Document:

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                                                                   EXHIBIT 10.16

                            STOCK PURCHASE AGREEMENT

                                 BY AND BETWEEN

                           CRESCENT INTERNATIONAL LTD.

                                       AND

                               PRACTICEWORKS, INC.

                            DATED AS OF MARCH 5, 2001

         This STOCK PURCHASE AGREEMENT is entered into as of the 5th 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,
and the Investor shall purchase, up to $5,000,000 worth of the Preferred Stock
(as defined below); and

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

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

                                   ARTICLE I

                               CERTAIN DEFINITIONS

         Section 1.1. "Affiliate" shall mean any Person that, directly or
indirectly through one or more intermediaries, controls or is controlled by, or
is under direct or indirect common control with any other Person. For the
purposes of this definition, "control," when used with respect to any Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract
or otherwise, and the term "controls" and "controlled" have meanings correlative
to the foregoing.
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         Section 1.2. "Capital Shares" shall mean the Common Stock and
Preferred Stock and any shares of any other class of common stock or preferred
stock whether now or hereafter authorized, having the right to participate in
the distribution of dividends (as and when declared) or assets (upon liquidation
of the Company).

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

         Section 1.4. "Closing" shall mean the closing of the purchase and sale
of the Preferred Stock pursuant to Section 2.1 hereof and the issuance of the
Warrant pursuant to Section 2.2 hereof.

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

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

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

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

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

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

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

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

         Section 1.13. "Material Adverse Effect" shall mean any effect on the
business, operations, properties, or financial condition of the Company that is
material and adverse to the

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Company or to the Company and such other entities controlling or controlled by
the Company, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise interfere with the ability of the Company to
enter into and perform its obligations under any of this Agreement and the
Registration Rights Agreement.

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

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

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

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

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

         Section 1.19. "Registrable Securities" shall mean (i) the Conversion
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, (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 1.20. "Registration Rights Agreement" shall mean the
registration rights agreement by and between the Company and the Investor, in
the form of Exhibit A hereto.

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

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

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

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

         Section 1.25. "SEC Documents" shall mean all filings made 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.

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

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

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

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

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

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

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

         Section 1.33. "Warrant" shall mean the Warrant in the form of Exhibit
B hereto issued by the Company to the Investor pursuant to Section 2.2 of this
Agreement.

         Section 1.34. "Warrant Shares" shall mean all shares of Common Stock
issued or issuable pursuant to exercise of the Warrant.

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                                   ARTICLE II

            PURCHASE AND SALE OF PREFERRED STOCK; ISSUANCE OF WARRANT

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

         Section 2.2.  Issuance of Warrant. On the Closing Date, the Company
shall issue and deliver to the Investor the Warrant.

         Section 2.3. Twenty Percent Limitation. Unless the Company obtains the
requisite approval of its shareholders in accordance with the corporate laws of
Delaware and the applicable rules of the Principal Market, no more than 19.9% of
the Outstanding shares of Common Stock may be issued and sold pursuant to the
conversion of the Preferred Stock or the exercise of the Warrant, provided, that
the Investor has the right to require the Company to seek such shareholder
approval, and upon the written request of the Investor the Company shall as soon
as practicable after such request prepare and file with the SEC a proxy
statement to be distributed to shareholders of the Company for the purpose of
soliciting proxies for use at an annual or special meeting of shareholders of
the Company at which such shareholder approval is sought and in which proxy
statement the Company will recommend to its shareholders the foregoing approval.

                                  ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

The Investor represents and warrants to the Company that:

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

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

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Preferred Stock. The Investor acknowledges that an investment in the Common
Stock and the Preferred Stock is speculative and involves a high degree of risk.

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

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

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

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

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

         Section 3.8. Manner of Sale. At no time was Investor presented with or
solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of 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, the Warrant and the Preferred Stock to be acquired by
Investor have not been registered under the federal securities laws or any
applicable state securities laws in reliance

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

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

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

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

         Section 4.2. Authority. (i) The Company has the requisite corporate
power and authority to enter into and perform its obligations under this
Agreement, the Registration Rights Agreement and the Warrant and to issue the
Warrant Shares, the Conversion Shares and the Preferred Stock; (ii) the
execution and delivery of this Agreement and the Registration Rights Agreement,
and the execution, issuance and delivery of the Warrant, 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 Warrant has been duly executed,
issued and delivered, by the Company and constitute valid and binding
obligations of the Company enforceable against the Company in accordance with
their respective terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, or similar laws relating to, or affecting
generally the enforcement of, creditors' rights and remedies or by other
equitable principles of general application.

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

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

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

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

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

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

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

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

         Section 4.8. SEC Documents. The Company has delivered or made available
to the Investor true and complete copies of the SEC Documents (including,
without limitation, proxy information and solicitation materials). The Company
has not provided to the Investor any information that, according to applicable
law, rule or regulation, should have been disclosed publicly prior to the date
hereof by the Company, but which has not been so disclosed. As of 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 Warrant, the Warrant Shares, the
Preferred Stock and the Conversion Shares in accordance with the terms and on
the basis of the representations and warranties set forth in

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

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

         Section 4.11. No Conflicts. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including without limitation the issuance of
the Warrant Shares, the Preferred Stock and the Conversion Shares do not and
will not (i) result in a violation of the Certificate or By-Laws or (ii)
conflict with, or constitute a material default (or an event that with notice or
lapse of time or both would become a material default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
material agreement, indenture, instrument or any "lock-up" or similar provision
of any underwriting or similar agreement to which the Company is a party, or
(iii) result in a violation of any federal, state, local or foreign law, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or
asset of the Company is bound or affected nor is the Company otherwise in
violation of, conflict with or in default under any of the foregoing (except for
such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not, individually or in the aggregate, have a Material
Adverse Effect); provided, however, that for purposes of the Company's
representations and warranties as to violations of foreign law, rule or
regulation referenced in clause (iii), such representations and warranties are
made only to the best of the Company's knowledge insofar as the execution,
delivery and performance of this Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby are or may be affected by
the status of the Investor under or

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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 Warrant
Shares, the Preferred Stock or the Conversion Shares in accordance with the
terms hereof (other than any SEC, NASD or state securities filings that may be
required to be made by the Company subsequent to the Closing, any registration
statement that may be filed pursuant hereto, and any shareholder approval
required by the rules applicable to companies whose common stock trades on the
Principal Market); provided that, for purposes of the representation made in
this sentence, the Company is assuming and relying upon the accuracy of the
relevant representations and agreements of the Investor herein. Except as set
forth in the Company Disclosure Schedule, the Company has not entered into any
agreements, arrangements or understandings with any Person other than the
Investor that would in any way restrict or limit the ability of the Company to
(i) issue the Warrant Shares, the Preferred Stock or the Conversion Shares or
(ii) redeem the Preferred Stock in accordance with the Certificate of
Designations.

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

         Section 4.13. No Undisclosed Liabilities. Except as set forth in the
SEC Documents, the Company has no liabilities or obligations that are material,
individually or in the aggregate, other than those incurred in the ordinary
course of the Company's businesses since December 31, 1999 and which,
individually or in the aggregate, do not or would not have a Material Adverse
Effect on the Company.

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

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

         Section 4.16. Litigation and Other Proceedings. Except as set forth in
the SEC Documents, there are no lawsuits or proceedings pending or to the best
knowledge of the Company threatened, against the Company, nor has the Company
received any written or oral notice of any such action, suit, proceeding or
investigation, which have had or might have a Material Adverse Effect. Except as
set forth in the SEC Documents, no judgment, order, writ,

                                       11
<PAGE>   12
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 Warrant, the Warrant Shares, the
Preferred Stock or the Conversion Shares in connection with the transactions
contemplated by this Agreement, have not made, at any time, any communication in
connection with the offer or sale of the same which contained any untrue
statement of a material fact or omitted to state any material fact necessary in
order to make the statements, in the light of the circumstances under which they
were made, not misleading.

         Section 4.18. Material Non-Public Information. The Company is not in
possession of, nor has the Company or its agents disclosed to the Investor, any
material non-public information that (i) if disclosed, would, or could
reasonably be expected to have, 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 shares of the Company's Preferred Stock, the Warrant Shares and the
Conversion Shares will be in compliance with all applicable state and federal
securities laws, rules and regulations and the rules and regulations of the
Principal Market on which the Company's Common Stock is listed.

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

                                   ARTICLE VI

                            COVENANTS OF THE COMPANY

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

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

                                       12
<PAGE>   13
         Section 6.3. Listing of Common Stock. The Company shall use its best
efforts to maintain the listing or quotation of the Common Stock on a Principal
Market, and as soon as practicable will cause the Warrant Shares and the
Conversion Shares to be listed on the Principal Market. The Company further
shall, if the Company applies to have the Common Stock traded on any other
Principal Market, include in such application the Warrant Shares and the
Conversion Shares, and shall take such other action as is necessary or desirable
in the opinion of the Investor to cause the Common Stock to be listed on such
other Principal Market as promptly as possible. The Company shall use its best
efforts to continue the listing and trading of its Common Stock on the Principal
Market (including, without limitation, maintaining sufficient net tangible
assets) and will comply in all respects with the Company's reporting, filing and
other obligations under the bylaws or rules of the NASD and the Principal
Market.

         Section 6.4. Exchange Act Registration. The Company shall comply with
all applicable requirements set forth in the Registration Rights Agreement,
including without limitation its obligation to file the Registration Statement
with the SEC within the time period set forth in the Registration Rights
Agreement. After the Registration Statement becomes effective, the Company shall
use its best efforts to cause the Common Stock covered by such Registration
Statement to continue to be registered under Section 12(g) or 12(b) of the
Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, and will use its best efforts not to take
any action or file any document (whether or not permitted by the Exchange Act or
the rules thereunder) to terminate or suspend such registration or to terminate
or suspend its reporting and filing obligations under the Exchange Act.

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

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

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

         Section 6.8. Notice of Certain Events Affecting Registration. The
Company shall immediately notify the Investor, but in no event later than two
business days by facsimile and by overnight courier, upon the occurrence of any
of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of Registrable Securities: (i) receipt of
any request for additional information by the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or related
prospectus; (ii) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of a
Registration Statement or the initiation of any proceedings for that purpose;
(iii) receipt of

                                       13
<PAGE>   14
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.

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

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

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

         Section 6.12. No Similar Arrangement; Right of First Refusal. The
Company shall refrain from entering into any other agreements, arrangements or
understandings granting to the Company the right to sell shares of its
securities to one or more investors, other than a Strategic Investor, in
placements exempt from registration under the Securities Act until 180 calendar
days after the Registration Statement has been declared effective by the SEC
(the "Exclusivity Period"). If the Company, for the purpose of obtaining any
additional financing, wishes to sell shares of its securities in placements
exempt from registration under the Securities Act during the Exclusivity Period
(a "Sale") to a party other than a Strategic Investor and other than the
Investor (the "Third Party"), the Company shall first offer (the "Offer") to the
Investor, in writing, the right to purchase such shares (the "Offered Shares")
at the bona fide price offered by the Third Party (the "Offer Price"). The Offer
shall grant the Investor the right during the five Trading Days immediately
following the date of the Offer to elect to purchase any or all of the Offered
Shares. The Company, in connection with such a Sale, shall refrain from
circumventing or

                                       14
<PAGE>   15
attempting to circumvent the Investor's right of first refusal by way of making
such a Sale to any of its Affiliates without first making an Offer to the
Investor. If the Investor fails to exercise its right to purchase any or all of
the Offered Shares, then during the 60 calendar days immediately following the
expiration of such right, the Company shall be free to sell any or all of the
Offered Shares to a purchaser for a purchase price not lower than the Offer
Price payable on terms and conditions that are not more favorable to such
purchaser than those contained in the Offer.

         Section 6.13. Third Party Agreements. The Company shall not, without
the prior written consent of the Investor, enter into any agreements,
arrangements or understandings, or amend any existing agreements, arrangements
or understandings, with any Person other than the Investor that would in any way
restrict or limit the ability of the Company to (i) issue the Preferred Stock,
the Conversion Shares or the Warrant Shares or (ii) redeem the Preferred Stock
in accordance with the Certificate of Designations.

         Section 6.14. 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 also will
obtain the other party's prior approval of any press release to be issued
announcing the consummation of the transactions contemplated by this Agreement
or in any way referring to the other party or affiliates of the other party. If
either party is unable to obtain the approval of its public report, statement,
or press or other release from the other party and such report, statement, or
press or other release is, in the advice of legal counsel to such party,
required by applicable law or by any rule or regulation of the Principal Market,
in order to discharge such party's disclosure obligations, then such party may
make or issue the legally required report, statement, or press or other release
and promptly furnish the other party with a copy thereof.

                                  ARTICLE VII

                       CONDITIONS TO CLOSING; TERMINATION

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

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

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

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

                                       15
<PAGE>   16

         Company shall have maintained all requirements for the continued
         listing or quotation of the Common Stock on the Principal Market.

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

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

                  (f)      Opinion of Counsel. The Investor shall have received
         an opinion of the Company's legal counsel in the form of Exhibit C.

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

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

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

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

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

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

                                       16
<PAGE>   17

                                  ARTICLE VIII

                                     LEGENDS

         Section 8.1. Legends. The Preferred Stock, the Warrant 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 5, 2001,
         BETWEEN PRACTICEWORKS, INC. AND CRESCENT INTERNATIONAL LTD. A COPY OF
         THE PORTION OF THE AFORESAID AGREEMENT EVIDENCING SUCH OBLIGATIONS MAY
         BE OBTAINED FROM PRACTICEWORKS, INC.'S EXECUTIVE OFFICES."

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

                  (a)      At any time after the applicable Effective Date, upon
         surrender of one or more certificates evidencing Preferred Stock or
         Registrable Securities that bear the Legend, to the extent accompanied
         by a notice requesting the issuance of new certificates free of the

                                       17
<PAGE>   18

         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 Preferred Stock and Registrable Securities,
and no instructions or "stop transfer orders," so called, "stock transfer
restrictions," or other restrictions have been or shall be given to the
Company's transfer agent with respect thereto other than as expressly set forth
in this Article VIII.

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

                                   ARTICLE IX

                          INDEMNIFICATION; ARBITRATION

         Section 9.1. Indemnification.

                  (a)      The Company agrees to indemnify and hold harmless the
         Investor, its partners, Affiliates, officers, directors, employees, and
         duly authorized agents, and each Person or entity, if any, who controls
         the Investor within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act, together with its controlling persons
         from and against any Damages, joint or several, and any action in
         respect thereof to which the 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.

                                       18
<PAGE>   19
                  (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 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.

                                       19
<PAGE>   20

                           (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 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

                                       20
<PAGE>   21

                  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 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

                                       21
<PAGE>   22

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

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

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

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

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

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

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

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

                                       22
<PAGE>   23
                                   ARTICLE X

                                  MISCELLANEOUS

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

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

                  (b)      Transaction Costs. The fees, expenses and
         disbursements of the Investor's counsel (the "Investor Legal Fees")
         shall be paid as follows: (i) the Investor shall pay the initial
         $10,000 of Investor Legal Fees and (ii) the Company shall pay all
         Investor Legal Fees in excess of $10,000, provided that the Company's
         share of Investor Legal Fees shall not exceed $50,000. The Company
         shall pay the Investor due diligence costs in connection with the
         consummation of this Agreement and the transactions contemplated hereby
         (the "Due Diligence Costs," and together with the Investor Legal Fees,
         the "Transaction Costs"), which Due Diligence Costs shall not, when
         aggregated with all due diligence costs incurred by the Investor in
         connection with the Stock Purchase Agreement, to be entered into on
         March 6, 2001, relating to the purchase of Common Stock from time to
         time by the Investor, exceed $5,000. The Company shall pay to the
         Investor the Company's share of the Transaction Costs on the Closing
         Date, to the extent such share of the Transaction Costs can be
         determined on the Closing Date. Notwithstanding the foregoing, if the
         Distribution shall not have been consummated prior to March 31, 2001,
         then the Company shall pay to the Investor the Company's share of the
         Transaction Costs on April 1, 2001, to the extent such share of the
         Transaction Costs can be determined on April 1, 2001. The Company shall
         pay its share of the remaining Transaction Costs to the Investor not
         later than ten days after receipt of notice from the Investor that such
         amount is due. The Company agrees to pay its own expenses incident to
         the performance of its obligations hereunder.

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

         Section 10.3. Conversion Notice. Any conversion of the Preferred Stock
shall be effected in accordance with the Certificate of Designations of the
Company. Any conversion notice delivered to the Company by the Investor shall be
in the form of Exhibit E hereto. Any

                                       23
<PAGE>   24

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

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

If to the Company:

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

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

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

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

                                       24
<PAGE>   25

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

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

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

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

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

         Section 10.7. Annexes and Exhibits; Entire Agreement. All annexes and
exhibits to this Agreement are incorporated herein by reference and shall
constitute part of this Agreement. This Agreement and the Registration Rights
Agreement set forth the entire agreement and understanding of the parties
relating to the subject matter hereof and thereof and supersede all prior and
contemporaneous agreements, negotiations and understandings between the parties,
both oral and written, relating to the subject matter hereof.

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

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

                                       25
<PAGE>   26

         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.

                                       26
<PAGE>   27
         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<PAGE>   1
                                                                   EXHIBIT 10.17

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
March 5, 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 5, 2001 (the "Stock Purchase
Agreement"), pursuant to which (i) the Company will issue to the Investor, and
the Investor shall purchase, 100,000 shares of Series C Convertible Preferred
Stock, par value $.01 per share, of the Company (the "Preferred Stock") and (ii)
the Company shall issue to the Investor a warrant, exercisable from time to time
until September 28, 2003 (the "Warrant") for the purchase of a number of shares
of Common Stock at a price described in such Warrant; and

         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, representations,
warranties, covenants and agreements contained herein and in the Stock Purchase
Agreement and in the Warrant, 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 Statement. The Company shall register
for resale all Conversion Shares issued or issuable to the Investor upon
conversion of the Preferred Stock and all Warrant Shares issued or issuable upon
full exercise of the Warrant. Subject to the terms and conditions of this
Agreement, the Company shall effect such registration in the manner provided
below. The Company shall file with the SEC on or before the end of a 385
calendar day period immediately following the Closing Date, a registration
statement (the "Registration Statement") 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 Conversion Shares issued
or issuable pursuant to the terms of the Certificate of Designations and the
Stock Purchase Agreement and all Warrant Shares issued or issuable upon full
exercise of the Warrant, in accordance with the intended method of distribution
of such securities. The aggregate number

<PAGE>   2
of shares to be registered under the Registration Statement shall be equal to
(i) $5,000,000 divided by the Minimum Conversion Price (as such term is defined
in the Certificate of Designations) plus (ii) the number of Warrant Shares.

         b.       Effectiveness of the Registration Statement. The following
conditions for effectiveness shall apply to the Registration Statement 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 Statement. The
Company shall use its best efforts to have the Registration Statement declared
effective by the SEC in no event later than 14 calendar months after the Closing
Date. The Company shall ensure that the Registration Statement and any
amendments thereto remain in effect for a period ending on the date all
Registrable Securities issued or issuable to the Investor pursuant to the
Certificate of Designations, the Stock Purchase Agreement and the Warrant 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 the Registration Statement within the time period
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 the
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
Investor.

                  (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 Conversion Shares and Warrant Shares included in the Registration Statement
is insufficient to permit the conversion in full of the Preferred Stock or the
exercise in full of the Warrant (such deficit in the

                                       2
<PAGE>   3
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
1.5% of the product of (x) the number of Deficit Shares multiplied by (y) the
Closing Bid Price (as such term is term is defined in the Certificate of
Designations) 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 the
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.

         f.       Piggyback Registrations. If, at any time prior to the
Effective Date of the Registration Statement filed pursuant to Section 1.1(a) of
this Agreement, the Company shall determine to register for sale with the SEC
any of its Common Stock or securities convertible into, or exchangeable or
exercisable for, shares of its Common Stock other than for resale by the
Investor (a "Piggyback Registration"), the Company shall give the Investor
written notice thereof (a "Notice of Piggyback Registration") 30 calendar days
prior to the filing of a registration statement relating to such Piggyback
Registration, which notice shall include a description of (i) the intended
method of distribution of such Common Stock and such other securities, (ii) the
number of shares of Common Stock and such other securities the Company intends
to register, and (iii) such other Persons who will or have a right to
participate in the Piggyback Registration. Upon the written request of the
Investor made within 20 days after receipt of a Notice of Piggyback Registration
(which request shall specify the Registrable Securities intended to be disposed
of by the Investor and the intended method of distribution thereof), the Company
shall include in the registration statement relating to such Piggyback
Registration all Registrable Securities that the Company has been so requested
to register by the Investor. If the Piggyback Registration for which the Company
gives a Notice of Piggyback Registration is a registered public offering
involving an underwriting, and the underwriters selected by the Company advise
the Company in writing that marketing factors require a limitation on the number
of shares of Common Stock or other securities to be underwritten, the Company
shall reduce the number of shares of Common Stock or other securities included
in such registration (1) first, by reducing the number of shares of Common Stock
or other securities to be registered for resale by all Persons other than the
Investor and other than Ceramco, Inc., a Delaware corporation ("Ceramco"),
allocated among such Persons in accordance with the priorities then existing
among the Company and such Persons and (2) second, by reducing on a pro rata
basis the

                                       3
<PAGE>   4
number of shares of Registrable Securities requested to be included by the
Investor and Ceramco. Any other shares of Common Stock, Registrable Securities,
or other securities of the Company so excluded shall be withdrawn from and shall
not be included in such Piggyback Registration.

         g.       Holdback Provisions. If, at any time after the Effective Date
of the Registration Statement filed pursuant to Section 1.1(a) of this
Agreement, the Company shall, in connection with either an underwritten or
non-underwritten public offering, determine to register for sale with the SEC
any of its Common Stock or securities convertible into, or exchangeable or
exercisable for, shares of its Common Stock other than for resale by the
Investor (a "Post-Effective Public Offering"):

                  (i)      the Company shall give the Investor written notice
thereof (a "Notice of Post-Effective Public Offering") at least 20 calendar
days' prior to the filing of a registration statement relating to such
Post-Effective Public Offering, which notice shall include a description of the
intended method of distribution of such Common Stock and other securities, the
number of shares of Common Stock and any other securities the Company intends to
register, and such other Persons who will, or have a right to, participate in
such Post-Effective Public Offering;

                  (ii)     if requested in writing by the Investor within 10
calendar days after receipt of a Notice of Post-Effective Public Offering, the
Company shall include, or if such Post-Effective Public Offering is an
underwritten offering of securities the Company shall use its best efforts to
cause the underwriters selected by the Company to include, in such
Post-Effective Public Offering such number of Registrable Securities requested
in writing by the Investor, and the Company will make any filings and amendments
or supplements to any registration statement necessary to effect the foregoing;

                  (iii)    if the underwriters selected by the Company advise
the Company in writing or the Company determines that marketing factors require
a limitation on the number of shares of Common Stock or any other securities to
be offered, the Company shall reduce the number of shares of Common Stock or any
other securities included in such registration (1) first, by reducing the number
of shares of Common Stock or any other securities to be registered for resale by
all Persons other than the Investor, allocated among such Persons in accordance
with the priorities then existing among the Company and such Persons and (2)
second, by reducing the number of shares of Registrable Securities requested to
be included by the Investor. Any other shares of Common Stock, Registrable
Securities, or other securities of the Company so excluded shall be withdrawn
from and shall not be included in such Post-Effective Public Offering.

                  (iv)     Upon receipt of a Notice of Post-Effective Public
Offering, the Investor agrees not to effect any public sale of the Conversion
Shares or the Warrant Shares, other than through the proposed Post-Effective
Public Offering, during the 30 day period beginning on the effective date of the
registration statement relating to such Post-Effective Public Offering
("Holdback Period"), only if and to the extent requested in writing by the
underwriter or the Company; provided that the foregoing shall not in any way
limit the Investor's right to sell any Registrable Securities prior to the
effective date of such registration statement;

                                       4
<PAGE>   5
provided, further, that if the giving of a Notice of Post-Effective Public
Offering would cause the aggregate length of all Holdback Periods, together with
all Blackout Periods (defined below), in any twelve calendar month period to
exceed 120 calendar days, then the applicable Holdback Period shall be shortened
(but to no less than zero days) to avoid any such excess.

                                   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 covering the shares as described in subsection 1.1(a)
above; (ii) use its best efforts to cause such filed Registration Statement 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 the Registration Statement and
the prospectus used in connection therewith as may be necessary to keep the
Registration Statement effective for the time period prescribed by Section
1.1(b); and (iv) comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by the Registration Statement
during such period in accordance with the intended methods of disposition by the
Investor set forth in the Registration Statement.

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

         c.       Five Trading Days prior to filing the 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

                                       5
<PAGE>   6
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 following events in respect of the
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 the 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 the 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 the 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.

                                       6

<PAGE>   7
         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 the 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' 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 the
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

                                       7
<PAGE>   8
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 shall appoint a transfer agent and registrar for
all of the class that includes the Registrable Securities covered by the
Registration Statement not later than the Effective Date of the Registration
Statement.

         m.       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 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 the 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 the 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 its 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

                                       8
<PAGE>   9
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 such registration expenses shall specifically exclude
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 of
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 the 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
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 all Holdback Periods in the twelve
calendar month period ending on the last day of such proposed Delivery Period,
plus (z) 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

                                       9
<PAGE>   10
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 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,

                                       10
<PAGE>   11
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, 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.

         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.

                                       11
<PAGE>   12
         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 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

                                       12
<PAGE>   13
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) a Sale to a Third Party (as such terms are
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.

         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.

                                       13
<PAGE>   14
         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 of 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 Certificate of Designations, the
Warrant 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 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

                                       14
<PAGE>   15
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:      Earl S. Zimmerman, Esq.
                                   Telephone:      (212)  878-8000
                                   Facsimile:      (212)  878-8375

     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.

                                       15
<PAGE>   16

         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.

                                       16
<PAGE>   17
         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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