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EXHIBIT 10.7

[ALLSCRIPTS LOGO] TOUCHWORKS™ SYSTEM AGREEMENT
 
 
Customer Name:
       

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    Sales Executive:        

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        This AGREEMENT is made as of the latter of Customer's or Allscripts'
execution below ("Effective Date") by and between the Customer identified in the
signature area below and Allscripts, Inc., directly and/or through its affiliate
Channelhealth Incorporated, both Delaware corporations (collectively,
"Allscripts") and both being affiliates of Allscripts Healthcare
Solutions, Inc., a Delaware corporation.

        Allscripts agrees to provide and deliver to Customer the hardware
("Equipment") and services ("Services"), to deliver, install, and maintain those
modules of the proprietary software selected in the box below and the interfaces
listed on the Payment Schedule(s) attached hereto ("Software"), (collectively,
"Products") and to grant to Customer a license to use Software pursuant to the
terms and conditions set forth below and on the attached Schedules. Customer
agrees to use the Equipment, to accept the license for the Software, and pay the
requisite fees for the Software, Equipment, and the Services rendered by
Allscripts. From time-to-time, Products may be added to this Agreement by
written amendment signed by both parties.

    TouchWorks Rx+™       TouchWorks Note™

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            FirstFill™       TouchWorks PATIENTED®

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            TouchWorks Physician Homebase™       TouchWorks Pocket Library™

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            TouchWorks WorkFlow™       Titles:

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                    TouchWorks Charge™           DrugGuide™

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        TouchWorks Document™           PediaStat®

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        TouchWorks Dictate™           Pediatric DrugGuide™

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        TouchWorks Result™           Geriatric DrugGuide™

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        TouchWorks Order™           Pocket Anatomy™

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                    Pocket Exercises™        

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            ASP Services            

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Check One
(applies to all Products unless noted otherwise)

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  License Type

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          Subscription License for the number of Users for which Customer pays
subscription fees as reflected on the attached Payment Schedule with an initial
subscription term ending sixty (60) months after the first payment for 100% of
the minimum number of Users is due.

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Ten (10) Year Term License for a maximum of                        . Users as
reflected on the attached Payment Schedule.

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        The following general terms and conditions will apply to each Product
set forth above, in addition to the specific terms and conditions set forth in
the separate Schedule for each Product checked above. The terms and conditions
of a separate Schedule will control with respect to that Product in the event of
a specific conflict with these general terms. As used hereafter, reference to
Products will mean the Products checked above as of the Effective Date or added
by written amendment.

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LICENSE

        Allscripts hereby grants and Customer hereby accepts a non-transferable,
non-exclusive license to use the Software and all materials supplied by
Allscripts. Use of the Software is limited to the number of Users indicated in
the table above. The Software contains trade secrets and other Confidential
Information of Allscripts and is the proprietary copyrighted property of
Allscripts. Title to the Software remains at all times with Allscripts. Customer
shall not modify, change, reverse engineer, copy in any form, tamper with and/or
display, disclose or make available to others the Software without the express
written consent of Allscripts. Third party software products indentified on the
Equipment Schedule are licensed to Customer separately pursuant to end user
license agreeements from such third party vendors. Customer agrees to use the
Software only in accordance with its directions for use and only in connection
with Customer's internal business conducted at the address(es) ("Site(s)")
identified on the attached Site Schedule. As used in this Agreement, "Users"
means an individual licensed healthcare practitioner (i) designated by Customer
as authorized to use the Products, (ii) who delivers professional services
whether or not professional service charges are submitted or collected in such
party's name (unless Customer and Allscripts have agreed otherwise in writing
with respect to licensed healthcare practioners who are in training and in whose
name no professional service charges are submitted or collected by Customer),
and (iii) who have accessed or used the Product at least twice during any 90 day
period. Customer will timely provide written notice to Allscripts of any change
in the list of Users at the Sites and this Agreement, and any affected Schedule,
will be deemed appropriately amended.

EQUIPMENT

        Allscripts will specify on the Equipment Schedule the hardware and
related items ("Equipment"), that are being purchased by Customer from
Allscripts, and any other arrangement between Customer and Allscripts with
respect to the Equipment. Unless otherwise stated on the Equipment Schedule, all
Equipment listed on the Equipment Schedule shall be purchased by Customer. On or
before the date on which Allscripts is scheduled to install the Products,
Customer shall have installed (or made available) electrical power at the
installation Site sufficient to operate the Products. Customer also shall have
obtained access at the Site to a telephone line and other applications specified
in the applicable Allscripts' system environment specifications that are
dedicated to the exclusive use of the modem for the Products. If the Products
are to operate on the Customer's computer network, Customer is responsible for
all the hardware, software (including licenses), and other equipment necessary
to connect the Products to the Customer's computer network ("Network"). The cost
of computer supplies (e.g., labels, paper and printer cartridges) and the
installation of the electrical power, the dedicated telephone line and, if
necessary, network cabling, hub and other necessary networking equipment will be
borne solely by Customer, except as otherwise expressly provided in a Schedule.
Customer is responsible for maintaining the Network and all Products in good
working order and shall be liable for the cost of repairing or replacing any
Network components and Products, including but not limited to personal digital
assistant ("PDAs") or similar devices, that are lost, stolen or damaged while in
Customer's possession.

IMPLEMENTATION

        Allscripts will arrange for shipment by common carrier, at mutually
agreeable time(s), of Products provided to Customer from Allscripts, with the
cost of shipping and transportation to be borne by Customer, unless otherwise
provided in a Schedule. Risk of loss to the Products will remain with Allscripts
until Delivery (defined below). For Equipment purchased by Customer from
Allscripts, good and merchantable title will pass to Customer upon Delivery
(defined below). "Delivery", when used in this Agreement or any Schedule hereto,
shall mean with respect to any item of Software, the first to occur of: (i) the
delivery of possession of the first copy or product master into a device
designated by

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Customer for such purpose, (ii) communication to Customer of access codes that
allow Customer to take possession of the first copy or product master, (iii) the
delivery by Allscripts of the first copy or product master in person to Customer
or to any common carrier or delivery service for transport to Customer, and
(iv) the delivery by Allscripts of written authorization for duplication of
existing copies in the Customer's possession. With respect to any item of
Equipment, "Delivery" shall mean the delivery of the Equipment by Allscripts or
the supplier of the Equipment to a common carrier or delivery service for
transport to the Customer or to any location specified by or on behalf of the
Customer. Following Delivery, each party will install those items to be
installed by that party in accordance with the system environment
specifications. Allscripts will provide initial training on the use of the
Products to Customer's personnel in accordance with Allscripts' standard
training program either at Allscripts, at the Site, or other mutually agreed
upon location ("Project Team Training"). Any fee for initial training is set
forth in a Schedule or as the parties otherwise agree in writing. Allscripts
will provide subsequent and optional Site Coordinator training at Allscripts and
on-site training and support, at its then-current rates, plus expenses. Customer
authorizes Allscripts to access any third party's system used by Customer in
order to implement the interfaces requested by Customer and Customer represents
to Allscripts that it has the right and authority to grant such access.

SUPPORT SERVICES

        Allscripts will provide technical services to design, code, test and
deliver amendments or alterations of the Software necessary to correct or
provide a solution to any programming error attributable to Allscripts that has
caused the Software, when implemented and operated in accordance with
Allscripts' then current system environment specifications, not to perform
substantially as described in the then current user-orientated instructions for
the operation of the Software in the form distributed by Allscripts to its
customers generally (the "Documentation") ("Support Services"). Such Support
Services will be promptly provided after Customer has identified and notified
Allscripts of any such error in accordance with Allscripts' reasonable reporting
procedures as in effect from time-to-time. Allscripts will also provide
reasonable telephone consultation in the use and operation of the Products
during the hours of 8:00 A.M. through 6:00 P.M. Central standard time on
weekdays, except Allscripts' holidays. To enable Allscripts to deliver Support
Services, Customer shall establish and maintain connectivity between Allscripts
and Customer as required by Allscripts' then current system environment
specifications. In addition, Allscripts will deliver to Customer, from
time-to-time, updates of the Software that Allscripts elects to provide to its
customers generally, and does not market separately. Customer agrees to test,
and if operable, accept and use all updates, amendments and alterations to the
Software furnished by Allscripts hereunder. Support Services shall be provided
only for the most recent release of Software, and the next prior release.

FEES AND PAYMENTS

        Allscripts shall invoice Customer, and Customer will pay to Allscripts,
fees attributable to the Products, as and when due based on the attached Payment
Schedule. Invoices are due and payable when received. Invoices not paid within
30 days of the invoice date shall be subject to a late charge of one and
one-half percent (11/2%) per month or the maximum lawful rate, whichever is
lower. Except to the extent that Customer demonstrates that it is legally
exempt, Customer is responsible for payment of any federal, state or local
excise, sales, use or similar taxes assessed with respect to the Products
provided and sold hereunder, as well as any transaction-based charges levied by
third parties in connection with Customer's use of the Products.

        The dollar value of any Products not paid for by, or provided at a
reduced charge to, Customer and received by Customer under this Agreement, are
"discounts or other reductions in price" to Customer under
Section 1128B(b)(3)(A) of the Social Security Act [42 U.S.C. 1320a-7b(b)(3)(A)].
To the extent applicable, Customer shall disclose such discounts or other
reduction in price under any state

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or federal program that provides cost or charge based reimbursement to Customer
for the Products provided under this Agreement.

LIMITED WARRANTY

        Except to the extent more specific warranties are set forth in a
Schedule, Allscripts warrants that the Software will materially conform to all
operational features in the Documentation for a warranty period commencing on
the "Go Live Date" and continuing for 90 days when the Software is used by
Customer in accordance with the applicable Allscripts Product system environment
specifications. "Go Live Date," when used in this Agreement or any Schedule
hereto, shall mean, with respect to a Product, the date of capability of use
thereof by Customer and/or through its Users to process actual data in the
operation of Customer's business, for example, to create a prescription, to
create a charge form, to dictate or create a note, or to record a treatment.
Customer must notify Allscripts in writing within 30 days of the discovery of
any material defect in the Software. If the Software is found to be materially
defective by Allscripts, Allscripts will design, code, test and deliver
amendments or alterations of the Software necessary to correct or provide a
solution to any programming error attributable to Allscripts that has caused the
Software to fail to perform as warranted above. Third party software products or
Equipment distributed by Allscripts are warranted by their manufacturers and
more specific warranties may accompany such products. Customer must notify
Allscripts in writing within 10 days of Delivery if a third party software
product or item of Equipment does not conform with this warranty and Allscripts
shall use its reasonable commercial effort, consistent with industry standards,
to obtain the repair or replacement of such nonconforming item with product that
conforms to the warranty. Allscripts warrants that Services provided under this
Agreement will be performed professionally, in a workmanlike manner, and by
individuals with appropriate skills and expertise. Customer must notify
Allscripts promptly if Customer is dissatisfied at any time with the performance
of Services delivered hereunder. If Allscripts agrees that performance was
materially below the level of competence reasonably associated with the
Services, Allscripts will arrange for the performance to be raised to the
warranted level and, if necessary, for the Services to be re-performed.

        THE ABOVE IS A LIMITED WARRANTY AND IT IS THE ONLY WARRANTY MADE BY
ALLSCRIPTS WITH RESPECT TO THE SOFTWARE, EQUIPMENT, SERVICES, AND THIRD PARTY
PRODUCTS. ALLSCRIPTS DOES NOT MAKE, NOR DOES THE CUSTOMER RECEIVE, ANY OTHER
WARRANTY, WHETHER EXPRESS OR IMPLIED, AND ALL WARRANTIES OF MERCHANTABILITY, OF
FITNESS FOR A PARTICULAR PURPOSE, AND OF COMPATIBILITY WITH CUSTOMER'S COMPUTER
HARDWARE AND/OR SOFTWARE SYSTEM AND/OR NETWORK ARE EXPRESSLY EXCLUDED. CUSTOMER
IS SOLELY RESPONSIBLE FOR IMPLEMENTING APPROPRIATE VIRUS PROTECTION PROCEDURES
AND TOOLS AND SYSTEM AND NETWORK SECURITY MEASURES TO PREVENT UNAUTHORIZED
ACCESS TO THE SOFTWARE AND RELATED DATA. THE FOREGOING LIMITED WARRANTY AND
ASSOCIATED REMEDIES FOR THE SOFTWARE, EQUIPMENT, SERVICES AND THIRD PARTY
PRODUCTS ARE CUSTOMER'S SOLE AND EXCLUSIVE WARRANTY OF PERFORMANCE REGARDING THE
SOFTWARE, EQUIPMENT, SERVICES AND THIRD PARTY PRODUCTS AND CUSTOMER'S SOLE AND
EXCLUSIVE REMEDIES FOR BREACH OF THE FOREGOING LIMITED WARRANTY FOR THE
SOFTWARE, EQUIPMENT, SERVICES AND THIRD PARTY PRODUCTS. ALLSCRIPTS SHALL HAVE NO
LIABILITY WITH RESPECT TO ALLSCRIPTS' OBLIGATIONS UNDER THIS AGREEMENT FOR
CONSEQUENTIAL, EXEMPLARY, SPECIAL, INDIRECT, PUNITIVE, OR INCIDENTAL DAMAGES,
EVEN IF ALLSCRIPTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES,
INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF GOODWILL, WORK STOPPAGE,
COMPUTER FAILURE OR MALFUNCTION, OR ANY AND ALL OTHER COMMERCIAL DAMAGES OR
LOSSES, PERSONAL INJURY OR PROPERTY DAMAGE. THIS EXPRESS WARRANTY IS IN LIEU OF
ALL LIABILITIES OR OBLIGATIONS OF ALLSCRIPTS

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FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE DELIVERY, USE, OR
PERFORMANCE OF THE SOFTWARE, EQUIPMENT, SERVICES, OR THIRD PARTY PRODUCTS. IN NO
EVENT SHALL ALLSCRIPTS' LIABILITY HEREUNDER, WHETHER ARISING UNDER CONTRACT,
TORT OR WARRANTY, EXCEED THE SOFTWARE LICENSE FEES ASSOCIATED WITH THE
APPLICABLE PRODUCT PAID BY THE CUSTOMER FOR THE MOST RECENT 12 MONTH PERIOD OF
THIS AGREEMENT, OR SUCH OTHER PERIOD THAT MAY BE EXPRESSLY SET FORTH IN THE
APPLICABLE SCHEDULE.

INTELLECTUAL PROPERTY INDEMNITY

        Allscripts is the owner of the Software, or has adequate rights to
license to Customer the use of the Software as herein provided. Allscripts will,
at its expense, defend against and pay any final judgment against Customer
arising out of any claim that any Software infringes a U.S. copyright or a U.S.
patent issued as of the effective date of the Payment Schedule with respect to
the Software, or misappropriates a trade secret, provided that (i) Customer
promptly notifies Allscripts in writing of such claim or action and
(ii) Allscripts has sole control of the defense and settlement of such claim or
action. In defending against such claim or action, Allscripts may at its option
(a) consent, (b) settle, (c) procure for Customer the right to continue using
the Software, or (d) modify or replace the Software so that it no longer
infringes, to the extent that the exercise of any such option does not result in
a material adverse change in the material operational characteristics of the
Software, and so long as equivalent functions and performance provided by the
Software remain following implementation of such option. If Allscripts concludes
in its judgment that none of the foregoing options is reasonable or practicable,
then Allscripts may terminate the license granted hereunder, Customer will
return the original and all whole or partial copies of the Software to
Allscripts and, only if Customer has purchased a term license, Allscripts shall
refund or credit to Customer an amount equal to the pro rata portion of the
license fee paid by Customer proportionate to the remainder of the license term.
Allscripts has no liability with respect to patent infringement or trade secret
misappropriation arising out of modifications of the Software made to Customer's
order or specification or use of the Software in combination with other
software, products or equipment not specified on a Schedule.

CUSTOMER RESPONSIBILITY

        Customer represents that it is solely responsible for inputting and
retrieving data from the Products, and for the accuracy and adequacy of
information and data furnished for processing. CUSTOMER REPRESENTS THAT IT SHALL
HAVE FULL RESPONSIBILITY FOR THE CARE AND WELL BEING OF ITS PATIENTS, AND ANY
RELIANCE BY CUSTOMER UPON THE PRODUCTS SHALL NOT DIMINISH THAT RESPONSIBILITY.

HIPAA COMPLIANCE

        Allscripts shall comply with all provisions of the Health Insurance
Portability and Accountability Act and the regulations promulgated thereunder
(collectively "HIPAA") applicable to a Business Associate in connection with its
use and disclosure of Protected Health Information ("PHI"), as those terms are
defined in HIPAA. In particular, Allscripts will: (i) not use or further
disclose PHI other than as permitted or required by this contract or as required
by law; (ii) use appropriate safeguards to prevent use or disclosure of PHI
other than as provided for by this contract; (iii) report to Customer any use or
disclosure of PHI not provided for by this contract of which it becomes aware;
(iv) ensure that any agents, including a subcontractor, to whom it provides PHI
received from, or created or received by it on behalf of, Customer agrees to the
same restrictions and conditions that apply to it with respect to such
information; (v) make available PHI in accordance with § 164.524 of the HIPAA
regulations; (vi) make available PHI for amendment and incorporate any
amendments to protected

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health information in accordance with §164.526 of the HIPAA regulations;
(vii) make available the PHI required to provide an accounting of disclosures in
accordance with § 164.528 of the HIPAA regulations; (viii) make its internal
practices, books, and records relating to the use and disclosure of PHI received
from, or created or received by it on behalf of, the Customer available to the
Secretary of the U.S. Department of Health and Human Services for purposes of
determining the Customer's compliance with HIPAA; and (ix) at termination of the
contract, if feasible, return or destroy all protected health information
received from, or created or received by it on behalf of, Customer that it still
maintains in any form and retain no copies of such information or, if such
return or destruction is not feasible, extend the protections of the contract to
the information and limit further uses and disclosures to those purposes that
make the return or destruction of the information infeasible.

        Notwithstanding the foregoing, Allscripts may use or disclose PHI for
any of the following purposes: (i) loading Allscripts software at Customer's
site; (ii) interfacing Allscripts software with other software used by Customer;
(iii) training Customer and its Users in the use of the Allscripts systems and
software; (iv) providing on-site support services to Customer and its Users;
(v) providing help desk support services to Customer and its Users;
(vi) repairing the Allscripts systems or software; (vii) upgrading the
Allscripts systems or software; (viii) updating information on the Allscripts
software; (ix) transmitting prescriptions, dictations, claims, orders, results
or other records as requested by Customer, its Users and/or the patient; (x) any
other purpose which supports the intended use of the Allscripts systems and
software by Customer or its Users; (xi) any other purpose which requires consent
or authorization of the patient, if such consent or authorization is obtained;
or (xii) for its proper management and administration or to carry out its legal
responsibilities. Allscripts may also de-identify and aggregate PHI, which it
may then use or disclose to others for its own purposes.

        Customer may terminate this Agreement if Customer determines that
Allscripts has violated a material term of the preceding two paragraphs of this
section and Allscripts does not cure such violations within thirty (30) days of
receipt of written notice from Customer.

        If during the term of this Agreement, Customer is required to fulfill a
mandatory technical requirement under the Health Insurance Portability and
Accountability Act of 1996 ("HIPAA") and such requirement is (i) applicable to
Customer as a provider of health care, (ii) requires the adaptation of the
Software, (iii) cannot be accomplished by Customer through the use of
procedures, tools, programs or utilities available to Customer at a commercially
reasonable cost, (iv) can reasonably be supported by the Software in a manner
intended for its use, and (v) becomes effective, or is scheduled to become
effective during the term of this Agreement (hereinafter "Mandatory
Requirement"), Allscripts shall either (i) enhance or upgrade the Software or
(ii) create a new product that it markets separately to its customers in general
to enable its customers to support such Mandatory Requirement, provided that, if
use of the Software is covered by a term license, then Allscripts' commitment
will apply to Customer only if Customer is receiving, and is current in its
payment of, Support Services for a Software version that is then supported by
Allscripts for its customers in general. The parties acknowledge that the scope
of any enhancement, upgrade or new product necessary to enable Customer to
support a Mandatory Requirement cannot be determined at this time. Accordingly,
Customer shall have an option to implement any enhancements or upgrades, or
license any new products, that Allscripts provides in connection with such
Mandatory Requirement at a price not to exceed Allscripts' standard price for
such enhancements, upgrades or new products. Customer and Users will obtain from
their patients all requisite written consents in order to utilize the
capabilities of the Products in compliance with applicable laws and regulations,
including, but not limited to HIPAA, and to carry out the purposes of this
Agreement.

CONFIDENTIALITY

        Allscripts and Customer shall take all steps and do all things
reasonably necessary to ensure that the terms of this Agreement and information
relating to the business of the other party acquired

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pursuant to this Agreement shall not be disclosed to others, provided, however,
that the foregoing shall not apply to information: (i) that either party can
show was known to it prior to disclosure by the other party; (ii) that is or
becomes public knowledge through no fault of the party to whom disclosure is
made, (iii) that is independently developed by the other party without reliance
on the other party's information, (iv) that is required by law to be disclosed,
or (v) that is necessary to be disclosed in order to carry out the purposes of
this Agreement. Customer agrees that Allscripts shall have access to all
information maintained by the Software and that such information may be used by
Allscripts and may be disclosed by Allscripts to others, provided that,
Allscripts will not make any patient-identifiable information available to
others except as required by law, or with the patient's express written
permission, or as required to carry out the purposes of this Agreement. This
provision will survive the termination of this Agreement.

TERM AND TERMINATION

        The term for each Product selected above will be the term set forth in
the box on the first page of this Agreement or the applicable Schedule for that
Product, with the general terms and conditions set forth herein continuing for
the same period. If use of a Product is covered by a subscription license:
(i) this Agreement will automatically renew at the end of the initial 60 month
term as to such Product for successive 12 month terms unless written notice of
termination is given by a party at least 60 days prior to any term-end, to be
effective at such term-end, and (ii) this Agreement will terminate upon the last
to expire of all Product Schedules. Either party may terminate individual
Product Schedules and the license associated with such Software, whether a
subscription license or a term license (and if termination is exercised with
respect to all Products, then this Agreement will also be terminated as a
whole), upon prior written notice to the other party: (a) in the event of a
material breach by the other party (other than for failure to make a payment
when due or failure to comply with the terms and conditions of the license),
unless the breach is cured within 30 days of the termination notice; or (b) in
the event of failure by the other party to make any payment when due, (c) in the
event of a material breach by Customer of the terms and conditions of any
Software license, or (d) in the event of the voluntary or involuntary
bankruptcy, dissolution or insolvency of the other party. Upon termination of
this Agreement or individual Product Schedule, all amounts which are payable to
Allscripts and/or credits to Customer in accordance with this Agreement for the
applicable Product shall be made promptly. Additionally, Customer will, at its
expense, immediately uninstall and return to Allscripts the applicable Software
that was terminated and any associated Equipment specified for return in the
Equipment Schedule.

MISCELLANEOUS

•Customer agrees to designate a "Site Coordinator" whose daily duties will
include, but not be limited to: (i) checking that the Products are functioning,
(ii) managing inventory needs, when applicable, (iii) providing ongoing training
to Users, (iv) running reports to meet the Customer's needs, (v) acting as the
primary contact between Customer and Allscripts.

•Each party shall secure and maintain professional liability and general
liability insurance coverage as necessary to cover their risks pursuant to this
Agreement, but not less than $1 million per occurrence and $3 million aggregate
annual limits, and, upon request, provide the other party with a certificate of
insurance evidencing such coverage.

•The parties are independent contractors and this Agreement confers no rights or
benefits to any non-party.

•This Agreement is binding on the parties, their successors and assigns,
provided that neither party may assign this Agreement, or any Schedules, without
the prior written consent of the

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other party except for assignment to affiliates or as part of the sale of
substantially all of the assets of the business to which this Agreement
pertains.

•Failure by a party to enforce noncompliance with any term of this Agreement
shall not act as a waiver of any right or remedy hereunder.

•Except for payment obligations, neither party shall be liable for failure or
delay of performance for reasons beyond the reasonable control of that party.

•This Agreement shall be governed in accordance with the laws of the State of
Illinois.

•All notices given under this Agreement shall be in writing and be deemed to
have been given upon personal delivery, or delivery at the address provided
below by overnight national courier providing written evidence of delivery, or
by facsimile copy (to the fax number provided below) the next business day
following transmittal.

•In the event that any provision of this Agreement or a Schedule is held by a
court of competent jurisdiction to be unenforceable, the remaining provisions of
the Agreement or Schedule will not be affected, unless the absence of the
invalidated provision adversely affects the substantive rights of the parties,
in which case, the parties agree to replace any such provision or parts thereof
with new provision(s) that closely approximate the economic and proprietary
results intended by the parties.

•This Agreement, including all Schedules, or other attachments, constitutes the
entire agreement between the parties with respect to the subject matter and
supersedes all prior agreements and understandings related to its subject
matter. No contrary terms or conditions of any subsequent Customer purchase
order, no course of dealing, trade, custom or usage of trade, and no warranty or
promise made during the course of performance, will vary or contradict the terms
of this Agreement, unless expressly agreed to in writing.

        IN WITNESS WHEREOF, authorized representatives of the parties have
signed this Agreement

Customer:   Allscripts
By:
 
 
 
By:
 
 
 
 

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Name:
 
 
 
Name:
 
 
 
 

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Title:
 
 
 
Title:
 
 
 
 

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Date:
 
 
 
Date:
 
 
 
 

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Business Address:
 
 
 
Business Address:
 

2401 Commerce Drive
Libertyville, IL 60048

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Fax:
 
 
 
Fax:
 
800-826-2079
 
 

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Phone:
 
 
 
Phone:
 
 
 
 

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Attachments

Site Schedule • Payment Schedule • Equipment Schedule • Product Schedules
(various as noted)

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SITE SCHEDULE

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer."). This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the Products, it modifies, supplements and amends the Agreement,
and in the event of any inconsistency between the terms of this Schedule and the
terms of the Agreement, the terms of this Schedule shall govern and control. In
all other respects, the Agreement is and shall remain in full force and effect.
Unless expressly indicated to the contrary hereinbelow, the defined terms used
in the Schedule shall have the meanings ascribed to them in the Agreement.

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        Customer agrees to use the Software only in accordance with its
directions for use and only at the address(es) identified below (each of which
will use ALL Products selected in the box on the first page of the Agreement,
unless indicated otherwise below).

Site Name and Location

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  Exceptions to Product Use
(Specify ONLY the Products selected on page 1 that the Site
WILL NOT be using)

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Address:
 

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State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Fax Number:
 

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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Name:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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EQUIPMENT SCHEDULE

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer.") This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the Products, it modifies, supplements and amends the Agreement,
and in the event of any inconsistency between the terms of this Schedule and the
terms of the Agreement, the terms of this Schedule shall govern and control. In
all other respects, the Agreement is and shall remain in full force and effect.
Unless expressly indicated to the contrary hereinbelow, the defined terms used
in the Schedule shall have the meanings ascribed to them in the Agreement.

[Insert hardware configuration for purchased equipment]

12

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[ALLSCRIPTS LOGO]

TOUCHWORKS: RX+™ AND FIRSTFILL™ SCHEDULE

    Customer Name            

--------------------------------------------------------------------------------

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer.") This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the TouchWorks: FirstFill™ product, it modifies, supplements and
amends the Agreement, and in the event of any inconsistency between the terms of
this Schedule and the terms of the Agreement, the terms of this Schedule shall
govern and control. In all other respects, the Agreement is and shall remain in
full force and effect. Unless expressly indicated to the contrary hereinbelow,
the defined terms used in the Schedule shall have the meanings ascribed to them
in the Agreement.

Terms applicable to FirstFill™

GENERAL

        FirstFill facilitates point-of-care dispensing of pharmaceutical and
non-pharmaceutical products through Allscripts' proprietary prescribing system.
Allscripts is a distributor of various prescription and non-prescription
products. Customer is interested in purchasing from Allscripts and Allscripts is
willing to sell to Customer such products for dispensing using the FirstFill
system. As part of Customer's license to FirstFill, Customer will receive
database updates, automated inventory management, on-line pharmacy claims
adjudication, and Allscripts' purchase order processing as Allscripts makes them
generally available at no additional charge to its customers. Customer will
complete the SubSchedules 1 and 2 and the Limited Power of Attorney form
attached to this Schedule. If use of FirstFill™ is covered by a term license,
Allscripts' commitments under this Schedule will apply to Customer only if
Customer is receiving, and is current in its payment of, Support Services for a
Software version of TouchWorks: Rx+ that is then supported by Allscripts for its
customers in general.

PHARMACEUTICAL PRODUCTS

        Allscripts' will sell to Customer and Customer may, for its own internal
business purposes only, purchase from Allscripts, prescription and
non-prescription products described in Allscripts' Pharmaceutical Product
documentation ("Pharmaceutical Products") which may be modified by Allscripts at
any time. Nothing in this Schedule or the Agreement requires Customer to
purchase Pharmaceutical Products from Allscripts nor prohibits Customer from
purchasing pharmaceutical products from any other source. Customer acknowledges,
however, that various functionalities of the FirstFill™ system, including, but
not limited to, the dispensing, labeling and inventory management functions,
will not perform properly if used with any pharmaceutical products other than
those sold by Allscripts.

PRICES AND PAYMENTS

        As further provided below, Allscripts has established a two-tier pricing
system, with each Pharmaceutical Product having both an "Invoice Price" and a
"Managed Care Price". The "Invoice Price" applies to Pharmaceutical Products
that the Customer sells to patients without third party prescription coverage
and the "Managed Care Price" applies to Pharmaceutical Products that the
Customer sells to patients with third party prescription coverage. Allscripts
will invoice Customer at the Invoice Price in effect on the date of shipment.
Customer shall pay to Allscripts the then-current Invoice Price for
Pharmaceutical Products purchased. Invoices are due and payable 30 days from
invoice date. Payment terms are set forth in the Agreement. Customer is also
responsible for payment

1

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of the cost of shipping Pharmaceutical Products. Return of any Pharmaceutical
Product is subject to Allscripts' Returned Goods Policy in effect on the date of
the proposed return.

THIRD PARTY PAYERS

        Customer may wish to participate as a provider in prescription programs
administered by third party payers, pharmacy benefit managers, or other
intermediaries ("Third Party Payers"). Allscripts shall facilitate Customer
being admitted as a provider in such third party prescription programs through
the execution of agreements with Third Party Payers for that purpose ("Provider
Agreement"). Customer agrees to provide pharmaceutical dispensing services to
eligible patients in accordance with the terms and conditions of the applicable
Provider Agreement. Customer appoints Allscripts to receive all payments from
Third Party Payers for pharmaceutical dispensing services rendered. Customer
will accept the terms and reimbursement rate set forth in each applicable
Provider Agreement. Allscripts will reimburse Customer in the amounts and manner
as follows: If Customer, as a participating provider under a Provider Agreement,
provides to an eligible patient a Pharmaceutical Product adjudicated through the
FirstFill System and is paid for such Pharmaceutical Product by a Third Party
Payer, Allscripts will credit the Customer for (i) the full reimbursement paid
to Allscripts by the Third Party Payer, plus (ii) an amount equal to the
difference between the then current "Invoice Price" and the then current
"Managed Care Price" for the Pharmaceutical Product. Customer agrees to require
each eligible patient requesting pharmaceutical dispensing services to present a
prescription card or otherwise comply with the eligibility verification
procedures as outlined in the Allscripts Dispensing Policy Handbook and the
applicable Provider Agreement. Customer will collect from eligible patients the
full amount of any applicable copay designated by the Third Party Payer. If
Customer, without being admitted as a participating provider under a Third Party
Payer prescription program and without seeking reimbursement from the program,
sells a Pharmaceutical Product to a patient who certifies that he or she is
eligible for coverage of the Pharmaceutical Product under the program,
Allscripts will credit the Customer for an amount equal to the difference
between the then current "Invoice Price" and the then current "Managed Care
Price".

LIMITED WARRANTY FOR PHARMACEUTICAL PRODUCTS

        Allscripts warrants that, when delivered, Pharmaceutical Products are
the products identified on their labeling and that the labeling format will
interface with the FirstFill System. Pharmaceutical Products distributed by
Allscripts are warranted by their manufacturers and more specific warranties may
accompany such products. Customer must notify Allscripts in writing within
10 days of delivery if Pharmaceutical Products do not conform with this warranty
and Allscripts shall use its reasonable effort, consistent with industry
standards, to replace nonconforming Pharmaceutical Products with product that
conforms to the warranty. If, despite such efforts, the nonconformance cannot be
remedied, Allscripts shall refund to Customer the amount paid for such
Pharmaceutical Product.

        THE ABOVE IS A LIMITED WARRANTY AND IT IS THE ONLY WARRANTY MADE BY
ALLSCRIPTS WITH RESPECT TO THE PHARMACEUTICAL PRODUCTS. ALLSCRIPTS DOES NOT
MAKE, NOR DOES THE CUSTOMER RECEIVE, ANY OTHER WARRANTY, WHETHER EXPRESS OR
IMPLIED, AND ALL WARRANTIES OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR
PURPOSE, AND OF COMPATIBILITY WITH THE CUSTOMER'S COMPUTER HARDWARE AND/OR
SOFTWARE SYSTEM AND/OR NETWORK ARE EXPRESSLY EXCLUDED. THE FOREGOING LIMITED
WARRANTIES FOR PHARMACEUTICAL PRODUCTS ARE CUSTOMER'S SOLE AND EXCLUSIVE
WARRANTIES REGARDING THE PHARMACEUTICAL PRODUCTS AND CUSTOMER'S SOLE AND
EXCLUSIVE REMEDIES FOR BREACH OF THE FOREGOING LIMITED WARRANTIES FOR THE
PHARMACEUTICAL PRODUCTS. ALLSCRIPTS SHALL HAVE NO LIABILITY WITH RESPECT TO
ALLSCRIPTS' OBLIGATIONS UNDER THIS AGREEMENT FOR

2

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CONSEQUENTIAL, EXEMPLARY, SPECIAL, INDIRECT, OR INCIDENTAL DAMAGES, EVEN IF
ALLSCRIPTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, INCLUDING,
WITHOUT LIMITATION, DAMAGES FOR LOSS OF GOODWILL, WORK STOPPAGE, COMPUTER
FAILURE OR MALFUNCTION, OR ANY AND ALL OTHER COMMERCIAL DAMAGES OR LOSSES, OR
PROPERTY DAMAGE. THIS EXPRESS WARRANTY IS IN LIEU OF ALL LIABILITIES OR
OBLIGATIONS OF ALLSCRIPTS FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE
DELIVERY, USE, OR PERFORMANCE OF THE PHARMACEUTICAL PRODUCTS. IN NO EVENT SHALL
ALLSCRIPTS' LIABILITY HEREUNDER, WHETHER ARISING UNDER CONTRACT, TORT OR
WARRANTY, EXCEED ALL FEES AND CHARGES PAID BY THE CUSTOMER FOR THE MOST RECENT
12 MONTH PERIOD OF THIS AGREEMENT.

CUSTOMER RESPONSIBILITY

        In addition to the Customer Responsibility provisions set forth in the
Agreement, Customer will timely comply with applicable laws and regulations
relating to the dispensing of Pharmaceutical Products.

ATTACHMENTS

        SubSchedule 1

        SubSchedule 2 (to be completed following execution of this Agreement)

        Limited Power of Attorney

Terms applicable to TouchWorks: Rx+™

        TouchWorks; Rx+ facilitates point-of-care electronic prescribing through
Allscripts' proprietary prescribing system. Customer will use its best efforts
to have all physicians at the Site input into the TouchWorks: Rx+ system all of
the original prescriptions they write at the Site, regardless of whether such
prescriptions are to be dispensed at the Site. Customer will complete the
SubSchedule 1 attached to this Schedule.

Terms applicable to BOTH FirstFill and TouchWorks: Rx+

        Customer will be responsible for the assignment of access and usage
privileges to Users of the Product. Such assignment shall be in conformity with
applicable laws and regulations, including but not limited to those related to
proper licensure of Users. Customer will be responsible for ensuring that the
licensing information and the dates for permitted use of the Product are
correctly entered and updated. Allscripts is not responsible for the granting or
monitoring of user privileges to the Product nor for any incorrect entry or lack
of updating of licensing information by Customer.

        Because of the rapidly changing legal and regulatory environment
(particularly with regard to state requirements applicable to electronic
prescribing and dispensing of medication), the information in the Product may
not be current, and accordingly, Customer should not rely solely upon the
Product for such information. In particular, Customer is solely responsible for
knowing and complying with all applicable state laws and regulations with
respect to faxing or electronically transmitting a prescription.

        The laws of each state may vary on their treatment of the Drug
Enforcement Agency's ("DEA") classes of drugs. Customer is responsible for
verifying that the DEA class is correct for each prescription that Customer or
its permitted Users transmit via electronic transmission. With respect to
generic drugs, Customer is responsible for verifying that generic drugs, offered
in their respective classes, are properly classified according to FDA
regulations and guidelines. In prescribing generic drugs using the Product,
Customer accepts sole responsibility for the prescription of the generic drug

3

--------------------------------------------------------------------------------

for the patient, the complete review of the drug, and an understanding of its
proper uses. In selecting a generic drug, the Customer accepts sole
responsibility for any payor issues arising due to classification of the generic
drugs.

        With respect to Drug Utilization Review (including, but not limited to,
Drug to Drug interactions, Drug to Food interactions, Drug to Alcohol
interactions, Dose Checking, Allergy Checking, and Prior Adverse Reaction
Screening), the presence or absence of any warning through the Product does not
imply that the drug(s) being prescribed, or having been prescribed, is or are
suitable or safe for the patient being prescribed to, or any other patient. The
clinical information presented by the Product is generalized and may not be
appropriate for any given patient.

        CUSTOMER HAS FULL RESPONSIBILITY FOR THE CARE AND WELL BEING OF ITS
PATIENTS, AND ANY RELIANCE BY CUSTOMER UPON THE PRODUCT SHALL NOT DIMINISH THAT
RESPONSIBILITY.

4

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FirstFill and TouchWorks: Rx+
SubSchedule 1

USERS

User Name

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DEA #

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Site

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Rx+

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First
Fill

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Check
Only if
Funded

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Third Party
Funder

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5

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FirstFill™ Schedule
SubSchedule 2—Data Items—Credentials
Phone 800-654-0889—New Site Team

INSTALLATION SITE INFORMATION

--------------------------------------------------------------------------------

Name (If different from Customer Name

--------------------------------------------------------------------------------

Street Address

--------------------------------------------------------------------------------

City, State, Zip

--------------------------------------------------------------------------------

Phone   Fax    
Indicated below are items that must be gathered following execution of the
Agreement and will then become part of this Agreement:
o
 
A copy of this site's professional liability insurance with a minimum $1 million
per loss event and $3 million any one person policy
o
 
A signed Limited Power of Attorney (Must be attached to the Agreement at the
time of execution)
o
 
A copy of ALL Physician State Licenses
o
 
A copy of ALL Physician DEA certificates, 1 with a matching address to this
FirstFill™ Clinic
o
 
Federal Tax Id used to submit medical claims:
Format: XX-XXXXXXX
o
 
What is the site's Practice Management System?        

--------------------------------------------------------------------------------

 
 
What version is this site's Practice Management System?
 
             

--------------------------------------------------------------------------------

 
 
Who is the contact person to discuss extracting this site's patient demographic
records?
 
 

--------------------------------------------------------------------------------

 
  YES

--------------------------------------------------------------------------------

  NO

--------------------------------------------------------------------------------

Does this client require an interface?        
If yes, has the Interface Request Form been completed?
 
 
 
 
Has the Network Profile been completed?
 
 
 
 
Is Site a LAN (local area network)
 
 
 
 
Is Site a WAN (wide area network)
 
 
 
 

The TouchWorks: Rx+/FirstFill System requires a dedicated phone line. Please
contact your local vendor, if necessary, to arrange for installation.

6

--------------------------------------------------------------------------------

LIMITED POWER OF ATTORNEY

        The undersigned,                        , hereby appoints
Allscripts, Inc. as attorney-in-fact of the undersigned to act for it and in its
name solely to do all or any of the following:

        1.    To sign, seal, execute, deliver and/or acknowledge, and to bind
the undersigned pursuant to, all contracts, agreements and other documents and
instruments (collectively, the "Agreements") with pharmacy benefit managers and
other third party payers (collectively, "Payers") as are required by any Payer
for such Payer to accept pharmaceutical claims from the undersigned, and which
Agreements may include an agreement on the part of the undersigned to accept
such Payer's reimbursement rate with respect to such pharmaceutical claims; and

        2.    To execute all necessary instruments to carry out and perform any
of the powers stated above, and to do any other acts requisite to carrying out
such powers.

        Any party to whom this Power of Attorney is presented is hereby
authorized to honor, receive and give effect to all instruments signed pursuant
to the foregoing authority and the undersigned will indemnify and save each such
party harmless from any loss suffered, or liability incurred by it in acting in
good faith in accordance with this Power of Attorney, prior to its receipt of
written notice of any termination of this Power of Attorney, whether such
termination is by operation of law or otherwise.

        Neither Allscripts, Inc. nor any attorney-in-fact substituted under this
power shall incur any liability to the undersigned for acting or refraining from
acting under this power, except for such attorney's own willful misconduct or
gross negligence.

        Any reproduced copy of this signed original shall be deemed to be an
original counterpart of this Power of Attorney.

        This Power of Attorney is governed by Illinois law.

        This Power of Attorney shall terminate upon receipt by Allscripts, Inc.
from the undersigned of a written notice of revocation of this Power of
Attorney. The undersigned shall have the right to revoke this Power of Attorney
at any time.

        IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney
this            day of                        , 200    .

 
 

--------------------------------------------------------------------------------

[Name of Provider]

7

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[ALLSCRIPTS LOGO]   TOUCHWORKS SYSTEM SCHEDULE
ADDITIONAL TERMS AND CONDITIONS
 
 
Customer Name
 

--------------------------------------------------------------------------------

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer.") This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the Products noted herein, it modifies, supplements and amends
the Agreement, and in the event of any inconsistency between the terms of this
Schedule and the terms of the Agreement, the terms of this Schedule shall govern
and control. In all other respects, the Agreement is and shall remain in full
force and effect. Unless expressly indicated to the contrary hereinbelow, the
defined terms used in the Schedule shall have the meanings ascribed to them in
the Agreement.

Terms applicable to TouchWorks: Physician Homebase™

        Advertisements/Links To Or From Third Party Websites    Allscripts may
provide advertisements and/or links to other World Wide Web sites or resources
via the TouchWorks: Physician Homebase product. UNLESS EXPRESSLY STATED BY
ALLSCRIPTS, ALLSCRIPTS DOES NOT RECOMMEND OR ENDORSE THE USE OF ANY THIRD PARTY
WEBSITES, RESOURCES, PRODUCTS OR SERVICES OF ANY PERSON. ALLSCRIPTS ASSUMES NO
LIABILITY TO CUSTOMER, CUSTOMER'S AUTHORIZED USERS OR ANYONE ELSE FOR CUSTOMER'S
OR CUSTOMER'S AUTHORIZED USERS', USE OF ANY THIRD PARTY WEBSITES,
ADVERTISEMENTS, RESOURCES, PRODUCTS OR SERVICES ACCESSABLE VIA TOUCHWORKS:
PHYSICIAN HOMEBASE. Customer acknowledges and agrees that Allscripts shall not
be responsible or liable for any loss or damage of any kind incurred in
connection with any such third party websites, advertisements, products,
services or resources or as the result of the presence of such third parties or
links on TouchWorks: Physician Homebase.

        Content    Any content available via the TouchWorks: Physician Homebase
product is not a substitute for the professional judgment of healthcare
professionals in diagnosing and treating patients. Allscripts does not give
medical advice nor does it provide medical or diagnosis services. Allscripts is
not responsible for the accuracy, timeliness, completeness, appropriateness or
helpfulness of any content. Reliance by Customer and Customer's Users upon
information and content obtained through TouchWorks: Physician Homebase is
solely at the risk of Customer and Customer's Users.

        Customer's Content    Allscripts may place Customer's tradename or logo
and links to other content requested by Customer on the TouchWorks: Physician
Homebase product. Customer shall provide Allscripts with all materials necessary
to customize the TouchWorks: Physician Homebase product in a format specified by
Allscripts. Customer assumes sole responsibility for (a) acquiring any
authorization(s) necessary for hypertext links to third party web sites, and
(b) ensuring that Customer's tradename, logo and any hypertext links do not
infringe or violate any right of any third party. Allscripts reserves the right,
after notice to Customer, but in Allscripts' sole discretion, to exclude or
remove from the TouchWorks: Physician Homebase product any hypertext links to
third party web sites, Customer's tradename or logo, or other content supplied
by Customer which in Allscripts' sole reasonable discretion, may violate or
infringe any law or third party rights or which otherwise exposes or potentially
exposes Allscripts to civil or criminal liability or public ridicule. Customer
shall not request that Allscripts place or cause to be placed on the TouchWorks:
Physician Homebase product any content containing any content or materials that
are obscene, threatening, malicious, which infringe on or violate any applicable
law or regulation or any proprietary, contract, moral, privacy or other third
party right, or which otherwise exposes, or potentially exposes, Allscripts to
civil or criminal liability.

1

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Terms applicable to TouchWorks: Charge™

        TOUCHWORKS: CHARGE CONTAINS FUNCTIONS SUPPORTING THE PREPARATION AND
SUBMISSION OF CLAIMS. CUSTOMER IS SOLELY RESPONSIBLE (AND ALLSCRIPTS IS NOT
RESPONSIBLE) FOR THE PROPER, COMPLETE AND ACCURATE SUBMISSION OF CLAIMS,
INCLUDING WITHOUT LIMITATION THE DETERMINATION OF PROPER BILLING AND DIAGNOSIS
CODES AND THE MAINTENANCE OF PATIENT MEDICAL RECORDS CONTAINING APPROPRIATE
DOCUMENTATION OF THE SERVICES BILLED. ALLSCRIPTS SHALL HAVE NO LIABILITY
WHATSOEVER FOR IMPROPER CLAIMS SUBMITTED BY CUSTOMER AS A RESULT OF CUSTOMER'S
USE OR MISUSE OF TOUCHWORKS: CHARGE. CUSTOMER AGREES TO INDEMNIFY AND HOLD
HARMLESS, ALLSCRIPTS AND ITS SUPPLIERS FROM AND AGAINST ANY AND ALL CLAIMS,
DAMAGES OR PENALTIES ARISING OUT OF OR RELATED TO CUSTOMER'S MISUSE OF
TOUCHWORKS: CHARGE.

        CUSTOMER MAY NOT USE TOUCHWORKS: CHARGE TO PERFORM MEDICAL DIAGNOSTIC
FUNCTIONS, SET TREATMENT PROCEDURES OR SUBSTITUTE FOR THE MEDICAL JUDGMENT OF A
PHYSICIAN OR QUALIFIED HEALTHCARE PROVIDER. WHEN SELECTING A NARRATIVE CONDITION
OR CODED DIAGNOSIS (ICD-9-CM), CUSTOMER MUST MAKE AN INDEPENDENT AND INFORMED
JUDGMENT, BASED UPON THE PATIENT'S CONDITION AND SYMPTOMS AND/OR A PHYSICIAN'S
SUBMITTED DIAGNOSIS, TO SELECT A DIAGNOSIS CODE APPROPRIATE FOR THAT PATIENT.
NEITHER ALLSCRIPTS NOR ITS LICENSORS MAKE ANY REPRESENTATION OR WARRANTY
REGARDING THE APPROPRIATENESS OF ANY OF THE NARRATIVE OR CODED DIAGNOSIS CODES
DISPLAYED FOR ANY OR ALL PATIENTS.

        SINCE IT IS POSSIBLE THAT A PAYOR'S LOCAL MEDICAL REVIEW POLICIES MAY BE
IN EFFECT PRIOR TO THEIR RECEIPT OR UPDATE BY ALLSCRIPTS OR ITS LICENSORS,
CUSTOMER, AS A PROVIDER UNDER FEDERAL HEALTH CARE PROGRAMS, ASSUMES
RESPONSIBILITY FOR THE ACCURACY OF ALL CLAIMS SUBMITTED FOR SERVICES PERFORMED
FOR MEDICARE BENEFICIARIES.

        AMA CPT License    Customer represents that it has an electronic media
license from the AMA or an authorized reseller for the most recent version of
the Physicians' Current Procedural Terminology for each User of TouchWorks:
Charge. If Customer does not have such a license, additional fees shall be
charged.

Terms applicable to TouchWorks: Order™

        CUSTOMER MAY NOT USE TOUCHWORKS: ORDER TO PERFORM MEDICAL DIAGNOSTIC
FUNCTIONS, SET TREATMENT PROCEDURES OR SUBSTITUTE FOR THE MEDICAL JUDGMENT OF A
PHYSICIAN OR QUALIFIED HEALTHCARE PROVIDER. WHEN SELECTING A NARRATIVE CONDITION
OR CODED DIAGNOSIS (ICD-9-CM), CUSTOMER MUST MAKE AN INDEPENDENT AND INFORMED
JUDGMENT, BASED UPON THE PATIENT'S CONDITION AND SYMPTOMS AND/OR A PHYSICIAN'S
SUBMITTED DIAGNOSIS, TO SELECT A DIAGNOSIS CODE APPROPRIATE FOR THAT PATIENT.
NEITHER ALLSCRIPTS NOR ITS LICENSORS MAKE ANY REPRESENTATION OR WARRANTY
REGARDING THE APPROPRIATENESS OF ANY OF THE NARRATIVE OR CODED DIAGNOSIS CODES
DISPLAYED FOR ANY OR ALL PATIENTS.

        SINCE IT IS POSSIBLE THAT A PAYOR'S LOCAL MEDICAL REVIEW POLICIES MAY BE
IN EFFECT PRIOR TO THEIR RECEIPT OR UPDATE BY ALLSCRIPTS OR ITS LICENSORS,
CUSTOMER, AS A PROVIDER UNDER FEDERAL HEALTH CARE PROGRAMS, ASSUMES
RESPONSIBILITY FOR THE ACCURACY OF ALL CLAIMS SUBMITTED FOR SERVICES PERFORMED
FOR MEDICARE BENEFICIARIES.

2

--------------------------------------------------------------------------------

Terms applicable to TouchWorks: Note™

        The Medcin nomenclature and its related files are a work in progress,
are not complete, and will always contain errors due to the constant changes in
the field of medicine as it evolves. The Medcin Expert file contains diagnostic
information to support a process called Intelligent Prompting, the sole intent
of which is to provide a list containing some relevant findings for the
documentation of what the provider has already done. The Intelligent Prompting
list, or any other list provided by Medcin or by applications using Medcin,
should never be used for decision support as it contains tests, therapy and
other items which, although relevant for some patients, would be harmful or even
fatal for other patients. The findings prompted by the Intelligent Prompting
option are for purposes of documentation only and are not meant to suggest any
procedures, medications or physical findings for the patient.

        Customer agrees that the sole and exclusive responsibility for any
medical decisions or actions with respect to the patient's medical care and for
determining the accuracy, completeness, or appropriateness of any diagnostic,
clinical, billing, or medical information provided by the program and any
underlying clinical database resides solely with the health care provider.
Allscripts and Medicomp Systems, Inc. assume no responsibility for how such
materials are used. The choice with regard to when and how to use this program
and any database for patient medical records is the health care provider's
responsibility and this program and any database is to be used at the health
care provider's discretion. Customer understands and agrees that the
responsibility for the medical treatment, and the billing for such treatment,
rests with the health care provider and revolves around the health care
provider's judgment and the health care provider's analysis of the patient's
condition. In addition, the Customer agrees that the Intelligent Prompting
Option is a tool available to the health care provider for augmenting the
documentation of the patient's electronic medical records and is not intended in
any way to eliminate, replace, or substitute for, in whole or in part, the
health care provider's judgment and analysis of patient's condition.

Terms applicable to TouchWorks: Patient Ed®

        Customer will maintain a current e-mail address and provide it to
Allscripts. The term of the subscription for the Product will begin on the date
that an "Activation Code" is issued by Allscripts, which will promptly follow
receipt of Customer's e-mail address.

        Customer will be subject to the terms and conditions of the EULA
accompanying the Product for the initial subscription term, as amended for any
renewal term. Allscripts will notify Customer of updates to the EULA by e-mail
or other timely means of communication.

Terms applicable to TouchWorks: Pocket Library™

        Customer will maintain a current e-mail address and provide it to
Allscripts. The term of the subscription for each title of the Product will
begin on the date that an "Activation Code" is issued by Allscripts, which will
promptly follow receipt of Customer's e-mail address.

        Customer will be subject to the terms and conditions of the EULA
accompanying the Product and each title of the Product for the initial
subscription term, as amended for any renewal term. Allscripts will notify
Customer of updates to the EULA by e-mail or other timely means of
communication.

Terms applicable to ASP Services

        ASP Services    Allscripts shall host, directly or through a third
party, the Allscripts Products to be delivered on an ASP basis (the "Hosted
Products") and shall make the Hosted Products accessible to Customer over the
Internet, using the protocols and tools of the world wide web. In connection
with rendering the ASP Services to Customer, Customer grants us a non-exclusive,
royalty-free license during the Term to edit, modify, adapt, translate, exhibit,
transmit, participate in the transfer of,

3

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reproduce, create derivative works from, distribute, perform, display and
otherwise use any content provided by Customer to Allscripts to customize the
Hosted Products.

        Availability of Hosted Products The Hosted Products shall be accessible
to Customer over the Internet twenty-four (24) hours a day, seven (7) days a
week, except for scheduled maintenance, testing of the Hosted Products or the
ASP network, downtime required for repairs, and for any loss or interruption due
to causes beyond Allscripts' control or causes which are not reasonably
foreseeable by Allscripts, including, but not limited to, interruption or
failure of telecommunication or digital transmission links and Internet
slow-downs or failures. In the event of any loss or interruption of the
availability of the Hosted Products, Customer's sole and exclusive remedy and
Allscripts' sole and exclusive liability shall be as follows: for loss or
interruption of availability of Hosted Products that exceeds a continual period
of twenty-four (24) hours and is due to causes other than (i) scheduled
maintenance and required repairs, (ii) causes beyond Allscripts' control, or
(iii) causes which are not reasonably foreseeable by Allscripts, including but
not limited to, interruption or failure of telecommunication or digital
transmission links and Internet slow-downs or failures, Customer shall receive a
credit against future ASP Services equal to a pro rata portion of ASP Services
fees for the period of downtime.

        Third Party Charges and Payment    Customer is responsible for any
charges Customer or Customer's Users or anyone using a username or password of
Customer or Customer's Users, incur to access Hosted Products, such as telephone
and equipment charges, and fees charged by an internet access provider or other
third party service, or for access to and use of websites of third parties
accessible via the Hosted Products.

4

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[ALLSCRIPTS LOGO]   AMENDMENT TO TOUCHWORKS™ SYSTEM AGREEMENT

 
 
Customer Name:
       

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    Customer Account Number:        

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        This AMENDMENT to the TOUCHWORKS™ SYSTEM AGREEMENT or CHANNELHEALTH
INCORPORATED TERMS AND CONDITIONS OF USE dated [INSERT DATE OF ORIGINAL
CONTRACT] ("Agreement") is made as of the latter of Customer's or Allscripts'
execution below ("Effective Date") by and between Customer identified in the
signature area below and Allscripts, Inc., directly and/or through its affiliate
Channelhealth Incorporated, both Delaware corporations (collectively,
"Allscripts") and both being affiliates of Allscripts Healthcare
Solutions, Inc., a Delaware corporation.

        Pursuant to this Amendment, Allscripts agrees to add the Site(s),
provide and deliver to Customer the hardware ("Equipment") and/or services
("Services") listed on any schedules attached hereto, and to deliver, install,
and maintain those modules of the proprietary software selected in the box below
("Software") (collectively, "Products") and to grant to Customer a license to
use Software pursuant to the terms and conditions set forth in the Agreement and
as otherwise set forth below and on any Schedules attached to the Agreement
and/or this Amendment. Customer agrees to use the Equipment, to accept the
license for the Software, and pay the requisite fees for the Software,
Equipment, and the Services rendered by Allscripts.

 
 
Equipment—See Equipment Schedule

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                Services—See Services Schedule

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    TouchWorks Rx+™       TouchWorks Note™

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            FirstFill™       TouchWorks PATIENTED®

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            TouchWorks Physician Homebase™       TouchWorks Pocket Library™

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            TouchWorks WorkFlow™       Titles:

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                    TouchWorks Charge™           DrugGuide™

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        TouchWorks Document™           PediaStat®

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        TouchWorks Dictate™           Pediatric DrugGuide™

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        TouchWorks Result™           Geriatric DrugGuide™

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        TouchWorks Order™           Pocket Anatomy™

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                    Pocket Exercises™        

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            ASP Services            

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Check One
(applies to all Software unless noted otherwise)

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  License Type

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    Subscription License coterminous with current subscription term in the
Agreement.

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Term License, coterminous with the term in the Agreement, for a maximum of
                         Users as reflected on the attached Payment Schedule.

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        The general terms and conditions set forth in the Agreement will apply
to each Product set forth above, in addition to the specific terms and
conditions set forth in the separate Schedule attached to the Agreement and/or
this Amendment for each Product checked above, including but not limited to the
Payment Schedule attached to this Amendment. The terms and conditions of a
separate Schedule will control with respect to that Product in the event of a
specific conflict with these general terms. In the event of any conflict between
the terms and conditions of this Amendment and the Agreement, the

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terms and conditions of this Amendment shall control. As used hereafter,
reference to Products will mean the Product types checked above as of the
Effective Date of this Amendment.

        Except as modified by this Amendment, all other terms and conditions of
the Agreement, as previously amended, remain unchanged, in full force and
effect.

        IN WITNESS WHEREOF, authorized representatives of the parties have
signed this Agreement

Customer:   Allscripts:    

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        By:       By:        

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Name:       Name:        

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Title:       Title:        

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Date:       Date:        

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Business Address:  

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  Business Address:   2401 Commerce Drive, Libertyville, IL 60048   

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  Sales Executive:     

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Fax:       Fax:   800-548-5160    

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        e-mail:                

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Attachments

        •    Site Schedule                        •    Equipment Schedule
•    Services Schedule            •    Payment Schedule            •    Product
Schedules

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SITE SCHEDULE

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer."). This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the Products, it modifies, supplements and amends the Agreement,
and in the event of any inconsistency between the terms of this Schedule and the
terms of the Agreement, the terms of this Schedule shall govern and control. In
all other respects, the Agreement is and shall remain in full force and effect.
Unless expressly indicated to the contrary hereinbelow, the defined terms used
in the Schedule shall have the meanings ascribed to them in the Agreement.

        Customer agrees to use the Software only in accordance with its
directions for use and only at the address(es) identified below (each of which
will use ALL Products selected in the box on the first page of the Agreement,
unless indicated otherwise below).

Site Name and Location

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  Exceptions to Product Use
(Specify ONLY the Products selected on page 1 that the Site
WILL NOT be using)

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Name:
 
 
 
 
 
 
 
 
 
 
 
     

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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Name:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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Name:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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Name:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Address:
 

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City:
 
 
 
State:
 
 
 
Zip Code:
 
 
 
 
 
 

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Phone Number:
 

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Fax Number:
 

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EQUIPMENT SCHEDULE

        THIS SCHEDULE is made as of [date] (the "Effective Date"), by and
between Allscripts and                        ("Customer.") This Schedule is a
part of the TouchWorks System Agreement dated [date] (the "Agreement"), and,
with respect to the Products, it modifies, supplements and amends the Agreement,
and in the event of any inconsistency between the terms of this Schedule and the
terms of the Agreement, the terms of this Schedule shall govern and control. In
all other respects, the Agreement is and shall remain in full force and effect.
Unless expressly indicated to the contrary hereinbelow, the defined terms used
in the Schedule shall have the meanings ascribed to them in the Agreement.

[Insert hardware configuration for purchased equipment]

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SERVICES SCHEDULE

        THIS SCHEDULE is made as of [insert current date] (the "Effective
Date"), by and between Allscripts and [insert customer name] ("Customer.") This
Schedule is a part of the Amendment to the TouchWorks System Agreement dated
[insert current date] (the "Agreement"), and, with respect to the Products, it
modifies, supplements and amends the Agreement, and in the event of any
inconsistency between the terms of this Schedule and the terms of the Agreement,
the terms of this Schedule shall govern and control. In all other respects, the
Agreement is and shall remain in full force and effect. Unless expressly
indicated to the contrary hereinbelow, the defined terms used in the Schedule
shall have the meanings ascribed to them in the Agreement.

        Customer agrees to purchase, and Allscripts agrees to perform, the
following Services:

[insert statement of work]

Proprietary Rights

        Any work product created by Allscripts and/or Customer pursuant to this
Agreement is intended to be "work for hire" of Allscripts within the meaning of
the Copyright Act of 1976, as amended, and all such work and all copies thereof
shall be the exclusive property of Allscripts. Customer shall have no
proprietary interest in the work product developed by Allscripts, and Customer
expressly assigns to Allscripts all rights, ownership and interest (including
copyrights) to any works or things created jointly or singly by Customer within
the scope of this Agreement. The work may include creation of computer programs
and documentation, all of which shall be a part of and shall be deemed
incorporated into, the Software and Documentation belonging to Allscripts and
licensed to Customer pursuant to the Agreement, for the same license term as
granted initially for the Software and Documentation.

WARRANTIES

        CUSTOMER ACKNOWLEDGES THAT NO EXPRESS WARRANTIES HAVE BEEN MADE BY
ALLSCRIPTS EXCEPT FOR THE LIMITED WARRANTY MADE IN THE AGREEMENT. SUCH LIMITED
WARRANTY AND THE ASSOCIATED LIMITED REMEDY IS PROVIDED BY ALLSCRIPTS IN LIEU OF
ALL OTHER WARRANTIES AND REMEDIES RELATED TO PERFORMANCE OF THE WORK. ALLSCRIPTS
DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING IMPLIED WARRANTIES OF TITLE,
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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QuickLinks

EXHIBIT 10.7

Attachments
SITE SCHEDULE
EQUIPMENT SCHEDULE

TOUCHWORKS: RX+™ AND FIRSTFILL™ SCHEDULE

FirstFill and TouchWorks: Rx+ SubSchedule 1
USERS
FirstFill ™ Schedule SubSchedule 2—Data Items—Credentials Phone 800-654-0889—New
Site Team
LIMITED POWER OF ATTORNEY
Attachments
SITE SCHEDULE
EQUIPMENT SCHEDULE
SERVICES SCHEDULE
Proprietary Rights
WARRANTIES