Document:

EX-10.1

HEALTH FITNESS CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

(As amended through May 27, 2009)

     The following constitutes the provisions of the Health Fitness Corporation Employee Stock
Purchase Plan (the “Plan”) sponsored by Health Fitness Corporation (the “Company”), as amended from
time to time.

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through payroll
deductions. It is the intention of the Company that the Plan qualify as an “employee stock
purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and
the regulations issued thereunder. The provisions of the Plan shall, accordingly, be construed so
as to extend and limit participation in a manner consistent with the requirements of that Code
Section 423.

     2. Definitions.

          2.1 “Administrator” means the Board of Directors or such Committee appointed by the Board of
Directors to administer the Plan. The Board or the Committee may, in its sole discretion,
authorize the officers of the Corporation to carry out the day-to-day operation of the Plan. In
its sole discretion, the Board may take such actions as may be taken by the Administrator, in
addition to those powers expressly reserved to the Board under this Plan.

          2.2 “Board” means the Board of Directors of the Company.

          2.3 “Common Stock” means the Common Stock, $.01 par value, of the Company.

          2.4 “Compensation” means gross pay, including all other amounts such as amounts attributable
to overtime, shift premium, incentive compensation, bonuses and commissions (except to the extent
that the exclusion of any such item is specifically directed by the Board or the Committee, in a
manner consistent with the requirements of Code Section 423).

          2.5 “Designated Subsidiaries” means those Subsidiaries which have been designated by the Board
from time to time in its sole discretion as eligible to participate in the Plan.

          2.6 “Employee” means any person, including an officer, who is employed by the Company or one
of its Designated Subsidiaries.

          2.7 “Offering Date” means the first day of each Offering Period.

          2.8 “Offering Period” means the period beginning on the date that the option is granted and
ending on the date that the option is exercised, as set forth in Paragraph 4.

          2.9 “Subsidiary” means any corporation, domestic or foreign, in which the Company owns,
directly or indirectly, 50% or more of the voting shares.

          2.10 “Termination Date” means the last day of each Offering Period.

     3. Eligibility.

          3.1 Any Employee who (i) is regularly scheduled to work at least 20 hours per week, (ii) has
been employed by the Company or one of its Designated Subsidiaries for at least 30 days prior to
the Offering Date, and (iii) is not designated as an on-call or temporary employee in the Company’s
payroll system shall be eligible to participate in the Plan, subject to the limitations imposed by
Code Section 423(b). Further, individuals employed as interns or who provide services as
independent contractors shall not be eligible to participate in the Plan.

          3.2 Notwithstanding any provisions of the Plan to the contrary, no Employee shall be granted
an option under the Plan if,

 

          3.2.1 Immediately after the grant, such Employee (or any other person whose stock
ownership would be attributed to such Employee pursuant to Code Section 424(d)) would own
shares and/or hold outstanding options to purchase shares possessing five percent (5%) or
more of the total combined voting power or value of all classes of shares of the Company or
of any Subsidiary, or

          3.2.2 The rate of withholding under such option would permit the employee’s rights to
purchase shares under all employee stock purchase plans of the Company and its Subsidiaries
to accrue (i.e., become exercisable) at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of fair market value of such shares (determined at the time such option is granted)
for each calendar year in which such option is outstanding at any time.

          3.3 For purposes of Paragraph 3.1, the Administrator shall grant credit for service with such
entities as shall be acquired by or as shall become affiliated with the Company from time to time
as provided in the applicable asset purchase, merger or similar agreement or as approved by the
Company by resolution of the Board.

     4. Offerings. The Plan shall be implemented by one or more offering periods of six
months each (hereinafter referred to as an “Offering Period”). Unless otherwise determined by the
Administrator, in its discretion, each Offering Periods shall commence on January 1st
and July 1st of each year during the term of the Plan, with the first Offering Period
commencing January 1, 1996, and ending June 30, 1996. No two Offering Periods shall run
concurrently.

     5. Participation.

          5.1 An eligible Employee may become a participant in the Plan by completing a subscription
agreement authorizing payroll deductions on the form provided by the Company and filing it with the
Company’s Human Resources Department not less than 15 days prior to the applicable Offering Date,
or such other date determined by the Administrator for all eligible Employees with respect to the
Offering Period.

          5.2 Payroll deductions for a participant shall commence with the first paycheck issued
immediately after the Offering Date and shall terminate with the paycheck issued immediately prior
to the Termination Date, unless terminated earlier as provided in Paragraph 10.

          5.3 An eligible Employee who elects to participate in an Offering Period shall be deemed to
have elected to participate in each subsequent Offering Period unless such participant elects to
withdraw from the Plan as provided in Paragraph 10. In that event, such participant must complete
a new subscription agreement and file such form with the Company’s Human Resources Department not
less than 15 days prior to the Offering Date for the Offering Period in which the participant
wishes to participate, or such other date determined by the Administrator.

     6. Payroll Deductions.

          6.1 The participant shall designate in his or her subscription agreement designate a
percentage of such participant’s Compensation to be deducted during the Offering Period. Such
percentage shall be at least one percent (1%) but not more than ten percent (10%) of the
participant’s Compensation to be paid during the Offering Period, or such other maximum percentage
as the Administrator may establish from time to time; provided, that the participant’s aggregate
payroll deductions during the Offering Period shall not exceed ten percent (10%), or such other
maximum percentage as may be determined by the Administrator, of the Compensation which the
participant would otherwise have received during the Offering Period.

          6.2 Unless the participant elects to withdraw as provided in Paragraph 10, the Company shall
continue to withhold from the participant’s Compensation the same percentage specified by the
participant in the most recent enrollment form previously completed by the participant in all
subsequent Offering Periods; provided, however, that the participant may, if he or she so chooses,
increase, decrease or discontinue payroll deductions for any or all such subsequent Offering
Periods by properly completing a new subscription agreement prior to the Offering Date for such
subsequent Offering Period and delivering such form to the Company’s Human Resource Department
office by the date provided in Paragraph 5.1.

          6.3 In the event that the participant’s Compensation is, for any reason, increased or
decreased during an Offering Period, so that the amount actually withheld on behalf of the
participant as of the termination date of the Phase is different from the amount anticipated to be
withheld as determined on the Offering Date, then the extent to which the participant may exercise
his or her option shall be based on the amounts actually withheld on his or her behalf, subject to
the limitations contained herein. In the event of a change in the

 

pay period of any participant, such as from biweekly to monthly, an appropriate adjustment shall be
made to the deduction in each new pay period so as to ensure the deduction of the proper amount
authorized by the participant.

          6.4 All payroll deductions authorized by a participant shall be credited to the participant’s
account under the Plan. A participant may not make any additional payments into such account.

          6.5 A participant may discontinue his or her participation in the Plan as provided in
Paragraph 10, but may not decrease or increase the rate of his or her payroll deductions during the
Offering Period.

     7. Grant of Option.

          7.1 On each Offering Date, each participant shall be granted an option to purchase (at the
option price) that number of whole shares of the Company’s Common Stock determined by dividing the
total payroll deductions to be accumulated for the participant during such Offering Period by
ninety-five percent (95%) of the fair market value of a share of the Company’s Common Stock at the
Termination Date, subject to the limitations set forth in Paragraphs 3.2 and 12 hereof. The fair
market value of a share of the Company’s Common Stock shall be determined as provided in Paragraph
7.2 herein.

          7.2 The option price per share shall be ninety-five percent (95%) of the price for a share of
the Company’s Common Stock at the close of the regular trading session of the Nasdaq National
Market, Nasdaq SmallCap Market or other established securities exchange as of the Termination Date.

          In the event that the Termination Date is a Saturday, Sunday or holiday, the amounts
determined under the foregoing subsections shall be determined using the price at the close of the
regular trading session on the last preceding trading day. If the Company’s Common Stock is not
listed on the Nasdaq National Market, Nasdaq SmallCap Market or on an established securities
exchange, then the option price shall equal ninety-five percent (95%) of the fair market value of
such stock as of the Termination Date. Such “fair market value” shall be determined by the Board,
in its sole discretion by applying principles of valuation and such other factors the Board
determines relevant.

     8. Exercise of Option. Unless a participant withdraws from the Plan as provided in
Paragraph 10, the participant’s option shall be exercised automatically at the Termination Date, In
no event shall the participant be allowed to exercise an option for more shares of Common Stock
than can be purchased with the payroll deductions accumulated by the participant in his or her
bookkeeping account during such Phase. During his lifetime, a participant’s option to purchase
shares hereunder is exercisable only by him.

     9. Delivery. As promptly as practicable after the Termination Date of the Offering
Period, the Company shall arrange the delivery to each participant, as appropriate, of a
certificate representing the shares purchased upon exercise of his or her option. Any accumulated
payroll deductions remaining after the exercise of the participant’s option shall be returned to
the participant, without interest, as soon as administratively practicable after the Termination
Date; provided, however, that the Company may, under rules of uniform application, retain such
remaining amount in the participant’s account and apply it toward the purchase of shares of Common
Stock in the next succeeding Phase, unless the participant requests a withdrawal of such amount
pursuant to Paragraph 10.

     10. Withdrawal: Termination of Employment.

          10.1 A participant may withdraw all, but not less than all, the accumulated payroll deductions
credited to his or her account under the Plan any time prior to the Termination Date by giving
written notice to the Company on a form provided for such purpose. All of the accumulated payroll
deductions credited to the participant’s account will be paid to the participant as soon as
practicable after receipt of his or her notice of withdrawal, the participant’s option for the
current Offering Period will be automatically canceled, and no further payroll deductions for the
purchase of shares will be made during such Offering Period.

          10.2 Upon termination of the participant’s employment for any reason, including retirement or
death, the accumulated payroll deductions credited to the participant’s account will be returned to
the participant as soon as practicable after such termination of employment or, in the case of the
participant’s death, to the person or persons entitled thereto under Paragraph 14, and the
participant’s option will be automatically canceled.

          10.3 A participant’s employment shall be deemed to have terminated on the date that the
participant ceases to perform any services for the Company. Notwithstanding the foregoing, the
participant shall not be deemed to have ceased to be an employee for purposes of the Plan until the
91st day of any bona fide leave of absence approved by the Company or a Designated

 

Subsidiary (including, but not limited to, a layoff), unless the participant’s right to
reemployment is guaranteed either by statute or contract.

          10.4 A participant’s withdrawal from an Offering Period will not have any effect upon the
participant’s eligibility to participate in a succeeding offering or in any similar plan which may
hereafter be adopted by the Company.

     11. Interest. No interest shall accrue on the payroll deductions credited to the
participant’s account in the Plan.

     12. Stock.

          12.1 The maximum number of shares of the Company’s Common Stock which shall be reserved for
sale under the Plan shall be 700,000 shares, subject to further adjustment upon changes in
capitalization of the Company as provided in Paragraph 18. The shares to be sold to participants
in the Plan may be, at the election of the Company, either treasury shares or shares authorized but
unissued. If the total number of shares which would otherwise be subject to options granted
pursuant to Paragraph 7.1 hereof at the Offering Date exceeds the number of shares then available
under the Plan (after deduction of all shares for which options have been exercised or are then
outstanding), the Company shall make a pro rata allocation of the shares remaining available for
option grants in as uniform and equitable a manner as is practicable. In such event, the Company
shall give written notice of such reduction of the number of shares subject to the option to each
participant affected thereby and shall return any excess funds accumulated in each participant’s
account as soon as practicable after the termination date of such offering period.

          12.2 The participant shall have no rights as a shareholder with respect to any shares of
Common Stock subject to the participant’s option until the date of the issuance of a stock
certificate evidencing such shares as provided in Paragraph 9. No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions
or other rights for which the record date is prior to the date such stock certificate is actually
issued, except as otherwise provided in Paragraph 18 hereof.

          12.3 Shares to be delivered to a participant under the Plan will be registered in the name of
the participant or, if the participant so directs by written notice to the Administrator prior to
the Termination Date, in the names of the participant and his or her spouse as joint tenants with
rights of survivorship, to the extent permitted by law.

     13. Administration. Except for those matters expressly reserved to the Board pursuant
to any provision of the Plan, the Administrator shall have full responsibility for administration
of the Plan, which responsibility shall include, but shall not be limited to, the following:

          13.1 The Administrator shall, subject to the provisions of the Plan, establish, adopt and
revise such rules and procedures for administering the Plan, and shall make all other
determinations as it may deem necessary or advisable for the administration of the Plan;

          13.2 The Administrator shall, subject to the provisions of the Plan, determine all terms and
conditions that shall apply to the grant and exercise of options under this Plan, including, but
not limited to, the number of shares of Common Stock that may be granted, the date of grant, the
exercise price and the manner of exercise of an option. The Administrator may, in its discretion,
consider the recommendations of the management of the Company when determining such terms and
conditions;

          13.3 The Administrator shall have the exclusive authority to interpret the provisions of the
Plan, and each such interpretation or determination shall be conclusive and binding for all
purposes and on all persons, including, but not limited to, the Company and its Subsidiaries, the
shareholders of the Corporation and its Subsidiaries, the Administrator, the directors, officers
and employees of the Corporation and its Subsidiaries, and the participants and the respective
successors-in-interest of all of the foregoing; and

          13.4 The Administrator shall keep minutes of its meetings or other written records of its
decisions regarding the Plan and shall, upon requests, provide copies to the Board.

          13.5 Members of the Board or the Committee who are eligible employees are permitted to
participate in the Plan, provided that:

               13.5.1 Members of the Board who are eligible to participate in the Plan may not vote on any
matter affecting the administration of the Plan or the grant of any option pursuant to the Plan;
and

 

               13.5.2 No member of the Board who is eligible to participate in the Plan may be counted in
determining the existence of a quorum at any meeting of the Board during which action is taken with
respect to the granting of options pursuant to the Plan.

     14. Designation of Beneficiary.

          14.1 A participant may file a written designation of a beneficiary who is to receive shares
and/or cash, if any, from the participant’s account under the Plan in the event of such
participant’s death at a time when cash or shares are held for his account.

          14.2 Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant in the absence of a valid designation of a
beneficiary who is living at the time of such participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the participant; or if no such
executor or administrator has been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant; or if no spouse, dependent or relative is known to the Company, then
to such other person as the Company may designate.

     15. Transferability. Neither payroll deductions credited to a participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution, or as provided in Paragraph 14 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect, except that
the Company may treat such act as an election to withdraw funds in accordance with Paragraph 10.

     16. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions.

     17. Reports. Individual accounts will be maintained for each participant in the Plan.
Statements of account will be given to participating employees semi-annually as soon as
practicable following the Termination Date, which statements will set forth the amounts of payroll
deductions, the per share purchase price, the number of shares purchased and the remaining cash
balance, if any. Each participant shall be provided, not less frequently than annually, with
copies of the audited financial statements of the Company.

     18. Adjustments Upon Changes in Capitalization.

          18.1 Subject to any required action by the shareholders of the Company, in the event of an
increase or decrease in the number of outstanding shares of Common Stock or in the event the Common
Stock is changed into or exchanged for a different number or kind of shares of stock or other
securities of the Company or another corporation by reason of a reorganization, merger,
consolidation, divestiture (including a spin-off), liquidation, recapitalization, reclassification,
stock dividend, stock split, combination of shares, rights offering or any other change in the
corporate structure or shares of the Company, the Board (or, if the Company is not the surviving
corporation in any such transaction, the board of directors of the surviving corporation), in its
sole discretion, shall adjust the number and kind of securities subject to and reserved under the
Plan and, to prevent the dilution or enlargement of rights of those participants to whom options
have been granted, shall adjust the number and kind of securities subject to such outstanding
options and, where applicable, the exercise price per share for such securities; provided, however,
that conversion of any convertible security of the Company shall not require such adjustment.
Except as expressly provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to
option.

          18.2 In the event of the sale by the Company of substantially all of its assets and the
consequent discontinuance of its business, or in the event of a merger, exchange, consolidation,
reorganization, divestiture (including a spin-off), liquidation, reclassification or extraordinary
dividend (collectively referred to as a “transaction”), after which the Company is not the
surviving corporation, the Board may, in its sole discretion, at the time of adoption of the plan
for such transaction, provide for one or more of the following:

          18.2.1 The acceleration of the exercisability of outstanding options granted at the
Offering Date for the Offering Period then in effect, to the extent of the accumulated
payroll deductions credited to each participant’s account as of the date of such
acceleration;

 

          18.2.2 The complete termination of this Plan and a refund of amounts credited to the
participants’ accounts hereunder; or

          18.2.3 The continuance of the Plan only with respect to completion of the then current
Offering Period and the exercise of options thereunder. In the event of such continuance,
participants shall have the right to exercise their options as to an equivalent number of
shares of stock of the corporation succeeding the Company by reason of such transaction.

In the event of a transaction where the Company survives, then the Plan shall continue in effect,
unless the Board takes one or more of the actions set forth above. The grant of an option pursuant
to the Plan shall not limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes in its capital or business structure or to merge,
exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business
or assets.

     19. Amendment or Termination. The Plan may be terminated at any time by the Board of
Directors, provided that, except as permitted in Paragraph 18.2 hereof, no such termination shall
take effect with respect to any options then outstanding. The Board may, from time to time, amend
the Plan as it may deem proper and in the best interests of the Company or as may be necessary to
comply with Code Section 423, as amended, and the regulations thereunder, or other applicable laws
or regulations; provided, however, no such amendment shall, without the consent of a participant,
materially adversely affect or impair the right of a participant with respect to any outstanding
option; and provided, further, that no such amendment shall:

          19.1 Increase the total number of shares for which options may be granted under the Plan
(except as provided in Paragraph 18.1 herein);

          19.2 Materially modify any requirements as to eligibility for participation in the Plan; or

          19.3 Materially increase the benefits accruing to participants under the
Plan;

without the approval of the Company’s shareholders, if such approval is required for compliance
with Code Section 423, as amended, and the regulations thereunder, or other applicable laws or
regulations.

     20. Notices. All notices or other communications by a participant to the Company in
connection with the Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     21. Shareholder Approval. This Plan, as amended, was most recently approved by the
shareholders of the Company at the annual shareholders’ meeting held on May 16, 2001.

     22. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares pursuant
thereto shall comply with all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. As a condition to the exercise of an
option and if required by applicable securities laws, the Company may require the participant for
whose account the option is being exercised to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any present intention
to sell or distribute such shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned applicable provisions of law.

     23. Term. Unless terminated earlier pursuant to Paragraph 19, this Plan shall
terminate on the date specified by the Board.EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of May 26, 2009, to
be effective June 1, 2009 (the “Effective Date”) by and between PRG-Schultz International, Inc., a
Georgia corporation (the “Company”), and Robert B. Lee (the “Executive”). This Agreement
supersedes, replaces and terminates any employment agreement previously entered into by and among
the Company and/or any of its subsidiaries and the Executive.

WITNESSETH:

     WHEREAS, the Company considers the availability of the Executive’s services to be important to
the management and conduct of the Company’s business and desires to secure the availability of the
Executive’s services; and

     WHEREAS, the Executive is willing to make the Executive’s services available to the Company on
the terms and subject to the conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth and intending to be legally bound, the Company and the Executive agree as
follows:

     1. Employment and Duties.

          (a) Position. The Company hereby employs the Executive, and the Executive hereby
accepts such employment, as the Chief Financial Officer, Treasurer and Controller of the Company,
on the terms and subject to the conditions of this Agreement. The Executive agrees to perform such
duties and responsibilities as are customarily performed by persons acting in such capacity or as
are assigned to Executive from time to time by the Board of Directors of the Company or its
designees. The Executive acknowledges and agrees that from time to time the Company may assign
Executive additional positions with the Company or the Company’s subsidiaries, with such title,
duties and responsibilities as shall be determined by the Company. The Executive agrees to serve
in any and all such positions without additional compensation. The Executive will report directly
to the Chief Executive Officer of the Company.

          (b) Duties. The Executive shall devote the Executive’s best efforts and full
professional time and attention to the business and affairs of the Company and the Company’s
subsidiaries. During the Term, Executive shall not serve as a director or principal of any other
company or charitable or civic organization without the prior written consent of the Board of
Directors of the Company. The principal place of employment of the Executive shall be the
Company’s executive offices in Atlanta, Georgia, subject to reasonable travel on the business of
the Company or the Company’s subsidiaries. The Executive shall be expected to follow and be bound
by the terms of the Company’s Code of Conduct and Code of Ethics for Senior Financial Officers and
any other applicable policies as the Company from time to time may adopt.

     2. Term. This Agreement is effective as of the Effective Date, and will continue
through the first anniversary of the Effective Date, unless terminated or extended as hereinafter
provided. This Agreement shall be extended for successive one-year periods following the original
term (through each subsequent anniversary thereafter) unless any party notifies the other in
writing at least 30 days prior to the end of the original term, or the end of any additional
one-year renewal

 

 

term, that the Agreement shall not be extended beyond its then current term. The term of this
Agreement, including any renewal term, is referred to herein as the “Term.”

     3. Compensation.

          (a) Base Salary. The Company shall pay the Executive an annual base salary of
$205,000. The annual base salary shall be paid to the Executive in accordance with the established
payroll practices of the Company (but no less frequently than monthly) subject to ordinary and
lawful deductions. The Compensation Committee of the Company will review the Executive’s base
salary from time to time to consider whether any increase should be made. The base salary during
the Term will not be less than that in effect at any time during the Term.

          (b) Annual Bonus. During the Term, the Executive will be eligible to participate in
an annual incentive bonus plan that will establish measurable criteria and incentive compensation
levels payable to the Executive for performance in relation to defined targets established by the
Compensation Committee of the Company’s Board of Directors, after consultation with management, and
consistent with the Company’s business plans and objectives. To the extent the targeted
performance levels are exceeded, the incentive bonus plan will provide a means by which the annual
bonus will be increased. Similarly, the incentive plan will provide a means by which the annual
bonus will be decreased or eliminated if the targeted performance levels are not achieved. In
connection with such annual incentive bonus plan, subject to the corresponding performance levels
being achieved, the Executive shall be eligible for an annual target bonus equal to 50 percent of
the Executive’s annual base salary and an annual maximum bonus equal to 100 percent of the
Executive’s annual base salary. Any bonus payments due hereunder shall be payable to the Executive
no later than the 15th day of the third month following the end of the applicable year
to which the incentive bonus relates. For calendar year 2009, the Executive’s annual incentive
bonus shall be equal to the sum of (i) a prorated bonus for the period from January 1, 2009 through
May 31, 2009, based on the bonus plan that would have been applicable to the Executive for 2009
(including a target bonus of $50,000 and a maximum bonus of $100,000), had he not accepted the
offer to become the Company’s Chief Financial Officer, and (ii) a prorated bonus under this Section
3(b) based on the number of days that Executive is actually employed by the Company as its Chief
Financial Officer during 2009 (beginning with the Effective Date).

          (c) Stock Compensation. The Executive also shall be eligible to receive stock
options, restricted stock, stock appreciation rights and/or other equity awards under the Company’s
applicable equity plans on such basis as the Compensation Committee or the Board of Directors of
the Company or their designees, as the case may be, may determine on a basis not less favorable
than that provided to the class of employees that includes the Executive. Except as specifically
set forth above, however, nothing herein shall require the Company to make any equity grants or
other awards to the Executive in any specific year.

     4 Indemnity. The Company and the Executive will enter into the Company’s standard
indemnification agreement for executive officers.

     5. Benefits.

          (a) Benefit Programs. The Executive shall be eligible to participate in any plans,
programs or forms of compensation or benefits that the Company or the Company’s

2

 

subsidiaries provide to the class of employees that includes the Executive, on a basis not
less favorable than that provided to such class of employees, including, without limitation, group
medical, disability and life insurance, paid time-off, and retirement plan, subject to the terms
and conditions of such plans, programs or forms of compensation or benefits.

          (b) Paid Time-Off. The Executive shall be entitled to five weeks of paid time-off, to
be accrued and used in accordance with the normal Company paid time-off policy.

     6. Reimbursement of Expenses. The Company shall reimburse the Executive, subject to
presentation of adequate substantiation, including receipts, for the reasonable travel,
entertainment, lodging and other business expenses incurred by the Executive in accordance with the
Company’s expense reimbursement policy in effect at the time such expenses are incurred. In no
event will such reimbursements, if any, be made later than the last day of the year following the
year in which the Executive incurs the expense.

     7. Termination of Employment.

          (a) Death or Incapacity. The Executive’s employment under this Agreement shall
terminate automatically upon the Executive’s death. If the Company determines that the Incapacity,
as hereinafter defined, of the Executive has occurred, it may terminate the Executive’s employment
and this Agreement. “Incapacity” shall mean the inability of the Executive to perform the
essential functions of the Executive’s job, with or without reasonable accommodation, for a period
of 90 days in the aggregate in any rolling 180-day period.

          (b) Termination by Company For Cause. The Company may terminate the Executive’s
employment during the Term of this Agreement for Cause. For purposes of this Agreement, “Cause”
shall mean, as determined by the Board of Directors of the Company in good faith, the following:

          (i) the Executive’s willful misconduct or gross negligence in connection with the
performance of the Executive’s duties which the Board of Directors of the Company believes
does or is likely to result in material harm to the Company or any of its subsidiaries;

          (ii) the Executive’s misappropriation or embezzlement of funds or property of the
Company or any of its subsidiaries;

          (iii) the Executive’s fraud or dishonesty with respect to the Company or any of its
subsidiaries;

          (iv) the Executive’s conviction of, indictment for (or its procedural equivalent), or
entering of a guilty plea or plea of no contest with respect to any felony or any other
crime involving moral turpitude or dishonesty; or

          (v) the Executive’s breach of a material term of this Agreement, or violation in any
material respect of any code or standard of behavior generally applicable to officers of the
Company (including, without, limitation the Company’s Code of Conduct, Code of Ethics for
Senior Financial Officers and any other applicable policies as the Company from time to time
may adopt), after being advised in writing of such breach or

3

 

violation and being given 30 days to remedy such breach or violation, to the extent
that such breach or violation can be cured;

          (vi) the Executive’s breach of fiduciary duties owed to the Company or any of its
subsidiaries;

          (vii) the Executive’s engagement in habitual insobriety or the use of illegal drugs or
substances; or

          (viii) the Executive’s willful failure to cooperate, or willful failure to cause and
direct persons under the Executive’s management or direction, or employed by, or consultants
or agents to, the Company or its subsidiaries to cooperate, with all corporate
investigations or independent investigations by the Board of Directors of the Company or its
subsidiaries, all governmental investigations of the Company or its subsidiaries or orders
involving the Executive, the Company or the Company’s subsidiaries entered by a court of
competent jurisdiction.

Notwithstanding the above, and without limitation, the Executive shall not be deemed to have been
terminated for Cause unless and until there has been delivered to the Executive (i) a letter from
the Board of Directors of the Company finding that the Executive has engaged in the conduct set
forth in any of the preceding clauses and specifying the particulars thereof in detail and (ii) a
copy of a resolution duly adopted by the affirmative vote of the majority of the members of the
Board of Directors of the Company who are not officers of the Company at a meeting of the Board of
Directors called and held for such purpose or such other appropriate written consent (after
reasonable notice to the Executive and an opportunity for the Executive, together with the
Executive’s counsel, to be heard before the Board of Directors of the Company), finding that the
Executive has engaged in such conduct and specifying the particulars thereof in detail.

          (c) Termination by Executive for Good Reason. The Executive may terminate the
Executive’s employment for Good Reason. For purposes of this Agreement, “Good Reason” shall mean,
without the Executive’s consent, the following:

          (i) any action taken by the Company which results in a material reduction in the
Executive’s authority, duties or responsibilities as Chief Financial Officer of the Company
(except that any change in the foregoing that results solely from (A) the Company ceasing to
be a publicly traded entity or from the Company becoming a wholly-owned subsidiary of
another publicly traded entity or (B) any change in the geographic scope of the Executive’s
authority, duties or responsibilities will not, in any event and standing alone, constitute
a substantial reduction in the Executive’s authority, duties or responsibilities), including
any requirement that the Executive report directly to anyone other than the Chief Executive
Officer of the Company;

          (ii) the assignment to the Executive of duties that are materially inconsistent with
Executive’s authority, duties or responsibilities as Chief Financial Officer of the Company;

          (iii) any material decrease in the Executive’s base salary or annual bonus opportunity
or the benefits generally available to the class of employees that includes the

4

 

Executive, except to the extent the Company has instituted a salary, bonus or benefits
reduction generally applicable to all executives of the Company other than in contemplation
of or after a Change in Control;

          (iv) the relocation of the Executive to any primary place of employment other than as
specified in Section 1(b) above which might require the Executive to move the Executive’s
residence which, for this purpose, means any reassignment to a place of employment 50 miles
or more from the place (or, if applicable, all places) of employment set forth in Section
1(b), without the Executive’s express written consent to such relocation; provided, however,
this subsection (iv) shall not apply in the case of business travel which requires the
Executive to relocate temporarily for periods of 90 days or less;

          (v) the failure by the Company to pay to the Executive any portion of the Executive’s
base salary, annual bonus or other benefits within 10 days after the date the same is due;
or

          (vi) any material failure by the Company to comply with the terms of this Agreement.

Notwithstanding the above, and without limitation, “Good Reason” shall not include (x) any
resignation by the Executive where Cause for the Executive’s termination by the Company exists and
the Company then follows the procedures described above, or (y) any removal of Executive from the
offices or positions of Controller, Treasurer and/or any other position or office other than Chief
Financial Officer. The Executive must give the Company notice of any event or condition that would
constitute “Good Reason” within 30 days of the event or condition which would constitute “Good
Reason,” and upon the receipt of such notice the Company shall have 30 days to remedy such event or
condition. If such event or condition is not remedied within such 30-day period, any termination
of employment by the Executive for “Good Reason” must occur within 30 days after the period for
remedying such condition or event has expired.

          (d) Termination by Company Without Cause or by Executive Other than For Good Reason.
The Company may terminate the Executive’s employment during the Term of this Agreement without
Cause, and Executive may terminate the Executive’s employment for other than Good Reason, upon 30
days’ written notice. The Company may elect to pay the Executive during any applicable notice
period (in accordance with the established payroll practices of the Company, no less frequently
than monthly) and remove him from active service.

          (e) Termination by Executive on Failure to Renew. The Executive may terminate the
Executive’s employment at any time on or before the expiration of the Term of the Agreement, if the
Company notifies the Executive that the Term of the Agreement shall not be extended as provided in
Section 2 above.

     8. Obligations of the Company Upon Termination.

          (a) Without Cause; Good Reason; Non-Renewal (No Change in Control). If, during the
Term, the Company terminates the Executive’s employment without Cause in accordance with Section
7(d) hereof, the Executive terminates the Executive’s employment for Good Reason in accordance with
Section 7(c) hereof, or the Executive terminates the Executive’s employment upon

5

 

the Company’s failure to renew the Agreement in accordance with Section 7(e) hereof, other
than within two years after a Change in Control, subject to Section 20 below, the Executive shall
be entitled to receive:

          (i) payment of the Executive’s annual base salary in effect immediately preceding the
date of the Executive’s termination of employment (or, if greater, the Executive’s annual
base salary in effect immediately preceding any action by the Company described in Section
7(c)(iii) above for which the Executive has terminated the Executive’s employment for Good
Reason), for the period equal to the greater of one year or the sum of four weeks for each
full year of continuous service the Executive has with the Company and its subsidiaries at
the time of termination of employment, beginning immediately following termination of
employment (the “Severance Period”), payable in accordance with the established payroll
practices of the Company (but no less frequently than monthly), beginning on the first
payroll date following 30 days after termination of employment, with the Executive to
receive at that time a lump sum payment with respect to any installments the Executive was
entitled to receive during the first 30 days following termination of employment, and the
remaining payments made as if they had commenced immediately following termination of
employment;

          (ii) payment of an amount equal to the Executive’s actual earned full-year bonus for
the year in which the termination of Executive’s employment occurs, prorated based on the
number of days the Executive was employed for the year, payable at the time the Executive’s
annual bonus for the year otherwise would be paid had the Executive continued employment;

          (iii) continuation after the date of termination of employment of any health care
(medical, dental and vision) plan coverage, other than that under a flexible spending
account, provided to the Executive and the Executive’s spouse and dependents at the date of
termination for the Severance Period, on a monthly or more frequent basis, on the same basis
and at the same cost to the Executive as available to similarly-situated active employees
during such Severance Period, provided that such continued participation is possible under
the general terms and provisions of such plans and programs and provided that such continued
coverage by the Company shall terminate in the event Executive becomes eligible for any such
coverage under another employer’s plans. If the Company reasonably determines that
maintaining such coverage for the Executive or the Executive’s spouse or dependents is not
feasible under the terms and provisions of such plans and programs (or where such
continuation would adversely affect the tax status of the plan pursuant to which the
coverage is provided), the Company shall pay the Executive cash equal to the estimated cost
of the expected Company contribution therefor for such same period of time, with such
payments to be made in accordance with the established payroll practices of the Company (not
less frequently than monthly) for the period during which such cash payments are to be
provided;

          (iv) payment of any Accrued Obligations. For purposes of this Agreement, “Accrued
Obligations” shall mean the sum of (A) the Executive’s annual base salary through
Executive’s termination of employment which remains unpaid, (B) the amount, if any, of any
incentive or bonus compensation earned for any completed fiscal year of the Company which
has not yet been paid, (C) any reimbursements for expenses incurred

6

 

but not yet paid, and (D) any benefits or other amounts, including both cash and stock
components, which pursuant to the terms of any plans, policies or programs have been earned
or become payable, but which have not yet been paid to the Executive, including payment for
any unused paid time-off (but not including amounts that previously had been deferred at the
Executive’s request, which amounts will be paid in accordance with the Executive’s existing
directions). The Accrued Obligations will be paid to the Executive in a lump sum as soon as
administratively feasible after the Executive’s termination of employment, which for
purposes of any incentive or bonus compensation described in (B) above shall mean at the
same time such annual bonus would otherwise have been paid;

          (v) vesting in full of the Executive’s outstanding unvested options, restricted stock
and other equity-based awards that would have vested based solely on the continued
employment of the Executive. Additionally, all of Executive’s outstanding stock options
shall remain outstanding until the earlier of (i) one year after the date of termination of
the Executive’s employment or (ii) the original expiration date of the options (disregarding
any earlier expiration date provided for in any other agreement, including without
limitation any related grant agreement, based solely on the termination of the Executive’s
employment); and

          (vi) payment of one year of outplacement services from Executrack or an outplacement
service provider of the Executive’s choice, limited to $20,000 in total. This outplacement
services benefit will be forfeited if the Executive does not begin using such services
within 60 days after the termination of the Executive’s employment.

          (b) Without Cause; Good Reason; Non-Renewal (Change in Control). If, during the Term,
the Company terminates the Executive’s employment without Cause in accordance with Section 7(d)
hereof, the Executive terminates the Executive’s employment for Good Reason in accordance with
Section 7(c) hereof, or the Executive terminates the Executive’s employment upon the Company’s
failure to renew the Agreement in accordance with Section 7(e) hereof, within two years after a
Change in Control, subject to Section 20 below, the Executive shall be entitled to receive:

          (i) payment of the Executive’s annual base salary in effect immediately preceding the
date of the Executive’s termination of employment (or, if greater, the Executive’s annual
base salary in effect immediately preceding any action by the Company described in Section
7(c)(iii) above for which the Executive has terminated the Executive’s employment for Good
Reason), for the period equal to the greater of 18 months or the sum of four weeks for each
full year of continuous service the Executive has with the Company and its subsidiaries at
the time of termination of employment, beginning immediately following termination of
employment (the “Change in Control Severance Period”), payable in accordance with the
established payable practices of the Company (but no less frequently than monthly),
beginning on the first payroll date following 30 days after termination of employment, with
the Executive to receive at that time a lump sum payment with respect to any installments
the Executive was entitled to receive during the first 30 days following termination of
employment;

          (ii) payment of an amount equal to the Executive’s actual earned full-year bonus for
the year in which the termination of Executive’s employment occurs, prorated

7

 

based on the number of days the Executive was employed for the year, payable at the
time the Executive’s annual bonus for the year otherwise would be paid had the Executive
continued employment;

          (iii) continuation after the date of termination of employment of any health care
(medical, dental and vision) plan coverage, other than that under a flexible spending
account, provided to the Executive and the Executive’s spouse and dependents at the date of
termination for the Change in Control Severance Period, on a monthly or more frequent basis,
on the same basis and at the same cost to the Executive as available to similarly-situated
active employees during such Change in Control Severance Period, provided that such
continued participation is possible under the general terms and provisions of such plans and
programs and provided that such continued contribution by the Company shall terminate in the
event Executive becomes eligible for any such coverage under another employer’s plans. If
the Company reasonably determines that maintaining such coverage for the Executive or the
Executive’s spouse or dependents is not feasible under the terms and provisions of such
plans and programs (or where such continuation would adversely affect the tax status of the
plan pursuant to which the coverage is provided), the Company shall pay the Executive cash
equal to the estimated cost of the expected Company contribution therefor for such same
period of time, with such payments to be made in accordance with the established payroll
practices of the Company (not less frequently than monthly) for the period during which such
cash payments are to be provided;

          (iv) payment of any Accrued Obligations in a lump sum as soon as administratively
feasible after the Executive’s termination of employment, which for purposes of any
incentive or bonus compensation described in Section 8(a)(iv)(B) above shall mean at the
same time such annual bonus would otherwise have been paid;

          (v) vesting in full of the Executive’s outstanding unvested options, restricted stock
and other equity-based awards that would have vested based solely on the continued
employment of the Executive. Additionally, all of the Executive’s outstanding stock options
shall remain outstanding until the earlier of (i) one year after the date of termination of
the Executive’s employment or (ii) the original expiration date of the options (disregarding
any earlier expiration date provided for in any other agreement, including without
limitation any related grant agreement, based solely on the termination of the Executive’s
employment); and

          (vi) payment of one year of outplacement services from Executrack or an outplacement
service provider of the Executive’s choice, limited to $20,000 in total. This outplacement
services benefit will be forfeited if the Executive does not begin using such services
within 60 days after the termination of the Executive’s employment.

          (c) Death or Incapacity. If the Executive’s employment is terminated by reason of
death or Incapacity in accordance with Section 7(a) hereof, the Executive shall be entitled to
receive:

          (i) payment of an amount equal to the actual full-year bonus earned for the year that
includes Executive’s death or Incapacity, prorated based on the number of days

8

 

the Executive is employed for the year, payable at the same time such annual bonus
would otherwise have been paid had the Executive continued employment; and

          (ii) payment of any Accrued Obligations in a lump sum as soon as administratively
feasible after the Executive’s termination of employment, which for purposes of any
incentive or bonus compensation described in Section 8(a)(iv)(B) above shall mean at the
same time such annual bonus would otherwise have been paid.

          (d) Cause; Other Than for Good Reason. If the Company terminates the Executive’s
employment for Cause in accordance with Section 7(b) hereof, or the Executive terminates the
Executive’s employment other than for Good Reason in accordance with Section 7(d) hereof, this
Agreement shall terminate without any further obligation to the Executive other than to pay the
Accrued Obligations (except that any incentive or bonus compensation earned for any completed
fiscal year of the Company which has not yet been paid shall not be paid if the Company terminates
the Executive’s employment for Cause in accordance with Section 7(b) hereof) as soon as
administratively feasible after the Executive’s termination of employment.

          (e) Release and Waiver. Notwithstanding any other provision of this Agreement, the
Executive’s right to receive any payments or benefits under Sections 8(a)(i), (ii), (iii), (v) and
(vi) and 8(b)(i), (ii), (iii), (v) and (vi) of this Agreement upon the termination of the
Executive’s employment by the Company without Cause, by the Executive for Good Reason, or by the
Executive upon the Company’s failure to renew the Agreement is contingent upon and subject to the
Executive signing and delivering to the Company a separation agreement and complete general release
of all claims in a form acceptable to Company, and allowing the applicable revocation period
required by law to expire without revoking or causing revocation of same, within 30 days following
the date of termination of Executive’s employment.

          (f) Change in Control. For purposes of this Agreement, Change of Control means the
occurrence of any of the following events:

          (i) The accumulation in any number of related or unrelated transactions by any person
of beneficial ownership (as such term is used in Rule 13d-3, promulgated under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of 50 percent or more of
the combined total voting power of the Company’s voting stock; provided that for purposes of
this subsection (a), a Change in Control will not be deemed to have incurred if the
accumulation of 50 percent or more of the voting power of the Company’s voting stock results
from any acquisition of voting stock (i) by the Company, (ii) by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any of the Company’s
subsidiaries, or (iii) by any person pursuant to a merger, consolidation, reorganization or
other transaction (a “Business Combination”) that would not cause a Change in Control under
subsection (ii) below; or

          (ii) A consummation of a Business Combination, unless, immediately following that
Business Combination, substantially all the persons who were the beneficial owners of the
voting stock of the Company immediately prior to that Business Combination beneficially own,
directly or indirectly, at least 50 percent of the combined voting power of the voting stock
of the entity resulting from that Business Combination (including, without limitation, an
entity that as a result of that transaction owns the Company, or all or

9

 

substantially all of the Company assets, either directly or through one or more
subsidiaries) in substantially the same proportions relative to each other as the ownership,
immediately prior to that Business Combination, of the voting stock of the Company;

          (iii) A sale or other disposition of all or substantially all of the assets of the
Company except pursuant to a Business Combination that would not cause a Change in Control
under subsection (ii) above;

          (iv) At any time less than a majority of the members of the Board of Directors of the
Company or any entity resulting from any Business Combination are Incumbent Board Members.

          (v) Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company, except pursuant to a Business Combination that would not cause a
Change in Control under subsection (ii) above; or

          (vi) Any other transaction or event that the Board of Directors of the Company
identifies as a Change in Control for purposes of this Agreement.

          (vii) For purposes of this Agreement, an “Incumbent Board Member” shall mean any
individual who either is (a) a member of the Company Board of Directors as of the Effective
Date or (b) a member who becomes a member of the Company’s Board of Directors subsequent to
the Effective Date of this Agreement, whose election or nomination by the Company’s
shareholders, was approved by a vote of at least a majority of the then Incumbent Board
Members (either by specific vote or by approval of a proxy statement of the Company in which
that person is named as a nominee for director, without objection to that nomination), but
excluding, for that purpose, any individual whose initial assumption of office occurs as a
result of an actual or threatened election contest (within the meaning of Rule 14A-11 of the
Exchange Act) with respect to the election or removal of directors or other actual
threatened solicitation or proxies or consents by or on behalf of the person other than a
board of directors. For purposes of this Agreement, a person means any individual,
corporation, partnership, limited liability company, joint venture, incorporated or
unincorporated association, joint-stock company, trusts, unincorporated organization or any
other entity of any kind.

     9. Business Protection Agreements.

          (a) Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

          (i) “Business of the Company” means services to (A) identify clients’ erroneous or
improper payments, (B) assist clients in the recovery of monies owed to them as a result of
overpayments and overlooked discounts, rebates, allowances and credits, and (C) assist
clients in the improvement and execution of their procurement and payment processes.

          (ii) “Confidential Information” means any information about the Company or the
Company’s subsidiaries and their employees, customers and/or suppliers which is not
generally known outside of the Company or the Company’s subsidiaries, which

10

 

Executive learns of in connection with Executive’s employment with the Company, and
which would be useful to competitors or the disclosure of which would be damaging to the
Company or the Company’s subsidiaries. Confidential Information includes, but is not
limited to: (A) business and employment policies, marketing methods and the targets of those
methods, finances, business plans, promotional materials and price lists; (B) the terms upon
which the Company or the Company’s subsidiaries obtains products from their suppliers and
sells services and products to customers; (C) the nature, origin, composition and
development of the Company or the Company’s subsidiaries’ services and products; and (D) the
manner in which the Company or the Company’s subsidiaries provide products and services to
their customers.

          (iii) “Material Contact” means contact in person, by telephone, or by paper or
electronic correspondence in furtherance of the Business of the Company.

          (iv) “Restricted Territory” means, and is limited to, the geographic area included in
the Atlanta — Sandy Springs — Marietta, GA metropolitan statistical area. Executive
acknowledges and agrees that this is a portion of the area in which the Company and its
subsidiaries does business at the time of the execution of this Agreement, and in which the
Executive will have responsibility, at a minimum, on behalf of the Company and the Company’s
subsidiaries. Executive acknowledges and agrees that if the geographic area in which
Executive has responsibility should change while employed under this Agreement, Executive
will execute an amendment to the definition of “Restricted Territory” to reflect such
change. This duty shall be part of the consideration provided by Executive for Executive’s
employment hereunder.

          (v) “Trade Secrets” means the trade secrets of the Company or the Company’s
subsidiaries as defined under applicable law.

          (b) Confidentiality. Executive agrees that the Executive will not (other than in the
performance of Executive’s duties hereunder), directly or indirectly, use, copy, disclose or
otherwise distribute to any other person or entity: (a) any Confidential Information during the
period of time the Executive is employed by the Company and for a period of five years thereafter;
or (b) any Trade Secret at any time such information constitutes a trade secret under applicable
law. Upon the termination of Executive’s employment with the Company (or upon the earlier request
of the Company), Executive shall promptly return to the Company all documents and items in the
Executive’s possession or under the Executive’s control which contain any Confidential Information
or Trade Secrets.

          (c) Non-Competition. Executive agrees that during the Executive’s employment with the
Company and for a period of two years thereafter, Executive will not, either for himself or on
behalf of any other person or entity, compete with the Business of the Company within the
Restricted Territory by performing activities which are the same as or similar to those performed
by Executive for the Company or the Company’s subsidiaries.

          (d) Non-Solicitation of Customers. Executive agrees that during Executive’s
employment with the Company and for a period of two years thereafter, Executive shall not, directly
or indirectly, solicit any actual or prospective customers of the Company or the Company’s

11

 

subsidiaries with whom Executive had Material Contact, for the purpose of selling any products
or services which compete with the Business of the Company

          (e) Non-Recruitment of Employees or Contractors. Executive agrees that during the
Executive’s employment with the Company and for a period of two years thereafter, Executive will
not, directly or indirectly, solicit or attempt to solicit any employee or contractor of the
Company or the Company’s subsidiaries with whom Executive had Material Contact, to terminate or
lessen such employment or contract.

          (f) Obligations of the Company. The Company agrees to provide Executive with
Confidential Information in order to enable Executive to perform Executive’s duties hereunder. The
covenants of Executive contained in the covenants of Confidentiality, Non-Competition,
Non-Solicitation of Customers and Non-Recruitment of Employees or Contractors set forth in
Subsections 9(b) — 9(e) above (“Protective Covenants”) are made by Executive in consideration for
the Company’s agreement to provide Confidential Information to Executive, and intended to protect
Company’s Confidential Information and the investments the Company makes in training Executive and
developing customer goodwill.

          (g) Acknowledgments. Executive hereby acknowledges and agrees that the covenants
contained in (b) through (e) of this Section 9 and Section 10 hereof are reasonable as to time,
scope and territory given the Company and the Company’s subsidiaries’ need to protect their
business, customer relationships, personnel, Trade Secrets and Confidential Information. Executive
acknowledges and represents that Executive has substantial experience and knowledge such that
Executive can readily obtain subsequent employment which does not violate this Agreement.

          (h) Specific Performance. Executive acknowledges and agrees that any breach of any of
the Protective Covenants or the provisions of Section 10 by him will cause irreparable damage to
the Company or the Company’s subsidiaries, the exact amount of which will be difficult to
determine, and that the remedies at law for any such breach will be inadequate. Accordingly,
Executive agrees that, in addition to any other remedy that may be available at law, in equity, or
hereunder, the Company shall be entitled to specific performance and injunctive relief, without
posting bond or other security, to enforce or prevent any violation of any of the Protective
Covenants by him.

     10. Ownership of Work Product.

          (a) Assignment of Inventions. Executive will make full written disclosure to the
Company, and hold in trust for the sole right and benefit of the Company, and hereby assigns to the
Company, or its designees, all of the Executive’s right, title, and interest in and to any and all
inventions, original works of authorship, developments, concepts, improvements or trade secrets,
whether or not patentable or registrable under copyright or similar laws, which the Executive may
solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice, during the period of time the Executive is engaged as an employee of the
Company (collectively referred to as “Inventions”) and which (i) are developed using the equipment,
supplies, facilities or Confidential Information or Trade Secrets of the Company or the Company’s
subsidiaries, (ii) result from or are suggested by work performed by Executive for the Company or
the Company’s subsidiaries, or (iii) relate at the time of conception or reduction to practice to
the business as conducted by the Company or the Company’s subsidiaries, or to the

12

 

actual or demonstrably anticipated research or development of the Company or the Company’s
subsidiaries, will be the sole and exclusive property of the Company or the Company’s subsidiaries,
and Executive will and hereby does assign all of the Executive’s right, title and interest in such
Inventions to the Company and the Company’s subsidiaries. Executive further acknowledge that all
original works of authorship which are made by him (solely or jointly with others) within the scope
of and during the period of the Executive’s employment arrangement with the Company and which are
protectible by copyright are “works made for hire,” as that term is defined in the United States
Copyright Act.

          (b) Patent and Copyright Registrations. Executive agrees to assist the Company and
the Company’s subsidiaries, or their designees, at the Company or the Company’s subsidiaries’
expense, in every proper way to secure the Company’s or the Company’s subsidiaries’ rights in the
Inventions and any copyrights, patents, mask work rights or other intellectual property rights
relating thereto in any and all countries, including the disclosure to the Company and the
Company’s subsidiaries of all pertinent information and data with respect thereto, the execution of
all applications, specifications, oaths, assignments and all other instruments which the Company or
the Company’s subsidiaries shall deem necessary in order to apply for and obtain such rights and in
order to assign and convey to the Company and its subsidiaries, and their successors, assigns, and
nominees the sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights relating thereto.
Executive further agree that the Executive’s obligation to execute or cause to be executed, when it
is in the Executive’s power to do so, any such instrument or papers shall continue after the
termination of this Agreement.

          (c) Inventions Retained and Licensed. There are no inventions, original works of
authorship, developments, improvements, and trade secrets which were made by Executive prior to the
Executive’s employment with the Company (collectively referred to as “Prior Inventions”), which
belong to Executive, which relate to the Company’s or the Company’s subsidiaries’ proposed
business, products or research and development, and which are not assigned to the Company or the
Company’s subsidiaries hereunder.

          (d) Return of Company Property and Information. The Executive agrees not to remove
any property of the Company or the Company’s subsidiaries or information from the premises of the
Company or the Company’s subsidiaries, except when authorized by the Company or the Company’s
subsidiaries. Executive agrees to return all such property and information within seven days
following the cessation of Executive’s employment for any reason. Such property includes, but is
not limited to, the original and any copy (regardless of the manner in which it is recorded) of all
information provided by the Company or the Company’s subsidiaries to the Executive or which the
Executive has developed or collected in the scope of the Executive’s employment, as well as all
issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers,
cell phones, materials, documents, plans, records, notebooks, drawings, or papers. Upon request by
the Company, the Executive shall certify in writing that all copies of information subject to this
Agreement located on the Executive’s computers or other electronic storage devices have been
permanently deleted. Provided, however, the Executive may retain copies of documents relating to
any employee benefit plans applicable to the Executive and income records to the extent necessary
for the Executive to prepare the Executive’s individual tax returns.

13

 

     11. Mitigation. The Executive shall not be required to mitigate the amount of any
payment the Company becomes obligated to make to the Executive in connection with this Agreement,
by seeking other employment or otherwise. Except as specifically provided above with respect to
the health care continuation benefit, the amount of any payment provided for in Section 8 shall not
be reduced, offset or subject to recovery by the Company by reason of any compensation earned by
the Executive as the result of employment by another employer after the Date of Termination, or
otherwise.

     12. Withholding of Taxes. The Company shall withhold from any amounts or benefits
payable under this Agreement all federal, state, city or other taxes that the Company is required
to withhold under any applicable law, regulation or ruling.

     13. Modification and Severability. The terms of this Agreement shall be presumed to be
enforceable, and any reading causing unenforceability shall yield to a construction permitting
enforcement. If any single covenant or provision in this Agreement shall be found unenforceable, it
shall be severed and the remaining covenants and provisions enforced in accordance with the tenor
of the Agreement. In the event a court should determine not to enforce a covenant as written due
to overbreadth, the parties specifically agree that said covenant shall be enforced to the maximum
extent reasonable, whether said revisions be in time, territory, scope of prohibited activities, or
other respects.

     14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Georgia.

     15. Remedies and Forum. The parties agree that they will not file any action arising
out of this Agreement other than in the United States District Court for the Northern District of
Georgia or the State or Superior Courts of Cobb County, Georgia. Notwithstanding the pendency of
any proceeding, either party shall be entitled to injunctive relief in a state or federal court
located in Cobb County, Georgia upon a showing of irreparable injury. The parties consent to
personal jurisdiction and venue solely within these forums and solely in Cobb County, Georgia and
waive all otherwise possible objections thereto. The prevailing party shall be entitled to recover
its costs and attorney’s fees from the non-prevailing party(ies) in any such proceeding no later
than 90 days following the settlement or final resolution of any such proceeding. The existence of
any claim or cause of action by the Executive against the Company or the Company’s subsidiaries,
including any dispute relating to the termination of this Agreement, shall not constitute a defense
to enforcement of said covenants by injunction.

     16. Notices. All written notices required by this Agreement shall be deemed given
when delivered personally or sent by registered or certified mail, return receipt requested, or by
a nationally-recognized overnight delivery service to the parties at their addresses set forth on
the signature page of this Agreement. Each party may, from time to time, designate a different
address to which notices should be sent.

     17. Amendment. This Agreement may not be varied, altered, modified or in any way
amended except by an instrument in writing executed by the parties hereto or their legal
representatives.

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     18. Binding Effect. This Agreement shall be binding upon the Executive and on the
Company, and their successors and assigns effective on the Effective Date. Executive consents to
any assignment of this Agreement by the Company, so long as the Company will require any successor
to all or substantially all of the business and/or assets of the Company to assume expressly and
agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. If the Executive dies before
receiving all payments due under this Agreement, unless expressly otherwise provided hereunder or
in a separate plan, program, arrangement or agreement, any remaining payments due after the
Executive’s death shall be made to the Executive’s beneficiary designated in writing (provided such
writing is executed and dated by the Executive and delivered to the Company in a form acceptable to
the Company prior to the Executive’s death) and surviving the Executive or, if none, to the
Executive’s estate.

     19. No Construction Against Any Party. This Agreement is the product of informed
negotiations between the Executive and the Company. If any part of this Agreement is deemed to be
unclear or ambiguous, it shall be construed as if it were drafted jointly by all parties. The
Executive and the Company agree that none of the parties were in a superior bargaining position
regarding the substantive terms of this Agreement.

     20. Deferred Compensation Omnibus Provision. Notwithstanding any other provision of
this Agreement, it is intended that any payment or benefit which is provided pursuant to or in
connection with this Agreement which is considered to be deferred compensation subject to Section
409A of the Code shall be provided and paid in a manner, and at such time, including without
limitation payment and provision of benefits only in connection with the occurrence of a
permissible payment event contained in Section 409A (e.g. separation from service from the Company
and its affiliates as defined for purposes of Section 409A of the Code), and in such form, as
complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax
consequences provided therein for non-compliance. Notwithstanding any other provision of this
Agreement, the Company’s Compensation Committee or Board of Directors is authorized to amend this
Agreement, to amend or void any election made by the Executive under this Agreement and/or to delay
the payment of any monies and/or provision of any benefits in such manner as may be determined by
it to be necessary or appropriate to comply, or to evidence or further evidence required
compliance, with Section 409A of the Code (including any transition or grandfather rules
thereunder). For purposes of this Agreement, all rights to payments and benefits hereunder shall
be treated as rights to receive a series of separate payments and benefits to the fullest extent
allowed by Section 409A of the Code. If the Executive is a key employee (as defined in Section
416(i) of the Code without regard to paragraph (5) thereof) and any of the Company’s stock is
publicly traded on an established securities market or otherwise, then payment of any amount or
provision of any benefit under this Agreement which is considered deferred compensation subject to
Section 409A of the Code shall be deferred for six (6) months after termination of Executive’s
employment or, if earlier, Executive’s death, as required by Section 409A(a)(2)(B)(i) of the Code
(the “409A Deferral Period”). In the event such payments are otherwise due to be made in
installments or periodically during the 409A Deferral Period, the payments which would otherwise
have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as
the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise
scheduled. In the event benefits are required to be deferred, any such benefit may be provided
during the 409A Deferral Period at the Executive’s expense, with the Executive having a right to
reimbursement from the Company once the 409A Deferral Period ends, and the balance of the benefits
shall be provided as otherwise

15

 

scheduled. For purposes of this Agreement, termination of employment shall mean a “separation
from service” within the meaning of Section 409A of the Code where it is reasonably anticipated
that no further services would be performed after such date or that the level of bona fide services
Executive would perform after that date (whether as an employee or independent contractor) would
permanently decrease to no more than 20 percent of the average level of bona fide services
performed over the immediately preceding 36-month period (or, if lesser, Executive’s period of
service).

     21. Mandatory Reduction of Payments in Certain Events. Anything in this Agreement to
the contrary notwithstanding, in the event it shall be determined that any payment or distribution
by the Company to or for the benefit of Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be subject
to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code, then, prior to the making
of any Payment to Executive, a calculation shall be made comparing (i) the net benefit to Executive
of the Payment after payment of the Excise Tax to (ii) the net benefit to Executive if the Payment
had been limited to the extent necessary to avoid being subject to the Excise Tax. If the amount
calculated under (i) above is less than the amount calculated under (ii) above, then the Payment
shall be limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced
Amount”). In that event, cash payments shall be modified or reduced first and then any other
benefits. The determination of whether an Excise Tax would be imposed, the amount of such Excise
Tax, and the calculation of the amounts referred to in clauses (i) and (ii) of the foregoing
sentence shall be made by an independent accounting firm selected by Company and reasonably
acceptable to the Executive, at the Company’s expense (the “Accounting Firm”), and the Accounting
Firm shall provide detailed supporting calculations. Any determination by the Accounting Firm
shall be binding upon the Company and Executive. As a result of the uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Payments which Executive was entitled to, but did not receive
pursuant to this Section 21, could have been made without the imposition of the Excise Tax
(“Underpayment”). In such event, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive.

     22. Entire Agreement. Except as provided in the next sentence, this Agreement
constitutes the entire agreement of the parties with respect to the matters addressed herein and it
supersedes all other prior agreements and understandings, both written and oral, express or
implied, with respect to the subject matter of this Agreement. It is further specifically agreed
and acknowledged that, except as provided herein, the Executive shall not be entitled to severance
payments or benefits under any severance or similar plan, program, arrangement or agreement of or
with the Company for any termination of employment occurring while this Agreement is in effect.

[Signatures are on the following page.]

16

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written herein.

	 	 	 	 	 
	 	PRG-SCHULTZ INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Jennifer Moore
 	 
	 	Its: 	Senior VP, Human Resources 

	 
	 	 	600 Galleria Parkway

Suite 100

Atlanta, Georgia 30339

Attn: General Counsel 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Robert B. Lee
 	 
	 	Robert B. Lee 

	 
	 	1820 Vendue Ct.

Lawrenceville, GA 30044 	 
	 

17

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