 6.4.  Exchange Act Registration. The Company shall comply with
all applicable requirements set forth in the Registration Rights Agreement,
including without limitation its obligation to file the Registration Statement
with the SEC within the time period set forth in the Registration Rights
Agreement. After the Registration Statement becomes effective, the Company shall
use its best efforts to cause the Common Stock covered by such Registration

                                       13
<PAGE>   14

Statement to continue to be registered under Section 12(g) or 12(b) of the
Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, and will use its best efforts not to take
any action or file any document (whether or not permitted by the Exchange Act or
the rules thereunder) to terminate or suspend such registration or to terminate
or suspend its reporting and filing obligations under the Exchange Act.

         Section 6.5. Legends. The certificates evidencing the Conversion Shares
shall be free of legends, except as provided for in Article VIII.

         Section 6.6. Corporate Existence. The Company shall take all steps
necessary to preserve and continue the corporate existence of the Company.

         Section 6.7. Additional SEC Documents. Until all Registrable Securities
issued or issuable to the Investor pursuant to this Agreement may be sold by the
Investor without registration and without any time, volume or manner limitations
pursuant to Rule 144(k) (or any similar provision then in effect) under the
Securities Act, the Company shall, as and when the originals thereof are
submitted to the SEC for filing, notify the Investor in writing of any SEC
Documents furnished or submitted to the SEC, and upon the request of the
Investor the Company shall deliver to the Investor copies of all SEC Documents
so furnished or submitted to the SEC.

         Section 6.8. Notice of Certain Events Affecting Registration. The
Company shall immediately notify the Investor, but in no event later than two
business days by facsimile and by overnight courier, upon the occurrence of any
of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of Registrable Securities: (i) receipt of
any request for additional information by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or related
prospectus; (ii) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; (iv) the happening of any event that makes any
statement made in such Registration Statement or related prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of
a Registration Statement, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and that in the case of
the related prospectus, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; (v) the declaration by the SEC of
the effectiveness of a Registration Statement; and (vi) the Company's reasonable
determination

                                       14
<PAGE>   15

that a post-effective amendment to the Registration Statement would be
appropriate, and the Company shall promptly make available to the Investor any
such supplement or amendment to the related prospectus.

         Section 6.9. Consolidation; Merger. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all of the assets of the Company to,
another entity unless the resulting successor or acquiring entity (if not the
Company) assumes by written instrument the obligation to deliver to the Investor
such shares of stock and/or securities as the Investor is entitled to receive
pursuant to this Agreement.

         Section 6.10. Issuance of Conversion Shares. The sale of the Preferred
Stock and the issuance of the Conversion Shares pursuant to conversion of the
Preferred Stock shall be made in accordance with the provisions and requirements
of Section 4(2), Section 3(a)(9), Regulation D and/or any applicable state law.

         Section 6.11. Legal Opinion. The Company's independent counsel shall
deliver to the Investor on the Closing Date an opinion in the form of Exhibit B.

         Section 6.12. No Similar Arrangement; Right of First Refusal. The
Company shall refrain from entering into any other agreements, arrangements or
understandings granting to the Company the right to sell shares of its
securities to one or more investors, other than a Strategic Investor, in
placements exempt from registration under the Securities Act until 180 calendar
days after the Registration Statement has been declared effective by the SEC
(the "Exclusivity Period"). If the Company, for the purpose of obtaining any
additional financing, wishes to sell shares of its securities in placements
exempt from registration under the Securities Act during the Exclusivity Period
(a "Sale") to a party other than a Strategic Investor and other than the
Investor (the "Third Party"), the Company shall first offer (the "Offer") to the
Investor, in writing, the right to purchase such shares (the "Offered Shares")
at the bona fide price offered by the Third Party (the "Offer Price"). The Offer
shall grant the Investor the right during the five Trading Days immediately
following the date of the Offer to elect to purchase any or all of the Offered
Shares. The Company, in connection with such a Sale, shall refrain from
circumventing or attempting to circumvent the Investor's right of first refusal
by way of making such a Sale to any of its Affiliates without first making an
Offer to the Investor. If the Investor fails to exercise its right to purchase
any or all of the Offered Shares, then during the 60 calendar days immediately
following the expiration of such right, the Company shall be free to sell any or
all of the Offered Shares to a purchaser for a purchase price not lower than the
Offer Price payable on terms and conditions that are not more favorable to such
purchaser than those contained in the Offer.

         Section 6.13. Public Announcements. The Company, its Representatives
and legal advisors, and the Investor will not issue or make any reports,
statements or releases to the public or to any third party with respect to this
Agreement or the transactions contemplated hereby

                                       15
<PAGE>   16

without the consent of both the Company and the Investor, which consent shall
not be unreasonably withheld. The Company, its Representatives and legal
advisers, and the Investor also will obtain the other party's prior approval of
any press release to be issued announcing the consummation of the transactions
contemplated by this Agreement or in any way referring to the other party or
affiliates of the other party. If either party is unable to obtain the approval
of its public report, statement, or press or other release from the other party
and such report, statement, or press or other release is, in the advice of legal
counsel to such party, required by applicable law or by any rule or regulation
of the Principal Market, in order to discharge such party's disclosure
obligations, then such party may make or issue the legally required report,
statement, or press or other release and promptly furnish the other party with a
copy thereof.

                                  ARTICLE VII

                       CONDITIONS TO CLOSING; TERMINATION

         Section 7.1. Conditions to Obligation of the Investor. The obligation
of the Investor to consummate the transactions set forth in this Agreement is
subject to the satisfaction at and as of the Closing of each of the following
conditions:

                  (a) Certificate of Designations. The Company shall have duly
         filed the Certificate of Designations with, and the Certificate of
         Designations shall have been accepted by, the Secretary of State of the
         State of Delaware.

                  (b) Delivery of Agreements. The Company shall have executed
         and delivered the Registration Rights Agreement.

                  (c) Consummation of Distribution. The Distribution shall have
         been consummated in accordance with the terms set forth in the
         Company's SEC Documents, the Common Stock shall have been listed or
         quoted on the Principal Market, and the Company shall have maintained
         all requirements for the continued listing or quotation of the Common
         Stock on the Principal Market.

                  (d) Representations and Warranties. The representations and
         warranties of the Company set forth in this Agreement shall be true and
         correct as of the Closing as though such representations and warranties
         were made on and as of the Closing, except for those representations
         and warranties which address matters only as of a particular date
         (which shall be true and correct only as of such date).

                  (e) Performance of Covenants. The Company shall have performed
         or complied in all material respects with all obligations, conditions
         and covenants required to be performed and complied with by it under
         this Agreement at or prior to the Closing.

                  (f) Opinion of Counsel. The Investor shall have received an
         opinion of the

                                       16
<PAGE>   17

         Company's legal counsel in the form of Exhibit B.

         Section 7.2. Conditions to Obligation of the Company. The obligation of
the Company to consummate the transactions set forth in this Agreement is
subject to the satisfaction at and as of the Closing of each of the following
conditions:

                  (a) Delivery of Agreements. The Investor shall have executed
         and delivered the Registration Rights Agreement.

                  (b) Consummation of Distribution. The Distribution shall have
         been consummated in accordance with the terms set forth in the
         Company's SEC Documents.

                  (c) Representations and Warranties. The representations and
         warranties of the Investor set forth in this Agreement shall be true
         and correct as of the Closing as though such representations and
         warranties were made on and as of the Closing, except for those
         representations and warranties which address matters only as of a
         particular date (which shall be true and correct only as of such date).

                  (d) Performance of Covenants. The Investor shall have
         performed or complied in all material respects with all obligations,
         conditions and covenants required to be performed and complied with by
         it under this Agreement at or prior to the Closing.

         Section 7.3. Termination. Notwithstanding anything to the contrary in
this Agreement, this Agreement may be terminated by either party hereto and the
transactions contemplated hereby abandoned if the Closing does not occur on or
prior to March 30, 2001.

                                  ARTICLE VIII

                                     LEGENDS

         Section 8.1. Legends. The Preferred Stock and, unless otherwise
provided below, each certificate representing Registrable Securities will bear
the following legend (the "Legend"):

         "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
         ACT"), OR ANY OTHER APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN
         RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS SECURITY
         NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
         ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, HYPOTHECATED OR OTHERWISE
         DISPOSED OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT

                                       17
<PAGE>   18

         UNDER THE SECURITIES ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT
         FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS
         CERTIFICATE IS THE BENEFICIARY OF CERTAIN OBLIGATIONS OF THE COMPANY
         SET FORTH IN A STOCK PURCHASE AGREEMENT, DATED AS OF JANUARY __, 2001,
         BETWEEN PRACTICEWORKS, INC. AND CRESCENT INTERNATIONAL LTD. A COPY OF
         THE PORTION OF THE AFORESAID AGREEMENT EVIDENCING SUCH OBLIGATIONS MAY
         BE OBTAINED FROM PRACTICEWORKS, INC.'S EXECUTIVE OFFICES."

         At the Closing, the Company shall issue to the transfer agent for its
Common Stock (and to any substitute or replacement transfer agent for its Common
Stock upon the Company's appointment of any such substitute or replacement
transfer agent) instructions in substantially the form of Exhibit C hereto, with
a copy to the Investor. Other than as required as a result of change in law,
such instructions shall be irrevocable by the Company from and after the date
hereof or from and after the issuance thereof to any such substitute or
replacement transfer agent, as the case may be, except as otherwise expressly
provided in the Registration Rights Agreement. It is the intent and purpose of
such instructions, as provided therein, to require the transfer agent for the
Common Stock from time to time upon transfer of Registrable Securities by the
Investor to issue certificates evidencing such Registrable Securities free of
the Legend during the following periods and under the following circumstances
and without consultation by the transfer agent with the Company or its counsel
and without the need for any further advice or instruction or documentation to
the transfer agent by or from the Company or its counsel or the Investor:

                  (a) At any time after the applicable Effective Date, upon
         surrender of one or more certificates evidencing Preferred Stock or
         Common Stock that bear the Legend, to the extent accompanied by a
         notice requesting the issuance of new certificates free of the Legend
         to replace those surrendered; provided that (i) the applicable
         Registration Statement shall then be effective and (ii) if reasonably
         requested by the transfer agent the Investor confirms to the transfer
         agent that the Investor has transferred the Registrable Securities
         pursuant to such Registration Statement and has complied with the
         prospectus delivery requirement.

                  (b) At any time upon any surrender of one or more certificates
         evidencing Registrable Securities that bear the Legend, to the extent
         accompanied by a notice requesting the issuance of new certificates
         free of the Legend to replace those surrendered and containing
         representations that the Investor is permitted to dispose of such
         Registrable Securities without limitation as to amount or manner of
         sale pursuant to Rule 144(k) under the Securities Act.

                                       18
<PAGE>   19

         Section 8.2. No Other Legend or Stock Transfer Restrictions. No legend
other than the one specified in Section 8.1 has been or shall be placed on the
share certificates representing the Preferred Stock and Registrable Securities,
and no instructions or "stop transfer orders," so called, "stock transfer
restrictions," or other restrictions have been or shall be given to the
Company's transfer agent with respect thereto other than as expressly set forth
in this Article VIII.

         Section 8.3. Investor's Compliance. Nothing in this Article VIII shall
affect in any way the Investor's obligations to comply with all applicable
securities laws.

                                   ARTICLE IX

                          INDEMNIFICATION; ARBITRATION

         Section 9.1. Indemnification.

                  (a) The Company agrees to indemnify and hold harmless the
         Investor, its Affiliates, officers, directors, employees, and duly
         authorized agents, and each Person or entity, if any, who controls the
         Investor within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act, together with its controlling persons
         from and against any Damages, joint or several, and any action in
         respect thereof to which the Investor, its Affiliates, officers,
         directors, employees, and duly authorized agents, and any such
         controlling person becomes subject to, resulting from, arising out of
         or relating to any misrepresentation, breach of warranty or
         nonfulfillment of or failure to perform any covenant or agreement on
         the part of the Company contained in this Agreement, as such Damages
         are incurred, unless such Damages result primarily from the Investor's
         gross negligence, recklessness or bad faith in performing its
         obligations under this Agreement; provided, however, that the maximum
         aggregate liability of the Company shall be limited to the amount
         actually invested by the Investor under this Agreement, and provided,
         further, that in no event shall this provision be deemed to limit any
         rights to indemnification arising under the Registration Rights
         Agreement.

                  (b) The Investor agrees to indemnify and hold harmless the
         Company, its partners, Affiliates, officers, directors, employees, and
         duly authorized agents, and each Person or entity, if any, who controls
         the Investor within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act, together with its controlling persons
         from and against any Damages, joint or several, and any action in
         respect thereof to which the Company, its partners, Affiliates,
         officers, directors, employees, and duly authorized agents, and any
         such controlling person becomes subject to, resulting from, arising out
         of or relating to any misrepresentation, breach of warranty or
         nonfulfillment of or failure to perform any covenant or agreement on
         the part of the Investor contained in this Agreement, as such Damages
         are incurred, unless such Damages result primarily

                                       19
<PAGE>   20

         from the Company's gross negligence, recklessness or bad faith in
         performing its obligations under this Agreement; provided, however,
         that the maximum aggregate liability of the Investor shall be limited
         to the amount by which the total price at which the Registrable
         Securities of the Investor were sold to the public exceeds the amount
         actually paid by the Investor under this Agreement for such Registrable
         Securities sold to the public, and provided, further, that in no event
         shall this provision be deemed to limit any rights to indemnification
         arising under the Registration Rights Agreement.

         Section 9.2. Method of Asserting Indemnification Claims. All claims for
indemnification by any Indemnified Party (as defined below) under Section 9.1
shall be asserted and resolved as follows:

                  (a) In the event any claim or demand in respect of which any
         person claiming indemnification under any provision of Section 9.1 (an
         "Indemnified Party") might seek indemnity under Section 9.1 is asserted
         against or sought to be collected from such Indemnified Party by a
         person other than the Company, the Investor or any Affiliate of the
         Company (a "Third Party Claim"), the Indemnified Party shall deliver a
         written notification, enclosing a copy of all papers served, if any,
         and specifying the nature of and basis for such Third Party Claim and
         for the Indemnified Party's claim for indemnification that is being
         asserted under any provision of Section 9.1 against any person (the
         "Indemnifying Party"), together with the amount or, if not then
         reasonably ascertainable, the estimated amount, determined in good
         faith, of such Third Party Claim (a "Claim Notice") with reasonable
         promptness to the Indemnifying Party. If the Indemnified Party fails to
         provide the Claim Notice with reasonable promptness after the
         Indemnified Party receives notice of such Third Party Claim, the
         Indemnifying Party shall not be obligated to indemnify the Indemnified
         Party with respect to such Third Party Claim to the extent that the
         Indemnifying Party's ability to defend has been irreparably prejudiced
         by such failure of the Indemnified Party. The Indemnifying Party shall
         notify the Indemnified Party as soon as practicable within the period
         ending 30 calendar days following receipt by the Indemnifying Party of
         either a Claim Notice or an Indemnity Notice (as defined below) (the
         "Dispute Period") whether the Indemnifying Party disputes its liability
         or the amount of its liability to the Indemnified Party under Section
         9.1 and whether the Indemnifying Party desires, at its sole cost and
         expense, to defend the Indemnified Party against such Third Party
         Claim.

                           (i)      If the Indemnifying Party notifies the
                  Indemnified Party within the Dispute Period that the
                  Indemnifying Party desires to defend the Indemnified Party
                  with respect to the Third Party Claim pursuant to this Section
                  9.2(a), then the Indemnifying Party shall have the right to
                  defend, with counsel reasonably satisfactory to the
                  Indemnified Party, at the sole cost and expense of the
                  Indemnifying Party, such Third Party Claim by all appropriate
                  proceedings, which proceedings shall be vigorously prosecuted
                  by the Indemnifying Party to a final

                                       20
<PAGE>   21

                  conclusion or will be settled at the discretion of the
                  Indemnifying Party (but only with the consent of the
                  Indemnified Party, in the case of any settlement that provides
                  for any relief other than the payment of monetary damages or
                  that provides for the payment of monetary damages as to which
                  the Indemnified Party shall not be indemnified in full
                  pursuant to Section 9.1). The Indemnifying Party shall have
                  full control of such defense and proceedings, including any
                  compromise or settlement thereof; provided, however, that the
                  Indemnified Party may, at the sole cost and expense of the
                  Indemnified Party, at any time prior to the Indemnifying
                  Party's delivery of the notice referred to in the first
                  sentence of this clause (i), file any motion, answer or other
                  pleadings or take any other action that the Indemnified Party
                  reasonably believes to be necessary or appropriate to protect
                  its interests; and provided further, that if requested by the
                  Indemnifying Party, the Indemnified Party will, at the sole
                  cost and expense of the Indemnifying Party, provide reasonable
                  cooperation to the Indemnifying Party in contesting any Third
                  Party Claim that the Indemnifying Party elects to contest. The
                  Indemnified Party may participate in, but not control, any
                  defense or settlement of any Third Party Claim controlled by
                  the Indemnifying Party pursuant to this clause (i), and except
                  as provided in the preceding sentence, the Indemnified Party
                  shall bear its own costs and expenses with respect to such
                  participation. Notwithstanding the foregoing, the Indemnified
                  Party may take over the control of the defense or settlement
                  of a Third Party Claim at any time if it irrevocably waives
                  its right to indemnity under Section 9.1 with respect to such
                  Third Party Claim.

                           (ii)     If the Indemnifying Party fails to notify
                  the Indemnified Party within the Dispute Period that the
                  Indemnifying Party desires to defend the Third Party Claim
                  pursuant to Section 9.2(a), or if the Indemnifying Party gives
                  such notice but fails to prosecute vigorously and diligently
                  or settle the Third Party Claim, or if the Indemnifying Party
                  fails to give any other notice required to be given within the
                  Dispute Period, then the Indemnified Party shall have the
                  right to defend, at the sole cost and expense of the
                  Indemnifying Party, the Third Party Claim by all appropriate
                  proceedings, which proceedings shall be prosecuted by the
                  Indemnified Party in a reasonable manner and in good faith or
                  will be settled at the discretion of the Indemnified Party
                  (with the consent of the Indemnifying Party, which consent
                  will not be unreasonably withheld). The Indemnified Party will
                  have full control of such defense and proceedings, including
                  any compromise or settlement thereof; provided, however, that
                  if requested by the Indemnified Party, the Indemnifying Party
                  will, at the sole cost and expense of the Indemnifying Party,
                  provide reasonable cooperation to the Indemnified Party and
                  its counsel in contesting any Third Party Claim which the
                  Indemnified Party is contesting. Notwithstanding the foregoing
                  provisions of this clause (ii), if the Indemnifying Party has
                  notified the Indemnified Party within the Dispute Period that
                  the Indemnifying Party disputes its liability or the amount of
                  its liability

                                       21
<PAGE>   22

                  hereunder to the Indemnified Party with respect to such Third
                  Party Claim, and if such dispute is resolved in favor of the
                  Indemnifying Party in the manner provided in clause (iii)
                  below, the Indemnifying Party will not be required to bear the
                  costs and expenses of the Indemnified Party's defense pursuant
                  to this clause (ii) or of the Indemnifying Party's
                  participation therein at the Indemnified Party's request, and
                  the Indemnified Party shall reimburse the Indemnifying Party
                  in full for all reasonable costs and expenses incurred by the
                  Indemnifying Party in connection with such litigation. The
                  Indemnifying Party may participate in, but not control, any
                  defense or settlement controlled by the Indemnified Party
                  pursuant to this clause (ii), and the Indemnifying Party shall
                  bear its own costs and expenses with respect to such
                  participation.

                           (iii)    If the Indemnifying Party notifies the
                  Indemnified Party that it does not dispute its liability or
                  the amount of its liability to the Indemnified Party with
                  respect to the Third Party Claim under Section 9.1 or fails to
                  notify the Indemnified Party within the Dispute Period whether
                  the Indemnifying Party disputes its liability or the amount of
                  its liability to the Indemnified Party with respect to such
                  Third Party Claim, the Damages in the amount specified in the
                  Claim Notice shall be conclusively deemed a liability of the
                  Indemnifying Party under Section 9.1 and the Indemnifying
                  Party shall pay the amount of such Damages to the Indemnified
                  Party on demand. If the Indemnifying Party has timely disputed
                  its liability or the amount of its liability with respect to
                  such claim, the Indemnifying Party and the Indemnified Party
                  shall proceed in good faith to negotiate a resolution of such
                  dispute, and if not resolved through negotiations within the
                  period of 30 calendar days immediately following the Dispute
                  Period, such dispute shall be resolved by arbitration in
                  accordance with Section 9.3.

                  (b) In the event any Indemnified Party should have a claim
         under Section 9.1 against the Indemnifying Party that does not involve
         a Third Party Claim, the Indemnified Party shall deliver a written
         notification of a claim for indemnity under Section 9.1 specifying the
         nature of and basis for such claim, together with the amount or, if not
         then reasonably ascertainable, the estimated amount, determined in good
         faith, of such claim (an "Indemnity Notice") with reasonable promptness
         to the Indemnifying Party. The failure by any Indemnified Party to give
         the Indemnity Notice shall not impair such party's rights hereunder
         except to the extent that the Indemnifying Party demonstrates that it
         has been irreparably prejudiced thereby. If the Indemnifying Party
         notifies the Indemnified Party that it does not dispute the claim or
         the amount of the claim described in such Indemnity Notice or fails to
         notify the Indemnified Party within the Dispute Period whether the
         Indemnifying Party disputes the claim or the amount of the claim
         described in such Indemnity Notice, the Damages in the amount specified
         in the Indemnity Notice will be conclusively deemed a liability of the
         Indemnifying Party under

                                       22
<PAGE>   23

         Section 9.1 and the Indemnifying Party shall pay the amount of such
         Damages to the Indemnified Party on demand. If the Indemnifying Party
         has timely disputed its liability or the amount of its liability with
         respect to such claim, the Indemnifying Party and the Indemnified Party
         shall proceed in good faith to negotiate a resolution of such dispute,
         and if not resolved through negotiations within the period of 30
         calendar days immediately following the Dispute Period, such dispute
         shall be resolved by arbitration in accordance with Section 9.3.

         Section 9.3. Arbitration. Any controversy, claim or dispute arising out
of or in connection with this Agreement or the Registration Rights Agreement,
including any question regarding its existence, validity, interpretation,
breach, or termination, shall be referred to and finally resolved in accordance
with the International Arbitration Rules of the American Arbitration
Association, and judgment upon the award rendered by the arbitral tribunal may
be entered by any court having jurisdiction thereof or having jurisdiction over
any party or any party's assets.

                  (a) The tribunal shall consist of three arbitrators, two of
         whom shall be appointed by the respective parties and the third, who
         shall be the chairperson of the tribunal, by the two party-appointed
         arbitrators within 30 days of the last of their appointments. Save
         that, if either party should fail to appoint an arbitrator within 30
         days of receiving written notice of the appointment of an arbitrator by
         the other party, the second arbitrator shall, at the written request of
         the party which has already made an appointment, be appointed forthwith
         by the American Arbitration Association. Likewise, if the
         party-appointed arbitrators fail to make an agreed appointment for the
         chairperson within 30 days of the last of their appointments, the
         chairperson shall, at the written request of either party, be appointed
         forthwith by the American Arbitration Association.

                  (b) The place of arbitration shall be New York, New York.

                  (c) This arbitration clause and the conduct of the arbitral
         proceedings shall be governed by the Federal Arbitration Act, 9
         U.S.C.A. sec. 1 et seq.

                  (d) The language of the arbitration shall be English.

                  (e) Nothing in these dispute resolution provisions shall be
         construed as preventing either party from seeking conservatory or
         similar interim relief in any court of competent jurisdiction.

                  (f) To the extent practicable, the arbitral tribunal shall
         render its award no more than 60 calendar days from the date that the
         three member tribunal is constituted. The arbitral tribunal shall not
         lose jurisdiction over the matter based on a failure to render an award
         within this time period.

                                       23
<PAGE>   24

                                   ARTICLE X

                                  MISCELLANEOUS

         Section 10.1. Closing Fees and Transaction Costs. In connection with
the execution of this agreement the following Closing Fees and Transaction Costs
(as defined below) are payable by the Company. The Investor is authorized by the
Company to retain and to pay, on behalf of the Company, the Closing Fees and
Transaction Costs to the payee entities in accordance with Schedule 10.1, and
may deduct such amounts from any sums due to the Company on the Closing Date.

                  (a) Closing Fees. The Company shall pay certain fees (the
         "Closing Fees") to the payee entities in accordance with Schedule 10.1.

                  (b) Transaction Costs. The fees, expenses and disbursements of
         the Investor's counsel (the "Investor Legal Fees") shall be paid as
         follows: (i) the Investor shall pay the initial $10,000 of Investor
         Legal Fees and (ii) the Company shall pay all Investor Legal Fees in
         excess of $10,000, provided that the Company's share of Investor Legal
         Fees shall not exceed $50,000. The Company shall pay the Investor due
         diligence costs in connection with the consummation of this Agreement
         and the transactions contemplated hereby (the "Due Diligence Costs,"
         and together with the Investor Legal Fees, the "Transaction Costs"), up
         to a maximum amount of $5,000. The Company shall pay to the Investor
         the Company's share of the Transaction Costs on the Closing Date, to
         the extent such share of the Transaction Costs can be determined on the
         Closing Date. The Company shall pay its share of the remaining
         Transaction Costs to the Investor not later than ten days after receipt
         of notice from the Investor that such amount is due. The Company agrees
         to pay its own expenses incident to the performance of its obligations
         hereunder.

         Section 10.2. Brokerage. Except as disclosed in Section 10.1, each of
the parties hereto represents that it has had no dealings in connection with
this transaction with any finder or broker which would impose a legal obligation
to pay any fee or commission. The Company on the one hand, and the Investor, on
the other hand, agree to indemnify the other against and hold the other harmless
from any and all liabilities to any persons claiming brokerage commissions or
finder's fees on account of services purported to have been rendered on behalf
of the indemnifying party in connection with this Agreement or the transactions
contemplated hereby.

         Section 10.3. Conversion Notice. Any conversion of the Preferred Stock
shall be effected in accordance with the Certificate of Designations of the
Company. Any

                                       24
<PAGE>   25

conversion notice delivered to the Company by the Investor shall be in the form
of Exhibit D hereto. Any conversion notice delivered to the Investor by the
Company shall be in the form of Exhibit E hereto.

         Section 10.4. Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served,
(ii) deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other address as such party shall have specified
most recently by written notice given in accordance herewith. Any notice or
other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the third business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

If to the Company:

                  PracticeWorks, Inc.
                  1765 The Exchange, Suite 300
                  Atlanta, GA 30339
                  Attention: Richard E. Perlman
                  Telephone: (770) 850-5006
                  Facsimile: (770) 857-1300

with a copy (which shall not constitute notice) to:

                  King & Spalding
                  191 Peachtree Street
                  Atlanta, GA 30303
                  Attention: John J. Kelley III
                  Telephone: (404) 572-4600
                  Facsimile: (404) 572-5100

                                       25
<PAGE>   26

if to the Investor:

                  Crescent International Ltd.
                  c/o GreenLight (Switzerland) SA
                  84, av Louis-Casai
                  1216 Geneva, Cointrin
                  Switzerland
                  Attention: Mel Craw/Maxi Brezzi
                  Telephone: +41 22 791 71 69
                  Facsimile: +41 22 929 53 94

with a copy (which shall not constitute notice) to:

                  Clifford Chance Rogers & Wells LLP
                  200 Park Avenue
                  New York, NY  10166
                  Attention: Earl S. Zimmerman, Esq.
                  Telephone: (212) 878-8000
                  Facsimile: (212) 878-8375

     Either party hereto from time to time may change its address or facsimile
     number for notices under this Section by giving at least ten (10) days'
     prior written notice of such changed address or facsimile number to the
     other party hereto.

         Section 10.5. Assignment. Neither this Agreement nor any rights of the
Investor or the Company hereunder may be assigned by either party to any other
Person. Notwithstanding the foregoing, the Investor's interest in this Agreement
may be assigned at any time, in whole or in part, to any Affiliate of the
Investor upon the prior written consent of the Company, which consent shall not
to be unreasonably withheld provided, however, that any such assignment or
transfer shall relieve the Investor of its duties under this Agreement only upon
performance thereof by any such assignee or transferee.

         Section 10.6. Amendment; No Waiver. No party shall be liable or bound
to any other party in any manner by any warranties, representations or covenants
except as specifically set forth in this Agreement. Except as expressly provided
in this Agreement, neither this Agreement nor any term hereof may be amended,
waived, discharged or terminated other than by a written instrument signed by
both parties hereto. The failure of the either party to insist on strict
compliance with this Agreement, or to exercise any right or remedy under this
Agreement, shall not constitute a waiver of any rights provided under this
Agreement, nor estop the parties from thereafter demanding full and complete
compliance nor prevent the parties from exercising such a right or remedy in the
future.

         Section 10.7. Annexes and Exhibits; Entire Agreement. All annexes and
exhibits to this Agreement are incorporated herein by reference and shall
constitute part of this Agreement. This

                                       26
<PAGE>   27

Agreement and the Registration Rights Agreement set forth the entire agreement
and understanding of the parties relating to the subject matter hereof and
thereof and supersede all prior and contemporaneous agreements, negotiations and
understandings between the parties, both oral and written, relating to the
subject matter hereof.

         Section 10.8. Survival. The provisions of Articles VI, VIII, IX and X
shall survive the Closing.

         Section 10.9. Severability. In the event that any provision of this
Agreement becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that such severability shall be
ineffective if it materially changes the economic benefit of this Agreement to
any party.

         Section 10.10. Title and Subtitles. The titles and subtitles used in
this Agreement are used for the convenience of reference and are not to be
considered in construing or interpreting this Agreement.

         Section 10.11. Counterparts. This Agreement may be executed in multiple
counterparts, each of which may be executed by less than all of the parties and
shall be deemed to be an original instrument which shall be enforceable against
the parties actually executing such counterparts and all of which together shall
constitute one and the same instrument.

         Section 10.12. Choice of Law. This Agreement shall be construed under
the laws of the State of New York.

         Section 10.13. Other Expenses. In the event that a dispute between the
parties is not determined by a Board of Arbitration, the non-prevailing party in
any action, suit or proceeding shall bear all investigative, legal and other
expenses reasonably incurred in connection with, and any and all amounts paid in
defense or settlement of such action, suit or proceeding.

                                       27
<PAGE>   28

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by the undersigned, thereunto duly authorized, as of the date first set
forth above.

                                        CRESCENT INTERNATIONAL LTD.

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

                                        PRACTICEWORKS, INC.

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

                                       28
<PAGE>   29

                                  SCHEDULE 10.1

The Company shall pay to the payee entities set forth below the following
Closing Fees and Transaction Costs under Section 10.1, which the Investor shall
then allocate as follows:

<TABLE>
<CAPTION>
EVENTS TRIGGERING THE   FEES/TRANSACTION     AMOUNT ON WHICH THE FEE IS              PAYEE ENTITY                 AMOUNT
       PAYMENT             COSTS                 CALCULATED
----------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                 <C>                            <C>                                <C>
Closing Date            Closing Fee         Investment Amount              GreenLight (Switzerland) S.A.      $100,000
----------------------------------------------------------------------------------------------------------------------------
Closing Date            Legal Fees          Investor Legal Fees with a     Crescent International Ltd.        Investor Legal
                                            maximum amount so payable of                                      Fees less
                                            $50,000                                                           $10,000 (with
                                                                                                              a maximum
                                                                                                              amount so
                                                                                                              payable of
                                                                                                              $50,000)
----------------------------------------------------------------------------------------------------------------------------
Closing Date            Due Diligence Costs Due Diligence Costs with a     GreenLight (Switzerland) S.A.      100% (with a
                                            maximum amount so payable of                                      maximum amount
                                            $5,000                                                            so payable of
                                                                                                              $5,000)
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]