Document:

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                                                                EXHIBIT 10.18(A)

                            STOCK PURCHASE AGREEMENT

                                 BY AND BETWEEN

                           CRESCENT INTERNATIONAL LTD.

                                       AND

                               PRACTICEWORKS, INC.

                            DATED AS OF MARCH 6, 2001

         This STOCK PURCHASE AGREEMENT is entered into as of the 6th day of
March, 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,
from time to time as provided herein, and the Investor shall purchase, up to
$35,000,000 of the Common 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.
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         Section 1.2.      "Bid Price" shall mean the closing bid price as
reported under Section 10.2 of this Agreement.

         Section 1.3.      "Capital Shares" shall mean the Common Stock and any
shares of any other class of common 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 1.4.      "Closing" shall mean one of the closings of a
purchase and sale of the Common Stock and the issuance of the Warrants pursuant
to Section 2.1 of this Agreement.

         Section 1.5.      "Closing Date" shall mean, with respect to a Closing,
the second Trading Day following the Sale Date related to such Closing, provided
all conditions to such Closing have been satisfied on or before such Trading
Day.

         Section 1.6.      "Closing Statement" shall mean the closing statement
executed by the Company and the Investor on the Subscription Date and on each
Closing Date, setting forth the actions taken by the Company and the Investor on
the Subscription Date and on such Closing Date, as applicable, and the amounts
due to the payee entities set forth on Schedule 10.1 hereto on the Subscription
Date and such Closing Date, as applicable, in the form of Exhibit A attached
hereto.

         Section 1.7.      "Commitment Period" shall mean the period commencing
on the Subscription Date and expiring on the earlier to occur of (i) the date on
which the Investor shall have purchased Commitment Shares pursuant to this
Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, (ii)
the date this Agreement is terminated pursuant to Section 2.5 hereof, or (iii)
the date occurring 24 months from the Subscription Date.

         Section 1.8.      "Commitment Shares" shall mean the First Sale Shares
and the Subsequent Sale Shares, collectively.

         Section 1.9.      "Common Stock" shall mean the Company's common stock,
$0.01 par value per share.

         Section 1.10.     "Condition Satisfaction Date" shall have the meaning
set forth in Section 7.2 of this Agreement.

         Section 1.11.     "Daily Trading Value" shall mean, on any Trading Day,
the Bid Price multiplied by the trading volume of the Common Stock.

         Section 1.12.     "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).

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         Section 1.13.     "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 1.14.     "Effective Date" with respect to each Sale of
Registrable Securities shall mean the earlier to occur of: (i) the applicable
date on which the SEC has declared effective a Registration Statement
registering resale of Registrable Securities as set forth in the Registration
Rights Agreement and (ii) the date on which such Registrable Securities first
become eligible for resale pursuant to Rule 144 of the Securities Act.

         Section 1.15.     "Exchange Act" shall mean the U.S. Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

         Section 1.16.     "First Sale" shall have the meaning set forth in
Section 2.1(a) of this Agreement.

         Section 1.17.     "First Sale Shares" shall have the meaning set forth
in Section 2.1(a) of this Agreement.

         Section 1.18.     "Incentive Warrant" shall mean the Incentive Warrant
in the form of Exhibit B hereto issued pursuant to Section 2.1(c) of this
Agreement.

         Section 1.19.     "Incentive Warrant Shares" shall mean all shares of
Common Stock issued or issuable pursuant to exercise of the Incentive Warrant.

         Section 1.20.     "Investment Amount" shall mean the dollar amount to
be invested by the Investor to purchase Commitment Shares with respect to any
Sale Date as notified by the Company to the Investor in accordance with Section
2.3 hereof.

         Section 1.21.     "Legend" shall have the meaning specified in Section
8.1 of this Agreement.

         Section 1.22.     "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 (i) this Agreement, (ii) the Registration Rights Agreement and (iii) the
Warrants.

         Section 1.23.     "Maximum Commitment Amount" shall mean $35,000,000.

         Section 1.24.     "Maximum Sale Amount" shall mean (i) with respect to
the First Sale, up to 2.75 times the average of the Daily Trading Values and
(ii) with respect to each Subsequent Sale, up to 2.00 times the average of the
Daily Trading Values, during the 22 Trading Day period immediately preceding the
applicable Sale Notice Date, and in each case subject to a maximum amount of
$2,500,000 unless a higher amount is agreed to in writing by the Company and the
Investor. If the average of the Daily Trading Values during the 22 Trading Day
period

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immediately preceding the applicable Sale Notice Date is less than $150,000,
then the Maximum Sale Amount shall be $50,000.

         Section 1.25.     "Minimum Time Interval" shall mean (i) if the
previous Sale related to the sale of unregistered Common Stock, 22 Trading Days
from the Effective Date relating to such Sale, or (ii) if the previous Sale
related to the sale of registered Common Stock, 22 Trading Days from the
previous Sale Date.

         Section 1.26.     "NASD" shall mean the National Association of
Securities Dealers, Inc.

         Section 1.27.     "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 1.28.     "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 1.29.     "Preferred Stock" shall mean shares of Series C
Convertible Preferred Stock, par value $0.01 per share, of the Company.

         Section 1.30.     "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 1.31.     "Protective Warrant" or "Protective Warrants" shall
mean any and all Protective Warrant(s) in the form of Exhibit C hereto issued
pursuant to Section 2.1(b) of this Agreement.

         Section 1.32.     "Protective Warrant Shares" shall mean all shares of
Common Stock issued or issuable pursuant to exercise of the Protective Warrants.

         Section 1.33.     "Purchase Price" shall mean 94% of the lowest three
consecutive Bid Prices during (i) with respect to a Sale, the 22 Trading Day
period immediately preceding and ending on the applicable Sale Date and (ii)
with respect to an Effective Date, the 22 Trading Day period immediately
preceding such Effective Date.

         Section 1.34.     "Registrable Securities" shall mean (i) the
Commitment Shares, (ii) the Warrant Shares and (iii) 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,

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(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 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 1.35.     "Registration Rights Agreement" shall mean the
registration rights agreement by and between the Company and the Investor, in
the form of Exhibit D hereto.

         Section 1.36.     "Registration Statement" or "Registration Statements"
shall have the meaning set forth in the Registration Rights Agreement.

         Section 1.37.     "Regulation D" shall have the meaning set forth in
the recitals of this Agreement.

         Section 1.38.     "Representative" of a party shall mean any officer,
director, employee, agent, counsel, accountant, financial advisor, consultant or
other representative of such party.

         Section 1.39.     "Sale" shall mean the First Sale together with any
and all Subsequent Sales. Section 1.40. "Sale Date" shall mean the Trading Day
on which a Sale Notice Period expires.

         Section 1.41.     "Sale Fees" shall have the meaning specified in
Section 10.1(b) hereof.

         Section 1.42.     "Sale Notice" shall mean a written notice to the
Investor setting forth the intended Closing Date, the Investment Amount and the
number of shares of Common Stock that the Company intends to require the
Investor to purchase pursuant to the terms of this Agreement.

         Section 1.43.     "Sale Notice Date" shall mean the Trading Day during
the Commitment Period upon which a Sale Notice to sell Common Stock to the
Investor is deemed delivered pursuant to Section 2.3(b) hereof.

         Section 1.44.     "Sale Notice Period" shall mean a period beginning on
a Sale Notice Date and ending 7 Trading Days after a Sale Notice Date.

         Section 1.45.     "SEC" shall mean the U.S. Securities and Exchange
Commission.

         Section 1.46.     "SEC Documents" shall mean all filings made by the
Company 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.

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         Section 1.47.     "Section 3(a)(9)" shall have the meaning set forth in
the recitals of this Agreement.

         Section 1.48.     "Section 4(2)" shall have the meaning set forth in
the recitals of this Agreement.

         Section 1.49.     "Securities Act" shall have the meaning set forth in
the recitals of this Agreement.

         Section 1.50.     "Short Sale" shall have the meaning specified in Rule
3b-3 of the Exchange Act.

         Section 1.51.     "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 1.52.     "Subscription Date" shall mean the date on which this
Agreement is executed and delivered by the parties hereto.

         Section 1.53.     "Subscription Fee" shall have the meaning set forth
in Section 10.1(a) hereof.

         Section 1.54.     "Subsequent Sale" shall have the meaning set forth in
Section 2.1(d) of this Agreement.

         Section 1.55.     "Subsequent Sale Shares" shall have the meaning set
forth in the Section 2.1(d) of this Agreement.

         Section 1.56.     "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.

         Section 1.57.     "Trading Day" shall mean any day during which the
Principal Market shall be open for business.

         Section 1.58.     "Transfer Agent Instructions" shall have the meaning
set forth in Section 2.4(a) of this Agreement.

         Section 1.59.     "Underwriter" shall mean any underwriter
participating in any disposition of the Registrable Securities on behalf of the
Investor pursuant to a Registration Statement.

         Section 1.60.     "Warrants" shall mean the Protective Warrants and the
Incentive Warrant.

         Section 1.61.     "Warrant Shares" shall mean the Protective Warrant
Shares and the Incentive Warrant Shares.

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                                   ARTICLE II

                 SALE AND PURCHASE OF COMMON STOCK AND WARRANTS;
                           TERMINATION OF OBLIGATIONS

     Section 2.1. Sales.

         (a)      First Sale. Upon the terms and conditions set forth herein
         (including, without limitation, the provisions of Article VII hereof),
         the Company shall exercise the First Sale by the delivery of a Sale
         Notice. On the Closing Date relating to the First Sale, the Company
         shall issue and sell and the Investor shall purchase such number of
         shares of Common Stock for the Investment Amount stated in the
         applicable Sale Notice, which amount shall not exceed the Maximum Sale
         Amount, and at the applicable Purchase Price as determined in
         accordance with the terms and conditions set forth herein (such
         transaction is referred to herein as the "First Sale," and all such
         shares are referred to herein as the "First Sale Shares").

         (b)      Protective Warrants. In partial consideration for the Investor
         entering into this Agreement if the Company elects to exercise its
         right with respect to any Sale to require the Investor to purchase
         shares of Common Stock that have not been previously registered and are
         not covered by an effective Registration Statement filed with the SEC,
         on each Closing Date relating to each such Sale, the Company shall
         issue and deliver to the Investor a Protective Warrant with an exercise
         price of $0.01 for each share of Common Stock.

         (c)      Incentive Warrant. In partial consideration for the Investor
         entering into this Agreement, on the applicable Closing Date of the
         First Sale the Company shall issue and deliver to the Investor the
         Incentive Warrant, with an exercise price equal to 150% of the Purchase
         Price of the First Sale.

         (d)      Subsequent Sales. Upon the terms and conditions set forth
         herein (including, without limitation, the provisions of Article VII
         hereof), on any Sale Notice Date the Company may exercise a Subsequent
         Sale by the delivery of a Sale Notice. On the Closing Date relating to
         each Subsequent Sale, the Company shall issue and sell and the Investor
         shall purchase such number of shares of Common Stock for the Investment
         Amount stated in the applicable Sale Notice, which amount shall not
         exceed the Maximum Sale Amount and at the applicable Purchase Price
         determined in accordance with the terms and conditions set forth herein
         (each such transaction is referred to herein as a "Subsequent Sale,"
         and all such shares are referred to herein as the "Subsequent Sale
         Shares").

     Section 2.2. Twenty Percent Limitations. 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 Sales and the Warrants, provided, that with respect to the issuance
of more than 19.9% of the Outstanding shares of Common Stock pursuant

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to the Warrants, 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.

         Section 2.3.      Sale Notice.

         (a)      Timing. At any time during the Commitment Period but no less
than 23 Trading Days after the effective date of the Distribution, the Company
may deliver a Sale Notice to the Investor, subject to the conditions set forth
in Section 7.2.

         (b)      Date of Delivery of Sale Notice. A Sale Notice shall be deemed
delivered on (i) the Trading Day it is received by facsimile or otherwise by the
Investor if such notice is received prior to 12:00 noon New York time, or (ii)
the immediately succeeding Trading Day if it is received by facsimile or
otherwise after 12:00 noon New York time on a Trading Day or at any time on a
day which is not a Trading Day. No Sale Notice will be deemed delivered on a day
that is not a Trading Day.

         Section 2.4.      Closings.

         (a)      Subscription Date. On the Subscription Date (i) the Company
and the Investor shall execute the Registration Rights Agreement, (ii) the
Company shall execute and deliver irrevocable instructions to the transfer
agent, in the form of Exhibit E attached hereto (the "Transfer Agent
Instructions"), to prepare and deliver to the Investor, following each Sale, a
share certificate in the name of the Investor and in the amount of the
applicable Commitment Shares, the transfer agent shall confirm and accept such
instructions, and a copy of such instructions shall be delivered to the
Investor's legal counsel, (iii) the Investor shall deliver to the Company and
the Company shall execute a Closing Statement, and (iv) the Company shall pay to
the Investor the applicable fees and costs determined in accordance with Section
10.1, by wire transfer of immediately available funds to the account designated
in writing by the Investor. In addition, on or prior to the Subscription Date,
each of the Company and the Investor shall deliver to the other all documents,
instruments and writings required to be delivered or reasonably requested by
either of them pursuant to this Agreement in order to implement and effect the
transactions contemplated herein.

         (b)      Closing Date. On each Closing Date (i) the Company shall issue
and deliver to the Investor a Protective Warrant, if required by Section 2.1(b)
hereof, (ii) the Company shall instruct the transfer agent to prepare and
deliver to the Investor a share certificate in the name of the Investor and in
the amount of the applicable Commitment Shares, in accordance with the Transfer
Agent Instructions, (iii) the Investor shall deliver to the Company and the
Company shall execute a Closing Statement, and (iv) the Investor shall deliver
to the Company the Investment Amount specified in the Closing Statement, less
applicable fees and costs determined in accordance with Section 10.1 and
Schedule 10.1, by wire transfer of immediately available funds to the account
designated in writing in the Sale Notice. On the Closing Date relating to the
First Sale, the Company shall deliver the Incentive Warrant to the

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Investor. In addition, on or prior to each Closing Date, each of the Company and
the Investor shall deliver to the other all documents, instruments and writings
required to be delivered or reasonably requested by either of them pursuant to
this Agreement in order to implement and effect the transactions contemplated
herein.

         Section 2.5.      Termination of Agreement and Investment Obligation.
The Company shall have the right to terminate this Agreement at any time upon 30
days' written notice to the Investor. The Investor shall have the right to
immediately terminate this Agreement (including with respect to any Sale, notice
of which has been given but the applicable Closing Date has not yet occurred) in
accordance with Section 6.12 or in the event that: (i) any Registration
Statement has not been declared effective by the SEC within the applicable time
periods set forth in Section 1.1 of the Registration Rights Agreement, (ii)
there shall occur any stop order or suspension of the effectiveness of the
Registration Statement for an aggregate of 30 Trading Days during the Commitment
Period, or (iii) the Company shall at any time fail to comply with the
requirements of Section 6.2, 6.3, 6.4, 6.5, 6.6, 6.8 or 6.9.

                                  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 Warrants 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 Warrants 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 Warrants for any minimum or other specific term and reserves the
right to dispose of the Registrable Securities or Warrants at any time pursuant
to the Registration Statement and in accordance with federal and state
securities laws applicable to such disposition.

         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.
The Investor acknowledges that an investment in the Common 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.

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         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 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 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 Warrants 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 Warrants because the Registrable Securities and
Warrants 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 Warrants 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 Warrants 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 Warrants may be endorsed with a legend to this
effect.

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                                   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, the Registration Rights Agreement and the Warrants and to issue
the Commitment Shares, the Warrants and the Warrant Shares; (ii) the execution
and delivery of this Agreement and the Registration Rights Agreement, and the
execution, issuance and delivery of the Warrants, 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, and the Warrants at the time of their
delivery will be duly executed, issued and delivered, by the Company and at the
time of their delivery will 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

                                       11
<PAGE>   12

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. Following the Distribution, the outstanding
capital stock of the Company and 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 will be as
set forth on Schedule 4.5, which shall be delivered to the Investor on the date
of the Distribution.

         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
division 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

                                       12
<PAGE>   13

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 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 Warrants, the Warrant Shares, and the
Commitment 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 and in the
Warrants, the Commitment Shares and the Warrant Shares will be duly and validly
issued, fully paid, and nonassessable. Neither the sales of the Commitment
Shares, the Warrants, or the Warrant Shares pursuant to, nor the Company's
performance of its obligations under, this Agreement, the Registration Rights
Agreement or the Warrants will (i) result in the creation or imposition of any
liens, charges, claims or other encumbrances upon the Commitment Shares, the
Warrant 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 Commitment
Shares and the Warrant Shares will not subject the Investor to personal
liability by reason of the ownership thereof. The Commitment Shares and Warrant
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 and the Warrants 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

                                       13
<PAGE>   14

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 Commitment Shares, the Warrants,
or the Warrant Shares, or (ii) made any offers or sales of any security or
solicited any offers to buy any security under any circumstances that would
require registration of the Common Stock 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 Commitment Shares, the Warrants and the Warrant 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 Common Stock, the Commitment Shares, the
Warrants, or the Warrant 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 any 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 filed with the SEC on or before the Subscription Date, 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 than those incurred in the
ordinary course of the Company's businesses since December 31, 1999

                                       14
<PAGE>   15

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
Common Stock, the Commitment Shares, the Warrants or the Warrant 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 Commitment Shares, the Warrants or
the Warrant 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, 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

         Section 5.1.      Compliance. The Investor's trading activities with
respect to the Commitment Shares, the Warrant Shares and the Warrants 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.

                                       15
<PAGE>   16

         Section 5.2.      Short Sale. Neither the Investor nor any of its
Affiliates will directly or indirectly engage in any Short Sale of the
Commitment Shares, the Warrant Shares or the Warrants.

                                   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 Commitment Shares
and the Warrant Shares, such amount of shares of Common Stock to be reserved
shall be sufficient to comply with the Company's obligation to issue Common
Stock to the Investor upon exercise of the Warrants. 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 (but in any event prior to the
Closing Date for any Sale) will cause the Commitment Shares and the Warrant
Shares with respect to each Sale 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 Commitment Shares
and the Warrant 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 each Registration Statement
with the SEC within the applicable time periods set forth in the Registration
Rights Agreement. After each Registration Statement becomes effective, the
Company shall use its best efforts to cause the Common Stock covered by such
Registration 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.

                                       16
<PAGE>   17

         Section 6.5.      Legends. The certificates evidencing the Warrants,
the Commitment Shares and the Warrant 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;
Suspension of Right to Make a Subsequent Sale. 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 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. The Company shall not deliver to the
Investor any Sale Notice during the continuation of any of the foregoing events.

         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) executes a written instrument acknowledging and assuming
the obligation to issue to the Investor, upon any Sale or the exercise of any
Warrant, in lieu of each share of Common Stock theretofore issuable upon such
Sale or exercise of any such

                                       17
<PAGE>   18

Warrant, other securities, money or property receivable upon such merger,
consolidation or transfer had the Sale or exercise of such Warrant occurred
immediately prior to such merger, consolidation or transfer.

         Section 6.10.     Issuance of Commitment Shares, Warrant Shares and
Additional Shares. The sale of the Commitment Shares, and the issuance of the
Warrant Shares pursuant to exercise of the Warrants shall be made in accordance
with the provisions and requirements of Section 4(2), Section 3(a)(9),
Regulation D and any applicable state law. Issuance of the Warrant Shares
pursuant to exercise of the Warrants through a cashless exercise shall be made
in accordance with the provisions and requirements of Section 3(a)(9) under the
Securities Act and any applicable state law.

         Section 6.11.     Legal Opinion on Subscription Date. The Company's
independent counsel shall deliver to the Investor on the Subscription Date an
opinion in the form of Exhibit F, except for the third to last paragraph
thereof.

         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 60 calendar
days after this Agreement is terminated pursuant to Section 2.5 hereof (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 "Third Party 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 5 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 Third Party Sale,
shall refrain from circumventing or attempting to circumvent the Investor's
right of first refusal by way of making such a Third Party Sale to any of its
Affiliates without first making an Offer to the Investor. If the Investor so
exercises its right to purchase any or all of the Offered Shares, the purchase
will be treated as a Subsequent Sale except that the purchase price for the
Offered Shares shall be the Offer Price. The closing and method of payment shall
be as provided for in Sections 2.3 and 2.4 hereof and the Closing Date shall be
7 Trading Days after the Investor exercises such right. 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.
In the event that the Company effects a Third Party Sale other than in
accordance with this Section 6.12, the Investor may immediately terminate this
Agreement.

         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 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

                                       18
<PAGE>   19

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 DELIVERY OF
                     SALE NOTICES AND CONDITIONS TO CLOSING

         Section 7.1.      Conditions Precedent to the Obligation of the Company
to Issue and Sell Common Stock. The obligation hereunder of the Company to issue
and sell the Commitment Shares to the Investor incident to each Closing is
subject to the satisfaction, at or before each such Closing, of each of the
conditions set forth below.

                  (a)      Accuracy of the Investor's Representation and
                  Warranties. The representations and warranties of the Investor
                  shall be true and correct in all material respects as of the
                  date of this Agreement and as of the date of each such Closing
                  as though made at each such time.

                  (b)      Performance by the Investor. The Investor shall have
                  performed, satisfied and complied in all material respects
                  with all covenants, agreements and conditions required by this
                  Agreement to be performed, satisfied or complied with by the
                  Investor at or prior to such Closing.

         Section 7.2.      Conditions Precedent to the Right of the Company to
Deliver a Sale Notice and the Obligation of the Investor to Purchase Commitment
Shares. The right of the Company to deliver a Sale Notice and the obligation of
the Investor hereunder to acquire and pay for the Commitment Shares incident to
a Closing is subject to the satisfaction, on (i) the Subscription Date, (ii) the
applicable Sale Notice Date and (iii) the applicable Closing Date (each a
"Condition Satisfaction Date"), of each of the following conditions; provided,
however, that with respect to the Subscription Date and the Closing relating to
the First Sale only, the Investor waives the conditions set forth in paragraphs
(a), (b) and (k) of this Section 7.2:

                  (a)      Filing of Registration Statements with the SEC. In
                  accordance with the provisions set forth in the Registration
                  Rights Agreement, the Company shall have filed with the SEC
                  Registration Statements covering the resale of Registrable
                  Securities relating to all prior Sales, if any.

                  (b)      Effective Registration Statements. (1) The Company
                  shall have notified the Investor in accordance with Section
                  6.8 hereof that all prior Registration Statements covering
                  Registrable Securities relating to the First Sale and any
                  Subsequent Sales have been declared effective by the SEC. (2)
                  In accordance

                                       19
<PAGE>   20

                  with the Registration Rights Agreement all such Registration
                  Statements shall remain effective on each Condition
                  Satisfaction Date. (3) Neither the Company nor the Investor
                  shall have received notice that the SEC has issued or intends
                  to issue a stop order with respect to a Registration Statement
                  or that the SEC otherwise has suspended or withdrawn the
                  effectiveness of a Registration Statement, either temporarily
                  or permanently, or intends or has threatened to do so (unless
                  the SEC's concerns have been addressed and the Investor is
                  reasonably satisfied that the SEC no longer is considering or
                  intends to take such action). (4) No other suspension of the
                  use or withdrawal of the effectiveness of such Registration
                  Statement or related prospectus shall exist.

                  (c)      Accuracy of the Company's Representations and
                  Warranties. The representations and warranties of the Company
                  shall be true and correct as of each Condition Satisfaction
                  Date as though made at each such time (except for
                  representations and warranties specifically made as of a
                  particular date).

                  (d)      Performance by the Company. The Company shall have
                  performed, satisfied and complied in all respects with all
                  covenants, agreements and conditions required by this
                  Agreement, the Registration Rights Agreement and the Warrants
                  to be performed, satisfied or complied with by the Company at
                  or prior to each Condition Satisfaction Date.

                  (e)      No Injunction. No statute, rule, regulation,
                  executive order, decree, ruling or injunction shall have been
                  enacted, entered, promulgated or adopted by any court or
                  governmental authority of competent jurisdiction that
                  prohibits the transactions contemplated by this Agreement or
                  otherwise has a Material Adverse Effect, and no actions, suits
                  or proceedings shall be in progress, pending or threatened by
                  any Person, that seek to enjoin or prohibit the transactions
                  contemplated by this Agreement or otherwise could reasonably
                  be expected to have a Material Adverse Effect. For purposes of
                  this paragraph (e), no proceeding shall be deemed pending or
                  threatened unless one of the parties has received written or
                  oral notification thereof prior to the applicable Closing
                  Date.

                  (f)      No Suspension of Trading in or Delisting of Common
                  Stock. The trading of the Common Stock shall not have been
                  suspended by the SEC, the Principal Market or the NASD, and
                  the Common Stock shall have been approved for listing or
                  quotation on and shall not have been delisted from the
                  Principal Market. The issuance of shares of Common Stock with
                  respect to the applicable Closing shall not violate the
                  shareholder approval requirements of the Principal Market.

                  (g)      Legal Opinion. The Company shall have caused to be
                  delivered to the Investor, within 5 Trading Days of the
                  effective date of a Registration Statement, an opinion of the
                  Company's independent counsel in the form of Exhibit F hereto,
                  addressed to the Investor.

                                       20
<PAGE>   21

                  (h)      Due Diligence. No dispute between the Company and the
                  Investor shall exist pursuant to Section 7.3 as to the
                  adequacy of the disclosure contained in the Registration
                  Statement.

                  (i)      Ten Percent Limitation. On each Closing Date, the
                  number of Commitment Shares then to be purchased by the
                  Investor shall not exceed the number of such shares that, when
                  aggregated with all other shares of Common Stock and
                  Registrable Securities then owned by the Investor beneficially
                  or deemed beneficially owned by the Investor, as determined in
                  accordance with the definition of beneficial ownership in Rule
                  13d-3 promulgated under the Exchange Act, would result in the
                  Investor owning no more than 9.9% of all of such Common Stock
                  as would be outstanding on such Closing Date, as determined in
                  accordance with Section 13(d) of the Exchange Act and the
                  regulations promulgated thereunder. For purposes of this
                  Section, in the event that the amount of Common Stock
                  outstanding as determined in accordance with Section 13(d) of
                  the Exchange Act and the regulations promulgated thereunder is
                  greater on a Closing Date than on the Sale Notice Date
                  associated with such Closing Date, the amount of Common Stock
                  outstanding on such Closing Date shall govern for purposes of
                  determining whether the Investor, when aggregating all
                  purchases of Common Stock made pursuant to this Agreement and,
                  if any, Warrant Shares would own more than 9.9% of the Common
                  Stock following such Closing Date.

                  (j)      No Knowledge. The Company shall have no knowledge of
                  any event more likely than not to have the effect of causing
                  any Registration Statement to be suspended or otherwise
                  ineffective (which event is more likely than not to occur
                  within the fifteen Trading Days following the Trading Day on
                  which such notice is deemed delivered).

                  (k)      Minimum Time Interval. The Minimum Time Interval
                  shall have elapsed.

                  (l)      Shareholder Vote. The issuance of shares of Common
                  Stock with respect to the applicable Closing, if any, shall
                  not violate the shareholder approval requirements of the
                  Principal Market. Following each Sale Notice, the Company
                  shall promptly provide the Investor with a written schedule
                  stating as of such applicable Sale Notice Date (i) the total
                  number of shares of Outstanding Common Stock, (ii) the number
                  of Subsequent Sale Shares issuable with respect to the
                  applicable Closing, (iii) the number of First Sale Shares
                  issued, (iv) the number of Protective Warrant Shares issued or
                  issuable, if any, and (v) the number of Incentive Warrant
                  Shares issued or issuable, if any. If the issuance by the
                  Company of a number of shares of Common Stock equal to the sum
                  of the amounts stated in clauses (ii) through (v), inclusive,
                  hereof would result in a violation by the Company of the
                  shareholder approval requirements of the Principal Market, the
                  applicable Sale Notice shall be deemed null and void.

                  (m)      Other. On each Condition Satisfaction Date, the
                  Investor shall have received and been reasonably satisfied
                  with such other certificates and documents

                                       21
<PAGE>   22

                  as shall have been reasonably requested by the Investor in
                  order for the Investor to confirm the Company's satisfaction
                  of the conditions set forth in this Section 7.2., including,
                  without limitation, a certificate in substantially the form
                  and substance of Exhibit G hereto, executed in either case by
                  an executive officer of the Company and to the effect that all
                  the conditions to such Closing shall have been satisfied as at
                  the date of each such certificate.

         Section 7.3.      Due Diligence Review; Non-Disclosure of Non-Public
Information.

                  (a)      The Company shall make available for inspection and
                  review by the Investor, advisors to and representatives of the
                  Investor (who may or may not be affiliated with the Investor
                  and who are reasonably acceptable to the Company), and any
                  Underwriter, any Registration Statement or amendment or
                  supplement thereto or any blue sky, NASD or other filing, all
                  financial and other records, all SEC Documents and other
                  filings with the SEC, and all other corporate documents and
                  properties of the Company as may be reasonably necessary for
                  the purpose of such review, and cause the Company's officers,
                  directors and employees to supply all such information
                  reasonably requested by the Investor or any such
                  representative, advisor or Underwriter in connection with such
                  Registration Statement (including, without limitation, in
                  response to all questions and other inquiries reasonably made
                  or submitted by any of them), prior to and from time to time
                  after the filing and effectiveness of such Registration
                  Statement for the sole purpose of enabling the Investor and
                  such representatives, advisors and Underwriters and their
                  respective accountants and attorneys to conduct initial and
                  ongoing due diligence with respect to the Company and the
                  accuracy of such Registration Statement.

                  (b)      None of the Company, its officers, directors,
                  employees and agents shall in any event disclose non-public
                  information to the Investor, advisors to or representatives of
                  the Investor unless prior to disclosure of such information
                  the Company identifies such information as being non-public
                  information and provides the Investor, such advisors and
                  representatives with the opportunity to accept or refuse to
                  accept such non-public information for review. As a condition
                  to disclosing any non-public information hereunder, the
                  Company may require the Investor's advisors and
                  representatives to enter into a confidentiality agreement in
                  form reasonably satisfactory to the Company and the Investor.

                  (c)      Nothing herein shall require the Company to disclose
                  non-public information to the Investor or its advisors or
                  representatives, and the Company represents that it does not
                  disseminate non-public information to any investors who
                  purchase stock in the Company in a public offering, to money
                  managers or to securities analysts, absent a confidentiality
                  agreement between the Company and such parties; provided,
                  however, that notwithstanding anything herein to the contrary,
                  the Company shall, as hereinabove provided, immediately notify
                  the advisors and representatives of the Investor and any
                  Underwriters of any event or the existence of any circumstance
                  (without any obligation to disclose the specific event or
                  circumstance) of which it becomes aware, constituting
                  non-public

                                       22
<PAGE>   23

                  information (whether or not requested of the Company
                  specifically or generally during the course of due diligence
                  by such persons or entities), which, if not disclosed in the
                  prospectus included in the applicable Registration Statement
                  would cause such prospectus to include a material misstatement
                  or to omit a material fact required to be stated therein in
                  order to make the statements, therein, in light of the
                  circumstances in which they were made, not misleading. Nothing
                  contained in this Section 7.3 shall be construed to mean that
                  such persons or entities other than the Investor (without the
                  written consent of the Investor prior to disclosure of such
                  information) may not obtain non-public information in the
                  course of conducting due diligence in accordance with the
                  terms and conditions of this Agreement and nothing herein
                  shall prevent any such persons or entities from notifying the
                  Company of their opinion that based on such due diligence by
                  such persons or entities, that such Registration Statement
                  contains an untrue statement of a material fact or omits a
                  material fact required to be stated in such Registration
                  Statement or necessary to make the statements contained
                  therein, in light of the circumstances in which they were
                  made, not misleading.

                                  ARTICLE VIII

                                     LEGENDS

         Section 8.1.      Legends. Each of the Warrants 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 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 MARCH 6, 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."

         On the Subscription Date 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

                                       23
<PAGE>   24

Company's appointment of any such substitute or replacement transfer agent)
Transfer Agent Instructions, 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 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; 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; or

                  (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.

         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 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 partners, Affiliates, officers, directors,
                  employees, and duly authorized agents, and each Person or
                  entity, if any, who controls the Investor within the meaning
                  of

                                       24
<PAGE>   25

                  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 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 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 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 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 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 held by 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

                                       25
<PAGE>   26

                  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
                           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

                                       26
<PAGE>   27

                           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 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

                                       27
<PAGE>   28

                           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 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, the Registration Rights
Agreement or the Warrants, 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

                                       28
<PAGE>   29

                  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.

                                   ARTICLE X

                                  MISCELLANEOUS

         Section 10.1.     Fees and Transaction Costs. In connection with the
execution of this agreement the following Sale 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 Subscription Fee,
Sale 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)      Subscription Fee. On the Subscription Date, the
                  Company shall pay to the Investor the subscription fee amount
                  set forth on Schedule 10.1 (the "Subscription Fee").

                  (b)      Sale Fees. On each Closing Date, the Company shall
                  pay certain fees (the "Sale Fees") to the payee entities in
                  accordance with Schedule 10.1.

                  (c)      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"), which
                  Due

                                       29
<PAGE>   30

                  Diligence Costs shall not, when aggregated with all due
                  diligence costs incurred by the Investor in connection with
                  the Stock Purchase Agreement, dated March 5, 2001, relating to
                  the purchase by the Investor of the Preferred Stock, exceed
                  $5,000. The Company shall pay to the Investor the Company's
                  share of the Transaction Costs on the Subscription Date, to
                  the extent such share of the Transaction Costs can be
                  determined on the Subscription Date. The Company shall pay its
                  share of the remaining Transaction Costs to the Investor not
                  later than 10 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.     Reporting Entity for the Common Stock. The reporting
entity relied upon for the determination of the Bid Price or trading volume of
the Common Stock on the Principal Market on any given Trading Day for the
purposes of this Agreement shall be the Bloomberg L.P. The written mutual
consent of the Investor and the Company shall be required to employ any other
reporting entity.

         Section 10.3.     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 10.4.     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:

                                       30
<PAGE>   31

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

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:  Sara P. Hanks, Esq./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.

                                       31
<PAGE>   32

         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 Agreement, the Warrants 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, and of Section 7.3, shall survive the termination of this Agreement.

         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.

                                       32
<PAGE>   33

         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:  /s/ Mel Craw         /s/ Maxi Brezzi
                                 ---------------------------------------------
                                  Mel Craw              Maxi Brezzi
                                             Authorized Signatories

                              PRACTICEWORKS, INC.

                              By:          /s/ Richard E. Perlman
                                 ---------------------------------------------
                                  Richard E. Perlman
                                  Chairman

                                       1<PAGE>   1
                                                                EXHIBIT 10.18(B)

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
March 6, 2001, is made and entered into by and between PracticeWorks, Inc., a
Delaware corporation (the "Company"), and Crescent International Ltd., an entity
organized and existing under the laws of Bermuda (the "Investor").

         WHEREAS, the Company and the Investor have entered into that certain
Stock Purchase Agreement, dated as of March 6, 2001 (the "Stock Purchase
Agreement"), pursuant to which the Company will issue, from time to time, to the
Investor and the Investor shall purchase up to $35,000,000 worth of shares of
common stock, par value $0.01 per share, of the Company (the "Common Stock");

         WHEREAS, pursuant to the terms of and in partial consideration for the
Investor entering into the Stock Purchase Agreement, the Company may be required
to issue to the Investor an incentive warrant, exercisable from time to time
within five years following the date of issuance (the "Incentive Warrant") for
the purchase of a number of shares of Common Stock at a price to be determined
as described in such Incentive Warrant;

         WHEREAS, pursuant to the terms of and in partial consideration for the
Investor entering into the Stock Purchase Agreement, the Company may be required
to issue protective warrants to the Investor, each of which may become
exercisable from time to time as described in such warrants and in the Stock
Purchase Agreement (collectively, the "Protective Warrants" and together with
the Incentive Warrant, the "Warrants") for the purchase of a number of shares of
Common Stock and at a price to be determined as described in each such
Protective Warrant;

         WHEREAS, pursuant to the terms of, and in partial consideration for,
the Investor's agreement to enter into the Stock Purchase Agreement, the Company
has agreed to provide the Investor with certain registration rights as described
herein;

         NOW, THEREFORE, in consideration of the premises, the representations,
warranties, covenants and agreements contained herein, in the Warrants, and in
the Stock Purchase Agreement, 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 (capitalized terms used herein
and not defined herein shall have the respective meanings ascribed to them in
the Stock Purchase Agreement):

                                   ARTICLE I
                               REGISTRATION RIGHTS

         Section 1.1. REGISTRATION STATEMENTS.

         a.       Filing of Registration Statements. The Company shall register
for resale all Commitment Shares issued or issuable to the Investor pursuant to
the Stock Purchase Agreement

<PAGE>   2
and all Warrant Shares issued or issuable upon full exercise of the Warrants.
Subject to the terms and conditions of this Agreement, the Company shall effect
such registration in the manner provided below:

                  (i)      First Registration Statement. On or before the end of
                  the 20 calendar day period immediately following the First
                  Sale, the Company shall file with the SEC a registration
                  statement (the "First Registration Statement") on Form S-3 if
                  such form is then available to the Company and, if not, on
                  such form promulgated by the SEC for which the Company
                  qualifies, that counsel for the Company shall deem appropriate
                  and which form shall be available for the sale of all First
                  Sale Shares, the Incentive Warrant Shares and any Protective
                  Warrant Shares, in accordance with the intended method of
                  distribution of such securities. The aggregate number of
                  shares to be registered under the First Registration Statement
                  shall be equal to two hundred percent (200%) of the First Sale
                  Shares plus the number of Incentive Warrant Shares;

                  (ii)     Subsequent Registration Statements.

                           (1)      If the Company shall pursuant to any
                           Subsequent Sale require the Investor to purchase
                           shares of Common Stock not previously registered and
                           not covered by an effective Registration Statement
                           filed with the SEC and which is not a Failed
                           Registration Statement (as hereinafter defined) (an
                           "Unregistered Sale"), then on or before the end of a
                           20 calendar day period immediately following each
                           Closing Date relating to each such Subsequent Sale,
                           the Company shall file with the SEC a registration
                           statement (each a "Subsequent Registration Statement"
                           and together with the First Registration Statement
                           and any other registration statement covering
                           Registrable Securities or otherwise required to be
                           filed by the Company with the SEC as provided in this
                           Agreement, the "Registration Statements" or each, a
                           "Registration Statement") on Form S-3 if such form is
                           then available to the Company and, if not, on such
                           form promulgated by the SEC for which the Company
                           qualifies, that counsel for the Company shall deem
                           appropriate and which form shall be available for the
                           sale of the Subsequent Sale Shares purchased by the
                           Investor and any Warrant Shares that have not been
                           previously registered, in accordance with the
                           intended method of distribution of such securities.
                           The aggregate number of shares to be registered under
                           each Subsequent Registration Statement shall be equal
                           to two hundred percent (200%) of the number of
                           Subsequent Sale Shares purchased by the Investor on
                           the applicable Closing Date plus any Warrant Shares
                           not previously registered;

                           (2)      Prior to any Subsequent Sale which is not an
                           Unregistered Sale, the Company shall file with the
                           SEC a Subsequent Registration Statement on Form S-3
                           if such form is then available

                                       2
<PAGE>   3

                                    to the Company and, if not, on such form
                                    promulgated by the SEC for which the Company
                                    qualifies, that counsel for the Company
                                    shall deem appropriate and which form shall
                                    be available for the sale of the shares of
                                    Common Stock to be purchased by the Investor
                                    and any Warrant Shares which have not
                                    previously been registered, in accordance
                                    with the intended method of distribution of
                                    such securities. The aggregate number of
                                    shares to be registered under such
                                    Subsequent Registration Statement shall be
                                    determined by the Company.

         b.       Effectiveness of the Registration Statements. The following
conditions for effectiveness shall apply to the Registration Statements required
to be filed by the Company with the SEC pursuant to paragraph (a) above, without
limiting the Company's obligation to file such Registration Statements. The
Company shall use its best efforts: (i) to have the First Registration Statement
declared effective by the SEC in no event later than 120 calendar days after the
Closing Date relating to the First Sale and (ii) to have each Subsequent
Registration Statement declared effective by the SEC in no event later than 60
calendar days after the Closing Date relating to each Unregistered Sale and in
any event prior to any further Subsequent Sales. The Company shall ensure that
all Registration Statements and any amendments thereto remain in effect for a
period ending 180 days following the later of (1) the date of expiration of the
Incentive Warrant Exercise Period (as such term is defined in the Incentive
Warrant) if the Incentive Warrant has not been exercised in full and (2) the
date all Registrable Securities issued or issuable to the Investor pursuant to
the Stock Purchase 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; provided that
such period shall be extended one day for each day after the applicable
Effective Date that any Registration Statement covering Registrable Securities
is not effective during the period such Registration Statement is required to be
effective pursuant to this Agreement; and provided further that the Company
shall not be required to ensure that any Registration Statement covering
Registrable Securities remain in effect for such period if the shares registered
thereunder shall have become freely tradable pursuant to Rule 144(k) of the
Securities Act as such Rule may be amended from time to time, or have otherwise
been sold.

         c.       Failure to Obtain or Maintain Effectiveness of Registration
Statements.

                  (i)      In the event the Company fails for any reason to
obtain the effectiveness of any Registration Statement within the time periods
set forth in Section 1.1(b) (a "Tardy Registration Statement") or in the event
that the Company fails for any reason to maintain the effectiveness of any
Registration Statement (or the underlying prospectus) covering Registrable
Securities for the time period set forth in Section 1.1(b) (an "Ineffective
Registration Statement" together with a Tardy Registration Statement, a "Failed
Registration Statement") (unless the Registrable Securities covered by such
Registration Statement shall have become freely tradable pursuant to Rule 144(k)
of the Securities Act or have been otherwise sold), then, in either event an
amount equal to two percent (2.0%) of the aggregate Purchase Price of all of the
Registrable Securities covered by any such Failed Registration Statement then
held by the Investor for each calendar month and for each portion of a calendar
month, pro rata, (the "Failed Registration Statement Fee") during any period of
such ineffectiveness (an "Ineffective Period") shall become due and payable to
the Investor.

                                       3
<PAGE>   4
                  (ii)     If Failed Registration Statement Fees accrue with
respect to any Ineffective Registration Statement, payment of such Failed
Registration Statement Fees shall be made on the first Trading Day after the
earlier to occur of (1) the expiration of the applicable Ineffective Period and
(2) the last day of each calendar month during an Ineffective Period.

         d.       Failure to Register Sufficient Number of Shares. If the number
of Protective Warrant Shares, if any, included in the First Registration
Statement or each Subsequent Registration Statement is less than the total
number of Protective Warrant Shares issuable upon exercise at the Exercise Price
(as such term is defined in each Protective Warrant) (such deficit in the number
of shares is referred to herein as the "Deficit Shares"), then (i) the Company
shall immediately amend such Registration Statement (or file a new Registration
Statement) to cover the Deficit Shares (such amended or new Registration
Statement is referred to herein as a "Deficit Shares Registration Statement")
and (ii) the Company shall pay to the Investor in immediately available funds
into an account designated by the Investor an amount equal to 2.0% of the
product of (x) the number of Deficit Shares multiplied by (y) the Bid Price of
the Common Stock on the applicable Effective Date, for each calendar month and
for each portion of a calendar month, pro rata, during the period from the
Effective Date of the applicable Registration Statement to the Effective Date of
the applicable Deficit Shares Registration Statement.

         e.       Liquidated Damages. The Company and the Investor hereby
acknowledge and agree that the sums payable under subsections 1.1(c) and 1.1(d)
hereof shall constitute liquidated damages and not penalties. The parties
further acknowledge that (i) the amount of loss or damages likely to be incurred
is incapable or is difficult to estimate precisely, (ii) the amounts specified
in such subsections bear a reasonable proportion and are not plainly or grossly
disproportionate to the probable loss likely to be incurred in connection with
any failure by the Company to obtain or maintain the effectiveness of a
Registration Statement, (iii) one of the reasons for the Company and the
Investor reaching an agreement as to such amounts was the uncertainty and cost
of litigation regarding the question of actual damages, and (iv) the Company and
the Investor are sophisticated business parties and have been represented by
sophisticated and able legal and financial counsel and negotiated this Agreement
at arm's length.

                                   ARTICLE II
                             REGISTRATION PROCEDURES

         Section 2.1. FILINGS; INFORMATION. The Company will effect the
registration of the Registrable Securities in accordance with the intended
methods of disposition thereof as furnished to the Company by any proposed
seller of such Registrable Securities. Without limiting the foregoing, the
Company in each such case will do the following as expeditiously as possible,
but in no event later than the deadline, if any, prescribed therefor in this
Agreement:

         a.       The Company shall (i) prepare and file with the SEC the
Registration Statement(s) covering the shares as described in subsection 1.1(a)
above; (ii) use its best efforts to cause such filed Registration Statement(s)
to become and remain effective (pursuant to Rule 415 under the Securities Act or
otherwise) for the period prescribed by Section 1.1(b); (iii) prepare and file
with the SEC such amendments and supplements to each Registration Statement and
the prospectus used in connection therewith as may be necessary to keep each
Registration Statement effective for the time period prescribed by Section
1.1(b); and (iv) comply with the

                                       4
<PAGE>   5
provisions of the Securities Act with respect to the disposition of all
securities covered by each Registration Statement during such period in
accordance with the intended methods of disposition by the Investor set forth in
each Registration Statement.

         b.       The Company shall file all necessary amendments to each
Registration Statement in order to effectuate the purpose of this Agreement, the
Stock Purchase Agreement, and the Warrants.

         c.       Five Trading Days prior to filing each Registration Statement
or prospectus, or any amendment or supplement thereto (excluding amendments
deemed to result from the filing of documents incorporated by reference
therein), the Company shall deliver to the Investor and one firm of counsel
representing the Investor, in accordance with the notice provisions of Section
4.8, copies of such Registration Statement as proposed to be filed, together
with exhibits thereto, which documents will be subject to review and comment by
the Investor and such counsel, and thereafter deliver to the Investor and such
counsel, in accordance with the notice provisions of Section 4.8, such number of
copies of such Registration Statement, each amendment and supplement thereto (in
each case including all exhibits thereto), the prospectus included in such
Registration Statement (including each preliminary prospectus) and such other
documents or information as the Investor or counsel reasonably may request in
order to facilitate the disposition of the Registrable Securities.

         d.       The Company shall deliver, in accordance with the notice
provisions of Section 4.8, to each broker as directed by the Investor such
number of conformed copies of such Registration Statement and of each amendment
and supplement thereto (in each case including all exhibits and documents
incorporated by reference), such number of copies of the prospectus contained in
such Registration Statement (including each preliminary prospectus and any
summary prospectus) and any other prospectus filed under Rule 424 promulgated
under the Securities Act relating to the Registrable Securities, and such other
documents, as may be reasonably requested to facilitate the disposition of the
Registrable Securities.

         e.       After the filing of each Registration Statement, the Company
shall promptly notify the Investor of any stop order issued or threatened by the
SEC in connection therewith and take all commercially reasonable actions
required to prevent the entry of such stop order or to remove it if entered.

         f.       The Company shall use its best efforts to (i) register or
qualify the Registrable Securities under such other securities or blue sky laws
of such jurisdictions in the United States as the Investor reasonably (in light
of its intended plan of distribution) may request, and (ii) cause the
Registrable Securities to be registered with or approved by such other
governmental agencies or authorities in the United States as may be necessary by
virtue of the business and operations of the Company and do any and all other
acts and things that may be reasonably necessary or advisable to enable the
Investor to consummate the disposition of the Registrable Securities; provided,
however, that the Company will not be required to qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this paragraph (f), subject itself to taxation in any such jurisdiction,
or consent or subject itself to general service of process in any such
jurisdiction.

         g.       The Company shall immediately notify the Investor, but in no
event later than two (2) business days by facsimile and by overnight courier,
upon the occurrence of any of the

                                       5
<PAGE>   6
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 that a
post-effective amendment to the Registration Statement would be appropriate, and
the Company promptly shall make available to the Investor any such supplement or
amendment to the related prospectus.

         h.       The Company shall enter into customary agreements and take
such other actions as are reasonably required in order to expedite or facilitate
the disposition of such Registrable Securities (whereupon the Investor, at its
option, may require that any or all of the representations, warranties and
covenants of the Company also be made to and for the benefit of the Investor).

         i.       The Company shall make available to the Investor (and will
deliver to Investor's counsel), subject to restrictions imposed by the United
States government or any agency or instrumentality thereof, copies of all
correspondence between the SEC and the Company, concerning any Registration
Statement, and also will make available for inspection by the Investor and any
attorney, accountant or other professional retained by the Investor
(collectively, the "Inspectors"), all financial and other records, pertinent
corporate documents and properties of the Company (collectively, the "Records")
as shall be reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company's officers and employees to supply all
information reasonably requested by any Inspectors in connection with any
Registration Statement. Records that the Company determines, in good faith, to
be confidential and that it notifies the Inspectors are confidential shall not
be disclosed by the Inspectors unless (i) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in any Registration
Statement or (ii) the disclosure or release of such Records is requested or
required pursuant to oral questions, interrogatories, requests for information
or documents or a subpoena or other order from a court of competent jurisdiction
or other process; provided, however, that prior to any disclosure or release
pursuant to clause (ii), the Inspectors shall provide the Company with prompt
notice of any such request or requirement so that the Company may seek an
appropriate protective order or waive such Inspectors'

                                       6
<PAGE>   7
obligation not to disclose such Records; and, provided, further, that if failing
the entry of a protective order or the waiver by the Company permitting the
disclosure or release of such Records, the Inspectors, upon advice of counsel,
are compelled to disclose such Records, the Inspectors may disclose that portion
of the Records that counsel has advised the Inspectors that the Inspectors are
compelled to disclose. The Investor agrees that information obtained by it
solely as a result of such inspections (not including any information obtained
from a third party who, insofar as is known to the Investor after reasonable
inquiry, is not prohibited from providing such information by a contractual,
legal or fiduciary obligation to the Company) shall be deemed confidential and,
if material non-public information, the Investor shall not while in possession
of such information engage in market transactions in the securities of the
Company or its Affiliates unless and until such information is made generally
available to the public. The Investor further agrees that, upon learning that
disclosure of such Records is sought in a court of competent jurisdiction, it
will give notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of the Records deemed
confidential.

         j.       To the extent required by law or reasonably necessary to
effect a sale of Registrable Securities in accordance with prevailing business
practices at the time of any sale of Registrable Securities pursuant to a
Registration Statement, the Company shall deliver to the Investor a signed
counterpart, addressed to the Investor, of (1) an opinion or opinions of counsel
to the Company and (2) a comfort letter or comfort letters from the Company's
independent public accountants, each in customary form and covering such matters
of the type customarily covered by opinions of comfort letters, as the case may
be, as the Investor therefor reasonably requests.

         k.       The Company otherwise shall comply with all applicable rules
and regulations of the SEC, including, without limitation, compliance with
applicable reporting requirements under the Exchange Act.

         l.       The Company may require the Investor to furnish promptly in
writing to the Company such information as may be legally required in connection
with any registration including, without limitation, all such information as may
be requested by the SEC or the National Association of Securities Dealers, Inc.
(the "NASD"). The Investor agrees to provide such information requested in
connection with any registration within ten Trading Days after receiving such
written request and the Company shall not be responsible for any delays in
obtaining or maintaining the effectiveness of a Registration Statement caused by
the Investor's failure to timely provide such information. Each seller of
Registrable Securities shall notify the Company as promptly as practicable of
any inaccuracy or change in information previously furnished by such seller to
the Company or of the occurrence of any event, in either case as a result of
which any prospectus relating to the Registrable Securities contains or would
contain an untrue statement of a material fact regarding such seller or its
intended method of disposition of such Registrable Securities or omits to state
any material fact regarding such seller or such seller's intended method of
disposition of such Registrable Securities 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, and promptly furnish to the Company
any additional information required to correct and update any previously
furnished information or required so that such prospectus shall not contain,
with respect to such seller or the disposition of such Registrable Securities,
an untrue statement of a material fact or omit to state a material fact

                                       7
<PAGE>   8
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.

         Section 2.2. REGISTRATION EXPENSES.

         a.       In connection with each Registration Statement, the
Company shall pay all registration expenses incurred in connection with the
registration thereunder (the "Registration Expenses"), including, without
limitation: (i) all registration, filing, securities exchange listing and fees
required by NASD, (ii) all registration, filing, qualification and other fees
and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Registrable Securities required hereby), (iii) all of the
Company's word processing, duplicating, printing, messenger and delivery
expenses, (iv) the Company's internal expenses (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), (v) the fees and expenses incurred by the Company in
connection with the listing of the Registrable Securities, (vi) reasonable fees
and disbursements of counsel for the Company and, subject to paragraph (b)
below, the Investor and customary fees and expenses for independent certified
public accountants retained by the Company (including the expenses of any
special audits or comfort letters or costs associated with the delivery by
independent certified public accountants of such special audit(s) or comfort
letter(s) requested pursuant to Section 2.1(j) hereof), (vii) the fees and
expenses of any special experts retained by the Company in connection with such
registration, (viii) premiums and other costs of policies of insurance purchased
at the discretion of the Company against liabilities arising out of any public
offering of the Registrable Securities being registered, and (ix) any fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities, but excluding underwriting fees, discounts, transfer taxes or
commissions, if any, attributable to the sale of Registrable Securities, which
shall be payable by each holder of Registrable Securities pro rata on the basis
of the number of Registrable Securities of each such holder that are included in
a registration under this Agreement.

         b.       In addition, the Company shall pay all reasonable
fees and expenses of counsel for the Investor incurred in connection with the
review, and assistance in preparation, of the Registration Statement, unless a
greater amount is required due to the nature of the review performed by
Investor's counsel or the extent of assistance provided by Investor's counsel
(an estimate of such greater fees and expenses of such firm of counsel to the
Investor shall be provided to the Company prior to the undertaking of such
counsel's additional review or assistance), provided that such fees shall be
applied toward the $50,000 maximum set forth in Section 10.1(b) of the Stock
Purchase Agreement.

         Section 2.3. BLACKOUT PERIOD. Upon receipt of a written notice from the
Company stating that an event of the kind described in Section 2.1(g)(iv) has
occurred and the number of calendar days following the date of the notice on or
before which the Company shall deliver a supplemented or amended prospectus
contemplated by Section 2.1(g)(iv) (such number of days set forth in such
notice, the "Delivery Period"), the Investor shall discontinue the Investor's
offer of the Registrable Securities pursuant to each Registration Statement
relating to such Registrable Securities until the Investor shall have received
copies of the supplemented or amended prospectus contemplated by Section
2.1(g)(iv) (the number of calendar days from and including the date of delivery
of such notice until delivery of such prospectuses, the "Blackout Period") and,
if so directed by the Company, will deliver to the Company (at the Company's

                                       8
<PAGE>   9
expense) all copies other than permanent file copies then in the Investor's
possession of the prospectus relating to such Registrable Securities at the time
of receipt of such notice. The Company may not deliver more than two such
notices during any twelve calendar month period. The Company shall set the
length of each Delivery Period such that the following sum shall not exceed 120
calendar days: (x) the number of days in all prior Blackout Periods in the
twelve calendar month period ending on the last day of such proposed Delivery
Period, plus (y) the number of days in such proposed Delivery Period. If the
Company shall fail to deliver a supplemented or amended prospectus contemplated
by Section 2.1(g)(iv) before the expiration of the applicable Delivery Period,
the Company shall pay to the Investor an amount equal to two percent (2.0%) per
calendar month (pro rated for portions thereof) of the aggregate purchase price
of all Registrable Securities beginning on the first day following expiration of
the applicable Delivery Period and ending on the expiration date of the
applicable Blackout Period (the "Blackout Fee"). The Company shall pay Blackout
Fees on the first Trading Day after the earlier to occur of (1) the expiration
of the applicable Blackout Period and (2) the last day of each calendar month
during a Blackout Period. In the event that the Investor uses a prospectus in
connection with the offering and sale of any of the Registrable Securities
covered by such prospectus, the Investor will use only the latest version of
such prospectus provided by the Company to the Investor.

                                  ARTICLE III
                        INDEMNIFICATION AND CONTRIBUTION

         Section 3.1.      INDEMNIFICATION

         a.       The Company agrees to indemnify and hold harmless the
Investor, 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 the partners, Affiliates, officers, directors,
employees and duly authorized agents of such controlling Person or entity
(collectively, the "Investor Controlling Persons"), from and against any and all
losses, claims, damages, liabilities, costs and expenses (including, without
limitation, any and all reasonable attorneys' fees and disbursements and costs
and expenses of investigating and defending any such claim and any and all
amounts paid in settlement of, any action, suit or proceeding between any of the
indemnified parties and any indemnifying parties or between any indemnified
party and any third party, or otherwise, or any claim asserted) (collectively,
"Damages"), joint or several, and any action or proceeding in respect thereof to
which the Investor, its partners, Affiliates, officers, directors, employees and
duly authorized agents, and any Investor Controlling Person, becomes subject to
under the Securities Act, the Exchange Act or other federal or state statutory
law or regulation, at common law or otherwise, as and when incurred, insofar as
such Damages (or actions or proceedings in respect thereof) (i) arise out of, or
are based upon, any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement, or in any preliminary prospectus,
final prospectus, summary prospectus, documents filed under the Exchange Act and
deemed to be incorporated by reference into any Registration Statement,
application or other document executed by or on behalf of the Company or based
on written information furnished by or on behalf of the Company filed in any
jurisdiction in order to qualify the Registrable Securities under the securities
or blue sky laws thereof or filed with the SEC, amendment or

                                       9
<PAGE>   10
supplement relating to the Registrable Securities or (ii) arise out of, or are
based upon, any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse the Investor, its partners, Affiliates,
officers, directors, employees and duly authorized agents, and each such
Investor Controlling Person, for any legal and other expenses reasonably
incurred by the Investor, its partners, Affiliates, officers, directors,
employees and duly authorized agents, or any such Investor Controlling Person,
as incurred, in investigating or defending or preparing to defend against any
such Damages or actions or proceedings; provided, however, that the Company
shall not be liable to the extent that any such Damages arise out of the
Investor's failure to send or give a copy of the final prospectus or supplement
at or prior to the written confirmation of the sale of Registrable Securities to
the persons asserting an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale
of Registrable Securities to such person if such statement or omission was
corrected in such final prospectus or supplement, and provided that the Investor
had been obligated under applicable law to deliver such final prospectus or
supplement to such person; provided, further, that the Company shall not be
liable to the extent that any such Damages arise out of or are based upon an
untrue statement or alleged untrue statement or omission or alleged omission
made in such Registration Statement, or any such preliminary prospectus, final
prospectus, summary prospectus, amendment or supplement in reliance upon and in
conformity with written information furnished to the Company by the Investor or
any other person who participates as a seller or as an underwriter in the
offering or sale of such securities, in either case, in any questionnaire or
other request by the Company, or otherwise specifically stating that it is for
use in the preparation thereof, and provided that such written information
furnished to the Company by the Investor, or any other person who participates
as a seller or as an underwriter in the offering or sale of such securities, is
not materially altered by the Company.

                  b.       The Investor agrees to indemnify and hold harmless
the Company, its Affiliates, officers, directors, employees, and duly authorized
agents, and each Person or entity, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act,
together with the Affiliates, officers, directors, employees and duly authorized
agents of such controlling Person or entity (collectively, the "Company
Controlling Persons") from and against any Damages, joint or several, and any
action in respect thereof to which the Company, its Affiliates, officers,
directors, employees, and duly authorized agents, and any Company Controlling
Person becomes subject to under the Securities Act, the Exchange Act or other
federal or state statutory law or regulation, at common law or otherwise, as and
when incurred, insofar as such Damages (or actions or proceedings in respect
thereof) arise out of an untrue statement or alleged untrue statement or
omission or alleged omission made in a Registration Statement, or any
preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement in reliance upon and in conformity with written information furnished
to the Company by the Investor in any questionnaire or other request by the
Company, or otherwise specifically stating that it is for use in the preparation
thereof; provided, however, that such written information furnished to the
Company by the Investor is not materially altered by the Company.
Notwithstanding the foregoing, the Investor shall in no event be required to
indemnify the Company for any amount in excess of the amount by which the total
price at which the Registrable Securities of the Investor were sold to the
public (less underwriting discounts and commissions) exceeds the amount actually
paid by the Investor under the Stock Purchase Agreement for such Registrable
Securities sold to the public.

                                       10
<PAGE>   11

         c.       All claims for indemnification shall be asserted and
resolved as set forth in Section 9.2 of the Stock Purchase Agreement, except
that for the purposes of claims for indemnification pursuant to this Agreement
the last sentence of Section 9.2(a)(i) of the Stock Purchase Agreement shall
read as follows: "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 of this
Agreement and contribution under Section 3.4 of the Registration Rights
Agreement with respect to such Third Party Claim."

         Section 3.2. ARBITRATION. Any controversy, claim or dispute arising out
of or in connection with this Agreement, including any question regarding its
existence, validity, interpretation, breach, or termination, shall be referred
to and finally resolved in accordance with Section 9.3 of the Stock Purchase
Agreement.

         Section 3.3. OTHER INDEMNIFICATION. Indemnification similar to that
specified in the preceding paragraphs of this Article III (with appropriate
modifications) shall be given by the Company with respect to any required
registration or other qualification of securities under any federal or state law
or regulation of any governmental authority other than the Securities Act. The
provisions of this Article III shall be in addition to any other rights to
indemnification, contribution or other remedies which an Indemnified Party may
have pursuant to law, equity, contract or otherwise.

         Section 3.4. CONTRIBUTION. If the indemnification and reimbursement
obligations provided for in any section of this Article III is unavailable or
insufficient to hold harmless the Indemnified Parties in respect of any Damages
referred to herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Damages as between the Company on the one
hand and the Investor or seller on the other, in such proportion as is
appropriate to reflect the relative fault of the Company and of the Investor or
seller in connection with such statements or omissions, as well as other
equitable considerations. The relative fault of the Company on the one hand and
of the Investor or seller on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by such party, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

         The Company and the Investor agree that it would not be just and
equitable if contribution pursuant to this Section 3.4 were determined by pro
rata allocation or by any other method of allocation that does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the
Damages referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 3.4, the Investor or seller shall in no event be required to contribute
any amount in excess of the amount by which the total price at which the
Registrable Securities of the Investor were sold to the public (less
underwriting discounts and commissions) and less the amount actually paid by the
Investor under the Stock Purchase Agreement for such Registrable Securities sold
to the public exceeds the amount of any damages which the Investor has otherwise
been required to pay by reason of such untrue or

                                       11
<PAGE>   12
alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

                                   ARTICLE IV
                                  MISCELLANEOUS

         Section 4.1. OUTSTANDING REGISTRATION RIGHTS. The Company represents
and warrants to the Investor that, except as set forth on Schedule 4.1 included
in the Company Disclosure Letter attached hereto, there is not in effect on the
date hereof any agreement by the Company pursuant to which any holders of
securities of the Company have a right to cause the Company to register or
qualify such securities under the Securities Act or any securities or blue sky
laws of any jurisdiction. The Company hereby covenants and agrees that until 60
calendar days after the Registration Statement has been declared effective by
the SEC it will not, without the prior written consent of the Investor, enter
into or amend any agreement by the Company pursuant to which any holders of
securities of the Company have a right to cause the Company to register or
qualify securities under the Securities Act or any securities or blue sky laws
of any jurisdiction; provided, however, that the foregoing shall not apply to
(i) to a Third Party Sale (as such term is defined in the Stock Purchase
Agreement) for which the Investor has elected not to exercise its right of first
refusal pursuant to Section 6.12 of the Stock Purchase Agreement or (ii) in
connection with an acquisition of another entity or assets related to the
Company's current or future business.

         Section 4.2. TERM. The registration rights provided to the holders of
Registrable Securities hereunder shall terminate at such time as all Registrable
Securities have been issued and have ceased to be Registrable Securities.
Notwithstanding the foregoing, paragraph (c) of Section 1.1, Article III,
Section 4.8, and Section 4.9 shall survive the termination of this Agreement.

         Section 4.3. RULE 144. If the Company is required to file reports under
the Exchange Act, the Company will file in a timely manner, information,
documents and reports in compliance with the Securities Act and the Exchange Act
and, at its expense, promptly will take such further action as holders of
Registrable Securities reasonably may request to enable such holders of
Registrable Securities to sell Registrable Securities without registration under
the Securities Act within the limitation of the exemptions provided by (a) Rule
144 under the Securities Act ("Rule 144"), as such Rule may be amended from time
to time, or (b) any similar rule or regulation hereafter adopted by the SEC. If
at any time the Company is not required to file such reports, it will, at its
expense, forthwith upon the written request of any holder of Registrable
Securities who intends to make a sale under Rule 144, make available adequate
current public information with respect to the Company within the meaning of
paragraph (c)(2) of Rule 144 or such other information as necessary to permit
sales pursuant to Rule 144. Upon the request of the Investor, the Company will
deliver to the Investor a written statement, signed by the Company's principal
financial officer, as to whether it has complied with such requirements. This
Section 4.3 shall terminate at the same time as the registration rights as
provided in Section 4.2.

                                       12
<PAGE>   13

         Section 4.4. CERTIFICATE. The Company will, at its expense, promptly
upon the request of any holder of Registrable Securities, deliver to such holder
a certificate, signed by the Company's principal financial officer, stating (a)
the Company's name, address and telephone number (including area code), (b) the
Company's Internal Revenue Service identification number, (c) the Company's SEC
file number, (d) the number of shares of each class of stock outstanding as
shown by the most recent report or statement published by the Company, and (e)
whether the Company has filed the reports required to be filed under the
Exchange Act for a period of at least ninety (90) days prior to the date of such
certificate and in addition has filed the most recent annual report required to
be filed thereunder.

         Section 4.5. AMENDMENT AND MODIFICATION. Any provision of this
Agreement may be waived, provided that such waiver is set forth in a writing
executed by both parties to this Agreement. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of the
holders of a majority of the then outstanding Registrable Securities.
Notwithstanding the foregoing, the waiver of any provision hereof with respect
to a matter that relates exclusively to the rights of holders of Registrable
Securities whose securities are being sold pursuant to a Registration Statement
and does not directly or indirectly affect the rights of other holders of
Registrable Securities may be given by holders of at least a majority of the
Registrable Securities being sold by such holders; provided that the provisions
of this sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence. No course
of dealing between or among any Person having any interest in this Agreement
will be deemed effective to modify, amend or discharge any part of this
Agreement or any rights or obligations of any person under or by reason of this
Agreement.

         Section 4.6. SUCCESSORS AND ASSIGNS; ENTIRE AGREEMENT. This Agreement
and all of the provisions hereof shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. The Investor
may assign its rights under this Agreement to any subsequent holder the
Registrable Securities, provided that the Company shall have the right to
require any holder of Registrable Securities to execute a counterpart of this
Agreement and agree to be bound by the provisions of this Agreement as a
condition to such holder's claim to any rights hereunder. This Agreement,
together with the Stock Purchase Agreement, the Warrants and the exhibits and
schedules to such agreements together set forth the entire agreement and
understanding between the parties as to the subject matter hereof and merges and
supersedes all prior discussions, agreements and understandings of any and every
nature among them.

         Section 4.7. SEVERABILITY. In the event that any provision of this
Agreement or the application of any provision hereof is declared to be illegal,
invalid or otherwise unenforceable by a court of competent jurisdiction, the
remainder of this Agreement shall not be affected except to the extent necessary
to delete such illegal, invalid or unenforceable provision unless that provision
held invalid shall substantially impair the benefits of the remaining portions
of this Agreement.

         Section 4.8. NOTICES. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and shall be (i) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (ii) delivered by

                                       13
<PAGE>   14
reputable air courier service with charges prepaid, or (iii) 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. Any
notice or other communication required or permitted to be given hereunder shall
be deemed effective (a) upon hand delivery or delivery by facsimile, with
accurate confirmation generated by the transmitting facsimile machine, 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 and facsimile numbers for such communications
shall be:

         If to the Company:

                            PracticeWorks, Inc.
                            1765 The Exchange, Suite 300
                            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

         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:  Sara P. Hanks, Esq./Earl S. Zimmerman,
                                          Esq.
                            Telephone:  (212)  878-8000
                            Facsimile:  (212)  878-8375

                                       14
<PAGE>   15

     Either party hereto may from time to time change its address or facsimile
     number for notices under this Section 4.8 by giving at least 10 days' prior
     written notice of such changed address or facsimile number to the other
     party hereto.

         Section 4.9.  GOVERNING LAW. This Agreement shall be construed under
the laws of the State of New York.

         Section 4.10. HEADINGS. The headings in this Agreement are for
convenience of reference only and shall not constitute a part of this Agreement,
nor shall they affect their meaning, construction or effect.

         Section 4.11. COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original instrument and all
of which together shall constitute one and the same instrument.

         Section 4.12. FURTHER ASSURANCES. Each party shall cooperate and take
such action as may be reasonably requested by another party in order to carry
out the provisions and purposes of this Agreement and the transactions
contemplated hereby.

         Section 4.13. ABSENCE OF PRESUMPTION. This Agreement shall be construed
without regard to any presumption or rule requiring construction or
interpretation against the party drafting or causing any instrument to be
drafted.

         Section 4.14. REMEDIES. In the event of a breach or a threatened breach
by any party to this Agreement of its obligations under this Agreement, any
party injured or to be injured by such breach will be entitled to specific
performance of its rights under this Agreement or to injunctive relief, in
addition to being entitled to exercise all rights provided in this Agreement and
granted by law. The parties agree that the provisions of this Agreement shall be
specifically enforceable, it being agreed by the parties that the remedy at law,
including monetary damages, for breach of any such provision may be inadequate
compensation for any loss.

                                       15
<PAGE>   16
                  IN WITNESS WHEREOF, the parties hereto have caused this
Registration Rights Agreement to be executed by the undersigned, thereunto duly
authorized, as of the date first set forth above.

                              CRESCENT INTERNATIONAL LTD.

                              By: /s/ Mel Craw           /s/ Maxi Brezzi
                                 ----------------------------------------------
                                   Mel Craw                  Maxi Brezzi
                                            Authorized Signatories

                              PRACTICEWORKS, INC.

                              By:  /s/ Richard E. Perlman
                                  ---------------------------------------------
                                       Richard E. Perlman
                                            Chairman

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