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<SEC-DOCUMENT>0000950144-06-007428.txt : 20060807
<SEC-HEADER>0000950144-06-007428.hdr.sgml : 20060807
<ACCEPTANCE-DATETIME>20060807134354
ACCESSION NUMBER:		0000950144-06-007428
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20060801
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060807
DATE AS OF CHANGE:		20060807

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTELLIGENT SYSTEMS CORP
		CENTRAL INDEX KEY:			0000320340
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				581964787
		STATE OF INCORPORATION:			GA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09330
		FILM NUMBER:		061008267

	BUSINESS ADDRESS:	
		STREET 1:		4355 SHACKLEFORD RD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
		BUSINESS PHONE:		4043812900

	MAIL ADDRESS:	
		STREET 1:		4355 SHACKLEFORD ROAD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g02765e8vk.htm
<DESCRIPTION>INTELLIGENT SYSTEMS CORPORATION
<TEXT>
<HTML>
<HEAD>
<TITLE>INTELLIGENT SYSTEMS CORPORATION</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Current Report<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Date of Report (Date of earliest event reported): August&nbsp;1, 2006</B>

</DIV>
<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">INTELLIGENT SYSTEMS CORPORATION</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Georgia</B><BR>
(State or other jurisdiction<BR>
of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-9330</B><BR>
Commission file number
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>58-1964787</B><BR>
(I.R.S. Employer Identification No.)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>4355 Shackleford Road, Norcross, Georgia</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>30093</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Registrant&#146;s telephone number, including area code: <B>(770)&nbsp;381-2900</B>

</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFP 240.14a-12)</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">








<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;7.01. Regulation&nbsp;FD Disclosure</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SIGNATURE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Exhibit Index</A></TD></TR>
<TR><TD colspan="9"><A HREF="g02765exv2w1.htm">EX-2.1 ASSET PURCHASE AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="g02765exv99w1.htm">EX-99.1 PRESS RELEASE</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets.</B>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On August&nbsp;1, 2006, Intelligent Systems Corporation (the &#147;Company&#148;) completed the sale of the
business and certain assets of its QS Technologies, Inc. (&#147;QS&#148;) subsidiary to Netsmart Public
Health, Inc. and its parent company, Netsmart Technologies, Inc. (&#147;Buyer&#148;). The sale is
effective as of July&nbsp;31, 2006. </DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The QS subsidiary is involved in the design, development, sale and support of software and services
for the public health industry. The Company sold certain assets used in the QS business,
consisting principally of intangibles (including but not limited to intellectual property, goodwill
and contracts), furniture and equipment, prepaid expenses and work-in-process for a combination of
$1.9&nbsp;million in cash, a promissory note of Buyer in the amount of $1.435&nbsp;million and the assumption
by Buyer of approximately $1.8&nbsp;million in net liabilities of QS. The Company retained accounts
receivable and cash of QS Technologies aggregating approximately $2&nbsp;million.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The promissory note bears interest at the rate of 8.25&nbsp;percent annually and is payable in
thirty-six monthly payments of $45,133 beginning September&nbsp;1, 2006. The principal amount of the
note is subject to adjustment based on revenue and earnings of the QS operations for the period
from August&nbsp;1, 2006 through December&nbsp;31, 2006.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In addition, the transaction provides for contingent payments to the Company of up to $1.45&nbsp;million
in 2008 based on the attainment by the QS operation of certain levels of
revenue and bookings in 2007.</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">The
Company will furnish pro forma financial information related to the
transaction in an amendment to this Form 8-K within 71 calendar days
of the date of this Form 8-K.</DIV>

<!-- link1 "Item&nbsp;7.01. Regulation&nbsp;FD Disclosure" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7.01. Regulation&nbsp;FD Disclosure.</B>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">On August&nbsp;2, 2006, Intelligent Systems Corporation issued a press release disclosing the sale of
the QS Technologies&#146; business and assets. A copy of the August&nbsp;2, 2006 press release, attached
hereto as Exhibit&nbsp;99.1, is being furnished pursuant to Regulation&nbsp;FD and is incorporated by
reference herein.</DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>(c)&nbsp;Exhibits</B></DIV>


<DIV align="left" style="margin-left: 2%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;2.1 Asset Purchase Agreement dated as of July&nbsp;31, 2006 by and between QS Technologies,
Inc. and Intelligent Systems Corporation, as Sellers, and Netsmart Public Health, Inc. as Buyer
and Netsmart Technologies, Inc.</DIV>


<DIV align="left" style="margin-left: 2%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;99.1 Press Release issued by Intelligent Systems Corporation dated August&nbsp;2, 2006.</DIV>

<!-- link1 "SIGNATURE" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">Date: August&nbsp;7, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">INTELLIGENT SYSTEMS CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Registrant)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Bonnie L. Herron
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Bonnie L. Herron
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- link1 "Exhibit Index" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;Index</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Purchase Agreement dated as of July&nbsp;31, 2006 by and between QS Technologies, Inc.
and Intelligent Systems Corporation, as Sellers, and Netsmart Public Health, Inc. as Buyer and
Netsmart Technologies, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release issued by Intelligent Systems Corporation on August&nbsp;2, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">3
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>2
<FILENAME>g02765exv2w1.htm
<DESCRIPTION>EX-2.1 ASSET PURCHASE AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-2.1 ASSET PURCHASE AGREEMENT</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;2.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Asset Purchase Agreement</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Dated as of July&nbsp;31, 2006</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>By and Between</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>QS Technologies, Inc. and</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Intelligent Systems Corporation, as Sellers</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>and</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Netsmart Public Health, Inc., as Buyer and</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Netsmart Technologies, Inc.</B></FONT>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 1 DEFINITIONS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">SECTION 1.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 1.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Index of Other Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 2 TRANSFER OF ASSETS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer of Assets by Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumption of Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assignment of Contracts and Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing Balance Sheet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Calculation of Earnings Period Financial Results; Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">SECTION 2.10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing Deliveries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 2.11.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase Price Allocation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLERS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Organization and Qualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Authority Relative to this Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consents and Approvals; No Conflicts or Violations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compliance with Applicable Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Labor Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.11.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.12.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#091;Intentionally Left Blank&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.13.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Title to Assets and Continued Operation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.14.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.15.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equipment; Asset Valuation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.16.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Absence of Changes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.17.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Product Warranties, Defects and Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.18.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Affiliate Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.19.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Customers and Suppliers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.20.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Illegal Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.21.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Real Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.22.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Environmental Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.23.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 3.24.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee Benefit Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">i
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">SECTION 4.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Organization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 4.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Authority Relative to this Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 4.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consents and Approvals: No Violations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 4.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 4.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 4.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Netsmart SEC Reports</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 5 COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional Agreements; Best Efforts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Public Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee Benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Other Covenants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earn-Out Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Name Change of Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Confidentiality; Non-Disparagement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 5.9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts Receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top" nowrap>SECTION 5.10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Netsmart Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 6 TAX MATTERS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 6.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 6.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cooperation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 6.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocation of Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 7 NON-COMPETITION; NON-SOLICITATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 7.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Competition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 7.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Solicitation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 7.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Injunctive Relief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 7.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 8 SURVIVAL OF REPRESENTATIONS &#038; WARRANTIES;INDEMNIFICATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Survival of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Survival of Covenants and Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indemnification by Sellers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indemnification by Buyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thresholds and Limits on Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Procedure; Notice of Claims</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 8.8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Limitations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">ARTICLE 9 MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.1.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Entire Agreement; Assignment; Amendments and Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.2.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Validity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.3.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.4.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Governing Law, Forum Selection, Jurisdiction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.5.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">WAIVER OF JURY TRIAL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.6.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Descriptive Headings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.7.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parties in Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.8.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Specific Performance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">ii
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="left" valign="top">SECTION 9.9.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Disclosure Generally</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left" valign="top">SECTION 9.10.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.11.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Attorney&#146;s Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">SECTION 9.12.</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Set-Off or Withholding From Promissory Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">iii
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ASSET PURCHASE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS ASSET PURCHASE AGREEMENT, dated as of July&nbsp;31, 2006 (this &#147;<U>Agreement</U>&#148;), is by and
between QS TECHNOLOGIES, INC., a Georgia corporation (&#147;QS&#148;) and INTELLIGENT SYSTEMS CORPORATION, a
Georgia corporation (&#147;Parent&#148;) (QS and Parent being collectively referred to as &#147;<U>Sellers</U>&#148;),
and NETSMART PUBLIC HEALTH, INC., a Delaware corporation (&#147;<U>Buyer</U>&#148;), and NETSMART
TECHNOLOGIES, INC., a Delaware corporation (&#147;Netsmart&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>RECITALS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, QS is engaged in the business (the &#147;<U>Business</U>&#148;) of designing, developing,
selling, licensing, maintaining and supporting software products and services for the public health
market, as listed on <U>Schedule&nbsp;A</U> (the &#147;<U>Products</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Parent is the owner of all of the issued and outstanding shares of capital stock of
QS;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, both QS and Parent own certain of the assets used in connection with and/or necessary
for the operation of the Business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers,
substantially all of the assets of the Sellers related to the Business (other than the Excluded
Assets, as defined below), which constitute all of the assets principally used in connection with
and/or necessary for the operation of the Business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Sellers desire to sell such assets in consideration of Buyer&#146;s obligations hereunder,
including Buyer&#146;s agreement to assume certain of the liabilities of Sellers relating to the
Business (other than the Excluded Liabilities, as defined below), all on the terms set forth
herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE in consideration of the premises and the representations, warranties, covenants
and agreements herein contained and intending to be legally bound hereby, Sellers and Buyer hereby
agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 1<BR>
DEFINITIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.1. <U>Certain Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following terms, as used herein, have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Action</U>&#148; means any pending or threatened claim, demand, complaint, charge, proceeding,
suit, action, violation, hearing or investigation (and appeals therefrom) before any Governmental
Authority or other judicial or administrative tribunal or body and/or any officer thereof.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means, in respect of any Person, a Person that, directly or indirectly,
through one or more intermediaries controls, is controlled by or is under common control with the
first-mentioned Person; and &#147;control,&#148; as used in this definition, means the unrestricted power,
acting alone, to direct or cause the direction of the management and policies of a Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Law</U>&#148; means, with respect to any Person, any domestic or foreign, federal,
state or local statute, law, ordinance, policy, guidance, rule, administrative interpretation,
regulation, order, writ, injunction, directive, judgment, decree or other requirement of any
Governmental Authority applicable to such Person or any of its Affiliates or any of their
respective properties, assets, officers, directors, employees, consultants or agents (in connection
with such officer&#146;s, director&#146;s, employee&#146;s, consultant&#146;s or agent&#146;s activities on behalf of such
Person or any of its Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Balance Sheet</U>&#148; means the balance sheet of QS dated June&nbsp;30, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Balance Sheet Date</U>&#148; means June&nbsp;30, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>best efforts</U>&#148; means the efforts a reasonable person in the position of the promisor
would use, consistent with the practices of companies operating businesses like the Business, to
achieve the stated goal as expeditiously as possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bill of Sale and Assumption Agreement</U>&#148; means the Bill of Sale and Assumption
Agreement, executed and dated as of the Closing Date, by and between Seller and Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means any day other than Saturday, Sunday or a day on which banks
located in the State of New York are closed due to a federal holiday.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Balance Sheet</U>&#148; means the balance sheet of QS dated July&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Balance Sheet Date</U>&#148; means July&nbsp;31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Confidential Information</U>&#148; means information not generally available to the public
relating to the Business, including, without limitation, all computer software and database
information, personnel information, financial information, customer lists, supplier lists, trade
secrets, patented proprietary information, forms, information regarding operations, systems,
services, know how, computer and any other processed or collated data, computer programs, pricing,
marketing and advertising data, methods, forms, systems, services, designs, marketing ideas,
products or processes (whether or not capable of being trademarked, copyrighted or patented).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contracts</U>&#148; means all contracts, agreements, options, leases, licenses, sales and
accepted purchase orders, commitments and other instruments of any kind, whether written or oral,
which relate to the Business and to which a Seller is a party or is otherwise bound by on the
Closing Date, including the Assumed Contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Damages</U>&#148; means all demands, claims, actions or causes of action, assessments, losses,
damages, costs, expenses, liabilities, judgments, awards, fines, sanctions, penalties, charges and
amounts paid in settlement, including reasonable costs, fees and expenses of attorneys,
accountants,
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consultants and other agents or independent contractors incurred in investigating, preparing
for and defending any thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earnings Period</U>&#148; shall mean the period commencing August&nbsp;1, 2006 and ending December
31, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Earn-Out Payment</U>&#148; means a Maintenance Earn-Out Payment, Vital Records Earn-Out
Payment or Other Software Earn-Out Payment under <U>Section&nbsp;5.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>EBIT-A</U>&#148; shall mean the Buyer&#146;s earnings before interest, income tax and
amortization, calculated in accordance with GAAP and, to the extent not inconsistent with GAAP, the
past practice of QS as reflected in the Financial Statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Law</U>&#148; means any applicable federal, state and local law, statute,
ordinance, regulation, rule, judicial or administrative order or decree, or similar requirement of
each and every federal, and pertinent state and local Governmental Authority, pertaining to the
protection of human health or the environment including, without limitation, the Comprehensive
Environmental Response Compensation and Liability Act (CERCLA), 42 U.S.C. 9601 et seq., the
Resource Conservation and Recovery Act (RCRA), 42 U.S.C. 6901 et seq., the Toxic Substances Control
Act (TSCA), 15 U.S.C. 2601 et seq., and the Water Pollution Control Act (FWPCA), 33 U.S.C. 1251 et
seq..
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; means the Employee Retirement Income Security Act of 1974, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; means generally accepted accounting principles in the United States as in
effect from time to time and applied consistently throughout the periods involved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148; means any foreign, domestic, federal, territorial, state or
local governmental authority, quasi-governmental authority, instrumentality, court, government or
self-regulatory organization, commission, tribunal or organization or any regulatory,
administrative or other agency, or any political or other subdivision, department or branch of any
of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Substance</U>&#148; means any substance, compound, chemical or element which is (i)
defined as a hazardous substance, hazardous material, toxic substance, hazardous waste, pollutant
or contaminant under any Environmental Law, or (ii)&nbsp;a petroleum hydrocarbon, including crude oil or
any fraction thereof, or (iii)&nbsp;a hazardous, toxic, corrosive, flammable, explosive, infectious,
radioactive, carcinogenic or a reproductive toxicant, or (iv)&nbsp;otherwise regulated under any
Environmental Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148; of any Person means all obligations of such Person (a)&nbsp;for borrowed
money, (b)&nbsp;evidenced by notes, bonds, debentures or similar instruments or (c)&nbsp;in the nature of
guarantees of the obligations described in clauses (a)&nbsp;and (b)&nbsp;above of any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Information Technology</U>&#148; means all computer hardware, software, networks,
microprocessors, firmware and other information technology and communications equipment currently
used in the operation of the information technology systems of the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148; means all intellectual property owned or licensed (as
licensee) by a Seller and used in or in connection with the Business, or in any Products, service,
technology or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">process currently offered by a Seller in connection with the Business, or currently under
development by a Seller for use in connection with the Business, including: (i)&nbsp;all domestic and
foreign copyright interests in any original work of authorship, whether registered or unregistered,
including but not limited to all copyright registrations or foreign equivalent, all applications
for registration equivalent, all moral rights, all common-law rights, and all rights to register
and obtain renewals and extensions of copyright registrations, together with all other copyright
interests accruing by reason of international copyright convention (collectively,
&#147;<U>Copyrights</U>&#148;); (ii)&nbsp;all domestic and foreign patents (including certificates of invention
and other patent equivalents), provisional applications, patent applications and patents issuing
therefrom as well as any division, continuation or continuation in part, reissue, extension,
reexamination, certification, revival or renewal of any patent, all Inventions and subject matter
related to such patents, in any and all forms (collectively, &#147;Patents&#148;); (iii)&nbsp;all domestic and
foreign trademarks, trade dress, service marks, trade names, icons, logos, slogans, and any other
indicia of source or sponsorship of goods and services, designs and logotypes related to the above,
in any and all forms, all trademark registrations and applications for registration related to such
trademarks (including, but not limited to intent to use applications), and all goodwill related to
the foregoing (collectively, &#147;<U>Trademarks</U>&#148;); (iv)&nbsp;all domain name registrations
(collectively &#147;<U>Domain Names</U>&#148;); (v)&nbsp;any formula, design, device or compilation, or other
information which is used or held for use by a business, which gives the holder thereof an
advantage or opportunity for advantage over competitors which do not have or use the same, and
which is not generally known by the public (&#147;<U>Trade Secrets</U>&#148;) &#150; Trade Secrets can include,
by way of example, formulas, algorithms, market surveys, market research studies, information
contained on drawings and other documents, and information relating to research, development or
testing; (vi)&nbsp;novel devices, processes, compositions of matter, methods, techniques, observations,
discoveries, apparatuses, machines, designs, expressions, theories and ideas, whether or not
patentable; (vii)&nbsp;scientific, engineering, mechanical, electrical, financial, marketing or
practical knowledge or experience useful in the operation of the Business; (viii) (A)&nbsp;any and all
computer programs and/or software programs (including all source code, object code, firmware,
programming tools and/or documentation), (B)&nbsp;machine readable databases and compilations, including
any and all data and collections of data, and (C)&nbsp;all content contained on internet site(s) of QS
or, to the extent related to the Business, of Parent (collectively, &#147;<U>Software</U>&#148;); (ix)&nbsp;all
documentation and media constituting, describing or relating to the above, including memoranda,
manuals, technical specifications and other records wherever created throughout the world; and (x)
the right to sue for past, present, or future infringement and to collect and retain all damages
and profits related to the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Knowledge of Sellers</U>&#148; means the actual knowledge of Kevin Davidson of QS, and Leland
Strange and Bonnie Herron of Parent and shall be deemed to include a representation that such
individuals have made all reasonable inquiries under the circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liability</U>&#148; means, with respect to any Person, any liability or obligation of such
Person of any kind, character or description, whether known or unknown, absolute or contingent,
accrued or unaccrued, liquidated or unliquidated, secured or unsecured, joint or several, due or to
become due, vested or unvested, executory, determined, determinable or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; means, with respect to any asset, any mortgage, title defect or objection,
lien, pledge, charge, security interest, hypothecation, restriction, encumbrance or charge of any
kind in respect of such asset.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maintenance Earn-Out Period</U>&#148; means the fiscal year commencing January&nbsp;1, 2007 and
ending on December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maintenance Revenue</U>&#148; means all Revenue from support, warranty and maintenance
services during the Maintenance Earn-Out Period but excluding any revenue attributable (i)&nbsp;third
party licensed products, or (ii)&nbsp;professional services including systems integrator fees,
customization, systems integration, implementation and roll out fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Netsmart</U>&#148; means Netsmart Technologies, Inc., a Delaware corporation and the owner of
all of the issued and outstanding capital stock of Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>New Customer</U>&#148; means any Person who is not a licensee of any of the Products as of the
date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NTST Common Stock</U>&#148; means the common stock, $.10 par value, of Netsmart.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Order</U>&#148; means any order, judgment, decree, mandate, writ, injunction, ruling,
assessment or award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinary Course of Business</U>&#148; means the ordinary course of business consistent with
past custom and practice (including, without limitation, with respect to quantity, quality and
frequency).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Other Software</U>&#148; means all Software Products of QS other than Vital Records Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Other Software Contract Awards</U>&#148; means the sum of (i)&nbsp;the dollar value of all
contracts for Other Software awarded during the Software Earn-Out Period to New Customers, (ii)&nbsp;the
dollar value of all upgrade or additional contract awards for Other Software to existing customers
during the Software Earn-Out Period, and (iii)&nbsp;any Revenue from existing contracts with Identified
Customers that is not included in the calculation of the Earnings Period Revenue Amount,
<U>minus</U> (iv)&nbsp;any sales of third party products or services, or Netsmart University or
InfoScriber products and (v)&nbsp;Revenue related to the Accounts Receivable of Cleveland and Howard
listed on <U>Schedule&nbsp;5.9(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Liens</U>&#148; means (i)&nbsp;Liens for Taxes or governmental assessments, charges or
claims the payment of which is not yet due, or for Taxes the validity of which are being contested
in good faith by appropriate proceedings; (ii)&nbsp;statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, materialmen and other similar Persons and other Liens imposed by
Applicable Law incurred in the Ordinary Course of Business for sums not yet delinquent or being
contested in good faith; and (iii)&nbsp;Liens relating to deposits made in the Ordinary Course of
Business in connection with workers&#146; compensation, unemployment insurance and other types of social
security or to secure the performance of leases, trade contracts or other similar agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means an individual, corporation, partnership, limited liability company,
association, trust, unincorporated organization, Governmental Authority or other legal entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prime Rate</U>&#148; means the prime rate established by Bank of America as in effect from
time-to-time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>QS Budget</U>&#148; means the budgeted revenue, costs and expenses related to the Business for
the period beginning on the Closing Date and ending on December&nbsp;31, 2006 as set forth on
<U>Schedule&nbsp;B</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148; means any release, spill, emission, leaking, pumping, pouring, dumping,
emptying, injection, deposit, disposal, discharge, dispersal, leaching, or migration on or into the
environment or in, on, under, into or out of any property currently owned, leased or operated by
Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remedial Action</U>&#148; means those response actions, including any investigation, testing
or monitoring activities required by Environmental Law or by any Governmental Authority to clean
up, remove, contain, treat, investigate or abate any Hazardous Substance on or in connection with
any property (including, without limitation, actions to address Releases of Hazardous Substances to
the environment as of the Closing Date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revenue</U>&#148; shall mean the Buyer&#146;s revenue calculated in accordance with GAAP and, to
the extent not inconsistent with GAAP, the past practice of QS as reflected in the Financial
Statements, including but not limited to revenue from support, warranty, maintenance, services and
license sales but excluding any sales of third party products or services, or Netsmart University
or InfoScriber products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Disclosure Schedules</U>&#148; means the disclosure schedules with respect to this
Agreement concurrently delivered by Sellers to Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Material Adverse Effect</U>&#148; means a change, effect, fact, event or circumstance
which has had, or will likely have, a material adverse effect on, or a material adverse change in,
as the case may be, without regard to any potential insurance coverage or potential tax benefits
(with respect to any such event), the business, condition, financial or otherwise, assets,
liabilities, or results of operations of Sellers, taken as a whole; <U>provided</U>,
<U>however</U>, &#147;Seller Material Adverse Effect&#148; shall not include changes exclusively related to
(i)&nbsp;any event as to which Buyer has provided written consent hereunder; or (ii)&nbsp;the execution,
delivery or performance of this Agreement (including any announcement relating to this Agreement or
the fact that Buyer is acquiring the Transferred Assets).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Software Earn-Out Period</U>&#148; means the period commencing on the Closing Date and ending
on December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148; means, with respect to any Person, (i)&nbsp;any corporation as to which more
than 50% of the outstanding stock having ordinary voting rights or power (and excluding stock
having voting rights only upon the occurrence of a contingency unless and until such contingency
occurs and such rights may be exercised) is owned or controlled, directly or indirectly, by such
Person and/or by one or more of such Person&#146;s Subsidiaries and (ii)&nbsp;any partnership, joint venture
or other similar relationship between such Person (or any Subsidiary thereof) and any other Person
(whether pursuant to a written agreement or otherwise).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax</U>&#148; means all taxes imposed of any nature including federal, state, local or foreign
net income tax, alternative or add-on minimum tax, profits or excess profits tax, franchise tax,
gross income, adjusted gross income or gross receipts tax, employment related tax (including
employee withholding or employer payroll tax, FICA or FUTA), real or personal property tax or ad
valorem tax, sales or use tax, excise tax, stamp tax or duty, any withholding or back up
withholding tax, value added tax, severance tax, prohibited transaction tax, premiums tax,
environmental tax, intangibles tax or occupation tax, together with any interest or any penalty,
addition to tax or
</DIV>

<P align="center" style="font-size: 10pt">6
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">additional amount imposed by any Governmental Authority (domestic or foreign) responsible for
the imposition of any such tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Return</U>&#148; means all returns, reports, forms or other information required to be
filed with respect to any Tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Purchase Price</U>&#148; means (a)&nbsp;the Cash Component in accordance with <U>Section
2.7(a)</U> herein, (b)&nbsp;the Promissory Note to be issued to Seller by Buyer in accordance with
<U>Section&nbsp;2.7(b)</U> herein, (c)&nbsp;the Earn-Out Payments to be paid to Seller by Buyer in
accordance with <U>Section&nbsp;5.6</U> herein, <U>and</U> (d)&nbsp;the dollar amount of the Liabilities
assumed by Buyer in accordance with <U>Section&nbsp;2.3</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Vital Records Contract Awards</U>&#148; means the sum of (i)&nbsp;the dollar value of all contracts
for Vital Record Products awarded during the Software Earn-Out Period to New Customers, (ii)&nbsp;the
dollar value of all upgrade or additional contract awards for Vital Record Products to existing
customers during the Software Earn-Out Period, and (iii)&nbsp;any Revenue from existing contracts with
Identified Customers that is not included in the calculation of the Earnings Period Revenue Amount
<U>minus</U> (iv)&nbsp;any sales of third party products or services and (v)&nbsp;any Revenue related to the
Accounts Receivable of Nebraska listed on <U>Schedule&nbsp;5.9(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Vital Records Products</U>&#148; means Software Products so identified on <U>Schedule&nbsp;A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.2. <U>Index of Other Defined Terms</U>. In addition to those terms defined above,
the following terms shall have the respective meanings given thereto in the sections indicated
below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Defined Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Section</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Accounting Firm&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Agreement&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Assumed Contract&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Assumed Liabilities&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Assumed Warranties&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Business&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buyer&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buyer Indemnified Parties&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buyer Material Adverse Effect&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Buyer&#146;s Basket&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Cash Component&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Claim&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Claim Notice&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Closing&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Closing Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;COBRA&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Competitive Business&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Continuing Employee&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Copyrights&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Customer Contract&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(b)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">7
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Defined Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Section</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Dispute Notice&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Domain Names&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Earnings Indemnity Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Earnings Period EBIT-A Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Earnings Period Revenue Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Earn-Out Payment Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Earn-Out Statement&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Employee Benefit Plans&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.24</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Employment Agreements&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Environmental Permits&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.22(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Equipment&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;ERISA Affiliates&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.24</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Excluded Assets&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Excluded Liabilities&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Final EBIT-A Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Final Revenue Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Financial Statements&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Governmental Contracts&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.12(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Identified Customers&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Incentive Payments&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.24(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Indemnified Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Indemnifying Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Leased Real Property&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;License&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.9(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Loss&#148; or &#147;Losses&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Maintenance Earn-Out Payment&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Material Contracts&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Negotiation Period&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Other Software Earn-Out Payment&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Patents&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Performance Liability&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Post-Closing Tax Period&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.3</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;PTO&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.9(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Pre-Closing Tax Period&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.3</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Price Allocation&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Products&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Promissory Note&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Proposed Closing Balance Sheet&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Proposed Earnings Calculations&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Proposed Revised Earnings Calculations&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Receivables&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Review Period&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;SEC Reports&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Seller&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Seller Indemnified Party&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Seller Representatives&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Sellers&#146; Basket&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.5(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Services&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(a)</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Defined Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Section</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Software&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Submission Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Third-Party Claim&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Trademarks&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Trade Secrets&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Transferred Assets&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Unearned Revenue&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Vital Records Earn-Out Payment&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6(b)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 2<BR>
TRANSFER OF ASSETS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.1. <U>Transfer of Assets by Seller</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of this Agreement and in reliance upon the
representations, warranties and agreements herein set forth, Buyer agrees to purchase from Sellers
and Sellers agree to sell or cause to be sold to Buyer at the Closing, free and clear of all Liens,
other than Permitted Liens, certain of the assets, properties, rights, licenses, permits,
contracts, causes of action, claims and operations relating to or used in connection with the
Business (except for the Excluded Assets), wherever located, whether tangible or intangible, real,
personal or mixed, that are owned by, leased or licensed by, or in the possession or control of,
Sellers (the collective assets, properties, rights, licenses, permits, contracts, causes of action,
claims, operations and businesses to be transferred to Buyer by Sellers pursuant hereto are
referred to collectively herein as the &#147;<U>Transferred Assets</U>&#148;). Without limiting the
generality of the foregoing, the Transferred Assets shall include all of Sellers&#146; right, title and
interest in and to the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all computer equipment (including all hardware, servers, software (other than
off-the-shelf software) and other Information Technology), communications equipment, spare and
replacement parts and other tangible property (and interests in any of the foregoing) of Sellers as
set forth on <U>Schedule&nbsp;2.1(a)</U> (collectively, the &#147;<U>Equipment</U>&#148;), together with all
warranties and licenses issued to Seller in connection with the Equipment, and any claims, credits
and rights of recovery with respect to the Equipment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all of the Contracts to which Seller is a party (and Seller&#146;s rights thereunder) that are
(i)&nbsp;set forth on <U>Schedule&nbsp;2.1(b),</U> (ii)&nbsp;not in default and as to which no claim of default
exists on the Closing Date, and (iii)&nbsp;enforceable by Buyer without the consent of a third party (or
for which a consent is obtained on or prior to the Closing Date) (collectively, the &#147;<U>Assumed
Contracts</U>&#148;); including but not limited to Contracts under which QS licenses software or
provides services to QS&#146; customers (&#147;<U>Customer Contracts</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all source code and object code Software for the Products;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all prepaid charges, expenses and work-in-process of Sellers relating to the Transferred
Assets, including any such charges and expenses with respect to leases and rentals;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;all rights of Sellers to insurance proceeds with respect to claims for Damages to the
Transferred Assets, unless such proceeds reimburse Sellers for the previously completed repair or
restoration of such Transferred Assets;
</DIV>



<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all of Sellers&#146; rights, claims, credits, causes of action or rights of set-off against
third parties relating to, or arising in connection with, the Business or the Transferred Assets
(other than those relating exclusively to Excluded Liabilities), whether liquidated or
unliquidated, fixed or contingent, including claims pursuant to all warranties, representations and
guarantees made by suppliers, manufacturers, contractors and other third parties in connection with
products or services purchased by or furnished to QS;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;except as set forth in <U>Section&nbsp;2.2(e)</U>, all records, files and papers of Sellers
related to the Business and currently in its possession (which Sellers acknowledge constitutes all
records, files and papers related to the Business and currently in their possession), whether in
hard copy or computer format, including invoices, sales and promotional literature, manuals and
data, sales and purchase correspondence, and documentation developed or used for accounting,
marketing, design, engineering, manufacturing or any other purpose related primarily to the conduct
of the Business at any time prior to the Closing, including all creative materials, advertising and
promotional materials and all other printed or written materials and a copy of QS&#146;s employment
records, to the extent Sellers are permitted by law to provide such employment records to Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all lists and records pertaining to present, former and prospective customers, and
suppliers of the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all Intellectual Property, Confidential Information, and other intangible assets of such
nature, including all agreements pertaining to the foregoing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all goodwill associated with the Business and the Transferred Assets, including, but not
limited to, the name &#147;QS Technologies&#148; and all derivations thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.2. <U>Excluded Assets</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, Sellers will retain and not transfer, convey,
assign or deliver to Buyer, and neither Buyer nor any of Buyer&#146;s Affiliates will acquire any right,
title or interest in or to any of the following assets (collectively, the &#147;<U>Excluded
Assets</U>&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all cash and cash equivalents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all accounts receivable, together with any unpaid interest or fees accrued thereon or
other amounts due with respect thereto, of QS existing on the Closing Date and any security or
collateral therefor, including recoverable advances and deposits (collectively, the
&#147;<U>Receivables</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all rights to causes of action, lawsuits, claims and demands of any nature available to or
being pursued by Seller with respect to the Excluded Assets or the Excluded Liabilities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Sellers&#146; rights under this Agreement, the Bill of Sale and Assumption Agreement and the
Promissory Note;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Sellers&#146; organizational records, minute books, tax records, employment records, and a copy
of all of Seller&#146;s financial and accounting records;
</DIV>



<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The agreement between QS and Parent pursuant to which Parent provides certain
administrative, accounting and personnel services to QS; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Any amounts owed to QS from any of its Affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.3. <U>Assumption of Liabilities</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the terms and subject to the conditions of this Agreement and in reliance upon the
representations, warranties and agreements herein set forth, Buyer agrees, effective at the time of
Closing, to assume, timely perform and timely discharge only the following Liabilities with respect
to the Business and the Transferred Assets (collectively, the &#147;<U>Assumed Liabilities</U>&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all executory obligations of QS under, or arising after the Closing out of, the Assumed
Contracts, including those necessary to enable Buyer to recognize the unearned revenue identified
on the Balance Sheet (&#147;<U>Unearned Revenue</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all obligations of QS with respect to product warranties and service contracts related to
the Assumed Contracts (collectively, the &#147;<U>Assumed Warranties</U>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all Liabilities of the Business relating to the Transferred Assets (other than Excluded
Liabilities) to the extent resulting from events or conditions occurring or arising on or after the
Closing Date; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all Liabilities of QS related to Accounts Payable, Accrued Commissions, Accrued Payroll,
Employee vacation pay, and Unearned Revenue to the extent such accruals are set forth in the
Closing Balance Sheet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Notwithstanding the foregoing, in the event that the Closing Balance Sheet shall reflect
current assets and property, plant and equipment of less than $190,000, current liabilities of more
than $262,500 or unearned revenue of less than $1,760,000, then the Assumed Liabilities shall be
reduced by an amount sufficient to ensure that the total dollar amount of Assumed Liabilities, net
of the value of the Transferred Assets, shall not exceed $2,050,000 (such amount being the
&#147;Liability Adjustment&#148;); provided that no such adjustment shall be required in the event that the
amount of the Liability Adjustment so calculated shall be less than $50,000. For the avoidance of
doubt, Buyer and Sellers agree that in the event the Liability Adjustment is equal to or exceeds
$50,000, one or more liabilities in the amount of Liability Adjustment and previously included as
an Assumed Liability shall be retained by Sellers and shall become an Excluded Liability; provided,
however, Sellers shall in no event be obligated to retain any Assumed Liability that consists
solely of a performance obligation as opposed to an obligation to pay money (a &#147;Performance
Liability&#148;). In the event the Assumed Liabilities other than Performance Liabilities are
insufficient to effect the adjustment contemplated by this Section, the Buyers shall be entitled to
a set-off against the Promissory Note in the amount of the Liability Adjustment not eligible to be
retained by Sellers in accordance with the preceding sentence, which set off shall be applied
to payments under the Promissory Note in the manner provided in <U>Section&nbsp;9.12</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.4. <U>Excluded Liabilities</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for the Assumed Liabilities, Buyer does not assume, agree to perform or discharge,
indemnify Sellers against, or otherwise have any responsibility for any Liabilities of Sellers,
</DIV>

<P align="center" style="font-size: 10pt">11
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">whether fixed or contingent, and whether arising prior to, on or after the Closing Date (the
&#147;<U>Excluded Liabilities</U>&#148;), including, without limitation, any of the following Liabilities:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any Indebtedness of QS other than to the extent arising following the Closing Date under
any of the Assumed Contracts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any Liability of Sellers for Taxes relating to the Business or the Transferred Assets
attributable to any period prior to the Closing Date including any Liability of Sellers for such
periods for the unpaid taxes of any Person as a transferee or successor, by contract or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any Liability of Sellers to indemnify any Person by reason of the fact that such Person
was a director, officer, employee or agent of either Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any Liability of Sellers to any stockholder or Affiliate of Sellers other than pursuant to
any Assumed Contract;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Liability of Sellers arising out of or resulting from non-compliance with any
Applicable Law with respect to the Business prior to the Closing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;except as specifically provided in <U>Section&nbsp;2.3(d)</U>, any Liability of Sellers for
making payments or providing benefits of any kind to any current or former employees that accrued
or arose prior to the Closing Date, including, without limitation, (A)&nbsp;any Liability to provide any
such employees notices and continuation of health benefit coverage required to be provided to all
employees or the beneficiaries or dependents of such employees, under Part&nbsp;6 of Subtitle B of Title
I of ERISA, Section&nbsp;4980B(f) of the Code and state or local laws with the same or similar purpose
(herein collectively referred to as &#147;<U>COBRA</U>&#148;), (B)&nbsp;any Liability in respect of medical and
other benefits for retirees, (C)&nbsp;any Liability in respect of work related employee injuries or
workmen&#146;s compensation claims, and (D)&nbsp;any Liability of Seller with respect to any severance
obligations owed to employees of Seller resulting from any termination initiated by Seller on or
before the Closing Date, except to the extent such obligations arise from the failure of Buyer
fully to perform its obligations under Section&nbsp;5.3 hereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;expenses incurred by Sellers in connection with the transactions contemplated herein,
including, without limitation, fees and expenses of Seller&#146;s counsel and accountants;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;any obligation or liability of Sellers to the Buyer created by this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any Liability, whether presently existing or hereafter arising, which is attributable
solely to an Excluded Asset;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;any Liability arising from Sellers&#146; failure to comply with the bulk transfer laws of any
applicable jurisdiction with respect to the consummation of the transactions contemplated hereby;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;any Liability for uncleared checks of Sellers or the bank accounts of Sellers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;any Liability resulting from or relating to any Actions against Sellers based on events,
circumstances or conditions occurring or existing prior to Closing; and
</DIV>



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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;any Liability not otherwise constituting an Assumed Liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.5. <U>Assignment of Contracts and Rights</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to any Contract as to which the terms thereof require the consent of a third
party for the assignment of such Contract to Buyer and such consent has not been obtained on or
before the Closing Date:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;promptly after the date hereof, to the extent requested by Buyer, Sellers will use their
best efforts to obtain the written consent of the other parties to any such Contract for the
assignment of such Contract to Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers and Buyer shall cooperate in an arrangement reasonably satisfactory to Buyer and
Sellers under which Buyer will obtain, to the extent practicable, the claims, rights and benefits
of such Contract and assume the corresponding obligations thereunder in accordance with this
Agreement, including subcontracting, sub-licensing or sub-leasing to Buyer, or under which Sellers
would enforce for the benefit of Buyer, with Buyer assuming QS&#146; obligations, any and all claims,
rights and benefits of QS against a third party thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to the provisions of <U>Section&nbsp;5.9</U>, and until the transfer of such Contract
to Buyer pursuant to this <U>Section&nbsp;2.5, </U>Sellers will promptly pay to Buyer all monies
received by Sellers under any such Contract or any claim, right or benefit arising thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon the receipt of the written consent pursuant to <U>Section&nbsp;2.5(a)</U>, or at such
earlier time as Buyer shall waive Sellers&#146; obligations under this <U>Section&nbsp;2.5</U>, such
Contract will become an &#147;<U>Assumed Contract</U>&#148; hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.6. <U>Closing</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The closing (the &#147;<U>Closing</U>&#148;) of the transactions contemplated by this Agreement shall
take place at the offices of Kramer, Coleman, Wactlar &#038; Lieberman, 100 Jericho Quadrangle, Jericho,
New York, on the date of this Agreement (the &#147;<U>Closing Date</U>&#148;), or simultaneously at such
office and one or more other offices by means of fax, email or other electronic delivery of
documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.7. <U>Purchase Price</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the sale, transfer, conveyance, and assignment of the Transferred Assets
by Seller to Buyer at the Closing, and in reliance upon both the representations and warranties of
Sellers made herein and the faithful performance by Sellers of their covenants herein, Buyer agrees
to assume the Assumed Liabilities in accordance with <U>Section&nbsp;2.3</U> and to pay to Sellers
the Total Purchase Price as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Cash Component</U>: at the Closing, to Parent, the sum of $1,900,000 (the &#147;<U>Cash
Component</U>&#148;). The payment of the Cash Component shall be made by wire transfer in immediately
available funds to such bank account as Parent shall have designated in writing to Buyer no less
than one (1)&nbsp;Business Day prior to Closing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Promissory Note</U>: a promissory note of Netsmart payable to the order of Parent in
the principal amount of $1,435,000, which principal amount shall bear interest at the
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Prime Rate at
Closing and be fully amortized in equal monthly installments over a 36-month period, in the form of
<U>Exhibit&nbsp;A</U> hereto (the &#147;<U>Promissory Note</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Earn-Out Payments</U>. Buyer shall pay certain Earn-Out Payments to Sellers as
provided in <U>Section&nbsp;5.6</U> of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.8. <U>Closing Balance Sheet.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within thirty (30)&nbsp;days after the Closing Date, Sellers shall prepare and present to Buyer a
balance sheet as of July&nbsp;31, 2006 (the &#147;<U>Proposed Closing Balance Sheet</U>&#148;), which Proposed
Closing Balance Sheet shall be prepared so that it presents fairly, in all material respects, the
financial position of QS as of the Closing Balance Sheet Date with respect to the Transferred
Assets and Assumed Liabilities, in accordance with GAAP and, to the extent not inconsistent with
GAAP, past practice of QS. The Proposed Closing Balance Sheet shall be binding upon the parties to
this Agreement on the thirtieth (30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) day after Buyer&#146;s receipt of the Proposed Closing
Balance Sheet unless (i)&nbsp;Buyer gives written notice of agreement with the Proposed Closing Balance
Sheet to Sellers prior to such date (in which event the Proposed Closing Balance Sheet shall be
binding upon the parties as of the date of Sellers receipt of such notice) or (ii)&nbsp;Buyer gives
written notice of disagreement with any of the values or amounts contained therein to Sellers prior
to such date, specifying in reasonable detail the nature and extent of such disagreement. If Buyer
and Sellers mutually agree upon the Proposed Closing Balance Sheet after Sellers&#146; receipt of a
notice of disagreement from Buyer, such agreement shall be binding upon the parties to this
Agreement. Buyer and Sellers shall use best efforts to resolve any disagreements concerning the
Proposed Closing Balance Sheet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.9. <U>Calculation of Earnings Period Financial Results; Indemnification </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On or before the thirtieth day following the preparation of audited financial statements
of Buyer for the fiscal year ending December&nbsp;31, 2006 but no later than April&nbsp;30, 2007, Buyer will
prepare and present to the Sellers a calculation of the Revenue and the EBIT-A for the Earnings
Period (the &#147;<U>Proposed Earnings Calculations</U>&#148;), which Proposed Earnings Calculations shall
provide line item detail at least as detailed as that provided in the QS Budget and shall identify
all sources of Revenue, including but not limited to customers named in the QS Budget (the
&#147;<U>Identified Customers</U>&#148;). The parties agree that the Proposed Earnings Calculations shall
be prepared in accordance with GAAP and, to the extent not inconsistent with GAAP, past practices
of QS; provided however, Revenue shall not include the amounts associated with the Accounts
Receivable identified on <U>Schedule&nbsp;5.9(b)</U> for Cleveland, Howard and Nebraska, but shall
include the
amount identified on <U>Schedule&nbsp;5.9(c)</U> for the Ohio Death module to the extent that such
Revenue is recognizable by the date when the Proposed Earnings Calculation is due. Notwithstanding
the above, Buyer agrees that the costs and expenses included in the calculation of the Proposed
Earnings Calculations (i)&nbsp;shall be consistent with the types and amounts of historical expenses and
budgeted expenses as shown in the QS Budget; (ii)&nbsp;shall be consistent with the conduct of the
Business prior to the Closing Date, (iii)&nbsp;shall not include any allocation of corporate overhead or
other types or amounts for charges or expenses not associated with the Business prior to the
Closing Date or not included in the QS Budget; (iv)&nbsp;shall not include any costs or expenses related
to the transactions contemplated in this Agreement; and (v)&nbsp;shall include any amounts payable by
Netsmart under the lease for the Leased Real Property. Furthermore, the Revenue included in the
Proposed Earnings Calculations shall include any Unearned Revenue transferred to Buyer that
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Buyer
determines it may not be permitted to recognize but which would have been otherwise earned by QS
under GAAP during the Earnings Period if the sale to Buyer had not occurred. Buyer and Sellers
acknowledge and agree that pro forma adjustments may be required to the audited financial
statements in order to prepare the Proposed Earnings Calculations as required hereunder. The
Revenue and EBIT-A for the Earnings Period, as finally determined pursuant to <U>Section
2.9(a)</U> and agreed to by the parties in accordance with <U>Section&nbsp;2.9(c)</U> is referred to
herein as the &#147;<U>Earnings Period Revenue Amount</U>&#148; or &#147;<U>Earnings Period EBIT-A Amount</U>,&#148;
as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event that the Earnings Period Revenue Amount is less than $1,995,000 or the
Earnings Period EBIT-A Amount is less than $1,045,000, Buyer will prepare and present to the
Sellers a revised calculation of (i)&nbsp;the Revenue for the Earnings Period plus the Revenue
attributable to the Identified Customers for the period from January&nbsp;1, 2007 through January&nbsp;31,
2007, and (ii)&nbsp;the EBIT-A for the Earnings Period plus the EBIT-A attributable to the Identified
Customers for the period from January&nbsp;1, 2007 through January&nbsp;31, 2007 (the &#147;<U>Proposed Revised
Earnings Calculations</U>&#148;). The parties agree that the Proposed Revised Earnings Calculations
shall be prepared in accordance with <U>Section&nbsp;2.9(a)</U> above. The Revenue and EBIT-A, as
finally determined pursuant to <U>Section&nbsp;2.9(b)</U> and agreed to by the parties in accordance
with <U>Section&nbsp;2.9(c)</U> is referred to herein as the &#147;<U>Final Revenue Amount</U>&#148; or
&#147;<U>Final EBIT-A Amount</U>,&#148; as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Proposed Earnings Calculations or Proposed Revised Earnings Calculations, as the case
may be, shall be binding upon the parties to this Agreement unless Sellers give written notice of
disagreement with any of said values or amounts or items in the Proposed Earnings Calculations or
Proposed Revised Earnings Calculations to Buyer within fifteen (15)&nbsp;Business Days after its receipt
of the Proposed Earnings Calculations or Proposed Revised Earnings Calculations, specifying in
reasonable detail the nature and extent of such disagreement. The parties shall use best efforts
to resolve any disagreement timely raised by Sellers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event that the Final Revenue Amount is less than $1,995,000 or the Final EBIT-A
Amount is less than $1,045,000, Buyer shall be entitled to receive from Sellers an amount of
liquidated damages (the &#147;<U>Earnings Indemnity Amount</U>&#148;) in an amount equal to the greater of
(i)&nbsp;50% of the amount by which the Final Revenue Amount is less than $2,100,000, and (ii)&nbsp;100% of
the amount by which Final EBIT-A Amount is less than $1,100,000, which Earnings Indemnity Amount
shall be payable solely by means of a set-off against the amounts payable under the Promissory
Note, which set off shall be applied to payments under the Promissory Note in the manner provided
in <U>Section&nbsp;9.12</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.10. <U>Closing Deliveries</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Closing, to be held simultaneously with the execution and delivery of this
Agreement, Sellers shall deliver, or cause to be delivered, to the Buyer the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A copy of resolutions duly adopted by Sellers, authorizing the execution,
delivery and performance of this Agreement and the Bill of Sale and Assumption
Agreement, and a certificate of the respective secretaries of Sellers, dated the
Closing Date, to the effect that such resolutions were duly adopted and are in full
force and effect as of the Closing Date;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A duly executed counterpart of the Bill of Sale and Assumption Agreement in
form and substance reasonably satisfactory to Buyer, and any other instruments of
transfer necessary to transfer ownership to Buyer of the Transferred Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Instruments that shall be effective to transfer to Buyer all of Sellers&#146;
right, title and interest in and to the Intellectual Property of Sellers included in
the Transferred Assets in form suitable for filing with the necessary Governmental
Authorities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A certificate of good standing from the Secretary of State of QS&#146;
jurisdiction of incorporation and from the Secretary of State of each jurisdiction in
which QS is qualified to do business as set forth on <U>Schedule&nbsp;3.1</U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A certificate of good standing from the Secretary of State of Parent&#146;s
jurisdiction of incorporation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such other and further documents, instruments, certificates and agreements
reasonably deemed by Buyer&#146;s counsel to be necessary to effectuate the transactions
contemplated by this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At the Closing, and simultaneously with the execution and delivery of this Agreement, the
Buyer shall deliver, or cause to be delivered, to Sellers the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A copy of resolutions duly adopted by Buyer, authorizing the execution,
delivery and performance of this Agreement and the Bill of Sale and Assumption
Agreement, and a certificate of the secretary of Buyer, dated the Closing Date, to
the effect that such resolutions were duly adopted and are in full force and effect
as of the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A copy of resolutions duly adopted by Netsmart, authorizing the execution,
delivery and performance of this Agreement and the Bill of Sale and Assumption
Agreement, and a certificate of the secretary of Netsmart, dated the Closing Date, to
the effect that such resolutions were duly adopted and are in full force and effect
as of the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A duly executed counterpart of the Bill of Sale and Assumption Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The duly executed Promissory Note;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A certificate of good standing from the Secretary of State of Buyer&#146;s
jurisdiction of incorporation and from the Secretary of State of the jurisdiction in
which Buyer maintains its principal place of business; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such other and further documents, instruments, certificates and agreements
reasonably deemed by Sellers&#146; counsel to be necessary to effectuate the transactions
contemplated by this Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.11. <U>Purchase Price Allocation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For all Tax purposes, the Total Purchase Price, increased by the portion of the Assumed
Liabilities that is treated as consideration for the Transferred Assets for federal income tax
purposes, shall be allocated to the Transferred Assets in accordance with Section&nbsp;1060 of the Code
and the Treasury regulations promulgated thereunder (&#147;<U>Price Allocation</U>&#148;). The Price
Allocation shall be proposed by Buyer and thereafter agreed to by the parties, and each party
hereto shall adopt and utilize the Price Allocation for purposes of all Tax Returns filed by them
and shall not voluntarily take any position inconsistent with the foregoing in connection with any
examination of any Tax Return, any refund claim, any litigation proceeding or otherwise, except
that Buyer&#146;s cost for the Transferred Assets may differ from the amount so allocated to the extent
necessary to reflect Buyer&#146;s capitalized acquisition costs other than the amount realized by
Sellers. In the event that the Price Allocation is disputed by any Governmental Authority, the
party receiving notice of the dispute shall promptly notify the other parties hereto of such
dispute and the parties hereto shall cooperate in good faith in responding to such dispute in order
to preserve the effectiveness of the Price Allocation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each party agrees to timely file an IRS Form&nbsp;8594 reflecting the Price Allocation for the
taxable year that includes the Closing Date and to make any timely filings required by Applicable
Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any indemnification payment by Sellers, including by way of a reduction in amounts payable
under the Promissory Note, shall be treated as an adjustment to the Total Purchase Price paid for
the Transferred Assets for tax purposes. Such adjustment shall be reflected as an adjustment to the
price allocated to a specific asset, if any, giving rise to the adjustment. If any such adjustment
does not relate to a specific asset, such adjustment shall be allocated among the Transferred
Assets in accordance with the Price Allocation method provided in <U>Section&nbsp;2.11(a)</U> above.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 3<BR>
REPRESENTATIONS AND WARRANTIES OF SELLERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sellers jointly and severally hereby represent and warrant to Buyer as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.1. <U>Organization and Qualification</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of QS and Parent is a corporation duly organized, validly existing and in good standing
under the laws of the State of Georgia and has all corporate power and authority to own, lease and
operate the Transferred Assets and to carry on the Business as now being conducted. QS is duly
qualified or licensed and in good standing in each jurisdiction set forth on <U>Schedule&nbsp;3.1</U>,
which is each jurisdiction where the nature of the activities conducted by Business or the
character of the property or assets owned, leased or operated by the Business makes such
qualification or licensing necessary, except in jurisdictions where the failure to be so duly
qualified or licensed and in good standing has not had and would not have a Seller Material Adverse
Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.2. <U>Authority Relative to this Agreement</U>.
</DIV>



<P align="center" style="font-size: 10pt">17
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by Sellers of this Agreement and the consummation by
Sellers of the transactions contemplated hereby are within Sellers&#146; corporate powers and have been
duly authorized by all requisite action on the part of each Seller. This Agreement and the Bill of
Sale and Assumption Agreement have been duly and validly executed and delivered by each Seller
which is a party thereto and each constitutes a legal, valid and binding agreement of such Seller
enforceable against such Seller in accordance with its respective terms, except as the enforcement
thereof may be subject to, or limited by, applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting the enforcement of creditors&#146; rights generally, and subject to
the application of equitable principles and the availability of equitable remedies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.3. <U>Subsidiaries</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QS has no Subsidiaries. QS owns no interest, directly or indirectly, and has no commitment to
purchase any interest, direct or indirect, in any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.4. <U>Financial Statements</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Copies of the income statements for QS for the years ended December&nbsp;31, 2003, 2004 and
2005, which are consistent with the income statements included in the consolidated financial
statements of Parent that have been audited by an independent, registered public accounting firm,
have been provided to Buyer and are set forth on <U>Schedule&nbsp;3.4(a)</U> (together with the Balance
Sheet which has been provided to the Buyer, the &#147;<U>Financial Statements</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Financial Statements (i)&nbsp;are complete, true and correct in all material respects, (ii)
were prepared in conformity with GAAP applied on a consistent basis in accordance with past
practice, and (iii)&nbsp;present fairly the financial position and results of operations of QS,
respectively, as of the dates thereof and for the periods then ended as referred to therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Other than to the extent disclosed or reserved for in the Balance Sheet, or otherwise
disclosed in the Seller Disclosure Schedules to this Agreement, QS has no Liabilities, commitments
or obligations of any nature whatsoever (whether accrued, absolute, contingent, known, unknown,
asserted, unasserted or otherwise, and whether due or to become due) except Liabilities,
commitments and obligations incurred in the Ordinary Course of Business since the Balance Sheet
Date which do not exceed in the aggregate $25,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The books of account and other financial records of QS are complete and accurate in all
material respects and have been maintained in a manner and to an extent sufficient to enable the
Financial Statements to be prepared in accordance with GAAP and as represented in (a), (b)&nbsp;and (c)
of this <U>Section&nbsp;3.4</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.5. <U>Consents and Approvals; No Conflicts or Violations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No filing with or notice to and no permit, authorization, consent or approval of any
Governmental Authority is necessary for the execution and delivery by Sellers of this Agreement or
the Bill of Sale and Assumption Agreement to which such Seller is a party or the consummation by
Sellers of the transactions contemplated hereby or thereby, except for any required consent to the
transfer of an Assumed Contract which either has been obtained or is listed on <U>Schedule
3.5(b)</U>.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither the execution, delivery and performance of this Agreement or the Bill of Sale and
Assumption Agreement by Sellers nor the consummation by Sellers of the transactions contemplated
hereby or thereby will (i)&nbsp;conflict with or result in any breach of any provision of the Articles
of Incorporation and By-laws of each Seller, (ii)&nbsp;except as set forth on <U>Schedule&nbsp;3.5(b)</U>,
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
or Lien) under any of the terms, conditions or provisions of any Contract relating to the Business
or the Transferred Assets, or (iii)&nbsp;violate any Applicable Law binding on or applicable to a Seller
or any of the Transferred Assets except, in the case of (ii)&nbsp;or (iii), (A)&nbsp;as set forth on
<U>Schedule&nbsp;3.5(b)</U> and for (B)&nbsp;such other violations, breaches or defaults that do not have
and would not reasonably be likely to have a Seller Material Adverse Effect or adversely affect the
Sellers&#146; ability to enter into and perform its obligations under this Agreement or the Bill of Sale
and Assumption Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.6. <U>Litigation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no Action pending or, to the Knowledge of Sellers, threatened by or against a Seller
with respect to the Business or relating to any the Transferred Assets before any Governmental
Authority, in each case, (i)&nbsp;that individually or in the aggregate, by its existence or by an
adverse determination: (A)&nbsp;has or could be reasonably expected to have a Seller Material Adverse
Effect, (B)&nbsp;could prevent, hinder or delay the execution and performance of this Agreement or the
Bill of Sale and Assumption Agreement or the consummation of the transactions contemplated hereby
or thereby, or (C)&nbsp;could result in this Agreement or the Bill of Sale and Assumption Agreement
being declared unlawful or cause the rescission of any of the transactions contemplated hereby or
thereby or (ii)&nbsp;in which the amount of damages asserted in writing exceeds $50,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.7. <U>Compliance with Applicable Law</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Seller holds all permits, licenses, variances, exemptions, orders and approvals of all
Governmental Authorities necessary for the lawful conduct of the Business and the use of the
Transferred Assets in the same manner and extent to which it is currently conducted, except where
such failures to hold such permits, licenses, variances, exemptions, orders and approvals,
individually or in the aggregate, do not have and are not reasonably likely to have a Seller
Material Adverse Effect. Sellers have not been charged by any Governmental Authority with, or
received notice from any Governmental Authority of, any violation of any Applicable Law relating to
it, or the operation of the Business, nor, to the Knowledge of Sellers, is there any threatened
claim of such violation (including any investigation) or any reasonably basis therefor. The
Business has been conducted in compliance with all Applicable Laws, except where noncompliance with
Applicable Laws, individually or in the aggregate, does not have and is not reasonably likely to
have a Seller Material Adverse Effect. This <U>Section&nbsp;3.7</U> does not address compliance with,
or permits, licenses, variances, exemptions, orders or approvals required under, Environmental Law,
which are addressed solely in <U>Section&nbsp;3.22</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.8. <U>Labor Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;There are no pending or, to the Knowledge of Sellers, threatened charges, complaints,
petitions or grievances before any Governmental Authority relating to or predicated upon a
violation of Applicable Law regarding employment, employment practices or terms and conditions of
employment, including charges of unfair labor practices, unlawful discharge,
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">discrimination,
harassment or hostile work environment with respect to any of the employees of the Business, nor to
the Knowledge of Sellers, is there any basis for any such charges, complaints, petitions or
grievances. QS is not a party to any collective bargaining agreement or other labor union contract
applicable to persons employed by QS with respect to the Business. No employee of the Business is
employed by Parent. No strikes, slowdowns, work stoppages, or lockouts have occurred nor, to the
Knowledge of Sellers, have there been any threats thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;None of the employees identified on <U>Schedule&nbsp;3.8</U> has given notice to a Seller of
his or her intention to resign prior to the Closing Date or, to the Knowledge of Sellers, is
intending to do so.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.9. <U>Intellectual Property</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;3.9(a)</U> lists (i)&nbsp;all registered Trademarks, and all pending applications
for Trademarks; (ii)&nbsp;all registered Copyrights, and all pending applications for Copyrights; and
(iii)&nbsp;all Domain names. <U>Schedule&nbsp;3.9(a)</U> lists all common-law Trademarks owned by a Seller
that are material to the Business and owned by Sellers. Sellers do not own any Patents or foreign
Trademarks or Copyrights related to the Business. Except for the Intellectual Property identified
on <U>Schedule&nbsp;3.9(a)</U>, Sellers do not own any other Intellectual Property that is material to
the Business and required to be disclosed on <U>Schedule&nbsp;3.9(a)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Schedule&nbsp;3.9</U>(b)&nbsp;lists all licenses, sublicenses, agreements or instruments
involving the Intellectual Property (other than licenses granted by Sellers under Customer
Contracts and agreements signed by QS employees under its standard confidentiality and Intellectual
Property ownership agreement) including (i)&nbsp;licenses by QS to any Person of any Intellectual
Property, and (ii)&nbsp;licenses by any other Person to a Seller of any Intellectual Property (except
with respect to generally available &#147;off-the-shelf&#148; software) (each, a &#147;<U>License</U>&#148;). Each
License set forth on <U>Schedule&nbsp;3.9(b)</U> is a valid and binding agreement, in full force and
effect and enforceable against the Seller party thereto, and to the Knowledge of Sellers, against
the other parties thereto in accordance with its terms. With respect to each License, there is no
default (or event that with the giving of notice or passage of time would constitute a default) by
a Seller, or, to the Knowledge of Sellers, the other party thereto. There are no pending, or, to
the Knowledge of Sellers, threatened claims with respect to any License. True and complete copies
of all Licenses have been made available to the Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Sellers have good and valid title to, or otherwise possesses the rights to use, all
Intellectual Property necessary for the conduct of the Business in the same manner as it is being
conducted on the Closing Date. Neither the consummation of the transactions contemplated by this
Agreement nor Sellers&#146; performance hereunder will result in the diminution, transfer, termination
or forfeiture of a Seller&#146;s rights in the Intellectual Property or Licenses. Except for
Intellectual Property owned by third parties and licensed to a Seller pursuant to the Licenses, to
the Knowledge of Sellers, no Person other than a Seller has any right or interest of any kind or
nature in or with respect to the Intellectual Property, or any portion thereof, or any rights to
sell, license, lease, transfer or use or otherwise exploit the Intellectual Property or any portion
thereof, except that the customers of QS have licensed Software Products from QS in the Ordinary
Course of Business. All officers, employees and independent contractors of Sellers who have
created Intellectual Property have executed a binding and enforceable agreement under which all
rights, title and ownership in and to such Intellectual Property have been assigned to a Seller.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Person has notified a Seller that it has in the conduct of the Business, infringed
upon, misappropriated or misused, any intellectual property or proprietary information of another
Person, and, to the Knowledge of Sellers, each Seller in the conduct of the Business has not
infringed upon, misappropriated or misused, any intellectual property or proprietary information of
another Person. There are no pending or, to the Knowledge of Sellers, threatened claims or
proceedings in which Sellers&#146; ownership or use of the Intellectual Property has been or will be
challenged by another Person. To the Knowledge of Sellers, no Person is infringing upon,
misappropriating, or otherwise violating Sellers&#146; rights to the Intellectual Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Sellers own full and unencumbered right and good, valid and marketable title or has
valid licenses to all Software included in the Products. The Software owned by the Sellers is free
and clear of all Liens, except Permitted Liens. No Seller has incorporated any Intellectual
Property owned by another Person into the Products or the Software, except as set forth on
<U>Schedule&nbsp;3.9(e)</U>. Except as set forth on <font style="white-space: nowrap"><U>Schedule&nbsp;3.9(e)</U>,</Font> no open source or public
library software, including any version of any software licensed pursuant to any GNU public
license, is, in whole or in part, embodied or incorporated in the Software. Sellers employ
commercially reasonable measures to ensure that the Software used in connection with the Business
contain no &#147;viruses&#148; which, for the purposes of this Agreement, means any computer code
intentionally designed to disrupt, disable or harm in any manner the operation of any Software or
hardware.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Sellers have taken commercially reasonably measures to protect the proprietary nature of
the Intellectual Property and to maintain in confidence all Confidential Information. To the
Knowledge of Sellers, no Confidential Information of a Seller used in connection with the Business
has been disclosed to any third party, other than pursuant to a non-disclosure or confidentiality
agreement or other conditional obligation intended to protect such Seller&#146;s proprietary interests
in and to such Confidential Information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Trademarks: (i)&nbsp;All registered Trademarks, and pending applications for Trademarks with
the United States Patent and Trademark Office (&#147;<U>PTO</U>&#148;) or any other trademark office, are
currently in material compliance with all Applicable Law (including the filing of affidavits of use
and renewal applications as applicable), and are not subject to any maintenance fees or Taxes or
Actions falling due within ninety (90)&nbsp;days after the Closing Date; (ii)&nbsp;No Trademark has been or
is now involved in any opposition, infringement, dilution, unfair competition or cancellation
proceeding and, to the Knowledge of Sellers, no such Action is threatened with respect to any of
the Trademarks; (iii)&nbsp;No Trademark is alleged to infringe any trade name, trademark or service mark
of any other Person and, to the Knowledge of Sellers, no Trademark is currently being infringed
upon by any other Person; (iv)&nbsp;All Products displaying a Trademark which has been registered with
the PTO bear the proper federal registration notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Intellectual Property (including, to the Knowledge of Sellers, the Intellectual
Property licensed to Sellers by third parties), is free and clear of any and all Liens, except for
Permitted Liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;To the Knowledge of Sellers, there has been no breach of security involving any websites
or information assets of Sellers in connection with the Business. All data which has been
collected, stored, maintained or otherwise used by Sellers in connection with the Business has been
collected, stored, maintained and used in accordance with Applicable Law and industry standards,
except where such noncompliance, individually or in the aggregate, does not have and
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">would not
reasonably be expected to have a Seller Material Adverse Effect. No Seller has been notified of
noncompliance with Applicable Law regarding protection of data or industry standards pertaining
thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;All Contracts for the lease or license of Information Technology or arrangements relating
to the maintenance and support, security, disaster recovery management and utilization (including
facilities management and computer bureau services agreements) of the Information Technology owned
or used by a Seller in the conduct of the Business is set forth on <U>Schedule&nbsp;3.9(j)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Sellers either own or have rights to use under valid licenses or leases all Information
Technology required to carry on the Business as currently conducted, which Information Technology
has the capacity and performance necessary to fulfill its current obligations under the Assumed
Contracts and the Assumed Warranties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) (i)&nbsp;All Contracts for the lease or license of Information Technology used in connection
with the Business are legal, valid and binding and enforceable against the Seller party thereto,
and to the Knowledge of Sellers, against the other parties thereto in accordance with their
respective terms and are in full force and effect, and (ii)&nbsp;with respect to each Contract for the
lease or license of Information Technology used with the Business, there is no default (or event
that with the giving of notice or passage of time would constitute a default) by a Seller, or, to
the Knowledge of Sellers, the other party thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.10. <U>Brokers</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No broker, finder or investment banker is entitled to any brokerage, finder&#146;s or other fee or
commission in connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of Sellers for which the Buyer would or could be liable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.11. <U>Contracts</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;3.11</U> lists all Assumed Contracts described in clauses (i)&nbsp;through (xv)
below that relate to the Business and which have not, as of the date hereof, been terminated or
fully performed ( together with the Customer Contracts, the &#147;<U>Material Contracts</U>&#148;):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Assumed Contracts providing for a commitment of employment or provision
of services involving the manufacture, design, improvement, sale, promotion,
distribution, advertising, repair or maintenance and support of the Business, the
Transferred Assets or Products of the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Assumed Contracts with any Person containing any provision or covenant
prohibiting or materially limiting the ability of QS or the Business to engage in any
business activity or compete with any Person or to solicit any Persons as customers,
employees or independent contractors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Assumed Contracts pursuant to which any Lien (other than Permitted
Liens) has been or could reasonably be expected to be imposed on any Transferred
Assets;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Assumed Contracts (other than this Agreement) providing for (i)&nbsp;the
future disposition or acquisition of any of the Transferred Assets, and (ii)&nbsp;any
merger or other business combination involving the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Assumed Contract which includes express provisions regarding
confidentiality of any information pertaining to, or used in connection with, the
Business or the Transferred Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Assumed Contract that limits or contains restrictions on the ability of
QS to incur or suffer to exist any Lien, to purchase or sell any assets, to
change the lines of business in which it participates or engages or to engage in
any merger or other business combination;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all Assumed Contracts (except for Assumed Contracts related to the sale of
goods or services to customers in the ordinary course of business) that (A)&nbsp;involve
the payment, pursuant to the terms of any such Assumed Contract, (1)&nbsp;by a Seller of
more than $10,000 annually or (2)&nbsp;to a Seller of more than $10,000 annually and (B)
cannot be terminated within ninety (90)&nbsp;days after giving notice of termination
without resulting in any material cost or penalty to such Seller;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Assumed Contract the particulars of which are required to be
furnished to any antitrust or regulatory Governmental Authority and any undertaking
that has been given or Order made pursuant to any antitrust legislation or in
response to any request for information or statement of objection from any
Governmental Authority;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any bid, tender, proposal or offer which, if accepted, will result in a
Seller becoming a party to any Assumed Contract in which the aggregate payments to be
received or paid by such Seller would exceed $10,000;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any partnership, joint venture or teaming arrangements pertaining to the
Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any Assumed Contract not made in the Ordinary Course of Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any Assumed Contract not otherwise described in any of clauses (i)&nbsp;through
(xi)&nbsp;above under which the consequences of a default or termination could reasonably
be expected to have Seller Material Adverse Effect; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any amendment or modification to any of the Assumed Contracts described
in this <U>Section&nbsp;3.11</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers have made available for inspection by Buyer true, correct and complete copies of
each Assumed Contract and all amendments thereto and any waivers granted thereunder. Except as set
forth on <U>Schedule&nbsp;3.11(b)</U>, the consummation of the transactions contemplated by this
Agreement are not a violation of, or grounds for, the modification, termination or cancellation of
any of the Material Contracts or for the imposition of any penalty or Lien or the default of any
security interests thereunder.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth on <U>Schedule&nbsp;3.11(c)</U>, all Assumed Contracts are valid and
binding agreements, in full force and effect and enforceable against Seller, and to the Knowledge
of Seller, against the other parties thereto in accordance with their respective terms, except as
the enforcement thereof may be subject to or limited by bankruptcy, insolvency, reorganization,
moratorium or other laws affecting the enforcement of creditors&#146; rights generally now or hereafter
in effect and subject to the application of equitable principles and the availability of equitable
remedies, and subject to the rights of a Governmental Authority to terminate a contract if the
Governmental Authority has not received the funds necessary to perform the contract. There is not,
under any Assumed Contract or any obligation, or covenant or condition contained therein, any
existing default or breach by a Seller, or to the Knowledge of Sellers, by any other party, or any
event, condition or act (including the consummation of the transactions contemplated by this
Agreement) which, with the giving of notice, the lapse of time, or the happening of any other event
or condition, (i)&nbsp;would constitute a default under or a breach of any provision of any Material
Contract or (ii)&nbsp;would permit the acceleration of any obligation of any party to any Material
Contract or the creation of a Lien upon any of the Transferred Assets. No Seller has received
notice of a dispute under or the pending or threatened cancellation, revocation or termination of
any Assumed Contract, nor, to the Knowledge of Sellers, are there any facts or circumstances which
are reasonably likely to lead to any such cancellation, revocation or termination. Except for the
assignment of Contracts from QS to Parent, no Seller has assigned, delegated or otherwise
transferred any of its rights or obligations with respect to any Assumed Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Customer Contract has been totally or partially terminated for default or for the
convenience of a Governmental Authority. Sellers have not received any requests with respect to
any Customer Contract for equitable adjustment of claims (other than routine invoices). Sellers
have not been notified of any deductions from unpaid invoices with respect to any Customer
Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;No Seller has been suspended or debarred from doing business with any Governmental
Authority, nor has any such suspension or debarment action been threatened, proposed, or commenced.
To Sellers&#146; Knowledge, there is no valid reasonable basis, or specific circumstances that with the
passage of time would reasonably be likely to become a reasonably basis, for such Seller&#146;s
suspension or debarment from doing business with any Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Each Seller has complied in all material respects with the material terms and conditions
of each Customer Contract, including all clauses, provisions and requirements (i)&nbsp;incorporated
expressly, by reference or by operation of law and/or (ii)&nbsp;relating to price adjustments based on
pricing made available to third Persons. Sellers have, with respect to all Customer Contracts:
(x)&nbsp;complied in all material respects with all certifications and representations it has executed,
acknowledged or set forth with respect to each such Contract; and (y)&nbsp;submitted certifications and
representations with respect to each such Contract that were accurate, current and complete when
submitted, and were properly updated to the extent required by Applicable Law or the applicable
Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;No Seller has been nor is it now being audited or investigated by any Governmental
Authority nor, to the Knowledge of Sellers, has such audit or investigation been threatened.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Except as set forth on <U>Schedule&nbsp;3.11(c)</U>, Sellers have not received notice of any
unfavorable past performance assessments, evaluations, or ratings relating to any Customer
Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers have not failed to pay any compensation required by it with respect to any work
performed or invoiced by them under any Customer Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;No Seller has knowingly or recklessly submitted any inaccurate, untruthful, or misleading
cost or pricing data, certification, bid, proposal, application, report, claim, or any other
information relating to a Customer Contract to any Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;To the Knowledge of Sellers, no Customer Contracts are subject to any right of setoff,
except as provided under Applicable Law. Sellers have not received any notice that monies due
under any Government Contract are or may be subject to withholding or setoff.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;To the Knowledge of Sellers, no employee, agent, consultant, representative of a Seller or
of the Business is in receipt or possession of any competitor&#146;s confidential, proprietary, or
procurement sensitive information under circumstances where there is reason to believe that such
receipt or possession is unlawful or unauthorized. Sellers have not received an official
investigative inquiry or subpoena from any Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;To the Knowledge of Sellers, none of Sellers&#146; officers, directors, or employees, has
knowingly or recklessly provided to any Person any false or misleading information with respect to
such Seller or the Business, or in connection with the procurement of, performance under, or
renewal of, any Customer Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;To the Knowledge of Sellers, there exists no valid basis for (i)&nbsp;the withdrawal or
suspension of any approval or consent of any Governmental Authority with respect to any Products
designed, developed, manufactured or sold by Sellers, or (ii)&nbsp;the recall, withdrawal or suspension
by Order of any Governmental Authority of any such Products. To the Knowledge of Sellers, there
are no product or service defects which could give rise to any such losses, claims, damages,
expenses or Liabilities. There are no defects in the designs, specifications, or processes with
respect to any Product designed, developed, manufactured or sold by the Business that could give
rise to any material Liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.12. <U>&#091;Intentionally Left Blank&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.13. <U>Title to Assets and Continued Operation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon consummation of the transactions contemplated by this Agreement, Sellers will have
sold, assigned, transferred and conveyed to Buyer, and Buyer will have acquired from Sellers, good
and marketable title to all of the Transferred Assets owned by Sellers, free and clear of all Liens
except Permitted Liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;3.13(b)</U>, all of the property, assets, and rights
included in the Transferred Assets are sufficient for Buyer to continue to operate the Business in
the same manner as it is conducted currently and to perform the services of the Business, including
in accordance with all of the requirements of the Assumed Contracts and Assumed Warranties in
effect on the Closing Date.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Maintenance contracts are in force for both (i)&nbsp;those of the tangible Transferred Assets
where it is normal to have them maintained by independent or specialist contractors, and (ii)&nbsp;for
each asset that a Seller is obliged to maintain or repair under a leasing or similar agreement.
All of those assets have been regularly maintained in accordance with safety regulations required
to be observed in relation to them and the provisions of any applicable Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.14. <U>Insurance</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately prior to the Closing, the Transferred Assets were insured under various policies
of insurance. To the Knowledge of Sellers, there currently is no basis for an insurance claim
under any of such policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.15. <U>Equipment; Asset Valuation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Equipment is in good operating condition, ordinary wear and tear excepted, and is capable
immediately after the Closing Date of being used for the purposes for which such Equipment is now
being used in and in connection with the Business. As of the Closing Balance Sheet Date, the value
of the Equipment, furniture and fixtures and other current assets to be reflected on the Closing
Balance Sheet will total approximately $200,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.16. <U>Absence of Changes.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Balance Sheet Date, the Business has been conducted in the Ordinary Course of
Business consistent with past practices and there has not been:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any sale, lease, transfer, or assignment of any of the tangible or intangible assets,
other than sales of services or Licenses of Intellectual Property of QS made in the Ordinary Course
of the Business and the transfer of the Transferred Assets from QS to Parent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any Contract entered into other than in the Ordinary Course of the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any acceleration, termination, modification, or cancellation of any Contract;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any Lien other than a Permitted Lien created or imposed upon any of the Transferred
Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any cancellation, compromise, waiver, or release of any right or claim (or series of
related rights and claims) included as Transferred Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;any material damage, destruction, or loss (whether or not covered by insurance) to the
property of the Business, including the Transferred Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;any payment of any amount to any Person outside the Ordinary Course of the Business with
respect to any Liability (excluding any costs and expenses incurred or which may be incurred in
connection with this Agreement and the transactions contemplated hereby) which would constitute an
Assumed Liability if in existence as of the Closing;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;any change by QS in its accounting principles, methods or practices or in the manner it
keeps its books and records or any change by QS of current practices with regard to sales,
expenses, assets and Liabilities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any change in the practices of pricing or discounting for sales of products or services,
ordering supplies, delivering products or services, accepting returns or honoring warranties,
invoicing customers and collecting debts;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;any deliveries or performance of services by a Seller in connection with any backlog of
orders other than in the Ordinary Course of Business or as otherwise provided under the terms of
any Assumed Contract with respect to such backlog;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;any threat or notification, orally or in writing, by one or more of the distributors,
customers or suppliers of the Business who, individually or in the aggregate, are material to the
Business, of an intention to terminate or materially alter their respective business relationships
or any Assumed Contract, nor has any such termination or material alteration of such relationships
or any Assumed Contract occurred;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;any Contract by a Seller with respect to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.17. <U>Product Warranties, Defects and Liabilities</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There exists no pending or, to the Knowledge of Sellers, threatened action, suit, inquiry,
proceeding or investigation by or before any Governmental Authority relating to any product alleged
to have been distributed or sold by QS to others, and alleged to have been defective or improperly
designed or in breach of any express or implied product warranty and, to the Knowledge of Sellers,
there exists no latent defect in the design or manufacture of any of the Products of the Business.
There exists no pending or, to the Knowledge of Sellers, threatened product liability or warranty
claims relating to the Business outside the Ordinary Course of Business, and to Knowledge of
Sellers, there is no basis for any such suit, inquiry, action, proceeding, investigation or claim.
Since January&nbsp;1, 2003, there have not been any product liability or warranty claims that have
resulted in a Seller Material Adverse Effect. <U>Schedule&nbsp;3.17</U> includes copies of the
Customer Contracts containing the standard terms and conditions of sale of the products and
services of the Business, except to the extent set forth therein. There are no express or implied
product or service warranties relating to the Products or Business, except as may be set forth in
the Assumed Contracts or the standard terms and conditions of sale of the products and services of
the Business as set forth on <U>Schedule&nbsp;3.17</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.18. <U>Affiliate Transactions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for the transfer of the assets noted in <U>Section&nbsp;3.16(a)</U> or as set forth on
<U>Schedule&nbsp;3.18</U>, as of the Closing Date, QS is not a party to, or bound by, any Contract with
any of its Affiliates, and no Affiliate of a Seller owns or otherwise has any rights to or
interests in any asset, tangible or intangible, which is a Transferred Asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.19. <U>Customers and Suppliers</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;3.19(a)</U> sets forth a complete and accurate list (with dollar volumes
included) of (i)&nbsp;the customers (by dollar volume) of the Products or services of QS invoiced during
the twelve-month period immediately preceding the Balance Sheet Date; and (ii)&nbsp;any supplier of
materials or services (by dollar amount) to whom QS paid at least $500 during the twelve-month
period immediately preceding the Balance Sheet Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;3.19(b)</U>, there are no Contracts under the terms of
which (i)&nbsp;QS or, in connection with the Business, Parent is obligated to purchase any product or
services from, or sell any product or services to, any other Person on an exclusive basis with
respect to any geographic area or group of potential customers; or (ii)&nbsp;any other Person may be
similarly obligated to QS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.20. <U>Illegal Payments</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Sellers nor any of their respective directors, officers, employees or agents, has (a)
directly or indirectly given or agreed to give any illegal gift, contribution, payment or similar
benefit to any supplier, customer, governmental official, employee or other Person to assist in
connection with any actual or proposed transaction or made or agreed to make any illegal
contribution, or reimbursed any illegal political gift or contribution made by any other Person, to
any candidate for federal, state, local or foreign public office (i)&nbsp;which violates any Applicable
Law, including but not limited to, the Foreign Corrupt Practices Act of 1977, as amended, or could
subject Buyer to any Damages or penalties in any civil, criminal or governmental litigation or
proceeding or (ii)&nbsp;the non-continuation of which has had or might reasonably be expected to have a
Seller Material Adverse Effect or (b)&nbsp;established or maintained any unrecorded fund or asset or
made any false entries on any books or records for any purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.21. <U>Real Property</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Seller does not own any real property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Schedule&nbsp;3.21(b)</U> contains a list of all real property leased or subleased by a
Seller that is being used by, or occupied in connection with the Business (&#147;<U>Leased Real
Property</U>&#148;). Sellers have delivered to Buyer correct and complete copies of the leases and
subleases set forth on <U>Schedule&nbsp;3.21(b)</U>, which leases and subleases have not been amended
or modified since the amendments furnished. With respect to each lease and sublease set forth on
<U>Schedule&nbsp;3.21(b)</U>:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all of the terms and conditions of each lease or sublease have been observed
or performed in all material respects by the Seller party thereto and no party to any
such lease or sublease is in breach or default, and, to the Knowledge of Sellers, no
event has occurred which, with notice or lapse of time or both, would
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">constitute a
breach or default or permit termination, modification, or acceleration hereunder, or
would allow the lessor or sublessor to assert a right of possession to impose any
Lien against any of the Transferred Assets, except that the lease listed on
<U>Schedule&nbsp;3.21(b)</U> requires the tenant to give the landlord 20&nbsp;days notice in
connection with a transfer of the lease pursuant to a sale of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the lease or sublease will continue to be legal, valid, binding, in full
force and effect and enforceable on identical terms following the consummation of the
transactions contemplated hereby, subject to the requirement to provide notice of
change of ownership and compliance with the equity requirement for Buyer as set forth
in the lease; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the facilities leased or subleased are supplied with utilities and other
services necessary for the operation of the Business as it is conducted on the
Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.22. <U>Environmental Compliance</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All of the Transferred Assets, the Leased Real Property and the Business are in material
compliance with all Environmental Laws;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There are no pending or, to the Knowledge of Sellers, threatened Actions arising out of or
related to any Environmental Laws against QS or, in connection with the Business, Parent or any
lessor or sublessor of the Leased Real Property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Sellers currently maintain all permits required under Environmental Law for the operation
of the Business (the &#147;<U>Environmental Permits</U>&#148;), and Sellers are in material compliance with
the Environmental Permits and there are no legal proceedings pending nor, to the Knowledge of
Sellers, threatened to revoke the Environmental Permits;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;As a result of its operation of the Business, Sellers are not subject to any outstanding
Order or a party to any agreement with any Governmental Authority pertaining to Environmental Law
or which requires any Remedial Action to be performed; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;There are no Actions by any employee of a Seller pending, or to the Knowledge of Sellers,
threatened, based on alleged injury to such employee&#146;s health caused by exposure to any Hazardous
Substance at any Leased Real Property or in connection with the operation of the Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.23. <U>Tax Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers have filed all Tax Returns with respect to the Business which they are required to
file under Applicable Law and the Code as of the date hereof and all such Tax Returns
are complete and correct, are based on the books of account and financial records of QS, and
have been prepared in material compliance with all Applicable Laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers have paid all Taxes with respect to the Business due and owing by it as of the
date hereof (whether or not such Taxes are required to be or are shown on a Tax Return) and has
withheld and paid over to the appropriate Governmental Authority all Taxes which it is
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">required to withhold from amounts paid or owing to any employee, shareholder, creditor or other third party.
There are no unpaid Taxes with respect to any period or portion thereof ending on or before the
Closing Date that are or could become a Lien on the Transferred Assets except for current Taxes not
yet due and payable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Sellers have not waived any statute of limitations with respect to any Taxes or agreed to
any extension of time with respect to any Tax assessment or deficiency with respect to the
Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Since the Balance Sheet Date, Sellers have not incurred any Liability for Taxes with
respect to the Business other than in the Ordinary Course of Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;No foreign, federal, state or local tax audits or administrative or judicial proceedings
are pending or being conducted with respect to Sellers and the Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Seller have not received from any Governmental Authority any written notice indicating an
intent to open an audit or conduct any other review with respect to the Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;To Sellers&#146; Knowledge there is no basis for any Governmental Authority to assess any
additional Taxes with respect to the Business for any period for which Tax Returns have been filed.
There is no dispute, audit, investigation, proceeding or claim concerning any Liability with
respect to Taxes of Sellers in connection with the Business either (i)&nbsp;claimed or raised by any
Governmental Authority in writing or (ii)&nbsp;to the Knowledge of Sellers, threatened, based upon any
communications with such Governmental Authority. Sellers are not a party to any Action by any
Governmental Authority relating to Taxes resulting from the operation of the Business, nor to the
Knowledge of Sellers, is there any basis for the same which could result in a Liability to Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.24. <U>Employee Benefit Plans</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;3.24</U> sets forth each pension, retirement, profit-sharing, deferred
compensation, bonus or other incentive plan or other employee benefit program, arrangement,
agreement or understanding, or medical, vision, dental or other health plan, or life insurance or
disability plan, or any other employee benefit plan, whether or not terminated and whether or not
funded, including, without limitation, any &#147;employee benefit plan&#148; as defined in Section&nbsp;3(3) of
ERISA to which QS currently contributes or is a party (&#147;<U>Employee Benefit Plans</U>&#148;). For
purposes of this Agreement an &#147;<U>ERISA Affiliate</U>&#148; of QS means any corporation or
unincorporated trade or business (including, without limitation, any partnership, limited liability
company or sole proprietorship) that, together with QS, is considered a single employer within the
meaning of Code Section&nbsp;414(b), (c), (m), (n)&nbsp;or (o). None of the Employee Benefit Plans is, and
QS does not otherwise have any liability with respect to, including, without limitation, actual or
potential liability due to an ERISA Affiliate&#146;s sponsorship of, or contributions to, any Employee
Benefit Plan, (i)&nbsp;an employee benefit plan that is subjected to Title IV of ERISA or is otherwise
subject to the minimum funding requirements of ERISA or the Code; (ii)&nbsp;a multiemployer plan as
defined in Section&nbsp;3(37) of ERISA; or (iii)&nbsp;an employee benefit plan that provides health, life,
disability or other welfare-type benefits to current or future retirees or current or future former
employees except as required by COBRA or applicable state continuation coverage law. Sellers have
made available to Buyer true, correct, and complete copies of all Employee Benefit Plans and all
amendments thereto. Each Employee Benefit Plan (other than any multiemployer plan) has been
maintained,
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">administered and funded in compliance in all material respects with all Applicable Laws
including, without limitation, ERISA and the Code. There are no claims, suits, investigations or
audits pending or, to the Knowledge of Sellers, threatened, with respect to any of the Employee
Benefit Plans (other than routine benefit claims); nor to the Knowledge of Sellers is there any
reasonable basis for any of the foregoing. No Employee Benefit Plan has any material unfunded
liabilities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;QS has agreed to pay or award to certain of its employees bonuses, equity incentives and
other payments which are earned in accordance with the plan as set forth on <U>Schedule
3.24(b)</U> (the &#147;Incentive Payments&#148;). Sellers have no other commitments to pay or award bonuses,
equity incentives or other similar payments to QS employees other than the Incentive Payments.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 4<BR>
REPRESENTATIONS AND WARRANTIES OF BUYER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer and Netsmart jointly and severally hereby represent and warrant to Sellers as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.1. <U>Organization</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Netsmart and Buyer is duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation and has all requisite power and authority to own, lease
and operate its properties and to carry on its businesses as now being conducted. Buyer is duly
qualified or licensed and in good standing to do business in each jurisdiction in which the
property owned, leased or operated by it or the nature of the business conducted by it makes such
qualification or licensing necessary, except in such jurisdictions where the failure to be so duly
qualified or licensed and in good standing would not have a Buyer Material Adverse Effect (as
defined below). The term &#147;<U>Buyer Material Adverse Effect</U>&#148; means any circumstance, change or
effect that, individually or when taken together with all other such circumstances, changes or
effects, is materially adverse to the business, operations or financial condition of Buyer and
Netsmart taken as a whole or would materially impair the ability of Buyer to consummate the
transactions contemplated hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.2. <U>Authority Relative to this Agreement</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Netsmart and Buyer has all necessary corporate power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby. The execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by the board of directors of each of Netsmart and Buyer and no other
corporate proceedings on the part of Netsmart or Buyer are necessary to authorize this Agreement or
to consummate the transactions contemplated hereby. This Agreement has been duly
and validly executed and delivered by Netsmart and Buyer and constitutes a valid, legal and
binding agreement of Netsmart and Buyer enforceable against Netsmart and Buyer in accordance with
its terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.3. <U>Consents and Approvals: No Violations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No filing with or notice to, and no permit, authorization, consent or approval of, any
Governmental Authority is necessary for the execution and delivery by Netsmart or Buyer
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of this
Agreement or the consummation by Netsmart or Buyer of the transactions contemplated hereby, except
where the failure to obtain such permits, authorizations, consents or approvals or to make such
filings or give such notice would not have a Buyer Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither the execution, delivery and performance of this Agreement by Netsmart or Buyer nor
the consummation by Netsmart or Buyer of the transactions contemplated hereby will (i)&nbsp;conflict
with or result in any breach of any provision of the Certificate of Incorporation or Bylaws of
Netsmart or Buyer, (ii)&nbsp;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 or Lien) under any of the terms conditions or provisions of any
contract to which Netsmart or Buyer is a party or by which Netsmart or Buyer or any of its
properties or assets may be bound or (iii)&nbsp;violate any Applicable Law binding on or applicable to
Netsmart or Buyer or any of its properties or assets except, in the case of (ii)&nbsp;or (iii), for
violations, breaches or defaults which would not have a Buyer Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Neither the execution and delivery of the Promissory Note and the timely performance of
Netsmart&#146;s obligations thereunder, nor the full and timely performance of Netsmart&#146;s and Buyer&#146;s
obligations with respect to the Earn-Out Payments, results or will result in a violation or breach
of or constitutes or will 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 or Lien)
under any of the terms conditions or provisions of any material contract to which Netsmart or Buyer
is a party or by which Netsmart or Buyer or any of its properties or assets may be bound.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.4. <U>Litigation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no Actions pending or, to Buyer&#146;s or Netsmart&#146;s knowledge, threatened that question
the validity of this Agreement or the Bill of Sale and Assumption Agreement or any action to be
taken by Netsmart or Buyer in connection with this Agreement or the Bill of Sale and Assumption
Agreement or by their existence or if adversely determined, have or would have a Buyer Material
Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.5. <U>Brokers</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for a consultant retained by Buyer, no broker, finder or investment banker is entitled
to any brokerage, finders or other fee or commission from Netsmart or Buyer in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer
or any of its Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.6. <U>Netsmart SEC Reports</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Netsmart has filed with the Securities and Exchange Commission all forms, reports and other
documents (&#147;<U>SEC Reports</U>&#148;) required to be filed under the Securities Exchange Act of 1934;
all SEC Reports were prepared in accordance with the requirements of that Act in all material
respects; and none of the SEC Reports at the time it was filed contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in
order to made the statements therein, in the light of the circumstances under which they were made,
not misleading.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 5<BR>
COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.1. <U>Additional Agreements; Best Efforts</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions herein provided, each of the parties hereto agrees to use
its best efforts to take or cause to be taken all action and to do or cause to be done all things
reasonably necessary, proper or advisable under Applicable Law to consummate and make effective the
transactions contemplated by this Agreement and the Bill of Sale and Assumption Agreement,
including, without limitation, contesting any legal proceeding challenging the transactions
contemplated hereby or thereby, and executing any additional instruments necessary to consummate
the transactions contemplated hereby and thereby, including the execution of an additional Bill of
Sale and Assumption Agreement to the extent necessary to reflect any adjustment in the amount of
Assumed Liabilities in accordance with <U>Section&nbsp;2.3(e)</U> hereof. If at any time after the
Closing Date any further action is reasonably necessary to carry out the purposes of this Agreement
or the Bill of Sale and Assumption Agreement the proper officers and directors of each party hereto
shall take all such necessary action. After the Closing Date Buyer shall allow Parent access to
the Continuing Employees, at reasonable times and upon reasonable notice, to allow Parent to
collect information it requires to prepare and file any reports, returns or other documents it is
required to file under applicable law, including but not limited to Tax Returns and reports filed
with the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.2. <U>Public Announcements</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties shall consult with each other before issuing any press releases or otherwise
making any public statements with respect to this Agreement or the transactions contemplated
hereby, and none of the parties shall issue any press release or make any public statement prior to
obtaining the other parties&#146; written approval, which approval shall not be unreasonably withheld,
except that no such approval shall be necessary to the extent disclosure may be required by
Applicable Law or any NASDAQ or AMEX rule applicable to the party required to make such disclosure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.3. <U>Employee Benefits</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Offer of Employment</U>. The parties hereto intend that there shall be continuity of
employment with respect to the employees of the Business set forth on <U>Schedule&nbsp;5.3(a)</U>. To
that end, effective at the beginning of the Business Day on the Closing Date, Buyer shall offer to
employ the employees on <U>Schedule&nbsp;5.3(a)</U> at a rate of base and commission compensation not
less than that in effect on the Closing Date, as disclosed in <U>Schedule&nbsp;5.3(a)</U>. Each
individual who accepts Buyer&#146;s offer of employment and becomes an employee of Buyer on the Closing
Date shall thereafter be a continuing employee (a &#147;<U>Continuing Employee</U>&#148;). Buyer shall
employ the Continuing Employees in substantially the same position held by them prior to the
Closing and on terms and conditions that are, to the extent consistent with Netsmart&#146;s existing
employment terms, conditions and policies, comparable to those enjoyed by similarly-situated
Netsmart employees either prior to or after the Closing, whichever is more favorable to the
Continuing Employees (except that the first sentence of this Section&nbsp;5.3(a) shall control Buyer&#146;s
obligations concerning base and commission compensation); and Buyer will recognize the service of
the Continuing Employees with Sellers for purposes of eligibility for all benefits, including but
not limited to vacation benefits. As of the
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Closing Date, Continuing Employees who were covered
under Seller&#146;s 401(k) plan shall be eligible to participate in Buyer&#146;s 401(k) plan without regard
to any service requirements thereunder. Buyer&#146;s 401(k) plan will recognize the service of the
Continuing Employees with Sellers for purposes of eligibility to participate, vesting and early
retirement eligibility under Buyer&#146;s 401(k) plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Welfare Plans &#151; Claims Incurred; Pre-Existing Conditions</U>. As of the Closing Date,
the Buyer shall commence coverage of the Continuing Employees under any life insurance and
disability plans, programs and arrangements that Netsmart then provides to its other employees on
the same terms and conditions as are made available to Netsmart&#146;s employees generally. As of the
day following the Closing, Buyer or Netsmart shall commence coverage of Continuing Employees under
any medical, hospitalization and dental programs or arrangements that Netsmart then provides to its
other employees similarly situated, and, to the extent permitted by such programs and consistent
with Netsmart&#146;s policies, waive, as applicable, any preexisting condition, exclusion or limitation.
Seller shall retain all liability for claims incurred prior to the Closing Date under its employee
benefit plans and programs, including its medical, hospitalization and dental plans. Buyer and
Netsmart shall assume all liability for claims incurred on or after the Closing Date under the
employee benefit plans and programs covering Continuing Employees, including medical,
hospitalization and dental plans. For purposes of this <U>Section&nbsp;5.3(b)</U>, a claim is deemed
incurred when the services that are the subject of the claim are performed; in the case of life
insurance, when the death occurs; in the case of long-term disability benefits, when the disability
occurs; and, in the case of a hospital stay, when the employee first enters the hospital.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On or before the thirtieth day after the Final EBIT-A Amount has been determined under
Section&nbsp;2.9, Sellers shall pay to former QS employees, whether or not such employees are Continuing
Employees, the Incentive Payments, if any, to which they are entitled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.4. <U>Expenses</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the parties shall bear its own expenses incurred in connection with this Agreement and
the transactions contemplated hereby and in connection with all obligations required to be
performed by such party under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.5. <U>Certain Other Covenants</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, following the Closing, it is necessary that Buyer or Seller obtain additional information
relating to the Business prior to the Closing Date in order to properly prepare documents or
reports required to be filed with Governmental Authorities or financial statements or other
business purpose, and such information is within the other party&#146;s possession, Buyer or Seller, as
applicable, will (at the requesting party&#146;s sole reasonable cost and expense) furnish or cause its
representatives to furnish such information to the other party. Such information shall include,
without limitation, the accounting and tax records of Seller and all agreements between Seller and
any Person relating to the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.6. <U>Earn-Out Payments</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Calculation and Payment of Maintenance Earn-Out Payment</U>.
</DIV>



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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On or before the thirtieth day following the preparation of audited
financial statements for the fiscal year ending December&nbsp;31, 2007, but no later than
April&nbsp;30, 2008, Buyer shall calculate and disclose in writing to Sellers (A)&nbsp;the
amount of Maintenance Revenue during the Maintenance Earn-Out Period and (B)&nbsp;the
amount of the earn-out payment payable to the Sellers in accordance with <U>Schedule
5.6(a)</U> (the &#147;<U>Maintenance Earn-Out Payment</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Buyer shall pay to Sellers the Maintenance Earn-Out Payment no later than
the fifth (5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) Business Day after the Earn-Out Statement shall become
final under <U>Section&nbsp;5.6(e)</U> (the <U>&#147;Earn-Out Payment Date&#148;)</U>. Sellers
shall be entitled to receive interest on such Earn-Out Payment from February&nbsp;1, 2008
through the Earn-Out Payment Date, at the Prime Rate, payable on the Earn-Out Payment
Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Calculation and Payment of Software Earn-Out Payments</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On or before the thirtieth day following the preparation of audited
financial statements for the fiscal year ending December&nbsp;31, 2007, but no later than
April&nbsp;30, 2008, Buyer shall calculate and disclose in writing to Sellers (A)&nbsp;the
amount of Vital Records Contract Awards during the Software Earn-Out Period and (B)
the amount of the earn-out payment payable to Sellers in accordance with <U>Schedule
5.6(b)(i)</U> (the &#147;<U>Vital Records Earn-Out Payment</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On or before the thirtieth day following the preparation of audited
financial statements for the fiscal year ending December&nbsp;31, 2007, but no later than
April&nbsp;30, 2008, Buyer shall calculate and disclose in writing to Sellers (A)&nbsp;the
amount of Other Software Contract Awards during the Software Earn-Out Period
and (B)&nbsp;the amount of the earn-out payment payable to Sellers in accordance with
<U>Schedule&nbsp;5.6(b)(ii)</U> (the &#147;<U>Other Software Earn-Out Payment</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) At Buyer&#146;s option, the Vital Records Earn-Out Payment and the Other
Software Earn-Out Payment may be paid in (i)&nbsp;cash in immediately available funds or
(ii)&nbsp;if at the time of the Vital Records Earn-Out Payment and Other Software Earn-Out
Payment, the NTST Common Stock is listed for trading on a national securities
exchange or traded on the NASDAQ Stock Market, in NTST Common Stock by delivering to
Sellers duly and validly issued certificates representing a number of shares of NTST
Common Stock computed as follows: an amount equal to (A)&nbsp;the amount of Vital Records
Earn-Out Payment or Other Software Earn-Out Payment that Buyer wishes to pay in NTST
Common Stock divided by (B)&nbsp;the volume weighted average trading price (as reported in
writing by UBS Paine Webber to each of Sellers and Buyer) of one share of NTST Common
Stock traded on NASDAQ for the four trading weeks ending on the 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP>
trading day immediately before the Earn-Out Payment Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event that Buyer elects to make any portion of the Vital Records
Earn-Out Payment or Other Software Earn-Out Payment in NTST Common Stock, Netsmart
hereby agrees that not later than the Earn-Out Payment Date it shall file a
registration statement, at its sole expense, with respect to such shares of NTST
Common Stock to allow Sellers to begin selling such shares of NTST Common
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Stock in
open-market and private transactions as soon as possible after the Earn-Out Payment
Date. Netsmart shall use its best efforts to cause such registration statement to be
declared effective as soon as possible after filing, and shall maintain the
effectiveness of such registration statement until such time as all of such shares of
NTST Common Stock have either been sold pursuant to such registration statement or
become available for sale within a three-month period under Securities and Exchange
Commission Rule&nbsp;144.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Buyer shall pay to Sellers the Vital Records Earn-Out Payment and the Other
Software Earn-Out Payment no later than the fifth (5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) Business Day
after the Earn-Out Statement shall become final under <U>Section&nbsp;5.6(e)</U> (the
<U>&#147;Earn-Out Payment Date&#148;)</U>. Sellers shall be entitled to receive interest on
such Earn-Out Payment from February&nbsp;1, 2008 through the Earn-Out Payment Date, at the
Prime Rate, payable on the Earn-Out Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Good Faith</U>. All parties shall act in good faith with respect to the covenants set
forth in this <U>Section&nbsp;5.6</U>. Buyer and Netsmart acknowledge that the inclusion of the
Earn-Out Payments is a principal term hereof and the opportunity to achieve such Earn-Out Payments
constitutes a material consideration for Sellers&#146; willingness to enter this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Operation of Business</U>. During the Software Earn-Out Period and the Maintenance
Earn-Out Period, neither Buyer nor Netsmart will take any action or inaction with respect to the
Business with the intent of increasing the Liability Adjustment determined under <U>Section
2.3</U>, or of reducing the Earnings Period Revenue Amount or the Earnings Period EBIT-A Amount
determined under <U>Section&nbsp;2.9</U>, or of reducing the amount of any Earn-Out Payment
determined under this <U>Section&nbsp;5.6</U>. In particular, without limiting the generality of
the preceding sentence, during the Software Earn-Out Period and the Maintenance Earn-Out Period,
Buyer shall:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide adequate resources to the Business to enable the Business to
capitalize on opportunities presented to it;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) use best efforts to operate the Business in a manner consistent with QS&#146;
past practice, including preserving intact the Business and maintaining the Business&#146;
relationships with customers and suppliers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) operate the Business as a stand-alone subsidiary of Netsmart;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) maintain separate financial statements of the Business in accordance with
GAAP consistently applied with QS&#146; practices as of the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) not defer sales of the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) not materially reduce the overall size of the sales force of the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) through December&nbsp;31, 2006 maintain the current commission plan structure,
including the Continuing Employees who are currently covered by that plan, then
thereafter maintain a commission plan structure sufficient to provide similar
incentives to the Continuing Employees; and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) not prevent the Business from competing with the other operations of
Netsmart and its Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Sellers acknowledge and agree that Netsmart shall have the
right to review and approve all proposals and quotations to be made by Buyer, in order to insure
that Buyer continues to run the Business in a profitable manner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Written Statements</U>. Each disclosure of an Earn-Out Payment under <U>Sections
5.6(b)(i)</U> and <U>5.6(b)(ii)</U> shall be accompanied by a written statement, signed by the
President and CFO of Buyer and the CFO of Netsmart, which details the manner in which such Earn-Out
Payment was calculated (each, an &#147;<U>Earn-Out Statement</U>&#148;). Buyer shall afford to Sellers and
their representatives reasonable access, on reasonable notice, for a period of thirty (30)&nbsp;days
after the date an Earn-Out Statement is delivered to Sellers (the &#147;<U>Review Period</U>&#148;), to
review the books and records of the Business that were used to prepare the Earn-Out Statement, meet
with key employees of Buyer and the Business, and review any pertinent work papers of Buyer&#146;s or
Netsmart&#146;s independent auditors. Sellers shall have an additional fifteen (15)&nbsp;days after the
expiration of the Review Period to furnish Buyer with a written notice (the &#147;<U>Dispute
Notice</U>&#148;) setting forth those items with which it disagrees and the reasons for each such
disagreement. If during the Review Period either of the Sellers notifies Buyer in writing that
Sellers accept the Earn-Out Statement, or if both Sellers fail to furnish the Dispute Notice to
Buyer within the fifteen-day period, the Earn-Out Statement shall become final for all purposes.
If one of the Sellers furnishes the Dispute Notice to Buyer within the fifteen-day period, the
parties shall use best efforts to resolve any disagreements timely raised in the Dispute Notice,
after which resolution the Earn-Out Statement shall become final for all purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Earn-Out Period Information</U>. During the Software Earn-Out Period and the
Maintenance Earn-Out Period, within 45&nbsp;days after the end of each calendar quarter, Buyer shall
provide Sellers in writing with the following reports on the progress of the Business during such
quarter:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Quarterly income or profit-and-loss information to the extent and in the
form maintained by Buyer and Netsmart for purposes of consolidating Netsmart&#146;s
quarterly results;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Maintenance Revenue during such quarter (if during the Maintenance Earn-Out
Period);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Other Software Contract Awards made during such quarter;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Vital Records Contract Awards made during such quarter;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Termination of Contracts with Identified Customers during such quarter; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Any event during such quarter that has had a material and adverse impact on
the Business generally or an Earn-Out Payment specifically.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.7. <U>Name Change of Seller</U>.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Closing Date, Sellers shall deliver to Buyer for filing with the appropriate
Governmental Authority such documents as may be required to amend the certificate of incorporation,
bylaws and other organizational documents of QS to change the name of QS and exclude any reference
therein to &#147;QS Technologies&#148; alone or in combination with any other words or terms, or any
variation of such words or terms. On and after the Closing Date, QS shall cease doing business
under or utilizing as a trademark, trade name, or service mark, any of the foregoing names.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.8. <U>Business Confidentiality; Non-Disparagement</U>.<U> </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers acknowledges that they have had access to, and use of, Confidential Information of
the Business prior to the Closing. Sellers covenant that without written authorization from Buyer,
or except as contemplated herein with respect to compliance with record-keeping and reporting
requirements, they shall not at any time hereafter, directly or indirectly, use for their own
purpose or for the benefit of any Person other than Buyer, any Confidential Information, or
disclose any Confidential Information to any Person. This covenant shall not apply to any
Confidential Information that is or becomes generally available to the public or in the industry
other than as a result of a disclosure directly or indirectly by a Seller in violation of this
Agreement or is or becomes available to a Seller in a lawful manner and on a non-confidential basis
from a source other than Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Nothing herein shall prevent any disclosure required by Applicable Law or any Order of a
Governmental Authority; provided, however, that Sellers shall give the Buyer
prompt notice of any request for such disclosure that it receives and, at Buyer&#146;s cost, shall
provide reasonable cooperation to Buyer in connection with Buyer&#146;s efforts to obtain a protective
order or other means of preventing disclosure and otherwise protecting the confidentiality of the
Confidential Information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the extent that the same may be appropriate, Buyer shall be entitled to seek injunctive
relief (without the necessity of posting a bond) from any court of competent jurisdiction to
restrain any threatened or further violation of the covenant contained in this <U>Section&nbsp;5.8</U>
in addition to any other rights or remedies at law, in equity or under this Agreement to which the
Buyer may be entitled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.9. <U>Accounts Receivable</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Buyer shall forward to Sellers any and all payments received by it in respect of
Receivables for goods delivered or services rendered prior to the Closing Date, to the extent
reflected on the Closing Balance Sheet. Buyer may, but shall have no obligation to, assist Sellers
in the collection of the Receivables and agrees that Sellers shall be entitled to use all lawful
methods to collect the Receivables from the obligors thereof. Buyer agrees that it will take no
action, directly or through any other Person, that is intended to induce, or has the
reasonably-expected result of inducing, the obligors of such Receivables not to make the requisite
payments to QS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to the unbilled receivables listed on <U>Schedule&nbsp;5.9(b)</U>, Buyer shall
(i)&nbsp;use its best efforts to complete the formal documentation of the contracts related thereto as
soon as possible, (ii)&nbsp;perform all such contracts fully in accordance with their respective terms,
(iii)&nbsp;invoice the customers under those contracts as soon as possible consistent with prior QS
practices, (iv)&nbsp;use its best
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">efforts to collect the amounts due under such invoices as soon as
possible, and (v)&nbsp;immediately deliver to Sellers any amounts received by Buyer under those
contracts, in the form received by Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.10. <U>Netsmart Obligations</U>.<U> </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding anything else herein, in each instance in which Buyer is obligated perform
any obligation hereunder Netsmart agrees to cause Buyer so to perform, and Netsmart unconditionally
guarantees Buyer&#146;s full and timely performance of each of its obligations hereunder; and all
written or other communications from Netsmart to either Seller with respect to Buyer or the
Business shall be deemed to be communications from and on behalf of Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;QS has caused the issuance of a performance bond in connection with its performance of its
contract with the State of Nebraska, which performance bond has been collateralized by a letter of
credit of Parent&#146;s bank and guaranteed by QS and Parent. While such performance bond is in effect
Netsmart shall take no action or inaction with the intent, or that would have the
reasonably-foreseeable result, of extending the term of the performance bond; and at such time as
performance under such contract has been completed, Netsmart shall cooperate with Sellers in
connection with their efforts to have that performance bond cancelled and released. To the extent
either Seller suffers a Loss solely due to Buyer&#146;s failure fully to perform under such contract
with the State of Nebraska or under this <U>Section&nbsp;5.10(b)</U>, Sellers&#146; indemnification rights
under <U>Section&nbsp;8.4</U> shall not be subject to the Sellers&#146; Basket notwithstanding anything to
the contrary in <U>Article&nbsp;8</U>.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 6<BR>
TAX MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.1. <U>Taxes</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller shall pay all transfer Taxes resulting from the transactions contemplated by this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.2. <U>Cooperation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer and Sellers shall reasonably cooperate, and shall cause their respective Affiliates,
officers, employees, agents, auditors and representatives reasonably to cooperate, in preparing and
filing all returns, reports and forms relating to Taxes, including maintaining and making available
to each other all records necessary in connection with Taxes and in resolving all disputes and
audits with respect to all Taxable periods relating to Taxes. Each of Buyer and Sellers recognizes
that Buyer and Sellers may need access, from time to time, after the Closing Date, to certain
accounting and Tax records and information held by Sellers or Buyer, respectively, to the extent
such records and information pertain to events occurring prior to the Closing Date; therefore,
Sellers and Buyer each agree, (a)&nbsp;to properly retain and maintain such records for a period of six
(6)&nbsp;years commencing as of the date hereof and (b)&nbsp;to allow the other party and its agents and
representatives, at times and dates mutually acceptable to the parties, to inspect, review and make
copies of such records as such party or its representatives may deem necessary or appropriate from
time to time, such activities to be conducted during normal business hours and at the expense of
the requesting party. Each party agrees to maintain in accordance with <U>Section&nbsp;5.8</U> the
confidentiality of all information of the other party disclosed pursuant to this <U>Section
6.2</U>, except to the extent it is
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">required to disclose the same pursuant to Applicable Law or the
directive of a Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.3. <U>Allocation of Taxes</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All personal property taxes and similar <I>ad valorem </I>obligations levied with respect to the
Transferred Assets for a taxable period that includes (but does not end on) the Closing Date shall
be apportioned between Sellers and Buyer as of the Closing Date based on the number of days of such
taxable period included in the period on and prior to the Closing Date (&#147;<U>Pre-Closing Tax
Period</U>&#148;) and the number of days of such taxable period included in the period commencing after
the Closing Date (the &#147;<U>Post-Closing Tax Period</U>&#148;). Sellers shall be liable for the
proportionate amount of such Taxes that is attributable to the Pre-Closing Tax Period, and Buyer
shall be liable for the proportionate amount of such Taxes that is attributable to the Post-Closing
Tax Period. Within a reasonable period after the Closing, Sellers and Buyer shall present a
statement to the other setting forth the amount of reimbursement to which each is entitled under
this <U>Section&nbsp;6.3</U>, together with such supporting evidence as is reasonably necessary to
calculate the proration amount. The proration amount shall be paid by the party owing it to the
other within ten (10)&nbsp;days after delivery of such statement. Thereafter, Sellers shall notify
Buyer upon receipt of any bill for personal property taxes relating to the Transferred Assets, part
or all of which are attributable to the Post-Closing Tax Period, and shall promptly deliver such
bill to Buyer, and Buyer shall pay the same to the appropriate taxing authority; <U>provided</U>,
<U>however</U>, that if such bill covers any part of the Pre-Closing Tax Period, Sellers shall
also remit to Buyer prior to the due date of assessment payment
for the proportionate amount of such bill that is attributable to the Pre-Closing Tax Period.
In the event that Sellers or Buyer shall thereafter make a payment for which it is entitled to
reimbursement under this <U>Section&nbsp;6.3</U>, the other party shall make such reimbursement
promptly, but in no event later than thirty (30)&nbsp;days after the presentation of a statement setting
forth the amount of reimbursement to which the presenting party is entitled along with such
supporting evidence as is reasonably necessary to calculate the amount of reimbursement. Any
payment required under this <U>Section&nbsp;6.3</U> and not made within ten (10)&nbsp;days after delivery of
the statement shall bear interest at the rate per annum determined, from time to time, under the
provisions of Section&nbsp;6621(a)(2) of the Code for each day until paid.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7<BR>
NON-COMPETITION; NON-SOLICITATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.1. <U>Non-Competition. </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing on the Closing Date and continuing until the third anniversary of the Closing Date,
Sellers shall not, and shall cause each of their Affiliates not to, directly or indirectly,
manufacture, sell, provide or offer to sell any Products or services set forth on <U>Schedule
A</U> which the Business currently manufactures, sells, licenses or provides or is in the process
of developing or has manufactured, sold, licensed or provided during the three (3)&nbsp;year period
immediately preceding the Closing (any such activity, a &#147;<U>Competitive Business</U>&#148;); provided,
however, Buyer and Netsmart acknowledge that Parent, either directly or through Affiliates,
regularly makes loans to, invests in and manages other businesses, and nothing herein shall
prohibit Parent or any of its Affiliates from engaging in such activities with respect to any
business that is not primarily engaged in selling
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">public health software products; provided,
further, that in the event any such business is engaged in selling public health software products
to any extent, such investment shall be a passive investment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.2. <U>Non-Solicitation.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;From and after the Closing Date, Sellers shall not, and shall cause each of their
Subsidiaries not to, directly or indirectly, on its account or for any other Person, interfere with
the employment by Buyer of any of the Continuing Employees while such Continuing Employee is under
contract with Buyer; <U>provided</U>, <U>however</U>, that if the Buyer shall terminate the
employment of a Continuing Employee, or if the Continuing Employee shall quit such employment, and
Sellers have not interfered with such employment in violation of this <U>Section&nbsp;7.2(a)</U>,
Seller and its Subsidiary shall be entitled to solicit for hire, and/or hire such employee three
months following such termination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subject to Sellers&#146; rights under <U>Section&nbsp;5.9</U>, commencing on the Closing Date
Sellers shall not, and shall cause each of their Subsidiaries not to, intentionally interfere with
the relationship the Buyer has with any of the suppliers and customers of the Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.3. <U>Injunctive Relief.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers and Buyer each acknowledge that the covenants contained in this <U>Article&nbsp;7</U>
were a material and necessary inducement for Buyer to agree to the transactions contemplated herein
and that a violation of any of the covenants contained therein could cause irreparable and
continuing harm for which Buyer has no adequate remedy at law. Accordingly, as and to the extent
the same may be appropriate, the Buyer shall be entitled to seek injunctive or other equitable
relief from any court of competent jurisdiction to restrain any threatened or further violation of
such covenants, such injunctive relief to be cumulative and in addition to any other rights or
remedies to which Buyer may be entitled. Seller waives posting by Buyer of any bond necessary to
secure such injunction or other equitable relief.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.4. <U>Severability</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any provision contained in this <U>Article&nbsp;7</U> is for any reason held invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect
any other provisions of such Section or Article, but such Section and Article will be construed as
if such invalid, illegal or unenforceable provision had never been contained therein. It is the
intention of the parties that if any of the restrictions or covenants contained herein is held to
cover a geographical area or to be for a length of time which is not permitted by Applicable Law,
or is construed to be too broad or to any extent invalid, such provision will not be deemed to be
null, void and of no effect, but to the extent such provision would be valid or enforceable under
Applicable Law, a court of competent jurisdiction will be entitled to construe and interpret or
reform this <U>Article&nbsp;7</U> to provide for a covenant having the maximum enforceable geographical
area, time period and other provisions (not greater than those contained herein) as will be valid
and enforceable under such Applicable Law.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 8<BR>
SURVIVAL OF REPRESENTATIONS &#038; WARRANTIES;INDEMNIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.1. <U>Survival of Representations and Warranties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided in this Agreement, all representations and warranties made
hereunder or pursuant hereto or in connection with the transactions contemplated hereby shall not
terminate, but shall survive the Closing and continue in effect until two (2)&nbsp;years following the
Closing Date; <U>provided</U>, <U>however</U>, that representations and warranties under
<U>Section&nbsp;3.13</U> (as to title) shall remain in effect without limitation, and under <U>Section
3.9</U> (Intellectual Property) and <U>Section&nbsp;3.22</U> (Environmental Compliance) shall remain in
effect until three (3)&nbsp;years following the Closing Date and <U>Section&nbsp;3.23</U> (Taxes) shall
remain in effect until six (6)&nbsp;years following the Closing Date; and further provided, that any
such representation or warranty as to which a claim shall have been asserted during such survival
period shall continue in effect until such time as such claim shall have been resolved or settled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.2. <U>Survival of Covenants and Agreements</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided in this Agreement, all covenants and agreements made hereunder or
pursuant hereto or in connection with the transactions contemplated hereby shall not terminate but
shall survive the Closing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.3. <U>Indemnification by Sellers</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sellers shall indemnify and hold harmless Buyer and its Affiliates and their respective
officers, directors, successors and assigns (the &#147;<U>Buyer Indemnified Parties</U>&#148;) from and
against any Liabilities, Damages, Actions, Orders and costs and expenses, including reasonable
attorney&#146;s and expert fees (any one such item being herein called a &#147;<U>Loss</U>&#148; and all such
items being herein collectively called &#147;<U>Losses</U>&#148;), which are caused by or arise out of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any breach or default in the performance by Sellers of any covenant or agreement of
Sellers contained herein or in any agreement delivered pursuant hereto at the Closing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any breach of warranty or representation made by Sellers contained in Article&nbsp;3 of this
Agreement or in any certificate delivered pursuant hereto at the Closing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any Excluded Liabilities; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;enforcement of this <U>Section&nbsp;8.3</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification by Sellers shall be realized in the following manner and order of priority:
(A)&nbsp;by the Buyer withholding any amounts owing to Seller under the Promissory Note, in the manner
provided in <U>Section&nbsp;9.12</U>; (B)&nbsp;by the Buyer withholding all or a portion, as required, of
the Earn-Out Payments; (C)&nbsp;by the Buyer withholding any other amounts owing to Seller hereunder;
and (D)&nbsp;by Seller&#146;s delivery of cash to Buyer to the extent that Buyer is not fully
indemnified by the recourse afforded it under (A)&nbsp;through (C)&nbsp;above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.4. <U>Indemnification by Buyer</U>.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer and Netsmart shall indemnify and hold harmless Sellers and their Affiliates and their
respective officers, directors, successors and assigns (&#147;<U>Seller Indemnified Parties</U>&#148;) from
and against any Losses which are caused by or arise out of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any breach or default in the performance by Buyer of any covenant or agreement contained
herein or in any certificate delivered pursuant hereto or thereto or at the Closing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any breach of warranty or representation made by Buyer contained in Article&nbsp;4 or in any
certificate delivered pursuant hereto at the Closing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Assumed Liabilities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Buyer&#146;s conduct of the Business or the operation and use of the Transferred Assets, in
each case from and after the Closing; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;enforcement of this <U>Section&nbsp;8.4</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.5. <U>Thresholds and Limits on Indemnification</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Threshold Liability of Sellers</U>. Sellers shall not have any obligation to
indemnify Buyer or its Affiliates under <U>Section&nbsp;8.3</U> until the aggregate Losses suffered by
Buyer and its Affiliates for which indemnification would otherwise be due under <U>Section&nbsp;8.3</U>
exceed Thirty-Five Thousand Dollars ($35,000) (the &#147;<U>Buyer&#146;s Basket</U>&#148;), after which the Buyer
shall be entitled to recover all of its Losses, including the amount of the Buyer&#146;s Basket.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Threshold Liability of Buyer</U>. Buyer shall not have any obligation to indemnify
Sellers or their Affiliates under <U>Section&nbsp;8.4</U> until the aggregate Losses suffered by
Sellers and its Affiliates for which indemnification would otherwise be due under <U>Section&nbsp;8.4
</U>exceed Thirty-Five Thousand Dollars ($35,000) (the &#147;<U>Sellers&#146; Basket</U>&#148;), after which the
Seller shall be entitled to recover all of its Losses, including the amount of the Sellers&#146; Basket;
provided, however, to the extent either Seller suffers a Loss due to Netsmart&#146;s failure to fully
and timely perform the Promissory Note, or due to Netsmart&#146;s or Buyer&#146;s failure to fully and timely
perform its respective obligations with respect to the Earn-Out Payments, Sellers&#146; indemnification
rights under <U>Section&nbsp;8.4</U> shall not be subject to the Sellers&#146; Basket.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Maximum Liability of Seller</U>. Sellers shall not be obligated to indemnify Buyer
and its Affiliates for any Losses in an aggregate amount that exceeds the amount of the Total
Purchase Price actually received by Sellers; provided, however, Sellers shall not be deemed to have
received any Assumed Liabilities to the extent Buyer&#146;s performance thereof either (i)&nbsp;does not
require any cash payment by Buyer, or (ii)&nbsp;requires the payment of costs and expenses that are
offset by related Revenue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Maximum Liability of Buyer</U>. Buyer shall not be obligated to indemnify Seller and
its Affiliates for any Losses in an aggregate amount that exceeds the amount of the Total Purchase
Price actually received by Sellers; provided, however, Sellers shall not be deemed to have received
any Assumed Liabilities to the extent Buyer&#146;s performance thereof either (i)&nbsp;does not require any
cash payment by Buyer, or (ii)&nbsp;requires the payment of costs and expenses that are offset by
related Revenue.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.6. <U>Procedure; Notice of Claims. </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon the occurrence of any event that any of the Buyer Indemnified Parties or Seller
Indemnified Parties (each, an &#147;<U>Indemnified Party</U>&#148;) asserts to be the basis for a claim for
indemnification against Sellers or Buyer (as applicable, the &#147;<U>Indemnifying Party</U>&#148;) under
this Article&nbsp;8 (a &#147;<U>Claim</U>&#148;), then the Indemnified Party shall give notice (a &#147;<U>Claim
Notice</U>&#148;) to the Indemnifying Party thereof in writing, which Claim Notice shall set forth (i)&nbsp;a
particular description of the event or condition that is the basis for the Claim; and (ii)&nbsp;the
amount reasonably necessary to satisfy such Claim; <U>provided</U>, <U>however</U>, that where
the claim involves a Third Party Claim (as hereinafter defined), the Indemnified Party shall
promptly notify the Indemnifying Party thereof and provided further that no delay on the part of
the Indemnified Party in notifying the Indemnifying Party in such case shall relieve the
Indemnifying Party from any obligation under this Agreement except to the extent the Indemnifying
Party is actually prejudiced thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Claim involves the claim of any third person (a &#147;<U>Third-Party Claim</U>&#148;), the
Indemnifying Party shall have the right to assume and control the defense of the Third-Party Claim
with counsel of its own choice reasonably satisfactory to the Indemnified Party, so long as the
Indemnifying Party notifies the Indemnified Party of such defense in writing within thirty (30)
days after the Indemnified Party has given notice of the Third-Party Claim and the Indemnifying
Party conducts the defense of the Third-Party Claim actively and diligently; <U>provided</U>,
<U>however</U>, that the Indemnified Party may retain separate co-counsel at its sole cost and
expense and participate in the defense of the Third-Party Claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the case that the Indemnifying Party has assumed and is conducting the defense of the
Third-Party Claim in accordance with <U>Section&nbsp;8.6(b)</U>: (i)&nbsp;the Indemnifying Party shall not
consent to the entry of any judgment or enter into any settlement with respect to the Third-Party
Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld,
delayed or conditioned), unless the judgment or proposed settlement involves only the payment of
money damages by the Indemnifying Party and does not impose an injunction or other equitable relief
upon the Indemnified Party, and (ii)&nbsp;the Indemnified Party shall not consent to the entry of any
judgment or enter into any settlement with respect to the Third-Party Claim without the prior
written consent of the Indemnifying Party (not to be unreasonably withheld, delayed or
conditioned).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event the Indemnifying Party does not assume and conduct the defense of the
Third-Party Claim in accordance with <font style="white-space: nowrap"><U>Section&nbsp;8.6(b)</U>,</FOnt> the Indemnified Party may defend
against, and consent to the entry of any judgment or enter into any settlement with respect to, the
Third-Party Claim in any manner it reasonably may deem appropriate (and the Indemnified Party need
not consult with or obtain any consent from the Indemnifying Party in connection therewith).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Whenever the Indemnified Party shall have given a Claim Notice to the Indemnifying Party
that does not involve a Third-Party Claim and if the Indemnifying Party disputes such Claim, the
Indemnified Party and the Indemnifying Party shall first attempt to resolve the Claim through a
good faith discussion of the Claim for a period of thirty (30)&nbsp;days (the &#147;<U>Negotiation
Period</U>&#148;). If such discussion does not result in a resolution acceptable to either the
Indemnified Party or the Indemnifying Party, then at the end of the Negotiation Period either party
may resort to any remedies available in law or in equity in a court of competent jurisdiction,
subject to any other terms of this Agreement concerning a party&#146;s pursuit of such remedies.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.7. <U>Remedies</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise specifically provided in this Agreement, the sole and exclusive remedy of
the parties hereunder shall be restricted to the indemnification rights set forth in this Article
8; <U>provided</U>, <U>however</U>, that no party hereto shall be deemed to have waived any
rights, claims, causes of action or remedies if and to the extent such rights, claims, causes of
action or remedies may not be waived under Applicable Law, or in the event of actual fraud.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8.8. <U>Certain Limitations.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Notwithstanding any other provision in this Agreement to the contrary, the parties to this
Agreement shall only be liable to indemnify each other for compensatory damages, and, accordingly,
in the absence of actual fraud, neither party shall be entitled to recover from the other special,
indirect, punitive or consequential damages pursuant to this Article&nbsp;8 unless, and then only to the
extent that, the same are components of a Third Party Claim for which an Indemnified Party is
seeking indemnification hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The amount of any Losses recoverable by way of indemnification pursuant to Article&nbsp;8 shall
be calculated net of any indemnification or contribution actually received from any third Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;It is agreed that for the purpose of making a claim for indemnification, the expiration of
any one survival period, as set forth in <U>Section&nbsp;8.1</U>, of certain representations and
warranties shall not affect the ability to make any claim for indemnification hereunder under any
other representations and warranties still surviving; <U>provided</U>, <U>however</U>, that no party shall be
entitled to make a claim for indemnification more than once on account of the same facts or
circumstances.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 9<BR>
MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.1. <U>Entire Agreement; Assignment; Amendments and Waivers</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement (including the Seller Disclosure Schedules), the Exhibits and the Bill of
Sale and Assumption Agreement constitute the entire agreement between the parties hereto with
respect to the subject matter hereof and thereof and supersede all other prior agreements
and understandings both written and oral between the parties with respect to the subject
matter hereof and thereof. No representation, warranty, promise, inducement or statement of
intention has been made by any party that is not embodied in this Agreement or such other
documents, and none of the parties shall be bound by, or be liable for, any alleged representation,
warranty, promise, inducement or statement of intention not embodied herein or therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;This Agreement may not be assigned by operation of law or otherwise without the written
consent of the other party; <U>provided</U>, <U>however</U>, that Buyer may assign all of its
rights and obligations under this Agreement to any Affiliate, but such assignment will not relieve
Buyer or Netsmart of any of its covenants or obligations set forth in this Agreement.
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement may not be amended or modified, and any of the terms, covenants,
representations, warranties, or conditions hereof may not be waived, except by a written instrument
executed by all of the parties hereto, or in the case of a waiver, by the party waiving compliance.
Any waiver by any party of any condition, or of the breach of any provision, term, covenant,
representation, or warranty contained in this Agreement, in any one or more instances, shall not be
deemed to be nor construed as a further or continuing waiver of any such condition, or of the
breach of any other provision, term, covenant, representation, or warranty of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.2. <U>Validity</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any provision of this Agreement or the application thereof to any Person or circumstance is
held invalid or unenforceable, then the remainder of this Agreement and the application of such
provision to other Persons or circumstances shall not be affected thereby and, to such end, the
provisions of this Agreement are agreed to be severable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.3. <U>Notices</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices, requests, claims, demands and other communications hereunder shall be in writing
and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in
person, by facsimile or by registered or certified mail (postage prepaid, return receipt requested)
to each other party as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to Buyer:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Netsmart Technologies, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3500 Sunrise Highway</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Great River, New York 11739</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: James Conway, CEO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kramer, Coleman, Wactlar &#038; Lieberman, P.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100 Jericho Quadrangle</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jericho, New York 11753</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier: (516)&nbsp;822-4824</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Nancy D. Lieberman, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">if to Sellers:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">QS Technologies, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Intelligent Systems Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4355 Shackleford Rd.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Norcross, GA 30093</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier: (770)&nbsp;381-2808</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: CEO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intelligent Systems Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4355 Shackleford Rd.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Norcross, GA 30093</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier: (770)&nbsp;381-2808</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: CEO</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">with a copy to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sutherland Asbill &#038; Brennan LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">999 Peachtree Street NE</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Atlanta, GA 30309</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopier: (404)&nbsp;853-8806</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Phil Mo&#239;se</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or to such other address as the person to whom notice is given may have previously furnished to the
others in writing in the manner set forth above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.4. <U>Governing Law, Forum Selection, Jurisdiction</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Georgia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.5. <U>WAIVER OF JURY TRIAL</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES
HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN RESPECT OF ANY ISSUE OR ACTION ARISING OUT OF OR BASED
UPON THIS AGREEMENT OR ANY RELATED AGREEMENT OR THE SUBJECT MATTER HEREOF, OR THEREOF OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION 9.5 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO
THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.6. <U>Descriptive Headings</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The descriptive headings herein are inserted for convenience of reference only and are not
intended to be part of or to affect the meaning or interpretation of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.7. <U>Parties in Interest</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be binding upon and inure solely to the benefit of each party hereto and
its successors and permitted assigns and nothing in this Agreement express or implied is intended
to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever
under or by reason of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.8. <U>Specific Performance</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereby acknowledge and agree that the failure of any party to perform its
agreements and covenants hereunder, including its failure to take all actions as are necessary on
its part to the consummation of the transactions contemplated hereby, will cause irreparable injury
to the other parties, for which damages, even if available, will not be an adequate remedy.
Accordingly, each party hereby consents to the issuance of injunctive relief by any court of
competent jurisdiction to compel performance of such party&#146;s obligations and to the granting by any
</DIV>

<P align="center" style="font-size: 10pt">47
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">court of the remedy of specific performance of its obligations hereunder (without the requirement
of posting a bond).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.9. <U>Disclosure Generally</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information contained in this Agreement or disclosed in any Schedule shall not be deemed to be
included in any other Schedule except to the extent that such disclosure is specifically referenced
or identified or otherwise reasonably applicable to such other Schedule.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.10. <U>Counterparts</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which shall constitute one and the same agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.11. <U>Attorney&#146;s Fees</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any party hereto initiates any legal action arising out of or in connection with this
Agreement or the Bill of Sale and Assumption Agreement, the prevailing party shall be entitled to
recover from the other party all reasonable attorneys&#146; fees, expert witness fees and expenses
incurred by the prevailing party in connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9.12. <U>Set-Off or Withholding From Promissory Note</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Buyer becomes entitled to a set-off against the Promissory Note under <U>Section&nbsp;2.3</U>
or <U>Section&nbsp;2.9(d)</U>, or becomes entitled to withhold any amount from the Promissory Note
under <U>Section&nbsp;8.3</U>, the original principal amount of the Promissory Note shall be reduced by
the amount to be set-off or withheld, the monthly installments shall be recalculated based on the
reduced principal amount, and all monthly payments of principal and interest previously received by
Parent under the Promissory Note shall be applied to such recalculated monthly installments in the
order in which they become due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed on its
behalf as of the day and year first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>QS TECHNOLOGIES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kevin W. Davidson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Kevin W. Davidson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">48
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>INTELLGENT SYSTEMS CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ J. Leland Strange
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">J. Leland Strange&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>NETSMART TECHNOLOGIES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Anthony F. Grisanti
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony F. Grisanti&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>NETSMART PUBLIC HEALTH, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Anthony F. Grisanti
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Anthony F. Grisanti&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Secretary and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">49
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>List of Exhibits to Asset Purchase Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. Exhibit&nbsp;A &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promissory <B>Note</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Registrant agrees to furnish supplementatlly a copy of any omitted schedule or exhibit to the
Securities and Exchange Commission upon request.
</DIV>




<P align="center" style="font-size: 10pt">50
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Exhibit&nbsp;A</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>PROMISSORY NOTE</B></U>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="78%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>$1,435,000</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>As of July&nbsp;31, 2006</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned, NETSMART TECHNOLOGIES, INC. (the &#147;<U>Company</U>&#148;)
promises to pay to the order of INTELLIGENT SYSTEMS CORPORATION, its successors, endorsees and
assigns (&#147;<U>Payee</U>&#148;), in lawful money of the United States, at 4355 Shackleford Road,
Norcross, Georgia 30093, or such other place as Payee may from time to time designate, the
principal sum of ONE MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND ($1,435,000) DOLLARS, which
principal amount shall bear interest at the rate of eight and one-quarter percent (8.25%) &#091;the
prime rate in effect on the date of delivery of the note&#093; and be fully amortized in equal monthly
installments over a 36-month period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall make payments of $45,133.37 in the aggregate, consisting of such portion of
the principal sum and accrued interest thereon as is set forth in the attached amortization
schedule. Each such payment of principal and accrued interest shall be paid on the first business
day of each month, commencing September&nbsp;1, 2006, or if such day is not a business day, on the next
succeeding business day. For the purposes of this Note, &#147;business day&#148; shall mean a day other than
a Saturday, Sunday or other day on which commercial banks in New York, New York are closed due to a
federal holiday.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of this Note shall have the right to declare the entire unpaid balance of this Note
immediately due and payable in the event
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149; the Company fails to make any payment of principal and interest due
hereunder within ten (10)&nbsp;days of its due date; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149; the Company makes a general assignment for the benefit of creditors or
commences any proceeding under any bankruptcy reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction,
or any such proceeding is commenced against the Company and such proceeding is not
dismissed within sixty (60)&nbsp;days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event this Note shall at any time after maturity or default be placed with an attorney
for collection, the Company agrees to pay, in addition to the entire remaining principal balance
and accrued interest, (i)&nbsp;interest on such amounts at the rate of 11% per annum and (ii)&nbsp;all costs
of collection, including reasonable attorneys&#146; fees. This Note is subject to prepayment in whole
or in part without premium or penalty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby waives presentment, demand, notice of payment, protest and notice of
protest.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="61%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NETSMART TECHNOLOGIES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Anthony F. Grisanti
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Anthony F. Grisanti&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">51
</DIV>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>g02765exv99w1.htm
<DESCRIPTION>EX-99.1 PRESS RELEASE
<TEXT>
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<HEAD>
<TITLE>EX-99.1 PRESS RELEASE</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>FOR IMMEDIATE RELEASE</B></U><BR>
For further information, call<BR>
Bonnie Herron, 770/564-5504<BR>
or email to <U>bherron@intelsys.com</U>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Intelligent Systems Completes Sale of QS Technologies Subsidiary<BR>
***<BR>
Acquisition by Netsmart Technologies Combines Public Health Software and Services Companies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Norcross, Georgia &#150; August&nbsp;2, 2006 &#151; Intelligent Systems Corporation (AMEX: INS) today announced
the sale of its QS Technologies, Inc. business to Netsmart Technologies, Inc (NASDAQ SC: NTST)
effective July&nbsp;31, 2006. Intelligent Systems sold the QS Technologies&#146; business and related assets
for $1.9&nbsp;million cash, a promissory note of $1.435&nbsp;million and the assumption by Netsmart of
approximately $1.8&nbsp;million in net liabilities of QS. In addition, ISC retained accounts receivable
and cash of QS Technologies aggregating approximately $2.0&nbsp;million. The transaction also provides
for potential additional payments to Intelligent Systems of up to $1.45&nbsp;million in 2008, contingent
upon the attainment of performance milestones by the QS business through 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">J. Leland Strange, president and chief executive officer of Intelligent Systems Corporation,
stated, &#147;QS Technologies has been a part of Intelligent Systems since 1997. During that time, it
has grown into a valuable business with a well-deserved reputation for its industry expertise and
outstanding software products and customer service. With this sale to Netsmart, QS is now aligned
for its next phase with another strong company focused on the public health software and services
market. Together, QS and Netsmart are well positioned to take advantage of new opportunities.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The QS Technologies business will continue to operate with its current employees at its Greenville,
S.C. location.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>About Intelligent Systems Corporation</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For over thirty years, Intelligent Systems Corporation &#091;AMEX: INS&#093; has identified, created,
operated and grown early stage technology companies. After the QS Technologies sale, the company&#146;s
consolidated subsidiaries include VISaer, Inc. (<U>www.visaer.com</U>) and CoreCard Software, Inc.
(<U>www.corecard.com</U>), (both software companies) and ChemFree Corporation (<U>www.chemfree.com</U>) (an
industrial products company). Further information is available on the company&#146;s website at
<U>www.intelsys.com</U>, or by calling the company at 770/381-2900.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>In addition to historical information, this news release may contain forward-looking
statements relating to Intelligent Systems and its subsidiary and affiliated companies. These
statements include all statements that are not statements of historical fact regarding the intent,
belief or expectations of Intelligent Systems and its management with respect to, among other
things, results of operations, product plans, and financial condition. The words &#147;may,&#148; &#147;will,&#148;
&#147;anticipate,&#148; &#147;believe,&#148; &#147;intend,&#148; &#147;expect,&#148; &#147;estimate,&#148; &#147;plan,&#148; &#147;strategy&#148; and similar expressions
are intended to identify forward-looking statements. Prospective investors are cautioned that any
such forward-looking statements are not guarantees of future performance and involve risks and
uncertainties and that actual results may differ materially from those contemplated by such
forward-looking statements. The company does not undertake to update or revise any forward-looking
statements whether as a result of new developments or otherwise. Among the factors that could
cause actual results to differ materially from those indicated by such forward-looking statements
are delays in product development, undetected software errors, competitive pressures (including
pricing), changes in customers&#146; requirements or financial condition, market acceptance of products
and services, changes in financial markets, changes in the performance, financial condition or
valuation of affiliate companies, the risks associated with investments in privately-held early
stage companies, and general economic conditions, particularly those that cause business or
government to delay or cancel purchase decisions. Factors that affect the company&#146;s performance
and financial results are more fully disclosed in the company&#146;s most recent filings with the
Securities and Exchange Commission, including its annual report on Form 10-KSB and its subsequent
filings.</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I># # # #</I>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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