Document:

EX-10.2

FIRST AMENDMENT TO

AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY

This First Amendment to Agreement for the Purchase and Sale of Real Property (this
“Amendment”) is made and entered into this 27th day of May, 2010, between CNL RETIREMENT
DAS POCATELLO ID, LP, a Delaware limited partnership (“Seller”), and GRUBB & ELLIS EQUITY ADVISORS,
LLC, a Delaware limited liability company, or its assignee (“Purchaser”).

A. Seller and Purchaser are parties to that certain Agreement for the Purchase and Sale of
Real Property dated April 27, 2010 (the “Agreement”).

B. Purchaser and Seller desire to amend the Agreement in accordance with the terms and
conditions hereinafter set forth.

C. For purposes hereof, all defined terms in the Amendment shall have the same meanings herein
as given such terms in the Agreement.

For and in consideration of the above premises, the mutual promises and covenants herein
contained, and for other good and valuable consideration, the parties hereto agree as follows:

1. Review of Updated Survey. Notwithstanding anything in the Agreement to the
contrary, Purchaser shall have until June 9, 2010 (regardless of when the Updated Survey is
actually received by Purchaser) to review the Updated Survey and to deliver in writing to Seller
such objections to the Updated Survey as Purchaser may have to those matters set forth on the
Updated Survey and not disclosed in the Existing Survey and which materially and adversely affect
the use of the Property as a medical office building or which would materially and adversely affect
the financial viability of the Property. If no such written objections are delivered by Purchaser
to Seller within said period, the matters shown on the Updated Survey shall be deemed to be
approved by Purchaser. Seller shall, at Seller’s sole cost and expense, prior to the Closing Date,
satisfy any objections with respect to which Purchaser delivered written notice in accordance with
the foregoing, and provide to Purchaser such endorsements to the Title Commitment as are necessary
to delete such matters objected to by Purchaser. If Seller fails to cure such objections,
Purchaser may elect as its sole remedy to (a) terminate the Agreement with the Deposit plus
interest being returned to Purchaser, or (b) accept such title as Seller can deliver, with no
reduction in the Purchase Price other than with respect to Monetary Liens.

2. Limited Modification. Except as expressly modified above, the terms and conditions
of the Agreement shall remain in full force and effect, the terms of which are hereby ratified and
confirmed by Purchaser and Seller.

3. Counterparts. A facsimile or emailed PDF of a duly executed counterpart of
this Amendment shall be sufficient to evidence the binding agreement of the terms of this
Amendment; provided, however, any signatory to such facsimile or emailed counterpart of this
Amendment shall promptly thereafter deliver an original executed counterpart copy of this Amendment
to the other party to this Amendment.

Purchaser and Seller have executed this Amendment as of the date set forth above.

CNL RETIREMENT DAS POCATELLO ID, LP,

a Delaware limited partnership

By: CNL Retirement DAS Pocatello ID GP, LLC,

a Delaware limited liability company,

its sole general partner

By: The DASCO Companies, LLC,

a Florida limited liability company,

manager of sole general partner

By: /s/ Malcolm S. Sina

Name: Malcolm S. Sina

Title: Authorized Representative

Date: 4/23/2010

PURCHASER:

GRUBB & ELLIS EQUITY ADVISORS, LLC,

a Delaware limited liability company

By: /s/ Andrea R. Biller

Name: Andrea R. Biller

Title: Executive Vice PresidentEX-10.3

SECOND AMENDMENT TO

AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY

This Second Amendment to Agreement for the Purchase and Sale of Real Property (this
“Amendment”) is made and entered into this 8th day of June, 2010, between CNL RETIREMENT
DAS POCATELLO ID, LP, a Delaware limited partnership (“Seller”), and GRUBB & ELLIS EQUITY ADVISORS,
LLC, a Delaware limited liability company, or its assignee (“Purchaser”).

A. Seller and Purchaser are parties to that certain Agreement for the Purchase and Sale of
Real Property dated April 27, 2010, as amended by that First Amendment to Agreement for the
Purchase and Sale of Real Property dated May 27, 2010 (the “First Amendment”), (together with the
First Amendment, the “Agreement”).

B. Purchaser and Seller desire to amend the Agreement in accordance with the terms and
conditions hereinafter set forth.

C. For purposes hereof, all defined terms in the Amendment shall have the same meanings herein
as given such terms in the Agreement.

For and in consideration of the above premises, the mutual promises and covenants herein
contained, and for other good and valuable consideration, the parties hereto agree as follows:

1. Finalizing LLC Agreement. Section 2 of the First Amendment is hereby modified to
reflect that Seller and Purchaser shall not execute the LLC Agreement but shall instead agree to
the form of LLC Agreement by written or electronic notification to one another no later than June
14, 2010.

2. Limited Modification. Except as expressly modified above, the terms and conditions
of the Agreement as amended shall remain in full force and effect, the terms of which are hereby
ratified and confirmed by Purchaser and Seller.

3. Counterparts. A facsimile or emailed PDF of a duly executed counterpart of
this Amendment shall be sufficient to evidence the binding agreement of the terms of this
Amendment; provided, however, any signatory to such facsimile or emailed counterpart of this
Amendment shall promptly thereafter deliver an original executed counterpart copy of this Amendment
to the other party to this Amendment.

SIGNATURES ON FOLLOWING PAGE

Purchaser and Seller have executed this Amendment as of the date set forth above.

SELLER:

CNL RETIREMENT DAS POCATELLO ID, LP,

a Delaware limited partnership

By: CNL Retirement DAS Pocatello ID GP, LLC,

a Delaware limited liability company,

its sole general partner

By: The DASCO Companies, LLC,

a Florida limited liability company,

manager of sole general partner

By: /s/ Malcolm S. Sina

Name: Malcolm S. Sina

Title: Authorized Representative

Date: 4/23/2010

PURCHASER:

GRUBB & ELLIS EQUITY ADVISORS, LLC,

a Delaware limited liability company

By: /s/ Andrea R. Biller

Name: Andrea R. Biller

Title: Executive Vice PresidentEX-10.4

ASSIGNMENT AND ASSUMPTION

OF

PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS

THIS ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS (this “Assignment”)
dated as of June 30, 2010, is made and entered into by and between GRUBB & ELLIS EQUITY ADVISORS,
LLC, a Delaware limited liability company (“Assignor”), and G&E HC REIT II POCATELLO MOB, LLC, a
Delaware limited liability company (“Assignee”), with reference to the following Recitals:

RECITALS

A. Assignor, as Grubb & Ellis Equity Advisors, LLC, is “Buyer” under that certain Agreement
for the Purchase and Sale of Real Property effective as of April 27, 2010, as amended by that
certain First Amendment to Agreement for the Purchase and Sale of Real Property dated May 27, 2010
and further amended by that certain Second Amendment to Agreement for the Purchase and Sale of Real
Property dated June 8, 2010 (together, the “Purchase Agreement”), by and between Assignor
and CNL Retirement DAS Pocatello ID, LP, a Delaware limited partnership, wherein Assignor agreed to
purchase certain real property commonly known as the Pocatello East Medical Office Building,
located at 777 Hospital Way, Pocatello, Idaho, as more particularly described in the Purchase
Agreement, on the terms and conditions set forth in the Purchase Agreement.

B. Assignor desires to assign and transfer to Assignee, and Assignee desires to assume from
Assignor, all of Assignor’s right, title, claim and interest in, to and under the Purchase
Agreement.

NOW, THEREFORE, in consideration of the foregoing Recitals (which are incorporated herein by
this reference) and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Assignor and Assignee hereby agree as follows:

AGREEMENT

1. Assignment; Assumption. Assignor hereby assigns and transfers to Assignee all of
Assignor’s right, title, claim and interest as “Buyer” or otherwise in, to and under the Purchase
Agreement. By executing this Assignment, Assignee hereby accepts such assignment and expressly
agrees to assume and be bound by all of the provisions of the Purchase Agreement from and after the
date hereof.

2. Successors and Assigns. This Assignment shall inure to the benefit of, and be
binding upon, the successors, executors, administrators, legal representatives and assigns of the
parties hereto.

3. Counterparts. This Assignment may be executed in any number of counterparts with
the same effect as if all of the parties had signed the same document. All counterparts shall be
construed together and shall constitute one agreement.

[Signatures on next page]IN WITNESS WHEREOF, the parties have caused this Assignment to
be executed by their duly authorized representatives as of the date first written above.

ASSIGNOR:

GRUBB & ELLIS EQUITY ADVISORS, LLC,

a Delaware limited liability company

By: /s/ Jeffrey T. Hanson

Name: Jeffrey T. Hanson

Title: President and Chief Executive Officer

G&E HC REIT II POCATELLO MOB, LLC,

a Delaware limited liability company

ASSIGNEE:

By: /s/ Andrea R. Biller

Name: Andrea R. Biller

Title: Authorized SignatoryEX-10.1

STOCK PURCHASE AGREEMENT

BETWEEN

HMS HOLDINGS CORP.

(BUYER)

AND

DENNIS DEMETRE, LORI LEWIS, JOHN ALFRED LEWIS, and CHRISTOPHER BRANDON LEWIS

(SELLERS)

AND

ALLIED MANAGEMENT GROUP – SPECIAL INVESTIGATION UNIT

(COMPANY)

TABLE OF CONTENTS

Page

SCHEDULES AND EXHIBITS

	 	 	 	 	 
	Schedule 2.4(a)

Schedule 2.5

Schedule 2.7

Schedule 4.3.2

Schedule 5.6

Schedule 5.7

Schedule 5.8

Schedule 5.9

Schedule 5.10

Schedule 5.11

Schedule 5.13

Schedule 5.14

Schedule 5.15

Schedule 5.16

Schedule 5.17

Schedule 5.18

Schedule 5.19

Schedule 5.20

Schedule 5.21

Schedule 5.22

Schedule 5.23

Schedule 5.24

Schedule 5.25

Schedule 5.26

Schedule 5.29

Schedule 5.32

Schedule 5.34

Schedule 6.5

Schedule 6.7

Schedule 10.1

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	 	Estimated Closing Balance Sheet

Payoff of Certain Liabilities

Purchase Price Allocation

Retrospective Review Prospects

Financial Information

Absence of Certain Matters

Absence of Undisclosed Liabilities

Information Regarding Prior Names of Company

Tax Matters

Real Property Leases

Other Tangible Personal Property

Accounts Receivable

Accounts Payable

Proprietary Rights

Actions Regarding Proprietary Rights

Computer Software

Contracts

Adequacy of Assets

Relationship with Vendors

Labor Relations

Employee Benefit Plans and Benefit Arrangements

Employment and Compensation Arrangements

Insurance

Permits and Approvals

Litigation

Brokers

UCC Liens

Brokers

Employees

Continuing Employees and Management

EXHIBITS

Exhibit A – Shares

Exhibit B – Escrow Agreement

Exhibit C – Consultant Agreement between Buyer and Dennis Demetre 

Exhibit D – Consultant Agreement between Buyer and Lori Lewis

Exhibit E – Employment Agreement between Buyer and Shawn Salkeld

Exhibit F – Contingent Payment Form

STOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (“Agreement”) is entered into effective as of      , 2010,
by and among HMS Holdings Corp., a New York corporation (“Buyer”), and Dennis Demetre, Lori Lewis,
John Alfred Lewis, and Christopher Brandon Lewis (each a “Seller” and collectively the “Sellers “)
and Allied Management Group – Special Investigation Unit, Inc., a California corporation
(“Company’) (each a “Party” and collectively the “Parties”).

RECITALS

WHEREAS, the Sellers own the number of issued and outstanding shares (the “Shares”) of Common
Stock of the Company set forth opposite their respective names on Exhibit A. As of the Closing,
the Shares will represent 100% of the issued and outstanding shares of capital stock of the
Company.

WHEREAS, Sellers desire to sell and the Buyer desires to acquire all the Shares for the
consideration and otherwise upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and
agreements contained herein, the parties, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

As used in this Agreement, the term:

“Acquisition” means the purchase and sale of the Shares pursuant to this
Agreement.

“Actions” or “Proceedings” means any action, suit, proceeding, arbitration, or
investigation whether by a Governmental or Regulatory Authority or otherwise.

“Adjusted EBITDA” has the meaning assigned in Section 4.5.

“Affiliate” means, with respect to a Party, any Person directly or indirectly
controlling, controlled by, or under common control with such Party. For purposes of this
definition, the terms “controlling,” “controlled by,” or “under common control with” mean the
possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Party, whether through the ownership of voting securities, by contract or otherwise,
or the power to elect at least 50 percent of the directors, managers, members, or individuals
exercising similar authority with respect to such Party.

“Ancillary Agreements” means the Escrow Agreement and all other agreements, documents,
and instruments required to be delivered by any party pursuant to this Agreement, and any other
agreements, documents, or instruments entered into at or prior to Closing in connection with this
Agreement or the transactions contemplated hereby.

“Audit Adjusted EBITDA” has the meaning assigned in Section 4.4.

“Audit Services” means one-time, special audits of health care claims, outside the
normal course of services, for providers, insurers, and other types of third party payors,
including arrangements to perform regulatory-delegated oversight audits; claims payment accuracy
audits; fraud, waste, and abuse compliance audits; DRG coding and payment audits; and other
specially-requested audits.

“Base Purchase Price” means Thirteen Million Dollars ($13,000,000).

“Business” means all services or programs provided by Company related to fraud,
waste, and abuse detection systems which the Company currently provides to healthcare providers,
plans, insurers, and governmental payors in connection with their claims editing and investigation
services including Audit Services, Prospective Review Services, and Retrospective Review Services.

“Buyer” has the meaning assigned in the first paragraph of this Agreement.

“Cash” means all of the Company’s cash and cash equivalents in any currency.

“Claims Review Adjusted EBITDA” has the meaning assigned in Section 4.3.

“Closing Cash Payment” has the meaning assigned in Section 2.4(e).

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

“Confidential Information” means any and all information (excluding information
in the public domain and information previously known to another party or provided to a party from
a party not subject to a confidentiality restriction) related to the Business, including, without
limitation, information concerning pricing and pricing policies; marketing techniques; lists of
present and former vendors; methods and manner of operations; computer software; employee names,
employee compensation and benefits; information relating to the identity and location of all past,
present, and prospective customers; any and all other trade secrets or proprietary and confidential
information of the Company relating to the Business together with all written, graphic, and other
materials relating to all or any part of the same; and any other confidential information belonging
to customers or suppliers of the Company.

“Contingent Payments” has the meaning assigned to it in Section 4.1

“Continuing Employees” mean those employees and/or independent contractors who support
the continuing operations of the Business following the Closing and who accept employment or
continuance of the independent contractor arrangement with Company in accordance with Section 10.1
of this Agreement. Continuing Employees shall not include Shawn Salkeld, Dennis Demetre or Lori
Lewis, each of whom shall be engaged pursuant to the terms of their respective agreements with the
Company.

“Dispute Accountant” shall mean an accounting firm to be mutually selected by
Sellers’ Representative and Buyer, which at the time of such selection is not then rendering
services for Company or Buyer or their respective Affiliates.

“Division” has the meaning assigned to it in Section 4.2.

“Encumbrances” means any mortgage, pledge, assessment, security interest, lease, lien,
adverse claim, levy, charge, option, right of first refusal, restriction of any kind, or any
conditional sale contract, title retention contract, or other contract to give any of the
foregoing.

“Environmental Laws” means all requirements of laws at the time of Closing which
regulate any Hazardous Material or the use, handling, transportation, production, spill, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, release, threatened release,
migration, emission, sale or storage of, or the exposure of any Person to, a Hazardous Material.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
rules and regulations promulgated thereunder.

“Escrow Agent” means [JP Morgan Chase Bank]

“Escrow Agreement” means the Escrow Agreement in the form of Exhibit B hereto among
Buyer, Sellers, and the Escrow Agent.

“Escrow Deposit” means an amount equal to Three Million Five Hundred Thousand Dollars
($3,500,000).

“Estimated Net Cash Adjustment” has the meaning assigned in Section 2.4(d).

“Estimated Net Cash at Closing” is Company’s estimate of Cash at Closing.

“Estimated Closing Balance Sheet” has the meaning assigned in Section 2.4(a).

“Estimated Working Capital” has the meaning assigned in Section 2.4(a).

“Estimated Working Capital Adjustment” has the meaning assigned in Section 2.4(c).

“Final Working Capital Amount” has the meaning assigned in Section 2.6(b).

“GAAP” means United States generally accepted accounting principles, consistently
applied throughout the specified period and in the immediately prior comparable period.

“Governmental or Regulatory Authority” means any court, tribunal, arbitrator,
authority, agency, commission, official, or other instrumentality of the United States or any
state, county, city, or other political subdivision therein.

“Hazardous Material” means any material or substance that at the time of Closing is
prohibited or regulated by any requirement of law or that is now designated by any Governmental or
Regulatory Authority to be radioactive, toxic, hazardous, or otherwise a danger to health,
reproduction, or the environment.

“Indebtedness” means, without duplication, the sum of (a) the principal amount of any
indebtedness of the Company for borrowed money outstanding immediately prior to the Closing,
including related fees and expenses, (b) all payment obligations of the Company for the deferred
purchase price for purchases of goods and services (other than trade payables or accruals incurred
in the ordinary course of business), (c) any off balance sheet financing of the Company in
existence immediately prior to the Closing, (d) any payment obligations of the Company under
capital leases, and (e) any indebtedness of the type referred to in clauses (a) through (d) above
of any Person other than the Company in existence immediately prior to the Closing which is either
guaranteed by, or secured by a security interest upon any property owned by, the Company.

“IRS” means the United States Internal Revenue Service.

“Knowledge of Sellers” or “Sellers’ Knowledge” means the actual knowledge
of each of Dennis Demetre, Lori Lewis Shawn Salkeld, John Alfred Lewis, and Christopher Brandon
Lewis, who collectively have primary or supervisory responsibility for each matter at issue in this
Agreement with respect to which a knowledge qualifier is expressed.

“Liabilities” means all Indebtedness, earned deferred compensation, and
obligations of any kind (whether absolute, accrued, contingent, asserted, unasserted, fixed or
otherwise, or whether due or to become due).

“Loss” or “Losses” means any and all damages, fines, penalties, deficiencies,
losses, judgments, costs and expenses (including interest, court costs, and reasonable fees of
attorneys, accountants, and other experts), and other reasonable expenses of litigation or other
Proceedings with respect to any claim, default or assessment.

“Material” or “Material Adverse Effect”: As used in Articles V and VI,
(1) a condition, event, act, or other transaction is considered to be “Material” or to have a
“Material Adverse Effect” only if it would result in a cost or financial loss of $10,000 or more;
and (2) a statement regarding the quality or other attribute of a condition, event, act, or other
transaction is considered to hold “in all Material respects” at a given time so long as any
variation does not result in a cost or financial loss of $10,000 or more; provided, however, the
foregoing shall not be deemed to include any event, change or effect which arises with respect to
(1) conditions of change that are primarily the result of the national economy whereby the effect
or change is generally universal upon businesses as a whole or within an industry as a whole, or
(2) uniformly applied Laws (as defined in Section 5.27) that have general applicability to business
as a whole or an industry as a whole.

“Notice of Disagreement” has the meaning assigned in Section 2.6(b).

“Order” means any writ, judgment, decree, injunction, or similar order of any
Governmental or Regulatory Authority (in each such case whether preliminary or final).

“Permits and/or Approvals” means all permits, licenses, certificates of authority,
authorizations, approvals, registrations, franchises, and similar consents granted or issued by any
Governmental or Regulatory Authority.

“Permitted Encumbrances” means: (i) liens arising in the ordinary course of the
Business by operation of law for amounts not yet due in favor of carriers, warehousemen, mechanics,
landlords, and materialmen; (ii) liens for current taxes not yet due or any taxes being contested
in good faith by appropriate Proceedings and as to which appropriate reserves have been established
that are reflected on the Balance Sheet; and (iii) those liens identified on Schedule 2.5.

“Person” includes both natural persons and legal entities of any kind, including
corporations, limited liability companies, and partnerships.

“Proprietary Rights” means any and all of the following and all rights in, arising out
of, or associated therewith throughout the world:

(i) all issued patents, reissued or reexamined patents, revivals of patents, utility models,
certificates of invention, registrations of patents and extensions thereof, regardless of country
or formal name (collectively, “Issued Patents”); all published or unpublished
nonprovisional and provisional patent applications, reexamination Proceedings, invention
disclosures, and records of invention (collectively “Patent Applications” and, with the
Issued Patents, the “Patents”);

(ii) all copyrights, copyrightable works, and mask work rights, including all rights of
authorship, use, publication, reproduction, distribution, performance transformation, moral rights
and rights of Sellers of copyrightable works and mask works, and all rights to register and obtain
renewals and extensions of registrations, together with all other interests accruing by reason of
international copyright, mask work conventions (collectively, “Copyrights”);

(iii) trademarks, registered trademarks, applications for registration of trademarks, service
marks, registered service marks, applications for registration of service marks, trade names,
registered trade names and applications for registrations of trade names (collectively,
“Trademarks”), and domain name registrations;

(iv) all proprietary technology, ideas, inventions, designs, information, manufacturing and
operating specifications, know-how, formulae, trade secrets, technical data, computer programs,
hardware, software, and processes, including the Automated Claims Evaluator (ACE), Automated
Investigation Management System (AIMS) and the Special Investigation Unit (SIU);

(v) all databases and data collections, excluding client specific data, and all rights
therein; and all computer software including all source code, object code, firmware, development
tools, files, records and data, all media on which any of the foregoing is recorded, all Internet
addresses, sites (and all content contained therein), and domain names; and

(vi) all documentation related to any of the foregoing.

“Prospective Review Services” means ongoing, periodic reviews of health care claims
for insurers and other types of third party payors, including forward and backward looking analyses
conducted utilizing the ACE, AIMS, and/or SIU.

“Purchase Price” has the meaning assigned in Section 2.2.

“Retained Liabilities” has the meaning assigned in Section 2.5.

“Retrospective Review Services” means a singular review and analysis of an historical
paid-claims data set of for insurers and other types of third party payors, for purposes of
recovering overpayments resulting from fraud, waste, abuse, and/or error.

“Shares” has the meaning assigned in the Recitals to this Agreement.

“Seller Expenses” means (without duplication), to the extent not paid before the
Closing, (i) the collective amount payable by the Company to outside legal counsel, accountants,
advisors, brokers, and other third parties, and all other out-of-pocket costs and expenses incurred
by the Company (or by the Sellers, to the extent such costs and expenses are deemed a liability of
the Company) in connection with the sale of the Company and (ii) any amount payable to any
consultant, officer, director, or employee of the Company in the nature of a sale bonus as a result
of the consummation of the transactions contemplated by this Agreement.

“Sellers’ Representative” has the meaning assigned to it in Section 15.1.

“Straddle Period” has the meaning assigned in Section 13.1.

“Target Net Cash” means an amount equal to Fifty Thousand Dollars ($50,000).

“Target Working Capital” means an amount equal to One Hundred Fifty Thousand Dollars
($150,000).

“Tax Returns” means a report, return or other information required to be
supplied to a governmental entity with respect to Taxes including combined or consolidated returns
for any group of entities that includes the Company.

“Taxes” means any federal, state, county, local or foreign taxes, charges, fees,
levies, or other assessments, including all net income, gross income, sales and use, ad valorem,
transfer, gains, profits, excise, franchise, real and personal property, gross receipt, units,
production, business and occupation, disability, employment, payroll, license, estimated, stamp,
custom duties, severance or withholding taxes or charges imposed by a governmental entity, and
includes any interest and penalties (civil or criminal) on or additions to any such taxes and any
expenses incurred in connection with the determination, settlement or litigation of any tax
liability.

“Third Party” means any Person (including, but not limited to, a Governmental or
Regulatory Authority) not an Affiliate of the other referenced Person or Persons.

 “Working Capital Amount” as of any date means total current assets other than
Cash, less total current liabilities as of such date in each case as such term has historically
been used on Company’s balance sheet. Current assets shall include accounts receivable, prepaid
expenses, deposits, and employee advances. Current liabilities shall include accounts payable,
accrued bonuses, accrued employee vacation, and the amount of the Company’s suspense clearing
account. Accounts payable to and accounts receivable from Sellers shall be excluded from the
calculation of Working Capital Amount.

ARTICLE II

PURCHASE AND SALE OF SHARES

2.1. Purchase and Sale. On the terms and subject to the conditions contained in this
Agreement, at the Closing, the Sellers will sell, convey, transfer, assign, and deliver to the
Buyer, and the Buyer will acquire from the Sellers, the Shares, free and clear of any and all
Encumbrances.

2.2. Purchase Price. Subject to the potential purchase price adjustments described in Section
2.4 and 2.6 below, the aggregate purchase price to be paid by the Buyer for the Shares shall be an
amount equal to (i) the Base Purchase Price, minus (ii) the amount of payments by the Buyer to
discharge Retained Liabilities, plus (iii) the Contingent Payments payable in the manner provided
in Article IV.

2.3. Establishment of Escrow Account. At Closing, Buyer and the Sellers shall enter into the
Escrow Agreement, in the form of Exhibit B, to hold the Escrow Deposit in escrow pursuant to the
terms of the Escrow Agreement. As provided in the Escrow Agreement, the Escrow Deposit shall be
subject to release at the rate of fifty percent (50%) on the first anniversary of the Closing Date,
and twenty-five percent (25%) on each of the second and third anniversary dates of the Closing
Date.

2.4. Estimation and Payment of Purchase Price and Retained Liabilities

2.4.1. Estimated Closing Balance Sheet. No later than three (3) business days prior
to the Closing Date, Sellers’ Representative shall deliver to Buyer a consolidated balance sheet of
the Company as of the Closing Date (“Estimated Closing Balance Sheet”), prepared in accordance with
GAAP and the Company’s past practices, and a good faith written estimate of the Working Capital
Amount as of the close of business on the Closing Date (“Estimated Working Capital”) calculated in
accordance with the example set forth on Schedule 2.4, and the Net Cash at Closing (“Estimated Net
Cash at Closing”). Sellers shall cause the Company to distribute any Net Cash in excess of the
Target Net Cash prior to issuance of the Estimated Closing Balance Sheet, in order to minimize the
purchase price adjustments required at Closing.

2.4.2. Payment Instructions Letter. No later than three (3) business days prior to the
Closing Date Sellers’ Representative shall also deliver a payment instructions letter setting forth
the respective amounts, payees, and wiring instructions relating to the payment of (A) the Closing
Cash Payment and (B) the Retained Liabilities (the “Payment Instructions Letter”).

2.4.3. Estimated Working Capital Adjustment. If the Estimated Working Capital is less
than the Target Working Capital, the Base Purchase Price shall be reduced, on a dollar-for-dollar
basis, by an amount equal to the amount by which the Target Working Capital exceeds the Estimated
Working Capital. If the Estimated Working Capital is greater than the Target Working Capital, the
Base Purchase Price shall be increased, on a dollar-for-dollar basis, by an amount equal to the
amount by which the Estimated Working Capital exceeds the Target Working Capital.

2.4.4. Estimated Net Cash Adjustment. If the Estimated Net Cash at Closing is less
than the Target Net Cash, the Base Purchase Price shall be reduced, on a dollar-for-dollar basis,
by an amount equal to the amount by which the Target Net Cash exceeds the Estimated Net Cash at
Closing. If the Estimated Net Cash at Closing is greater than the Target Net Cash, the Base
Purchase Price shall be increased, on a dollar-for-dollar basis, by an amount equal to the amount
by which the Estimated Net Cash at Closing exceeds the Target Net Cash Amount.

2.4.5. Payment at Closing. On the Closing Date, in consideration of the transfer of
the Shares, the Buyer shall pay the Base Purchase Price as adjusted by the Estimated Working
Capital Adjustment and the Estimated Net Cash Adjustment, minus the Retained Liabilities, and minus
the Escrow Deposit, (the “Closing Cash Payment”), by wire transfer of immediately available
funds in the amounts and to the accounts designated by the Sellers’ Representative in the Payment
Instructions Letter. The Buyer shall also pay the Retained Liabilities on behalf of the Sellers in
the amounts and in accordance with the instructions provided in the Payment Instructions Letter,
and deposit the Escrow Deposit into the Escrow Account.

2.5. Payoff of Certain Liabilities. The Parties acknowledge and agree that (a) the Purchase
Price assumes that, at the Closing, the Company’s only indebtedness shall be trade payables and
operating expenses incurred in the ordinary course of business, such as payroll and non-income tax
accruals (the “Assumed Indebtedness”), and (b) on or prior to the Closing Date, the Sellers
will cause the Company to pay off all the following obligations in full: (i) all indebtedness owing
by the Company to any institutional and secured lenders, together with any and all interest,
penalties or, premiums thereon; (ii) all indebtedness owing by the Company to any of the Sellers,
together with any and all interest, penalties or premiums thereon; (iii) all monetary obligations
owing by the Company that were not incurred in the ordinary course of business of Company or
similarly situated businesses and included in Closing Date Net Working Capital; (iv) all Seller
Expenses; (v) all amounts owed to employees under any retention plan or in the form of any bonus
payable upon the sale of the Shares or the Company; and (iv) all Encumbrances on the Shares and all
Encumbrances on the Assets other than Permitted Encumbrances (the “Retained Liabilities”).
Except as set forth on Schedule 2.5, on the Closing Date, the Sellers’ Representative shall provide
the Buyer with documentation evidencing that all Retained Liabilities have been duly paid-off in
full, and that any and all Encumbrances on the Shares and the assets have been duly paid-off in
full and released. Subject to Article XII of this Agreement, the Sellers shall indemnify and hold
the Buyer and the Company (after the Closing), and their respective Affiliates, harmless from and
against any and all obligations that the Buyer or the Company may incur relating to or arising out
of the Retained Liabilities.

2.6. Post-Closing Adjustment

2.6.1. As soon as practicable (but in no event later than sixty (60) days) after the Closing
Date, Buyer shall deliver to Sellers’ Representative a balance sheet for the Company as of the
Closing Date (the “Closing Balance Sheet”) which shows the Working Capital Amount, which shall be
prepared (i) in accordance with GAAP as in effect on the date of such preparation and (ii) in a
manner consistent with the Company’s accounting policies and practices used in the preparation of
the Estimated Closing Balance Sheet.

2.6.2. The Closing Balance Sheet shall become final and binding on Sellers and Buyer unless
Sellers’ Representative gives a written notice of disagreement (a “Notice of Disagreement”) to
Buyer within thirty (30) days following receipt by Sellers’ Representative of the Closing Balance
Sheet. Any such Notice of Disagreement shall specify in reasonable detail the nature of any
disagreement so asserted. Buyer shall have fifteen (15) days following receipt of such Notice of
Disagreement to review the same. If Sellers’ Representative and Buyer are unable to resolve all of
their disagreements with respect to the Closing Balance Sheet within twenty (20) days following
Buyer’s receipt of the Notice of Disagreement, Sellers’ Representative and Buyer shall refer their
remaining differences to the Dispute Accountant, which shall, acting as experts and not as
arbitrators, determine, and only with respect to the remaining differences so submitted, whether
and to what extent, if any, the Working Capital Amount as set forth in the Closing Balance Sheet
requires adjustment. Sellers’ Representative and Buyer shall direct the Dispute Accountant to use
its best efforts to render its determination within thirty (30) days after the date the Dispute
Accountant is selected. The Dispute Accountant’s determination shall be conclusive and binding
upon Buyer and Sellers. The fees and disbursements of the Dispute Accountant shall be paid by each
party in an amount equal to the total fees and disbursements of the Dispute Accountant multiplied
by a fraction, the numerator of which is the amount in dispute not awarded to such party and the
denominator of which is the total amount in dispute. The Working Capital Amount that becomes final
and binding on Buyer and Sellers under this Section 2.6(b) shall be referred to collectively herein
as the “Final Working Capital Amount.”

2.6.3. If the Final Working Capital Amount differs from the Estimated Working Capital Amount
determined at Closing, then a reconciling payment shall be made from one party to the other in a
manner that takes into account any adjustments made at Closing. If the Final Working Capital
Amount is less than Target Working Capital, then promptly following the determination of the Final
Working Capital Amount, the Base Purchase Price shall be adjusted and Sellers shall pay to Buyer
the amount of such deficiency less the amount of any Estimated Working Capital Adjustment
subtracted from the Base Purchase Price at Closing, or plus the amount of any Estimated Working
Capital Adjustment added to the Base Purchase Price at Closing. If the Final Working Capital
Amount is more than the Target Working Capital, then promptly following the determination of the
Final Working Capital Amount, the Base Purchase Price shall be adjusted and Buyer shall pay to
Sellers the amount of such excess plus any amount of any Estimated Working Capital Adjustment
subtracted from the Base Purchase Price at Closing, or minus the amount of any Estimated Working
Capital Adjustment added to the Base Purchase Price at Closing. Any such payment will be made in
immediately available funds by Sellers or Buyer, as the case may be, not later than five (5)
business days following such determination, and if such payment is to be made by Sellers, shall be
paid by Sellers from funds other than any amounts set aside as the Escrow Deposit. In calculating
the adjustments provided by Sections 2.4 and 2.56, it is the intention of the Parties to avoid
double-counting of items that would result in an inequitable and unintended benefit to one Party or
Parties to the detriment of the other Party or Parties.

ARTICLE III

CLOSING

3.1. Closing Date. Subject to satisfaction of the Conditions Precedent to Closing described
in Articles VIII and IX herein, the Closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place on June 30, 2010, unless a different date, time, and place is
agreed to by Buyer and Sellers’ Representative or this Agreement is terminated in accordance with
Section 14.1. Such date, or if the Closing is advanced or postponed under this Section 3.1, then
the date to which it is advanced or postponed, is referred to herein as the “Closing Date.”
All proceedings to take place at the Closing shall take place simultaneously, and no delivery
shall be considered to have been made until all such proceedings have been completed. The Closing
may take place by use of telefax and e-mail, without an in-person meeting. At the Closing, the
following will occur:

3.1.1. Buyer will make the Closing Cash Payment as provided in Section 2.4.5 in accordance
with the Payment Instructions letter, by wire transfer of immediately available funds;

3.1.2. Buyer shall deposit the Escrow Deposit (to be held and released as set forth in the
Escrow Agreement) so deducted from the Base Purchase Price into escrow and to be held pursuant to
the terms and conditions of the Escrow Agreement; and

3.1.3. Sellers will assign and transfer to Buyer good and valid title in and to the Shares,
free and clear of all Encumbrances.

3.2. Deliveries at the Closing by Sellers

3.2.1. Deliveries by the Company and the Sellers. To effect the sale and transfer of
the Shares at Closing, the Sellers and the Company (as applicable) will, at the Closing, deliver to
the Buyer, the following documents, in each case duly executed or otherwise in proper form:

	 	(1)	 	Original certificates representing all of the
Shares (including affidavits of lost certificates and corresponding
indemnity agreements if necessary), duly endorsed in blank for transfer
or accompanied by duly executed stock powers, together with any
required transfer or documentary stamps attached, free and clear of all
Encumbrances;

	 	(2)	 	Instruments evidencing the release and/or pay
off amounts and payees of all Retained Liabilities, in a form
reasonably satisfactory to Buyer;

	 	(3)	 	The Company’s Articles of Incorporation
certified by the Secretary of State of the State of California and
dated within ten (10) days prior to the Closing Date;

	 	(4)	 	A certificate of good standing of the Company
issued by the Secretary of State of the State of California and dated
within ten (10) days prior to the Closing Date, as well as any states
in which the Company is qualified as a foreign corporation;

	 	(5)	 	A Secretary’s Certificate of the Company
certifying (A) the Bylaws of the Company, (B) the officers and
directors of the Company, and (C) the resolution of the Board of
Directors of the Company authorizing the execution, delivery, and
performance of this Agreement and the Ancillary Agreements;

	 	(6)	 	An affidavit from each of the Sellers dated as
of the Closing Date, sworn under penalties of perjury and in form and
substance required under the Treasury Regulations issued pursuant to
Section 1445 of the Code stating that each Seller is not a foreign
person within the meaning of Section 1445 of the Code;

	 	(7)	 	Such waivers, consents, assignments,
acknowledgements, and subordination and/or attornment agreements as may
be reasonably requested by the Buyer and obtainable by Sellers,
including each of the third party landlord consents described in
Schedule 5.11 and each of the contract documents described in Schedule
5.19 in form and substance reasonably acceptable to the Buyer’s
counsel, and the cost or expense to obtain such consent(s) shall be
borne by the Sellers;

	 	(8)	 	The Escrow Agreement between Buyer and Sellers,
in the form attached hereto as Exhibit B;

	 	(9)	 	The Consultant Agreement between Buyer and
Dennis Demetre in the form attached hereto as Exhibit C;

	 	(10)	 	The Consultant Agreement between Buyer and Lori
Lewis in the form attached hereto as Exhibit D;

	 	(11)	 	The Employment Agreement between Buyer and
Shawn Salkeld agreement in the form attached hereto as Exhibit E;

	 	(12)	 	Custody of the original corporate record and
minute book(s), stock ledgers and corporate seals (if any) of the
Company;

	 	(13)	 	A certificate executed and delivered by the
Sellers and the Secretary of the Company dated the Closing Date,
stating that the conditions specified in Article VIII have been
fulfilled; or indicating which such conditions have not been fulfilled;
and

	 	(14)	 	Such other documents, instruments, and
certificates as the Buyer or its counsel or counsel to the Buyer’s
lenders reasonably deems necessary to consummate the transactions and
such other certificates of authority and documents as the Buyer
reasonably requests.

3.2.2. Deliveries by the Buyer. To effect the sale and transfer of the Shares at
Closing, the Buyer will, at the Closing, deliver to the Sellers’ Representative the following
documents, in each case duly executed or otherwise in proper form:

	 	(1)	 	The Closing Cash Payment;

	 	(2)	 	A copy of the Buyer’s Certificate of
Incorporation certified by the state of New York and dated within ten
(10) days prior to the Closing Date;

	 	(3)	 	A Secretary’s Certificate of the Buyer
certifying (A) the Bylaws of the Buyer, (B) the officers and directors
of the Buyer, and (C) the resolution of the Board of Directors of the
Buyer authorizing the execution, delivery, and performance of this
Agreement and the Ancillary Agreements;

	 	(4)	 	A certificate of good standing for the Buyer
issued by the Secretary of State of the state of New York and dated
within ten (10) days prior to the Closing Date;

	 	(5)	 	The Escrow Agreement between Buyer and Sellers
in the form attached hereto as Exhibit B;

	 	(6)	 	The Consultant Agreement between the Buyer and
Dennis Demetre in the form attached hereto as Exhibit C;

	 	(7)	 	The Consultant Agreement between the Buyer and
Lori Lewis in the form attached hereto as Exhibit D;

	 	(8)	 	The Employment Agreement between Buyer and
Shawn Salkeld agreement in the form attached hereto as Exhibit E;

	 	(9)	 	A certificate executed and delivered by the
Secretary of Buyer, dated the Closing Date, stating that the conditions
specified in Article IX have been fulfilled or indicating which such
conditions have not been fulfilled; and

	 	(10)	 	Such other documents, instruments and
certificates as the Sellers or their counsel reasonably deem necessary
to consummate the transactions and such other certificates of authority
and documents as the Sellers reasonably request.

3.2.3. Form of Instruments. To the extent that a form of any document to be delivered
under this Agreement is not attached as an Exhibit, such documents will be in a form and substance,
and will be executed and delivered in a manner reasonably satisfactory to the Buyer and the
Sellers.

ARTICLE IV

CONTINGENT PAYMENTS

4.1. Contingent Payments Based on Performance as of June 30, 2011 and 2012. Subject to
satisfaction of the conditions of this Article IV, Buyer shall pay to Sellers, as additional
consideration for purchase of the Shares, two contingent payments (the “Contingent Payments”) based
on the results of the Company for the two 12-month periods ending June 30, 2011 and June 30, 2012
respectively.

4.1.1 June 30, 2011 Payment. The Contingent Payment for the period July 1, 2010
through June 30, 2011 shall be equal to the sum of (i) 2.75 x Company’s “Claims Review Adjusted
EBITDA” (as described below) + (ii) 0.5 x Company’s “Audit Adjusted EBITDA” (as described below).

4.1.2 June 30, 2012 Payment. The Contingent Payment for the period July 1, 2011
through June 30, 2012 shall be equal to the sum of (i) 3.0 x Claims Review Adjusted EBITDA + (ii)
0.5 x Audit Adjusted EBITDA.

4.2. Segregation of Company EBITDA. In order to calculate the Contingent Payments, Buyer
shall determine the Claims Review Adjusted EBITDA and Audit Adjusted EBITDA of the Company. In the
event the Company is merged into Buyer or an Affiliate of Buyer (hereinafter “Merged”), Buyer shall
continue to account for the business of the Company as a separate division (the “Division”), at
least sufficient to calculate the Contingent Payments due under this Agreement. Following the
Closing, the Parties shall complete and sign a Contingent Payment Form, in the form attached hereto
as Exhibit F, for each service contract. The Contingent Payment Form shall designate the client,
contract date, and type and percentage of revenue generated for purposes of calculating the
Contingent Payments. Revenues shall not be categorized as being of more than one type of service,
so as to avoid double counting.

4.3. Revenues to be included in Claims Review Adjusted EBITDA. The Claims Review Adjusted
EBITDA shall be calculated by including the following, in each instance for the Company, or if it
is Merged, the Division, whether the following contracts exist at Closing or are secured following
Closing:

	 	(1)	 	One hundred percent (100%) of the revenues from Prospective
Review Services;

	 	(2)	 	Sixty-six percent (66%) of the revenues from Retrospective
Review Services for any of the prospects listed on Schedule 4.3.2, the State of
Missouri, and the State of South Carolina;

	 	(3)	 	Fifty percent (50%) of the revenues from all other
Retrospective Review Services;

	 	(4)	 	For the following contracts, one hundred percent (100%) of the
percentage revenue credit specified below:

(i) Priority Healthcare – ten percent (10%) of client recoveries

(ii) State of Kentucky – four percent (4%) of client recoveries

4.4. Revenues to be Included in Audit Adjusted EBITDA. The Audit Adjusted EBITDA shall be
calculated by including 100% of the Company’s, or if it is Merged, the Division’s, revenues from
Audit Services performed by the Company, or if it is Merged, the Division, pursuant to contracts in
effect as of the Closing Date, plus one hundred percent (100%) of revenues from Audit Services
identified in the Contingent Payment Form for any post-closing contract, as provided in Section 4.2
hereof.

4.5. Determination of Claims Review Adjusted EBITDA and Audit Adjusted EBITDA. For purposes
of determining the Contingent Payments payable under this Article IV, Claims Review Adjusted EBITDA
and Audit Adjusted EBITDA shall be calculated as cumulative earnings of the Company, or if it is
Merged, the Division, determined based on the revenues and expenses detailed in Sections 4.3 — 4.5
hereof, before interest, income taxes, depreciation, and amortization for the 12-month period,
determined in accordance with GAAP, applied in a manner consistent with the preparation of the
Company’s Closing Balance Sheet, but subject to the following adjustments:

4.5.1 Buyer will consolidate finance/accounting, human resources, administration, corporate
property and casualty insurance, liability insurance, and sales/marketing services at the corporate
level, and expenses associated with these services shall not be included in the calculation of
Claims Review Adjusted EBITDA or Audit Adjusted EBITDA.

4.5.2 Buyer will consolidate information technology (IT) services at the corporate level, but
the cost of IT services for the Company, or if it is Merged, the Division, will be separately
accounted for and included as an expense in the calculation of Claims Review Adjusted EBITDA and
Audit Adjusted EBITDA. IT costs will be apportioned between the Claims Review Adjusted EBITDA and
Audit Adjusted EBITDA in proportion to the relative percentage of revenues generated by each
activity.

4.5.3 Buyer will consolidate the employee benefits function for the Company, or if it is
Merged, the Division, at the corporate level, but the costs of Buyer’s standard benefit package
(per FTE) shall be included as an expense in the calculation of Claims Review Adjusted EBITDA and
Audit Adjusted EBITDA and apportioned between the Claims Review Adjusted EBITDA and Audit Adjusted
EBITDA based upon FTE count of each activity. Buyer shall not charge the costs of administration
of employee benefits to Company, or if it is Merged or ceases to exist, the Division for purposes
of the Claims Review Adjusted EBITDA or Audit Adjusted EBITDA calculations.

4.5.4 The parties shall determine hourly rates for the use of Buyer’s software developers,
with such expense being included in the calculation of Claims Review Adjusted EBITDA and Audit
Adjusted EBITDA. The hourly rates shall be determined by dividing the base compensation of the
software developer (salary plus benefits) by 2080.

4.5.5 Third party out-of-pocket expenses incurred by the Company, or if it is Merged, the
Division, such as print fulfillment and legal fees, and including the consultant fees payable to
Dennis Demetre and Lori Lewis, shall be included as expenses in the calculation of Claims Review
Adjusted EBITDA and Audit Adjusted EBITDA at actual cost and shall be allocated between the Claims
Review Adjusted EBITDA and Audit Review Adjusted EBITDA as direct expenses where appropriate, or in
proportion to the relative percentage of revenues generated by each activity, unless otherwise
agreed to by the Parties.

4.5.6 For purposes of calculating Claims Review Adjusted EBITDA and Audit Adjusted EBITDA,
unless otherwise agreed to by the Parties, expenses shall be allocated between Claims Review
Adjusted EBITDA and Audit Adjusted EBITDA in proportion to the relative percentage of revenues
generated by each activity.

4.5.7 In calculating Claims Review Adjusted EBITDA and Audit Adjusted EBITDA for the
Contingent Payments, the following items shall be excluded:

	 	(1)	 	Gains, losses, or profits realized from the
sale of any capital assets other than in the ordinary course of
business;

	 	(2)	 	All expenses incurred in connection with the
transactions contemplated by this Agreement; and

	 	(5)	 	All expenses that the Company, or if it is
Merged, the Division, incurs at the request of Buyer that are outside
the ordinary scope of expenses incurred in connection with the
provision of Audit Services, Prospective Review Services, or
Retrospective Review Services, except as otherwise specifically
provided in Sections 4.5.1 – 4.5.7 hereof. 

4.6. Contingent Payments Not Conditioned on Consultant Agreement. Buyer’s obligation to make
the Contingent Payments shall not be contingent upon Sellers’ Dennis Demetre or Lori Lewis
engagement as consultants of Buyer or its Affiliates after the Closing. Any Contingent Payment
owed pursuant to this Article IV shall be due and payable whether or not any Seller remains engaged
as a consultant with Buyer or any of its Affiliates following the Closing Date.

4.7. Payment in the Event of Sale/Closure of Business/Other Adverse Actions. For the period
of the Contingent Payments (July 1, 2010-June 30, 2012), Buyer shall cause the Company, or if it is
Merged, the Division;

4.7.1 In the event of any sale to a Person other than an Affiliate of Buyer, Buyer shall
remain liable for the Contingent Payments in accordance with the terms of this Agreement. Prior to
any proposed sale, dissolution, or discontinuation of the Company, the Parties shall negotiate in
good faith to reach a mutually acceptable resolution of the Contingent Payments liability. The
Company shall be deemed to be sold pursuant hereto if either a controlling interest in the Company
is sold or all or substantially all of the assets of the Company are sold;

4.7.2 to not sell any product or service offered by the Company, or if it is Merged, the
Division, on terms other than fair market value, arm’s length pricing;

4.7.3 to maintain and implement substantially the same accounting mechanisms and techniques as
reflected in the Closing Balance Sheet.

4.8. Maintenance of Office. For the period of the Contingent Payments (July 1, 2010-June 30,
2012), Buyer shall maintain an office for the Company, or if it is Merged, the Division, in Santa
Ana, California; provided, however, that if the Company, or if it is Merged, the Division,
relocates to a different location within Santa Ana, California, no greater than Company/Division’s
proportionate share (based upon square footage) of fair market rent shall be allocated to the
Company/Division.

4.9. Time and Manner of Payments. Any Contingent Payment owed for the period ending June 30,
2011, shall be payable by September 30, 2011, and any Contingent Payment owed for the period ending
June 30, 2012 shall be payable by September 30, 2012. Payment shall be made by wire transfer of
immediately available funds to Sellers, as designated by Sellers’ Representative in proportion to
the percentage of Shares owned by each Seller as of the Closing Date.

4.10. Financial Reporting. To facilitate the recording and computation of Claims Review
Adjusted EBITDA and Audit Adjusted EBITDA, Buyer shall promptly following the Closing implement
accounting methods and procedures that ensure that all relevant financial results relating to the
Company, or if it is Merged, the Division, are separately tracked and recorded in Buyer’s books and
records, and shall maintain an auditable record of financial results on a stand-alone basis
throughout the Contingent Payment period.

4.11. Reporting of Claims Review and Audit Adjusted EBITDA and Dispute Resolution

4.11.1 At the end of each calendar quarter during the Contingent Payment period Buyer shall
deliver to the Sellers’ Representative a written report setting forth the applicable quarterly
Claims Review Adjusted EBITDA and Audit Adjusted EBITDA, together with such calculations and
supporting schedules as may reasonably be required by Sellers to verify the calculation of such
amounts (the “Quarterly Report”). Upon reasonable prior written notice, Buyer shall make
its books and records available for inspection by Sellers’ Representative to verify the accuracy of
the quarterly Claims Review Adjusted EBITDA and Audit Adjusted EBITDA calculations. Upon review of
the Quarterly Report by Sellers, Buyer shall act in good faith to answer all questions and concerns
raised by Sellers within a reasonable time. If the Parties are unable to resolve any disagreement
regarding a Quarterly Report the issue shall be deferred until the end of the applicable Contingent
Payment period and resolved through the dispute resolution process set forth in Section 4.11.4
hereof applicable to the Annual Report.

4.11.2 Within thirty (30) days following the end of each Contingent Payment period (July 30,
2011 and 2012, respectively) Buyer shall deliver to the Sellers’ Representative a written report
setting forth the applicable annual Claims Review Adjusted EBITDA and Audit Adjusted EBITDA,
together with such calculations and supporting schedules as may reasonably be required by Sellers
to verify the calculation of such amounts and the Contingent Payment due for the applicable year
(the “Annual Report”). Upon reasonable prior written notice, Buyer shall make its books
and records available for inspection by Sellers’ Representative (or an independent accountant
selected by Sellers’ Representative) to verify the accuracy of the calculation of the Contingent
Payment reflected in the Annual Report.

4.11.3 If, within thirty (30) days following delivery of the Annual Report for a Contingent
Payment year (the “Objection Period”), the Sellers’ Representative has not given Buyer
notice of objection to the calculation of the Contingent Payment for such fiscal year (an
“Objection Notice”), then such determination for such fiscal year will be considered final.
The parties shall cooperate during the Objection Period in order to allow the Sellers (or their
representatives) to review relevant information in connection with the evaluation of the Contingent
Payment.

4.11.4 If the Sellers’ Representative delivers a timely Objection Notice to Buyer, then the
Sellers’ Representative and Buyer shall, during the thirty (30) days immediately following delivery
of the Objection Notice (the “EBITDA Consultation Period”), seek in good faith to resolve
any differences they may have with respect to the matters specified in the Objection Notice. If
such dispute is not resolved to the mutual satisfaction of the Sellers’ Representative and Buyer
within the EBITDA Consultation Period, then: (i) the Sellers and Buyer shall submit the dispute to
the Dispute Accountant for resolution, and furnish to the Dispute Accountant such work papers and
other documents and information relating to the disputed issues as the Dispute Accountant may
request and are available to such party or its independent accounting firm; (ii) each party will be
afforded the opportunity to present to the Dispute Accountant any matters relating to the
determination and discuss the determination with the Dispute Accountant, (iii) the Dispute
Accountant shall be directed to furnish a determination of the Claims Review and/or Audit Adjusted
EBITDA amounts in dispute, and/or the calculation of the Contingent Payment from those amounts, in
the form of an “EBITDA Dispute Report,” which shall be final and binding on the parties
and, absent manifest error, shall not be subject to review or appeal, and may be entered and
enforced in any court of competent jurisdiction, and (iv) each of Sellers and Buyer shall bear the
fees and costs of the Dispute Accountant for such determination in an amount equal to the total
fees and costs of the Dispute Accountant multiplied by a fraction, the numerator of which is the
amount in dispute not awarded to such party and the denominator of which is the total amount in
dispute.

4.11.5 Sellers and Buyer shall act in good faith to cause the Dispute Accountant to complete
its preparation and delivery to such parties of the EBITDA Dispute Report within thirty (30) days
from the submission of the matters specified in the Objection Notice to the Dispute Accountants.
Any additional Contingent Payment amount determined to be owed in the EBITDA Dispute Report and not
previously paid by Buyer shall be delivered by Buyer to the Sellers within ten (10) days after
Buyer’s receipt of such EBITDA Dispute Report.

4.12 Imputed Interest Rate.  The Parties agree that the Contingent Payments represent deferred
payments of a portion of the purchase price.  Accordingly, each Contingent Payment shall be deemed
to include an imputed interest payment at the applicable federal rate of sixty-one one hundredths
of one percent (0.61%) per annum. Each Party shall report the Tax consequences of the Contingent
Payments in a manner consistent with such allocation and shall not take any position inconsistent
therewith upon examination of any Tax Return, in any refund claim, or in any litigation,
investigation or otherwise.

ARTICLE V

REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLERS

Sellers, jointly and severally, represent and warrant to and for the benefit of Buyer as
follows:

5.1. Organization, Qualification, and Authorization

5.1.1 Company is a corporation duly organized, validly existing, and in good standing under
the laws of the State of California and has full corporate power to own its properties and to carry
on its business as now owned and operated by Company. Company has full power and authority to
carry on its business as it is now conducted in all jurisdictions in which Company conducts its
business, and is entitled to own, lease, or operate the properties and assets it now owns, leases,
or operates in such jurisdictions. Company is qualified to do business, is in good standing and
has all required and appropriate licenses in each jurisdiction where it conducts business and is
not required to obtain or maintain such qualification, good standing, or licensing in any other
jurisdiction.

5.1.2 Company and the Sellers have all requisite power and authority without the consent of
any other Person to enter into this Agreement and to consummate the transactions contemplated
hereby. This Agreement and all other instruments herein contemplated to be executed by Company
have been duly approved by the board of directors of Company and the Sellers, have been or will be
duly executed and delivered by Company and the Sellers, and constitute or, upon execution and
delivery, will constitute legal, valid, and binding obligations of Company and the Sellers,
enforceable against them in accordance with the terms of this Agreement and such other instruments,
except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting creditors’ rights generally and general principles of equity.

5.1.3 The execution and delivery of this Agreement by Company and the Sellers, and the
consummation by Company and the Sellers of the transactions contemplated hereby and compliance by
Company with any of the provisions hereof will not (i) violate any provision of the Articles of
Incorporation or Bylaws of Company or similar organizational documents; (ii) result in a violation
or breach of, or result in a loss of benefits under or constitute (with or without due notice or
lapse of time or both) a default or give rise to any right of termination, amendment, cancellation,
modification or acceleration under, or result in the creation of any lien or encumbrance on any
asset of Company under any note, bond, mortgage, indenture, license, contract, lease, agreement or
other instrument or obligation to which Company is a party or by which it or any of its properties
or assets may be bound; or (iii) violate any order, writ, injunction, decree, statute, treaty,
rule, or regulation applicable to Company or any of its properties or assets.

5.2. Company’s Capital Structure. The Company’s equity consists of 250,000 Shares of
authorized common stock, 0.58846 par value, of which 100,000 Shares are issued and outstanding and
owned by the Sellers in the numbers specified in Exhibit A. The Sellers are the sole shareholders
of Company and no other Person owns any equity interest in Company of any kind. Sellers are, and
will be at Closing, the owners of all issued and outstanding equity interests of Company without
any exception whatsoever, free and clear of all liens of any kind. There is no:

	 	(1)	 	Outstanding security of Company convertible into or
exchangeable for any Shares;

	 	(2)	 	Outstanding subscription, option, warrant, call, commitment,
agreement, or understanding (oral or written) obligating Company to issue any
equity interest or any security of any class or kind which in any way relates
to the authorized or issued Shares of Company or any interest therein;

	 	(3)	 	Agreement or understanding (oral or written) (other than this
Agreement) which grants to any third party the right to purchase or otherwise
acquire any issued and outstanding Shares or any interest therein, including
any preemptive right, right of first refusal, or co-sale right;

	 	(4)	 	Voting trust or voting agreement or pooling agreement or proxy
(oral or written) with respect to any issued and outstanding Shares; or

	 	(5)	 	Obligation of Company (oral or written) to purchase, redeem, or
otherwise acquire any Shares or any interest therein or to pay any dividend or
distribution with respect thereto.

5.3. Compliance with Fictitious Name Statutes. Company has complied with all requirements of
fictitious name statutes in all jurisdictions in which it conducts business.

5.4. No Subsidiaries. Company does not own, either directly or indirectly, any interest or
investment (whether debt or equity, but excluding investments reflected as current assets, on
Company’s balance sheet) in any corporation, partnership, joint venture, business, trust, or other
entity, other than as a holder of less than two percent (2%) of the outstanding shares/interests of
a publicly traded company.

5.5. Company Records

5.5.1 Company has delivered to Buyer true and complete copies of Company’s Articles of
Incorporation and Bylaws, as amended and currently in effect.

5.5.2 Company has delivered a complete list of the officers and directors of Company.

5.6. Financial Information. Schedule 5.6 hereto sets forth (i) the audited financial
statements of Company for year ended March 31, 2010, together with all notes thereto, and (ii) the
unaudited financial statements for the year ended March 31, 2009 and for the period April 1, 2010 –
May 31, 2010 (collectively (i) and (ii) are the “Financial Statements”). All such
Financial Statements (x) have been prepared in accordance with GAAP and in a manner consistent with
prior periods, subject in the case of the unaudited statements to the absence of footnote
disclosure, (y) were prepared in accordance with the books and records of Company, and (z) fairly
present the financial condition of Company and the results of Company’s operations as of the
relevant dates thereof and for the periods covered thereby.

5.7. Absence of Certain Matters. Except as set forth in Schedule 5.7, and to Sellers’
Knowledge , since March 31, 2010, there has not been any:

	 	(1)	 	Transaction by Company involving an amount in excess of $10,000
except in the ordinary course of business;

	 	(2)	 	Capital expenditure by Company exceeding $10,000;

	 	(3)	 	Occurrence of any event or condition having a Material Adverse
Effect on the Company. Notwithstanding the foregoing, the following shall not
constitute a Material Adverse Effect: any change or effect or diminution that
results from (a) compliance with the terms of Section 7.6 of this Agreement, or
(b) any effect on the Company resulting from an action or actions not taken by
Company due to the prohibition of such action or actions under this Agreement
and the failure of Buyer to consent to take such action or actions following a
written request by Company for authorization to take such action or actions.

	 	(4)	 	Destruction, damage to, or loss of any asset of Company
(whether or not covered by insurance) that, individually or in the aggregate,
exceeds $10,000;

	 	(5)	 	Material change in accounting methods or practices by Company
or any change or Material alteration in the manner of keeping the books,
accounts or records of Company;

	 	(6)	 	Material revaluation by Company of any of its assets;

	 	(7)	 	Increase in the salary or other compensation or benefits
payable or to become payable by Company to any of its officers, directors, or
employees, or the declaration, payment, or commitment or obligation of any kind
for the payment by Company of a bonus or other additional salary or
compensation or benefits to any such Person except pursuant to commitments
existing at such date which were consistent with the past practice of Company;

	 	(8)	 	Sale or transfer of any asset of Company exceeding $10,000
except in the ordinary course of business;

	 	(9)	 	Amendment or termination of any contract, agreement or license
(written or oral) to which Company is party and which is identified on
Schedule 5.19A or B hereto or which, but for such amendment or termination,
would have been required to be listed on Schedule 5.19A or B hereto, except in
the ordinary course of business;

	 	(10)	 	Loan by Company to any Person, or guaranty by Company of any
loan or other obligation;

	 	(11)	 	Borrowing of money, or incurrence of debt for borrowed money;

	 	(12)	 	Mortgage, pledge, or other encumbrance of any asset of Company;

	 	(13)	 	Waiver or release of any right or claim of Company, except in
the ordinary course of business;

	 	(15)	 	Commencement, notice, or threat of commencement of any civil
litigation or any governmental proceeding against or investigation of Company;

	 	(15)	 	Organized labor trouble or claim of wrongful discharge or other
unlawful labor practice or action;

	 	(16)	 	Entering into any partnership or joint venture; or

	 	(17)	 	Agreement by Company to do any of the foregoing.

5.8. Absence of Undisclosed Liabilities. Except as otherwise disclosed in Schedule 5.8
herein, Company has no Material debts, liabilities, or obligations of any nature, whether accrued,
absolute, contingent, matured, liquidated, disputed, undisputed, or otherwise, except those
liabilities that (a) are reflected or reserved against in the March 31, 2010 Financial Statements
or (b) were incurred in the ordinary course of Company’s business subsequent to March 31, 2010 and
of the same general nature and amount as past practice.

5.9. Information Regarding Prior Names of Company. Schedule 5.9 hereto lists: all names and
business addresses used by Company within the preceding five years.

5.10. Tax Matters. Except as otherwise disclosed on Schedule 5.10:

	 	(1)	 	The Tax Returns filed by Company have not been reviewed or
audited by the IRS or any similar foreign, state, or local authority;

	 	(2)	 	Within the times and in the manner prescribed by law, Company
has filed all required federal, state, and local Tax Returns or extensions
thereto;

	 	(3)	 	All Tax Returns filed by Company for each taxable year
constitute complete and accurate representations of the tax liabilities for
such years and accurately set forth all items (to the extent required to be
included or reflected in such returns) relevant to their future tax
liabilities, including the tax bases of their properties and assets;

	 	(4)	 	Company has not waived or extended any applicable statute of
limitations relating to the assessment of federal, state, local or foreign
taxes;

	 	(5)	 	No examinations of the federal, state, local, or foreign Tax
Returns of Company are currently in progress nor, to the Knowledge of Sellers,
is any such examination threatened and there is not now pending, nor has there
occurred during the past five years, any Material dispute as to taxes of any
nature payable or allegedly payable by Company;

	 	(6)	 	Company has paid within the time and in the manner prescribed
by law (and until the Closing Date will pay within the time and in the manner
prescribed by law) all Taxes that are due and payable; and

	 	(7)	 	Company has withheld and paid all Taxes required to have been
withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, or other Person for all periods for which the
statutory period of limitations for the assessment of such Tax has not yet
expired and all IRS Forms W-2 and 1099 required with respect thereto have been
properly completed and timely filed.

5.11. Real Property Leases

5.11.1 Schedule 5.11 sets forth a true and complete list of all leases real property (the
“Leased Real Property”) entered into by Company.

5.11.2 Company does not own any real property and does not have a leasehold interest in any
real property used in the conduct of the Business other than the Leased Real Property, which
constitutes all of the real property used in the Business.

5.11.3 Company holds a valid and enforceable leasehold interest in the Leased Real Property.

5.11.4 All of the Leased Real Property is in good condition, normal wear and tear excepted,
and is suitable for the purposes for which it is currently being used.

5.11.5 With respect to the Leased Real Property, to Knowledge of Sellers there exist no
defaults by Company or any default or threatened default by any lessor or third party thereunder,
that has affected or could reasonably be expected to affect the rights and privileges thereunder of
Company, and there has not been any failure to perform any covenant or agreement which constitutes
an event of default (with the giving of notice of passage of time or otherwise) pursuant to any
Lease.

5.11.6 Company’s use and occupancy of the Leased Real Property complies in all Material
respects with all permits, zoning restrictions, and other laws, ordinances, and regulations with
respect to such Leased Real Property.

5.11.7 Except as listed on Schedule 5.11, no third party landlord consents are required for
the Leased Real Property.

5.12. Inventories. Intentionally omitted.

5.13. Other Tangible Personal Property. Schedule 5.13 hereto sets forth a description and the
location of each item of tangible personal property used in or relating to the Business with a
value in excess of $5,000. Buyer has been provided with copies of each lease with an annual lease
payment in excess of $5,000 for personal property used in or relating to the Business or with
respect to which Company is lessee, sublessee, licensee, or other user. With respect to the
foregoing personal property:

5.13.1 Each of the leases described in Schedule 5.13 is in full force and effect and is a
valid and binding obligation of the Sellers;

5.13.2 Neither Company nor to the Knowledge of Sellers any other party to such lease is in
default with respect to any Material term or condition of any such lease or any other agreement
related to such properties, nor to the Knowledge of Sellers has any event occurred which, through
the passage of time or the giving of notice, or both, would constitute a default thereunder or
would cause the acceleration of any obligation of any party thereto or the creation of a lien or
encumbrance upon any asset of Company; and

5.13.3 To the Knowledge of Sellers, each item of tangible personal property listed on Schedule
5.13 that is used in or relating to the Business is in good operating condition ordinary wear and
tear excepted and is suitable for the purpose for which it is currently being used subject to
consumption in the ordinary course of use; and Company has good and marketable title to and is in
possession of all of its tangible personal property free and clear of all liens, pledges, charges,
security interests, restrictions, prior assignments, and encumbrances of any kind, except as set
forth on Schedule 5.13.

5.14. Accounts Receivable. Schedule 5.14 lists all accounts receivable of Company as of May
30, 2010. The accounts receivable arose from valid sales or charges in the ordinary course of
business and are not subject to any defense or offset, except for returns and credits in the
ordinary course of business and less any reserve for doubtful accounts reflected in the Financial
Statements.

5.15. Accounts Payable. Schedule 5.15 lists all accounts payable of Company as of May 30,
2010.

5.16. Proprietary Rights. Schedule 5.16 hereto is a list of all Proprietary Rights, used in
or relating to the Business, together with a brief description of each. Except as set forth in
Schedule 5.16, to the Knowledge of Sellers, no Person has infringed or is infringing on any such
Proprietary Rights. Company has not infringed, and is not now infringing, on any patent, trade
name, trademark, service mark, or copyright belonging to any other Person and no Person has made
any claim of infringement against Company. Except as set forth in Schedule 5.16, Company is not a
party to any license, agreement, or arrangement, whether as licensor, licensee, franchisor,
franchisee, or otherwise, with respect to any such patents, trademarks, service marks, trade names,
or any copyrights, or applications or registrations for such items. Company owns, or holds
adequate licenses, free and clear of any liens or encumbrances, to use, and has full right to use
the Proprietary Rights, which includes all rights necessary for the Business as now conducted and
all such items are listed in Schedule 5.16, and such use does not conflict with, infringe on, or
otherwise violate any rights of others. All registrations and recordings are in full force and
effect and no governmental proceeding, including the possible revocation or cancellation of any
such registration, is pending or, to the Knowledge of Sellers, threatened.

5.17. Actions Regarding Proprietary Rights

5.17.1 Except as set forth in Schedule 5.17, Company has not received any written claim or
notice of any claim or enforcement with respect to the Proprietary Rights from any Person. There
is no existing or, to the Knowledge of Sellers, threatened infringement or violation by others of
Company’s Proprietary Rights.

5.17.2 Except as set forth in Schedule 5.17, Company has:

	 	(1)	 	obtained assignments of all inventions, patent
and patentable rights, and copyrights from all current and past
employees, consultants, and other Persons who contributed to the
discovery or development of any of the Proprietary Rights; and

	 	(2)	 	adopted and implemented such other policies and
procedures, including with respect to confidentiality and assignment of
inventions, as are reasonably necessary to protect and promote
Company’s interests with respect to its Proprietary Rights.

5.17.3 There is no existing or, to the Knowledge of Sellers, threatened violation of the
confidentiality of Company’s Confidential Information or trade secrets.

5.17.4 Company is not making unauthorized use of any Confidential Information or trade secrets
of any Person, including any former employer of any past or present employees or consultants of
Company.

5.17.5 None of the activities of Company employees or consultants on its behalf violates or
has violated any agreements or arrangements that any such employees or consultants have or have had
with former employers.

5.17.6 Each of the employees and consultants who contributed to the discovery or development
of any Proprietary Rights (other than Proprietary Rights licensed to Company by any Person other
than a consultant to Company) did so in each case within the scope of his employment or contractual
relationship with Company.

5.18. Computer Software. Schedule 5.18 hereto describes all computer software and computer
programs (other than off the shelf retail software) used in or relating to the Business, and to the
extent used pursuant to a license or other authorization of a third party, describes such license
or other authorization. Such computer software and programs are owned free and clear of all liens,
pledges, charges, security interests, restrictions, prior arrangements, and encumbrances of any
kind (other than customary restrictions contained in shrink wrap licenses pursuant to which such
software is used), including without limitation, any claim of any present or former employee of
Company who may have developed or participated in the development of any such computer software or
program or any portion thereof. Each license or other authorization pursuant to which Company is
entitled to use any such computer software or program is in full force and effect, is a valid and
binding obligation of the Parties thereto, and is identified on Schedule 5.18 hereto.

5.19. Contracts

5.19.1 Schedule 5.19 lists each professional services agreement, lease, license, contract,
vendor agreement, distribution right, purchase or sales order, and commitment, whether written or
oral (individually, a “Contract” and collectively, “Contracts”), to which Company
is a party or by which it or any of its properties are bound, which is used in or relates to the
Business and which involves expenditures in excess of $5,000 per year and which is not cancelable
within 30 calendar days. Each Contract that contains a change in control clause or otherwise
requires the consent or approval of any Person in connection with the transaction contemplated by
this Agreement is appropriately identified as such on Schedule 5.19.

5.19.2 Schedule 5.19A identifies each professional services contract between the Company and
any customer for the provision of the Company’s professional services, including prospective claims
review, retrospective claims review, and audit services, and such other services as are described
in the Company’s website and promotional literature.

5.19.3 Schedule 5.19B lists any Contract containing any provision related to the following:

	 	(1)	 	A Contract under which the Company or Sellers
have advanced or loaned any other Person money that will not be repaid
or otherwise satisfied at or prior to Closing;

	 	(2)	 	A Contract relating to borrowed money or other
indebtedness (including any capital lease agreements) or the
mortgaging, pledging, or otherwise placing an Encumbrance on any asset
of the Company or the Shares;

	 	(3)	 	A Contract under which the Company is lessor of
or permits any third Person to hold or operate any property owned or
controlled by the Company;

	 	(4)	 	Assignment, license, indemnification agreement,
joint development agreement, or other contract with respect to any
Proprietary Rights;

	 	(5)	 	A Contract containing any covenant not to
compete;

	 	(6)	 	A Contract with any supplier containing any
provision permitting any party other than the Company to renegotiate
the price or other terms thereof, or containing any pay-back,
retroactive adjustment, or other similar provision, upon the occurrence
of a failure by the Company to meet its obligations under Contract when
due or the occurrence of any other event if such Contract involves a
potential pay-back or negative price adjustment in excess of $10,000;

	 	(7)	 	A Contract for the future purchase of fixed
assets or their maintenance or for the future purchase of materials,
supplies, or equipment involving annual consideration of $10,000 or
aggregate consideration in excess of $50,000;

	 	(8)	 	A Contract relating to joint ventures or other
agreements involving a sharing of profits;

	 	(9)	 	A Contract relating to any “lock-box” with any
financial institution;

	 	(10)	 	A guaranty or bond;

	 	(11)	 	A Contract that requires the payment of
royalties, commissions, finder’s fees, or similar payments that
involves in the aggregate annual consideration in excess of $10,000;

	 	(12)	 	Material oral contracts;

	 	(13)	 	A personal guarantee of the Sellers or any
officer of the Company with respect to the operations of the Company;

	 	(14)	 	A Contract or option relating to the purchase
or sale of real property or to construct improvements thereon;

Company has provided or made available to Buyer complete and correct copies of all of the
Contracts identified in Schedules 5.19A and B, (the “Material Contracts”) including all
amendments, waivers, and modifications thereof. The written Material Contracts are valid, binding,
and enforceable against the Company and, to the Knowledge of Sellers, against the other party(ies)
thereto in accordance with their terms and, to the Knowledge of Sellers, are in full force and
effect. Except as set forth on Schedules 5.19A and B, there are currently no breaches or defaults
under any of the Material Contracts on the part of the Company or, to the Knowledge of Sellers, any
other party to the Material Contracts. The Company has not received written notice of any breach
or default under any of the Material Contracts from any other party to the Material Contracts, or
sent notice of any breach or default under any of the Material Contracts to any other party to the
Material Contracts, which breach or default has not been cured as of the Closing Date. To the
Knowledge of Sellers, no event has occurred that, with the giving of notice or the lapse of time,
or both, would constitute a Material breach or default on the part of the Company under any of the
Material Contracts, nor to the Knowledge of Sellers, has any event occurred that with the giving of
notice or the lapse of time, or both, would constitute a Material breach or default on the part of
any other party to any of the Material Contracts. Neither the Company nor, to the Knowledge of the
Sellers, any other party has repudiated any provision of any Material Contract. Each Material
Contract that contains a change in control clause or otherwise requires the consent or approval of
any Person in connection with the transaction contemplated by this Agreement is appropriately
identified as such on Schedules 5.19A and B.

5.20. Adequacy of Assets. Except as otherwise set forth in Schedule 5.20, the Company has
possession of, and right to use, all of the tangible and intangible, real and personal property
assets required for the conduct of the Business as presently conducted, including, but not limited
to, all Proprietary Rights. Except as set forth in Schedule 5.20, all of the assets of the Company
are free and clear of restrictions on or conditions to transfer or assignment and are free and
clear of mortgages, liens, pledges, security interests, charges, encumbrances, equities, claims,
easements, rights of way, covenants, conditions or restrictions, or any other adverse claims,
rights, or encumbrances of any kind or nature whatsoever. Company is in possession of all premises
and other assets leased to it from others.

5.21. Relationships with Vendors. Schedule 5.21 identifies each Person who accounted for
$5,000 or more of Company’s purchases of goods or services (other than employees) for the twelve
(12) months ended May 30, 2010. No vendor has given written notice to Company of any intention to
terminate its existing business relationship with Company, to Materially alter the amount of
business it is presently conducting with Company, or to discontinue, condition, or otherwise limit
its business relationship with Company, whether as a result of the transactions contemplated hereby
or otherwise.

5.22. Labor Relations

5.22.1 No Proceedings or claims are pending or, to the Knowledge of Sellers, threatened
against Company with respect to any violation or alleged violation of any applicable federal,
state, or local laws, rules, and regulations prohibiting discrimination on any basis, including,
without limitation, on the basis of race, color, religion, sex, national origin, age, or disability
and Company has complied in all Material respects with all applicable laws and regulations relating
to discrimination.

5.22.2 No Proceedings or claims are pending or, to the Knowledge of Sellers, threatened
against Company with respect to any violation or alleged violation of any applicable federal,
state, or local laws, rules, and regulations relating to the employment of labor in connection with
the Business, including, without limitation, those related to wages, hours, and collective
bargaining, and Company has complied in all Material respects with all applicable laws and
regulations relating to employment, labor, and affirmative action in connection with the Business.
Company has made all payments and withholdings of taxes and other sums as required by appropriate
governmental authorities and has withheld and paid to the appropriate governmental authorities, or
is holding for payment not yet due to such authorities, all amounts required to be withheld from
employees of Company engaged in the conduct of the Business and is not liable for any arrears of
wages, taxes, penalties, or other sums for failure to comply with any laws, rules or regulations
relating to the foregoing.

5.22.3 Schedule 5.22 sets forth each claim or proceeding of the types referred to in the
preceding Sections 5.22.1 and 5.22.2 that was settled or otherwise resolved on or after January 1,
2007 and which involved the payment of more than $25,000.

5.22.4 Company is not a party to any collective bargaining or union agreement and, with
respect to the Business, Company has not received any notice of, and there is no labor strike,
dispute, grievance, controversy or other labor trouble pending or, to the Knowledge of Sellers,
threatened.

5.23. Employee Benefit Plans and Benefit Arrangements. Schedule 5.23 lists each (i)
“Employee Benefit Plan,” as, such term is defined in Section 3(3) of ERISA, whether written
or oral, that provides or authorizes benefits to any present or former employee (including any
present or former officer, director, or independent contractor) of Company and (ii) “Benefit
Arrangement” which means each contract, agreement, policy, practice, or commitment, whether
written or oral, that provides or authorizes employee benefits for any employee or former employee
(including any current or former officer, director, or independent contractor) of Company, other
than Employee Benefit Plans. Except as set forth on Schedule 5.23, (a) each Employee Benefit Plan
and each Benefit Arrangement complies with, and has been operated in accordance with, all
applicable law, including, without limitation, provisions of ERISA, and (b) no event has occurred
in connection with any Employee Benefit Plan or Benefit Arrangement which has or will result in any
fine, penalty, assessment, or other liability for which Company, or transferee of assets of Company
will be responsible, whether by reason of operation of law or contract.

5.24. Employment and Compensation Arrangements

5.24.1 Schedule 5.24 hereto identifies (i) any pension, profit sharing, deferred compensation,
bonus, stock option, stock purchase, or incentive plan or agreement, written or oral, that is not
already listed on Schedule 5.23; and (ii) each retainer, consulting, severance, employment, or
similar contract or agreement, written or oral, to which Company is a party or by which it is bound
or which relates to the Business. Company has delivered to Buyer copies of all such plans and
agreements, as they are currently in effect. To Sellers’ Knowledge, Company is not, and no other
party is, in default with respect to any Material term or condition thereof, nor has any event
occurred which through the passage of time or the giving of notice, or both, would constitute a
default thereunder or would cause the acceleration of any obligation of any party thereto, or the
creation of a lien or encumbrance upon any asset of Company.

5.24.2 All obligations of Company relating to its employees who participate in the Business,
whether arising by operation of law, by contract, or past custom, for payments to trusts or other
funds or to any governmental agency with respect to workers compensation, unemployment
compensation, social security, or any other benefits for such employees through the date hereof
have been paid or adequate accruals therefore have been made in the Financial Statements of
Company. All obligations of Company with respect to such employees, whether arising by operation
of law, by contract, by past custom, or otherwise, for salaries, vacation and holiday pay, sick
pay, bonuses, other forms of compensation, or other benefits payable to such employees in respect
of the services rendered by any of them prior to the date hereof have been paid or adequate
accruals therefore have been made and are reflected in the Financial Statements of Company.

5.24.3 Schedule 5.24 also sets forth a true and complete list of (i) the names and current
salaries or compensation rates of all of the directors, officers, employees, agents, and
representatives of Company who participate in the conduct of the operating and administering of the
Business and (ii) each employment contract between the Company and any Person listed in clause (i)
of this sentence, copies of which have been furnished or made available to Buyer.

5.25. Insurance. Set forth in Schedule 5.25 is a complete list of insurance policies that
Company maintains with respect to the Business. Such policies are in full force and effect. Since
January 1, 2007, there has not been any Material adverse change in Company’s relationship with its
insurers or in the premiums payable pursuant to such policies. Except as set forth in Schedule
5.25, no claim is pending under any policy listed therein, nor does Company have any retrospective
payment obligations under any such policy. Company has not received any notice or other
communication from any insurance company within the three years preceding the date hereof canceling
or materially amending any insurance policies, and to the Knowledge of Sellers, no such
cancellation or amendment nor any Material increase of premiums is threatened with respect to the
policies listed in Schedule 5.25 hereto. The general liability insurance policy maintained by the
Company is an occurrence-based policy, which provides coverage for future claims based on conduct
that took place during the policy term.

5.26. Permits and Approvals. Except as indicated in Schedule 5.26, Company is in compliance
with all permits, franchises, certificates, accreditations, licenses, and orders, and has received
all approvals of all federal, state, local, or foreign governmental, regulatory bodies, and any
Persons as required by said bodies for Company to carry out the Business, all of which are listed
in Schedule 5.26 (“Required Approvals”). All Required Approvals are and have been in full
force and effect since January 1, 2007 without interruption, and no suspension or cancellation, nor
any proposed adverse modification of any of them, is pending or, to the best Knowledge of Sellers,
threatened, nor do Sellers have Knowledge of any basis for such action or proceeding, and Company
has not received any notice of any such adverse event or potential event.

5.27. Compliance with Applicable Laws

5.27.1 Company has complied in all Material respects with all applicable laws, regulations,
orders, writs, injunctions, and decrees of any governmental authority (collectively,
“Laws”) in connection with its operation of the Business. Company has not received notice
of any violation of any Laws affecting the Business or operations of Company.

5.27.2 Neither Company nor any of its officers, managers, employees, contractors, or agents is
an Ineligible Person. An “Ineligible Person” is an individual or entity who: (i) is
currently excluded, debarred, suspended, or otherwise ineligible to participate in the federal
health care programs or in federal procurement or non-procurement programs; or (ii) has been
convicted of a criminal offense that falls within the ambit of 42 U.S.C. § 1320a-7(a), but has not
yet been excluded, debarred, suspended, or otherwise declared ineligible.

5.27.3 To the Knowledge of Sellers, no officer, director, employee, contractor, or agent of
Company has committed any act that could be deemed to constitute an act of fraud or abuse under any
federal healthcare program, including but not limited to the acts set forth in 32 U.S.C. § 1320a-7a
(Civil Monetary Penalties Act); 42 U.S.C. § 1328-7b(b) (the federal anti-kickback statute); and 31
U.S.C. § 3729 et seq. (the False Claims Act).

5.27.4 Company has maintained, in all Material respects, all records required by federal and
state agencies and private entities with which the Company has contracted including, without
limitation, the federal and state Medicare and Medicaid programs and other governmental agencies
and private entities in connection with its operation of the Business.

5.27.5 Company is in compliance in all Material respects with laws governing privacy of,
access to, and maintenance of confidential information including but not limited to, the Health
Insurance Portability and Accountability Act of 1996 (“HIPAA”) and the regulations
promulgated thereunder by the U.S. Department of Health and Human Services (45 CFR Parts 160, 162
and 164, the “HIPAA Regulations”). These requirements include provisions governing
privacy, security, and electronic transmission of health information under HIPAA; all requirements
applicable to a Covered Entity (as defined under HIPAA) to the extent applicable to Company; and
all requirements of all Business Associate Agreements (as defined under HIPAA) entered into by
Company with Covered Entities); the Health Information Technology for Economic and Clinical Health
Act of 2009 (the “HITECH Act”); California Health and Safety Code § 1280.15; California
Civil Code §§ 1798.82 and 1798.29; and other applicable laws and regulations.  Company has not
received any communication or inquiry (whether written or oral) from any Covered Entity for which
it is a Business Associate, from the Department of Health and Human Services, from the State of
California, or from any other government agency, regarding its failure to comply in any Material
respect with HIPAA or any other privacy related law.

5.28. Environmental Compliance

5.28.1 Company has complied in all Material respects with all applicable local, state, and
federal environmental laws, regulations, ordinances, and administrative and judicial orders
relating to the generation, recycling, use, sale, storage, handling, transfer, and disposal of any
Hazardous Materials.

5.28.2 Company has not been alleged to be in violation of, or been subject to any
administrative, judicial, or regulatory proceeding pursuant to, such laws or regulations.

5.29. Litigation. Schedule 5.29 includes a complete list of all claims against Company or the
Business pending before any Governmental or Regulatory Authority. Except as set forth in Schedule
5.29, to Sellers’ Knowledge there is no suit, action, arbitration, or legal, administrative, or
other proceeding, or governmental investigation, pending or, to the Knowledge of Sellers,
threatened, against or affecting Company and the Business or its financial condition, results of
operations, business, or prospects. Company has furnished or made available to Buyer copies of all
relevant court papers and other documents relating to the matters set forth in Schedule 5.29
hereto. Company is not in default with respect to any order, writ, injunction, or decree of any
federal, state, local, or foreign court, department, agency, or instrumentality. Except as set
forth in Schedule 5.29, Company is not currently engaged in any legal action to recover monies due
to Company or damages sustained by Company arising out of the conduct of the Business.

5.30. Insider Transactions

5.30.1 Company is not indebted to any Insider other than for payment of salary for services
rendered and reimbursement of reasonable expenses.

5.30.2 No Insider is indebted to Company or has any direct or indirect ownership interest in,
or any contractual relationship with, any firm, corporation, or other Person with which Company has
a business relationship, or any firm, corporation, or other third party which, directly or
indirectly, competes with Company.

5.30.3 Other than for the provision of personal services, no Insider is, directly or
indirectly, a party to or otherwise an interested party with respect to any contract with Company.

For purposes of this Agreement, an “Insider” includes the senior executives, employees,
officers, directors, and Sellers of Company, or any immediate family member of any senior
executive, employee, officer, or director.

5.31. Absence of Certain Business Practices. To the Knowledge of Sellers, neither Company nor
any employee, agent or other Person acting on Company’s behalf, has directly, or indirectly, given
or agreed to give any gift or similar benefit to any customer, supplier, competitor, or
governmental employee or official (domestic or foreign) that would subject Company to any Material
damage or penalty in any civil, criminal, or governmental litigation or proceeding.

5.32. Brokers. Except as disclosed on Schedule 5.32, no Person is entitled to any brokerage
commission, finder’s fee, or like payment from Company in connection with the transactions
contemplated by this Agreement.

5.33. Bureau of Citizenship and Immigration Services. Company has complied in all Material
respects with all laws and regulations administered by the Bureau of Citizenship and Immigration
Services (“BCIS”) relating to the Business.

5.34. UCC Liens. Schedule 5.34 contains the results of the UCC Lien search and judgment liens
as of the date contained thereon, as performed by Buyer. To the Knowledge of Sellers, there are no
other security interests, liens, or similar encumbrances against Company or any of the Company’s
assets.

5.35. Full Disclosure. The representations and warranties made by Sellers and the information
provided by Sellers to Buyer in this Agreement, its Schedules and its Exhibits do not contain any
untrue statement of a Material fact or omit a Material fact required to be stated herein or
therein. Copies of all documents heretofore or hereafter delivered or made available to Buyer
pursuant to this Agreement were or will be materially complete and accurate copies of such
documents.

ARTICLE VI

REPRESENTATIONS, WARRANTIES, AND COVENANTS OF BUYER

Buyer represents, warrants, and covenants to and for the benefit of Sellers as follows:

6.1. Organization. Buyer is a New York corporation duly incorporated, validly existing and in
good standing under the laws of the State of New York, with full power to own its properties and to
carry on its business as now owned and operated by it.

6.2. Authorization of Agreement. Buyer has all the requisite right, legal capacity, and
authority to enter into this Agreement and perform its obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement and all other agreements, documents, and
instruments to be executed in connection herewith have been effectively authorized by all necessary
action, which authorization remain in full force and effect, and have been duly executed and
delivered by Buyer, and no other proceedings on the part of Buyer are required to authorize this
Agreement or the transactions contemplated hereby. This Agreement constitutes the legal, valid,
and binding obligation of Buyer and is enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar
laws affecting creditors’ rights generally and general principles of equity.

6.3. Consents and Approvals. No authorization, consent or approval of any public body,
authority, or any third party is necessary for the consummation by Buyer of the transactions
contemplated by this Agreement.

6.4. Agreement Not in Breach of Other Instruments. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby will not (i) violate any
statute, regulation, rule, or law applicable to Buyer or the Articles of Incorporation or Bylaws of
Buyer; or (ii) require the consent, waiver, approval, license, or authorization of, or filing with,
any Person.

6.5. Brokers. Except as set forth on Schedule 6.5, no Person is entitled to any brokerage
commission, finder’s fee, or like payment from Buyer in connection with the transactions
contemplated by this Agreement.

6.6. Current Information. Buyer shall advise Company in writing, as soon as practicable, of:
(i) the occurrence after the date hereof of any event that renders any of the representations or
warranties of Buyer herein to be untrue or inaccurate in any Material respect if made on or as of
the date of such event or the Closing Date; and (ii) the failure of Buyer to perform any of its
covenants or agreements set forth herein in any Material respect.

6.7. Continuing Employees. Promptly after the date hereof, except as to Dennis Demetre, Lori
Lewis, and Shawn Salkeld, Buyer shall cause the Company to continue the employment of each
Continuing Employee listed on Schedule 6.7, on the terms and conditions described in Section 10.1
of this Agreement. Nothing in this Agreement shall limit the right of Buyer or Company to
terminate the employment of any Continuing Employee at any time after the Closing;
provided, however, that Buyer shall be responsible for all liabilities,
obligations, severance, or other termination costs relating to or arising from or with respect to
the termination of the employment of any Continuing Employee at any time after the Closing. The
consulting engagements of Dennis Demetre and Lori Lewis, and the employment of Shawn Salkeld, shall
be governed by their respective agreements with the Company.

6.8. Full Disclosure. The representations and warranties made by Buyer and the information
provided by Company in this Agreement, its Schedules, Exhibits, or filings with any Person, do not,
and will not, contain any untrue statement of a Material fact or omit a Material fact required to
be stated herein or therein. Copies of all documents heretofore or hereafter delivered or made
available to Buyer pursuant to this Agreement were or will be Materially complete and accurate
copies of such documents.

6.9. Sufficient Funds. At the Closing, Buyer shall have sufficient cash on hand to pay the
entire cash portion of the Purchase Price at the Closing.

ARTICLE VII

SELLERS’ AND COMPANY’S OBLIGATIONS BEFORE CLOSING

7.1. Buyer’s Investigation, Access to Premises and Information. Company shall furnish, or
cause to be furnished, to Buyer and its representatives all data and information concerning the
conduct of the operation and administration of the Business and the Company that may reasonably be
requested. In addition, during normal business hours and upon prior notice, Buyer and its counsel,
accountants, and other representatives shall have full access to all properties, books, accounts,
records, contracts, and documents relating to the conduct of the operation and administration of
the Company. Buyer and its representatives shall have full access to the management and other
personnel of Company who participate in the conduct of the operation and administration of the
Business and may contact vendors with whom Company conducts, or has conducted, business with
respect to the Business for purposes of such investigations. Buyer’s access to Company’s books,
records, and personnel shall be conducted in a manner that is not unreasonably disruptive to
Company’s operations.

7.2. Conduct of Operation and Administration in the Normal Course. Company shall carry on the
Business diligently and in substantially the same manner as it has previously been carried out;
shall comply, and cause the Business to comply, with all applicable regulatory and accreditation
requirements; and shall not make or institute any unusual or novel methods of purchase, sale,
lease, management, accounting, or operation that vary Materially from those methods used by Company
as of the date of this Agreement.

7.3. Preservation of Organization and Relationships. Sellers and Company shall use their best
efforts, consistent with past business practices, to preserve Company’s organization intact, keep
available its present officers and employees, and preserve its present relationships with
suppliers, customers, and others having relationships with Company.

7.4. Company Matters. Sellers shall not cause or permit Company to take any action that would
result in a breach of any representations or warranties, or would equate to a violation of Sellers’
and Company’s obligations under this Agreement.

7.5. Maintenance of Insurance. Company shall continue to carry its existing insurance,
subject to minor variations in amounts required by the ordinary operations of its business. Prior
to Closing, Company shall not be required to purchase extended “tail” coverage on its existing
general liability insurance policy because such policy is occurrence-based.

7.6. Refrain from Certain Matters. Company shall not do or agree to do any of the acts
identified in Section 5.7 (Absence of Certain Matters) hereof without Buyer’s prior written
consent.

7.7. Consents. Sellers shall use their best efforts to obtain the waivers, consents,
assignments, acknowledgements, and subordination and/or attornment agreements as may be reasonably
requested by the Buyer, including each of the third party landlord consents described in Schedule
5.11 and each of the contract documents described in Schedule 5.19 in form and substance reasonably
acceptable to the Buyer’s counsel, and the cost or expense to obtain such consent(s) shall be borne
by the Sellers.

7.8. Uniform Commercial Code and Other Lien Searches. Buyer may at its sole expense, conduct
or cause to be conducted a UCC-1 and other lien search in each state and county in which Company
conducts business or maintains any assets or properties. Company shall, on or prior to the Closing
Date (a) remove or cause to be removed all such liens and encumbrances not expressly assumed by
Buyer pursuant to this Agreement, (b) file or cause to be filed in such jurisdiction a release of
such lien or encumbrance, and (c) provide to Buyer evidence satisfactory in form and substance to
Buyer of compliance by Company of the provisions of this section.

7.9. Related Party Accounts Receivable and Accounts Payable. Company shall eliminate all
payables and receivables related to Dennis Demetre and Lori Lewis prior to the Closing.

7.10. FIN 48 Analysis. The Company shall caused to be prepared by an independent certified
public accounting firm or qualified tax counsel an analysis pursuant to FASB Interpretation 48,
Accounting Standards Codification 740, and Accounting Standards Update 2009-06 and provide a copy
of such analysis to Buyer prior to Closing. The cost of such report shall be payable by the
Company prior to Closing or shall constitute a Retained Liability of Sellers.

7.11. Certain Financial Information

7.11.1 Prior to the Closing, Company shall provide Buyer with financial statements of the
Company prepared in accordance with GAAP for the fiscal years ending March 31, 2009 and March 31,
2010. From the date hereof through the Closing Date, Company shall deliver to Buyer immediately
upon the preparation thereof (which shall be accomplished in accordance with past practice)
unaudited monthly financial statements and information.

7.11.2 No later than three (3) business days prior to the Closing Date, Sellers’
Representative shall deliver to Buyer a consolidated balance sheet of the Company as of the Closing
Date (“Estimated Closing Balance Sheet”), prepared in accordance with GAAP and the Company’s past
practices, and a good faith written estimate of the Working Capital Amount as of the close of
business on the Closing Date (“Estimated Working Capital”) calculated in accordance with the
example set forth on Schedule 2.4, and the Net Cash at Closing (“Estimated Net Cash at Closing”).
Sellers shall cause the Company to distribute any Net Cash in excess of the Target Net Cash prior
to issuance of the Estimated Closing Balance Sheet, in order to minimize the purchase price
adjustments required at Closing.

7.12. Transaction Expenses. Whether or not the transaction contemplated hereunder is
completed, Company will bear and pay its own consulting, accounting, legal, regulatory filing, and
other fees, cost, and expenses, and Buyer shall bear and pay its own consulting, accounting, legal,
regulatory filing, and other fees, cost, and expenses.

7.13. Delivery of New Disclosure Items

7.13.1 Company may update the Schedules up to the Closing Date solely to the extent necessary
to disclose any change on the Schedules (“New Disclosure Items”), it being understood
however, that Company has disclosed in the Schedules delivered herewith all matters required to be
disclosed thereon as of the date hereof. New Disclosure Items shall be deemed to supplement or
amend the Schedules for the purpose of determining whether the condition set forth in Section 8.7
has been satisfied.

7.13.2 Prior to the Closing Date, the Company shall deliver to the Buyer a complete copy of
the proposed final Schedules noting all New Disclosure Items. The Company shall promptly disclose
each New Disclosure Item to Buyer specifying in detail each change.

ARTICLE VIII

CONDITIONS PRECEDENT TO BUYER’S PERFORMANCE

The obligations of Buyer to purchase the Shares under this Agreement are subject to the
satisfaction or waiver by Buyer, at or before the Closing, of all the conditions set out below in
this Article VIII.

8.1. Accuracy of Company’s Representations and Warranties. All representations and warranties
by Company in this Agreement, or in any written statement that shall be delivered to Buyer by
Company pursuant to this Agreement, shall be true and correct as of the Closing Date as though made
at that time.

8.2. Performance by Company. Company shall have performed, satisfied, and complied in all
Material respects with all covenants, agreements, and conditions required by this Agreement to be
performed, satisfied, or complied with by Company, on or before the Closing Date.

8.3. No Company Material Adverse Effect. During the period from the date hereof to the
Closing Date, no Company Material Adverse Effect shall have occurred.

8.4. Due Diligence Review. The results of Buyer’s due diligence review shall be satisfactory
to Buyer, in its sole discretion;

8.5. Share Ownership. The issued and outstanding shares of capital stock of the Company shall
on the Closing Date consist solely of the Shares, which are or will be issued in the name of and
owned by the Sellers; and upon Closing, no Person other than the Buyer shall have any interest
whatsoever in the Company’s capital stock (and there shall be no outstanding warrants or other
securities of the Company or instruments convertible into stock in the Company), all of which shall
be free and clear of all Encumbrances.

8.6. Other Consents. All other permits, approvals, and consents required from third parties
(governmental or other) for either party to perform its obligations under this Agreement shall have
been obtained without the imposition of any burdensome conditions or restrictions on either party
that are not in effect on the date hereof. No claim, action, suit, investigation or other
proceeding shall be pending or threatened before any court or governmental agency which presents a
substantial risk of the restraint or prohibition of the transactions contemplated by this
Agreement;

8.7. Schedules. The Schedules as delivered and amended or modified in accordance with Section
7.15 of this Agreement shall be accurate in all Material respects as of the date delivered and as
of the Closing Date, and satisfactory to Buyer in its sole and absolute discretion.

8.8. Consents. Sellers shall have obtained the waivers, consents, assignments,
acknowledgements, and subordination and/or attornment agreements as may be reasonably requested by
the Buyer, including each of the third party landlord consents described in Schedule 5.11 and each
of the contract documents described in Schedule 5.19 in form and substance reasonably acceptable to
the Buyer’s counsel.

8.9. Satisfaction of Tax Liabilities. Company shall have satisfied all outstanding Tax
liabilities for periods prior to the Closing Date other than for the Straddle Period (as described
in Section 13.1) or payroll and non-income tax accruals that are set forth on the Company Balance
Sheet and are part of the Assumed Indebtedness per Section 2.5.

8.10. Consulting Agreements with Key Personnel. Dennis Demetre and Lori Lewis shall have
accepted the consulting agreements with Buyer in the form of Exhibits C and D, respectively

8.11. Employment Agreement with Shawn Salkeld. Shawn Salkeld shall have accepted the
employment agreement with Buyer in the form of Exhibit E.

8.12. Certification by Company and Sellers. Buyer shall have received a certificate, dated
the Closing Date, signed and verified by Sellers and the Secretary of the Company, certifying in
such detail as Buyer and its counsel may reasonably request, that the conditions specified in this
Article VIII have been fulfilled.

8.13. Approval of Documentation. The form and substance of all certificates, instruments,
opinions, and other documents delivered to Buyer under this Agreement shall be satisfactory in all
reasonable respects to Buyer and its counsel.

ARTICLE IX

CONDITIONS PRECEDENT TO SELLERS’ PERFORMANCE

The obligations of Sellers to sell and transfer the Shares under this Agreement are subject to
the satisfaction or waiver by Sellers, at or before the Closing, of all of the following
conditions.

9.1. Accuracy of Buyer’s Representations and Warranties. All representations and warranties
by Buyer contained in this Agreement, or any written statement delivered by Buyer pursuant to this
Agreement, shall be true and correct when made and on and as of the Closing Date as though made at
that time.

9.2. Buyer’s Performance. Buyer shall have performed, satisfied, and complied with all
covenants, agreements and conditions required by this Agreement to be performed, satisfied, or
complied with by Buyer on or before the Closing Date.

9.3. Other Consents. All other permits, approvals, and consents required from third parties
(governmental or other) for either party to perform its obligations under this Agreement shall have
been obtained without the imposition of any burdensome conditions or restrictions on either party
that are not in effect on the date hereof. No claim, action, suit, investigation, or other
proceeding shall be pending or threatened before any court or governmental agency which presents a
substantial risk of the restraint or prohibition of the transactions contemplated by this
Agreement.

9.4. Consulting Agreements with Key Personnel. Dennis Demetre and Lori Lewis shall have
accepted the consulting agreements with Buyer in the form of Exhibits C and D respectively.

9.5. Employment Agreement with Shawn Salkeld. The Company shall have entered into an
agreement with Shawn Salkeld in the form of Exhibit E.

9.6. Employment of Continuing Employees. Each of the Continuing Employees listed in Schedule
6.7 shall be permitted to continue as employees of the Company on an “at will” basis at the
compensation rates and subject to the terms set forth in Schedule 10.1.

9.7. Certification by Buyer. Sellers shall have received a certificate, dated the Closing
Date, signed and verified by Buyer and the Secretary of the Buyer, certifying in such detail as
Seller and its counsel may reasonably request, that the conditions specified in this Article IX
have been fulfilled.

9.8. Approval of Documentation. The form and substance of all certificates, instruments,
opinions, and other documents delivered to Sellers under this Agreement shall be satisfactory in
all reasonable respects to Sellers’ Representative and Sellers’ counsel.

ARTICLE X

OBLIGATIONS AFTER CLOSING

10.1. Continuing Employees and Management

10.1.1 Buyer shall cause the Company to continue the employment of all Continuing Employees
listed in Schedule 6.7 following Closing on an “at will” basis and subject to their acceptance of
the confidentiality/non-solicitation agreement required of HMS employees generally. Compensation
to Continuing Employees other than Sellers shall be at present compensation rates.

10.1.2 Buyer will extend its standard corporate benefits to all Continuing Employees.

10.1.3 Any employees hired by Company after the Closing shall be employed in accordance with
the then-applicable employment policies of Company and Buyer.

10.2. Consulting and Employment Agreements with Key Personnel. Neither the consulting
engagements with Dennis Demetre or Lori Lewis nor the employment agreement with Shawn Salkeld shall
be terminable without cause by Buyer or Company prior to the expiration of the period of the
Contingent Payments (July 1, 2010 – June 30, 2012).

10.3. Use of Names. Sellers agree that, after the Closing Date, they shall not use or employ
in any manner, directly or indirectly, the names set forth on Schedule 5.9 hereto as trade names,
trademarks, Internet domain names, or in any other manner whatsoever.

10.4. Further Assurances. From time to time after the Closing, Sellers will execute and
deliver to Buyer such instruments as may be reasonably requested by Buyer to carry out the purpose
and intent of this Agreement.

10.5. Best Efforts; No Change in Representations and Warranties. Upon the terms and subject
to the conditions hereof, each of the Parties agrees to use its best efforts to take, or cause to
be taken, all actions and to do, or cause to be done, all things necessary, proper, or advisable to
consummate and make effective the transactions contemplated by this Agreement. Each Party shall use
its best efforts to promptly obtain all waivers, permits, consents and approvals and to effect all
registrations, filings, and notices with or to third parties or governmental agencies or
authorities necessary or desirable in connection with the consummation of the transactions
contemplated by this Agreement. So long as they remain engaged by Buyer as consultants, Sellers
shall use their reasonable efforts to cause the management and employees of Company to cooperate
fully with Buyer in order to promote and effect an orderly transition of the Company to Buyer, to
maintain the customer and vendor relationships of Company, and otherwise to provide for the conduct
of the Business after the Closing in substantially the manner as the same is being conducted as of
the date hereof.

ARTICLE XI

CERTAIN UNDERSTANDINGS AND AGREEMENTS

11.1. Nondisclosure of Confidential Information

11.1.1 Sellers acknowledge that the Confidential Information of the Company is special and
unique, which gives it a peculiar value to Buyer, and that, as a Material and ancillary part of the
purchase of the Shares, Buyer wishes to protect such Confidential Information by keeping it secret
and confidential for the sole use and benefit of the Company and Buyer.

11.1.2 Each Seller shall at all times keep and maintain the confidentiality of all
Confidential Information, and will not at any time, either directly or indirectly, use any
Confidential Information for his or her own benefit or divulge, disclose, or communicate any
Confidential Information to any Person in any manner whatsoever, except as specifically permitted
by this Agreement unless compelled to disclose the Confidential Information by judicial or
administrative process or by other requirements of law.

11.1.3 The nondisclosure requirements of this section shall apply to the agents and
representatives of Sellers engaged in connection with this Agreement, and Sellers shall ensure that
each of their respective agents, representatives, and employees having access to Confidential
Information shall, prior to or concurrent with such Person’s receipt thereof, be made aware of the
substance of this section. After Closing, Sellers shall not copy or retain copies of any
Confidential Information, and will not authorize or permit any third Person to copy or retain
copies of any Confidential Information, except to the extent necessary to meet Sellers’ tax
reporting obligations or involving their ongoing duties or obligations to perform services for or
on behalf of the Company or Buyer.

11.1.4 Buyer covenants and agrees that all Confidential Information it or any of its
representatives obtains while conducting due diligence shall be held in strict confidence, unless
Buyer is compelled to disclose the information by judicial or administrative process or by other
requirements of law, and shall not be sold, given, transmitted, or disclosed to any third party
without the prior written consent of Company or Sellers’ Representative. The nondisclosure
requirements of this section shall apply to all of the agents, representatives, and employees of
Buyer, and Buyer shall ensure that each of its agents, representatives, and employees having access
to Confidential Information shall, prior to or concurrent with such Person’s receipt thereof, be
made aware of the substance of this section. In the event this Agreement is terminated prior to
Closing, upon Company’s request, Buyer shall return all books, records, contracts, documents, and
other material obtained by Buyer from Company, including copies thereof, that are still in Buyer’s
possession, or subject to Company’s consent, in lieu of returning the documents, Buyer shall
certify to Company that such books, records, contracts, documents, and other material have been
destroyed or discarded in a secure manner. Additionally, if this Agreement shall terminate prior
to Closing, Buyer agrees that in no instance shall Buyer or any Affiliate of Buyer use the
Confidential Information given to it by Company to compete, directly or indirectly with the
Business, with Company or any of Company’s Affiliates.

11.2. Covenant Not to Compete

11.2.1 Noncompetition. For a period of three (3) years after the Closing Date, each
Seller agrees not to compete with Company, Buyer, or any Affiliate of Buyer (including without
limitation, HMS) in its conduct of the Business, which means that Sellers shall not engage,
directly or indirectly, individually or jointly, in providing any of the services provided as part
of the Business anywhere in the United States of America. The phrase “engage, directly or
indirectly,” shall mean any of the following: engaging directly or indirectly in any aspect of
providing the types of services comprising the Business, including as an employee, officer or
director of any Person other than the Company, Buyer, or its Affiliates; or having an interest,
directly or indirectly, as owner, partner, shareholder, independent contractor, capital investor,
lender, renderer of consultation services or advice, or otherwise, (other than as a holder of less
than two percent (2%) of the outstanding stock of a publicly-traded corporation) either alone or in
association with others, in the operation of any Person or enterprise engaged in any aspect of
providing the types of services comprising the Business. Without limiting the foregoing, the
restrictive covenant contained in this section shall prohibit each Seller from being employed by or
serving as an independent contractor to any healthcare provider, health plan, insurer, or
governmental payor in connection with the provision of any aspect of the types of services
comprising the Business for a period of three (3) years after the Closing Date.

11.2.2 Solicitation. For a period of three (3) years after the Closing Date, no
Seller shall (i) directly or indirectly solicit or attempt to solicit any employee, agent, or
representative of Company, Buyer, or any Affiliate of Buyer to leave any of such entities; or
(ii) directly or indirectly solicit or attempt to solicit any employee, agent, or representative of
Company, Buyer, or any Affiliate of Buyer to become an employee or consultant of any other Person.

11.2.3 Interpretation of Covenant. Sellers acknowledge that Sections 11.2.2 and
11.2.3 above are reasonably necessary to protect the value of the goodwill of the Company being
sold to Buyer and that the provisions therein are a material and ancillary part of the purchase of
the Shares. Sellers agree that the nationwide geographic scope of the covenant not to compete is
reasonable because Company has conducted the Business on a nationwide basis. In the event that any
provision of this section shall to any extent be held invalid, unreasonable, or unenforceable in
any circumstances, the Parties hereto agree that the remainder of this section and the application
of such provision of this section to other circumstances shall be valid and enforceable to the
fullest extent permitted by law. If any provision of this section, or any part hereof, is held to
be unenforceable because of the scope or duration of or the area covered by such provision, the
Parties agree that the court or arbitrator making such determination shall reduce the scope,
duration, and/or area of such provisions (and shall substitute appropriate provisions for any such
unenforceable provisions) and/or shall delete specific words and phrases, but only to the minimum
extent necessary in order to make such provisions enforceable to the fullest extent permitted by
law, and such modified provisions shall then be enforceable and shall be enforced.

11.2.4 Extension of Covered Time. If any Seller violates any of the covenants
contained in this Section 11.2 and Buyer brings legal action for injunctive or other relief
hereunder, Buyer shall not, as a result of the time involved in obtaining the relief, be deprived
of the benefit of the full restrictive period of the covenant not to compete. Any violation of
this covenant not to compete shall automatically toll and suspend the period of the restraint for
the amount of time that the violation continues, provided the Buyer seeks enforcement within ninety
(90) days after discovery of the violation.

11.3. Equitable Relief

11.3.1 Sellers acknowledge and agree that the covenants and undertakings contained in Sections
11.1 and 11.2 relate to matters which are of a special, unique, and extraordinary character and
that a violation of any of the terms of these sections could cause irreparable injury to Company,
Buyer, and their respective Affiliates, the amount of which will be extremely difficult, if not
impossible, to estimate or determine and which cannot be adequately compensated by monetary damages
alone. Therefore, Sellers expressly agree that Buyer, Company, and each of their Affiliates shall
be entitled to an injunction, restraining order, or other equitable relief from any court of
competent jurisdiction, restraining any violation or threatened violation of any of such terms by
Sellers and such other Persons as the court shall order. If Company, Buyer, or an Affiliate of
Buyer commences a court action against Sellers for such injunctive relief, at the conclusion of the
case the prevailing party shall be entitled to a judgment against the non-prevailing party for the
reasonable costs and attorneys’ fees the prevailing party incurred as a result of the action.
Sellers further acknowledge that the restraints imposed upon them pursuant to Sections 11.1 and
11.2 are no greater than are reasonably necessary to preserve and protect Buyer’s and Company’s
reasonable competitive business interests, and that such restraints will not impose an undue
hardship upon Sellers.

11.3.2 Rights and remedies provided for in this section are cumulative and shall be in
addition to rights and remedies otherwise available to the parties under any other agreement or
applicable law.

11.4. Notification of Certain Matters. Between the date of this Agreement and the Closing
Date, each Party will promptly notify the other Party in writing if a Party becomes aware of any
development, fact, or condition that (a) is reasonably likely to result in a Company Material
Adverse Effect; or (b) causes or constitutes a breach of any agreement or covenant under this
Agreement applicable to a Party or any representation or warranty of a Party as of the date of this
Agreement to no longer be true in all Material respects.

ARTICLE XII

INDEMNIFICATION

12.1. Agreement to Indemnify

12.1.1 Indemnification by Company and Sellers. Subject to the limitations contained
in Section 12.1.2 and the survival provisions of Section 12.2, Sellers, jointly and severally, for
all purposes in Article XII shall indemnify, defend, and hold harmless Buyer and its Affiliates
(including, after Closing, the Company) and their respective officers, directors, shareholders,
employees, agents, and Affiliates (collectively, “Buyer Indemnitees”) against any and all
losses, costs, expenses, claims, damages, or liabilities (including any reasonable legal, audit, or
other expenses incurred by them in connection with investigating any claims and defending any
Actions and the amount of any settlement and expenses of enforcing this Agreement) (collectively
“Losses”) which the Buyer Indemnitees suffer, incur, or become subject to, and reimburse
the Buyer Indemnitees for such Losses, insofar as such Losses arise out of or are based upon:

	 	(1)	 	Any breach of any representation or warranty
made by the Company or Sellers in this Agreement or in any schedule or
certificate required to be delivered pursuant to this Agreement;

	 	(2)	 	Any breach or default in performance by Sellers
of any covenant, agreement, or condition to be performed or observed by
Sellers under this Agreement;

	 	(3)	 	Any Taxes of Company relating to periods prior
to the Closing Date, including any Taxes and costs as a result of any
failure by the Company or the Sellers to pay any Taxes attributable to
periods ending on or before the Closing Date, including any Taxes that
result from Company’s change in method of accounting, claims of R&D tax
credits, and tax filing and payment responsibilities in states other
than California, or that are payable as a result of transactions
occurring at the Closing;

	 	(4)	 	Any Action relating to the Business arising
from or relating to events occurring prior to the Closing to the extent
not covered by insurance; or

	 	(5)	 	The Retained Liabilities.

12.1.2 Limitation on Sellers’ Indemnity. The obligations of Sellers under Section
12.1.1 hereof shall be subject to the following limitations:

	 	(1)	 	No claim for indemnity by Buyer pursuant to
Section 12.1.1 hereof shall be made unless and until the aggregate
dollar amount of all such claims shall have exceeded FIFTY THOUSAND
DOLLARS ($50,000) (in which case Sellers shall be obligated to
indemnify, defend, and hold harmless Buyer Indemnitees from all Losses
in excess of FIRTY THOUSAND DOLLARS ($50,000)).

	 	(2)	 	The maximum aggregate liability of Sellers for
claims for indemnity by Buyer Indemnitees pursuant to Section 12.1.1
hereof for any breach of representation or warranty contained in
Section 5.1, Section 5.2, Section 5.8, Section 5.10, Section 5.23,
Section 5.27, and/or Section 5.31, or based upon any claim for
indemnification pursuant to Sections 12.1.1 (3), (4), and (5) shall not
exceed the sum of: (i) THIRTEEN MILLION DOLLARS ($13,000,000); plus or
minus (ii) the Post Closing Adjustment, as determined pursuant to
Section 2.6 of this Agreement; plus the amount of any Contingent
Payment owed pursuant to Section 4.1 of this Agreement paid or owing or
that may become due under the Agreement (collectively, the
“Purchase Price”), except that any claim based on (i) fraud;
(ii) intentional misrepresentation; or (iii) breach of the
representations contained in Sections 5.1 and 5.2 (the “Fundamental
Representations”) shall not be subject to the foregoing cap.

	 	(3)	 	The maximum aggregate liability of Sellers for
claims for indemnity by Buyer Indemnitees pursuant to Section 12.1.1
hereof, to the extent not described in Section 12.1.2(2), shall not
exceed that portion of the Escrow Amount that has not been released to
Sellers pursuant to Section 2.3.

12.1.3 Indemnification by Buyer. Buyer shall indemnify, defend and hold harmless
Sellers, against any and all Losses which the Sellers suffer, incur, or become subject to, and
reimburse the Sellers for such Losses, insofar as such Losses arise out of or result from any of
the following:

	 	(1)	 	Any breach of any representation or warranty
made by Buyer in this Agreement or in any schedule or certificate
required to be delivered pursuant to this Agreement;

	 	(2)	 	Any breach or default in performance by Buyer
of any covenant, agreement, or condition to be performed or observed by
Buyer under this Agreement;

	 	(3)	 	Any Taxes of company relating to periods
following to the Closing Date, including any Taxes and costs as a
result of any failure by the Company or the Buyer to pay any Taxes
attributable to periods ending on or after the Closing Date; or

	 	(4)	 	Any Action relating to the Business arising
from or relating to events occurring after the Closing to the extent
not covered by insurance.

12.1.4 Notice of Claim for Indemnification. If a Party entitled to indemnification
(an “Indemnified Party”) becomes aware of any basis for indemnification under this
Section 12.1, the Indemnified Party, as a precondition to indemnification, shall notify the Party
obligated to provide indemnification (the “Indemnifying Party”) in writing of the claim
within sixty (60) days after becoming aware of such claim, specifying in reasonable detail the
circumstances and facts that give rise to a claim under this Section 12.1. Buyer Indemnitees may
satisfy the notice requirement of this section by giving such notice to the Sellers’
Representative.

12.1.5 Insurance Offset. Any recovery by an Indemnified Party from an Indemnifying
Party hereunder shall be net of any insurance or other proceeds received by the Indemnified Party
in connection with such Losses, but shall not be net of any tax loss or other benefits realized by
the Indemnified Party.

12.2. Survival of Representation and Warranties

12.2.1 Except as hereinafter provided in this section, all representations and warranties of
each Party contained herein (including the Schedules) and all claims of any Indemnified Party in
respect to any inaccuracy or misrepresentation in or breach of any representation or warranty of
any Indemnifying Party contained in this Agreement, shall be deemed to have been remade at the
Closing and shall survive the Closing and shall expire three (3) years after the Closing Date.
However, any claims that are pending or have been otherwise asserted on or before such anniversary
shall remain eligible for indemnification until their resolution. Company and Sellers on the one
hand and Buyer on the other shall provide each other a list of unresolved claims as of such
anniversary within ten (10) days thereafter.

12.2.2 Notwithstanding any term in this Article XII to the contrary, the Sellers
representations and warranties in Section 5.1 (Organization, Qualification and Authorization) and
Section 5.2 (Company’s Capital Structure shall survive indefinitely; the survival period with
respect to Section 5.10 (Tax Matters), Section 5.23 (Employee Benefit Plans and Benefit
Arrangements), Section 5.27 (Compliance with Applicable Laws), Section 5.31 (Absence of Certain
Business Practices), the Buyer’s warranties in Article VI, and fraud and intentional
misrepresentation by any of the parties hereto shall be the applicable statute of limitations plus
thirty (30) days; and the survival period with respect to any claim based on Section 12.1.1 (3)
shall be the statute of limitations applicable to the payment of such Taxes plus thirty (30) days.

12.3. Indemnification with Respect to Third Party Claims

12.3.1 The Indemnified Party shall give notice of the commencement of any legal action or
proceeding, or written assertion of a claim, brought by a third party for which indemnification is
provided under this Article XII (a “Third Party Claim”) to the Indemnifying Party within
twenty (20) days following the Indemnified Party’s receipt thereof, together with copies of any
complaint, summons, written assertion of such Third Party Claim, or similar document. No claim for
indemnification on account of a Third Party Claim shall be made and no indemnification therefore
shall be available under this article unless and until the Indemnified Party shall have given
initial written notice of its claim to the Indemnifying Party as provided herein.

12.3.2 Except as hereinafter provided (including Section 12.3.3), the Indemnifying Party shall
have the right to engage counsel and to defend a Third Party Claim, provided that the Indemnifying
Party shall have furnished notice of its election to defend to the Indemnified Party within thirty
(30) days following delivery of a notice of a Third Party Claim, together with a written
acknowledgement that the Indemnifying Party is obligated under the terms of this Agreement to
provide indemnity with respect to such Third Party Claim (hereinafter collectively referred to as
the “Notice of Acceptance”). If the Sellers are the Indemnifying Party, then the Sellers
must give the Notice of Acceptance jointly in order for it to be effective. The Indemnified Party
will reasonably cooperate with counsel selected by the Indemnifying Party. The Indemnified Party
may elect, at its own expense, to participate in such defense, but the indemnifying Party shall
control such defense. If the Indemnifying Party fails to give a Notice of Acceptance within thirty
(30) days after receipt of a claim notice respecting a Third Party Claim, then the Indemnified
Party may take control of the defense and engage counsel of its choosing to defend the same without
prejudice to any of its rights under this Agreement or under applicable law.

12.3.3 Notwithstanding the provisions of Section 12.2.2, if the named parties to an Action or
Proceeding include both the Indemnifying Party and the Indemnified Party, and the Indemnified Party
has been advised in writing by counsel that there may be one or more legal defenses available to
such Indemnified Party that are different from or additional to those available to the Indemnifying
Party, then the Indemnified Party will be entitled to separate counsel of its own choosing and to
participate in the defense without prejudice to any of its rights under this Agreement or under
applicable law.

12.3.4 The Indemnifying Party may settle any Third Party Claim solely involving monetary
damages only if the amount of such settlement is to be paid entirely by the Indemnifying Party
pursuant to this Article XII. The Indemnifying Party will not enter into a settlement of a Third
Party Claim which involves a non-monetary remedy or which will not be paid entirely by the
Indemnifying Party without the written consent of the Indemnified Party. If the Indemnifying Party
has not assumed the defense of a Third Party Claim within the time provided in Section 12.3.2
hereof, the Indemnified Party shall be free to compromise, defend, and settle the Third Party Claim
without prejudice to any of its rights hereunder or under applicable law. In determining whether
to accept or reject any settlement proposal, the Indemnified Party and the Indemnifying Party shall
act in good faith and with due regard for the reasonable commercial and financial interests of the
other.

12.3.5 Notwithstanding the foregoing, in the event of any settlement of, or final judgment
with respect to, a Third Party Claim which relates to acts, omissions, conditions, events or other
matters occurring both before and after the Closing Date, the Indemnified Party and the
Indemnifying Party shall negotiate in good faith as to the portion of such Third Party Claim as to
which such indemnification is payable.

12.3.6 The Indemnified Party and the Indemnifying Party shall cooperate with one another in
good faith in connection with the defense, compromise, or settlement of any claim or action.
Without limiting the generality of the foregoing, the Party controlling the defense or settlement
of any matter shall take steps reasonably designed to ensure that the other Party and its counsel
are informed at all times of the status of such matter. Neither Party shall dispose of,
compromise, or settle any claim or action in a manner that is not reasonable under the
circumstances and in good faith. The Indemnifying Party shall enter into such confidentiality and
other nondisclosure agreements as the Indemnified Party shall reasonably request in order to
protect trade secrets and other confidential or proprietary information of the Indemnified Party or
any Affiliate of it. The Indemnified Party shall make available to the Indemnifying Party, upon
request, all information reasonably necessary for the Indemnifying Party to evaluate or respond to
any claim, investigation, or action relating to the period prior to the Closing Date (in the case
Company is the Indemnifying Party), to the period after the Closing Date (in the case Buyer is the
Indemnifying Party), or to a claim for indemnification.

12.4. Other Provisions. Notwithstanding anything to the contrary contained in this Agreement,
the Sellers shall not have any right of contribution, indemnification, or similar right (whether at
common law, by statute, or otherwise) from or against the Company with respect to any claim arising
pursuant to this Article XII; and effective as of the Closing, the Sellers hereby waive and release
the Company and its successors and assigns from any such right of contribution, indemnification, or
similar right with respect to any claim against the Sellers arising pursuant to this Article XII.

12.5. Materiality. Notwithstanding anything contained in this Agreement to the contrary, for
purposes of determining the amount of Losses that are the subject matter of a claim for
indemnification or reimbursement hereunder, each representation and warranty in this Agreement and
schedules and exhibits hereto shall be read without giving effect to the term “Material” or
“Material Adverse Effect” or similar phrases contained in such representation or warranty which has
the effect of making such representation and warranty less restrictive (as if such word were
deleted from such representation and warranty).

12.6. Exclusive Remedy. Except as provided in Section 11.3, the indemnification given by the
Parties under this Agreement shall be the Parties’ sole and exclusive remedy, each against the
other, with respect to all matters of any kind or nature whatsoever respecting the Business except
for any claims arising out of or relating to the fraud or intentional misrepresentation of any
Party.

12.7. Exclusions from Losses. Notwithstanding any provision of this Article XII, except with
respect to a third party claim that is the subject of indemnification pursuant to this Article XII,
no Party shall be entitled to indemnification under this Article XII with respect to consequential,
punitive, and exemplary damages.

12.8. Claims Against Escrow and Right of Set-Off. Upon issuance of a notice of claim for
indemnification to Sellers’ Representative pursuant to Section 12.1.4 of this Agreement, Buyer may
give notice of a claim under the Escrow Agreement. If the funds held in escrow pursuant to the
Escrow Agreement are insufficient to offset Buyer’s reasonable estimate of the amount of the claim
and the claim is a type described in Section 12.1.2 (2), then Buyer may also set off the amount of
such deficiency against any Contingent Payment otherwise due Sellers pursuant to Article IV of this
Agreement. The exercise of such right of set-off by Buyer in good faith, whether or not ultimately
determined to be justified, will not constitute an event of default under Article IV of this
Agreement. Neither the exercise of nor the failure to exercise such right of set-off or to give
notice of a claim under the Escrow Agreement will constitute an election of remedies or limit Buyer
in any manner in the enforcement of any other remedies that may be available to it.

ARTICLE XIII

TAX MATTERS

13.1. Returns; Indemnification; Liability for Taxes. Sellers shall prepare and file (or cause
to be prepared and filed) on a timely basis all Tax Returns with respect to the Company for all
taxable periods ending on or before the Closing Date (“Company Tax Returns”) and shall pay
directly or promptly reimburse Buyer as provided hereunder:

	 	 	 	(1)  All Taxes of the Company for all taxable years or periods which
end on or before the Closing Date;

	 	 	 	(2)  All Taxes for all taxable years or periods of all members or
subsidiaries of any affiliated, unitary, or combined group of which the Company
is or has been a member prior to the Closing Date; and

	 	 	 	(3)  With respect to any taxable period commencing before the
Closing Date and ending after the Closing Date (“Straddle Period”), all Taxes
of the Company attributable to the portion of the Straddle Period prior to and
including the Closing Date (the “Pre-Closing Period”), to the extent
such Taxes are not deducted or otherwise accounted for in arriving at Final
Working Capital Amount as reflected in the Closing Balance Sheet.

For purposes of this Agreement, the portion of any Tax that is attributable to the Pre-Closing
Period shall be:

	 	 	 	(1)  In the case of a Tax that is not based on net income, gross
income, sales, premiums, or gross receipts, the total amount of such Tax for
the period in question multiplied by a fraction, the numerator of which is the
number of days in the Pre-Closing Period, and the denominator of which is the
total number of days in such Straddle Period, and

	 	 	 	(2)  In the case of a Tax that is based on any of net income, gross
income, sales, premiums, or gross receipts, the Tax that would be due with
respect to the Pre-Closing Period if such Pre-Closing Period were a separate
taxable period, except that exemptions, allowances, deductions, or credits that
are calculated on an annual basis (such as the deduction for depreciation or
capital allowances) shall be apportioned on a per diem basis.

13.2. Transfer Taxes. Any and all transfer, sales, use, bulk sales, recording, registration,
documentary, stamp, or other similar Taxes and all conveyance fees, recording charges, and similar
fees and charges (including any penalties and interest) incurred in connection with the transfer of
the Shares contemplated by this Agreement shall be paid by the Sellers when due. The parties will
file all necessary Tax Returns and other documentation with respect to all such Taxes, fees, and
charges, and if required by applicable law, the parties will join in the execution of any such Tax
Returns or other documentation.

13.3. Post-Closing Returns. Buyer shall prepare and file (or cause to be prepared and filed)
on a timely basis all Tax Returns of Company relating to periods ending after the Closing Date or
related to the Straddle Period and shall pay (i) all Taxes of the Company for any taxable year or
period commencing after the Closing Date; and (ii) all Taxes of the Company for any Straddle Period
(other than Taxes attributable to the Pre-Closing Period which if paid by Buyer pursuant to this
Section 13.1 shall be promptly reimbursed by Sellers). Buyer shall provide a copy of any such Tax
Returns relating to the Straddle Period at least thirty (30) days prior to the date on which it is
filed and Sellers shall have the opportunity to comment on and request changes to such Tax Return
within five (5) business days after receipt of such Tax Return. Buyer shall make all adjustments
necessary to comply with the terms of this Agreement and shall in good faith consider all other
comments and changes requested by Sellers.

13.4. Refunds and Credits. All refunds or credits of Taxes for or attributable to taxable
years or periods of the Company ending on or before the Closing Date (or the Pre-Closing Period, in
the case of a Straddle Period) which are not reflected on the Closing Balance Sheet shall be for
the account of Sellers; all other refunds or credits of Taxes, for or attributable to the Company
shall be for the account of Buyer. Following the Closing, Buyer shall cause the Company to forward
to Sellers any such refunds or credits due Sellers pursuant to this section after receipt or
realization thereof by Buyer, and Sellers shall promptly forward (or cause to be forwarded) to
Buyer any refunds or credits due to Buyer pursuant to this section after receipt or realization
thereof by Sellers, in each case in accordance with the provisions of Section 13.5.2. Any payments
of refunds or credits for Taxes required to be paid under this Agreement shall be made within
twenty (20) business days of the receipt of any refund or realization of any credit, as the case
may be. Any payments not made within such time period shall be subject to an interest charge of
six percent (6%) per annum.

13.5. Conduct of Audits and Other Procedural Matters

13.5.1 Each Party shall, at its own expense, control any audit or examination by any taxing
authority, and have the right to initiate any claim for refund or amended return, and contest,
resolve, and defend against any assessment, notice of deficiency, or other adjustment or proposed
adjustment of Taxes (“Tax Proceedings”) for any taxable period for which that party is
charged with payment or indemnification responsibility under this Agreement, including the
Pre-Closing Period if applicable. In the case of any Tax Proceedings relating to any Straddle
Period, Buyer shall control such Tax Proceedings and shall consult in good faith with Sellers as to
the conduct of such Tax Proceedings.

13.5.2 Each Party shall promptly forward to the other all written notifications and other
written communications, including if available the original envelope showing any postmark, from any
taxing authority received by such party or its Affiliates relating to any liability for Taxes for
any taxable period for which such other party or any of its Affiliates is charged with payment or
indemnification responsibility under this Agreement.

13.5.3 Each Indemnifying Party shall promptly notify, and consult with, each Indemnified Party
as to any action it proposes to take with respect to any liability for Taxes for which it is
required to indemnify another party and shall not enter into any closing agreement or final
settlement with any taxing authority with respect to any such liability without the written consent
of the Indemnified Parties, which consent shall not be unreasonably withheld.

13.5.4 Each Party shall, at the expense of the requesting Party, execute or cause to be
executed any powers of attorney or other documents reasonably requested by such requesting Party to
enable it to take any and all actions such Party reasonably requests with respect to any Tax
Proceedings which the requesting Party controls.

13.5.5 The failure by a Party to provide timely notice under this subsection shall relieve the
other Party from its obligations under this section with respect to the subject matter of any
notification not timely forwarded, to the extent the other Party has suffered a Loss or other
economic detriment because of such failure to provide notification in a timely fashion.

13.6. Assistance and Cooperation. After the Closing Date, Sellers and Buyer shall (and cause
their respective Affiliates to):

	 	(1)	 	Assist the other Party in preparing any Tax Returns which such
other Party is responsible for preparing and filing in accordance with
Section 13.1;

	 	(2)	 	Cooperate fully in preparing for any audits of, or disputes
with taxing authorities regarding, any Tax Returns of the Company;

	 	(3)	 	Make available to the other Party and to any taxing authority
as reasonably requested all information, records, and documents relating to
Taxes of the Company;

	 	(4)	 	Provide timely notice to the other Party in writing of any
pending or threatened Tax audits or assessments of the Company for taxable
periods for which the other may have a liability under this Article XIII; and

	 	(5)	 	Furnish the other with copies of all correspondence received
from any taxing authority in connection with any Tax audit with respect to any
taxable period for which the other may have a liability under this
Article XIII.

ARTICLE XIV

TERMINATION

14.1. Termination. This Agreement may be terminated and the transactions contemplated by this
Agreement abandoned at any time prior to the Closing:

	 	(1)	 	By mutual written consent of the Sellers’ Representative and
Buyer;

	 	(2)	 	By either the Sellers’ Representative or Buyer, by delivery of
written notice of such termination to the other, if the Closing shall not have
been consummated on or before August 31, 2010 (the “Termination Date”),
unless the Termination Date is extended by written agreement of the Sellers’
Representative and Buyer; provided, however, that the right to terminate this
Agreement under this paragraph shall not be available to any Party whose
failure to fulfill any obligation under this Agreement has been the cause of,
or resulted in, the failure of the Closing to occur on or prior to such date;

	 	(3)	 	By the Sellers’ Representative, by delivery of written notice
of such termination to Buyer, if there has been a breach of any representation,
warranty, or covenant made by Buyer in this Agreement, such that any condition
in Article IX would not be satisfied and which has not been cured by Buyer
within fifteen (15) business days after receipt of written notice from the
Sellers’ Representative requesting such breach to be cured; provided that the
right to terminate this Agreement pursuant to this section shall not be
available to the Sellers’ Representative if the failure of the Sellers to
fulfill any of their obligations under this Agreement has been the primary
cause of, or resulted in, such breach;

	 	(4)	 	By Buyer, by delivery of written notice of such termination to
the Sellers’ Representative, if there has been a breach of any representation,
warranty, or covenant made by the Company or Sellers in this Agreement, such
that any condition in Article VIII would not be satisfied and which has not
been cured by the Company or Sellers, as applicable, within fifteen (15)
business days after receipt of written notice from Buyer requesting such breach
to be cured; provided that the right to terminate this Agreement pursuant to
this section shall not be available to Buyer if the failure of Buyer to fulfill
any of its obligations under this Agreement has been the primary cause of, or
resulted in, such breach; or

	 	(5)	 	By either the Sellers’ Representative or Buyer, if any
Governmental or Regulatory Authority shall have issued an order, decree, or
ruling or taken any other action restraining, enjoining, or otherwise
prohibiting the consummation of the transactions contemplated by this Agreement
and such order, decree, ruling, or other action shall have become final and
nonappealable.

14.2. Effect of Termination. If this Agreement is terminated pursuant to Section 14.1, all
rights and obligations of the Parties hereunder shall terminate and no Party shall have any
liability to the other Party, except for obligations of the parties hereto in Section 11.1
(Nondisclosure of Confidential Information), Section 14.2 (Effect of Termination), Section 15.2
(Notices), Section 15.8 (Choice of Law; Venue and Forum) and 15.4 (Payment of Expenses), which
shall survive the termination of this Agreement. Notwithstanding anything to the contrary
contained herein, termination of this Agreement pursuant to Section 14.1 shall not release any
Party from any liability for any breach by such Party of the terms and provisions of this Agreement
prior to such termination. Nothing in this Section 14.2 or elsewhere in this Agreement shall
impair the right of Buyer, prior to any termination of this Agreement pursuant to this Section
14.2, to compel specific performance by the Parties of their obligations hereunder at the time
herein called for.

ARTICLE XV

MISCELLANEOUS

15.1. Sellers’ Representative. The Sellers hereby make, constitute, and appoint Dennis
Demetre and Lori Lewis as attorney-in-fact (the “Sellers’ Representative”) for the Sellers
and authorize, empower, and grant to them acting together but not alone full power and authority to
take or omit to take any and all actions required or permitted to be taken by them pursuant to or
in connection with: the Closing; the Closing Date Balance Sheet; the Calculation of Closing Date
Net Working Capital; the Post Closing Adjustment and the calculation of Claims Review and Audit
Adjusted EBITDA; Indemnification of Third Party Claims; and the Ancillary Agreements. The power
and authority granted to the Sellers’ Representative shall include the right to amend, modify, or
waive any term or provision of this Agreement or any other agreement or document executed in
connection therewith; the right to issue or determine not to issue any notice required or permitted
hereunder or thereunder; and the right to accept and disburse any payments made pursuant to this
Agreement. This appointment is irrevocable and coupled with an interest and shall survive any
dissolution or liquidation of the Company. In the event of the incapacitation, death, or other
occurrence that results in an inability of either or both of Dennis Demetre or Lori Lewis to
perform his/her duties as Sellers’ Representative, then Christopher Brandon Lewis will be appointed
as Sellers’ Representative.

15.2. Notices. All notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or three (3) days after being mailed by
certified or registered mail, postage prepaid, return receipt requested, addressed as follows:

If to Buyer:

	 
	Health Management Systems, Inc.

401 Park Avenue South

New York, NY 10016

Attn :Walter Hosp

Chief Financial Officer

With a copy to:

Mark Fitzgerald, Esq.

Powers Pyles Sutter & Verville, PC

1501 M Street, N.W., Seventh Floor

Washington, DC 20005

If to Company:

	 	 	 
	Allied Management Group – Special Investigation Unit, Inc.

	9825 Park Center Drive, Suite 102

	Santa Ana, CA 92705

Attn:

	 	

Dennis Demetre

With a copy to:

Brian A. Basil, Esq.

Murray Murphy Moul & Basil, LLP

1533 Lake Shore Drive

Columbus, OH 43204

If to Sellers:

Dennis Demetre, Lori Lewis, John Alfred Lewis and Christopher

Brandon Lewis

c/o Christopher Brandon Lewis, Esq.

18501 Auburn Ave.

Santa Ana, CA 92705

or at such other addresses as the Parties may designate by written notice in the manner aforesaid.

15.3. Publicity. Company and Sellers agree that press releases and other widely disseminated
public announcements to be made by any of them with respect to the Agreement or the transactions
contemplated hereby prior to the Closing shall be subject to mutual agreement, not to be
unreasonably withheld.

15.4. Payment of Expenses. Except as otherwise specified in this Agreement, each Party to
this Agreement will pay its own legal, accounting, out-of-pocket, and other expenses incident to
this Agreement and to any action taken by such Party in preparation for carrying this Agreement
into effect, it being expressly understood and agreed among the Parties that any such fees and
expenses relating to the transactions contemplated by this Agreement or the agreements executed or
delivered pursuant to this Agreement incurred by the Company on or prior to the Closing shall be
borne and paid solely by the Sellers.

15.5. Assignment. This Agreement shall not be assignable by operation of law or otherwise;
provided, however, that Buyer may assign its right to acquire the Shares to any Affiliate of Buyer,
provided that no such assignment shall relieve Buyer of its obligations hereunder for which Buyer
shall be jointly and severally liable to Sellers along with the Affiliate of Buyer that acquired
the Shares. This Agreement shall be binding on and shall inure to the benefit of the Parties
hereto and their respective successors and permitted assigns, and no other Person will have any
right, benefit, or obligation under this Agreement as a third-party beneficiary or otherwise.

15.6. Entire Agreement; Modification; Waiver. This Agreement, its Schedules and Exhibits
constitute the entire agreement among the Parties pertaining to the subject matter contained
herein, and supersede all prior and contemporaneous agreements, representations and undertakings of
the Parties. No supplement, modification, or amendment of this Agreement shall be binding unless
executed in writing by all Parties. No waiver of any of the provisions of this Agreement shall be
deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any
waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by
the Party making the waiver.

15.7. Interpretation. 15.7.1 This Agreement is the result of negotiations between the
Parties. Each Party has received independent legal advice from its attorneys with respect to the
advisability of executing this Agreement and the meaning of its provisions. Accordingly, each
provision shall be construed as to its fair meaning and not for or against a Party based upon any
attribution to it or another Party as the source of the provision.

15.7.2 In this Agreement, unless otherwise indicated or required by the context:

	 	(1)	 	Words in the singular form include the plural
and conversely;

	 	(2)	 	Words signifying one gender include the others;

	 	(3)	 	Pronouns signifying a natural person include
any other Person or an entity and conversely;

	 	(4)	 	“Or” is not exclusive;

	 	(5)	 	Forms of the verb “include” are not limiting;

	 	(6)	 	Other grammatical uses and forms of a term with
a common meaning (e.g., “tax”) given a specialized meaning herein have
analogous specialized meanings;

	 	(7)	 	“Hereof,” “herein,” “hereunder,” and words of
similar construction refer to this Agreement as a whole and not to any
particular part;

	 	(8)	 	A reference to a Person includes both natural
persons and legal entities of any kind, including corporations, limited
liability companies, partnerships, and governmental agencies, and (A)
in the case of a Person other than a governmental authority, the
Person’s lawful and permitted successors and assigns, or (B) in the
case of a governmental agency, Persons succeeding to its powers and
functions;

	 	(9)	 	A reference to an article, section, schedule,
exhibit or other part of a document is to such part hereof;

	 	(10)	 	A reference to a law or statute includes (A)
any regulation or rule promulgated under the law or statute and (B) any
binding interpretation of the law, statute, regulation, or rule; and

	 	(11)	 	A reference to a law or regulation with respect
to a given point in time includes any amendment, modification, or
replacement of such law or regulation in effect at such time..

15.8. Choice of Law; Venue and Forum. This Agreement will be construed, interpreted and the
rights of the Parties determined in accordance with the laws of the State of New York (without
reference to the choice of law provisions of any jurisdiction), except with respect to matters of
law concerning the internal corporate affairs of any corporate entity which is a Party to or the
subject of this Agreement, and as to those matters the law of the jurisdiction under which the
respective entity derives its powers will govern. Any litigation shall be brought in the state or
federal courts located in New York, and the Parties consent to such jurisdiction and venue.

15.9. Headings. The headings of the sections and subsections of this Agreement are included
for convenience only and shall not affect the construction or interpretation of this Agreement’s
provisions.

15.10. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute but one and the same
instrument. This Agreement may be executed and delivered by facsimile transmission or by electronic
mail, and a facsimile or electronic copy of this Agreement or of a signature of a Party will be
effective as an original.

15.11. Invalidity. In the event that any one or more of the provisions contained in this
Agreement or in any other instrument referred to in this Agreement, will, for any reason, be held
to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by
law, such invalidity, illegality or unenforceability will not affect any other provision of this
Agreement or any other such instrument.

1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

HMS HOLDINGS CORP.

	 	 	 
	By:

	 	/s/ Walter D. Hosp
	
 
	 	 
	Title:

	 	SVP and Chief Financial Officer
	
 
	 	 

ALLIED MANAGEMENT GROUP-SPECIAL INVESTIGATION UNIT, INC.

	 	 	 
	By:

	 	/s/Dennis Demetre
	
 
	 	 
	Name:

Title:

	 	Dennis Demetre

Chief Executive Officer

DENNIS DEMETRE

 /s/ Dennis Demetre

Seller

JOHN ALFRED LEWIS

 /s/ John Alfred Lewis

Seller

LORI LEWIS

 /s/ Lori Lewis

Seller

CHRISTOPHER BRANDON LEWIS

/s/ Christopher Brandon Lewis  

Seller

2

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