Document:

SECURITY AGREEMENT

         This Security Agreement ("Security Agreement") is made this __th day of
May 2006,by and between Aspatuck Funding LLC, a New York limited liability
company ("Secured Party"), and DTLL, Inc., a Minnesota corporation ("DTLL" or
the" Debtor" or the "Borrower").

                                    Recitals:

        Pursuant to that certain 12% Senior Secured Convertible Promissory Note
dated May 1, 2006 (the "Note") of Debtor to Secured Party and Loan Agreement
entered into this date between the Secured Party and the Debtor, and to secure
the Obligations (as defined below), Debtor agrees to grant to Secured Party a
first security interest in the Collateral (as defined below) of Debtor.

        This Security Agreement provides the terms and conditions upon which the
Obligations are secured by a security interest to Secured Party in the
Collateral described herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties agree as follows

1.       DEFINITIONS.

              A. "Collateral": any and all property of the Borrower, of any kind
         or description, tangible or intangible, wherever now or hereafter
         located or whether now existing or hereafter arising or acquired,
         including, but not limited to, the following property, along with the
         products and proceeds therefrom,

                           (i) all Accounts and all Goods whose sale, lease or
                           other disposition by Borrower has given rise to
                           Accounts and have been returned to or repossessed or
                           stopped in transit by the Borrower;

                            (ii) all chattel paper, instruments, documents and
                           general intangibles (including all patents, patent
                           applications, trademarks, trademark applications,
                           trade secrets, goodwill, copyrights, registrations,
                           licenses, franchises, customer lists, tax refund
                           claims, claims against carriers and shippers,
                           guarantee claims, contracts rights, security
                           interests, security deposits and any rights to
                           indemnification);

                           (iii) all Inventory;

                           (iv) all goods (other than Inventory), including
                           Equipment, vehicles and fixtures;

                           (v) all investment property;

                                      -1-
<PAGE>

                           (vi) all deposits and cash and any other property of
                           the Borrower now or hereafter in the possession,
                           custody or control of the Secured Party or any agent
                           or any parent, affiliate or subsidiary of the Secured
                           Party or any participant with the Secured Party in
                           the Loans for any purpose (whether for safekeeping,
                           deposit, collection, custody, pledge, transmission or
                           otherwise); and

                                    (vii) all letter of credit rights;

                           (viii) all additions and accessions to, substitutions
                           for, and replacements, products and proceeds of the
                           foregoing property, including proceeds of all
                           insurance policies insuring the foregoing property,
                           and all of the Borrower's books and records relating
                           to any of the foregoing and to Borrower's business.

             B. The "Obligations": the indefeasible payment in full when due,
         whether at stated maturity, by acceleration or otherwise, of all
         obligations of Debtor now or hereafter existing under the Note, whether
         for principal, interest, fees, expenses or otherwise, and all
         obligations of Debtor now or hereafter existing under this Agreement or
         any Related Agreement in each case, direct or indirect, absolute or
         contingent and whether or not evidenced by any note or written
         instrument
                           (i) all amounts owed under any modifications,
                           renewals or extensions of any of the foregoing
                           obligations; and

                           (ii) any of the foregoing that arises after the
                           filing of a petition by or against Debtor or DTLL
                           under the Bankruptcy Code, even if the obligations do
                           not accrue because of the automatic stay under
                           Bankruptcy Code ss. 362 or otherwise.

              C. Any term used in the Uniform Commercial Code ("UCC") and not
         defined in this Security Agreement has the meaning given to the term in
         the UCC.

                 D. "Related Agreement shall have the meaning in the Loan
Agreement

  2. GRANT OF SECURITY INTEREST.

                 A. GENERAL. As security for the payment or performance of the
Obligations, the Borrower does hereby pledge, assign, transfer and deliver to
the Secured Party, and grant the Secured Party a security interest in the
Collateral. The security interest is a first-in-priority security interest with
respect to all existing or future security interests.

                                      -2-
<PAGE>

           B. PERFECTION OF SECURITY authorizes Secured Party to file a
         financing statement (the "Financing Statement") describing the
         Collateral as further provided herein.

           C. Debtor shall have possession of the Collateral, except where
         expressly otherwise provided in this Security Agreement or where
         Secured Party chooses to perfect its security interest by possession in
         addition to the filing of a financing statement.

           D. Where the Collateral is in the possession of a third party, Debtor
         will join with Secured Party in notifying the third party of Secured
         Party's security interest and obtaining an acknowledgment from the
         third party that it is holding the Collateral for the benefit of
         Secured Party.

3. CERTAIN COVENANTS AND RIGHTS CONCERNING COLLATERAL. In addition to other
agreements herein:

          A. The parties to this Security Agreement may inspect any Collateral
         in the other party's possession at any time upon reasonable notice.

          B. Secured Party shall have the right at any time to enforce Debtor's
         rights against the account debtors and obligors.

          C. Limitations on Obligations Concerning Maintenance of Collateral.

                           (i) Debtor has the risk of loss of the Collateral.

                           (ii) Secured Party has no duty to collect any income
accruing on the Collateral.

            D. Secured Party does not authorize, and Debtor agrees not to:

                           (i) Make any sales of any of the Collateral, or

                           (ii) Grant any other security interest in any of the
                           Collateral other than the Permitted Liens and
                           security interests subordinate to Secured Party.

4. REPRESENTATIONS AND COVENANTS OF BORROWER. Debtor agrees, covenants, and
acknowledges that Lender is reasonably relying upon these agreements and
covenants as follows:

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          A The execution, delivery, and performance of this Agreement and
related Agreements and the execution and payment of the Note is within the power
of the Debtor and such acts have been duly authorized, are not in contravention
of law or the terms of the Debtor' articles of organization or operating
agreement or of any indenture, agreement, or undertaking to which any Debtor is
a Party or by which it is bound.

          B. It has rights in and the power to transfer the Collateral and the
title to the Collateral is free of all liens, adverse claims, security interests
and restrictions on transfer or pledge, except as created by this Security
Agreement

          5. GENERAL PROVISIONS

         A. DEBTORS REMAIN LIABLE Anything herein to the contrary
notwithstanding: (a) Debtor shall remain liable under the contracts and
agreements included in the Collateral to the extent set forth therein (only to
the extent such contracts and agreements are part of the Assumed Liabilities) to
perform all of its duties and obligations thereunder to the same extent as if
this Security Agreement had not been executed; (b) the exercise by Secured Party
of any of the rights hereunder shall not release Debtor from any of its duties
or obligations under such contracts and agreements included in the Collateral;
and (c) Secured Party shall have no obligation or liability under such contracts
and agreements included in the Collateral by reason of this Agreement, nor shall
Secured Party be obligated to perform any of the obligations or duties of Debtor
thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

          B. The Lender is hereby irrevocably appointed the true and lawful
attorney-in-fact of the Debtor in the Debtor's name and stead, to make all
necessary deeds, bills of sale and instruments of assignment and transfer of the
Collateral thus sold and for such other purposes as are necessary or desirable
to effectuate the provisions of this Agreement, and for that purpose it may
execute and deliver all necessary deeds, bills of sale and instruments of
assignment and transfer, and may substitute one or more persons or entities with
like power, the Debtor hereby ratifying and confirming all that its said
attorney, or such substitute or substitutes, shall lawfully do by virtue hereof;
but if so requested by the Lender or by any purchaser, the Debtor shall ratify
and confirm any such sale or transfer by executing and delivering to the Lender
or such purchaser all property, deeds, bills of sale, instruments of assignment
and transfer and releases as may be designated in any such request; All right,
title, interest, claim and demand whatsoever, either in law or in equity or
otherwise, of the Debtor of, in and to the Collateral so sold shall be divested
and such sale shall be a perpetual bar both at law and in equity against the
Debtor, its successors and assigns, and against any and all persons or entities
claiming or who may claim the Collateral sold or any part thereof, from, through
or under the Debtor or such entities, its successors or assigns. The receipt of
the Lender or of the officers thereof making such sale or such assignment shall
be a sufficient discharge to the purchaser or purchasers at such sale for his or
their purchase money, and such purchaser or purchasers, and his, its or their
assigns or personal representatives shall not, after paying such purchase money
and receiving such receipt of the Lender or of such officers thereof, be
obligated to see to the application of such purchase money or be in anywise
answerable for any loss, misapplication or non-application, thereof. The Debtor
shall remain liable for any deficiency resulting from a sale of the Collateral
and shall pay any such deficiency forthwith on demand.

                                      -4-
<PAGE>

         C. TAXES AND ASSESSMENTS.
Debtor will pay or cause to be paid promptly when due all taxes and assessments
on the Collateral. Debtor may, however, withhold payment of any tax assessment
or claim if a good faith dispute exists as to the obligation to pay so long as
funds sufficient to pay the taxes and assessments are set aside for such purpose
either in cash or by surety bond issued in favor of the appropriate taxing
authority.

         D. PROTECTION OF SECURITY.

If Debtor fails to perform the covenants and agreements contained or
incorporated in this Agreement, or if any action or proceeding is commenced
which affects the Collateral or title thereto or the interest of Lender therein
including but not limited to, eminent domain, insolvency, code enforcement, or
arrangements or proceedings involving a bankruptcy or decedent, then Lender may
make such appearance, disburse such sums, and take such action as Lender deems
necessary in its sole discretion, to protect Lender's interest, including, but
not limited to the following: (i) disbursement of attorneys' fees and (ii)
procurement of satisfactory insurance. Any amounts disbursed by Lender pursuant
to this Section with interest thereon, shall become additional indebtedness of
Debtor under the Notes, secured by this Agreement. Unless Debtor and Lender
agree to other term of payment, such amounts shall be immediately due and
payable and shall bear interest from the date of disbursement at the default
rate stated in the Notes unless collection of interest at such rate would be
contrary to applicable law. Nothing contained in this shall require Lender to
incur any expense or take any action.

         E. SECURITY INTEREST NOT RELEASED. From time to time, Lender may, at
Lender's option, without giving notice to or obtaining the consent of Debtor or
its successors or assigns or of any other lienholders, without liability on
Lender's part, and notwithstanding a breach by Debtor of any covenant or
agreement set forth in this Agreement, extend the time for payment of said
indebtedness or any part thereof, reduce the payments thereon, release anyone
liable on any of said indebtedness, accept a renewal Note or Notes therefore,
modify the terms and the time of payment of said indebtedness, release from the
security interest of this Agreement any part of the Col1ateral, take or release
other or additional security, and reconvey any part of the Collateral and take
any action under the Affiliated Parties Guaranty, or in the alternative forebear
from taking any action under the Affiliated Parties Guaranty Any actions taken
by Lender pursuant to the terms of this Section, shall not affect the obligation
of Debtor or any of their successors or assigns to pay the sums secured by this
Agreement and to observe the covenants of Debtor contained herein shall not
affect the guaranty of any person corporation, partnership, or other entity for
payment of the indebtedness secured hereby, and shall not affect the lien or
priority of security interest hereof on the Collateral.

                                      -5-
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         F. UNIFORM COMMERCIAL CODE SECURITY AGREEMENT.
This Agreement is intended to be a security agreement pursuant to the Uniform
Commercial Code for each of the items specified as Collateral and Debtor as
provided above. Debtor agrees to execute and allow Lender to file financing
statements, as well as extensions, renewals and amendments thereof, and
reproductions of this Agreement, and do whatever may be necessary under the
applicable Uniform Commercial Code in the state where the Collateral is located
to perfect and continue Lender's interest in the Collateral. The Parties agree
that such financing statements will be filed in the name of the Lender. Debtor
shall pay all costs of filing such financing statements and any extensions,
renewals, amendments, and releases thereto; and shall pay all reasonable costs
and expenses of any record searches for financing statements requested by
Lender. Except as provided herein, without the prior written consent of Lender,
Debtor shall not create or allow to be created pursuant to the Uniform
Commercial Code, any other statute, a security interest in the Collateral senior
in priority to that of Lender including replacements and additions thereto. Upon
the occurrence of an event of default, Lender shall have the remedies of a
secured party under the Uniform Commercial Code and, at Lender's option, may
also invoke any other remedy provided for in this Agreement. In exercising any
of said remedies, Lender may proceed against any part of the Collateral
separately or together and in any order whatsoever without in any way affecting
the availability of Lender's remedies under the Uniform Commercial Code, or of
Lender's other remedies provided in this Agreement

         G. Upon default, Lender shall be entitled, in its own name or in the
name of the Debtor, or otherwise, but at the expense and cost of the Debtor, to
collect, demand, receive, sue for and/or compromise any and all of the
Collateral including, without limitation, any and all Accounts Receivable due or
to become due from present or future subscribers or customers of any service
provided by the Debtor and to give good and sufficient releases therefore, to
endorse any checks, drafts or other orders for the payment of monies payable in
payment thereof and, in its discretion, to file any claims or take any action or
proceeding, either in its own name or in the name of the Debtor, or otherwise,
which the Lender may deem necessary or advisable. It is expressly understood and
agreed, however, that the Lender shall not be required or obligated in any
manner to make any inquiries as to the nature or sufficiency of any payment
received by any of them or to present or file any claims or take any other
action to collect or enforce a payment of any amounts which may have been
assigned to any bank or to which any bank may be entitled hereunder at any time
or times. Lender may sell all or any part of the Collateral, as reasonably
necessary to satisfy the obligations of Debtor hereunder to Lender, either by
public auction, private sale, or any other reasonable method of disposition.
Nothing in this Section shall be construed to limit any of Lender's rights in
connection with any of the Collateral as provided herein.

  6. EVENTS OF DEFAULT. The occurrence of any of the following shall, at the
  option of Secured Party, be an "Event of Default":

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<PAGE>

                  Debtor's failure to comply with any of the provisions of, or
                  the incorrectness of any representation or warranty contained
                  in, this Security Agreement , the Note, the Loan Agreement or
                  in any of the other agreements forming a part of the
                  Obligations;

                  Transfer or disposition of the Collateral, except as expressly
                  permitted by this Security Agreement;

                  Attachment, execution or levy on the Collateral to collect a
                  judgment; or

                  Secured Party shall receive at any time following the Closing
                  evidence that the Secured Party's security interest is not
                  prior to all other security interests in the Collateral other
                  than the Permitted Liens.

7.      DEFAULT COSTS. Should an Event of Default occur, Debtor will pay to
        Secured Party all costs reasonably incurred by the Secured Party for the
        purpose of enforcing its rights hereunder, including:

                  INFORMATION TO BE ADDED?
    8.    ADDITIONAL FORECLOSURE PROCEDURES. The following shall apply to
          foreclosure proceedings in addition to those provided above.

  No delay or omission by Secured Party to exercise any right or remedy accruing
  upon any Event of Default shall: (a) impair any right or remedy, (b) waive any
  default or operate as an acquiescence to the Event of Default or (c) affect
  any subsequent default of the same or of a different nature.

A.            Secured Party shall give Debtor such notice of any public or
              private sale as may be required by the UCC.

B.            Secured Party has no obligation to clean up or otherwise prepare
              the Collateral for sale.

C.            Secured Party has no obligation to attempt to satisfy the
              Obligations by collecting them from any other person liable for
              them and Secured Party may release, modify, or waive any
              collateral provided by any other person to secure any of the
              Obligations, all without affecting Secured Party's rights against
              Debtor. Debtor waives any right it may have to require Secured
              Party to pursue any third person for any of the Obligations.

D.            Secured Party may comply with any applicable state or federal law
              requirements in connection with the disposition of the Collateral
              and compliance will not be considered adversely to affect the
              commercial reasonableness of any sale of the Collateral.

E.            Secured Party will sell the Collateral without giving any
              warranties as to the Collateral. Secured Party may specifically
              disclaim any warranties of title or the like. This procedure will
              not be considered adversely to affect the commercial
              reasonableness of any sale of the Collateral.

                                      -7-
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F.            If Secured Party sells any of the Collateral upon credit, Debtor
              will be credited only with payments actually made by the
              purchaser, received by Secured Party and applied to the
              indebtedness of the purchaser. In the event the purchaser fails to
              pay for the Collateral, Secured Party may resell the Collateral
              and Debtor shall be credited with the proceeds of the sale.

G.            In the event Secured Party purchases any of the Collateral being
              sold, Secured Party may pay for the Collateral by crediting some
              or all of the Obligations of the Debtor.

H.            Secured Party has no obligation to marshal any assets in favor of
              Debtor, or against or in payment of: Any of the Obligations; or
              Any other obligation owed to Secured Party by Debtor.

    9. MISCELLANEOUS. JEN NOTE CONTINUATION OF LETTERING SHOULD BE NEW A FOR
THIS NUMBERED PARA

A.            This Security Agreement shall bind and shall inure to the benefit
              of the heirs, legatees, executors, administrators, successor and
              assigns of Secured Party and shall bind all persons who become
              bound as a debtor to this Security Agreement.

B.            Secured Party does not consent to any assignment by Debtor except
              as expressly provided in this Security Agreement.

C.            Secured Party may assign its rights and interests under this
              Security Agreement. If an assignment is made, Debtor shall render
              performance under this Security Agreement to the assignee. Debtor
              waives and will not assert against any assignee any claims,
              defenses or set-offs which Debtor could assert against Secured
              Party except defenses which cannot be waived.

D.            Should any provision of this Security Agreement be found to be
              void, invalid or unenforceable by a court or panel of arbitrators
              of competent jurisdiction, that finding shall only affect the
              provisions found to be void, invalid or unenforceable and shall
              not affect the remaining provisions of this Security Agreement.

E.            Any notices required by this Security Agreement shall be deemed to
              be delivered when a record has been (a) deposited in any United
              States postal box if postage is prepaid, and the notice is
              properly addressed to the intended recipient, (b) received by
              telecopy, (c) received through the Internet, and (d) when
              personally delivered.

F.            This Security Agreement is being executed and delivered and is
              intended to be performed in the State of Illinois and shall be
              construed and enforced in accordance with the laws of the State of
              Illinois, except to the extent that the UCC provides for the
              application of the law of another state.

                                      -8-
<PAGE>

G.       Integrations and Modifications.

                  (i)This Security Agreement is the entire agreement of Debtor
                  and Secured Party concerning its subject matter

                  (ii)Any modification to this Security Agreement must be made
                  in writing and signed by the party adversely affected.

H.       Any party to this Security Agreement may waive enforcement of any
         provision to the extent the provision is for its benefit.

I.       Debtor agrees to execute any further documents, and to take any further
         actions, reasonably requested by Secured Party to evidence or perfect
         the security interest granted herein, to maintain the first priority of
         the security interests, subject to the Permitted Liens, or to
         effectuate the rights granted to Secured Party herein. Without limiting
         the generality of the foregoing, Debtor will execute and file such
         financing or continuation statements, or amendments thereto, and such
         other instruments or notices, as may be necessary or desirable, or as
         Secured Party may reasonably request, in order to perfect and preserve
         the security interests granted or purported to be granted hereby.

Where there is a conflict between two provisions herein the interpretation most
favorable to Secured Party shall apply.

The Caption names are a guide and are not conclusive as to the contents

                          [Signature on following page]

                                      -9-
<PAGE>

The parties have signed this Security Agreement as of the day and year first
above written.

                                   Aspatuck Funding LLC,

                                   By:
                                       -----------------------------------------

                                   Its:
                                        ----------------------------------------

                                   DTLL INC.

                                   By:
                                       -----------------------------------------

                                   Its:
                                        ----------------------------------------

                                      -10-EX-10.1

 

    Exhibit 10.1

 

    STOCK
    PURCHASE AGREEMENT

 

    This STOCK PURCHASE AGREEMENT
    (“Agreement”) is made and entered into this
    8th day
    of September, 2006 by and among (i) Rand Medical Billing,
    Inc. a California corporation (“Rand”),
    (ii) Marvin I. Retsky, M.D.
    (“Retsky”), the sole stockholder of Rand and
    (iii) Orion HealthCorp Inc., a Delaware corporation
    (“Purchaser”), (Purchaser, Retsky and Rand are
    each a “Party” and are collectively the
    “Parties”).

 

    RECITALS:

 

    WHEREAS, Retsky owns one hundred percent of the issued and
    outstanding shares of capital stock of Rand; and

 

    WHEREAS, Retsky desires to sell to Purchaser, and Purchaser
    desires to purchase from Retsky, the Shares (as defined below)
    owned by Retsky, all in accordance with the terms and conditions
    set forth herein.

 

    NOW, THEREFORE, in consideration of the foregoing and the
    respective representations, warranties, covenants, and
    agreements, and subject to the terms and conditions, set forth
    herein, the parties agree as follows:

 

    ARTICLE I

    

 

    PURCHASE OF
    SHARES
    

 

		
	
    1.1  
	
    Sale of
    Shares

 

    Upon the terms and subject to the conditions in this Agreement,
    Purchaser will purchase, and Retsky will convey, transfer,
    assign and deliver to Purchaser, free and clear of all
    Encumbrances (as defined below), on the Closing Date (as defined
    below), the number of the shares of capital stock of Rand set
    forth opposite his name on Schedule 1.1 attached hereto
    (the “Shares”), which represents all of the issued and
    outstanding shares of capital stock of Rand.

 

		
	
    1.2  
	
    Method
    and Conveyance of Transfer

 

    The conveyance and transfer of the Shares will be effected by
    delivery of all certificates evidencing the Shares, duly
    endorsed in blank by Retsky, or such other instruments of
    transfer as are reasonably acceptable to Purchaser in each case,
    vesting in Purchaser good and marketable title to the Shares,
    free and clear of all Encumbrances.

 

    ARTICLE II

    

 

    PURCHASE
    PRICE
    

 

		
	
    2.1  
	
    Purchase
    Price

 

    Purchaser agrees to pay Retsky, Nine Million Three Hundred Sixty
    Five Thousand Three Hundred Thirty Three Dollars ($9,365,333)
    (the “Purchase Price”) for the Shares. The Purchase
    Price will be subject to possible adjustments pursuant to future
    revenue results and possible Losses subject to indemnification.
    The Purchase Price shall be paid as follows:

 

    (a) Cash Down.  At the Closing,
    Purchaser will pay Retsky, by wire transfer of immediately
    available funds to an account specified by Retsky, an amount
    equal to Six Million Eight Hundred Thousand Dollars ($6,800,000)
    (the “Cash Down Payment”);

 

    (b) Promissory Note.  At the
    Closing, Purchaser will execute and deliver to Retsky a
    promissory note in the original principal amount of One Million
    Three Hundred Sixty Five Thousand Three Hundred Thirty Three
    Dollars ($1,365,333), in substantially the form attached hereto
    as Exhibit A (the “Promissory
    Note”);

 

    (c) Cash Escrow.  At the Closing,
    Purchaser will deliver to City National Bank, or such other
    escrow agent as mutually agreed to by the parties located in the
    State of California, (the “Escrow Agent”) for
    deposit

    

 

    into an interest-bearing escrow account (“Cash Escrow
    Account”), by wire transfer of immediately available
    funds, an amount equal to Six Hundred Thousand Dollars
    ($600,000) (the “Escrow Amount”) to be held
    pursuant to the terms of an Escrow Agreement between Retsky,
    Purchaser and Escrow Agent (the “Escrow Agreement”);

 

    (d) Stock Shares Issued.  At
    the Closing, Purchaser will deliver to Escrow Agent a stock
    certificate for the number of shares of Class A common
    stock of Purchaser (the “Common Stock”) equal
    in value to Six Hundred Thousand Dollars ($600,000). For
    purposes of calculating the average price per share (the
    “Closing Date Price Per Share”) for the Common
    Stock to be delivered pursuant to this
    Section 2.1(d) at the Closing, the price per share
    shall be the price of the Common Stock for the twenty
    (20) day period immediately prior to the Closing Date. The
    number of shares of Common Stock delivered in satisfaction of
    the Stock Consideration portion of the Purchase Price shall be
    determined by dividing Six Hundred Thousand Dollars ($600,000)
    by the Closing Date Price Per Share (the “Stock
    Consideration”). The number of shares of Common Stock
    included in the Purchase Price shall be adjusted to reflect any
    subsequent stock split, reverse split or reclassification, or
    the like.

 

		
	
    2.2  
	
    Methods
    and Definitions

 

    (a) Gross Revenue Targets and Definitions.

 

    (i) The calendar 2007 minimum gross revenue target is Six
    Million Three Hundred Forty Nine Thousand Two Hundred and Six
    Dollars ($6,349,206) (“2007 Minimum Revenue
    Target”).

 

    (ii) The calendar 2008 minimum gross revenue target is Nine
    Million Six Hundred Thousand Dollars ($9,600,000) (“2008
    Minimum Revenue Target”).

 

    (iii) The last day of the financial period that will be
    used for determining the revenue levels achieved shall be
    referred to as the “Reporting Date”.

 

    (b) Determination of Gross
    Revenue.  Within sixty (60) days
    following the Reporting Dates set forth in Sections 2.3
    and 2.4 below, Purchaser will deliver a written notice to
    Retsky (“Revenue Notice”) detailing the Gross
    Revenue (as defined below) of Rand for the 12 month period
    ended on the Reporting Date, (such amount as finally determined
    in accordance with this Section 2.2(b), the
    “Actual Gross Revenue”). If Retsky objects to
    the calculation of Gross Revenue in the Revenue Notice, he shall
    notify Purchaser within thirty (30) days following receipt
    of such Revenue Notice, setting forth in specific detail the
    basis for such objection (the “Objection
    Notice”). If Retsky fails to deliver the Objection
    Notice within such time period, the Actual Gross Revenue shall
    be as set forth in the Revenue Notice. If an Objection Notice is
    delivered within the required period, then Purchaser and Retsky
    shall use their respective best efforts to reach agreement as to
    any such proposed adjustment to Gross Revenue detailed in such
    Objection Notice. If Purchaser and Retsky are unable to resolve
    any such dispute within thirty (30) days of
    Purchaser’s receipt of the Objection Notice, then Purchaser
    and Retsky shall select a regionally recognized independent
    accounting firm (“Accounting Firm”) mutually
    acceptable to the parties to resolve said dispute. In the event
    Purchaser and Retsky cannot agree on a mutually acceptable
    Accounting Firm, Purchaser and Retsky each shall select a
    regionally recognized independent accounting firm and the two
    accounting firms so selected shall select the Accounting Firm.
    Purchaser and Retsky shall use commercially reasonable efforts
    to cause a report to be rendered by the Accounting Firm within
    thirty (30) days of its appointment. The determination of
    the Accounting Firm shall be final and binding on Retsky and
    Purchaser. The costs and expenses of the Accounting Firm will be
    shared equally by Purchaser and Retsky. For purposes of this
    Agreement, “Gross Revenue” means revenue recognized in
    accordance with generally accepted accounting principles
    (“GAAP”) used by Purchaser in preparing its
    consolidated financial statements.

 

		
	
    2.3  
	
    2007
    Actual Gross Revenue Calculation

 

    For purposes of this Agreement, the Actual Gross Revenue for the
    period ending December 31, 2007 (the “2007 Actual
    Revenue”) will be equal to the Actual Gross Revenue,
    based upon a Reporting Date of December 31, 2007, as
    determined pursuant to the methods set forth in
    Section 2.2(b) above.

    

 

    (a) Early Escrow Release.  If the
    2007 Actual Revenue equals or exceeds the 2007 Minimum Revenue
    Target and the amount of the aggregate Losses, as defined in
    Article X subject to indemnification by Retsky, is less
    than the Threshold amount defined in Section 10.2,
    then, within thirty (30) days following the final
    determination of the 2007 Actual Revenue, Purchaser and Rand
    shall deliver joint written instructions to the Escrow Agent
    instructing the Escrow Agent to take the following actions:

 

    (i) Release the balance of the funds held in the Cash
    Escrow Account (including any accrued interest) to Retsky.

 

    (ii) Release the balance of the Stock Consideration held in
    escrow pursuant to Section 2.1(d) to Retsky.

 

    (b) Escrow Release Postponed.  If
    the 2007 Actual Revenue is less than the 2007 Minimum Revenue
    Target, then the Cash Escrow Account and the Stock Consideration
    will not be released by the Escrow Agent and the Purchase Price
    will be subject to the adjustments set forth in Section 2.4
    below and not pursuant to Section 2.3.

 

    (c) Partial Escrow Release.  If the
    2007 Actual Revenue is greater than the 2007 Minimum Revenue
    Target, but if the amount of the aggregate Losses as defined in
    Article X, subject to indemnification by Retsky, is more
    than or equal to the Threshold amount defined in
    Section 10.2, then the Cash Escrow Account and the
    Stock Consideration will in that order be reduced by the amount
    of the aggregate Losses as defined in Article X,
    subject to indemnification by Retsky, with the balance of the
    funds held in the Cash Escrow Account if any (including any
    accrued interest) and the balance of the Stock Consideration
    held in Escrow pursuant to Section 2.1(d), if any
    paid to Retsky. For purposes herein, the price per share shall
    be determined in the manner set forth in
    Section 2.4(d)(vi) using December 31, 2007 as
    the date and not December 31, 2008.

 

		
	
    2.4  
	
    2008
    Purchase Price Adjustment

 

    For purposes of this Agreement, the Actual Gross Revenue for the
    period ending December 31, 2008 (the “2008 Actual
    Revenue”) will be equal to the Actual Gross Revenue,
    based upon a Reporting Date of December 31, 2008, as
    determined pursuant to the method set forth in
    Section 2.2(b) above. Subsections (a) through
    (d) define the four possible outcomes and the respective
    actions to be taken:

 

    (a) Revenue Exceeds 2008 Minimum Revenue
    Target.  If the 2008 Actual Revenue is equal
    to or greater than the 2008 Minimum Revenue Target then, subject
    to Section 2.5 below, (i) Purchaser and Retsky
    shall deliver joint written instructions to the Escrow Agent
    instructing the Escrow Agent to take the actions described in
    Section 2.3(a) provided that these actions were not
    previously taken in compliance with Section 2.3(a)
    above (ii) Purchaser will proceed to pay the balance due on
    the Promissory Note (Section 2.1(b)) in five equal
    monthly installments beginning March 1, 2009. In this case
    the Purchase Price equals the amount stated in
    Section 2.1.

 

    (b) Revenue Exceeds 2007 Minimum Revenue
    Target.  If the 2008 Actual Revenue is less
    than the 2008 Minimum Revenue Target but is equal to or greater
    than the 2007 Minimum Revenue Target, then, subject to
    Section 2.5 below, Purchaser and Retsky shall
    deliver joint written instructions to the Escrow Agent
    instructing the Escrow Agent to take the actions described in
    Section 2.3(a), provided that these actions were not
    previously taken in compliance with Section 2.3(a).
    In addition, the total amount due on the Promissory Note will be
    computed subject to the following adjustment:

 

    (i) An adjustment factor will be computed, as follows: the
    2007 Minimum Revenue Target amount will be subtracted from the
    2008 Actual Revenue with the remainder then divided by Three
    Million Two Hundred Fifty Thousand Seven Hundred Ninety Four
    Dollars ($3,250,794) (“Promissory Note Adjustment
    Factor”), provided, however the Promissory
    Note Adjustment Factor cannot be greater than one (1).

 

    (ii) The adjusted amount of the Promissory Note will be
    determined by multiplying the Promissory Note Adjustment
    Factor by original amount of the Promissory Note (the
    “Adjusted Promissory Note Obligation”). The
    Adjusted Promissory Note Obligation will be the full
    Purchaser obligation with regard to the Promissory Note, and
    such amount will be due and payable in five equal monthly
    installments

    

 

    beginning March 1, 2009. At Purchasers’ request Retsky
    will return the Promissory Note to Purchaser for cancellation
    and Purchaser will execute and deliver a new Promissory Note to
    Retsky for the amount of the Adjusted Promissory
    Note Obligation.

 

    (iii) In this case the Purchase Price equals the amount
    stated in Section 2.1 less the amount by which the
    Promissory Note was reduced in this Section 2.4(b).

 

    (c) 2007 Minimum Revenue Target Previously Met but
    2008 Revenue is Under 2007 Minimum Revenue
    Target.  If in accordance with
    Section 2.3(b), the 2007 Minimum Revenue Target was
    previously equaled or exceeded, but the 2008 Actual Revenue is
    less than the 2007 Minimum Revenue Target, the Promissory Note
    will be marked canceled with no payment due and returned to
    Purchaser, thereby reducing the amount of the Purchase Price
    stated in Section 2.1 by the full amount of the
    Promissory Note.

 

    (d) Revenue is Under 2007 Minimum Revenue
    Target.  If the 2007 Actual Revenue was not
    equal to or greater than the 2007 Minimum Revenue Target and the
    release of the cash and shares was postponed in accordance with
    Section 2.3(b) and the 2008 Actual Revenue is less
    than the 2007 Minimum Revenue Target, then, subject to
    Section 2.5 below, the following procedures will be
    used to adjust the Purchase Price:

 

    (i) The Promissory Note will be marked canceled with no
    payment due and returned to Purchaser.

 

    (ii) An adjustment factor will be computed taking the 2008
    Actual Revenue amount and dividing it by the 2007 Minimum
    Revenue Target amount (the “2008 Reduction
    Ratio”).

 

    (iii) The Purchase Price will be adjusted downward to a
    number computed by multiplying Eight Million Dollars
    ($8,000,000) by the 2008 Reduction Ratio.

 

    (iv) Following the above calculation steps, an adjustment
    amount will be computed by subtracting the Purchase Price from
    the Eight Million Dollars ($8,000,000) (the “Purchase
    Price Shortfall”).

 

    (v) The Purchase Price Shortfall will be first allocated to
    reduce the amount due to Retsky from the Cash Escrow Account,
    with the amount of this reduction being due to Purchaser. When
    this calculation is complete, Purchaser and Retsky shall deliver
    joint written instructions to the Escrow Agent instructing the
    Escrow Agent to release the funds held in the Cash Escrow
    Account by the Escrow Agent to Retsky and Purchaser, according
    to the above calculations.

 

    (vi) If the Purchase Price Shortfall exceeds the amount in
    the Cash Escrow Account, the excess amount (the
    “Remaining Losses”) will be deducted from the
    Stock Consideration being held in escrow. The price per share
    (“Price Per Share”) shall be determined by
    using the average of the closing sale price of Purchaser’s
    Common Stock as reported by the American Stock Exchange
    (“AMEX”) or any other national securities
    exchange in which the Common Stock is then listed for the
    previous twenty (20) trading days on which it shall have
    traded ending on the last trading day immediately prior to
    December 31, 2008. Provided, however, that if the Common
    Stock is not then listed or admitted to trading on any national
    securities exchange then the Price Per Share will be the average
    of the closing bid and asked prices of Common Stock as shown by
    the National Association of Securities Dealers, Inc
    (“NASD”) automated quotation system or the
    over-the-counter
    market for the previous twenty (20) trading days on which
    it shall have traded ending on the last trading day immediately
    prior to December 31, 2008. The number of shares to be
    deducted from the Stock Consideration will be determined by
    dividing the amount of the Remaining Losses by the Price Per
    Share. Purchaser and Retsky shall deliver joint written
    instructions to the Escrow Agent instructing the Escrow Agent to
    release the stock certificate to Purchaser for replacement with
    a new stock certificate with a revised number of shares,
    subtracting those shares that offset the amount of the Remaining
    Losses. This revised stock certificate will then be immediately
    delivered to Retsky by Purchaser. Notwithstanding the foregoing,
    Retsky shall have, at its option, the right to pay the amount of
    the Remaining Losses in cash by December 31, 2008, thereby
    eliminating the need to forfeit any of the Stock Consideration.

 

    (vii) If the Purchase Price Shortfall exceeds the value of
    the Stock Consideration being held in escrow, there will be no
    obligation on the part of Retsky to return any portion of the
    Cash Down Payment

    

 

    relative to the future revenue results obtained by Purchaser. In
    this case, the Escrow Agent will release the Stock Consideration
    and the Cash Escrow Account to Purchaser.

 

		
	
    2.5  
	
    Effects
    of Indemnification by Retsky

 

    The terms, definitions and methods described in this
    Article II apply to the Purchase Price, and
    adjustments to the Purchase Price that may be necessary if the
    2008 Minimum Revenue Target is not achieved. At the point where
    the 2008 Purchase Price Adjustment calculations have been
    completed, if aggregate Losses, as defined in
    Article X, exceed the Threshold, after taking into
    consideration adjustments that have previously been made under
    Section 2.3(c), above the amount of the additional
    aggregate Losses will be deducted from the above payments of
    cash and stock before the actual release of the contents of the
    escrow accounts and before the Promissory Note is paid. The
    amount of the aggregate Losses will be deducted first from any
    amounts due on the Promissory Note, second from amounts
    available in the Cash Escrow Account and third, to the extent
    possible, by a reduction in the number of shares held in escrow
    as the Stock Consideration using the method described in
    Section 2.4(e)(vi) to determine the number of shares
    to be removed and returned to Purchaser.

 

		
	
    2.6  
	
    Excess
    Accounts Receivable Purchase Price Adjustment

 

    The Purchase Price may be increased if there is an excess amount
    of the cash collected for the accounts receivables of Rand (the
    “Excess A/R”) between October 1, 2006 and
    through the close of business on December 31, 2006
    (“Collection Period”). The method for computing
    the Excess A/R will be as follows: (a) cash received from
    the payment of accounts receivables of Rand during the
    Collection Period less (b) the sum of (i) the actual
    expenses incurred by Rand for the items set forth on
    Schedule 2.6 during such Collection Period and
    (ii) Three Thousand Six Hundred Twenty Three Dollars and
    Eighteen Cents ($3,623.18) times the number of days between the
    Closing Date and December 31, 2006. The amount of any
    Excess A/R, if any, will be paid by Purchaser to Retsky in four
    equal monthly payments beginning February 1, 2007.

 

    ARTICLE III

    

 

    CLOSING
    

 

    The closing of the transactions contemplated by this Agreement
    (the “Closing”) will take place at the offices
    of Purchaser at 1805 Old Alabama Road Suite 350, Roswell,
    GA 30076 on October 31, 2006, at 10:00 a.m. Eastern
    Standard Time after the satisfaction or waiver of the conditions
    set forth in this Article VI and VII (other than any
    such conditions that by their terms cannot be satisfied until
    the Closing Date, which conditions shall be required to be so
    satisfied or waived on the Closing Date) or such other place or
    date mutually agreeable to the Parties (the “Closing
    Date”). The Parties will use commercially reasonable
    efforts to cause the Closing to occur as soon as practicable. If
    the Closing has not taken place by such date by reason of the
    failure of fulfillment of any condition or conditions contained
    in this Agreement then either Party may extend the Closing for
    sixty (60) days to permit fulfillment of such condition or
    conditions. The Closing shall be effective as of
    12:01 A.M. E.S.T. on the Closing Date.

 

    ARTICLE IV

    

 

    REPRESENTATIONS
    AND WARRANTIES OF RAND AND RETSKY
    

 

    Retsky and Rand, jointly and severally, represent and warrant to
    Purchaser that the statements contained in this
    Article IV are correct and complete as of the date
    of this Agreement and will be correct and complete as of the
    Closing Date (as though made then and as though the Closing Date
    were substituted for the date of this Agreement throughout this
    Article IV), as follows:

 

		
	
    4.1  
	
    Organization,
    Power and Authority; Subsidiaries

 

    (a) Validly Existing
    Corporation.  Rand is a corporation duly
    organized, validly existing and in good standing under the laws
    of the State of California and has all requisite corporate power
    and authority to own

    

 

    or lease its properties, to carry on its business as it is now
    being conducted and to enter into this Agreement and all other
    agreements contemplated hereby and to perform its obligations
    hereunder and thereunder. Rand is legally qualified to transact
    business as a foreign corporation in each of the jurisdictions
    in which it is required to be so qualified, and it is in good
    standing in each of the jurisdictions in which it is so
    qualified and each such jurisdiction is listed on
    Schedule 4.1.

 

    (b) Capitalization.  The authorized
    capital stock of Rand and the number of shares of each class of
    capital stock issued and outstanding of Rand is as set forth on
    Schedule 4.1(b). All of the issued and outstanding
    shares of Rand have been duly authorized, validly issued, fully
    paid and are nonassessable and are not subject to, and were not
    issued in violation of, any preemptive rights or any applicable
    securities laws and regulations. There are no outstanding or
    authorized offers, subscriptions, conversion rights, options,
    warrants, rights, convertible or exchangeable securities, stock
    appreciation, phantom stock, profit participation,
    understandings, claims of any character, obligations or other
    agreements or commitments of any nature, whether formal or
    informal, firm or contingent, written or oral, relating to the
    capital stock of, or other equity or voting interest in, Rand,
    pursuant to which Rand is or may become obligated to:
    (i) issue, deliver, sell or transfer, or cause to be
    issued, delivered, sold or transferred, any shares of the
    capital stock or other ownership or voting interests in or
    securities of Rand (whether debt, equity, or a combination
    thereof); (ii) grant, extend, issue, deliver or enter into
    any such agreements or commitments; or (iii) repurchase,
    redeem or otherwise acquire any capital stock or other ownership
    interests in or securities of Rand.

 

    (c) No Other
    Ownership Interests.  Rand does not own,
    directly or indirectly, any capital stock of, or other equity
    interests in, any corporation, partnership, joint venture or
    other entity.

 

    (d) Rand Shareholder List.  Retsky
    owns the number of shares set forth opposite his name on
    Schedule 1.1. Retsky is the only holder of equity in Rand.
    Retsky has good and marketable title to the Shares being sold by
    him to Purchaser hereunder free and clear of all Encumbrances.
    Upon consummation of the purchase of the Shares as contemplated
    by this Agreement, Purchaser will be the record and beneficial
    owner of one hundred percent (100%) of the equity interests of
    Rand, free and clear of all Encumbrances.

 

		
	
    4.2  
	
    Due
    Authorization; Binding Obligation; No Conflicts

 

    (a) Authority.  Retsky represents
    that he has the power and authority to (i) execute and
    deliver this Agreement and the other instruments and agreements
    to be executed and delivered by him as contemplated hereby, and
    (ii) to consummate the transactions contemplated hereby and
    by the other instruments and agreements to be executed and
    delivered by him contemplated hereby, including the sale,
    assignment, transfer and conveyance of his Shares pursuant to
    this Agreement (the “Transaction Documents”).
    Retsky further represents that no further action is necessary on
    his part to make the Transaction Documents valid, binding and
    enforceable on him in accordance with their terms and when
    executed and delivered the Transaction Documents shall have been
    duly executed and delivered by him and shall be the valid and
    binding obligations of him, enforceable against him in
    accordance with their terms

 

    (b) Conflicts.  The execution,
    delivery, consummation and performance of the Transaction
    Documents by Retsky or Rand (i) are not contrary to the
    Charter Documents (as defined below) of Rand, (ii) except
    as set forth on Schedule 4.2(b), do not now and will
    not result in a violation or breach of, conflict with or
    constitute a default (or give rise to any right of termination,
    cancellation, payment or acceleration) under, result in the
    creation of any liens, security interests, option, rights of
    first refusal, claims, easements, mortgages, charges,
    indentures, deeds of trust, rights of way, restrictions on the
    use of real property, encroachments, licenses to third parties,
    leases to third parties, security agreements, or any other
    encumbrances and other restrictions or limitations on use of
    real or personal property or irregularities in title thereto
    (each, an “Encumbrance”) on any of the
    properties of Rand or Retsky, under any term or provision of any
    note, bond, mortgage, indenture, guarantee, license, franchise,
    permit, agreement, understanding, arrangement, contract,
    commitment, lease, franchise agreement or other instrument or
    obligation (whether oral or written and including all amendments
    thereto) to which Retsky or Rand are a party, or by which their
    properties or assets are bound, (iii) do not result in a
    violation or breach of, conflict with or constitute a default
    under, nor result in the creation of any Encumbrance on any of
    the properties of Rand under any Environmental Law (as defined
    below) or any other statute, law, ordinance, rule or regulation
    of any Governmental or Regulatory

    

 

    Authority (as defined below) (individually, a
    “Law”) or under any judgment, order,
    injunction, decree, writ, permit or license of any Governmental
    or Regulatory Authority or any Arbitration Panel (individually,
    an “Order”) applicable to Rand, and
    (iv) does not result in any acceleration or termination of
    any loan or security interest agreement to which Retsky or Rand
    are a party or to which Retsky’s or Rand’s assets are
    subject or bound. For purposes of this Agreement,
    “Charter Documents” means the Articles of
    Incorporation, Bylaws or other similar organizational documents
    of Rand or Purchaser, as the case may be, and any amendments
    thereto, as applicable.

 

    (c) Consents.  No consent, approval
    or action of, filing with or notice to, any instrumentality,
    subdivision, court, administrative agency, commission, official
    or other authority of the United States or any other country or
    any state, province, prefect, municipality, locality or other
    government or political subdivision thereof, or any
    quasi-governmental or private body exercising any regulatory,
    taxing, importing or other governmental or quasi-governmental
    authority or agency (“Governmental or Regulatory
    Authority”) or private third party is necessary or
    required under any of the terms, conditions or provisions of any
    Law or Order applicable to Rand or Retsky or by which any of his
    or its properties or assets may be bound, or under any contract
    to which Rand or Retsky are a party or by which their assets or
    properties may be bound, for the execution and delivery of this
    Agreement by Rand or Retsky, the performance by Retsky of his
    obligations hereunder or the consummation of the transactions
    contemplated hereby.

 

		
	
    4.3  
	
    Financial
    Statements

 

    (a) Prior to the date of this Agreement, Rand has provided
    Purchaser with the financial statements of Rand listed below
    (the “Financial Statements”) and will provide
    the monthly financial statements of Rand for each full month
    after the date hereof up to the Closing Date, as soon as
    practicable after the date of such month (the “Interim
    Monthly Financial Statements”):

 

    (i) Audited Financials.  Rand will
    provide audited balance sheets and statements of income, changes
    in stockholders’ equity, and cash flow as of and for the
    fiscal years ended December 31, 2005, December 31,
    2004 and December 31, 2003, including the notes pertaining
    thereto, prepared and certified by UHY LLP; and

 

    (ii) Unaudited
    Financials.  Unaudited balance sheet and
    statement of income, changes in stockholder’s equity and
    cash flow of Rand as of and for the month ended July 31,
    2006 (the “Most Recent Balance Sheet”).

 

    (b) Accounting Standards and
    Accuracy.  The Financial Statements and the
    Most Recent Balance Sheet (and with respect to the Interim
    Monthly Financial Statements, when delivered, will or will be as
    the content requires): (i) have been prepared in accordance
    with GAAP throughout the periods covered thereby;
    (ii) present fairly Rand’s financial condition,
    results of operations and changes in stockholder equity and cash
    flows as of the respective dates and periods thereof;
    (iii) are true and complete; and (iv) are consistent
    with the books and records of Rand; provided however, that the
    Most Recent Balance Sheet and the Interim Monthly Financial
    Statements do not include footnotes and are subject to normal
    year-end adjustments (which will not be material individually or
    in the aggregate).

 

		
	
    4.4  
	
    Tax
    Matters

 

    (a) All Taxes Paid.  Rand has filed
    all Tax Returns (as defined in subsection (j) below)
    required to be filed by Rand. All such Tax Returns were correct
    and complete in all respects and were prepared in compliance
    will all applicable Laws. All Taxes due and owing by Rand
    (whether or not shown on any Tax Return) have been paid. Rand
    has not requested or is currently the beneficiary of any
    extension of time within which to file any Tax Return that has
    not yet been filed. Rand has not received any notice of
    deficiency, assessment or proposed deficiency with respect to
    Taxes and Retsky has no knowledge of any unassessed Tax
    deficiency proposed or threatened against Rand. There are no
    Encumbrances on the assets of Rand as a result of any Tax
    liabilities except for Taxes not yet due and payable.

 

    (b) Compliance with Applicable Tax
    Laws.  Rand has withheld and paid all Taxes
    required to have been withheld and paid in connection with any
    amounts paid or owing to any employee, independent contractor,
    creditor, stockholder, or other party. No claim has ever been
    made by any Taxing authority in a jurisdiction where Rand does
    not file Tax Returns that Rand is or may be subject to taxation
    by that jurisdiction.

    

 

    (c) Rand Not Party to Tax
    Sharing.  Rand has never been and is not a
    party to any type of Tax sharing or similar allocation agreement.

 

    (d) No Adjustments.  No adjustments
    have been made by Rand under Code Section 481 which will
    affect the Taxes of Rand for any taxable years that end on or
    after the Closing Date. Rand will not be required to include any
    item of income in, or exclude any item of deduction from,
    taxable income for any taxable period (or portion thereof)
    ending after the Closing Date as a result of (i) a change
    in method of accounting, (ii) a closing agreement as
    described in Section 7121 of the Code (or any corresponding
    or similar provision of state, local or foreign Tax law),
    (iii) any installment sale, open transaction disposition or
    similar transaction, or (iv) the receipt of any prepaid
    amount received on or prior to the Closing Date.

 

    (e) Rand has not been a Real Estate Holding
    Corporation.  Rand is not nor has it been a
    United States real property holding corporation within the
    meaning of Section 897(c)(2) of the Internal Revenue Code
    of 1986, as amended from time to time and the regulations
    promulgated and the rulings issued thereunder (the
    “Code”), during the applicable period specified
    in Section 897(c)(1)(A)(ii) of the Code.

 

    (f) Limit of Tax Obligations
    Assured.  As to all Tax periods, or portions
    thereof, which end prior to, or include the Closing Date, the
    liability of Rand for Taxes with respect to such periods, or
    portions thereof, does not exceed the amount accrued for such
    liability on the Most Recent Balance Sheet, as adjusted for
    operations and transactions of Rand in the ordinary course of
    business through the Closing Date, in accordance with the past
    practice and custom of Rand.

 

    (g) No Current Tax Return
    Extensions.  There are no outstanding
    agreements or waivers extending the statutory period of
    limitations applicable to any Tax Return of Rand for any period.
    No Taxing authority has audited any Tax Return or report filed
    by Rand for any taxable period or otherwise commenced any action
    or proceeding for the assessment or collection of Taxes, nor to
    Retsky’s knowledge has any such event been threatened. All
    Tax deficiencies of Rand raised as a result of any past audits
    have been satisfied.

 

    (h) Tax Deficiencies, Audits,
    Etc.  Rand has not been and is not a party to
    any action or proceeding brought by any Governmental or
    Regulatory Authority for the assessment or collection of Taxes,
    nor has any such event been asserted or threatened against it.
    Rand is not obligated to make any payments, nor is Rand a party
    to any agreement that under certain circumstances could obligate
    it to make any payments, that would not be deductible under
    Section 280G of the Code, nor is Rand liable under any
    agreements to compensate any person for any excise tax imposed
    pursuant to Section 4999 of the Code. Rand is not and could
    not be liable for the Taxes of any other Person or entity under
    Treasury Regulations
    Section 1.1502-6
    or any comparable state, local or foreign statute or regulation,
    or as a transferee, successor, by contract, operation of Law or
    otherwise. For purposes of this Agreement,
    “Person” shall mean an individual, corporation,
    limited liability company, partnership, association, estate,
    trust, unincorporated organization, Governmental or Regulatory
    Authority, or other entity or organization.

 

    (i) List of Tax
    Jurisdictions.  Schedule 4.4 sets
    forth all jurisdictions in which Rand has filed or will file Tax
    Returns for each taxable period, or portion thereof, ending on
    or before the Closing Date. Rand has provided Purchaser with
    true and complete copies of Rand’s Tax Returns for all
    taxable periods beginning after December 31, 2000 and have
    furnished to Purchaser complete and correct copies of all audit
    reports received by Rand with respect to the audit of any Tax
    Return for any taxable period.

 

    (j) Definition of Taxes and Tax
    Returns.  For purposes of this Agreement,
    “Taxes” shall mean any and all taxes, charges,
    fees, duties, levies or other assessments, including, without
    limitation, income, gross receipts, value added, alternative or
    add-on minimum, estimated, excise, real or property, sales,
    withholding, social security, retirement, employment,
    unemployment, occupation, profits, capital gains, capital stock,
    severance, windfall profit, stamp, environment (including taxes
    under Section 59A of the Code), use, service, service use,
    license, net worth, payroll, franchise, transfer, recording and
    other taxes, customs and import dues, fees or other governmental
    charges of any kind, imposed by any Governmental Authority
    (whether domestic or foreign including, without limitation, any
    state, county, local or foreign government or any taxing agency
    thereof), whether computed on a separate, consolidated, unitary,
    combined or any other basis; and such term shall include
    (i) any interest, fines, penalties or additional amounts
    attributable to, or imposed upon, or with respect to, any such
    taxes, (charges, fees, levies or other assessments) and
    (ii) any liability for such amounts as a result either of
    being a member of a combined,

    

 

    consolidated, unitary or affiliated group or of a contractual
    obligation to indemnify any person or other entity. “Tax
    Return” shall mean any report, return, document,
    declaration or other information or filing required to be
    supplied to any taxing authority or jurisdiction (foreign or
    domestic) with respect to Taxes, including, without limitation,
    information and estimated returns, schedules or attachments, any
    documents with respect to or accompanying payments of estimated
    Taxes, or with respect to or accompanying requests for the
    extension of time in which to file any such report, return,
    document, declaration or other information and including any
    amendment thereof.

 

    (k) S-Election.  Rand elected with
    the Internal Revenue Service to be taxed as an
    “S Corporation” as of February 20, 1985
    (“S-Election Date”). Rand has been validly
    electing “S corporations” within the meaning of
    Sections 1361 and 1362 of the Code at all times since the
    S-Election Date and will be “S corporations” up
    to and including the Closing Date.

 

		
	
    4.5  
	
    Real
    Property

 

    (a) List of All Real Property Related
    Contracts.  Rand does not own any real
    property. Schedule 4.5(a) is a true and complete
    list of (i) all real property leases to which Rand is a
    party, and all related rights of way, licenses or easements, and
    (ii) all options, deeds of trust, deeds of declaration,
    mortgages and land contracts pursuant to or in which Rand has
    any interest (collectively, the “Leased
    Property”). Rand has furnished to Purchaser or their
    respective counsel true and complete copies of each written
    contract and a written description of each oral contract
    relating to the list set forth on Schedule 4.5(a),
    including, without limitation, each deed, lease or other
    instrument which provides evidence of Rand’s title to or
    interest in the Leased Property. Other than the Leased Property,
    Rand does not lease, sublet or otherwise occupy any other real
    property.

 

    (b) Representations Regarding Leased
    Property.  With respect to the Leased Property:

 

    (i) There is no condemnation proceeding or eminent domain
    proceeding of any kind pending or threatened against any of the
    Leased Property;

 

    (ii) The Leased Property is occupied under valid and
    current certificates of occupancy or the like, and the
    transactions contemplated by this Agreement will not require the
    issuance of any new or amended certificates of occupancy or the
    like; there are no facts which would prevent each location from
    being occupied after the Closing Date in substantially the same
    manner as before;

 

    (iii) To Rand’s knowledge, the Leased Property does
    not violate, and all improvements are constructed in compliance
    with, any applicable federal, state or local statutes, Laws,
    ordinances, codes, Orders or requirements, including, without
    limitation, any building, zoning, fire or Environmental Laws or
    codes (the “Laws and Ordinances”) and Rand will
    convey, transfer and assign the Leased Property free from any
    such violations;

 

    (iv) Rand has obtained all appropriate licenses, permits,
    building permits and occupancy permits that are required to
    conduct the business as it is presently being conducted;

 

    (v) There are no recorded outstanding variances or special
    use permits affecting the Leased Property or its uses;

 

    (vi) No notice of a violation of any Laws and Ordinances,
    or of any covenant, condition, easement or restriction affecting
    the Leased Property or relating to its use or occupancy has been
    given, nor is Rand aware of any such violation;

 

    (vii) The Leased Property has and will have as of the
    Closing Date water supply, storm and sanitary sewage facilities,
    telephone, gas, electricity, fire protection, means of ingress
    and egress to and from public highways and, without limitation,
    other required public utilities adequate to conduct the business
    as it is presently being conducted;

 

    (viii) Rand has no knowledge of improvements made or
    contemplated to be made by any public or private authority, the
    costs of which are to be assessed as special Taxes or charges
    against the Leased Property, and there are no present
    assessments;

    

 

    (ix) The Leased Property either (A) is freely
    accessible directly from all public streets on which it abuts,
    or (B) uses adjoining private land to access the same in
    accordance with valid public easements. Rand has no knowledge of
    any condition which would result in the termination of such
    access;

 

    (x) All leases are in writing and are duly executed and,
    where required, witnessed, acknowledged and recorded to make
    them valid and binding and in full force and effect for their
    full term, and none have been modified, amended, sublet or
    assigned;

 

    (xi) The rental set forth in each such lease is the actual
    rental being paid, there are no separate agreements or
    understandings with respect to the same and the receipt for the
    payment of rental due immediately prior to the date of this
    Agreement is unqualified;

 

    (xii) Where Rand is the lessee, the lessee under each such
    lease has the full right to exercise any renewal option and on
    due exercise will be entitled to enjoy the use of the leased
    premises for the full term of such renewal option, and such
    renewal option does not terminate on assignment of such lease;

 

    (xiii) There is no default by Rand or any other party which
    affects the Leased Property;

 

    (xiv) Where Rand is the lessee, upon performance by the
    lessee of the terms of each lease (all of which terms have been
    fully performed by the lessee as of the date of this Agreement
    and will have been fully performed as of the Closing Date), the
    lessee has the full right to enjoy the use of the premises
    demised for the full term of the lease without disturbance by
    any other party, and there are no written or oral contracts
    between Rand and any third party relating to any claim by such
    third party of any right to all or any part of the interest of
    Rand in any leasehold estate or otherwise relating to the use
    and occupancy by Rand of such estate;

 

    (xv) All security deposits required by such leases have
    been made and have not been refunded or returned, or their
    forfeiture claimed, in whole or in part, by any lessor; and

 

    (xvi) Where Rand is the lessee, all leasehold improvements
    are in good operating or working condition and repair, after
    taking into account ordinary wear and tear, and are adequate for
    the operation of the business as presently operated and
    conducted. All contributions required to have been paid by any
    lessor of property in respect of any leasehold improvements have
    been paid.

 

		
	
    4.6  
	
    Title to
    and Condition of Assets

 

    Except as set forth on Schedule 4.6, Rand has good
    title to or, a valid leasehold interest in, free and clear of
    all Encumbrances except for Permitted Encumbrances necessary to
    operate the business of Rand as presently conducted. As used
    herein, “Permitted Encumbrances” shall mean
    Encumbrances (i) reflected in the Most Recent Balance Sheet
    (or the footnotes to the Most Recent Balance Sheet),
    (ii) consisting of zoning or planning restrictions or
    regulations, easements, Permits (as defined below), restrictive
    covenants, encroachments and other restrictions or limitations
    on the use of real property or irregularities in, or exceptions
    to, title thereto which, individually or in the aggregate, do
    not materially detract from the value of, or materially impair
    the use of, property used by Rand, and (iii) for current
    taxes, assessments or governmental charges or levies not yet due
    and payable. Rand owns or has the exclusive right to use all of
    the tangible or intangible personal properties and assets
    currently used in the conduct of its business. All tangible and
    intangible assets of Rand are in its possession or under its
    control. All of the tangible personal property and assets used
    in the business of Rand are in good operating condition and
    repair, subject only to routine maintenance and ordinary wear
    and tear, and are fit and adequate for the purposes intended,
    and, together with the Leased Property, constitute all of the
    assets currently used in the conduct of Rand’s business.
    Rand enjoys peaceful and quiet possession of its assets pursuant
    to or by deeds, bills of sale, leases, licenses and other
    agreements under which it is operating its business.

 

		
	
    4.7  
	
    Notes and
    Accounts Receivable

 

    All notes and accounts receivable of Rand are reflected properly
    on its respective books and records, are valid receivables not
    subject to any setoffs or counterclaims, are current and
    collectible, and will be collected in accordance with their
    terms at their recorded amounts.

    

 

		
	
    4.8  
	
    Licenses
    and Permits

 

    Rand possesses all franchises, licenses, easements, permits or
    other authorization from governmental or regulatory authorities
    and from all other persons that are necessary for the business
    and operations of Rand (“Permits”). All such
    Permits are valid and in full force and effect, Rand is in
    compliance with their requirements, and no proceeding is pending
    or threatened to revoke or amend any of them.
    Schedule 4.8 contains a complete list of all such
    Permits.

 

		
	
    4.9  
	
    Intellectual
    Property

 

    (a) List of Licenses and Intellectual Property
    Rights.  Rand has never been charged with
    infringement or violation of any patents, trademarks, service
    marks, know-how, registered designs, design rights, rights in
    confidential information, business or trade names or copyrights
    (the “Intellectual Property Rights”). Rand is not
    using and has not in any way made use of any patentable or
    unpatentable invention, or any confidential information or trade
    secret, of any other individual, or any present or past employee
    of Rand. Full and accurate details of all applications or
    registrations relating to the Intellectual Property Rights owned
    by Rand are set forth on Schedule 4.9 and are valid
    and subsisting and, to the extent indicated, have been duly
    registered in, filed in or issued by the United States Patent
    and Trademark Office or other corresponding applicable
    governmental agency or office. Complete copies of the terms of
    all licenses of Intellectual Property Rights not owned by Rand
    and used in the business or owned by Rand and licensed to third
    parties, are listed on Schedule 4.9 (other than
    licenses for
    “off-the-shelf”
    software). Rand is the sole and exclusive owner (except for the
    rights of licensees whose names and address are listed on
    Schedule 4.9), and is able to transfer such
    Intellectual Property Rights with full title guarantee, free and
    clear of all Liens. Rand does not use any of the Intellectual
    Property Rights owned by it, or used in the business, by consent
    of any other party and the same are free and clear of any Liens
    or agreements (including licenses, sub-licenses and options) and
    Rand is not obliged to grant any attachments, liens,
    encumbrances or agreements in respect of such Intellectual
    Property Rights (the “Rand Intellectual
    Property”).

 

    (b) No Breach of Intellectual Property
    Rights.  All information (whether or not
    confidential) and all know-how, technical and financial
    information, of Rand (“Business Information”)
    owned by Rand or otherwise used in the business is in the
    possession of Rand and Rand is not a party to any
    confidentiality or other agreements with respect thereto or
    subject to any duty that restricts the free use or disclosure of
    any such Business Information. Rand has not disclosed any
    confidential Business Information in its possession to any
    Person to whom it is not obligated to do so. Neither Rand nor
    any party with which it has contracted are in breach of
    (i) any license, sub-license, option, charge or assignment
    granted to or by them in respect of any Intellectual Property
    Rights owned by Rand or otherwise used in the business, or
    (ii) any agreement pursuant to which any Business
    Information was or is to be made available to Rand or such
    party, and the transactions contemplated by this Agreement will
    not result in any such breach or otherwise result in any such
    agreement being subject to termination.

 

    (c) No Intellectual Property Rights
    Infringement.  The processes and methods
    employed, the services provided, the business conducted by Rand
    do not infringe and have not infringed upon the rights any other
    Person or entity has in any Intellectual Property Rights or
    Business Information. To the knowledge of Rand, there is no
    unauthorized use or infringement by any Person of any of the
    Intellectual Property Rights or confidential Business
    Information owned by Rand or used in the business, nor has any
    such unauthorized use or infringement occurred prior to this
    Agreement.

 

    (d) No Threats of Intellectual Property
    Lawsuits.  There are no claims or demands of
    any other Person, firm or corporation pertaining to any of the
    Intellectual Property Rights owned by Rand or used in the
    business. No proceedings have been instituted, are pending or,
    to the knowledge of Rand, are threatened or suspected which may
    challenge the right of Rand in respect of any of the
    Intellectual Property Rights owned by Rand or used in the
    business. None of the Intellectual Property Rights owned by Rand
    or used in the business is subject to any outstanding Order
    restricting the scope of its use.

 

    (e) No Challenges to Rand’s Use of Trade
    Names.  Rand has valid and sufficient rights
    to use its trade names. There are no claims or demands of any
    other Person or entity pertaining to the use of such names and
    no proceedings have been instituted or, to the knowledge of
    Rand, are threatened or suspected that may challenge the rights
    of Rand in respect of such names; and the use of such names by
    Rand does not and will not infringe upon or, to the

    

 

    knowledge of Rand, is not being infringed upon, by others, and
    is not subject to any outstanding Order or agreement restricting
    the scope of their use.

 

    (f) Intellectual Property Adequate to Conduct
    Business.  The Intellectual Property Rights
    owned by, or used in, the business comprise all the intellectual
    property necessary to conduct the business as it has been
    conducted for the twelve (12) month period prior to the
    date of this Agreement.

 

    (g) List of Owned Trade Names, Service Marks,
    Copyrights, Etc.  True, correct and complete
    copies of all patents, trademarks, service marks, trade names,
    registered designs, design rights, copyrights, and of all
    related applications or registrations, that are required to be
    listed on Schedule 4.9 have been delivered to
    Purchaser or its respective counsel.

 

		
	
    4.10  
	
    Contracts
    and Agreements with Respect to Rand

 

    Schedule 4.10 sets forth a complete and accurate
    list of the material contracts and agreements, including
    employment agreements, to which Rand is a party, a true, correct
    and complete copy of each written, and a description of each
    oral, contract, so listed has been delivered to Purchaser or its
    respective counsel, including:

 

    (a) Collective Bargaining Agreement, Bonus, Stock,
    Profit-Sharing, Retirement, Medical Insurance,
    Etc.  Any collective bargaining agreement or
    other contract with any labor union or any bonus, pension,
    profit sharing, retirement or any other form of deferred
    compensation plan or any stock purchase, stock option,
    hospitalization insurance or similar plan or practice;

 

    (b) Employment, Consulting, Sales Representative,
    Severance Arrangement, Etc.  Any express
    contract for the employment of any officer, individual employee
    or other Person on a full-time or consulting or independent
    sales representative basis and any severance agreements, plans
    or programs, or any other agreements, written or oral, providing
    for payments or benefits upon termination of employment or any
    consulting or independent sale representative arrangement;

 

    (c) Agreements Connected with Borrowing Money or
    Purchasing Assets.  Any agreement or indenture
    relating to the borrowing of money or to mortgaging, pledging or
    otherwise placing a Lien on any of the asset or properties of
    Rand, including, without limitation, the documents related to
    any equipment financing;

 

    (d) Agreements Relating to Advanced or Loaned
    Money.  Any contract (excluding accounts
    receivable from customers in the ordinary course of business)
    under which Rand has advanced or loaned any other Person money;

 

    (e) Agreements Related to
    Indebtedness.  Any agreement with respect to
    indebtedness for borrowed money;

 

    (f) Licenses or Royalty
    Agreements.  Any license or royalty agreement;

 

    (g) Guaranty of Any
    Obligation.  Any guaranty of any obligation
    other than endorsements made for collection;

 

    (h) Any Lessee/Lessor
    Agreements.  Any lease or agreement under
    which it is lessee or permitted to hold or operate any property,
    real or personal, or is lessor of or permits any third party to
    hold or operate any property, real or personal, owned or
    controlled by it;

 

    (i) Contracts Not Readily
    Terminable.  Any agreement, contract or group
    of related agreements or contracts with the same party or
    related party continuing over a period of more than six
    (6) months from the date or dates thereof, not terminable
    by it on thirty (30) days or less notice without penalties
    and which involve more than $10,000;

 

    (j) Confidentiality
    Agreements.  Any confidentiality agreement or
    similar arrangement, other than those which were entered into
    with potential third-party purchasers of Rand;

 

    (k) Non-Compete Agreement.  Any
    non-compete or similar contract which prohibits it from freely
    engaging in business anywhere in the world;

    

 

    (l) Joint Venture or Similar
    Agreement.  Any agreement or contract
    involving any joint venture, partnership, strategic alliance or
    similar arrangement; or

 

    (m) All Other Agreements.  Any
    other agreement material to it whether or not entered into in
    the ordinary course of business, except for this Agreement or
    the agreements contemplated hereby.

 

    Each contract set forth on Schedule 4.10 (or
    required to be set forth on Schedule 4.10) is in
    full force and effect and there exists no (i) default or
    event of default by Rand or any other party to any such contract
    with respect to any term or provision of any such contract or
    (ii) event, occurrence, condition or act (including the
    consummation of the transactions contemplated hereby) which,
    with the giving of notice, the lapse of time or the happening of
    any other event or condition, would give rise to a right of
    termination or become a default or event of default by Rand or
    any other party thereto, with respect to any term or provision
    of any such contract. Rand has not violated any of the material
    terms or conditions of any contract set forth on
    Schedule 4.10 (or required to be set forth on
    Schedule 4.10) and all of the covenants to be
    performed by any other party thereto have been fully performed
    in all material respects. Rand has delivered to Purchaser true
    and complete copies, including all amendments, of each contract
    set forth on Schedule 4.10 (or required to be set
    forth on Schedule 4.10).

 

		
	
    4.11  
	
    Litigation

 

    Schedule 4.11 is a true and complete list of all
    actions, suits, proceedings at law or in equity, arbitration or
    other proceedings by a Governmental or Regulatory Authority or
    any other Person, or to the knowledge of Rand threatened against
    or affecting Rand. There is no action, suit, claim, demand,
    arbitration or other proceeding or investigation, administrative
    or judicial, pending or, to Rand’s knowledge, threatened
    against or affecting Rand or any of its assets, which, if
    adversely determined or resolved, would have a Material Adverse
    Effect (as defined in Section 6.4) on Rand, or on
    any provisions of, or the validity of, or rights under, any
    leases or other operating agreements, licenses, Permits or
    grants of authority of Rand. Rand has not received any notice
    that Rand is the subject of any governmental investigation and
    Rand is not subject to, nor is it or has it been in default with
    respect to, any Order, writ, injunction or decree of any court,
    or of any federal, state, local or other governmental
    department, commission, board, bureau, agency or
    instrumentality, domestic or foreign. Schedule 4.11
    indicates which of the matters listed are covered by valid
    insurance and the extent of such coverage.

 

		
	
    4.12  
	
    Insurance

 

    Schedule 4.12 is a true and correct list of all the
    policies of insurance (including bonding) covering the business,
    properties, assets and employees of Rand (including
    self-insurance) presently in force (including as to each
    (i) risk insured against, (ii) name of carrier,
    (iii) policy number, (iv) amount of coverage,
    (v) amount of premium, (vi) expiration date, and
    (vii) the property, if any, insured, indicating as to each
    whether it insures on an “occurrence” or a
    “claims made” basis). All of the insurance policies
    set forth on Schedule 4.12 are in full force and
    effect and all premiums, retention amounts and other related
    expenses due have been paid, and Rand is otherwise in compliance
    in all material respects with the terms and provisions of such
    policies. Rand is not in default under any of the insurance
    policies set forth on Schedule 4.12 (or required to
    be set forth on Schedule 4.12) and there exists no
    event, occurrence, condition or act (including the sale of the
    Shares hereunder) which, with the giving of notice, the lapse of
    time or the happening of any other event or condition, would
    become a default thereunder. Rand has not received any notice of
    cancellation or non-renewal of any such policy or arrangement
    nor, to the knowledge of Rand has the termination of any such
    policies or arrangements been threatened, and there exists no
    event, occurrence, condition or act (including the sale of the
    Shares hereunder) which, with the giving of notice, the lapse of
    time or the happening of any other event or condition, would
    entitle any insurer to terminate or cancel any such policies.
    Schedule 4.12 also sets forth a list of all pending
    claims and the claims history for Rand since December 31,
    2002 (including with respect to insurance obtained but not
    currently maintained). Rand has not been refused any issuance by
    any insurance carrier to which it has applied for insurance
    during the last five (5) years.

    

 

		
	
    4.13  
	
    Absence
    of Certain Developments

 

    (a) Since June 30, 2006, Rand has conducted its
    business in the ordinary and regular course consistent with past
    practice. Since such date, there has not been any Material
    Adverse Change. Except as set forth on
    Schedule 4.13, since June 30, 2006, Rand has
    not:

 

    (i) amended or restated its Charter Documents;

 

    (ii) authorized for issuance, issued, sold, delivered or
    agreed or committed to issue, sell or deliver (A) any
    capital stock of, or other equity or voting interest in Rand or
    (B) any securities convertible into, exchangeable for, or
    evidencing the right to subscribe for or acquire either
    (1) any ownership interest of, or other equity or voting
    interest in, Rand, or (2) any securities convertible into,
    exchangeable for, or evidencing the right to subscribe for or
    acquire, any shares of the capital stock of, or other equity or
    voting interest in, Rand;

 

    (iii) declared, paid or set aside any dividend or made any
    distribution with respect to, or split, combined, redeemed,
    reclassified, purchased or otherwise acquired directly, or
    indirectly, any ownership interest of, or other equity or voting
    interest in, Rand, or made any other change in the capital
    structure of Rand;

 

    (iv) increased the compensation payable (including, but not
    limited to, wages, salaries, bonuses or any other remuneration)
    or to become payable to any officer, employee or agent, or any
    director of Rand other than in the ordinary course of business;

 

    (v) made any bonus, profit sharing, pension, retirement or
    insurance payment, distribution or arrangement to or with any
    officer, employee, agent, or any director of Rand;

 

    (vi) entered into, materially amended or become subject to
    any contract of a type described in Section 4.10
    outside the ordinary course of business;

 

    (vii) incurred, assumed or modified any indebtedness,
    except indebtedness incurred, assumed or modified in the
    ordinary course of business consistent with past practice;

 

    (viii) permitted any of its properties or assets to be
    subject to any Encumbrance (other than Permitted Encumbrances);

 

    (ix) sold, transferred, leased (including any
    sale-leaseback transaction), licensed or otherwise disposed of
    any assets or properties except for (A) sales of inventory
    in the ordinary course of business consistent with past practice
    and (B) leases or licenses entered into in the ordinary
    course of business consistent with past practice;

 

    (x) acquired any business, by merger or consolidation,
    purchase of substantial assets or equity interests, or by any
    other manner, in a single transaction or a series of related
    transactions, or entered into any contract, letter of intent or
    similar arrangement (whether or not enforceable) with respect to
    the foregoing;

 

    (xi) made any capital expenditure or commitment therefore
    in excess of Ten Thousand Dollars ($10,000.00) or otherwise
    acquired any assets or properties or entered into any contract,
    letter of intent or similar arrangement (whether or not
    enforceable) with respect to the foregoing;

 

    (xii) entered into, materially amended or became subject to
    any joint venture, partnership, strategic alliance,
    members’ agreement, co-marketing, co-promotion,
    co-packaging, joint development or similar arrangement;

 

    (xiii) written-off as uncollectible any notes or accounts
    receivable, except write-offs in the ordinary course of business
    consistent with past practice charged to applicable reserves;

 

    (xiv) cancelled or waived any claims or rights of
    substantial value;

 

    (xv) made any material change in any method of accounting
    or auditing practice;

 

    (xvi) paid, discharged, settled or satisfied any claims,
    liabilities or obligations (absolute, accrued, asserted or
    unasserted, contingent or otherwise), other than payments,
    discharges or satisfactions in the

    

 

    ordinary course of business and consistent with past practice or
    liabilities reflected or reserved against in the Audited
    Financial Statements;

 

    (xvii) established, adopted, entered into, amended or
    terminated any Plan or any collective bargaining, thrift,
    compensation or other plan, agreement, trust, fund, policy or
    arrangement for the benefit of any directors, officers or
    employees;

 

    (xviii) conducted its cash management customs and practices
    (including the collection of receivables and payment of
    payables) other than in the ordinary course of business
    consistent with past practice;

 

    (xix) entered into any contract with respect to (whether or
    not binding), or otherwise committed or agreed, whether or not
    in writing, to do any of the foregoing;

 

    (xx) elected, revoked or amended any Tax election, settled
    or compromised any claim or assessment with respect to Taxes,
    executed any closing agreement, executed or consented to any
    waivers extending the statutory period of limitations with
    respect to the collection or assessment of any Taxes, or amended
    any Tax Returns.

 

		
	
    4.14  
	
    Compliance
    with Laws

 

    Rand is in compliance with all Laws and Ordinances and Orders
    applicable to it the failure with which to comply could
    reasonably be expected individually or in the aggregate to have
    a Material Adverse Effect on Rand. Rand has not been cited,
    fined or otherwise notified of any asserted past or present
    failure to comply with any Laws and Ordinances and no proceeding
    with respect to any such violation is pending.

 

		
	
    4.15  
	
    Environmental
    Matters

 

    (a) Definitions.  For purposes of
    this Section 4.15:

 

    (i) “Contaminant” means hazardous
    substances as that term is defined in the Comprehensive
    Environmental Response, Compensation, and Liability Act,
    42 U.S.C. § 9601 et seq., as amended
    (“CERCLA”), and any other individual or class
    of pollutants, contaminants, toxins, chemicals, substances,
    wastes or materials in their solid, liquid or gaseous phase,
    defined, listed, designated, regulated, classified or identified
    under any Environmental Law (defined below). This definition of
    Contaminant includes asbestos and asbestos-containing materials,
    petroleum or petroleum-based products or derivatives thereof,
    radioactive materials, flammable explosives and polychlorinated
    biphenyls.

 

    (ii) “Environmental Laws” means all
    applicable foreign, federal, state and local Laws, codes,
    policies and ordinances, and binding determinations, orders,
    permits, licenses, injunctions, writs, decrees or rulings of any
    governmental or judicial authority, relative to or that govern
    or purport to govern air quality, soil quality, water quality,
    wetlands, natural resources, solid waste, hazardous waste,
    hazardous or toxic substances, pollution or the protection of
    public health, human health or the environment, including, but
    not limited to, CERCLA, the Hazardous Materials Transportation
    Act (49 U.S.C. § 1801 et seq.), the Federal Water
    Pollution Control Act (33 U.S.C. § 1251 et seq.),
    the Safe Drinking Water Act (42 U.S.C. § 300f),
    the Resource Conservation and Recovery Act (42 U.S.C.
    § 6901 et seq.) (“RCRA”), the Clean
    Air Act (42 U.S.C. § 7401 et seq.), the
    Toxic Substances Control Act (15 U.S.C. § 2601 et
    seq.), the Federal Insecticide, Fungicide, and Rodenticide Act
    (7 U.S.C. § 136 et seq.), and the Occupational
    Safety and Health Act of 1970 (29 U.S.C. § 651 et
    seq.), as each of these laws are amended from time to time and
    any analogous or related statutes and regulations whether
    currently in existence or hereafter enacted.

 

    (iii) “Release” means any release,
    spill, emission, leaking, disposing, discharge, leaching, or
    migration into any media, whether soil, surface water, ground
    water, building interior or components, air or any combination
    of the foregoing.

 

    (iv) “Remedial Action” means any
    action to: (A) investigate, study, clean up, remove, treat,
    dispose of or in any other way address any Contaminant;
    (B) prevent the Release or threatened Release, or minimize
    the further Release of any Contaminant; and (C) bring the
    existing operations of the business in full compliance with
    Environmental Laws.

    

 

    (b) Assets and Operations in
    Compliance.  Rand has not allowed any
    Contaminant to be used, manufactured, stored, placed, processed
    or released on or off-site of the Leased Property, in violation
    of any Environmental Law. To its knowledge, the Leased Property
    and Rand are in compliance with all Environmental Law.

 

    (c) No Orders for Remedial
    Action.  Rand is not the subject of any
    investigation, notice, order or agreement, or to the knowledge
    of Rand, threatened investigation regarding any remedial action
    or the Release, threatened Release or presence of a Contaminant.

 

    (d) No Contingent
    Liabilities.  Neither Rand nor to the
    knowledge of Rand, any Person or entity for whose conduct Rand
    may be held responsible, is subject to any contingent liability
    in connection with any Remedial Action or the Release,
    threatened Release, or presence of any Contaminants.

 

    (e) All Environmental, Health and Safety
    Authorization Obtained.  To its knowledge,
    Rand has obtained all environmental, health and safety licenses,
    permits, authorizations, consents, approvals, exemptions,
    registrations and certificates required under all applicable
    Environmental Laws (“Environmental Licenses”)
    and made all notifications and filings necessary for the full
    operation of the business of Rand. All such Environmental
    Licenses are in full force and effect, in good standing and Rand
    has made all notifications, filings and applications for renewal
    of such Environmental Licenses on a timely basis, where
    necessary. To its knowledge, Rand is, and at all times has been,
    in compliance with the terms and conditions of all Environmental
    Licenses. Rand has no knowledge of any fact or facts which would
    render invalid or require a material alteration in any
    Environmental License held or used in the business.

 

    (f) No Possible Claims Under Environmental
    Law.  To its knowledge, Rand is not aware of
    any past or present events, conditions, circumstances,
    activities, practices, incidents, actions or plans which have
    given or may give rise to any liability or otherwise form the
    basis of any claim, suit, action, demand, proceeding, penalty,
    fine, hearing, notice of violation, directive or requirement to
    undertake any Remedial Action under any Environmental Law,
    common law or otherwise, relating to the Leased Property, Rand
    or any of its Affiliates and predecessors or any Person or
    entity for whose conduct Rand is or may be held responsible.

 

    (g) All Documents Relative to Environmental Issues
    Provided.  Rand has provided to Purchaser true
    and complete copies of all material written communications, all
    reports, audits, assessments, studies, analyses and data
    (completed or uncompleted) in the possession of, initiated by or
    authorized by Rand or its Affiliates, or requested or ordered by
    any governmental authority pertaining to any Environmental Law,
    Contaminant or human health and safety at or involving any of
    the Leased Property or the business (the “Environmental
    Reports”). Each of the Environmental Reports is
    identified on Schedule 4.15(g).  

 

		
	
    4.16  
	
    Labor
    Relations

 

    Except as set forth on Schedule 4.16, Rand is not a
    party to or bound by any collective bargaining agreement or any
    other agreement with a labor union. Except as set forth on
    Schedule 4.16, the employment by Rand of any Person
    may be terminated at will by Rand, without penalty or liability
    of any kind other than accrued vacation pay, sick pay, other
    employee benefits as provided by Rand’s policies and
    procedures or by applicable Law or regulations. There is no
    pending or, to the knowledge of Rand, threatened labor dispute,
    strike or work stoppage which affects or which may affect the
    business of Rand or which may interfere with its continued
    operation. Rand is not aware that any executive or key employee
    or group of employees has any plans to terminate his or her
    employment with Rand or that any executive or key employee or
    group of employees has indicated any of them will not work for
    Purchaser or Rand following the Closing Date. Within the past
    three (3) years, neither Rand nor any subsidiary has
    implemented any plant closing or mass layoff of employees as
    those terms are defined in the Worker Adjustment and Retraining
    Notification Act of 1988, as amended, and the regulations issued
    thereunder, or any similar foreign, state or local law,
    regulation or ordinance (“WARN Act”). Within
    ninety (90) days preceding the date of this Agreement, no
    employee of Rand has suffered an “employment loss”
    with Rand, as such term is defined in the WARN Act. There are no
    active, pending or, to Rand’s knowledge, threatened
    administrative or judicial proceedings under Title VII of
    the Civil Rights Act of 1964, the Age Discrimination in
    Employment Act, the Fair Labor Standards Act, the Occupational
    Safety and Health Act, the National Labor Relations Act or any
    Law and Ordinance (including common law) relating to the
    employees of Rand. Rand does not have any Equal Employment
    Opportunity Commission charges or other claims of employment
    discrimination pending or, to Rand’s knowledge,

    

 

    threatened against it. No wage and hour department investigation
    has been made of Rand. Rand has not received notice that there
    are any occupational health and safety claims against it.

 

		
	
    4.17  
	
    Employee
    Benefits

 

    (a) Detailed Statement of Compensation, Benefits and
    Other Commitments.  Except for the plans,
    policies, practices or arrangements listed on
    Schedule 4.17, a true and correct copy of each of
    which has been delivered to Purchaser or its respective counsel,
    which schedule includes all plans, policies, practices and
    arrangements sponsored or maintained by a Controlled Group (as
    defined below) member in the past or present (hereinafter
    referred collectively to as the “Plans” and
    individually as a “Plan”), no member of the Controlled
    Group, directly or indirectly, maintains, sponsors or has any
    obligation or liability to present or former employees, officers
    or independent contractors with respect to any “employee
    benefit plan,” as defined in Section 3(3) of the
    Employee Retirement Income Security Act of 1974, as amended
    (“ERISA”), any fringe benefit plan, any equity
    compensation plan or arrangement (including, without limitation,
    stock options, restricted stock and stock purchase plans), any
    plan, policy or arrangement for the provision of executive
    compensation, incentive benefits, bonuses or severance benefits,
    vacation pay, insurance, tuition reimbursement, any employment
    contract, collective bargaining agreement, deferred compensation
    agreement, cafeteria plan (within the meaning of
    Section 125 of the Code) or split-dollar insurance
    arrangement, or any other plan, policy, practice or arrangement
    for the provision of employee benefits. For the purposes of this
    Agreement, “Controlled Group” shall mean Rand, and any
    Person, entity or trade or business, whether or not
    incorporated, which is required to be aggregated with Rand under
    Section 414(b), (c), (m) or (o) of the Code.

 

    (b) No ERISA Obligations.  No Plan
    is, and at any time within the ten (10) year period ending
    on the Closing Date, no member of the Controlled Group has had
    an obligation to contribute to a Plan with is subject to
    Title IV of ERISA, no Plan is a part of a “multiple
    employer welfare arrangement” within the meaning of
    Section 3(40) of ERISA, no Plan is a “multiemployer
    plan” within the meaning of Section 4001(a)(3) of
    ERISA or Section 414(f) of the Code or a multiemployer plan
    described in clauses (i) and (ii) of
    Section 3(37)(A) of ERISA.

 

    (c) Plan Obligations.  With respect
    to each Plan identified on Schedule 4.17.

 

    (i) No Actions, Suits or Claims Against
    Plan.  The Plan, each Controlled Group Member,
    each employee of any Controlled Group member and, to the
    knowledge of Rand, the other fiduciaries and administrators of
    the Plan have at all times complied in all material respects
    with applicable requirements of Law (including, without
    limitation, the Code and ERISA) that relate to the Plan and,
    with respect to the Plan, there are no ongoing audits or
    investigations by any governmental agency. There are no actions,
    suits or claims (other than routine claims for benefits) pending
    or threatened against the Plan, the assets of the Plan, a
    Controlled Group member, any employee, officer or director of a
    Controlled Group member or, to the knowledge of Rand, against
    any other trustee, fiduciary or administrator of the Plan. No
    trust associated with the Plan has earned any unrelated business
    taxable income that is subject to taxation under
    Section 511 of the Code;

 

    (ii) Compliance of Plan with
    COBRA.  If the Plan provides health, accident
    or medical benefits, (A) the Plan sponsor and administrator
    have complied in all material respects with the requirements of
    Part 6 of Subtitle B of Title I of ERISA and
    Section 4980B of the Code (herein collectively referred to
    as “COBRA”) and (B) the Plan does not
    provide for non-terminable or non-alterable health, accident,
    medical or life benefits for employees, former employees,
    dependents, beneficiaries or retirees, except as otherwise
    required by COBRA, and then only to the extent the Person pays
    the “applicable premium” (as defined in
    Section 4980B(f)(4) of the Code) for such coverage, or
    otherwise pays the full cost of such coverage;

 

    (iii) Financial Commitments Fully Funded for
    Plan.  Full payment has been made of all
    amounts which a Controlled Group member is required, under
    applicable law or under the Plan, to have paid as a contribution
    or a benefit. The liability of each Controlled Group member with
    respect to each Plan has been fully funded based on reasonable
    and proper actuarial assumptions, has been fully insured, or has
    been fully reserved for on its financial statements. No changes
    have occurred or are expected to occur that would cause a
    material increase in the cost of providing benefits under the
    Plan; and

    

 

    (iv) No New Obligations Created by this
    Transaction.  The consummation of the
    transactions contemplated by this Agreement will not
    (A) entitle any current or former employee, officer or
    director of Rand to severance pay, unemployment compensation or
    any other similar payment, (B) accelerate the time of
    payment or vesting under the Plan, (C) increase the amount
    of compensation due any such employee, officer or director,
    (D) directly or indirectly cause Rand to transfer or set
    aside any assets to fund or otherwise provide for the benefits
    under the Plan for any current or former employee, officer or
    director, or (E) result in any non exempt prohibited
    transaction described in ERISA Section 406 or
    Section 4975 of the Code.

 

    (d) Compliance of Qualified Pension Plan with
    ERISA.  With respect to each Plan identified
    on Schedule 4.17 that is an “employee pension
    benefit plan,” as defined in Section 3(2) of ERISA and
    is funded or required to be funded under ERISA or is intended to
    be qualified under Section 401(a) of the Code:

 

    (i) the Plan and any associated trust operationally comply
    with the applicable requirements of Section 401(a) of the
    Code,

 

    (ii) the Plan and any associated trust have been amended to
    comply with all such requirements as currently in effect, other
    than those requirements for which a retroactive amendment can be
    made within the “remedial amendment period” available
    under Section 401(b) of the Code (as extended under
    Treasury Regulations and other Treasury pronouncements upon
    which taxpayers may rely),

 

    (iii) the Plan and any associated trust have received a
    favorable determination letter from the Internal Revenue Service
    stating that the Plan qualifies under Section 401(a) of the
    Code, that the associated trust qualifies under
    Section 501(a) of the Code and, if applicable, that any
    cash or deferred arrangement under the Plan qualifies under
    Section 401(k) of the Code, unless the Plan was first
    adopted at a time for which the above-described “remedial
    amendment period” has not yet expired, and

 

    (iv) no contribution made to the Plan is subject to an
    excise tax under Section 4972 of the Code.

 

    (v) If the Plan is subject to the funding requirements of
    Section 412, of the Code (A) such requirements have
    been satisfied with respect to the Plan in all respects,
    (B) no “accumulated funding deficiency” (within
    the meaning of Section 302 of ERISA) exists with respect to
    the Plan, whether or not waived, (C) no request for a
    waiver under Section 412(d) of the Code has been made with
    respect to the Plan, (D) no lien has been imposed against a
    Controlled Group member under Section 412(n) of the Code,
    and (E) the “accumulated benefit obligation” of
    Controlled Group members with respect to the Plan (as determined
    in accordance with Statement of Accounting Standards
    No. 87, “Employers’ Accounting for
    Pensions”) does not exceed the fair market value of Plan
    assets.

 

    (e) Good Faith Compliance of Non-Qualified Pension
    Plans.  Each Plan that is a “nonqualified
    deferred compensation plan” subject to Section 409A of
    the Code has been operating in good faith compliance with
    Section 409A of the Code and guidance of the Internal
    Revenue Service provided thereunder.

 

    (f) Delivery of Plans.  Rand has
    delivered or caused to be delivered to Purchaser or
    Purchaser’s counsel true and correct copies of the
    following with respect to the Plan:

 

    (i) A copy of the Plan and amendments thereto to the date
    hereof;

 

    (ii) A copy of each trust agreement, insurance or annuity
    contract and any other document pertaining to the Plan funding
    or the investment of Plan assets, including all amendments to
    such documents to the date hereof;

 

    (iii) The most recent determination letter issued by the
    IRS with respect to the Plan for which a determination letter
    has been issued and any pending determination letter request
    with respect to the Plan;

 

    (iv) The three (3) most recent Form 5500 series
    annual return/reports, including all applicable schedules and
    audited financial statements, filed with respect to the Plan (if
    required by ERISA);

 

    (v) The most recent actuarial valuation report and asset
    valuation report for the Plan (if required by ERISA); and

    

 

    (vi) A copy of the latest summary plan description (within
    the meaning of Section 101(a)(1) of ERISA) of the Plan (if
    required by ERISA) and each subsequent summary of material
    modifications (within the meaning of Section 101(b)(2) of
    ERISA) thereto, which have been provided to employees and filed
    with the Department of Labor (if required by ERISA).

 

		
	
    4.18  
	
    Affiliate
    Transactions

 

    Except as set forth on Schedule 4.18, no officer,
    director, employee or stockholder of Rand or Affiliate of any
    such Person, or any immediate family member thereof, is a party
    to any agreement, contract, commitment or transaction with Rand
    or has any interest in any property, real or personal or mixed,
    tangible or intangible, used in or pertaining to the business of
    Rand (excluding items of personal property that are personal in
    nature). “Affiliate” means, with respect to any
    particular Person, any Person controlling, controlled by or
    under common control directly or indirectly by such Person. Rand
    is not indebted to Retsky. Following the Closing Date, Purchaser
    and Rand shall not have any liability or obligation for such
    agreements (whether or not such liability or obligation arose
    prior to or after the Closing Date).

 

		
	
    4.19  
	
    Disclosure:
    Accuracy and Completeness of all Documents

 

    This Agreement (including the financial statements referred to
    in Section 4.3 (including the footnotes thereto)),
    any Schedule, Exhibit or certificate delivered pursuant to this
    Agreement) or any document or statement in writing, which has
    been supplied to Purchaser or its Representatives by or on
    behalf of Retsky, Rand or any of their respective
    Representatives in connection with the transactions contemplated
    by this Agreement, do not contain any untrue statement of a
    material fact, or omit any statement of a material fact
    necessary to make the statements contained herein or therein not
    misleading.

 

		
	
    4.20  
	
    Inventory:
    Validity

 

    The inventory of Rand consists only of items of a quality and
    quantity usable and saleable in the ordinary course of business,
    consistent with past practice. Items of below-standard quality
    and items not previously readily saleable in the ordinary course
    of business have been written down in value in accordance with
    GAAP to estimated net realizable market values.

 

		
	
    4.21  
	
    Restricted
    Securities (Regulations and Conditions)

 

    Retsky understands that the Stock Consideration to be received
    has not been, and will not be, registered under the Securities
    Act or any state securities laws and are being offered and sold
    in reliance upon federal and state exemptions for transactions
    not involving a public offering, the availability of which
    depends upon, among other things, the bona fide nature of the
    investment intent and the accuracy of Retsky’s
    representations as expressed herein. Retsky understands that
    shares issued as the Stock Consideration are “restricted
    securities” under applicable U.S. federal and state
    securities laws and that, pursuant to these laws, the holder of
    such shares may be required to hold the securities indefinitely
    unless they are registered with the Securities and Exchange
    Commission (“SEC”) and qualified by state
    authorities, or an exemption from such registration and
    qualification requirements is available. Retsky understands and
    acknowledges that (i) Purchaser has no obligation to
    register or qualify such shares for resale, (ii) the Stock
    Consideration is an illiquid investment the disposition of which
    is subject to limitations under applicable federal and state
    securities laws and the restrictions contained in this
    Agreement, (iii) if an exemption from registration or
    qualification is available, it may be conditioned on various
    requirements, including, but not limited to, the time and manner
    of sale, the holding period for the Stock Consideration, and on
    requirements relating to Purchaser which are outside of
    Retsky’s control, and which Purchaser is under no
    obligation and may not be able to satisfy and (iv) the
    following legend will be affixed to the share certificates:

 

    The securities represented by this certificate are subject to
    restrictions contained in (i) that certain Stock Purchase
    Agreement (“Stock Purchase Agreement”), dated
    September 8, 2006 between the issuer and Rand Medical
    Billing, Inc. and Marvin Retsky and (ii) the Escrow
    Agreement delivered in connection with the Stock Purchase
    Agreement. A copy of the Stock Purchase Agreement and Escrow
    Agreement will be furnished without charge by the issuer to the
    holder hereof within five (5) days of written request. 

    

 

    The shares represented by the within certificate have not
    been registered under the Securities Act of 1933, as amended.
    The shares are subject to restrictions on transferability and
    resale and may not be transferred or resold except as permitted
    under the Securities Act of 1933, as amended and applicable
    state securities laws, pursuant to a registration or exemption
    therefrom.

 

		
	
    4.22  
	
    Absence
    of Undisclosed Liabilities

 

    Rand does not have any liability (whether known or unknown,
    whether asserted or unasserted, whether absolute or contingent,
    whether accrued or unaccrued, whether liquidated or
    unliquidated, and whether due or to become due, including any
    liability for Taxes) except for (i) liabilities set forth
    on the face of the Most Recent Balance Sheet and
    (ii) current liabilities incurred in the ordinary course of
    business since the Most Recent Balance Sheet.

 

		
	
    4.23  
	
    Brokerage
    and Finder’s Fees

 

    Except as set forth on Schedule 4.23, neither Rand
    nor Retsky has incurred any liability to any broker, finder or
    agent for any brokerage fees, finder’s fees, or commissions
    with respect to the transactions contemplated by this Agreement.
    The agreement, dated August 31, 2000, with Annette Anflick
    (“Anflick”), wherein Anflick was promised a portion of
    the proceeds from a sale of the business of Rand is a personal
    obligation of Retsky.

 

		
	
    4.24  
	
    Bank
    Accounts

 

    Schedule 4.24 is a true and correct list of the name
    of each bank, savings and loan, or other financial institution
    in which Rand has an account or safe deposit box, the names of
    all persons authorized to draw on each account or to have access
    to each box, the number of signatures required to be given for a
    withdrawal and a description of the type of account.

 

		
	
    4.25  
	
    List of
    Employees

 

    Schedule 4.25 is a true and correct list of all
    employees of Rand (as used in this Agreement, the term
    “employees” includes employees, salespersons,
    consultants, agents, sales representatives and all other persons
    associated with Rand whose current annual rate of fixed
    compensation exceeds Twenty Thousand Dollars ($20,000)), and
    their accrued vacation and sick pay as of the date hereof. A
    true, correct and complete copy of each written employment
    contract and a description of each oral employment agreement
    with any employee has been delivered to Purchaser or their
    respective counsel. Rand has no consultants or independent sales
    representatives, except as listed on
    Schedule 4.25.  

 

		
	
    4.26  
	
    List of
    Customers

 

    Schedule 4.26 lists all of the customers of Rand for
    each of the two most recent fiscal years and sets forth opposite
    the name of each such customer the percentage of net revenue
    attributable to such customer.

 

		
	
    4.27  
	
    HIPAA
    Compliance

 

    Rand is a “health care clearinghouse” and a
    “covered entity” as those terms are defined and used
    in Subpart F (Administrative Simplification) of the Health
    Insurance Portability and Accountability Act of 1996, P.L.
    104-191, and the related regulations contained in 45 C.F.R.
    Parts 160 and 164, as amended (collectively, the
    “Privacy and Security Regulations”), the
    regulations contained in 45 C.F.R. Parts 160 and 162, as
    amended (collectively, the “Transaction
    Regulations”). Rand is in full compliance with the
    Privacy and Security Regulations, the Transaction Regulations
    and all other Laws relating to the privacy, security and
    transmission of health information (collectively,
    “Health Information Laws”) with regard to its
    operations and the services it provides and with regard to any
    and all health plans maintained for the benefit of Rand’s
    employees. Promptly upon Rand’s receipt of a request from
    Purchaser, Rand shall provide copies of policies and procedures
    and any and all other materials related to compliance with the
    Privacy and Security Regulations and the Transaction
    Regulations. To the extent required under the Privacy and
    Security Regulations, Rand is a party to compliant business
    associate agreements and trading partner agreements with all
    appropriate parties in accordance with the Privacy and Security
    Regulations. The format

    

 

    and transmission of information in the course of the
    transactions conducted by Rand meets the standards set forth and
    referenced in the Transaction Regulations. Rand has not received
    any complaint or other notice or inquiry from any source of any
    failure to meet the requirements of any Health Information Laws.

 

		
	
    4.28  
	
    False
    Claims Act Compliance

 

    Rand has not knowingly presented, or caused to be presented, a
    false or fraudulent claim for payment to any governmental health
    insurance program or other third-party payor. Rand has not
    violated any federal or state laws governing the submission of
    claims for payment to governmental
    and/or
    non-governmental payors, including, without limitation, the
    statutes codified at 18 U.S.C. 1347 and 31 U.S.C. 3729.

 

		
	
    4.29  
	
    Compliance
    with Securities Laws

 

    Neither Retsky nor Rand has acquired, or agreed to acquire,
    directly or indirectly, by purchase or otherwise, any voting
    securities, or direct or indirect rights to acquire voting
    securities, of Purchaser. To the knowledge of Rand, no employee,
    officer, director or stockholder of Rand has acquired, or agreed
    to acquire, directly or indirectly, by purchase or otherwise,
    any voting securities or direct or indirect rights to acquire
    voting securities of Purchaser. Retsky acknowledges and agrees
    that in connection with the transactions contemplated by this
    Agreement he is aware of material, non-public information
    regarding Purchaser. Retsky has complied with and will comply
    with all federal securities laws, applicable state securities
    laws and the rules of the American Stock Exchange relating to
    the offer and sale of securities of Purchaser.

 

		
	
    4.30  
	
    List of
    Outstanding Purchase Orders

 

    Schedule 4.30 is a true and complete list as of the
    date hereof of all purchase orders under which Rand is or will
    become obligated to pay any particular Person.

 

		
	
    4.31  
	
    List of
    Indebtedness

 

    Schedule 4.31 is a true and complete list of all
    indebtedness of Rand including, without limitation, trade
    accounts payable owed or to be owed by Rand, including a
    description of all properties or assets pledged, mortgaged or
    otherwise hypothecated as security.

 

		
	
    4.32  
	
    Statement
    of Investment Intent

 

    Retsky is acquiring the Stock Consideration for his own account
    for investment purposes and not with a view to the distribution
    thereof and does not have any intention of participating
    directly or indirectly in any redistribution or resale of any
    portion of the Stock Consideration.

 

		
	
    4.33  
	
    Cash

 

    As of September 30, 2006, the cash of Rand will be One
    Hundred Thousand Dollars ($100,000). From September 30,
    2006 until the Closing the cash of Rand and all proceeds from
    the accounts receivables will only be used by Rand and Retsky to
    operate the business of Rand in the ordinary course consistent
    with past practice. In furtherance of the foregoing, Retsky
    covenants and agrees that he will not remove any cash from Rand
    or permit Rand to make any distribution of cash to any
    shareholder. The excess cash of Rand, if any, collected during
    the Collection Period will be determined and distributed to
    Retsky in accordance with Section 2.6 of this Agreement.

 

		
	
    4.34  
	
    FIRPTA

 

    Retsky is not a non-resident alien individual, foreign person,
    or foreign corporation for the purposes of the Code
    Sections 871, 882 or 1445.

 

		
	
    4.35  
	
    Casualty
    Occurrences

 

    Schedule 4.35 is a true and correct list of all
    occurrences pertaining to Rand during the last five
    (5) years including any injury or damage to persons or
    property as well as any defects or alleged defects in any of the
    products

    

 

    or services of Rand. All such occurrences listed on
    Schedule 4.35 are fully and adequately covered by
    paid-for insurance.

 

		
	
    4.36  
	
    Schedule
    of Government Reports

 

    Schedule 4.36 is a true and correct list, and Rand
    has furnished or made available to Purchaser or its counsel
    complete and correct copies of all reports, if any, filed on
    behalf of or with respect to Rand, since January 1, 2003,
    with the Department of Labor, Equal Employment Opportunity
    Commission, Federal Trade Commission, Department of Justice,
    Occupational Safety and Health Administration, Internal Revenue
    Service (other than Tax Returns and standard forms relating to
    compensation or remuneration of employees), Environmental
    Protection Agency, Securities and Exchange Commission or Pension
    Benefit Guarantee Commission, or any similar state agency.

 

    ARTICLE V

    

 

    REPRESENTATIONS
    AND WARRANTIES OF PURCHASER
    

 

    Purchaser represents and warrants to, Retsky that the statements
    contained in this Article V are correct and complete
    as of the date of this Agreement and will be correct and
    complete as of the Closing Date (as though made then and as
    though the Closing Date were substituted for the date of this
    Agreement throughout this Article V), as follows:

 

		
	
    5.1  
	
    Organization,
    Power and Authority; Stock Consideration

 

    Purchaser is a corporations duly organized, validly existing and
    in good standing under the laws of the State of Delaware and has
    all requisite power and authority to enter into this Agreement
    and all other agreements contemplated hereby and to perform its
    obligations hereunder and thereunder. The Stock Consideration
    when issued, sold and delivered in accordance with the terms and
    conditions set forth in this Agreement, will be validly issued,
    fully paid and nonassessable. The Stock Consideration will, when
    issued, be authorized for listing on AMEX or such other national
    securities exchange or stock market on which the shares of
    Purchaser’s common stock is listed for trading at such time.

 

		
	
    5.2  
	
    Due
    Authorization; Binding Obligation

 

    The execution, delivery and performance of this Agreement and
    all other agreements contemplated hereby and the consummation of
    the transactions contemplated hereby have been duly authorized
    by all necessary corporate action of Purchaser. This Agreement
    has been duly executed and delivered by Purchaser and is a valid
    and binding obligation of Purchaser enforceable in accordance
    with its terms, subject to applicable bankruptcy, insolvency and
    other similar laws affecting the enforceability of
    creditor’s rights generally, general equitable principles
    and the discretion of courts in granting equitable remedies.

 

		
	
    5.3  
	
    Consents
    and Approvals; No Violation

 

    Except for filings, permits, authorizations, consents and
    approvals as may be required under, and other applicable
    requirements of, the Securities Exchange Act of 1934 (the
    “Exchange Act”) and the Securities Act of 1933
    (the “Securities Act”) and AMEX, neither the
    execution, delivery or performance of this Agreement by
    Purchaser, nor the consummation by Purchaser of the transactions
    contemplated hereby, nor compliance by Purchaser with any of the
    provisions hereof will (i) conflict with or result in any
    breach of any provision of the Certificate of Incorporation or
    by-laws of Purchaser, (ii) require any filing with, or
    permit, authorization, consent or approval of, any governmental
    agency (except where the failure to obtain such permits,
    authorizations, consents or approvals or to make such filings
    would not have a Material Adverse Effect on Purchaser or would
    not, or would not be reasonably likely to, materially impair the
    ability of Purchaser to consummate the transactions contemplated
    hereby), (iii) result in a violation or breach of, 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 or acceleration) under, any of the terms,
    conditions or provisions of any note, bond, mortgage, indenture,
    guarantee, other evidence of indebtedness, lease, license,
    contract, agreement or other instrument or obligation to which
    Purchaser is a party or by which its

    

 

    properties or assets may be bound or (iv) violate any
    order, writ, injunction, decree, statute, rule or regulation
    applicable to Purchaser, or their respective properties or
    assets, except in the case of clauses (iii) and
    (iv) for violations, breaches or defaults which would not
    have a Material Adverse Effect on Purchaser, or would not, or
    would not be reasonably likely to, materially impair the ability
    of Purchaser to consummate the transactions contemplated hereby.

 

		
	
    5.4  
	
    SEC
    Reports and Financial Statements

 

    Purchaser has filed with the SEC, and by virtue of such filing
    has heretofore made available to Retsky, true and complete
    copies of, all forms, reports, schedules, statements and other
    documents filed or required to be filed by it and its
    subsidiaries since January 1, 2005 under the Exchange Act
    or the Securities Act, including Purchaser’s Annual Report
    on
    Form 10-KSB
    filed with the SEC on March 31, 2006 and Purchaser’s
    Definitive Proxy Statement on Schedule 14A filed with the
    SEC on April 20, 2006 (as such documents have been amended
    since the time of their filing, collectively, the “Orion
    SEC Documents”). As of their respective dates or, if
    amended, as of the date of the last amendment, the Orion SEC
    Documents, including, without limitation, any financial
    statements or schedules included therein (i) did not
    contain any untrue statement of a material fact or omit to state
    a material fact required to be stated therein or necessary in
    order to make the statements therein, in light of the
    circumstances under which they were made, not misleading and
    (ii) complied in all material respects with the applicable
    requirements of the Exchange Act and the Securities Act, as the
    case may be, and the applicable rules and regulations of the SEC
    thereunder. Each of the consolidated financial statements
    included in the Orion SEC Documents have been prepared from, and
    are in accordance with, the books and records of Purchaser
    and/or its
    consolidated subsidiaries, comply in all material respects with
    applicable accounting requirements and with the published rules
    and regulations of the SEC with respect thereto, have been
    prepared in accordance with GAAP applied on a consistent basis
    during the periods involved (except as may be indicated in the
    notes thereto) and fairly present in all material respects the
    consolidated financial position and the consolidated results of
    operations and cash flows (and changes in financial position, if
    any) of Purchaser and its consolidated subsidiaries as at the
    dates thereof or for the periods presented therein.

 

		
	
    5.5  
	
    Absence
    of Litigation

 

    There are no actions, suits, claims, governmental investigations
    or arbitration proceedings pending or, to Purchaser’s
    actual knowledge, threatened against or affecting Purchaser that
    question the validity or enforceability of this Agreement or any
    action contemplated herein.

 

		
	
    5.6  
	
    Brokerage
    and Finder’s Fees

 

    Purchaser has not, nor has any stockholder, officer, director or
    agent of Purchaser, incurred any liability to any broker, finder
    or agent for any brokerage fees, finder’s fees, or
    commissions with respect to the transactions contemplated by
    this Agreement.

 

		
	
    5.7  
	
    Capitalization

 

    Attached hereto as Schedule 5.7 is a table showing the
    authorized and issued capital stock of Purchaser, as of the date
    hereof, on a fully diluted basis. As of the date hereof,
    Purchaser does not have outstanding any interests or securities
    convertible or exchangeable for any of its capital stock or
    containing any profit participation features, and does not have
    outstanding any rights or options to subscribe for or to
    purchase its capital stock or any stock appreciation rights or
    phantom stock plans, except as set forth on Schedule 5.7.

 

    ARTICLE VI

    

 

    CONDITIONS
    PRECEDENT TO OBLIGATIONS OF PURCHASER
    

 

    The obligations of Purchaser under this Agreement are, at
    Purchaser’s option, subject to satisfaction of the
    following conditions at or prior to the Closing Date.

    

 

		
	
    6.1  
	
    Representations
    True

 

    The representations and warranties of Retsky and Rand contained
    in this Agreement or in any Schedule, Exhibit or certificate
    delivered pursuant to this Agreement shall be true, complete,
    and accurate in all material respects on as of the Closing Date
    to the same extent and with the same force and effect as if made
    on such date, except as affected by the transactions
    contemplated by this Agreement.

 

		
	
    6.2  
	
    All
    Consents Obtained

 

    All necessary approvals or consents required to be obtained by
    Rand and Retsky have been obtained from all Governmental or
    Regulatory Authorities and from any other Person or entity whose
    approval or consent is necessary to consummate the transactions
    contemplated under this Agreement.

 

		
	
    6.3  
	
    Performance
    of Obligations

 

    Retsky and Rand shall have duly performed all obligations,
    covenants and agreements in all respects and have complied with
    all terms and conditions applicable to Retsky or Rand under this
    Agreement to be performed and complied with on or before the
    Closing Date in all respects.

 

		
	
    6.4  
	
    No
    Litigation

 

    No suit, action, or other proceeding is threatened or pending
    before any court or Governmental or Regulatory Authority in
    which it will be or it is sought to restrain, prohibit or
    materially delay the consummation of the transactions
    contemplated by this Agreement or to obtain material damages or
    relief in connection with this Agreement or the consummation of
    the transactions contemplated by this Agreement, or which is
    likely to result in a Material Adverse Effect on Rand. For
    purposes of this Agreement, “Material Adverse
    Effect” or “Material Adverse Change”
    means any effect or change that would be materially adverse to
    the business, assets, condition (financial or otherwise),
    operating results, operations, or business prospects of a Party,
    or to the ability of any Party to consummate timely the
    transactions contemplated hereby.

 

		
	
    6.5  
	
    Receipt
    of Documents by Purchaser

 

    At the Closing, Purchaser shall have received:

 

    (a) Certificates Executed.  A
    certificate executed by Retsky and an officer of Rand certifying
    as to the fulfillment of the matters contained in
    Sections 6.1, 6.2, 6.3, 6.4, 6.6 6.7 and
    6.10.  

 

    (b) Copies of all Third Party
    Documents.  Copies of all third party
    (including landlord) and governmental consents, approvals,
    filings, releases and terminations required in connection with
    the consummation of the transactions contemplated herein;

 

    (c) Certificate of Good Standing with State
    Corporations Department.  A certificate of
    good standing from the Secretary of State of the State of
    California and from the Secretary of State of the respective
    states in which Rand is qualified to do business, in each case
    dated within ten (10) days of the Closing Date;

 

    (d) Certificate of Rand Board/Shareholder
    Approval.  Certificate from an officer of
    Rand, given by the office on behalf of Rand, certifying as to
    the (i) correctness and completeness of the Charter
    Document of Rand and (ii) accuracy of the resolutions of
    the board of directors and the shareholders of Rand regarding
    the approval of the Agreement and transactions by this Agreement;

 

    (e) Current Financial Reports.  The
    Most Recent Balance Sheet and the Interim Monthly Financial
    Statements;

 

    (f) Escrow Agreement.  Executed
    copies of the Escrow Agreement;

 

    (g) Share Certificates.  The
    original certificates for the Shares, duly endorsed in blank by
    Retsky or such other instruments of transfer as are reasonably
    acceptable to Purchaser;

    

 

    (h) Rand Counsel Legal Opinion.  A
    legal opinion of Harrington, Foxx, Dubrow & Canter, LLP
    as counsel to Rand and Retsky, reasonably satisfactory to
    Purchaser;

 

    (i) State Tax Clearance
    Certificates.  Tax clearance certificates or
    similar documents required by any state taxing authority;

 

    (j) Resignations.  Written
    resignations of all of the corporate officers and directors of
    Rand;

 

    (k) Non-Foreign Affidavit.  A
    non-foreign affidavit dated as of the Closing Date sworn under
    penalty of perjury and in form and substance required under
    Treasury Regulations issued pursuant to Section 1445 of the
    Code stating that Rand is not a “foreign person” as
    defined in Section 1445 of the Code;

 

    (l) Corporate Record Books.  True
    correct and complete corporate record books of Rand;

 

    (m) Employment Agreement.  An
    executed copy of the (i) employment agreement, with Retsky,
    the form of which is attached hereto as Exhibit B
    (the “Employment Agreement”) and (ii) employment
    agreements with certain other key employees of Rand, identified
    by Purchaser prior to the Closing;

 

    (n) Discharge of
    Indebtedness.  Evidence from Retsky or Rand
    satisfactory to Purchaser, that Retsky has paid or discharged:
    (i) all indebtedness owed by Rand to third party lenders,
    including any bank debt, and (ii) all indebtedness owed to
    Affiliates of Rand;

 

    (o) Termination of Agreements with
    Affiliates.  Evidence, satisfactory to
    Purchaser, that all such agreements required to be disclosed on
    Schedule 4.18 hereof have been terminated (except
    for the Standard Multi-Tenant Office Lease, dated
    January 3, 2006 between the Retsky Family Trust and Rand
    Medical Billing, Inc.); and

 

    (p) Miscellaneous.  Such other
    documents or instruments as Purchaser may reasonably request to
    effect the transactions contemplated hereby.

 

		
	
    6.6  
	
    Absence
    of Material Adverse Changes

 

    Rand shall not have experienced a Material Adverse Effect since
    the date of this Agreement, and no events, facts or
    circumstances shall have occurred which could reasonably be
    expected to result, individually or in the aggregate, in a
    Material Adverse Effect on Rand.

 

		
	
    6.7  
	
    Record
    and Books.

 

    Retsky has delivered to Purchaser all books and records of Rand
    relating to or reasonably required for the operation of the
    business of Rand, including, without limitation, copies of all
    contracts, financial, Tax and accounting records, files and
    records relating to employees, and all related correspondence.

 

		
	
    6.8  
	
    No
    Prohibition of Law

 

    There shall not be in effect any Order by a Governmental or
    Regulatory Authority restraining, enjoining or otherwise
    prohibiting, or any Law prohibiting, the consummation of the
    transactions contemplated by this Agreement.

 

		
	
    6.9  
	
    Financing
    Obtained by Purchaser

 

    Purchaser shall have obtained financing
    (“Financing”) for (i) its acquisition of
    the Shares, (ii) the payment of its transaction costs
    relating to, among other things, the acquisition of the Shares,
    and (iii) its working capital and business needs, all on
    terms satisfactory to Purchaser in its sole discretion. To the
    extent necessary, such Financing shall have been approved by the
    stockholders of Purchaser.

 

		
	
    6.10  
	
    Cash

 

    As of September 30, 2006, there shall have been cash in
    Rand of One Hundred Thousand Dollars ($100,000). Since such
    date, Rand and Retsky shall have used the cash and the proceeds
    from accounts receivables solely to

    

 

    operate the business of Rand in the ordinary course of business
    consistent with past practices. Since such date, Restky shall
    not have removed any cash from Rand or permitted Rand to make
    any distribution of cash to any shareholder.

 

		
	
    6.11  
	
    Due
    Diligence Completed

 

    Purchaser and its representatives shall have conducted a due
    diligence and audit review of the business, assets, operations,
    and the books and records of Rand and shall have not discovered
    any facts or circumstances which, in Purchaser’s sole
    discretion, (i) fail to support the representations and
    warranties of Rand or Retsky set forth in this Agreement, or
    (ii) could have a Material Adverse Effect on the purchase
    of the Shares or the financial condition or operation of Rand.

 

    ARTICLE VII

    

 

    CONDITIONS
    PRECEDENT TO OBLIGATIONS OF RETSKY AND RAND
    

 

    The obligations of Retsky and Rand under this Agreement are, at
    the option of Retsky and Rand, subject to satisfaction of the
    following conditions at or prior to the Closing Date:

 

		
	
    7.1  
	
    Representations
    True

 

    The representations and warranties of Purchaser contained in
    this Agreement or in any Schedule, Exhibit or certificate
    delivered pursuant to this Agreement shall be true, complete,
    and accurate in all material respects on as of the Closing Date
    to the same extent and with the same force and effect as if made
    on such date, except as affected by the transactions
    contemplated by this Agreement.

 

		
	
    7.2  
	
    All
    Consents Obtained and Filings Made

 

    All necessary approvals or consents required to be obtained by
    Purchaser have been obtained from all Governmental or Regulatory
    Authorities and any other Person or entity whose approval or
    consent is necessary to consummate the transactions contemplated
    by this Agreement. Purchaser shall have filed all forms,
    reports, schedules, statements and other documents required to
    be filed by it with the SEC to consummate the transactions
    contemplated herein. Purchaser shall have filed a listing
    application with AMEX for the Stock Consideration.

 

		
	
    7.3  
	
    Performance
    of Obligations

 

    Purchaser have duly performed all obligations, covenants and
    agreements undertaken by Purchaser in this Agreement and have
    complied with all the terms and conditions applicable to
    Purchaser under this Agreement to be performed or complied with
    on or before the Closing Date in all respects.

 

		
	
    7.4  
	
    No
    Litigation

 

    No suit, action, or other proceeding is threatened or pending
    before any court or Governmental or Regulatory Authority in
    which it will be or it is sought to restrain, prohibit or
    materially delay the consummation of the transactions
    contemplated by this Agreement.

 

		
	
    7.5  
	
    No
    Prohibition of Law

 

    There shall not be in effect any Order by a Governmental or
    Regulatory Authority restraining, enjoining or otherwise
    prohibiting, or any law prohibiting, the consummation of the
    transactions contemplated by this Agreement.

    

 

		
	
    7.6  
	
    Receipt
    of Documents by Retsky

 

    At the Closing, Retsky shall have received:

 

    (a) Payment-Related
    Instruments.  The cash portion of the Purchase
    Price as provided for in Section 2.1 and evidence
    reasonably satisfactory to Retsky that Purchaser has otherwise
    complied with Section 2.1.  

 

    (b) Certificates.  Certificate
    executed by an officer of Purchaser certifying as to the
    fulfillment of the matters contained in Sections 7.1,
    7.2, 7.3, and 7.4;

 

    (c) Certificate of Purchaser Board/Shareholder
    Approval.  Certificate from an officer of
    Purchaser regarding the approval of the Agreement and
    transactions by the board of directors
    and/or the
    stockholders of Purchaser, as applicable;

 

    (d) Executed Documents.  Executed
    copies of the (i) Promissory Note, and (ii) Employment
    Agreements and (iii) Escrow Agreement;

 

    (e) Corporate
    Certificate.  Certificate of Good Standing for
    Purchaser from the Secretary of State of Delaware dated within
    ten (10) days of the Closing Date; and

 

    (f) Orion Counsel Legal Opinion.  A
    legal opinion of Benesch, Friedlander, Coplan & Aronoff
    LLP, as Counsel to Purchaser, reasonably satisfactory to Rand
    and Retsky.

 

    ARTICLE VIII

    

 

    CONDUCT OF
    THE BUSINESS PRIOR TO CLOSING
    

 

		
	
    8.1  
	
    Continuation
    of the Business

 

    From the date hereof until the Closing, except: (i) as
    contemplated by this Agreement, (ii) as required by
    applicable Law, or (iii) with the prior written consent of
    Purchaser, which consent shall not be unreasonably withheld,
    Rand shall:

 

    (a) conduct its business only in the ordinary course
    consistent with past practice;

 

    (b) use reasonable diligent efforts to preserve in all
    respects its present business operations, organization and
    goodwill, and its present relationships with persons having
    business dealings with it;

 

    (c) not take any action that would adversely affect the
    ability of the parties to consummate the transactions
    contemplated by this Agreement;

 

    (d) not borrow any money;

 

    (e) not encumber any asset;

 

    (f) make any single expenditure or agree to make any single
    expenditure, or series of expenditures in excess of $10,000 in
    the aggregate, other than in the ordinary course of
    business; and

 

    (g) not take any action or agree to take any action
    prohibited by this Section 8.1.  

 

		
	
    8.2  
	
    Mutual
    Assistance in Obtaining Consents

 

    The parties hereto shall cooperate with one another and use
    their commercially reasonable efforts to prepare all necessary
    documentation to effect promptly all necessary filings and
    notices and to obtain at the earliest practicable date all
    consents and approvals required to consummate the transactions
    contemplated by this Agreement; provided, however,
    that neither, Retsky, Rand or Purchaser shall be obligated to
    pay any consideration to any third party from whom consent for
    assignment is requested. Rand and Purchaser will promptly
    furnish to the other such necessary information and reasonable
    assistance as the other may request in writing in connection
    with the preparation of any filing or submission that is
    necessary to obtain any other required approval.

    

 

		
	
    8.3  
	
    Reasonable
    Diligent Efforts to Complete Necessary Tasks

 

    Subject to the terms and conditions set forth in this Agreement,
    the Parties shall use their commercially reasonable efforts to
    take, or cause to be taken, and to do, or cause to be done, and
    to assist and cooperate with the other parties in doing, all
    things (including, without limitation, executing and delivering
    such other documents or agreements) necessary, advisable or
    appropriate to consummate and make effective as promptly as
    practicable the transactions contemplated by this Agreement.

 

		
	
    8.4  
	
    Tax
    Matters

 

    Prior to Closing, without the prior written consent of
    Purchaser, Rand shall not make or change any Tax election,
    change any annual accounting period, adopt or change any
    accounting method, file any amended Tax Return, enter into any
    closing agreement, settle any Tax claim or assessment, surrender
    any right to claim a refund of Taxes, or consent to any
    extension or waiver of the limitation period applicable to any
    Tax, in any case, if such election, adoption, change, amendment,
    agreement, settlement, surrender, consent or other action would
    have the effect of increasing the Tax liability of that Rand for
    any period ending after the Closing Date or decreasing any Tax
    attribute of that Rand existing on the Closing Date. Retsky and
    Rand shall not revoke Rand’s election to be taxed as an
    S corporation within the meaning of Section 1361 and
    1362 of the Code prior to Closing and neither Retsky nor Rand
    shall take any action that would result in the termination of
    Rand’s status as a validly electing S corporation
    within the meaning of Sections 1361 and 1362 of the Code
    prior to Closing.

 

		
	
    8.5  
	
    Full
    Access to Rand Records and Facilities

 

    Retsky will cause Rand to permit Purchaser and their
    Representatives (including legal counsel and accountants) to
    have full access at all reasonable times, and in a manner so as
    to not interfere with the normal business operations of Rand to
    all premises, properties, personnel, books, records (including
    Tax records), financial or other operating data or other
    information, Contracts and documents of or pertaining to Rand.

 

		
	
    8.6  
	
    No Public
    Announcements

 

    Neither Retsky nor Purchaser shall, nor shall any of their
    respective Representatives, without the approval of the other
    party, issue any press releases or otherwise make any public
    statements with respect to the transactions contemplated by this
    Agreement, except as may be required by applicable Law or by
    obligations pursuant to any listing agreement with any national
    securities exchange.

 

		
	
    8.7  
	
    Commitment
    by Rand to Exclusive Dealing

 

    Retsky and Rand shall not, and shall cause the their respective
    Representatives to refrain from taking any action to, directly
    or indirectly, encourage, initiate, solicit or engage in
    discussions or negotiations with, or provide any information to,
    any Person, other than Purchaser (and its Representatives and
    financing sources), concerning any purchase of any capital stock
    or equity interests of Rand or any merger, asset sale,
    recapitalization or similar transaction involving each Rand
    except in connection with the transactions contemplated by this
    Agreement. Retsky will not vote his capital stock of Rand in
    favor of any purchase of any merger, asset sale,
    recapitalization or similar transaction involving Rand or Retsky
    other than in favor of the transaction set forth in this
    Agreement. Retsky will notify Purchaser as soon as practicable
    if any Person makes any proposal, offer, inquiry to, or contact
    with, Retsky or Rand (or their respective Representatives), as
    the case may be, with respect to the foregoing and shall
    describe in reasonable detail the identity of any such Person
    and the substance and material terms of any such contact and the
    material terms of any such proposal.

 

		
	
    8.8  
	
    Notification
    of Certain Matters

 

    Retsky and Rand shall give prompt notice to Purchaser of any of
    the following which occurs, or of which it becomes aware,
    following the date hereof: (i) the occurrence or existence
    of any fact, circumstance or event which would reasonably be
    expected to result in (A) any representation or warranty
    made by Retsky or Rand in this Agreement or in any Schedule,
    Exhibit or certificate or delivered herewith, to be untrue or
    inaccurate in any material respect or (B) the failure of
    any condition precedent to either party’s obligations; and
    (ii) any notice or other

    

 

    communication from any third party alleging that the consent of
    such third party is or may be required in connection with the
    transactions contemplated by this Agreement.

 

    ARTICLE IX

    

 

    CERTAIN
    ACTIONS AFTER THE CLOSING
    

 

		
	
    9.1  
	
    Securities
    Issues

 

    Retsky agrees that he will not acquire, purchase, agree to
    acquire, directly or indirectly, or recommend to any Person, to
    purchase, any voting securities of Purchaser based on any
    non-public information known to Retsky.

 

		
	
    9.2  
	
    Non-Competition;
    Non-Solicitation

 

    (a) Period of
    Non-Competition.  Retsky, hereby covenants and
    agrees that he will not during the period from and after the
    Closing Date through the third (3rd) anniversary of the Closing
    Date (the “Non-Competition Period”), own, manage,
    operate, join, control or participate in the ownership,
    management, operation or control of, or be connected as a
    director, officer, employee, partner, lender, consultant or
    otherwise with any business or organization which, directly or
    indirectly, Competes (as hereinafter defined) with Purchaser or
    Rand in Rand or Purchaser’s business in the counties of
    Alameda, Los Angeles, San Diego and San Francisco in
    the state of California (“Restricted
    Territory’’). For purposes of this Agreement, a
    business or organization shall be deemed to “Compete”
    with Rand or Purchaser if such business or organization provides
    billing services to pathologists, clinical laboratories and
    other medical professionals, including services and products
    that facilitate the collection of physician fees from patients
    and third party payers. Nothing in this paragraph shall prohibit
    Retsky from owning for investment purposes up to two percent
    (2%) of the securities of any entity or enterprise whose
    securities are listed on a national exchange.

 

    (b) Non-Solicitation of
    Customers.  Retsky, hereby covenants and
    agrees that he will not during the period from and after the
    Closing Date through the fifth (5th) anniversary of the Closing
    Date (the “Non-Solicitation Period”), directly or
    indirectly, (i) solicit, raid, entice or induce any Person
    that as of the Closing Date is, and during the twelve-month
    period prior to the Closing Date was, or at any time during the
    Non-Solicitation Period shall be, a customer of Rand or
    Purchaser, to become a customer of any Person (other than Rand
    or Purchaser) for products or services the same as, or
    competitive with, those products and services as from time to
    time shall be provided by Rand or Purchaser, (ii) approach
    any such Person for such purpose or authorize the taking of such
    actions by any other Person or assist or participate with any
    such Person in taking such action, or (iii) in any way
    interfere with the relationship between Rand, Purchaser and any
    such Person or business relationship (including making any
    negative or disparaging statements or communications about Rand
    or Purchaser).

 

    (c) Non-Solicitation of
    Employees.  During the Non-Solicitation
    Period, Retsky agrees that he will not, directly or indirectly,
    induce or attempt to influence any Person employed by Rand or
    Purchaser (or its Affiliates), as the case may be, on the date
    of this Agreement or after the Closing Date, to terminate his or
    her employment with the same, nor will he hire such employee,
    either directly or indirectly. During the Non-Solicitation
    Period, the Executive will immediately notify the Company of any
    change of his address and the name and address of any subsequent
    employer.

 

    (d) Effects of Laws and Public
    Policies.  The Parties hereto recognize that
    the laws and public policies of the various states of the United
    States may differ as to the validity and enforceability of
    covenants similar to those set forth in this
    Article IX. The Parties acknowledge and agree that
    the restrictions contained in this Article IX are
    needed in order to induce Purchaser to purchase the Shares and
    to enter into this Agreement. It is the intention of the parties
    that the provisions of this Article IX be enforced
    to the fullest extent permissible under the laws and policies of
    each jurisdiction in which enforcement may be sought, and that
    the unenforceability (or the modification to conform to such
    laws or policies) of any provisions of this
    Article IX shall not render unenforceable, or
    impair, the remainder of the provisions of this
    Article IX. Accordingly, if any provision of this
    Article IX shall be determined to be invalid or
    unenforceable, such invalidity or unenforceability shall be
    deemed to apply only with respect to the

    

 

    operation of such provision in the particular jurisdiction in
    which such determination is made and not with respect to any
    other provision or jurisdiction.

 

    (e) Right of Injunctive
    Relief.  The parties hereto acknowledge and
    agree that any remedy at law for any breach of the provisions of
    this Article IX would be inadequate, and Rand hereby
    consents to the granting by any court of an injunction or other
    equitable relief, without the necessity of actual monetary loss
    being proved, in order that the breach or threatened breach of
    such provisions may be effectively restrained.

 

		
	
    9.3  
	
    Confidentiality
    of Information

 

    Each party hereto will hold, and will use its best efforts to
    cause its Affiliates and their respective representatives to
    hold, in strict confidence from any Person (other than any such
    Affiliate or representative), all documents and information
    concerning the other party or any of its Affiliates furnished to
    it by the other party or such other party’s representatives
    in connection with this Agreement or the transactions
    contemplated hereby, unless (i) compelled to disclose by
    judicial or administrative process (including without limitation
    in connection with obtaining the necessary approvals of this
    Agreement and the transactions contemplated hereby of
    governmental or regulatory authorities) or by other requirements
    of law or (ii) disclosed in an action or proceeding brought
    by a party hereto in pursuit of its rights or in the exercise of
    its remedies hereunder, except to the extent that such documents
    or information can be shown to have been (A) previously
    known by the party receiving such documents or information,
    (B) in the public domain (either prior to or after the
    furnishing of such documents or information hereunder) through
    no fault of such receiving party or (C) later acquired by
    the receiving party from another source if the receiving party
    is not aware that such source is under an obligation to another
    party hereto to keep such documents and information
    confidential; provided that following the Closing the foregoing
    restrictions will not apply to Purchaser’s use of documents
    and information concerning the business of Rand hereunder.

 

		
	
    9.4  
	
    Mail and
    Communications

 

    Retsky will promptly remit to Purchaser any mail or other
    communications, including, without limitation, any written
    inquiries and payments received by Retsky relating to the
    business of Rand and any mail, invoices or other communications
    received by Retsky relating to the business of Rand which are
    received by Retsky from and after the Closing Date.

 

		
	
    9.5  
	
    Use of
    Business Name

 

    Retsky (except to the extent required in order to perform his
    employment duties to Purchaser) covenants and agrees that he
    will not conduct business under, or use the name of “Rand
    Medical Billing”, “Rand”, “Rand
    Medical” or any variation thereof after the Closing.

 

    ARTICLE X

    

 

    INDEMNIFICATION
    

 

		
	
    10.1  
	
    Indemnification

 

    (a) Indemnification by Rand and
    Retsky.  Rand (prior to the Closing) and
    Retsky shall, jointly and severally, indemnify and hold harmless
    Purchaser, and Purchaser’s officers, directors, employees,
    members, managers, stockholders, subsidiaries, assigns and
    successors and the Affiliates of the foregoing Persons
    (individually, a “Purchaser Indemnified Person”
    and collectively, the “Purchaser Indemnified
    Persons”), from and against and in respect of, and
    shall pay to Purchaser Indemnified Persons the amount of, any
    and all claims, demands, lawsuits, actions, causes of actions,
    administrative proceedings (including informal proceedings),
    losses, assessments, costs, damages, judgments, liabilities
    (including reasonable legal fees and disbursements incurred in
    defending any such matters or enforcing any covenant or
    obligation under this Agreement) of every kind, nature and
    description, whether or not involving a third party claim
    (collectively, “Losses”) that arise or result
    from or relate to, directly or indirectly:

    

 

    (i) any breach of any of the representations and warranties
    given or made by Rand or Retsky in this Agreement or any
    certificate, document, or instrument delivered by or on behalf
    of Rand pursuant to this Agreement;

 

    (ii) any violation by Rand or Retsky of any covenant or
    agreement made by Rand or Retsky in this Agreement, or any
    certificate, document, or instrument delivered by or on behalf
    of Rand or Retsky pursuant to this Agreement;

 

    (iii) liabilities of Rand not discharged in connection with
    the Closing as required pursuant to Section 6.5;

 

    (iv) Taxes of any Person imposed upon Rand under Treasury
    Regulation Section 1.1502-6
    or any comparable state, foreign or local law, or as a
    transferee, successor, by contract, operation of law or
    otherwise which Taxes relate to an event or transaction
    occurring before the Closing Date;

 

    (v) Taxes (or the non-payment thereof) of Rand for, or with
    respect to, taxable periods ending on or before the Closing Date
    and, with respect to taxable periods beginning before and ending
    after the Closing Date, Taxes of Rand to the extent such Taxes
    are attributable to the portion of the taxable period ending on
    the Closing Date (as determined pursuant to
    Section 12.2); or

 

    (vi) Taxes of Rand or Retsky attributable to the
    transactions contemplated by this Agreement.

 

    (b) Indemnification by
    Purchaser.  Purchaser shall, indemnify and
    hold harmless Retsky and Rand (prior to the Closing), and
    Retsky’s heirs and assigns (individually, a “Retsky
    Indemnified Person” and collectively, the
    “Retsky Indemnified Persons”), from and against
    and in respect of, and shall pay to Retsky Indemnified Persons
    the amount of, any Losses that arise or result from or relate
    to, directly or indirectly:

 

    (i) any breach of any of the representations and warranties
    given or made by Purchaser in this Agreement or any certificate,
    document, or instrument delivered by or on behalf of Purchaser
    pursuant to this Agreement;

 

    (ii) any violation by Purchaser of any covenant or
    agreement made by Purchaser in this Agreement, or any
    certificate, document, or instrument delivered by or on behalf
    of Purchaser pursuant to this Agreement; and

 

    (iii) the operation of Rand after the Closing including any
    liability for Taxes of Rand imposed upon a Retsky Indemnified
    Person with respect to taxable periods beginning after the
    Closing or to the extent such Taxes are attributable to the
    portion of the taxable period ending after the Closing Date (as
    determined pursuant to Section 12.2).

 

		
	
    10.2  
	
    Limitation
    and Expiration.

 

    Notwithstanding the above:

 

    (a) Threshold
    Limitation.  Following the Closing, there
    shall be no liability for indemnification under this
    Article X for breaches of representations or
    warranties of Purchaser, on the one hand, or Retsky, on the
    other hand, unless and until the aggregate amount of all Losses
    for such breach exceeds $50,000 (the
    “Threshold”) at which point Purchaser or
    Retsky, as the case may be, shall be indemnified for all Losses
    without deduction for the Threshold, provided, however, that the
    Threshold will not apply to breaches of the representations and
    warranties set forth in Sections 4.1, 4.2, 4.4, 4.15,
    4.17 and 4.33 or to Losses under
    Section 10.1(a)(iii)-(vi).  

 

    (b) Aggregate Payment
    Limit.  Notwithstanding anything to the
    contrary herein, the aggregate amount of all payments made by
    the Indemnifying Party in satisfaction of any breach of a
    representation or warranty by Purchaser, on the one hand, or
    Rand and Retsky, on the other hand, under this Agreement shall
    not exceed the Purchase Price except that there shall be no
    limit for Losses that arise or result from (i) a breach of
    any covenant or agreement contained in this Agreement,
    (ii) a breach of any representation or warranty set forth
    in Sections 4.1, 4.2, 4.4, 4.15, 4.17 and 4.33, or
    Losses under Section 10.1(a)(iii)-(iv).  

 

    (c) Representations and Warranties
    Expirations.  Each of the representations and
    warranties made by the parties in this Agreement shall survive
    for a period of twenty four (24) months after the Closing
    Date, provided, however, that the representations and warranties
    of Rand and Retsky contained in Sections 4.1, and 

    

 

    4.2 of this Agreement shall have no expiration and the
    representations and warranties of Rand and Retsky in
    Sections 4.4, 4.14, 4.15 and 4.17 shall survive
    until sixty (60) days following expiration of the
    applicable statute of limitation.

 

    (d) Scope of Remedies.  Following
    the Closing, except with respect to claims based upon fraud and
    injunctive relief provided elsewhere and except as otherwise
    provided in this Agreement, the remedies provided in this
    Article X shall be the sole and exclusive remedy for
    any Losses of Purchaser, Retsky or Rand with respect to this
    Agreement and any exhibit or schedule attached hereto or any
    certificate delivered hereunder.

 

		
	
    10.3  
	
    Remedies.

 

    Purchaser will, at its option, have the right to set off any
    Losses due to Purchaser under Section 10.1(a) above
    against (i) any amounts due to Retsky under the Promissory
    Note, (ii) funds held in the Cash Escrow Account,
    (iii) the Stock Consideration held in the Cash Escrow
    Account (the number of shares subject to forfeiture shall be
    determined by dividing the Losses due to Purchaser under
    Section 10.1(a) by the Adjusted Price Per Share (as
    defined below)). Purchaser may require Rand or Retsky to pay
    such Losses due to Purchaser under Section 10.1(a)
    above in cash. The Adjusted Price Per Share shall be the average
    of the closing sale price of Purchaser’s Common Stock as
    reported by the AMEX for the previous twenty (20) trading
    days on which it shall have traded ending on the last trading
    day immediately prior to the date the notice is delivered
    pursuant to Section 10.4.  

 

		
	
    10.4  
	
    General
    Claims Provisions

 

    (a) Definitions.  For the purposes
    of this Agreement, the term “Indemnitee” will refer to
    the person(s) or entity(ies) indemnified, or entitled, or
    claiming to be entitled, to be indemnified, pursuant to the
    provisions of Sections 10.1 and 10.2. The term
    “Indemnitor” will refer to the person(s) or
    entity(ies) having the obligation to indemnify pursuant to such
    provisions.

 

    (b) Notice.  The Indemnitee will
    promptly give the Indemnitor notice of any matter which the
    Indemnitee has determined has given, or could give, rise to a
    right of indemnification under this Agreement, stating the
    amount of the Losses, if known, the method of computation
    thereof and the basis for the claim, all with reasonable
    particularity. Failure to give timely notice of a matter which
    may give rise to an indemnification claim will not affect the
    rights of the Indemnitee to collect such claim from the
    Indemnitor so long as such failure to so notify does not
    materially adversely affect the Indemnitor’s ability to
    defend such claim against a third party.

 

    (c) Third-Party Claims.  The
    obligations and liabilities of the Indemnitor with respect to
    Losses arising from claims of any third party that are subject
    to the indemnification provided for in this Article X
    (“Indemnification”) will be governed by the
    following additional terms and conditions:

 

    (i) if the Indemnitee receives notice of any Third-Party
    Claim, the Indemnitee will give the Indemnitor prompt notice of
    such Third-Party Claim and will permit the Indemnitor, at its
    option, to assume and control the defense
    and/or
    management of such Third-Party Claim at the Indemnitor’s
    expense and through counsel of its choice, if the Indemnitor
    (A) gives prompt notice of its intention to do so to the
    Indemnitee, (B) admits in writing to the Indemnitee that
    the Indemnitor assumes responsibility for all Losses based upon
    or arising from such claim (subject to the limitations of
    Section 10.2 hereof), and (C) has affirmatively
    waived in writing all defenses the Indemnitor may have against
    the Indemnitee in respect of such claim;

 

    (ii) if the Indemnitor exercises its right to undertake the
    defense
    and/or
    management of any such Third-Party Claim, the Indemnitee will
    cooperate with the Indemnitor in such defense
    and/or
    management and make available to the Indemnitor all witnesses,
    pertinent records, materials and information in the
    Indemnitee’s possession or under its control relating
    thereto as is reasonably required by the Indemnitor;

 

    (iii) if the Indemnitor does not exercise its right to
    undertake the defense
    and/or
    management of any Third-Party Claim as provided above, the
    Indemnitee may, directly or indirectly, conduct the defense
    and/or
    management of any such Third-Party Claim in any manner it
    reasonably may deem appropriate and at the expense of the
    Indemnitor, and the Indemnitor will cooperate with the
    Indemnitee in such defense
    and/or

    

 

    management, and make available to the Indemnitee all witnesses,
    pertinent records, materials and information in the
    Indemnitor’s possession or under its control relating
    thereto as is reasonably required by the Indemnitee;

 

    (iv) the Indemnitor will not consent to the entry of any
    judgment or enter into any settlement with respect to a
    Third-Party Claim (A) without the prior written consent of
    the Indemnitee (not to be unreasonably withheld), unless the
    judgment or proposed settlement involves only the payment of
    money damages, does not impose an injunction or other equitable
    relief upon the Indemnitee and could not otherwise reasonably be
    expected to have a material adverse effect on the Indemnitee and
    (B) unless the consent or settlement includes as an
    unconditional term thereof the giving by the claimant or
    plaintiff to the Indemnitee on an unconditional release from all
    liability in respect of the Third-Party Claim;

 

    (v) the Indemnitee will not consent to the entry of any
    judgment or enter into any settlement with respect to a
    Third-Party Claim without the prior written consent of the
    Indemnitor (not to be unreasonably withheld), unless the
    Indemnitor fails to assume the defense
    and/or
    management of the Third-Party Claim in accordance with this
    Section 10.4(c); and

 

    (vi) the Indemnitee will have the right, at its own cost
    and expense, to participate in the defense of the Third-Party
    Claim.

 

    (d) Effect of Materiality
    Qualifiers.  Although a representation,
    warranty or covenant of any of the parties to this Agreement may
    not be deemed breached, inaccurate or in default unless or until
    a certain standard as to “material”,
    “materiality”, or “material adverse effect”
    has been met, for purposes of calculating Losses in connection
    with this Article X, once such materiality or
    material adverse effect standard has been met, the Indemnitee
    will be entitled to indemnification for all Losses arising out
    of or resulting from such breach, inaccuracy or default of any
    such representation, warranty, or covenant without giving effect
    to any such standard.

 

		
	
    10.5  
	
    Adjustments
    to Purchase Price

 

    Any indemnification payments received pursuant to this
    Article X shall be treated, to the extent permitted
    by law, as an adjustment to the Purchase Price.

 

    ARTICLE XI

    

 

    TERMINATION
    

 

		
	
    11.1  
	
    Termination
    of Agreement

 

    This Agreement and the transactions contemplated under it may be
    terminated and abandoned at any time prior to the Closing:

 

    (a) Mutual Consent.  By mutual
    consent in writing of Purchaser and Retsky;

 

    (b) In Case of Breach.  By
    Purchaser or Retsky if, in the case of Purchaser, there has been
    a breach of any covenant or a material breach of the
    representations and warranties of Rand or Retsky made under this
    Agreement or if, in the case of Retsky, there has been a breach
    of any covenant or a material breach of any of the
    representations and warranties of Purchaser made under this
    Agreement;

 

    (c) If Purchaser or Rand has Material Adverse
    Effect.  By Purchaser if there has been a
    Material Adverse Effect with respect to Rand;

 

    (d) If Certain Conditions Cannot Be
    Fulfilled.  By Purchaser, if any of the
    conditions contained in Article VI, or by Retsky, if
    any of the conditions contained in Article VII,
    respectively, are impossible to fulfill in all material respects.

 

    Any termination pursuant to this Article XI will not
    affect the obligations of the parties under
    Section 8.6 (Public Announcements),
    Section 9.1 (Securities), Section 9.3
    (Confidentiality), Section 11.2 (Procedure Upon
    Termination), Section 11.3 (Effect of Termination),
    Section 13.1 (Expenses) and Section 13.7
    (Governing Law),

    

 

    which shall survive any such termination of this Agreement, and
    will be without prejudice to the terminating party’s legal
    rights and remedies by reason of any breach of this Agreement
    occurring prior to such termination.

 

		
	
    11.2  
	
    Procedure
    Upon Termination

 

    In the event of termination by Purchaser or Retsky, pursuant to
    Section 11.1 hereof, written notice thereof shall
    promptly be given to the other party or parties, and this
    Agreement shall terminate, and the transactions contemplated
    hereunder shall be abandoned, without further action by
    Purchaser or Restky. If this Agreement is terminated as provided
    herein, each of the parties shall return all documents, and
    other material of any other party relating to the transactions
    contemplated hereby, whether obtained before or after the
    execution hereof, to the party furnishing the same.

 

		
	
    11.3  
	
    Effect of
    Termination

 

    In the event that this Agreement is terminated as provided
    herein, then, other than as set forth in the last paragraph of
    Section 11.1, each of the Parties shall be relieved
    of their duties and obligations arising under this Agreement
    after the date of such termination.

 

    ARTICLE XII

    

 

    TAX MATTERS
    

 

		
	
    12.1  
	
    Cooperation
    on Tax Matters.

 

    Purchaser and Retsky shall cooperate fully as and to the extent
    reasonably requested by any of the parties to this Agreement, in
    connection with the filing of Tax Returns pursuant to this
    Article XII and any audit, litigation or other proceeding
    with respect to Taxes. Such cooperation shall include the
    retention and (upon request of any of the above-named parties)
    the provision of records and information which are reasonably
    relevant to any such Tax Return, audit, litigation or other
    proceeding. So long as taxable periods of, or related to, Rand
    ending on or before the Closing Date remain open, Purchaser will
    promptly notify Retsky in writing of any pending or threatened
    Tax audits or assessments for which Retsky has or may have
    liability. Retsky will promptly notify Purchaser in writing of
    any written or other notification received by Retsky from the
    Internal Revenue Service or any other Taxing authority of any
    proposed adjustment raised in connection with a Tax audit,
    examination, proceeding or determination of a taxable period of
    Rand ending on or before the Closing Date.

 

		
	
    12.2  
	
    Tax
    Returns.

 

    Purchaser shall prepare or cause to be prepared, and file or
    cause to be filed, all Tax Returns of Rand for all Tax periods
    ending on or before the Closing Date (a “Pre-Closing
    Period”) and for all Tax periods which begin before the
    Closing Date and end after the Closing Date, if any, (a
    “Straddle Period”) that are filed after the Closing
    Date. Purchaser shall deliver such Pre-Closing Period Tax
    Returns and Straddle Period Tax Returns to Retsky at least
    thirty (30) days prior to the due date of such Tax Returns
    (without taking into account any extensions thereof, unless
    Retsky determines to file for an extension) for his review.
    Solely with respect to any Pre-Closing Period Tax Returns,
    Purchaser shall make all changes reasonably requested by Retsky
    to the extent that (i) such changes are consistent with the
    past practice and custom of Rand, (ii) are in accordance
    with applicable law, and (iii) are provided to Purchaser
    within fifteen (15) days after Retsky’s receipt of
    such Pre-Closing Period Tax Returns. Purchaser shall file such
    Pre-Closing Period Tax Returns on the due date of such Tax
    Returns (without taking into account any extensions thereof,
    unless Retsky determines to file for an extension). Retsky shall
    pay to Purchaser or Rand, as an adjustment to the Purchase
    Price, an amount equal to all Taxes shown to be due on a
    Pre-Closing Period Tax Return and the portion of such Taxes
    shown to be due on a Straddle Period Tax Return which relates to
    the portion of such Straddle Period ending on the Closing Date
    within fifteen (15) days after the receipt of a bill from
    Purchaser for such Taxes. In the case of any Taxes that are
    imposed on a periodic basis and are payable with respect to a
    Straddle Period, the portion of such Tax which relates to the
    portion of such Straddle Period ending on the Closing Date shall
    (x) in the case of any Taxes other than Taxes based upon or
    related to income or gross receipts, be deemed to be the amount
    of such Tax for the entire taxable period multiplied by a
    fraction the numerator of which is

    

 

    the number of days in the taxable period ending on the Closing
    Date and the denominator of which is the number of days in the
    entire taxable period, and (y) in the case of any Tax based
    upon or related to income or gross receipts be deemed equal to
    the amount which would be payable if the relevant taxable period
    ended on the Closing Date.

 

		
	
    12.3  
	
    Defense
    of Tax Claims.

 

    (a) Notwithstanding any other provision in this Agreement
    to the contrary, if any third party shall notify Purchaser with
    respect to any matter relating to Taxes (a “Tax
    Claim”), which may give rise to a claim for
    indemnification against Retsky pursuant to
    Section 10.1, then the Purchaser shall promptly
    notify Retsky thereof in writing; provided, however, that no
    delay on the part of the Purchaser shall relieve Retsky from any
    obligation hereunder unless (and then solely to the extent)
    Retsky thereby is prejudiced.

 

    (b) Retsky will have the right to defend Purchaser or Rand,
    as the case may be, against the Tax Claim with counsel of its
    choice reasonably satisfactory to Purchaser so long as
    (i) Retsky notifies Purchaser in writing within fifteen
    (15) days after Purchaser has given notice of the Tax Claim
    that Retsky will indemnify Purchaser or Rand, as the case may
    be, from and against the entirety of any adverse consequences
    Purchaser or Rand may suffer resulting from, arising out of,
    relating to, in the nature of, or caused by the Tax Claim,
    (ii) Retsky provides Purchaser with evidence acceptable to
    Purchaser that Retsky have the financial resources to defend
    against the Tax Claim and fulfill his indemnification
    obligations with respect to the Tax Claim, (iii) settlement
    of, or an adverse judgment with respect to, the Tax Claim will
    not establish a precedential custom or practice adverse to the
    continuing business interests of Rand or otherwise have an
    adverse effect on Purchaser or Rand’s Tax position for
    periods beginning on or after, or including, the Closing Date,
    and (iv) Retsky conducts the defense of the Tax Claim
    actively and diligently.

 

    (c) So long as Retsky is conducting the defense of the Tax
    Claim in accordance with Section 12.3(b) above,
    (i) Purchaser may retain separate co-counsel at its sole
    cost and expense and participate in the defense of the Tax
    Claim, and (ii) Retsky may not consent to the entry of any
    judgment or enter into any settlement with respect to the Tax
    Claim without the prior written consent of the Purchaser, which
    consent will not be unreasonably withheld or delayed.

 

    (d) In the event any of the conditions in
    Section 12.3(b) above is or becomes unsatisfied,
    (i) Purchaser may defend against, and consent to the entry
    of any judgment or enter into any settlement with respect to,
    the Tax Claim in any manner it reasonably may deem appropriate
    (and Purchaser need not consult with, or obtain any consent
    from, Retsky in connection therewith), (ii) Retsky will
    reimburse Purchaser promptly and periodically for the costs of
    defending against the Tax Claim (including reasonable
    attorneys’ fees and expenses), and (iii) Retsky will
    remain responsible for any adverse consequences Purchaser or
    Rand may suffer resulting from, arising out of, relating to, in
    the nature of, or caused by the Tax Claim to the fullest extent
    provided in this section.

 

		
	
    12.4  
	
    Certain
    Taxes and Fees

 

    All transfer, documentary, sales, use, stamp, registration and
    other such Taxes and all conveyance fees, recording charges and
    other fees and charges (including penalties and interest)
    incurred in connection with the transaction contemplated by this
    Agreement shall be paid by Retsky when due and Retsky shall, at
    his own expense, file all necessary Tax Returns and other
    documentation with respect to all such transfer, documentary,
    sales, use, stamp, registration and other Taxes and fees.

 

		
	
    12.5  
	
    Code
    Section 338(h)(10) Election

 

    At the election of Purchaser, Retsky shall join with Purchaser
    in making a timely election under Code Section 338(h)(10)
    (and any corresponding election under state, local, and foreign
    tax law) with respect to the purchase and sale of the stock of
    Rand pursuant to this Agreement (collectively, the
    “Election”). If the Election is made, Retsky and
    Purchaser shall cooperate for the purpose of effectuating a
    timely and effective Election, including, without limitation,
    the execution and filing of any required forms or returns (each
    such form or return, a “338 Election Form”). The
    Election shall be filed based upon the purchase price allocation
    determined by Purchaser and consented to by Retsky (which
    consent shall not be unreasonably withheld, delayed or
    conditioned). Retsky, Purchaser, and Rand shall file all Tax
    Returns and information reports in a manner consistent with such
    allocation,

    

 

    as adjusted to take into account the Tax Adjustment as set forth
    in Section 12.6 of this Agreement. On or prior to
    March 1, 2007, Purchaser shall prepare and deliver to
    Retsky all required 338 Election Forms. Retsky shall execute all
    such forms and other documents required to be executed by him in
    connection with the Election as set forth in instructions
    provided by Purchaser and deliver the same to Purchaser within
    fifteen (15) days of the receipt of such forms and other
    documents. If a 338 Election Form is required to be filed prior
    to the final determination of the Tax Adjustment, Purchaser will
    execute such 338 Election Form and deliver it to Retsky at least
    thirty (30) days prior to the last date on which such 338
    Election Form may be filed, and Purchaser shall file such 338
    Election Form using the information then available, and
    Purchaser and Retsky shall amend such 338 Election Form as
    necessary upon the final determination of the Tax Adjustment.
    The Purchaser shall be responsible for filing all 338 Election
    Forms with the proper Governmental Authorities, provided that
    Retsky shall be responsible for filing any 338 Election Form
    that must be filed with a Tax Return that Retsky is responsible
    for preparing and filing.

 

		
	
    12.6  
	
    Tax
    Adjustment.

 

    If pursuant to Section 12.5 of this Agreement, the
    Purchaser elects to make the Election, Retsky shall include any
    income, gain, loss or deduction or other Tax item resulting from
    the Election on his Tax Returns to the extent required by
    applicable Law. In addition, the Purchase Price shall be
    increased by an amount equal to the aggregate excess Tax cost
    (federal, state, local and foreign Taxes included) of Retsky
    incurred as a result of making the Election described in
    Section 12.5 above. Retsky’s excess Tax cost
    for purposes of this Section 12.6 shall be
    determined by Retsky’s independent certified public
    accountant based on Retsky’s federal, state, local and
    foreign Taxes for the year with respect to which the Election is
    made, determined with and without the effect of the Election. No
    later than fifteen (15) days after Purchaser notifies
    Retsky of Purchaser’s intention to make an Election, Retsky
    shall deliver to the Purchaser a calculation of the excess Tax
    cost as determined in accordance with this
    Section 12.6 (i.e., the amount by which
    Retsky’s Taxes calculated with the effect of the Election
    exceed Retsky’s Taxes calculated without the effect of the
    Election) along with such other information as reasonably
    required by Purchaser to confirm the amount of the excess Tax
    cost and the Tax Adjustment (as defined herein). The excess Tax
    cost shall be grossed up at Retsky’s effective tax rate for
    the year in which the Election is made, with the aggregate of
    the excess tax cost and the
    gross-up
    amount referred to as the “Tax Adjustment”. It is the
    intent of the parties that the Tax Adjustment shall be equal to
    the amount necessary such that Retsky shall be no worse off, on
    an after-tax basis, than had the Election not been made. The
    Purchaser shall notify Retsky within fifteen (15) days of
    the receipt of such calculation of any objections to such
    calculation. If the Purchaser objects to the calculation, then
    the Purchaser and Retsky shall attempt to resolve any disputes;
    provided, however, that if they are unable to do so within
    fifteen (15) days after the Retsky’s receipt of notice
    of an objection, such disputed items shall be submitted to a
    mutually acceptable independent accounting firm for final
    determination, which shall be binding upon the Purchaser and
    Retsky. The Purchaser shall pay to Retsky the amount of the Tax
    Adjustment no later than fifteen (15) days after the later
    of (x) the filing of the Election or (y) final
    determination of the Tax Adjustment. The payment of the Tax
    Adjustment shall be treated as a purchase price adjustment. If a
    subsequent determination is made that the Election was not
    available with respect to the transactions contemplated by this
    Agreement, Retsky shall promptly pay to the Purchaser an amount
    equal to the Tax Adjustment previously received by him from the
    Purchaser.

 

    ARTICLE XIII

    

 

    MISCELLANEOUS
    

 

		
	
    13.1  
	
    Transaction
    Expense Obligations

 

    Except as set forth herein and in Section 12.4, each
    Party shall pay their own expenses (including legal and
    accounting fees) incident to the negotiation and preparation of
    this Agreement and any other documents prepared in connection
    therewith, and the consummation of the transactions contemplated
    herein.

 

		
	
    13.2  
	
    Amendment
    and Modification

 

    The Parties may amend, modify and supplement this Agreement in
    such manner as may be agreed upon by all of them in writing.

    

 

		
	
    13.3  
	
    Entire
    Agreement Defined

 

    This Agreement, including the exhibits, schedules, certificates
    and other documents and agreements delivered on the date hereof
    in connection herewith contains the entire agreement of the
    Parties with respect to the transactions contemplated hereby,
    and supersedes all prior understandings and agreements (oral or
    written) of the Parties with respect to the subject matter
    hereof. The Parties expressly represent and warrant that in
    entering into this Agreement they are not relying on any prior
    representations made by any other Party concerning the terms,
    conditions or effects of this Agreement which terms, conditions
    or effects are not expressly set forth herein. Any reference
    herein to this Agreement shall be deemed to include the
    schedules and exhibits.

 

		
	
    13.4  
	
    Interpretation

 

    When a reference is made in this Agreement to an article,
    section, paragraph, clause, schedule or exhibit, such reference
    shall be to an article, section, paragraph, clause, schedule or
    exhibit of this Agreement unless otherwise indicated. The
    section headings and captions contained herein and on the
    schedules are for reference purposes only and shall not affect
    in any way the meaning or interpretation of this Agreement or
    the schedules. Whenever the words “include,”
    “includes” or “including” are used in this
    Agreement, they shall be deemed to be followed by the words
    “without limitation.” The term “knowledge”
    when applied to any Person, shall mean the actual knowledge of
    such Person after due inquiry; provided that, if such Person is
    an entity, the actual knowledge of its officers and directors
    (including that of Retsky in the case of Rand) after due inquiry
    shall be imputed to such Person.

 

		
	
    13.5  
	
    Execution
    in Counterparts

 

    This Agreement may be executed in any number of counterparts,
    each of which shall be deemed an original, but all of which
    taken together shall constitute one and the same instrument.
    Execution and delivery of a facsimile of this Agreement shall
    have the same effect as the delivery of the original.

 

		
	
    13.6  
	
    Notices:
    Names and Addresses

 

    All notices, consents, waivers, and other communications under
    this Agreement must be in writing and will be deemed to have
    been duly given when (i) delivered by hand (with written
    confirmation of receipt), (ii) sent by facsimile (with
    written confirmation of receipt), provided that a copy is mailed
    by registered mail, return receipt requested, or
    (iii) three (3) days after deposited with a nationally
    recognized overnight delivery service (receipt requested), in
    each case to the appropriate addresses and facsimile numbers set
    forth below (or to such other addresses and facsimile numbers as
    a Party may designate by written notice to the other Parties):

 

    If to Rand:

 

    Marvin I. Retsky, M.D.

    1633 Erringer Rd

    Simi Valley, CA 93065

 

    with a copy to:

 

    Harrington, Foxx, Dubrow & Canter, LLP

    1055 West Seventh Street, 29th Floor

    Los Angeles, CA
    0017-2547

    Attn: Martin C. Kristal

 

    If to Purchaser:

 

    Orion HealthCorp Inc.

    1805 Old Alabama Road Suite 350

    Roswell, GA 30076

    Fax:
    (678) 832-1888

    Attn: Terrence L. Bauer, CEO

    

 

 

    with a copy to:

 

    Benesch, Friedlander, Coplan & Aronoff LLP

    2300 BP Tower

    200 Public Square

    Cleveland, OH
    44114-2378

    Fax:
    (216) 363-4588

    Attention: Ira Kaplan

 

    Any Party may, by Notice given as aforesaid, change its address
    for all subsequent Notices. Notices shall be deemed given on the
    date delivered.

 

		
	
    13.7  
	
    Governing
    Law

 

    This Agreement shall be governed by and construed in accordance
    with the laws of the State of California as though made and to
    be fully performed in that State without regard to conflicts of
    laws principles. No Party to this Agreement shall commence or
    prosecute any suit, proceeding or claim to enforce the
    provisions of this Agreement, to recover damages for the breach
    of or default under this Agreement or otherwise arising under or
    by reason of this Agreement, other than in the federal or state
    courts located in the County of Los Angeles in the State of
    California. Each of the Parties irrevocably consents and submits
    to the jurisdiction and venue of the federal or state courts
    located in the County of Los Angeles in the State of California
    and waives any and all objections to the jurisdiction that they
    may have under the laws of any state or of the United States.

 

		
	
    13.8  
	
    Severability

 

    If any term or other provision of this Agreement is invalid,
    illegal or incapable of being enforced by any rule of law or
    public policy, all other conditions and provisions of this
    Agreement shall nevertheless remain in full force and effect so
    long as the economic or legal substance of the transactions
    contemplated hereby is not affected in any manner adverse to any
    Party. Upon such determination that any term or other provision
    is invalid, illegal or incapable of being enforced, the Parties
    hereto shall negotiate in good faith to modify this Agreement so
    as to effect the original intent of the Parties as closely as
    possible in an acceptable manner to the end that the
    transactions contemplated hereby are fulfilled to the greatest
    extent possible.

 

		
	
    13.9  
	
    Assignment

 

    Neither this Agreement nor any of the rights, interests or
    obligations hereunder shall be assigned by any of the Parties
    hereto without the prior consent of the other Parties, and any
    attempt to do so will be void, except (i) for assignments
    and transfers by operation of law and (ii) that Purchaser
    may assign any or all of its rights, interests and obligations
    hereunder to (A) an affiliate or wholly-owned subsidiary,
    provided that any such affiliate or subsidiary agrees in writing
    to be bound by all of the terms, conditions and provisions
    contained herein, (B) any post-Closing purchaser of all of
    the issued and outstanding stock of Purchaser or a substantial
    part of its assets or (C) any financial institution
    providing purchase money or other financing to Purchaser from
    time to time as collateral security for such financing. Subject
    to the preceding sentence, this Agreement is binding upon,
    inures to the benefit of and is enforceable by the parties
    hereto and their respective successors and assigns.

 

		
	
    13.10  
	
    Binding
    Effect; No Third Party Beneficiaries

 

    This Agreement shall inure to the benefit of, be binding upon
    and be enforceable by and against Rand and Purchaser and their
    respective successors and permitted assigns, and nothing herein
    expressed or implied shall be construed to give any other Person
    any legal or equitable rights hereunder; provided that
    Purchaser’s lenders may rely on the representations,
    warranties and covenants of Rand contained herein.

 

		
	
    13.11  
	
    Negotiation
    Representations

 

    Each Party expressly represents and warrants to all other
    Parties hereto that (i) before executing this Agreement,
    said Party has fully informed itself or himself of the terms,
    contents, conditions and effects of this Agreement;
    (ii) said Party has relied solely and completely upon its
    or his own judgment in executing this

    

 

    Agreement; (iii) said Party has had the opportunity to seek
    and has obtained the advice of counsel before executing this
    Agreement; (iv) said Party has acted voluntarily and of its
    or his own free will in executing this Agreement; (v) said
    Party is not acting under duress, whether economic or physical,
    in executing this Agreement; and (vi) this Agreement is the
    result of arm’s-length negotiations conducted by and among
    the Parties and their counsel.

 

		
	
    13.12  
	
    Waiver

 

    No remedy conferred by any of the specific provisions of this
    Agreement is intended to be exclusive of any other remedy and
    the rights and remedies of the parties are cumulative and not
    alternative. Neither the failure nor any delay by any Party in
    exercising any right, power, or privilege under this Agreement
    or the documents referred to in this Agreement will operate as a
    waiver of such right, power, or privilege, and no single or
    partial exercise of any such right, power, or privilege will
    preclude any other or further exercise of such right, power, or
    privilege or the exercise of any other right, power, or
    privilege. To the maximum extent permitted by applicable law,
    (i) no claim or right arising out of this Agreement or the
    documents referred to in this Agreement can be discharged by any
    of Purchaser or Rand or either of them, in whole or in part, by
    a waiver or renunciation of the claim or right unless in writing
    signed by the other affected Party or Parties; (ii) no
    waiver that may be given by a Party will be applicable except in
    the specific instance for which it is given; and (iii) no
    notice to or demand on one Party will be deemed to be a waiver
    of any obligation of such Party or of the right of the Party
    giving such notice or demand to take further action without
    notice or demand as provided in this Agreement or the documents
    referred to in this Agreement.

 

		
	
    13.13  
	
    Further
    Assurances

 

    At any time and from time to time (including after the Closing),
    upon reasonable request of Purchaser, Rand shall do, execute,
    acknowledge and deliver such further acts, assignments,
    transfers, conveyances and assurances as Purchaser may deem
    necessary or desirable in order more effectively to transfer,
    convey and assign to Purchaser, and to confirm Purchaser’s
    title to the assets and properties of Rand.

 

		
	
    13.14  
	
    Schedules
    and Exhibits

 

    The disclosures in the schedules and exhibits attached hereto
    shall be construed with and as an integral part of this
    Agreement to the same extent as if the same had been set forth
    herein. Any matter disclosed by Rand on any one Schedule with
    respect to any representation, warranty or covenant of Rand
    shall be deemed disclosed for purposes of all other
    representations, warranties or covenants of Rand to the extent
    that it is reasonably apparent from such disclosure that is also
    relates to such other representations, warranties or covenants,
    and to the extent any matter disclosed on any Schedule conflicts
    with any representation, warranty or covenant of Rand contained
    in this Agreement, this Agreement will control.

 

    [SIGNATURE
    PAGE FOLLOWS]

    

 

    IN WITNESS WHEREOF, the undersigned have caused this Agreement
    to be duly executed as of the day and year first above written.

 

    Orion HealthCorp, Inc.

 

			
	 	    By: 
	
    /s/  Terrence
    L. Bauer

    Terrence L. Bauer, CEO

 

    /s/  Marvin
    I. Retsky

    Marvin I. Retsky, M.D.

 

    Rand Medical Billing, Inc.

 

			
	 	    By: 
	
    /s/  Marvin
    I. Retsky

    Marvin I. Retsky, M.D.

    President and CEO

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