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PRACTICEWORKS, INC.
  
    WARRANT AGREEMENT
  FOR
  FINOVA CAPITAL CORPORATION    
  

        The securities represented by this certificate and issuable upon exercise hereof have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), or under the provisions of any applicable state securities laws, but have been acquired by the registered holder hereof for purposes of investment and in
reliance on statutory exemptions under the Securities Act, and under any applicable state securities laws. These securities and the securities issued upon exercise hereof may not be sold, pledged,
transferred or assigned, nor may this Warrant be exercised, except in a transaction which is exempt under provisions of the Securities Act and any applicable state securities laws or pursuant to an
effective registration statement; and in the case of an exemption, only if the Company has received an opinion of counsel reasonably satisfactory to the Company that such transaction does not require
registration of any such securities.

 
 

VOID AFTER 5:00 P.M. ATLANTA TIME, ON JULY 17, 2006.
  WARRANT TO PURCHASE SHARES OF COMMON STOCK    
  

Original
Issue Date: July 18, 2001 

        FOR
VALUE RECEIVED, PracticeWorks, Inc., a Delaware corporation (the "Company"), hereby certifies that FINOVA Capital Corporation (the "Initial Holder" and, together with its
successors and assigns, the "Holders") is entitled, subject to the provisions of this Warrant, to purchase from the Company, at any time, or, from time to time, during the period commencing on
July 18, 2001, and expiring at 5:00 p.m. Atlanta time, on July 17, 2006 (the "Expiration Date"), up to one hundred thousand (100,000) fully paid and non-assessable
shares of Common Stock (as defined herein) at a price of $8.80 per share (the "Exercise Price"). 

        The
term "Common Stock" means the Common Stock, par value $0.01 per share, of the Company as constituted on the date hereof (the "Base Date"), together with any other equity securities
that may be issued by the Company in addition thereto or in substitution therefor. The number of shares of Common Stock to be received upon the exercise of this Warrant may be adjusted, from time to
time, as hereinafter set forth. The shares of Common Stock deliverable upon such exercise, and as adjusted, from time to time, are hereinafter referred to as "Warrant Shares" or "Warrant Stock." 

        The
term "Company" means and includes the corporation named above as well as (i) any immediate or more remote successor corporation resulting from the merger or consolidation of
such corporation (or any immediate or more remote successor corporation of such corporation) with another corporation or (ii) any corporation to which such corporation (or any immediate or more
remote successor corporation of such corporation) has transferred its property or assets as an entirety or substantially as an entirety. 

        Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of
reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall execute and deliver a Warrant of like tenor and date. Any such Warrant
executed and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time
enforceable by anyone. 

        The
Holder agrees with the Company that this Warrant is issued, and all the rights hereunder shall be held subject to, all of the conditions, limitations and provisions set forth herein. 

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1.    Exercise of Warrant.  

        A.    Subject
to the limitations set forth in Sections 9, 10 and 11 hereof, this Warrant may be exercised in whole or in part at any time, or, from time to time, on any day
during the period commencing on July 18, 2001, and expiring 5:00 p.m. Atlanta time on the Expiration Date or, if such day is a day on which banking institutions in Atlanta, Georgia are
authorized by law to close, then on the next succeeding day that shall not be such a day, by presentation and surrender of this Warrant to the Company at its principal office, with the Warrant
Exercise Form attached hereto duly executed and accompanied by payment (either in cash or by certified or official bank check, payable to the order of the Company) of the Exercise Price for the number
of shares specified in such form and instruments of transfer, if appropriate, duly executed by the Holder or his or her duly authorized attorney. The foregoing notwithstanding, in connection solely
with any exercise of this Warrant by the Holder, whether in whole or in part (unless such exercise is in connection with a Change of Control and otherwise only to the extent such exercise occurs on or
before March 4, 2003), the Holder shall present
the Company at its principal office with the Warrant Exercise Form attached hereto duly executed in connection with such exercise and, upon such presentation in connection with such exercise, the
Company shall have a period (each, a "Redemption Election Period") of five (5) Business Days to notify the Holder of the Company's election to exercise a Redemption Option under
Section 1A hereof (each, a "Redemption Notice"). If the Company fails to so deliver a Redemption Notice during the respective Redemption Election Period, or otherwise elects not to exercise a
Redemption Option, the Holder then shall present and surrender this Warrant, within a reasonable time after the expiration of the respective Redemption Election Period or receipt of notice by the
Company of the Company's election not to so exercise a Redemption Option, to the Company at its principal office accompanied by payment (either in cash or by certified or official bank check, payable
to the order of the Company) of the Exercise Price for the number of shares specified in such form and instruments of transfer, if appropriate, duly executed by the Holder or his or her duly
authorized attorney; it being agreed and understood that, in the event the Company shall have failed to so timely notify the Holder of the Company's election to exercise a Redemption Option during the
respective Redemption Election Period, or otherwise shall have elected not to exercise a Redemption Option, the record date of such exercise shall be deemed to be the date the Holder presented to the
Company the Warrant Exercise Form in accordance with this paragraph and the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon such exercise as of such
record date, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such shares of Common Stock shall not then be actually delivered to the
Holder. 

        B.    In
addition to the method of payment set forth in paragraph A. above and in lieu of a cash payment required thereunder, the Holder shall have the right to exercise
the Warrants in full or in part by surrendering this Warrant in the manner specified in paragraph A. above in exchange for the number of shares of Warrant Stock equal to the product of
(x) the number of shares as to which the Warrant is being exercised multiplied by (y) a fraction, the numerator of which is the fair market value (as defined in Section 3 below)
of the Common Stock less the Exercise Price, and the denominator of which is such fair market value. 

        C.    If
this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a Warrant evidencing the rights
of the Holder thereof to purchase the balance of the shares purchasable hereunder. 

        Upon
receipt by the Company of this Warrant, together with the Exercise Price, at its office, or by the stock transfer agent of the Company at its office, in proper form for exercise in
accordance with the terms of Sections 8 and 9 hereof, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon such exercise, notwithstanding that the stock
transfer books of 

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the Company shall then be closed or that certificates representing such shares of Common Stock shall not then be actually delivered to the Holder. 

        The
Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Common Stock on exercise of this Warrant. 

1A.  Redemption Options.  

        A.
At any time during the relevant Redemption Election Period, the Company shall have the right to redeem (each, a "Redemption") this Warrant in part (or, if such Redemption Election
Period relates to an exercise of this Warrant by the Holder in whole, in whole) on the terms and conditions set forth in this Section 1A by giving a Redemption Notice to the Holder in
accordance with Section 1 hereof (and delivery of such Redemption Notice hereunder shall be deemed to be an exercise of a Redemption). The respective Redemption Notice shall state the time and
place at which the Company shall redeem this Warrant (in whole or in part, in accordance with the foregoing) (which shall in no event be later than five (5) days following delivery of the
respective Redemption Notice) (each, a "Redemption Closing"). 

        B.    Upon
delivery of the respective Redemption Notice (the date of such delivery also being the respective "Delivery Date"), the Company and the Holder shall promptly (and in
any event within 3 days after the delivery of the respective Redemption Notice) meet for the purpose of determining the respective Redemption Price as of the date of delivery of the relevant
Warrant Exercise Form. At the respective Redemption Closing, the Company shall be obligated to purchase this Warrant in part (according to the number of shares subject to the Warrant Exercise Form),
the Holder shall deliver to the Company this Warrant and the Company shall deliver to the Holder (i) the product of (x) the respective Redemption Price (subject to adjustment pursuant to
the next sentence) multiplied by (y) the number of shares of Warrant Stock set forth in the Warrant Exercise Form, by cashier's or certified check payable to the Holder or by wire transfer of
immediately available funds to an account designated by the Holder, and (ii) a replacement Warrant executed by the Company evidencing the rights of the Holder thereof to purchase the balance of
the shares purchasable hereunder. The Holder may deliver to the Company a portion of this Warrant (rather than shares of Warrant Stock) in satisfaction of its obligations hereunder, in which event the
respective Redemption Price shall be reduced by the aggregate respective Exercise Price. In the event that the Company is unable or fails for any reason to consummate any Redemption for cash on the
terms and within the time periods set forth herein, the Company's respective Redemption rights under this Section 1A shall automatically terminate. 

For
purposes hereof, the following terms have the following meanings: 

        "Change of Control" means (i) the acquisition by any person or entity of beneficial ownership, directly or indirectly, through a
purchase, merger or other acquisition, transaction or series of transactions, of shares of capital stock of the Company entitling such person to exercise 50% or more of the total voting power of all
shares of capital stock of the Company entitled to vote generally in the elections of directors; or (ii) any consolidation or merger of the Company with or into any other entity, any merger of
another entity into the Company, or any conveyance, sale, transfer, or lease of all or substantially all of the assets of the Company, other than any such transaction (x) which does not result
in any reclassification, conversion, exchange or cancellation of outstanding shares of Common Stock, and (y) pursuant to which the holders of the total voting power of all shares of capital
stock of the Company
entitled to vote generally in elections of directors immediately prior to such transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares
of capital stock of the continuing or surviving corporation entitled to vote generally in 

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elections of directors of the continuing or surviving corporation immediately after such transaction. 

        "Redemption Price" means as to the Common Stock, the average of the closing prices of the Company's common stock sales on all domestic
securities exchanges on which such security may at the time be listed or quoted, including for this purpose, The Nasdaq Stock Market, or, if there have been no sales on any such exchange on any day,
the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day such security is not so listed or quoted, the average of the highest bid and
lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any similar successor organization, in
each such case averaged over a period of 21 days consisting of the day as of which "Redemption Price" is being determined and the 20 consecutive
business days prior to such day; provided that if such security is listed on any domestic securities exchange, the term "business days" as used in this sentence means business days on which such
exchange is open for trading. 

2.    Reservation of Shares.  

        The Company will at all times reserve and keep available for issuance and delivery, out of its authorized, but unissued Common Stock (or other shares of capital
stock of the Company and other securities), upon exercise of this Warrant all shares of Common Stock or other shares of capital stock of the Company (and other securities), from time to time,
receivable upon exercise of this Warrant. All such shares (and other securities) shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully paid,
non-assessable and free of all preemptive rights. 

3.    Fractional Shares. 

        No
fractional shares or script representing fractional shares shall be issued upon the exercise of this Warrant, but the Company shall pay the Holder an amount equal to the fair market
value of such fractional share of Common Stock in lieu of each fraction of a share otherwise called for upon any exercise of this Warrant. 

        For
purposes of this Section 3 the fair market value of a share of Common Stock shall be determined as follows: 

        A.    If
the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange or listed for trading on the NASDAQ system,
the current market value shall be the last reported sale price of the Common Stock on such exchange or system on the last business day prior to the date of exercise of this Warrant, or if no such sale
is made on such day or if no such sale is reported, the average closing bid and asked prices for such day on such exchange system; or 

        B.    If
the Common Stock is not so listed or admitted to unlisted trading privileges, the current market value shall be the mean of the last reported bid and asked prices
reported by the National Quotation Bureau, Inc. on the last business day prior to the date of the exercise of this Warrant; or 

        C.    If
the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current market value shall be an amount,
not less than book value thereof as of the date of exercise, determined in good faith by the Board of Directors of the Company. The Company shall provide the Holder prompt notice of any such
determination, which shall specify the basis for such valuation in detail reasonably acceptable to the Holder. If the Holder objects to any such valuation by the Board of Directors of the Company, the
Holder shall notify the Company of such objection within twenty (20) days of notice thereof. Thereafter, the 

4

 

Holder and the Company shall use their commercially reasonable efforts to determine the current market value. If such parties are unable to reach agreement within twenty (20) business days of
the notice of objection by the Holder, then either the Company or the Holder may give notice to the other party that it is retaining a separate independent investment banking firm to determine the
current market value. Within ten (10) business days of such notice, the other party also may retain a separate investment banking firm. If each of the parties retains an investment banking firm
pursuant to this Section, the two firms selected by the parties shall jointly act to determine the current market value and shall deliver their opinion in writing to the Company and the Holder. If
such firms cannot jointly make such determination within thirty (30) calendar days, then, unless otherwise directed by agreement of the Company and the Holder, such firms shall choose another
independent investment banking firm, which firm shall make such determination and render such opinion. Each party shall bear the fees and expenses of any investment banking firms retained by such
party pursuant to this Warrant, with the parties splitting the fees and expenses of a third investment banking firm, if necessary. 

4.    Exchange, Transfer, Assignment or Loss of Warrant. 

        Subject
to the provisions of Section 7 hereof, this Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company,
for other warrants of different denominations, entitling the Holder or Holders thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder. 

        Upon
surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the
Company shall, without charge, execute and deliver a Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be canceled. 

        This
Warrant may be divided or combined with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent,
if any, together with a written notice specifying the names and denominations in which Warrants are to be issued and signed by the Holder hereof. 

5.    Rights of the Holder. 

        The
Holder shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or in equity, and the rights of the Holder are limited to those expressed
in this Warrant. 

6.    Anti-dilution Provisions.  

        A.    If
the Company shall at any time: 

          (i)  subdivide
its outstanding shares of Common Stock (or other securities at the time receivable upon the exercise of the Warrant) by recapitalization, reclassification or
split up thereof; or 

        (ii)  declare
a stock dividend or distribute shares of Common Stock or any other capital stock of the Company or any wholly-owned subsidiary of the Company to its
stockholders; or 

        (iii)  engage
in any other transaction in which the holders of Common Stock are entitled to receive securities or assets with respect to or in exchange for Common Stock; 

        then,
the number of shares of Common Stock subject to this Warrant immediately prior to any such event (each, an "Organic Change") shall be proportionately increased or decreased, as
appropriate, to ensure that the Holder of this Warrant thereafter will have the right to acquire and receive in lieu of or in addition to the shares of Common Stock 

5

 

immediately theretofore acquirable and receivable upon the exercise of this Warrant, such securities or assets that would have been issued or payable in such Organic Change with respect to or in
exchange for the number of shares of Common Stock which would have been acquirable or receivable upon the exercise of this Warrant as of the date of such Organic Change. To the extent that an Organic
Change involves the issuance of securities or assets of an entity other than the Company, then prior to the consummation of such Organic Change, the Company will secure from such other entity issuing
the securities or providing the assets in such Organic Change, a written agreement, in form and substance reasonably satisfactory to the Holder of this Warrant, to deliver to the Holder of this
Warrant such additional warrants or other securities of such entity in the manner contemplated by this provision. 

        Any
such adjustment and adjustment to the Exercise Price pursuant to this Section 6.A. shall be effective at the close of business on the effective date of such subdivision or
combination or if any adjustment is the result of a stock dividend or distribution then the effective date for such adjustment based thereon shall be the record date therefor. 

        Whenever
the number of shares of Common Stock purchasable upon the exercise of this Warrant is adjusted, as provided in this Section 6.A., the Exercise Price (and the exercise
price of any warrants or other instruments issued by any other entity) shall be adjusted to the nearest cent such that the total exercise price for all such instruments including this Warrant shall
equal the product of the Exercise Price immediately prior to such adjustment, multiplied by the number of shares of Common Stock purchasable upon the exercise of this Warrant immediately prior to such
adjustment. 

        B.    The
adjustments described in this Section 6., and the manner of their application, and any such adjustment may provide for the elimination or redemption of
fractional share interest. The adjustments required under this Section 6. shall apply to only successors of the Company and shall be made regardless of the number or type of successive events
requiring such adjustments. 

7.    Notices of Record Date, Etc.  

        In case: 

        A.    The
Company shall take a record of the holders of its Common Stock (or other securities at the time receivable upon the exercise of the Warrant) for any purpose; or 

        B.    Of
any recapitalization of the Company's Common Stock; or 

        C.    Of
any voluntary or involuntary dissolution, liquidation or winding up of the Company, 

then,
and in each such case, the Company shall mail or cause to be mailed to each Holder of the Warrant at the time outstanding a notice specifying, as the case may be: 

          (i)  The
date on which a record is to be taken, the purpose for which the record date is being taken, the amount and character of the dividend, distribution or right, if
any; or 

        (ii)  The
date on which such recapitalization, dissolution, liquidation or winding up is to take place, and the time, if any, is to be fixed, as to which the holders of
record of Common Stock (or such other securities at the time receivable upon the exercise of the Warrant) shall be entitled to exchange their shares of Common Stock (or such other securities) for
securities or other property deliverable upon such recapitalization. 

        Such
notice shall be mailed at least twenty (20) days prior to the date therein specified and the Warrant may be exercised prior to said date during the term of the Warrant. 

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8.    Transfer to Comply with the Securities Act of 1933. 

        This
Warrant and any Common Stock may not be sold, transferred, pledged, hypothecated or otherwise disposed of except as follows: 

        A.    To
a person who is a person to whom this Warrant or the Common Stock may legally be transferred without registration and without the delivery of a current prospectus
under the Securities Act with respect thereto and then only against receipt of an agreement of such person to comply with the provisions of this Section 8 with respect to any resale or other
disposition of such securities; or 

        B.    To
any person upon delivery of a prospectus then meeting the requirements of the Securities Act relating to such securities and the offering thereof for such sale or
disposition, and thereafter to all successive assignees. 

        In
the case of either of the foregoing, the Company shall be under no obligation to transfer this Warrant or any of the Common Stock unless and until the Company shall have received an
opinion of
counsel reasonably satisfactory to the Company that such transaction does not require registration of any such securities. Holder shall bear the cost of the preparation and review of such opinion. 

9.    Restrictions on Exercise Imposed by Federal and State Securities Laws. 

        The
Holder hereby acknowledges that neither this Warrant nor any of the securities that may be acquired upon exercise of this Warrant have been registered under the Securities Act or
under the securities laws of any state. The Holder hereby represents to the Company that this Warrant is being acquired for investment purposes and not with a view to distribution thereof or of any of
the Common Stock. 

        The
Holder acknowledges that, upon exercise of this Warrant, the securities to be issued upon such exercise may come under applicable Federal and state securities (or other) laws
requiring registration, qualification or approval of governmental authorities before such securities may be validly issued or delivered upon notice of such exercise. 

        The
Company's sole obligation to any Holder upon exercise hereof shall be to use its best efforts to obtain exemptions from registration or qualification for the issuance of such
securities under applicable state and federal securities laws, and the Holder further agrees that the issuance of such securities shall be deferred until such exemptions shall have been obtained; and
it is further agreed that the Company shall have no other obligation or liability to the Holder for non-issuance of such securities except to return the Warrant surrendered and to refund
to the Holder any consideration tendered in respect of the exercise price. With respect to any such securities, this Warrant may not be exercised by, and securities shall not be issued to, any Holder
in any state in which such exercise would be unlawful. 

        The
restrictions imposed by this Section 9 upon the exercise of this Warrant shall cease and terminate as to any particular shares of Warrant Stock: 

        A.    When
such securities shall have been effectively registered under the Securities Act and all applicable state securities laws and disposed of in accordance with the
registration statement covering such securities; or 

        B.    When,
in the opinion of counsel reasonably satisfactory to the Company such restrictions are no longer required in order to ensure compliance with the Securities Act or
under any applicable state securities laws. 

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10.  Registration Rights. 

        A.    Certain Definitions. As used in this Warrant, the following terms shall have the following respective meanings: 

        1.    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC
promulgated thereunder, all as the same shall be in effect at the time. 

        2.    "Person" shall mean any individual, partnership, corporation, trust or other entity. 

        3.    "Public Offering" means the sale of Common Stock of the Company pursuant to a registration statement under the Securities
Act. 

        4.    The
terms "register", "registered" and
"registration" refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such registration statement. 

        5.    "Registrable Securities" means: 

        (a)  The
shares of Common Stock of the Company issuable or issued upon conversion of the Warrants (the "Shares"); and 

        (b)  Any
other shares of the Company's Common Stock issued as (or issuable upon conversion or exercise of any warrant, right or other security which is issued as) a dividend
or other distribution with respect to or exchange for or replacement of the Shares, excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which a Holder's
rights under this Warrant are not assigned; 

provided, however, that Registrable Securities shall only be treated as Registrable Securities if and so long as, they have not been: (i) sold to
or through a broker or dealer or underwriter in a public distribution or a public securities transaction; or (ii) sold in a transaction exempt from the registration
and prospectus delivery requirements of the Securities Act under Section 4(i) thereof so that all transfer restrictions and restrictive legends with respect thereto are removed upon the
consummation of such sale. 

        6.    "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder, all as the same shall be in effect at the time. 

        7.    "SEC" shall mean the Securities and Exchange Commission or any other federal agency at the time administering the
Securities Act. 

        B.    Demand Rights. At any time on or after March 31, 2002, the Initial Holder may notify the Company in writing (a
"Demand Notice") that the Company file with the SEC a registration statement on Form S-3 registering all of the Registrable Securities for resale. Within thirty (30) days
following a Demand Notice, the Company shall file with the SEC a registration statement on Form S-3 registering all of the Registrable Securities for resale. The Company shall
promptly respond to any SEC comments on such registration statement and shall otherwise use its best efforts to cause such registration statement to be declared effective as soon as practicable. 

        C.    Piggyback Rights

        1.    Notice of Registration. If at any time or, from time to time, the Company shall determine to register for its own account
or the account of any stockholder of the Company 

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any of the Company's common stock in a Public Offering (other than registrations on Forms S-4 or S-8 or any successor form), the Company will: 

        (a)  Promptly
but in no event later than thirty (30) days prior to the filing of the registration statement give to the Holders written notice thereof; and 

        (b)  Include
in such registration (and any related qualification under blue sky laws or other compliance), and underwriting, all the Registrable Securities (subject to the
second paragraph under Section 10.C.2 below) specified in a written request or requests made within thirty (30) days after receipt of such written notice from the Company by any Holder. 

        2.    Underwriting. The right of any Holder to registration pursuant to this Section 10 shall be conditioned upon such
Holder's participation in such underwriting and the inclusion of Registrable Securities in the
underwriting to the extent provided herein. If any Holder proposes to distribute his securities through such underwriting, such Holder shall (together with the Company and any other Holders and any
other security holders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the managing underwriter selected for such underwriting by
the Company. 

        Notwithstanding
any other provision of this Section 10, if the managing underwriter in connection with such registration advises the Company (or the other shareholders
participating therein) in writing that, in its good faith opinion, such offering would be adversely affected in a material manner by the inclusion therein of the total number of Registrable
Securities, the Company shall so advise the Holders and the other holders distributing their securities through such underwriting pursuant to piggyback registration rights similar to this
Section 10, and the Company shall reduce the number of securities to be included in the registration and underwriting by reducing the number of Registrable Securities and other securities to be
registered for resale by the Holders and all other holders other than Crescent International Ltd., an entity organized and existing under laws of Bermuda, and Ceramco, Inc., a Delaware
corporation, in proportion, as nearly as practicable, to the respective amounts of Registrable Securities held by such Holders and any other security holders at the time of filing the registration
statement. 

        If
a Holder disapproves of the terms of any such underwriting, such Holder's sole remedy shall be to withdraw therefrom by written notice to the Company and the managing underwriter.
Such Holder shall be deemed to have withdrawn if such Holder fails to execute underwriting documents requested by the managing underwriter within the time period requested for execution of such
documents. 

        3.    Lock-up of Unregistered Shares. If a Holder elects to participate in a registration statement filed by the
Company with respect to an underwritten public offering and fifty percent (50%) or more of the Registrable Shares that it has requested to be included in such registration statements (in the
aggregate) are included in such registration statements, taken as a whole, then such Holder will not, directly or indirectly, sell, make a short sale of, grant an option for the purchase of, or
otherwise dispose of any Registrable Securities not included in the registration without the prior written consent of the Company or the underwriters for such period of time (the "Lock-up
Period") following the effectiveness of the registration (not to exceed the Maximum Lock-up Period) as may be requested by the Company and the managing underwriter. As used herein, the
term "Maximum Lock-up Period" means 180 days. The foregoing restriction is conditioned upon the Company and each of the selling shareholders included in the registration statement
being subject to the same Lock-up Period. 

        4.    Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by
it under this Section 10 prior to the effectiveness of such 

9

 

registration, whether or not any Holder has elected to include Registrable Securities in such registration. 

        5.    Termination of Piggyback Rights. The rights of any Holder to receive notice and to participate in a registration pursuant
to the terms of Section 10 shall terminate at the earliest to occur of: 

        (a)  The
date of sale by such Holder of all remaining such securities held by such Holder; or 

        (b)  The
termination of this Warrant. 

        D.  Obligations of Company. Whenever the Company is required by the provisions of this Warrant to effect the registration of the
Registrable Securities, the Company shall: 

        1.    Use
its best efforts to cause such registration statement to become effective and to remain effective until the earlier of (a) the sale of the Registrable
Securities so registered or (b) (i) with respect to the registration statement contemplated by Section 10.B. or clause (b) in the first sentence of Section 10.C.3., the
second anniversary of the date hereof, or (ii) with respect to any other registration statement, ninety (90) days subsequent to the effective date of such registration; 

        2.    Prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to make
and to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all securities proposed to be registered in
such registration statement until the earlier of the sale of the Registrable Securities so registered or ninety (90) days subsequent to the effective date of such registration statement; 

        3.    Furnish
to any Holder participating in the registration such number of copies of any prospectus (including any preliminary prospectus and any amended or supplemented
prospectus), in conformity with the requirement of the Securities Act, as such Holder may reasonably request in order to effect the offering and sale of the Registrable Securities to be offered and
sold, but only while the Company shall be required under the provisions hereof to cause the registration statement to remain current; 

        4.    If
necessary, register or qualify the Registrable Securities covered by such registration statement under the securities or blue sky laws of such states as the Holders
participating in the registration shall reasonably request, maintain any such registration or qualification current until the earlier of the sale of the Registrable Securities so registered or ninety
(90) days subsequent to the effective date of the registration statement, and take any and all other actions either necessary or advisable to enable such Holders to consummate the public sale
or other disposition of the Registrable Securities in jurisdictions where such Holders desire to effect such sales or other disposition; 

        5.    Take
all such other actions either necessary or desirable to permit the Registrable Securities held by such Holder to be registered and disposed of in accordance with the
method of disposition described herein; 

        6.    Promptly
notify Holders, at any time when a prospectus relating to the Shares being distributed is required to be delivered under the Securities Act, of the happening of
any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing and promptly prepare, file with the SEC and furnish to Holders a reasonable
number of copies of a supplement to, or an amendment of, such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Shares, such prospectus shall not include an
untrue 

10

 

statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 

        7.    Use
its best efforts to furnish, at the request of Holders or any underwriter of any distribution of the Shares, an opinion of legal counsel to the Company, covering such
matters as are typically covered by opinions of issuer's counsel in similar offerings under the Securities Act; and 

        8.    Use
its best efforts to cause all of the Shares as to which Holders shall have requested registration to be listed on any recognized securities exchange, on which the
Company's Common Stock is then listed and to maintain the currency and effectiveness of any such listings. 

        E.    Expenses of Registration. The Company shall pay all of the reasonable out-of-pocket expenses
incurred in connection with any registration statements that are initiated pursuant to this Warrant, including, without limitation, all SEC and blue sky registration and filing fees, printing
expenses, transfer agent and registrar fees, the fees and disbursements of the Company's outside counsel and independent accountants including expenses incurred in connection with any special audits
incidental to or required by such registration. 

        Any
underwriting discounts, fees and disbursements of counsel to a Holder, selling commissions, and stock transfer taxes applicable to the Registrable Securities registered on behalf of
a Holder shall be borne by the Holder of the Registrable Securities included in such registration. 

        F.    Indemnification.

        1.    The Company. The Company will indemnify Holders, each officer or director thereof, and each person controlling one or more
Holders within the meaning of Section 15 of the Securities Act, and each underwriter, if any, of the Company's securities, with respect to any registration, qualification or compliance which
has been effected pursuant to this Warrant, against all expenses, claims, losses, damages or liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering
circular or other document, or any amendment or supplement thereto, incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of any
rule or regulation promulgated under the Securities Act applicable to the Company in connection with any such registration, qualification or compliance. 

        The
Company will reimburse Holders and each person controlling one (1) or more Holders, and each underwriter, if any, for any legal and any other expenses reasonably incurred in
connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to the extent that any such
claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with written
information furnished to the Company by one or more Holders or controlling persons or underwriters seeking indemnification. 

        2.    Holders. Each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected (the "Indemnifying Holder"), indemnify the Company, each of its directors and officers and each underwriter, if any, of the Company's
securities covered by such registration statement and each person who controls the Company within the meaning of Section 15 of the Securities Act, against 

11

 

all claims, losses, damages and liabilities (or actions in respect thereof), including without limitation, any legal or other expenses reasonably incurred in connection with the investigations or
defense thereof, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other
document, or 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, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by such Indemnifying Holder, provided that the liability of each Holder shall be limited to the dollar amount of the net proceeds of the
Registrable Securities actually sold by such Holder pursuant to the registration statement. 

        3.    Defense of Claims. Each party entitled to indemnification under this Section 10 (the "Indemnified Party") shall
give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and
shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of
such claim or litigation, shall be approved by the Indemnified Party (whose approval shall
not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party's expense: provided, however, that the Indemnifying Party shall pay such expense if
representation of the Indemnified Party by counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnified Party and any other
party represented by such counsel in such proceeding; and 

        provided,
further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 10
unless the failure to give such notice is materially prejudicial to an Indemnifying Party's ability to defend such action. 

        No
Indemnifying Party, in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation. No Indemnifying Party shall be required to indemnify any Indemnified Party with respect to any settlement entered into without such Indemnifying Party's prior consent. 

        G.    Rule 144 and Rule 144A Reporting. With a view to making available the benefits of certain rules and
regulations of the SEC which may at any time permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its best efforts to: 

        1.    Make
and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act; 

        2.    File
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; 

        3.    So
long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request a written statement by the Company as to its compliance with the
reporting requirements of said Rule 144, and of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and
documents of the Company, and such other reports and documents so filed as a Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing such Holder to sell any such
securities without registration; and 

12

 

        4.    If
the Company is no longer subject to Section 13 or 15(d) of the Exchange Act, to provide to each Holder or any prospective purchaser of such Holder's Warrant or
Warrant Shares, to the extent
available, the information required to be delivered under Paragraph (d)(4) of Rule 144A ("Rule 144A") (or any similar rule then in effect) promulgated by the SEC under the
Securities Act in respect of a transaction qualifying for an exemption under Rule 144A and it will take such further action as a Holder may reasonably request, all to the extent required from
time to time, to enable such Holder to sell its Warrants or Warrant Shares without registration under the Securities Act pursuant to Rule 144A. 

        5.    This
Warrant has been acquired by the Holder as a result of the pro rata distribution by the Company of all the issued and outstanding shares of the Common Stock to the
Company's stockholders (the "Distribution"), all as described in the Company's registration statement filed with the SEC (Registration No. 333-53792). In connection with the
Distribution, InfoCure caused the Company to issue this Warrant to the Holders pursuant to Section 6 of the Warrant Agreement dated October 23, 1998 among InfoCure and the Holders (the
"Original Warrant"). The Company and the Holders acknowledge that, for purposes of Rule 144 promulgated under the Securities Act, this Warrant shall be deemed to have been acquired at the same
time as the Original Warrant. The Company and the Holders acknowledge that this position is based upon interpretations of Rule 144(d)(3)(i) issued by the Staff of the SEC, which are
subject to change. 

        H.    Termination of Rights. Upon termination of this Warrant, no party shall have any further obligation or liability hereunder
except that the provisions of Section 10 shall survive the termination of this Warrant. 

11.  Substitution of Form of Warrant. 

        In
order to facilitate the administration and orderly transfer of this and other Warrants issued by the Company, the Company shall have the right, but not the obligation, upon notice to
Holder, to require Holder to surrender this Warrant to the Company in exchange for a substituted form of Warrant containing substantially similar terms and conditions, but providing for, among other
things, administration by an independent Warrant Agent. 

12.  Legend. 

        Unless
the shares of Warrant Stock have been registered under the Securities Act, upon exercise of any of the Warrants and the issuance of any of the shares of Warrant Stock, all
certificates representing shares shall bear on the face thereof substantially the following legend, as well as any other legends necessary to comply with applicable state and federal laws for the
issuance of such shares: 

The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or under the provisions of any
applicable state securities laws, but have been acquired by the registered holder hereof for purposes of investment and in reliance on statutory exemptions under the Securities Act, and under any
applicable state securities laws. These securities may not be sold, pledged, transferred or assigned, except in a transaction which is exempt under provisions of the Securities Act
and any applicable state securities laws or pursuant to an effective registration statement; and in the case of an exemption, only if the Company has received an opinion of counsel reasonably
satisfactory to the Company that such transaction does not require registration of any such securities.

13.  Notices. 

        All
notices required hereunder shall be in writing and shall be deemed given when delivered personally, one day after being sent to the recipient by reputable overnight courier service,
or the day of transmission if sent by telecopy with a copy by reputable overnight courier service for delivery the 

13

 

next day, in each case, to (i) the Holder at its last known address and telecopy number as set forth on the records of the Company, or (ii) the Company at its principal office at 1765
The Exchange, Suite 200, Atlanta, Georgia 30339, attention: Richard E. Perlman, telecopy number: (770) 857-1300, or at such other address of which the Company or Holder has been
advised by notice hereunder. 

14.  Shareholder Information. 

        For
so long as any portion of this Warrant remains unexercised, the Company shall deliver to the Holder such reports, financial statements and other materials that the Company delivers
to its shareholders generally. Such reports, financial statements and other materials shall be sent for delivery at the same time such materials are sent to the Company's stockholders. 

15.  Applicable Law. 

        The
Warrant is issued under and shall for all purposes be governed by and construed in accordance with the laws of the State of Delaware. 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed on its behalf, in its corporate name, by its duly authorized officer, all as of the day and year first above written. 

	 	 	PRACTICEWORKS, INC.:
	

 	
 	

By:	
 	

/s/  JAMES A. COCHRAN, CFO      
 Its duly authorized officer
	

 	
 	

Address: 1765 The Exchange

Suite 200

Atlanta, Georgia 30339

14

 

WARRANT EXERCISE FORM  

        The undersigned hereby irrevocably elects to exercise the within Warrant to the extent of purchasing            
(    ) shares of Common Stock of
PracticeWorks, Inc., a Delaware corporation (the "Company"), and hereby makes payment of $                        in payment
therefor. By delivery of this Warrant Exercise Form, the Warrant holder
agrees to provide such additional information, warranties, representations, documentation, certificates, and legal opinions as may reasonably be requested by the Company or its counsel to assure
compliance with applicable laws and the terms of the Warrant and any other agreement between the Company and the undersigned. 

	 	 	
 Signature of Warrant Holder
	

 	
 	

 Signature, if jointly held
	

 	
 	

 Date
	

 	
 	

Tax ID #:

	

INSTRUCTIONS FOR ISSUANCE OF STOCK	
 	

 
	(if other than to the registered holder of the within Warrant)	 	 
	

Name: _______________________________	
 	

 
	(Please typewrite or print in block letters)	 	 
	

Address: ______________________________________________________________________
	

	

Social Security or Taxpayer Identification Number: _______________________________

15

 

ASSIGNMENT FORM  

FOR VALUE RECEIVED,                        hereby sells, assigns and transfers unto:  

NAME (PLEASE TYPEWRITE OR PRINT IN BLOCK LETTERS) 

	

Address: ______________________________________________________________________
	

	
the right to purchase Common Stock of PracticeWorks, Inc., a Delaware corporation, represented by this Warrant to the extent of shares as to which such right is exercisable and does hereby irrevocably constitute
and appoint                        Attorney, to transfer the same on the books of the Company with full power of substitution in
the premises.
	

DATED: _________________________	
 	

 
	

_______________________________________________________________________

Signature
	

_______________________________________________________________________

Signature, if jointly held

16

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PRACTICEWORKS, INC. WARRANT AGREEMENT FOR FINOVA CAPITAL CORPORATION

VOID AFTER 5:00 P.M. ATLANTA TIME, ON JULY 17, 2006. WARRANT TO PURCHASE SHARES OF COMMON STOCKUse these links to rapidly review the document

  PRACTICEWORKS, INC. 2000 STOCK OPTION PLAN As Amended and Restated as of October 16, 2001

 

PRACTICEWORKS, INC.
  2000 STOCK OPTION PLAN
  
    As Amended and Restated as of
  October 16, 2001    
  

 

TABLE OF CONTENTS    
  

 

	 

	§ 1. BACKGROUND AND PURPOSE
	

§ 2. DEFINITIONS
	 	2.1            Affiliate
	 	2.2            Board
	 	2.3            Change in Control
	 	2.4            Code
	 	2.5            Committee
	 	2.6            Director
	 	2.7            Employee
	 	2.8            Fair Market Value
	 	2.9            ISO
	 	2.10          1933 Act
	 	2.11          1934 Act
	 	2.12          Non-Committee Administrators
	 	2.13          Non-ISO
	 	2.14          Option
	 	2.15          Option Certificate
	 	2.16          Option Price
	 	2.17          Parent
	 	2.18          Plan
	 	2.19          PracticeWorks
	 	2.20          Rule 16b-3
	 	2.21          Stock
	 	2.22          Stock Grant
	 	2.23          Stock Grant Certificate
	 	2.24          SAR Value
	 	2.25          Stock Appreciation Right
	 	2.26          Stock Appreciation Right Certificate
	 	2.25          Stock Appreciation Right Certificate TC
	 	2.27          Subsidiary
	 	2.28          Ten Percent Shareholder
	

§ 3. SHARES RESERVED UNDER PLAN
	

§ 4. EFFECTIVE DATE
	

§ 5. COMMITTEE
	

§ 6. ELIGIBILITY AND ANNUAL GRANT CAPS
	

§ 7. OPTIONS
	 	7.1            Committee Action
	 	7.2            $100,000 Limit
	 	7.3            Option Price
	 	7.4            Payment
	 	7.5            Exercise Period
	 	7.6            Reload Option Grants
	

§ 8. STOCK APPRECIATION RIGHTS
	 	8.1            Committee Action
	 	8.2            Terms and Conditions
	 	8.3            Exercise

 

	

§ 9. STOCK GRANTS
	 	9.1            Committee Action
	 	9.2            Conditions
	 	9.3            Dividends and Voting Rights
	 	9.4            Satisfaction of Forfeiture Conditions
	

§ 10. NON-TRANSFERABILITY
	

§ 11. SECURITIES REGISTRATION
	

§ 12. LIFE OF PLAN
	

§ 13. ADJUSTMENT
	 	13.1          Capital Structure
	 	13.2          Corporate Transactions
	 	13.3          Fractional Shares
	

§ 14. SALE, MERGER OR CHANGE IN CONTROL
	

§ 15. AMENDMENT OR TERMINATION
	

§ 16. MISCELLANEOUS
	 	16.1          Shareholder Rights
	 	16.2          No Contract of Employment
	 	16.3          Withholding
	 	16.4          Construction
	 	16.5          Other Conditions
	 	16.6          Rule 16b-3
	 	16.7          Loans

ii

 
 

§ 1.
  BACKGROUND AND PURPOSE    
  

        The purpose of this Plan is to promote the interest of PracticeWorks by authorizing the Committee to grant Options and Stock Appreciation Rights and to make Stock
Grants to Employees and Directors, and the Non-Committee Administrators to grant Options under limited authority to Employees, in order (1) to attract and retain Employees and
Directors, (2) to provide an additional incentive to an Employee or Director to work to increase the value of Stock and (3) to provide an Employee or Director with a stake in the future
of PracticeWorks which corresponds to the stake of each of PracticeWorks' stockholders. This Plan is an amendment and restatement of the PracticeWorks, Inc. 2000 Broad-Based Stock Plan that
PracticeWorks adopted on August 10, 2000, and previously amended and restated as of December 1, 2000. 

 

§ 2.
  DEFINITIONS    
  

        2.1    Affiliate—means any organization (other than a Subsidiary) that would be treated as
under common control with PracticeWorks under § 414(c) of the Code if "50 percent" were substituted for "80 percent" in the income tax regulations under
§ 414(c) of the Code. 

        2.2    Board—means the Board of Directors of PracticeWorks. 

        2.3    Change in Control—means (1) a "change in control" of PracticeWorks of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A for a proxy statement filed under Section 14(a) of the 1934 Act, (2) a "person" (as that term is used in
Section 14(d)(2) of the 1934 Act) becomes after the effective date of this Plan the beneficial owner (as defined in Rule 13d-3 under the 1934 Act) directly or indirectly of
securities representing 50% or more of the combined voting power for election of directors of the then outstanding securities of PracticeWorks, (3) the individuals who at the beginning of any
period of two consecutive years or less constitute the Board cease for any reason during such period to constitute at least a majority of the Board, unless the election or nomination for election of
each new member of the Board was approved by vote of at least two-thirds of the members of the Board then still in office who were members of the Board at the beginning of such period,
(4) the shareholders of PracticeWorks approve any dissolution or liquidation of PracticeWorks or any sale or disposition of 50% or more of the assets or business of PracticeWorks or
(5) the shareholders of PracticeWorks approve a merger or consolidation to which PracticeWorks is a party (other than a merger or consolidation with a wholly-owned subsidiary of PracticeWorks)
or a share exchange in which PracticeWorks shall exchange PracticeWorks shares for shares of another corporation as a result of which the persons who were shareholders of PracticeWorks immediately
before the effective date of such merger, consolidation or share exchange shall have beneficial ownership of less than 50% of the combined voting power for election of directors of the surviving
corporation following the effective date of such merger, consolidation or share exchange. 

        2.4    Code—means the Internal Revenue Code of 1986, as amended. 

        2.5    Committee—means the Compensation Committee of the Board if each member of such committee comes within the
definition of a non-employee director under Rule 16b-3 or, if each such member fails to come within such definition, the Board. 

        2.6    Director—means any member of the Board who is not an employee of PracticeWorks or a Parent or Subsidiary or
Affiliate. 

1

 

        2.7    Employee—means an employee of PracticeWorks or any Subsidiary or Parent or Affiliate designated by the
Committee or by any or all of the Non-Committee Administrators who, in the judgment of the Committee or such Non-Committee Administrator acting in its absolute discretion and
in recognition of the fact that PracticeWorks intends that grants under this Plan be made on a broad basis, seems likely to play a relatively significant role directly or indirectly in the success of
PracticeWorks. 

        2.8    Fair Market Value—means (1) the closing price on any date for a share of Stock as reported by  The Wall Street Journal or, if The Wall
Street Journal no longer reports such closing price, such
closing price as reported by a newspaper or trade journal selected by the Committee or, if no such closing price is available on such date, (2) such closing price as so reported in accordance
with § 2.8(1) for the immediately preceding business day, or, if no newspaper or trade journal reports such closing price or if no such price quotation is available, (3) the
price which the Committee acting in good faith determines through any reasonable valuation method that a share of Stock might change hands between a willing buyer and a willing seller, neither being
under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts. 

        2.9    ISO—means an option granted under this Plan to purchase Stock which is intended to satisfy the requirements
of § 422 of the Code 

        2.10    1933 Act—means the Securities Act of 1933, as amended. 

        2.11    1934 Act—means the Securities Exchange Act of 1934, as amended. 

        2.12    Non-Committee Administrators—means the Chairman of the Board and the President and Chief
Executive Officer of PracticeWorks and one or more executive officers that may be designated by the Board of Directors and given authority severally to grant Options under this Plan as provided in
§ 7.1. 

        2.13    Non-ISO—means an option granted under this Plan to purchase stock which is intended to fail to
satisfy the requirements of § 422 of the Code. 

        2.14    Option—means an ISO or Non-ISO option which is granted under § 7. 

        2.15    Option Certificate—means the written certificate which sets forth the terms and conditions of an Option
granted under this Plan. 

        2.16    Option Price—means the price which shall be paid to purchase one share of Stock upon the exercise of an
Option granted under this Plan. 

        2.17    Parent—means any corporation which is a parent corporation (within the meaning of
§ 424(e) of the Code) of PracticeWorks. 

        2.18    Plan—means this PracticeWorks, Inc. 2000 Stock Option Plan as amended and restated as of
December 1, 2000, and on October 16, 2001, and as amended from time to time thereafter. 

        2.19    PracticeWorks—means PracticeWorks, Inc. and any successor to PracticeWorks, Inc. 

        2.20    Rule 16b-3—means the exemption under Rule 16b-3 to
Section 16(b) of the 1934 Act or any successor to such rule. 

        2.21    Stock—means the common stock of PracticeWorks. 

        2.22    Stock Grant—means Stock granted under § 9. 

        2.23    Stock Grant Certificate—means the written certificate which sets forth the terms and conditions of a Stock
Grant. 

2

 

        2.24    SAR Value—means the value assigned by the Committee to a share of Stock in connection with the grant of a
Stock Appreciation Right under § 8. 

        2.25    Stock Appreciation Right—means a right to receive the appreciation in a share of Stock which is granted
under § 8. 

        2.26    Stock Appreciation Right Certificate—means the written certificate which sets forth the terms and conditions
of a Stock Appreciation Right which is not granted to a Employee as part of an Option. 

        2.27    Subsidiary—means a corporation which is a subsidiary corporation (within the meaning of
§ 424(f) of the Code) of PracticeWorks. 

        2.28    Ten Percent Shareholder—means a person who owns (after taking into account the attribution rules of
§ 424(d) of the Code) more than ten percent of the total combined voting classes of Stock of either PracticeWorks, a Subsidiary or a Parent. 

 

§ 3.
  SHARES RESERVED UNDER PLAN    
  

        There shall (subject to § 13) be 8,000,000 shares of Stock reserved for issuance under this Plan, and no more than such number of shares
shall (subject to § 13) be issued in connection with the exercise of ISOs. Such shares of Stock shall be reserved to the extent that PracticeWorks deems appropriate from
authorized but unissued shares of Stock and from shares of Stock which have been reacquired by PracticeWorks. Any shares of Stock subject to an Option or to a Stock Grant which remain unissued after
the cancellation, expiration or exchange of such Option or Stock Grant or which are forfeited after issuance and any shares of Stock subject to issuance under a Stock Appreciation Right which remain
unissued after the cancellation or expiration of such Stock Appreciation Right thereafter shall again become available for issuance under this Plan. Any shares of Stock used to satisfy a withholding
obligation shall be treated as issued under this Plan and not again become available for grants under this Plan. Finally, if the Option Price under an Option is paid in whole or in part in shares of
Stock or if shares of Stock are tendered to PracticeWorks in satisfaction of any condition to a Stock Grant, such shares thereafter shall become available for issuance under this Plan and shall be
treated the same as any other shares available for issuance under this Plan. 

 

§ 4.
  EFFECTIVE DATE    
  

        The effective date of this Plan as amended and restated shall be the date of its adoption by the Board, provided the shareholder of PracticeWorks (acting at a
duly called meeting) approve such adoption within twelve months of such effective date. Any Option, or Stock Appreciation granted Right or Stock Grant made before such shareholder approval
automatically shall be granted subject to such approval. 

 

§ 5.
  COMMITTEE AND NON-COMMITTEE ADMINISTRATORS    
  

        This Plan shall be administered by the Committee and, to the extent of their authority, by the Non-Committee Administrators, or any of them. The
Committee acting in its absolute discretion shall
exercise such powers and take such action as expressly called for under this Plan and, further, the Committee shall have the power to interpret this Plan and (subject to § 14 and
§ 15 and Rule 16b-3) to take such other action in the administration and operation of this Plan as the Committee deems equitable under the circumstances, which
action shall be binding on PracticeWorks, on each affected Employee or Director and on each other person directly or indirectly affected by such action. The 

3

 

Non-Committee Administrators will have and may exercise the limited authority set forth in § 7, and action taken by the Non-Committee Administrators, or any
of them, also shall be binding on PracticeWorks, on each affected Employee and on each other person directly or indirectly affected by such action. 

 

§ 6.
  ELIGIBILITY AND ANNUAL GRANT CAPS    
  

        Only Employees who are employed by PracticeWorks or a Subsidiary or a Parent shall be eligible for a grant of ISOs under the Plan. All Employees and Directors
shall be eligible for the grant of Non-ISOs and Stock Appreciation Rights and for Stock Grants under this Plan. No Employee or Director shall be granted in any calendar year an Option to
purchase (subject to § 13) more than 1,000,000 shares of Stock or a Stock Appreciation Right based on the appreciation with respect to (subject to § 13) more than
1,000,000 shares of Stock. 

 

§ 7.
  OPTIONS    
  

        7.1    Committee Action; Non-Committee Administrators Action. The Committee acting in its absolute discretion shall
have the right to grant Options to Employees and to Directors under this Plan from time to time to purchase shares of Stock and, further, the Committee shall have the right to grant new Options in
exchange for the cancellation of outstanding Options which have a higher or lower Option Price than the new Options. In addition, the Non-Committee Administrators, or any of them acting
alone, shall have the right to grant Options to Employees for up to an aggregate of 25,000 shares of common stock per quarter; however, the Non-Committee Administrators may not grant
Options to officers subject to Section 16 of the 1934 Act, nor to officers whose compensation reaches the levels addressed by Code § 162(m). Each grant of an Option to a
Employee or Director shall be evidenced by an Option Certificate, and each Option Certificate shall set forth whether the Option is an ISO or a Non-ISO and shall set forth such terms and
conditions to such grant as the Committee acting in its absolute discretion deems consistent with the terms of this Plan; however, if the Committee grants an ISO and a Non-ISO to an
Employee on the same date, the right of the Employee to exercise the ISO shall not be conditioned on his or her failure to exercise the Non-ISO. 

        7.2    $100,000 Limit. No Option shall be treated as an ISO to the extent that the aggregate Fair Market Value of the Stock
subject to the Option which would first become exercisable in any calendar year exceeds $100,000. Any such excess shall instead automatically be treated as a Non-ISO. The Committee shall
interpret and administer the ISO limitation set forth in this § 7.2 in accordance with § 422(d) of the Code, and the Committee shall treat this
§ 7.2 as in effect only for those periods for which § 422(d) of the Code is in effect. 

        7.3    Option Price. The Option Price for each share of Stock subject to an Option shall be no less than the Fair Market Value
of a share of Stock on the date the Option is granted; provided, however, if the Option is an ISO granted to an Employee who is a Ten Percent Shareholder, the Option Price for each share of Stock
subject to such ISO shall be no less than 110% of the Fair Market Value of a share of Stock on the date such ISO is granted. 

        7.4    Payment. The Option Price shall be payable in full upon the exercise of any Option, and at the discretion of the
Committee an Option Certificate can provide for the payment of the Option Price either in cash, by check or in Stock which has been held for at least 6 months and which is acceptable to the
Committee or in any combination of cash, check and such Stock. The Option Price in addition may be paid through any cashless exercise procedure which is acceptable to the Committee or its delegate and
which is facilitated through a sale of Stock. Any payment made in Stock shall be treated as equal to the Fair Market Value of such Stock on the date the certificate for such Stock (or proper 

4

 

evidence of such certificate) is presented to the Committee or its delegate in such form as acceptable to the Committee. 

        7.5    Exercise Period. Each Option granted under this Plan shall be exercisable in whole or in part at such time or times as
set forth in the related Option Certificate, but no Option Certificate shall make an Option exercisable on or after the earlier of 

	(1)
	the
date which is the fifth anniversary of the date the Option is granted, if the Option is an ISO and the Employee is a Ten Percent Shareholder on the date the Option is granted, or

	(2)
	the
date which is the tenth anniversary of the date the Option is granted, if the Option is (a) a Non-ISO or (b) an ISO which is granted to an Employee who
is not a Ten Percent Shareholder on the date the Option is granted. 

        An
Option Certificate may provide for the exercise of an Option after the employment of an Employee or a Director's status as such has terminated for any reason whatsoever, including
death or disability. 

        7.6    Reload Option Grants. The Committee as part of the grant of an Option may provide in the related Option Certificate for
the automatic grant of an additional Option as of each date that an Employee or Director exercises the original Option if the Employee or Director in connection with such exercise uses (in accordance
with § 7.4) Stock to pay all or a part of the Option Price or uses Stock to satisfy all or a part of any related tax withholding requirement. As for each such additional Option, 

	(1)
	the
number of shares of Stock subject to the additional Option shall be no more than the number of shares of Stock used to pay the related Option Price or to satisfy the related
withholding requirement,

	(2)
	the
Option Price shall be no less than the Fair Market Value of a share of Stock on the date of the related exercise of the original Option,

	(3)
	the
additional Option shall expire no later than the expiration date for the original Option,

	(4)
	the
additional Option shall be subject to such other terms and conditions as the Committee deems appropriate under the circumstances, and

	(5)
	the
additional Option shall be evidenced by a Stock Option Certificate. 

 

§ 8.
  STOCK APPRECIATION RIGHTS    
  

        8.1    Committee Action. The Committee acting in its absolute discretion shall have the right to grant
Stock Appreciation Rights to Employees and to Directors under this Plan from time to time, and each Stock Appreciation Right grant shall be evidenced by a Stock Appreciation Right Certificate or, if
such Stock Appreciation Right is granted as part of an Option, shall be evidenced by the Option Certificate for the related Option. 

        8.2    Terms and Conditions. 

	(a)
	Stock Appreciation Right Certificate. If a Stock Appreciation Right is evidenced by a Stock Appreciation Right Certificate, such
certificate shall set forth the number of shares of Stock on which the Employee's or Director's right to appreciation shall be based and the SAR Value of each share of Stock. Such SAR Value shall be
no less than the Fair Market Value of a share of Stock on the date that the Stock Appreciation Right is 

5

 

granted.
The Stock Appreciation Right Certificate shall set forth such other terms and conditions for the exercise of the Stock Appreciation Right as the Committee deems appropriate under the
circumstances, but no Stock Appreciation Right Certificate shall make a Stock Appreciation Right exercisable on or after the date which is the tenth anniversary of the date such Stock Appreciation
Right is granted. 

	(b)
	Option Certificate. If a Stock Appreciation Right is evidenced by an Option Certificate, the number of shares of Stock on which the
Employee's or Director's right to appreciation shall be based shall be the same as the number of shares of Stock subject to the related Option and the SAR Value for each such share of Stock shall be
no less than the Option Price under the related Option. Each such Option Certificate shall provide that the exercise of the Stock Appreciation Right with respect to any share of Stock shall cancel the
Employee's or Director's right to exercise his or her Option with respect to such share and, conversely, that the exercise of the Option with respect to any share of Stock shall cancel the Employee's
or Director's right to exercise his or her Stock Appreciation Right with respect to such share. A Stock Appreciation Right which is granted as part of an Option shall be exercisable only while the
related Option is exercisable. The Option Certificate shall set forth such other terms and conditions for the exercise of the Stock Appreciation Right as the Committee deems appropriate under the
circumstances. 

        8.3    Exercise. A Stock Appreciation Right shall be exercisable only when the Fair Market Value of a share of Stock on which
the right to appreciation is based exceeds the SAR Value for such share, and the payment due on exercise shall be based on such excess with respect to the number of shares of Stock to which the
exercise relates. An Employee or Director upon the exercise of his or her Stock Appreciation Right shall receive a payment from PracticeWorks in cash or in Stock issued under this Plan, or in a
combination of cash and Stock, and the number of shares of Stock issued shall be based on the Fair Market Value of a share of Stock on the date the Stock Appreciation Right is exercised. The Committee
acting in its absolute discretion shall have the right to determine the form and time of any payment under this § 8.3. 

 

§ 9.
  STOCK GRANTS    
  

        9.1    Committee Action. The Committee acting in its absolute discretion shall have the right to make
Stock Grants to Employees and to Directors. Each Stock Grant shall be evidenced by a Stock Grant Certificate, and each Stock Grant Certificate shall set forth the conditions, if any, under which Stock
will be issued under the Stock Grant and the conditions under which the Employee's or Director's interest in any Stock which has been issued will become non-forfeitable. 

        9.2    Conditions. 

	(a)
	Conditions to Issuance of Stock. The Committee acting in its absolute discretion may make the issuance of Stock under a Stock Grant
subject to the satisfaction of one, or more than one, condition which the Committee deems appropriate under the circumstances for Employees or Directors generally or for an Employee or a Director in
particular, and the related Stock Grant Certificate shall set forth each such condition and the deadline for satisfying each such condition. Stock subject to a Stock Grant shall be issued in the name
of an Employee or Director only after each such condition, if any, has been timely satisfied, and any Stock which is so issued shall be held by PracticeWorks pending the satisfaction of the forfeiture
conditions, if any, under § 9.2(b) for the related Stock Grant. 

6

 

	(b)
	Forfeiture Conditions. The Committee acting in its absolute discretion may make Stock issued in the name of an Employee or Director
subject to one, or more than one, objective employment, performance or other forfeiture condition that the Committee acting in its absolute discretion deems appropriate under the circumstances for
Employees or Directors generally or for an Employee or a Director in particular, and the related Stock Grant Certificate shall set forth each such forfeiture condition, if any, and the deadline, if
any, for satisfying each such forfeiture condition. An Employee's or a Director's non-forfeitable interest in the shares of Stock underlying a Stock Grant shall depend on the extent to
which he or she timely satisfies each such condition. Each share of Stock underlying a Stock Grant shall be unavailable under § 3 after such grant is effective unless such share
thereafter is forfeited as a result of a failure to timely satisfy a forfeiture condition, in which event such share of Stock shall again become available under § 3 as of the date
of such forfeiture. 

        9.3    Dividends and Voting Rights. If a cash dividend is paid on a share of Stock after such Stock has been issued under a
Stock Grant but before the first date that an Employee's or a Director's interest in such Stock (1) is forfeited completely or (2) becomes completely non-forfeitable,
PracticeWorks shall pay such cash dividend directly to such Employee or Director. If a Stock dividend is paid on such a share of Stock during such period, such Stock dividend shall be treated as part
of the related Stock Grant, and an Employee's or a Director's interest in such Stock dividend shall be forfeited or shall become non-forfeitable at the same time as the Stock with respect
to which the Stock dividend was paid is forfeited or becomes non-forfeitable. The disposition of each other form of dividend which is declared on such a share of Stock during such period
shall be made in accordance with such rules as the Committee shall adopt with respect to each such dividend. An Employee or a Director also shall have the right to vote the Stock issued under his or
her Stock Grant during such period. 

        9.4    Satisfaction of Forfeiture Conditions. A share of Stock shall cease to be subject to a Stock Grant at such time as an
Employee's or a Director's interest in such Stock becomes non-forfeitable under this Plan, and the certificate representing such share shall be transferred to the Employee or Director as
soon as practicable thereafter. 

 

§ 10.
  NON-TRANSFERABILITY    
  

        No Option, Stock Grant or Stock Appreciation Right shall (absent the Committee's consent) be transferable by an Employee or a Director other than by will or by
the laws of descent and distribution, and any Option or Stock Appreciation Right shall (absent the Committee's consent) be exercisable during an Employee's or Director's lifetime only by the Employee
or Director. The person or persons to whom an Option or Stock Grant or Stock Appreciation Right is transferred by will or by the laws of descent and distribution (or with the Committee's consent)
thereafter shall be treated as the Employee or Director. 

 

§ 11.
  SECURITIES REGISTRATION    
  

        As a condition to the receipt of shares of Stock under this Plan, the Employee or Director shall, if so requested by PracticeWorks, agree to hold such shares of
Stock for investment and not with a view of resale or distribution to the public and, if so requested by PracticeWorks, shall deliver to PracticeWorks a written statement satisfactory to PracticeWorks
to that effect. Furthermore, if so requested by PracticeWorks, the Employee or Director shall make a written representation to PracticeWorks that he or she will not sell or offer for sale any of such
Stock unless a registration statement shall be in effect with respect to such Stock under the 1933 Act and any applicable state 

7

 

securities law or he or she shall have furnished to PracticeWorks an opinion in form and substance satisfactory to PracticeWorks of legal counsel satisfactory to PracticeWorks that such registration
is not required. Certificates representing the Stock transferred upon the exercise of an Option or Stock Appreciation Right or upon the lapse of the forfeiture conditions, if any, on any Stock Grant
may at the discretion of PracticeWorks bear a legend to the effect that such Stock has not been registered under the 1933 Act or any applicable state securities law and that such Stock cannot be sold
or offered for sale in the absence of an effective registration statement as to such Stock under the 1933 Act and any applicable state securities law or an opinion in form and substance satisfactory
to PracticeWorks of legal counsel satisfactory to PracticeWorks that such registration is not required. 

 

§ 12.
  LIFE OF PLAN    
  

        No Option or Stock Appreciation Right shall be granted or Stock Grant made under this Plan on or after the earlier of 

	(1)
	the
tenth anniversary of the effective date of this Plan (as determined under § 4), in which event this Plan otherwise thereafter shall continue in effect until all
outstanding Options and Stock Appreciation Rights have been exercised in full or no longer are exercisable and all Stock issued under any Stock Grants under this Plan have been forfeited or have
become non-forfeitable, or

	(2)
	the
date on which all of the Stock reserved under § 3 has (as a result of the exercise of Options or Stock Appreciation Rights granted under this Plan or the
satisfaction of the forfeiture conditions, if any, on Stock Grants) been issued or no longer is available for use under this Plan, in which event this Plan also shall terminate on such date. 

 

§ 13.
  ADJUSTMENT    
  

        13.1    Capital Structure. The number, kind or class (or any combination thereof) of shares of Stock
reserved under § 3, the number, kind or class (or any combination thereof) of shares of Stock subject to Options or Stock Appreciation Rights granted under this Plan and the Option
Price of such Options and the SAR Value of such Stock Appreciation Rights as well as the number, kind or class (or any combination thereof) of shares of Stock subject to Stock Grants granted under
this Plan shall be adjusted by the Committee in an equitable manner to reflect any change in the capital structure of PracticeWorks, including, but not limited to, such changes as stock dividends and
stock splits, or any transaction involving PracticeWorks which is not described in § 13.2. 

        13.2    Corporate Transactions. The Committee as part of any corporate transaction described in § 424(a) of
the Code shall have the right to adjust (in any manner which the Committee in its discretion deems consistent with § 424(a) of the Code) the number, kind or class (or any
combination thereof) of shares of Stock reserved under § 3. Furthermore, the Committee as part of any corporate transaction described in § 424(a) of the Code
shall have the right to adjust (in any manner which the Committee in its discretion deems consistent with § 424(a) of the Code) the number, kind or class (or any combination
thereof) of shares of Stock subject to any outstanding Stock Grants under this Plan and any related grant conditions and forfeiture conditions, and the number, kind or class (or any combination
thereof) of shares subject to Option and Stock Appreciation Right grants previously made under this Plan and the related Option Price and SAR Value for each such Option and Stock Appreciation Right,
and, further, shall have the right (in any manner which the Committee in its discretion deems consistent with § 424(a) of the Code) to make any Stock Grants and Option and Stock
Appreciation Right grants to effect the assumption of, or the substitution for, stock grants and option and stock appreciation right grants previously made by any other corporation to the extent that 

8

 

such corporate transaction calls for such substitution or assumption of such stock grants and stock option and stock appreciation right grants. 

        13.3    Fractional Shares. If any adjustment under this § 13 would create a fractional share of Stock or a
right to acquire a fractional share of Stock, such fractional share shall be disregarded and the number
of shares of Stock reserved under this Plan and the number subject to any Options or Stock Appreciation Right grants and Stock Grants shall be the next lower number of shares of Stock, rounding all
fractions downward. An adjustment made under this § 13 by the Committee shall be conclusive and binding on all affected persons. 

 

§ 14.
  SALE, MERGER OR CHANGE IN CONTROL    
  

        If (1) PracticeWorks agrees on any date (whether or not such agreement is subject to the approval of PracticeWorks' shareholders) to sell all or
substantially all of its assets or agrees to any merger, consolidation, reorganization, division or other corporate transaction in which Stock is converted into another security or into the right to
receive securities or property or if (2) a tender offer is made on any date which could lead to a Change in Control (other than a tender offer by PracticeWorks or an employee benefit plan
established and maintained by PracticeWorks) and the Board does not recommend to PracticeWorks' shareholders that the tender offer be rejected, or if (3) there otherwise is a Change in Control
of PracticeWorks on any date, then any and all conditions to the exercise of all outstanding Options and Stock Appreciation Rights on such date and any and all outstanding issuance and forfeiture
conditions on any Stock Grants on such date automatically shall be deemed satisfied in full on such date, and the Board shall have the right (to the extent expressly required as part of such
transaction) to cancel such Options, Stock Appreciation Rights and Stock Grants after providing each Employee and Director a reasonable period (which period shall not be less than 30 days) to
exercise his or her Options and Stock Appreciation Rights and to take such other action as necessary or appropriate to receive the Stock subject to any Stock Grants. 

 

§ 15.
  AMENDMENT OR TERMINATION    
  

        This Plan may be amended by the Board from time to time to the extent that the Board deems necessary or appropriate; provided, however, (1) no amendment
shall be made absent the approval of the shareholders of PracticeWorks to the extent such approval is required under applicable law and (2) no amendment shall be made to § 14
on or after any date described in § 14(1), § 14(2) or § 14(3) which might adversely affect any rights which otherwise vest on such date. The
Board also may suspend granting Options or Stock Appreciation Rights or making Stock Grants under this Plan at any time and may terminate this Plan at any time; provided, however, the Board shall not
have the right unilaterally to modify, amend or cancel any Option or Stock Appreciation Right granted or Stock Grant made before such suspension or termination unless (x) the Employee or
Director consents in writing to such modification, amendment or cancellation or (y) there is a dissolution or liquidation of PracticeWorks or a transaction described in § 13
or § 14. 

 

§ 16.
  MISCELLANEOUS    
  

        16.1    Shareholder Rights. No Employee or Director shall have any rights as a shareholder of
PracticeWorks as a result of the grant of an Option or a Stock Appreciation Right pending the actual delivery of the Stock subject to such Option or Stock Appreciation Right to such Employee or
Director. Subject to § 9.3, an Employee's or a Director's rights as a shareholder in the shares of Stock underlying a Stock Grant which is effective shall be set forth in the
related Stock Grant Certificate. 

9

 

        16.2    No Contract of Employment. The grant of an Option or a Stock Appreciation Right or a Stock Grant to an Employee or
Director under this Plan shall not constitute a contract of employment or a right to continue to serve on the Board and shall not confer on a Employee or Director any rights upon his or her
termination of employment or service in addition to those rights, if any, expressly set forth in the related Option Certificate, Stock Appreciation Right Certificate, or Stock Grant Certificate. 

        16.3    Withholding. Each Option, Stock Appreciation Right and Stock Grant shall be made subject to the condition that the
Employee or Director consents to whatever action the Committee directs to satisfy the federal tax, state tax and any other applicable tax or withholding requirements, if any, which the Committee in
its discretion deems applicable to the exercise of such Option or Stock Appreciation Right or the satisfaction of any forfeiture conditions with respect to Stock subject to a Stock Grant issued in the
name of the Employee or Director. The Committee also shall have the right to provide in an Option Certificate, Stock Appreciation Right Certificate or a Stock Grant Certificate that a Employee or
Director may elect to satisfy federal and state tax withholding requirements through a reduction in the cash or the number of shares of Stock actually transferred to him or to her under this Plan. 

        16.4    Construction. All references to sections (§) are to sections (§) of this Plan
unless otherwise indicated. This Plan shall be construed under the laws of the State of Delaware. Finally, each term set forth in § 2 shall have the meaning set forth opposite such
term for purposes of this Plan and, for purposes of such definitions, the singular shall include the plural and the plural shall include the singular. 

        16.5    Other Conditions. Each Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate may require
that an Employee or Director (as a condition to the exercise of an Option or a Stock Appreciation Right or the issuance of Stock subject to a Stock Grant) enter into any agreement or make such
representations prepared by PracticeWorks, including (without limitation) any agreement which restricts the transfer of Stock acquired pursuant to the exercise of an Option or a Stock Appreciation
Right or a Stock Grant or provides for the repurchase of such Stock by PracticeWorks. 

        16.6    Rule 16b-3. The Committee shall have the right to amend any Option, Stock Grant or Stock Appreciation
Right to withhold or otherwise restrict the transfer of any Stock or cash under this Plan to an Employee or Director as the Committee deems appropriate in order to satisfy any condition or
requirement under Rule 16b-3 to the extent Rule 16 of the 1934 Act might be applicable to such grant or transfer. 

        16.7    Loans. If approved by the Committee, PracticeWorks may lend money to, or guarantee loans made by a third party to, any
Employee or Director to finance all or a part of the exercise of any Option granted under this Plan or the purchase of any Stock subject to a Stock Grant under this Plan, and the exercise of an Option
or the purchase of any such Stock with the proceeds of any such loan shall be treated as an exercise or purchase for cash under this Plan. 

        16.8    Provision for Income Taxes. The Committee acting in its absolute discretion shall have the power to authorize and direct
PracticeWorks to pay a cash bonus (or to provide in the terms of a Stock Option Certificate, Stock Appreciation Right Certificate or Stock Grant Certificate for PracticeWorks to make such payment) to
an Employee or Director to pay all, or any portion of, his or her federal, state and local income tax liability which the Committee deems attributable to his or her exercise of an Option or Stock
Appreciation Right or his or her interest in the shares of Stock issued under his or her Stock Grant becoming non-forfeitable and, further, to pay any such tax liability attributable to
such cash bonus. 

10

 

        IN
WITNESS WHEREOF, PracticeWorks, Inc. has caused its duly authorized officer to execute this Plan to evidence its adoption of this Plan. 

PRACTICEWORKS, INC. 

By:
/s/ Dennis J. Stockwell

Its: Vice President and General Counsel

Date: October 16, 2001 

11

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