**ORION        HEALTHCORP, INC.**

**STOCK        OPTION AGREEMENT**

**(Incentive        Stock Option)**

**THIS        OPTION AGREEMENT**
**Agreement**
**        ORION HEALTHCORP, INC.**
**Company**
**Optionee**

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***WHEREAS,***
**Plan**

***WHEREAS***
**,**

***WHEREAS***
**,**

***NOW,        THEREFORE***
**,**

| **Employee/Optionee:**                |   | _____________                           |
|--------------------------------------------|--------|-----------------------------------------|
|                                       |   |                                    |
| **Total Number of                Shares:** |   | **_____________                Shares** |
|                                       |   |                                    |
| **Option Exercise                Price:**  |   | **$ .84 Per                Share**      |
|                                       |   |                                    |
| **Date of Grant:**                         |   | **June 17,                2005**        |
|                                            |   |                                    |
| **Vesting Schedule:**                      |   | % of Shares                             | Vesting Date |
|                                       |   | **25%**                                 | **June 17, 2006** |
|                                       |   | **25%**                                 | **June 17, 2007** |
|                                       |   | **25%**                                 | **June 17, 2008** |
|                                       |   | **25%**                                 | **June 17,                2009** |

| **1.** | **Grant                  of Option****.** |
|--------|-------------------------------------------|

| 1.1 | Option.                  An                  option to purchase shares of the Company’s Class A Common Stock is hereby                  granted to the Optionee (the “**Option**”). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Number                  of Shares.                  The number of shares that the Optionee can purchase upon exercise                  of the                  Option and the dates upon which the Option can first be exercised                  are set                  forth above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.3 | Option                  Exercise Price.                  The price the Optionee must pay to exercise the Option (the “**Option                  Exercise Price**”)                  is set forth above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Date                  of Grant.                  The date the Option is granted (the “**Date                  of Grant**”)                  is set forth above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Type                  of Option.                  The                  Option is intended to qualify as an Incentive Stock Option (“ISO”) within                  the meaning of Section 422 of the Internal Revenue Code of 1986,                  as                  amended from time to time, or any successor provision thereto (the                  “Code”), and                  shall be so construed; provided, however, that nothing in this                  Agreement                  shall be interpreted as a representation, guarantee or other undertaking                  on the part of the Company that the Option is or will be determined                  to be                  an ISO within the meaning of Section 422 of the Code. To the extent                  this                  Option does not qualify and is not treated as an ISO, it will be                  treated                  as a nonqualified stock option. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Construction.                  This Agreement shall be construed in accordance and consistent                  with, and                  subject to, the provisions of the Plan (the provisions of which                  are                  incorporated herein by reference) and, except as otherwise expressly                  set                  forth herein, the capitalized terms used in this Agreement shall                  have the                  same definitions as set forth in the                  Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | Condition.                  The Option is conditioned on the Optionee’s execution of this Agreement.                  If this Agreement is not executed by the Optionee, it may be canceled                  by                  the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.** | **Duration****.** |
|--------|-------------------|

**Exercise        Term**
**Section        1.7**
**Section        5**

| **3.** | **Vesting****.** |
|--------|------------------|

**Section        8**

| **4.** | **Manner                  of Exercise and Payment****.** |
|--------|----------------------------------------------------------|

| 4.1 | Delivery.                  To exercise the Option, the Optionee must deliver a completed copy                  of the                  **Option                  Exercise Form**,                  attached hereto as **Exhibit                  A**(or                  such other form as designated by the Company from time to time),                  to the                  address indicated on such form or such other address designated                  by the                  Company from time to time. The Option may be exercised in whole                  or in part                  with respect to the vested shares; provided, however, the Company                  may                  establish a minimum number of shares (e.g., 100) for which an Option                  may                  be exercised at a particular time. Within thirty (30) days of delivery                  of                  the Option Exercise Form, the Company shall deliver certificates                  evidencing the shares or shall enter the Optionee’s name as a stockholder                  of record on the books of the Company, free and clear of all liens,                  security interests, or pledges or other claims or charges, but                  subject to                  the any other requirements or restrictions provided in the Plan                  and                  provided in Section 7 of this Agreement. Contemporaneously with                  the                  delivery of the Option Exercise Form, Optionee shall tender the                  Option                  Exercise Price to the Company, by cash, check, wire transfer or                  such other                  method of payment (e.g., an approved cashless exercise program                  or delivery                  of, or attestation to, shares of Stock already owned by the Optionee                  for                  six months or such other period required by the Administrator)                  as may be                  acceptable to the Administrator pursuant to the Plan and any procedures                  or                  policies as adopted from time to                  time. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.2 | No                  Rights as Stockholder.                  The Optionee shall not be deemed to be the holder of, or to have                  any of                  the rights of a holder with respect to any Shares subject to the                  Option                  until (i) the Option shall have been exercised pursuant to the                  terms of                  this Agreement and the Optionee shall have paid the full purchase                  price                  for the number of Shares in respect of which the Option was exercised,                  and                  (ii) the Company shall have issued the Shares to or on behalf of                  the                  Optionee and the Optionee’s name shall have been entered as a stockholder                  of record on the books of the Company, whereupon the Optionee shall                  have                  full voting and other ownership rights with respect to such                  Shares. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **Termination                  of Employment****.** |
|--------|-----------------------------------------------------|

| **6.** | **Nontransferability****.** |
|--------|-----------------------------|

| **7.** | **Restrictions                  on the Option and the                  Shares.** |
|--------|----------------------------------------------------------------------------------|

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| **8.** | **Effect                  of a Covered                  Transaction.** |
|--------|------------------------------------------------------------------------|

| **9.** | **No                  Right to Continued Employment****.** |
|--------|------------------------------------------------------------|

| **10.** | **Adjustments****.** |
|---------|----------------------|

| **11.** | **Withholding                  of Taxes****.** |
|---------|------------------------------------------------|

| 11.1 | The                  Company shall have the right to deduct from any distribution of                  cash to                  the Optionee an amount equal to the federal, state and local income                  taxes                  and other amounts as may be required by law to be withheld (the                  “**Withholding                  Taxes**”)                  with respect to the Option. If the Optionee is entitled to receive                  shares                  of Stock upon exercise of the Option, the Optionee shall pay the                  Withholding Taxes (if any) to the Company in cash prior to the                  issuance of                  such shares. In satisfaction of the Withholding Taxes, the Optionee                  may                  make a written election to have withheld a portion of the shares                  issuable                  to him or her upon exercise of the Option, having an aggregate                  Fair Market                  Value equal to the minimum required Withholding Taxes, provided                  that, if                  the Optionee may be subject to liability under Section 16(b) of                  the                  Exchange Act, the election must comply with the requirements applicable                  to                  share transactions by such                  Optionee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | If                  the Optionee makes a disposition, within the meaning of Section                  424(c) of                  the Code and regulations promulgated thereunder, of any share or                  shares                  issued to him pursuant to his exercise of the ISO within the two-year                  period commencing on the day after the Grant Date or within the                  one-year                  period commencing on the day after the date of transfer of such                  share or                  shares to the Optionee pursuant to such exercise, the Optionee                  shall,                  within ten (10) days of such disposition, notify the Company thereof,                  by                  delivery of written notice to the Company at its principal executive                  office. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **12.** | **Modification                  of Agreement****.** |
|---------|-----------------------------------------------------|

| **13.** | **Severability****.** |
|---------|-----------------------|

| **14.** | **Governing                  Law****.** |
|---------|-----------------------------------------|

| **15.** | **Successors                  in Interest****.** |
|---------|--------------------------------------------------|

| **16.** | **Resolution                  of Disputes****.** |
|---------|--------------------------------------------------|

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|   | **ORION                  HEALTHCORP,                  INC.** |
|--------|--------------------------------------------------------------|
|   |                                                         |
|   | By:                                                          |
|   | Name:                                                        |
|   | Title:                                                       |
|   |                                                         |

|   |        | **OPTIONEE** |
|--------|-------------|--------------|
|   |        |         |
|   | Signature:  |         |
|   | Name:  |         |

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**EXHIBIT        A**

**OPTION        EXERCISE FORM**

|                                                      |                                                               |
|-----------------------------------------------------------|--------------------------------------------------------------------|
| Number                  of Incentive Stock Option Shares: | ________________                  Shares                           |
|  Total                  Number of Shares             |  ________________                  Shares                     |
|  Option                  Exercise Price Per Share    |  x                  $                  ____________ per Share |
|  Total                  Option Exercise Price:       |  =                  $                  ____________.          |

| ____________________________________Signature | Date:                  ___________________ |
|-----------------------------------------------|--------------------------------------------|